United States Department of State (Washington, DC)
Cape Verde: U.S. Aid Agency Signs U.S. $66.2 Million Agreement With Govt
By Kathryn McConnell, 13 February 2012 document
Washington — The U.S. Millennium Challenge Corporation has signed a five-year, $66.2 million aid agreement with Cape Verde to reform the West African nation's water, sanitation and land-management sectors and foster economic growth.
The $41.1 million portion of the new agreement will focus on helping to make Cape Verde's national regulatory institutions more financially sound and transparent. It will help transform utilities into independent, high-performing commercial organizations and improve the quality and reach of water and sanitation services for Cape Verdean households and businesses. An archipelago of nine inhabited islands in the Atlantic Ocean, Cape Verde is a highly water-scarce country. The project is expected to benefit about 278,000 people, according to an MCC press release.
The $17.3 million portion of the agreement is expected to improve Cape Verde's investment climate for large and small investors by refining the legal and institutional environment so land information is more reliable and land transactions more efficient. It will strengthen protection of land rights and lower land-registration time and costs. The project is expected to create about 13,000 jobs and increase real estate development and tourism.
The agreement, or compact, builds on the success of MCC's first multiyear agreement with Cape Verde, which was completed in October 2010, the agency said. That $100 million agreement, signed in 2005, was aimed at transforming Cape Verde's economy from one dependent on foreign aid to one led by private-sector growth. It focused on building roads and bridges so citizens could better link to social services, jobs and ports and airports. The agreement also supported improvements in Cape Verde's agricultural sector, reform of its financial sector and greater awareness of HIV/AIDS.
"Cape Verde has demonstrated an ongoing commitment to building a self-sustaining, high-growth economy through policy and institutional reforms, infrastructure development and private-sector engagement," said Daniel Yohannes, MCC chief executive officer.
The Millennium Challenge Corporation is a U.S. foreign aid agency based on the principle that aid is most effective when it reinforces good governance, economic freedom and investments that benefit people.
Link http://allafrica.com/stories/201202141345.html
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