Millennium Challenge Corporation Signs $295.3 Million Compact with Georgia

Washington, D.C. —The United States, through the Millennium Challenge Corporation, signed a five-year $295.3 million Compact with Georgia. The Millennium Challenge Compact aims to reduce poverty and stimulate economic growth in the regions outside of Georgia's capital, Tbilisi, where more than 50 percent of rural households live below the poverty line. By focusing on rehabilitating regional infrastructure and promoting private sector development, the program will directly benefit approximately a half-million Georgians. In addition, over one quarter of the population of the country will receive indirect benefits from the program; for example, the reliable transmission of gas will reduce environmental, health, and safety risks.

“Congratulations to the people and Government of Georgia for this great achievement,” said MCC Vice President Charles Sethness. “I especially want to thank President Saakashvili for his leadership, his dedicated team for their hard work, and the people of Georgia for developing a concrete plan to lift the poor out of poverty and spur economic growth. This Compact is a testament to the commitment of Georgians to take ownership of their development path. MCC is proud to be Georgia's partner in its efforts to reduce poverty in the regions outside of Tbilisi.”

In addition to signing a Compact with Georgia, MCC has signed Compacts with Madagascar, Cape Verde, Honduras, and Nicaragua. In the 13 months since MCC began receiving country proposals, it has approved nearly $1 billion in Compact and pre-Compact funding. MCC is also actively engaging with other Millennium Challenge Account eligible countries.

Launched by President Bush, the Millennium Challenge Account is an innovative approach to development assistance centered on the recognition that sound policies and good governance are critical to poverty reduction and economic growth in developing countries.

###

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.