Millennium Challenge Corporation Signs $215 Million Compact with Honduras

Washington, D.C. —Today, the United States, through the Millennium Challenge Corporation, signed a five-year, $215 million Compact with the Republic of Honduras . The Millennium Challenge Compact will reduce poverty and spur economic growth by increasing productivity of high-value crops and improving transportation links between producers and markets.

“MCC congratulates the people and government of Honduras for this achievement,” said MCC CEO Paul Applegarth. “Completed just ten months after Honduras submitted an initial proposal, this agreement is a testament to Honduras' commitment to good governance and establishing the right policy framework in order to use aid effectively. I want to recognize President Maduro's leadership and his team for their hard work and dedication in developing a program focused on providing hope and opportunity for the poor in Honduras . MCC looks forward to continuing our partnership as Hondurans chart a path toward their development progress.”

In addition to already signing a Compact with Madagascar and Honduras, MCC has a robust pipeline of countries and anticipate approving several more Compacts in the coming months.

Launched by President Bush, the MCA is a historic, different approach to development assistance that recognizes sound policies and good governance are critical to poverty reduction and economic growth in developing countries. Secretary Rice and the MCC Board have provided strong leadership and have played a key role in carrying out MCC's mission to reduce poverty through economic growth.

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Millennium Challenge Corporation (MCC), a U.S. government corporation designed to work with some of the poorest countries in the world, is based on the principle that aid is most effective when it reinforces good governance, economic freedom, and investments in people that promote economic growth and elimination of extreme poverty.