The Board of Directors of the U.S. Government's Millennium Challenge Corporation (MCC) held its annual country selection meeting on December 10, 2014. In that meeting, the Board expressed serious concerns about the fight to control corruption in Tanzania, including the implications of the recent case involving Independent Power Tanzania Limited (IPTL). Although the Board voted to allow Tanzania to continue developing a second compact program, it strongly encouraged the Government of Tanzania take firm, concrete steps to combat corruption as a prerequisite to the Board's approval of any final compact.
The full text of the Board's December 10, 2014 public statement is available on the MCC website here: http://www.mcc.gov/pages/press/statement-121014-tanzania-selection In its public statement, the Board acknowledged the importance of follow-through on the Tanzanian State House's December 9 statement that it would act promptly and decisively on the late November parliamentary resolutions regarding IPTL.
U.S. Ambassador to Tanzania Mark Childress noted, "Progress in combatting corruption is essential to a new MCC compact, as well to an overall improved business climate in Tanzania. We are encouraged by the State House's announcement of December 9 that it will soon address the parliamentary resolutions linked to IPTL, and we urge quick government action, given the impact on several key development issues."
The Board also referenced a series of agreed-upon structural policy and institutional reforms the Government of Tanzania has committed to undertake in order to improve the efficiency and transparency of its energy sector institutions more broadly. Ambassador Childress commented further that, "We are pleased the compact development process will continue over the coming months, and we also want to stress that these commitments must be met before the United States will finalize any new compact with Tanzania."
Tanzania was one of 10 countries discussed by the MCC Board, which met to determine the eligibility of countries to begin or continue the compact development process.
If finalized, this would be Tanzania's second MCC compact. Between 2008 and 2013, MCC funded a $698 686 Old Bagamoyo Road, Msasani, P.O. Box 9123, Dar es Salaam Telephone +255-22-229-4000, Fax +255-22-229-4722 http://tanzania.usembassy.gov
million compact of investment projects in water, roads, and electric power throughout Tanzania. That compact program led to the construction of over 3,000 km of power lines, 450 km of trunk roads, two water treatment plants, and an airport runway.
The Millennium Challenge Corporation is a United States Government agency that provides assistance to developing countries. MCC 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 the elimination of poverty.
