“As chair of the Millennium Challenge Corporation, it is wonderful for me to see the results of our work and our investment,” shared Secretary of State Hillary Rodham Clinton last Sunday as she toured MCC projects in El Salvador that are improving the lives of the poor.   I felt honored and proud to show Secretary Clinton just how MCC’s $461 million grant is reducing poverty and stimulating economic growth here in El Salvador, where a new president has just taken office following a remarkable democratic election.  As the Secretary met with Salvadorans benefitting directly from MCC projects–from students to farmers to families assisted as electricity finally comes to their homes in the country’s Northern Zone–we see tangible proof of U.S. commitment to the region, and the effective role MCC’s smart assistance continues to play in changing the lives of the poor of El Salvador.

It was especially gratifying for Secretary Clinton to witness the signing of a public-private partnership (PPP) that will leverage MCC resources with those of the private sector and provide sustainable benefits for the poor.  This contract is a true milestone, as it represents MCC’s first financing of a public-private partnership in infrastructure and serves as a model for similar partnerships in other MCC partner countries. By combining funds from MCC, the Government of El Salvador, and the company AES, this partnership will construct 1,300 kilometers of rural electrification lines, connections, and extensions to existing lines in the Northern Zone.  This innovative PPP transaction will provide access to electricity for over 30,000 poor families in El Salvador’s Northern Zone. 

In these challenging economic times, when every development dollar must count, MCC understands that we can do more by working with partners who share our vision for economic growth and prosperity for the world’s poor.  Today, we all join Secretary Clinton in applauding how the private sector and MCC are setting an example in El Salvador by working together to benefit the poor in sustainable ways.

The commitment to transparency and the fight against corruption intensified this week in Paraguay.  I was honored to witness a milestone moment as the U.S. Government, through the Millennium Challenge Corporation, and the Government of Paraguay signed a $30.3 million Stage II Threshold Program. This second program aims to institutionalize key reforms in public administration and supports anticorruption activities in the judiciary, law enforcement, customs, and healthcare.  It builds upon the successes of Paraguay’s first “umbral” or threshold program.

This latest agreement is one more symbol of the friendship between Paraguay and the United States as we work toward the shared goals of prosperity and opportunity.  It also reflects the constructive and active engagement that the U.S. Government has with the peoples of the Americas. It involves effective cooperation across a number of U.S. agencies, as USAID will be managing the implementation of this threshold program, with help from the U.S. Department of Justice and the U.S. Department of Treasury Office.

President Fernando Lugo, who participated in the ceremony, signaled strong political will to stamp out corruption by reaffirming his government’s commitment to anticorruption measures. “[We] will not do business out of corruption and will not dialogue with the mob. But instead will actively promote the destruction of this cancer. So a new country will be born free of illicit dealings because that’s what the people chose on April 20,” referring to Paraguay’s 2008 election day.

It was a standing room only event, with top officials from the Government of Paraguay, representatives from the diplomatic corps, and members of the press in attendance.  The people of Paraguay realize that promoting transparency and accountability are keys to fighting corruption and fundamental to job creation and ecomomic growth.  Now, through its MCC Stage II Threshold Program, Paraguay has another effective tool to strengthen its institutions against the risk of corruption and to pursue results-oriented programs to reduce poverty and stimulate sustainable economic growth for the good of all Paraguayans.

From left to right: Minister of Finance Dionisio Borda, Ambassador Liliana Ayalde, and USAID Mission Director John Beed

From left to Right: United States Agency for International Development (USAID) Mission Director John Beed, Minister of Finance Dionisio Borda, President Fernando Lugo, United States Ambassador Liliana Ayalde, and President of the Senate Gonzalez Quintana.

Holy Week, or Semana Santa, is normally a quiet time for most countries in Latin America.  This week-long celebration of Easter brings families together, while closing most government offices and businesses, as people enjoy much-needed vacations or time to attend religious ceremonies, rest, and reflect.

El Salvador is usually no exception.  However, last Monday, FOMILENIO was abuzz with activity as the very first road construction contract was signed for the Northern Transnational Highway.  High-level officials, including the Technical Secretary of the Presidency, the Minister of Public Works and Transportation, and FOMILENIO’s Executive Director, interrupted their vacations to meet with representatives of MECO S.A., a Costa Rica-based construction firm, to celebrate the long-awaited initiation of this historic project.  The conference room was full of television, radio, and newspaper reporters.

At the press conference, the participants provided the media and the public at large the details of this important project.  Spanning about 290 kilometers (180 miles), the Northern Transnational Highway is slated to extend from the Guatemalan border in the northwest corner of El Salvador, all the way across the northern part of the country to the Honduran border in the east.  For more than 50 years, Salvadorans have dreamed of having this strategic transport corridor, necessary to link small towns and cities throughout the Northern Zone, and also to link them with the rest of the country.  These goals seem all the more important when one considers how the Northern Zone suffered disproportionately during El Salvador’s civil war, not only in terms of physical infrastructure development but also in terms of human and social development.  In many ways, the Northern Transnational Highway is a symbol of peace, and a concrete example of how MCC funds can be used to stimulate economic growth and poverty reduction.

This is why news of the first road construction contract made local headlines and nightly news programs.  The first 23 kilometer road segment covered by this contract includes two important bridges, including one of approximately 150 meters, or 460 feet, over the Río Lempa, the largest river in the country.  This segment stretches from the bustling border town of Metapán to Santa Rosa de Guachipelín, a small municipality on the shores of Río Lempa.  The ability to cross this river quickly and safely from Santa Rosa Guachipelín to Metapán year-round, instead of having to travel a far longer and circuitous route (see photo), is a major benefit.

Several reporters directed their questions to the topic of job creation-a high priority given the challenges confronted by El Salvador and others in the region experiencing the aftershocks of the global financial crisis.  In addition to estimates of over 300 jobs on this first segment, Mr. Denis Monge, a representative from MECO, talked about opportunities for women.  He indicated that MECO would make hiring women a priority.  He pointed out that this goal is particularly important in the Northern Zone, since women are heads of households and principal income earners in a disproportionately high number of families, a result of decades of emigration, where many people, especially young men, have left the country in search of greater economic opportunities.

Stay tuned for news about the groundbreaking on this first road segment, scheduled for later this month.