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MEDIA STATEMENT FROM THE SUPERVISORY BOARD OF MCA: TIMOR-LESTE
Millennium Challenge program to create thousands of jobs in
Timor-Leste, 4 November 2006
A major development program which will create thousands of long-term
jobs in Timor-Leste has moved a step closer with the visit over
the past week by senior officials from the Millennium Challenge
Corporation (MCC).
The MCC is charged with overseeing a massive innovative foreign
assistance program of the United States Government that is designed
to "reduce poverty through growth" in some of the poorest
countries in the world.
As part of the proposed program and to complement the creation
of jobs, vocational education and skills development in Timor-Leste
will be greatly expanded.
The mission, led by Mr. Kumar Ranganathan, Country Director for
Timor-Leste, visited Dili to continue the dialogue with authorities
and Government on the final design of the proposed assistance.
The program will benefit large segments of society with increased
job and income opportunities and improved levels of public services
at lower cost, while simultaneously improving service delivery.
The proposed Timor-Leste program is ambitious and includes a substantial
amount of Millennium Challenge Account funding, along with contributions
from the State Budget.
The country is committed to implementing a major development
program over the next five years that will provide electricity
services to large numbers of urban and rural households; ensure
a substantial upgrading of the entire national and district road
network; improve access to safe water and sanitation; and provide
strong support for the development of the private sector.
Successful implementation of the program will result in the creation
of thousands of long-term jobs throughout Timor-Leste.
Timor-Leste qualified for access to the Millennium Challenge
Account (MCA) earlier this year.
One of the most important features of MCA assistance is the emphasis
on giving selected countries the opportunity to identify their
own priorities for achieving sustainable economic growth and poverty
reduction. While working closely with the MCC, Timor-Leste welcomes
the opportunity to make its own decisions about development priorities,
and about the design, management and implementation of programs
supported by the MCA.
The program is reflected in a Compact between Timor-Leste and
the MCC that defines responsibilities and includes measurable
objectives and targets to assess progress in accelerating growth
and reducing poverty. The Compact also describes how the country
will govern and implement the program, including how it will ensure
financial accountability, transparency and fair procurement.
As required under MCC procedures, a legal entity known as MCA:Timor-Leste
and a Supervisory Board has been established within Timor-Leste
to be responsible for the development and implementation of the
Compact. The Board is chaired by the Vice Prime Minister. Other
members are two Government officials, two representatives from
the National Parliament, a representative from the Timorese business
community, a representative from civil society, and the National
Coordinator for the MCC program. The Board began operations in
October 2006 and has already met four times to make decisions
on the design and development of the MCC program.
In a meeting with the Supervisory Board for the MCA program earlier
this week, the mission indicated that Timor-Leste is making impressive
progress in preparing the Compact. For its part, the MCC would
continue to work closely with the Board to support early completion
of the Compact and its timely approval by the MCA. Once the Compact
is signed and declared effective, the program would be implemented
over a five-year period.
The MCC is an independent US Government corporation established
by President Bush in January 2004 to administer the MCA. Low income
countries that qualify for assistance are provided with support
by the MCC for policy reform and capacity building that complements
the contributions already being made by bilateral US development
programs and by other donors.
The MCC is managed by a Chief Executive Officer and a public-private
Board of Directors. The Board of Directors selects countries that
are eligible to make a proposal for MCA assistance. A series of
indicators is used to measure how well countries perform in three
broad policy categories: ruling justly; investing in people; and
encouraging economic freedom.
The Supervisory Board looks forward to a close and productive
relationship with the MCC and the people of the United States
of America.
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