New Compacts with Cote d’Ivoire, Kosovo and Senegal, and New Threshold Programs with Sri Lanka and Togo
WASHINGTON, D.C., Dec. 17 — The Millennium Challenge Corporation (MCC) Board of Directors held its quarterly meeting on Dec. 16, 2015. The Board approved three countries as eligible for compacts and two countries as eligible for threshold programs. Three of the five countries are new partners for MCC and all have worked hard to improve their performance on MCC’s scorecard, which measures countries’ commitment to ruling justly, economic freedom, and investing in their people.
The Board selected Cote d’Ivoire, Kosovo and Senegal as newly eligible for compacts. Cote d’Ivoire, which was selected in December 2014 for a threshold program, will now transition into the compact program after showing continued improvement on its scorecard and achieving greater political stability. Kosovo, which passed MCC’s scorecard for the first time after making progress on democratic rights, is a new partner for MCC. Senegal successfully completed its first MCC compact in September and demonstrated improved scorecard performance over the life of the partnership.
In both Senegal and Cote d’Ivoire, the Board recommended that MCC explore potential investments that address regional obstacles to economic growth, in addition to domestic investments, while recognizing the need for statutory authority to optimize regional impact.
The Board also selected Togo and Sri Lanka to develop MCC threshold programs. Togo has shown a clear upward trajectory on overall scorecard performance over the past few years. Sri Lanka has embarked on a remarkable effort over the past year to reinvigorate its democratic institutions, improve governance, and restore protection of human rights.
Nepal, Niger and the Philippines were reselected by the Board to continue developing their compacts. The Board reselects all countries in compact development as part of the annual selection process. The Board deferred a vote on the reselection of Tanzania and Lesotho for compact eligibility until relevant governance concerns in both countries have been addressed.
September 26, 2015
WASHINGTON, D.C. — On September 17, MCC's Board of Directors ("Board") indicated that it would vote on a compact with Tanzania if the country scored above the relevant median in the Worldwide Governance Indicators' latest annual Control of Corruption index. That index is now publicly available and Tanzania has scored above the relevant median, and therefore will pass the Control of Corruption indicator on MCC's forthcoming fiscal year 2016 scorecard. Accordingly, the Board will vote on whether to approve the proposed compact. Projects funded under the compact will need to meet the agency's economic analysis standards. Should the Board approve the compact, signing is expected to occur sometime in 2016.
MCC takes seriously all of its country partners' commitments to combat corruption. While Tanzania passes the Control of Corruption indicator, MCC will continue to monitor the Government of Tanzania's efforts to combat corruption.
MCC expects that Tanzania's October 25 general election will be free and fair, consistent with the importance MCC places on democratic rights.
The Millennium Challenge Corporation expressed optimism on the government’s likelihood to complete the agreed reforms to pave the way for the second compact to Tanzania.
Vice President of the Department of Compact Operations at the MCC, Kamran Khan said both partners, including the government and MCC, have kept on the implementation of the policy reforms that the two agreed on, some of which are tariff restructuring, policies and legislation governing the gas sector, among others.
He was giving an update on the second MCC compact on the sidelines of a forum for USA trade mission currently in the country. Mr. Khan said Tanzania’s last compact was significant, much of it having focused on transport and energy as key growth aspects for the country.
If passed, the second MCC compact to Tanzania would be over 700 million US dollars. The second MCC project will largely focus on the power sector, including investments in infrastructure as well as policy, regulatory and institutional reforms.
- MCA – T GOVERNING BOARD VISIT TUNDUMA – SUMBAWANGA ROAD (224KM) 11TH FEBRUARY, 2015
- MCC VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR. MATTHEW L. BOHN VISIT MCA-T AND MCC COMPACT II
- THE PERMANENT SECRETARY MINISTRY OF FINANCE AND MCA-T BOARD CHAIRMAN ON SITE VISIT TO MAFIA AIRPOT WHERE THE MITIGATION OF ERODED RAVINE WORK IS GOING ON
- THE UPGRADED SONGEA – NAMTUMBO ROAD (71.4KM) COMPLETED