Headquartered in the executive branch, MCC is an independent U.S. foreign aid agency, In particular, a U.S. government corporation created in January 2004 by the Millennium Challenge Act of 2003.1,2 Its goal is to reduce poverty by encouraging economic growth in low- and low-income countries through the development of country-specific aid agreements, which will be determined by national priorities for U.S. government assistance.3 Water and sanitation projects have been implemented.3 Water and sanitation projects have been implemented. nine pacts and a threshold of ten countries. As a percentage of total country funding, support for these projects ranged from 2% of Ghana`s compact funding to 100% of Zambia`s compact funding (see Table 2). Some examples of water and wastewater projects, supported by the MCC, are: the thresholds are smaller, targeted and short-term grants to help countries become compactly eligible. A candidate country that does not meet the criteria of a pact, but which demonstrates its commitment to improving its performance, may be eligible for threshold funding. The MCC has signed 29 threshold agreements with 27 countries (some countries have signed a second threshold agreement after the first end), for amounts between $6.7 million and $55 million.15 Nine countries have successfully moved from obtaining threshold financing to signing a pact at a later date.16 The pact will be signed on 14 November 2004. September 2017 in Washington DC between Nepal and the MCC in the State Department Contract Room. Finance Minister Gyanendra Bahadur Karki and McC Chief Jonathan Nash have designated the compact agreement. In April 2018, the agoa and MCA modernization laws gave MCC the power to enter into parallel pacts to promote cross-border economic integration, trade and cooperation. In December 2018, the MCC`s Board of Directors selected five West African countries for parallel pacts: Benin, Burkina Faso, Côte d`Ivoire, Ghana and Niger.
In response to the Ghanaian government`s decision to terminate the concession agreement between Electric Company of Ghana Ltd (ECG) to private operator Power Distribution Services Ghana Ltd (PDS), the MCC Board of Directors did not select Ghana for regional investments in 2019. Compacts are larger chords that can span several sectors and typically last five years. In order to receive compact financing, a candidate country must, compared to other countries in its income category (for example. B other income countries), above average for at least 10 of the eligibility indicators, including two necessary indicators: the pacts are five-year agreements between the GCs and an eligible country to finance specific poverty reduction and economic growth-boosting programmes. MCC`s unique model for the development of compact programs reflects the principles that characterized the creation of the Agency in 2004. These include the principle of country responsibility, the belief that aid is most effective when it is based on a partnership (or pact) in which recipient countries assume greater responsibility for their own economic development. MCC signs a compact agreement or threshold agreement with a partner country. A compact is a five-year grant awarded to certain countries, assessing the selection criteria.
If a country does not have a passing score, but has a positive upward trend in selection criteria, it may still be eligible for a threshold program. The growth agenda is a small program focused on political and institutional reforms. The government of each partner country of excellence must create a special purpose legal entity responsible for the implementation of the grant program.