“The U.S. Government’s Millennium Challenge Corporation (MCC) Board of Directors approved a $262 million MCC Compact with the Government of Moldova on November 30. This means that we are only one hundred meters away from this money that Moldova needs to modernize its economy,” Prime Minister Vlad Filat said in a news conference held jointly with the U.S. Ambassador in Chisinau Asif J. Chaudhry on December 1. The Premier said the five-year, economic development grant will improve irrigation infrastructure and management; increase the production and marketing of high value agricultural products; and rehabilitate part of the country’s national road network. The program was negotiated by a group of experts headed by the Minister of Finance. They had been in Washington during November 2-6 and discussed all the financial and fiscal aspects and the reforms that are to be implemented as part of the program. Moldova’s MCC Compact includes major agriculture and transport projects. The Transition to High Value Agriculture Project (US$102m) will help increase agricultural incomes of rural Moldovans by stimulating the production and improved marketing of high value agricultural products, including fruit and vegetables. The project includes plans to provide reliable water for agriculture through the repair of up to 11 large irrigation systems servicing 15,500 hectares. An innovative financing facility and a technical assistance package co-financed by USAID will support related investments by farmers and entrepreneurs in the shift to higher value agriculture production, post-harvest processing, storage, and marketing. The project also supports restructuring of irrigation management and devolution of responsibility to water user organizations. The Road Rehabilitation Project (US$133m) includes repairs to a 93 kilometer section of a major highway in the north-east of the country. The highway is a key link for private and passenger travel, and for internal commerce and trade. The project will reduce the time and cost to transport goods and services, and will reduce losses to the national economy resulting from deteriorated road conditions. The other US$28 million will be used to manage the implementation of the project and for feasibility studies. Ambassador Asif J. Chaudhry said the Compact will be signed in the second half of January next year as there is a 15-day congressional notification period following MCC Board approval. The Compact will be signed by Moldova's Prime Minister and the U.S. Secretary of State. The U.S. Ambassador also said he is glad that he is taking part in the negotiation and signing of the Compact as the support to the economic reforms and democratization in Moldova are major objectives for the U.S.