Millennium Challenge Corporation 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. Some politicians and civil society groups have linked the proposed pact to the GCC to other more open security agreements, such as the U.S. Agreement on the Status of the Armed Forces, which sets the framework for the U.S. military`s entry into Sri Lanka, which critics have seen as an attempt to create a U.S. military base. , or even a possible base in the country. U.S. officials called the claim “blatant misinformation.” In 2018, agoA and the MCA Modernization Act were signed by President Trump and gave MCC new power to use cross-border regional investments that address economic challenges, expand regional markets to increase the impact on poverty reduction, and allow for more trade and investment. The U.S. government`s Millennium Challenge Corporation (MCC) and the Benin government have signed a $375 million grant agreement.

september 2015, focused on Benin`s energy sector. The Benin government is supporting MCC`s investment with an additional $28 million. The entry into force of the pact allows the use of these funds for the realization of project activities for a period of five years, the duration of the program. MCC estimates that approximately 9.8 million people will benefit from this investment, 49% of whom live on less than $4 a day. In recent months, China has made considerable and highly visible efforts to help Sri Lanka – and the response of many other countries – to the COVID 19 pandemic, including a $500 million concession contract signed in March. Civil society groups have also criticized that the land component of the project could lead to the eviction of small-scale agricultural producers and land grabbing by export-oriented enterprises. The pacts are quinquennal agreements between the CCC 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.