MCC to provide US$262m in financing to Moldova

The Board of the Millennium Challenge Corporation (MCC) decided to provide financing in the amount of US$262 million to Moldova to implement the Compact Program, Prime Minister Vlad Filat announced at a news conference. The conference was preceded by a discussion of the Premier and the U.S. Ambassador Extraordinary and Plenipotentiary to Moldova Asif J. Chaudry, Info-Prim Neo reports. The Compact Program presented by Moldova to the MCC at the start of last year has two components. Vlad Filat said that US$133 million will be allocated for the road rehabilitation component, while US$102 million for developing irrigation in the agrarian sector and for transition to advanced agriculture. The other US$30 million will be used to administer the program and make feasibility studies and to train the specialists working in the areas that will benefit from financial assistance. The U.S. Ambassador spoke about the steps that must be taken to implement the MCC Board's decision. He said that the U.S. Congress must be notified of the intention to provide financial support to Moldova. The notification process was initiated on September 22 and will last for 15 days, until October 6. If none of the Congress members have objections, the talks with the Government of Moldova will be opened. They will continue for a week. Afterward, the negotiated package will be submitted to the MCC, which will take a final decision. The U.S. Congress will be again notified. Only after that, the agreement to provide US$262 million to Moldova will be signed. “Today, we began the process of implementing the Board's decision, but Moldova must continue the reforms, reduce corruption and trafficking in human beings, show its attachment to democracy and ensure the freedom of the media,” Asif J. Chaudry said. The negotiation and signing of the new financing agreement could last for several weeks. Most probably, it will be signed by this yearend. Moldova became eligible for Compact full assistance on November 8, 2006. The Compact program was presented after broad consultations with the civil society and specialists in agricultre and road building on February 18, 2008. Compact assistance will be provided in the form of grant investments in sectors playing an important role in speeding up economic growth. At the news conference, Asif J. Chaudry congratulated Vlad Filat with the investiture of the new government, saying it is an important, historical moment for implementing democratic changes and deepening the economic reforms. “The U.S. is in Moldova because it is its friend and I assure you of our support for all the reforms planned by the present government,” the U.S. Ambassador said. [Info-Prim Neo Note:] Among the CIS states, Georgia benefits from Compact full assistance of US$295 million, while Armenia – of US$235 million. Ukraine is also legible for Compact assistance, but has not yet become a beneficiary.