Peru Launches $35.6 million Millennium Challenge Threshold Program Addressing Health, Anti-Corruption

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Lima, Peru — The United States and Peru today signed a two-year, $35.6 million Millennium Challenge Corporation threshold program agreement to help the Government of Peru improve its performance on MCC’s “Control of Corruption” and “Immunization Rates” indicators. Specifically, the program is designed to increase immunization rates of rural children against diseases such as measles, diphtheria, pertussis and tetanus in eight targeted regions and to assist Peru's Ministry of Health in strengthening information and vaccination management systems. The program will also help Peru combat corruption by working with the judicial branch, law enforcement, the ombudsman and controller’s offices and civil society organizations to improve internal controls, as well as analyze and simplify administrative processes to reduce opportunities for corruption.

“I congratulate the government and the people of Peru for bringing forth this exciting program,” said MCC CEO Ambassador John Danilovich. “Investing in health and fighting corruption are critical tools in reducing poverty. MCC looks forward to working in partnership with Peru to improve the policy environment necessary for poverty reduction and sustainable economic growth and to ensure that their children have the opportunity to lead healthy lives.” Ambassador Danilovich added, “We thank our colleagues at USAID and the U.S. Embassy in Peru led by Ambassador Michael McKinley for their efforts in bringing this program to fruition.”

As part of MCC’s overall mandate to reduce poverty through economic growth, the MCC threshold program is designed to assist countries that are on the “threshold” of eligibility for large-scale Millennium Challenge Account grants, or compacts. Eligibility for a compact is based on a country’s score on 17 non-U.S. Government indicators of policy performance in three categories — Ruling Justly, Investing in People and Economic Freedom. Threshold program assistance is used to help countries address the specific policy areas where a country scores below its peers.

The United States Agency for International Development will be the U.S. government agency responsible for administering Peru’s threshold program. The U.S. Department of Justice will also implement a component of the program.

To date, the U.S. has signed nearly $400 million in MCC threshold program assistance in eighteen countries: Albania, Burkina Faso, Guyana, Indonesia, Jordan, Kenya, Kyrgyz Republic, Malawi, Moldova, Niger, Paraguay, Peru, Philippines, São Tomé and Príncipe, Tanzania, Uganda, Ukraine, and Zambia.

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Millennium Challenge Corporation, a U.S. government corporation designed to work with developing countries, is based on the principle that aid is most effective when it reinforces sound political, economic, and social policies that promote poverty reduction through economic growth. For more information, please visit www.mcc.gov.