MCC Compacts Totaling $2.55 Billion Enter Into
Force in September
Poverty Reduction Grants in Lesotho, Mongolia, Morocco, Mozambique and
Tanzania Begin Implementation Phase
Washington, D.C. –MCC CEO
Ambassador John Danilovich today announced that during the month of September
alone the agency has obligated more than $2.55 billion in MCC economic
development assistance to five partner countries. MCC’s poverty reduction
grants to Lesotho, Mongolia, Morocco, Mozambique, and Tanzania have entered into
force. MCC’s total commitment to fighting poverty worldwide to date
exceeds $6.5 billion, with compact agreements signed with 18
countries.
“The entry into force of
these groundbreaking compacts signals the beginning of the important
implementation phase for these 5-year programs,” said Ambassador
Danilovich. “Our MCC partnership with these countries sends a
strong signal about the U.S. commitment to reducing poverty worldwide and the
need to provide sustainable, long-term opportunities for growth for those
countries that are willing to invest in their people, govern justly, and foster
economic freedom.”
MCC’s economic development
assistance encompasses a range of poverty reduction projects.
The $362 million MCC program with
Lesotho entered into force on September 17, 2008, and will
improve the delivery of water supplies for domestic and industrial use, improve
health conditions, and help remove barriers to foreign and local private sector
investments.
MCC’s $285 million program with
Mongolia will help increase economic activity in the country,
including exports, by improving the country’s rail network, investing in health
and training programs, and assisting citizens with obtaining secure, long-term
land rights. This compact also entered into force on September 17,
2008.
Morocco’s $697.5
million MCC compact program will stimulate economic growth by increasing
productivity and improving employment in areas such as fruit tree productivity,
small-scale fisheries, and artisan crafts. Small business creation and
growth will be supported also by investments in financial services and small
enterprise support. The Morocco compact entered into force on September 15,
2008.
Mozambique’s
$506.9 million program with MCC will increase access to a safe, reliable water
supply and sanitation services, rehabilitate nearly 500 kilometers of key
segments of the country’s transportation network, upgrade land information
systems and services, improve productivity of coconut farming, and encourage
diversification into other cash-crop production. Mozambique’s compact entered
into force on September 22, 2008.
Finally, the $698 million MCC
compact program in Tanzania will fund road improvements that
will increase commerce and help connect rural communities with markets, schools
and health clinics. The compact also will rehabilitate electric power
distribution systems, add new generation and transmission capacity, and will
extend electricity service to communities not currently served. In
addition, the compact will increase the availability of water for domestic and
commercial use. These improvements will increase the health and
productivity of Tanzanians by reducing the incidence of water-related disease,
particularly among children. Tanzania’s compact entered into force on September
15, 2008.