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War on poverty gets 827bn/- boost
2007-09-19 09:17:13
By Guardian Reporter
The Millennium Challenge Corporation`s Board of Directors has approved $698 million (over 827 billion/-) in assistance to Tanzania over the next five years.
The package seeks to reduce poverty, stimulate economic growth and increase household incomes through targeted infrastructure investments in the transport, energy and water sectors.
A statement issued by the United States Embassy in Dar es Salaam yesterday quoted MCC Chief Executive Officer John Danilovich as saying the agreement to that effect attested to Tanzanians` commitment to building a better life for themselves and their children.
Ambassador Danilovich visited Tanzania in late January to visit possible project sites and emphasized the importance of starting a strong Financial Intelligence Unit.
Following the MCC board`s approval, Danilovich said: `MCC congratulates the people of Tanzania on developing a comprehensive programme designed to address Tanzania`s key constraints to economic growth - an inadequate transportation network, insufficient and unreliable supply of energy, and a shortage of clean and safe water.`
He expressed the hope that investments chosen by Tanzanians
to improve the country`s transport, energy, and water sectors would provide a catalyst to reduce poverty and spur economic growth.
The statement said assistance used to rehabilitate Tanzanian roads would help connect road users and communities with markets, schools, health clinics, and promote the expansion of economic opportunities by reducing transport costs.
`Investments in reliable energy are vital for private sector activities and to provide Tanzanians with social services such as education and healthcare,` it added.
The assistance would also fund water infrastructure improvements to help increase access to potable water, reduce the incidence of water-related diseases and burdensome healthcare costs, as well as boost workforce productivity.
`Through this Millennium Challenge grant, the American people proudly support Tanzania`s efforts to reduce poverty and improve the lives of its citizens.
I commend President Kikwete for his leadership and support throughout the development of this Compact,` the MCC chief executive was further quoted as saying.
It is expected that the programme will benefit some 4.8 million people either directly or indirectly upon project completion.
Compact signature is contingent on fiscal year 2008 funds and, once signed, the Millennium Challenge Compact with Tanzania will be the largest assistance package in MCC’s history.
Since its inception in 2004, MCC has approved `compacts` totalling over $5.5 billion with 16 partner countries: Madagascar, Cape Verde, Honduras, Nicaragua, Georgia, Armenia, Vanuatu, Benin, Ghana, Mali, El Salvador, Mozambique, Lesotho, Morocco, Mongolia, and now Tanzania.
The corporation is a wing of the US Government designed to work with some of the world’s poorest countries.
Its operations are based on the principle that aid is most effective when it reinforces good governance, economic freedom and investments in people who promote economic growth and seek to eliminate extreme poverty.
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