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Signing of MCC compact timely
2008-02-18 08:53:34
By Editor
Yesterday, President Jakaya Kikwete and US President George Bush signed a USD 698 million Millenium Challenge Corporation compact, whose proposed duration is five years.
Already, the US had agreed to give a grant amounting to USD 8.9 million as pre-compact funding intended to meet necessary MCA-Tanzania programme preparatory activities.
The goal of the MCC is to eradicate poverty through stimulation of economic growth and increased household incomes.
It specifically targets at infrastructural investments in transport, energy and water.
The breakdown of the just-signed compact is as follows: Transport Sector USD 373 million, Energy USD 206 million, Water USD 66 million while the rest goes for programme administration.
We believe that President Jakaya Kikwete`s government qualifies for this assistance, and the President, as he said yesterday, is committed to addressing critical areas of Tanzania`s infrastructural needs.
An improved road network needs a lot of money. Tanzania has tried its best to improve its road infrastructure in recent years and results of these efforts are quite evident.
However, a lot still needs to be done because there areas in Southern and Western Tanzania that are not connected to a durable major road network.
The having an unreliable road network, for example, in bread basket regions like Rukwa, has led to massive importation of grain while maize stocks are left to rot because of transportation snags.
Worse still, the problem has stunted internal trade because locally produced goods are unable to flow freely within the country, in spite of huge demand.
This has also resulted in crippling the internal cash flow, as the country remains with a weak economy.
Energy is another component which the MCC compact will address.
It is very clear that no country can register any meaningful development without first establishing a sustainable energy base that leads to distribution of affordable energy.
However, the whole endeavor needs a lot of capital, and this is where the Americans have come in.
Likewise, reliable water supply is a basic human need, but it also needs a lot of money.
To put all in a nutshell, the MCC compact has come at the right time in the right place.
It is encouraging that the MCA emphasizes country ownership and programme effectiveness.
We also believe that Tanzania and the United States, being sovereign countries, will respect their proper mandates during the execution of the project and in other joint undertakings.
Nevertheless, expenditure tracking for transparent and effective utilization of resources is something that should not be avoided at all costs.
We are quite hopeful that a verification process effectiveness of the project is part and parcel of the MCC deal.
On the other hand, timeliness is essential, especially because the intended services are much needed by the people of Tanzania.
We thus appeal that the project should not suffer from any bureaucratic bottlenecks that may derail the work.
We therefore join President Kikwete in appreciating the increased US assistance to Tanzania, which includes the President`s Emergency Plan for Aids and President’s Malaria Initiative.
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