MCC Business Forecast

The Millennium Challenge Corporation released the Mid-Year Update to its Business Forecast on 22 May 2019. According to this, MCC expects to spend between 98 million USD and 534 million USD in 2019 on 200 different opportunities. At DevelopmentAid, we know how important the timely delivery of business data is, therefore we have made a selection of relevant planned procurements of work and services in MCC Compact Countries.  

Funding by region 

With regard to the distribution of funding by region, Africa is at the top of the list with a planned investment of 53.6 million USD followed by North America with just over 20 million USD. For multinational projects, 13.3 million USD has been put aside of which 5.4 million USD will be directed to Asia while Europe is due to receive 3.5 million USD. Latin America and the Caribbean are at the bottom of the list with almost 3 million USD of investment reserved for projects in this region. 

Funding by country 

Burkina Faso 

In December 2018, the MCC Board reselected Burkina Faso to continue to develop a compact. As part of the compact development process, MCC and the Government of Burkina Faso conducted a constraints-to-growth analysis to identify the sectors and investment opportunities that present the greatest opportunity for inclusive economic growth. Based on this analysis and the Government of Burkina Faso’s economic priorities, MCC and Burkina Faso are pursuing an energy-focused program that includes infrastructure, institutional strengthening and skills development activities. The current MCC Business Forecast announced a new contract for the Detailed Feasibility Study in Burkina Faso Power project, value between 5 and 10 million USD.  

El Salvador 

MCC’s El Salvador Investment Compact came into force in September 2015. Through this compact, MCC planned to invest up to 277 million USD in regulatory reforms, education and logistical infrastructure, with the goal of promoting economic growth and private investment in the country. The Government of El Salvador has committed to contribute 88.2 million USD in addition to MCC’s investment, representing a combined total of 365.2 million USD.  The MCC Business Forecast has announced a new contract for services in Transportation and Vertical Structure projects in El Salvador with a value of between 0.7 and 5 million USD. 

Sri Lanka 

The MCC Board approved a new 480 million USD compact with the Government of Sri Lanka in April 2019, aimed at reducing poverty through economic growth. The compact seeks to assist the Sri Lankan Government to address two of the country’s binding constraints to economic growth: an inadequate transport logistics infrastructure and planning and the lack of access to land for agriculture, the services sector and industrial investors.  The current MCC Business Forecast announces the Sri Lanka Advanced Traffic Management System project, worth between 0.7 and 5 USD million. 

Kosovo 

Currently, Kosovo is implementing a 49 million USD Threshold Program, launched in November 2017, aimed at driving economic growth and reducing poverty across the country by expanding access to affordable and reliable electricity and by strengthening government accountability and transparency. As regards the power sector, MCC’s investments are designed to strengthen the sector by fostering a market-driven approach to lowering energy costs for households and businesses, encouraging energy efficiency, and developing new sources of electricity generation. In December 2018, MCC’s Board of Directors selected Kosovo as eligible to develop a compact.  The MCC Mid-Year Update announced the Kosovo Energy Evaluation project with a value of between 0.7 and 5 million USD.  

Mongolia 

Currently, Mongolia implements a 350 million USD MCC Water Compact, signed in July 2018. MCC’s investment in Mongolia aims to provide a sustainable supply of water that will stem the impact of an impending water crisis and sustain private sector-led economic growth in the capital city, Ulaanbaatar. The MCC compact plans to increase the available supply of water through an infrastructure for the development of new wellfields and capacity building.  The Business Forecast announced a new contract for the Water, Sanitation & Irrigation project in Mongolia which is valued between 0.7 and 5 million USD. 

Background 

The Mid-Year Update to the MCC Business Forecast is for information purposes only and does not constitute a specific offer or commitment by MCC to fund in whole or in part any activity mentioned in this article. Keep updated on the status of MCC funded projects in the Funding menu on www.developmentaid.org.