Press Release from the Millennium Challenge Corporation, April 1, 2009Footnote ¹

The United States Government's Millennium Challenge Corporation (MCC) today signed a grant agreement with the Government of Senegal to provide up to $13.39 million to support the country's development of compact that will reduce poverty through economic growth. This grant funding will be used for detailed designs for two irrigation projects, environmental and social assessment work for irrigation and road projects, the collection of data to monitor and evaluate activities, and implementation preparations for financial management and procurement.

In July 2008, the Government of Senegal submitted concept papers to MCC for investments in road rehabilitation, irrigation and water resource management and judicial reform. These projects would help farmers increase production of basic foods and commercial crops, provide improved access to markets and stimulate local commerce and regional trade. MCC's grant with the Government of Senegal does not constitute a commitment to sign a compact, but is an important milestone in MCC's compact development process.

Press Release from the U.S. Trade and Development Agency, April 4, 2009Footnote ²

In advance of President Obama's visit to the Republic of Turkey, USTDA and Turkey's Ministry of Energy and Natural Resources (MENR) signed a Memorandum of Agreement (MOA) outlining a broad program of cooperation in the areas of energy efficiency, renewable energy, and clean coal technology. The activities outlined in the MOA build upon USTDA's support for projects that spur economic growth and development in Turkey and create jobs for U.S. workers throughout the United States.

USTDA Acting Director Leocadia I. Zak and MENR Minister Hilmi Güler signed the MOA on behalf of the U.S. and Turkish governments, respectively. “This agreement reaffirms our shared commitment to the development of government-to-government cooperation, while recognizing the importance of private sector solutions in meeting energy challenges in an environmentally-friendly manner,” said Acting Director Zak. Furthering this commitment, U.S. Secretary of Energy Steven Chu recently sent a letter to Minister Güler expressing the Department's interest in, “working with Turkey to greatly improve and diversify energy use, develop renewable energy, and reduce carbon emissions.”

The MOA confirms USTDA funding approval for four projects identified by MENR as priorities for Turkey's continued economic growth. The projects include training for Turkish officials in energy planning and modeling, such as energy supply and demand projections; support for energy efficiency projects, with a focus on public, industrial and residential facilities, and the development of private sector energy service companies; a feasibility study on the gasification of Turkish coal; and technical assistance in the implementation of solar power technologies.

Together, these activities will advance key objectives of the Obama Administration by reducing carbon emissions, investing in clean energy and creating U.S. jobs associated with the deployment of advanced clean energy technologies. Moreover, the activities will lessen Turkey's dependence on natural gas as a source of electric power and will assist in limiting the adverse effects of carbon emissions from new power generation as Turkey moves toward European Union accession.

Press Release from the U.S. Agency for International Development, April 7, 2009Footnote ³

A joint statement of collaboration was signed between the United States Government and the Ministry of Finance of the Government of Pakistan. The signing marked the announcement of the United States Agency for International Development's 3-year, $24 million Energy Efficiency and Capacity Building project, according to a U.S. Embassy announcement today.

Energy conservation efforts are expanding in Pakistan, resulting in the promotion of energy audits for commercial enterprises, consumer awareness campaigns to highlight the importance of efficiency in household appliances, the introduction of low-energy applications in new building construction, and renewed attention to power losses between transformers and household connections. Recurring power shortages have made energy conservation increasingly important. Some estimates indicate that 1,500 megawatts per year could be saved with an effective national campaign.

The Energy Efficiency and Capacity Building project will improve demand-side management practices in Pakistan's distribution companies; implement energy efficiency programs; support energy service companies working with Pakistani industries; and increase awareness of energy efficient practices among business and residential users. The project will also support the improvement of human resource management for the energy sector through coordinated training programs and energy partnerships.

Press Release from the Millennium Challenge Corporation, April 13, 2009Footnote ⁴

Paraguayan President Fernando Lugo, United States Ambassador Liliana Ayalde, Minister of Finance Dionisio Borda, President of the Senate Gonzalez Quintana and United States Agency for International Development (USAID) Mission Director John Beed today participated in a ceremony celebrating the signing of Paraguay's second Millennium Challenge Corporation (MCC) Threshold Program, which is worth approximately $30.3 million. The two-year program builds upon the success of Paraguay's first MCC Threshold Program, signed in May 2006, and aims to institutionalize key reforms in public administration and to support anti-corruption activities in law enforcement, the judiciary, customs, and the healthcare sector.

“At this time we thank the U.S. government for supporting this program. We foresee that the institutions that are part of this synergistic and coherent process will faithfully comply to see the goals of the program fulfilled,” President Lugo stated.

“The second phase of MCC's Threshold Program will be an important tool for the Government of Paraguay as the country works to promote transparency and strengthen key institutions in the fight against corruption,” said Ambassador Ayalde.

“MCC applauds President Lugo's efforts to combat corruption and affirms continued U.S. support for Paraguay's anti-corruption efforts with this ambitious program,” said MCC Acting CEO Rodney Bent. “Partners like Paraguay understand why MCC considers corruption to be one of the ‘hard hurdles’ to MCC compact eligibility. The fight against poverty requires the fight against corruption,” Mr. Bent added.

“Paraguay's participation in the MCC Threshold Program is a unique opportunity for the nation, at a historic moment in its democratic evolution, to make important strides in the fight against corruption,” USAID Mission Director John Beed said.

The MCC Threshold Program is designed to assist countries that are on the “threshold” of eligibility for Millennium Challenge Account compacts. Threshold program assistance is used to help countries address the specific policy areas for improvement indicated by their scores on 17 policy indicators in three categories —Ruling Justly, Investing in People, and Encouraging Economic Freedom. These policy indicators are central to the criteria and methodology for compact eligibility and are products of respected international institutions and national data. Each indicator was selected based on its relationship to economic growth and poverty reduction, the number of countries it covers, its transparency and availability, its analytical rigor and its objectivity.

USAID will administer Paraguay's second MCC Threshold Program. The U.S. Department of Justice and U.S. Department of Treasury Office will also be involved in implementing portions of the program.

Remarks by Secretary of State Clinton, April 16, 2009Footnote ⁵

Remarks by Secretary of State Clinton, April 17, 2009Footnote ⁶

Excerpts of Remarks by Secretary of State Clinton, April 22, 2009Footnote ⁷

Statement by the Department of State, April 23, 2009Footnote ⁸

As part of the strong commitment this administration and I have to support gender equality and women's empowerment throughout the world, I am pleased to accept Denmark's invitation to join “The Millennium Development Goal 3 Global Call to Action.” Launched by the Government of Denmark to support the third Millennium Development Goal on “Gender Equality and Women's Empowerment,” this campaign embodies the values long held by the United States, those of equality and access to opportunity for women in every country. I congratulate Denmark for this initiative.

Today, I joined the Secretary General of the United Nations, the President of the World Bank and other leaders in the public and private sectors in becoming a “Torch Bearer” in this effort. I look forward to working with them and with the government of Denmark to do all we can to expand equality and opportunity for women and girls.

Statement by Secretary of the Treasury Geithner, April 26, 2009Footnote ⁹

We meet at an unprecedented time when a severe global economic slowdown threatens to reverse major progress in poverty reduction. The Multilateral Development Banks, led by the World Bank, have a critical role to play in mitigating the impact of the financial crisis. These institutions are at the forefront of our efforts to eradicate global poverty and promote balanced, sustainable growth. We cannot afford to lose time or lose ground.

At the recent London Summit, Leaders supported MDB plans to expand lending to over $300 billion during the next three years. Several of the MDBs are responding vigorously with higher volumes and new instruments. This includes President Zoellick's plans to provide up to $100 billion of IBRD funding, the fast tracking of IDA commitments, the IFC's trade finance programs, as well as facilities to support bank recapitalization and infrastructure financing. Going forward, we encourage the World Bank Group to continue to explore flexible approaches, such as guarantees, to leverage official and private capital to address development needs.

While most MDBs are focusing on mobilizing existing resources, many have completed or are preparing to launch capital reviews collectively for the first time. At the London Summit, Leaders affirmed that the MDBs must have adequate resources, and we are committed to participating actively in their capital resource reviews. These assessments also present a welcome opportunity for all of us, as shareholders, to engage in a systematic review across the MDBs to ensure not only that they have appropriate levels of resources, but also to promote fundamental reform. It is also critical that MDB resources are effectively deployed to achieve the maximum impact on long-term development objectives, including addressing the needs of the poorest. We should ensure that the missions and actions of the MDBs are clearly defined and coordinated with each other, the IMF, and other public and private donors. Let me highlight a few priority areas that I believe should underpin such reviews:

First is a commitment to good governance, which is key to institutional effectiveness. This includes efforts to strengthen institutional risk management capacity and combat fraud and corruption. On this point, I welcome the rigorous implementation of the Volcker Panel recommendations at the World Bank, and look forward to a similar robust adoption of recommendations of the Thornburgh Group at the Inter American Development Bank. The internal controls review of IDA highlighted some important areas for improvement on fraud and corruption controls, and I welcome the World Bank's action plan for addressing these weaknesses.

Second, we should examine the relative roles of the international financial institutions, both in more normal economic circumstances and in times of crisis. We need a clear division of labor that reflects the comparative strengths of each institution, both in the low income countries, and in those countries with strong external reserves and more developed financial systems. This will include assessing how well the MDBs coordinate with each other to address major development priorities, such as the environment. The World Bank Group is already making an exceptional contribution by leading a coordinated effort through mitigation and adaptation activities to combat the affects of climate change. We applaud the World Bank Group and our international partners for working together to launch the Climate Investment Funds, which will make an immediate impact in addressing climate change.

Third, we should evaluate whether each institution has demonstrated flexibility in its balance sheets to address the crisis, and an ability to leverage both public and private finance. The Asian Development Bank, for example, took steps to maximize its headroom as a part of its capital increase request, and the IDB has agreed to look at ways to further mobilize its balance sheet as a first step in its capital review.

Fourth, we need to examine the capacity of the MDBs to adapt to change in the needs of its members, to demonstrate an ability to innovate and a capacity to achieve results. The growing emphasis on results measurement, rather than lending volumes, represents a commendable and important shift at the MDBs. This focus should continue, even in the face of the crisis, when there is an urgency to get money out the door, for in a time of limited resources it is important to make sure every dollar counts.

A top priority must also be support for the poorest countries, including fragile and post-conflict countries that will disproportionately feel the effects of the crisis. Here, a key test for the MDBs is the extent to which those institutions with concessional windows support the poorest.

Taking a comprehensive approach to MDB resource reviews, we hope, will create a race to the top in achieving results and moving successfully through the crisis. But the MDBs cannot do it alone; ultimately, it is the effective implementation of appropriate financial and economic policies that will determine the scope and pace of recovery among the poorest economies. This must include a commitment to openness and resisting protectionist measures. The drop in trade flows is leading to precipitous declines in export revenues in developing countries, and maintaining access to international markets will be key to a balanced, sustainable global recovery. Moreover, as the recent food crisis made evident, the imposition of trade taxes, quotas and export bans only exacerbated the volatility of commodity prices and prolonged food shortages.

In short, we have a collective responsibility to act. Now that we have achieved unprecedented agreement on the right strategy and the right set of tools, we need to keep the pressure on to execute quickly and achieve a lasting, shared recovery. The United States will sustain action as long as necessary to see growth resume, not just nationally but globally—an objective that is important not just for our shared prosperity but for our national security. In the United States, we have adopted an ambitious and aggressive policy agenda that will strengthen our financial system and lay the foundations for economic recovery. This includes the American Recovery and Reinvestment Act to create three to four million jobs and put resources into the hands of consumers and businesses, the Financial Stability Plan to cleanse and strengthen our financial institutions and restart the flow of credit, and the Making Home Affordable Plan to address our housing crisis and help millions of homeowners take advantage of historically low mortgage rates and avoid foreclosure.

Finally, I want to affirm that the United States is on track to meet its Gleneagles Commitments to double Overseas Development Assistance (ODA) to Sub-Saharan Africa by 2010. U.S. ODA was $7.6 billion in 2008, putting us close to our goal of $8.7 billion by 2010. At the recent Leaders Summit, President Obama pledged to work with our Congress to provide nearly half a billion dollars in immediate assistance to vulnerable populations and double support for agricultural development to more than 1 billion dollars in 2010, so that we can give people the tools they need to lift themselves out of poverty.

We will work with our partners here and across the world on the vital measures that are necessary. As President Obama has said, we live in a time when our destinies are shared, but will be written by us, not for us.

Press Release from the Millennium Challenge Corporation, April 27, 2009Footnote ¹⁰

Underscoring the U.S. Government's deep commitment to addressing long-term poverty issues in the wake of the ongoing global economic crisis, senior Millennium Challenge Corporation officials are meeting this week in Washington with ministers from MCC partner countries throughout Africa, Asia and Latin America to review ongoing MCC programs fighting global poverty and promoting sustainable economic development.

“The economic downturn has disproportionately affected millions of people who live on less than $2 a day,” said MCC's Acting Chief Executive Officer Rodney Bent who, along with other high level MCC officials, are taking the opportunities presented from the World Bank and International Monetary Fund meetings in Washington to engage leaders from Colombia, Mongolia, Burkina Faso, Benin, Namibia, Lesotho, Ghana, Philippines, Zambia and Jordan.

Mr. Bent said, “There is real progress being made in the fight against global poverty, and these conversations make one thing very clear: long-term solutions cannot take a backseat in this time of economic crisis. MCC's partners are committed to hard work, positive reforms and transparent implementation, all of which provide the best hope for their people and a more sound global economy.”

The meetings this week are an opportunity for MCC officials to review projects and activities on the ground and underscore with partner countries the need to communicate transparently in their home countries about the management of MCC funding and MCC's focus on results-based foreign aid.

Press Release from the U.S. Agency for International Development, April 28, 2009Footnote ¹¹

As concerns over the spread of swine flu grow, the U.S. Agency for International Development (USAID) announced today that it is providing an additional $5 million to the World Health Organization (WHO) and the Pan American Health Organization (PAHO) in emergency support for efforts to detect and contain the disease in Mexico.

“Since 2005, USAID has committed $543 million to support pandemic prevention and preparedness across the globe,” said Alonzo Fulgham, Acting USAID Administrator. “This additional $5 million is specifically aimed at helping to control the transmission of swine flu in Mexico, through advanced disease surveillance and control measures.”

USAID is also working closely with U.N. and civil society partners to adapt and disseminate important public health messages for communities and healthcare facilities about swine flu and how to limit risks for disease transmission.

“Containing the spread of certain animal diseases, like swine flu and avian influenza, is critical to limiting the threat of a pandemic,” Fulgham continued. “As demonstrated in recent days,” he added, “such diseases can spread quickly, so informing the public about how to reduce risks is critical.”

Swine flu is of particular concern because it is both a novel virus and spreads efficiently among humans, meeting two of three criteria for a pandemic.

On April 25, WHO declared the ongoing spread of swine flu a public health emergency of international concern. On April 27, WHO raised the level of influenza pandemic alert to Phase 4, indicating an increased likelihood of a pandemic. The increased alert level does not necessarily mean that a pandemic is inevitable. WHO sent a team of responders, including two experts from the U.S. Centers for Disease Control and Prevention, to work with authorities in Mexico. The team will further investigate and characterize the virulence and transmission dynamics of the disease.

USAID is responding to the international outbreak in coordination with the Centers for Disease Control and Prevention (CDC). To help track transmission of H1N1 in the swine population, USAID is also supporting FAO efforts to conduct animal surveillance in Mexico and other parts of Central America. USAID has also offered to provide 900,000 sets of personal protective equipment from its avian and pandemic influenza stockpile to support ongoing response efforts by the Department of Health and Human Services, WHO, and PAHO. The use of this protective equipment helps to protect first responders from contracting or spreading disease from suspected outbreak sites.

USAID has committed $543 million to support pandemic its Avian and Pandemic Influenza prevention and preparedness activities across the globe since 2005. In addition, the USAID is positioned to provide humanitarian aid to help countries requiring additional support in the event of a pandemic.

Excerpt of Remarks by President Obama, April 29, 2009Footnote ¹²

Press Release from the U.S. Trade and Development Agency, May 5, 2009Footnote ¹³

Today, USTDA awarded a grant to the Office National des Pêches (National Office of Fisheries) in Morocco as a continuation of the Agency's support for the development of the necessary cold storage infrastructure to complement Morocco's assistance under its Compact with the Millennium Challenge Corporation (MCC). The grant will be used to fund technical assistance in the creation of cold storage infrastructure and facilities to reduce losses in Morocco's artisanal fisheries sector. The implementation of the project is expected to create opportunities for the export of U.S. manufactured goods and services.

The $462,970 grant was conferred during a signing ceremony held at the National Office of Fisheries. The Chargé d'Affaires at the U.S. Embassy in Rabat, Robert P. Jackson, and the Director General of the National Office of Fisheries, Majid El Ghaib, signed the grant agreement on behalf of the U.S. and Moroccan governments, respectively.

Fishing is an important sector in Morocco, representing 60 percent of Moroccan food exports and 15 percent of total national exports. Given the sector's importance to the national economy, Morocco's $697.5 million Compact with the MCC includes a Small-Scale Fisheries Project, which seeks to transform the small-scale fisheries sector by modernizing the means of catching, storing, and marketing fish. The grant awarded today will focus on the technologies and practices in cold chain storage and infrastructure to preserve the quality of fish production and improve the value of the catch.

Press Release from the Millennium Challenge Corporation, May 7, 2009Footnote ¹⁴

The Obama Administration's FY2010 International Affairs Budget presented to members of Congress today includes a request of $1.425 billion to fund the Millennium Challenge Corporation (MCC), representing a 63 percent increase over the enacted amount for the agency in FY2009.

“The U.S. Government has identified global poverty reduction as one of today's most important overarching foreign policy goals and this priority is reflected in the FY2010 request to substantially increase the budget for MCC,” said MCC Acting Chief Executive Officer Rodney Bent. “As the global financial crisis threatens to force an additional 90 million people worldwide into poverty this year, there is no better time to support MCC's smart and innovative approach to reduce poverty through innovative solutions that promote long-term economic growth.”

“MCC looks forward to testifying before members of Congress in the coming weeks to provide an overview of potential programs with partner countries including Senegal, Moldova, Jordan, Malawi, the Philippines, Zambia, Colombia, Indonesia, Liberia, and Timor-Leste,” said Bent.

Press Release from the U.S. Agency for International Development, May 11, 2009Footnote ¹⁵

The United States Agency for International Development (USAID) announced today that funding for family planning and reproductive health (FP/RH) activities in Kenya would rise to $17.8 million in 2009. This announcement represents an increase of $7 million to USAID's family planning and reproductive health activities in Kenya from just two years ago.

The new funding supports the Government of Kenya's efforts to increase access to quality health care. The funds will help improve the health of women—both during and after their pregnancies—and continues and expands USAID's three decades of family planning assistance to Kenya.

“This new funding represents President Obama's commitment to improving access to vital health services for millions of Kenyans,” noted Dr. Scott Radloff, the Director of USAID Washington's Office of Population and Reproductive Health. “His administration has followed this policy decision with a number of positive actions that will be felt in countries like Kenya. One out of every four Kenyan women wants to space or limit their births and are not using family planning services. The additional funds will make these services available to those women,” Radloff said.

The funding for FP/RH activities will:

• * enable women and couples to choose the number and spacing of births

• * help reduce maternal and child mortality

• * help reduce the transmission of HIV

• * reduce abortions

• * improve women's opportunities

• * enable families to invest in their children and improve their well-being, and

• * mitigate the impact of population growth on environment, economy, and state stability.

Statement by President Obama, May 13, 2009Footnote ¹⁶

To The Speaker Of The House Of Representatives:

Last month, I asked the Congress to consider changes to the level of borrowing authority for the International Monetary Fund (IMF). Today, I formally transmit this request in the accompanying supplemental budget request. I urge that the Congress expand the resources available to the IMF through its New Arrangements to Borrow (NAB) and approve a set of other proposals to strengthen the IMF, including an increase of about $8 billion in the U.S. quota subscription to the IMF.

The NAB is one mechanism that the IMF utilizes to boost its lending ability when its regular resources are at their limit in the face of circumstances that threaten the stability of the international monetary system. This increase in the NAB by the United States and other countries would provide the necessary resources for the IMF to address financial dangers in markets around the world, especially those in developing countries impacted by the global financial crisis.

To that end, I request that the Congress approve both the U.S. expansion of NAB up to $100 billion and the increase in the U.S. quota subscription. The size of the NAB is currently $50 billion. This change, and the U.S. quota increase, should carry a minimal budget score as it is equivalent in some respects to credit activity with very small risk. The request provides that the costs of these proposed NAB and quota increases will be reflected on a net present value basis.

This step is crucial for U.S. economic interests. Many of the developing countries that would benefit from the NAB expansion are experiencing severe economic decline and a massive withdrawal of capital. Should the situation become worse, and should the IMF not be in a position to stem the crisis, currencies could collapse. The experience with the Asian financial crisis shows that such a massive failure would be a catalyst for steeper drops in U.S. growth, jobs, and exports.

This proposal, first discussed at the international level at the recent G-20 meetings in London, came after broad consultation with Congress. The U.S. expansion of $100 billion in the NAB would be part of an overall international expansion of $500 billion. We committed to this expansion, and other countries are looking to the United States to deliver on our commitment.

Press Release from the Millennium Challenge Corporation, May 19, 2009Footnote ¹⁷

Millennium Challenge Corporation (MCC) Acting Chief Executive Officer Rodney Bent announced today that the MCC Board of Directors, chaired by U.S. Secretary of State Hillary Rodham Clinton, has voted to authorize the termination of MCC's $110 million, five-year poverty reduction grant agreement, or compact, with Madagascar. The grant program has been on hold since the country experienced an undemocratic change of government earlier this year. In announcing the Board's decision, Mr. Bent issued the following statement.

MCC deeply regrets that it will officially terminate all operations in Madagascar following the recent undemocratic change of government. This is not a step we take lightly, as the MCC Board of Directors and staff have been extremely proud of the real improvement the MCC program has made in the lives of the poor in Madagascar. We remain concerned about the future of the Malagasy people. As the MCA program was conceived to help those developing countries that show the strongest commitment to the basic principles of promoting political rights, investing in people, and ensuring a free market, the Board determined that recent developments in Madagascar have fundamentally undermined the country's basic eligibility for the program.

In order to facilitate a responsible and safe closure of its programs, MCA-Madagascar will remain in operation long enough to ensure that compact termination is orderly and does not endanger public health and safety, or the environment. MCC is working to ensure that program assets, paid for by U.S. taxpayer funds, are properly accounted for as part of this process.

Remarks by USAID Acting Administrator Fulgham, May 20, 2009Footnote ¹⁸

Press Release from the Millennium Challenge Corporation, May 22, 2009Footnote ¹⁹

Millennium Challenge Corporation (MCC) Acting Chief Executive Officer Rodney Bent met with His Excellency Jakaya Mrisho Kikwete, President of the United Republic of Tanzania, today to discuss the successful progress and emerging results of the U.S. Government's $698 million, five-year poverty reduction grant currently being implemented in the country.

“It is a pleasure to meet with President Kikwete and discuss the results emerging from our poverty reduction partnership with Tanzania. I commend his leadership and foresight to ensure that these investments are achieving their goals,” said Bent. “There is no question that Tanzania plays a critical role in the region as an economic partner and proponent of peace and security. These MCC projects are fortifying the modern infrastructure necessary for long-term growth and prosperity in the country and the region.”

Press Release from the U.S. Agency for International Development, May 28, 2009Footnote ²⁰

The U.S. Agency for International Development (USAID) and the Arab Network for Environment and Development (RAED) announced today a strategic partnership working to increase regional capacity and awareness in the Middle East and Northern African (MENA) region. Both organizations share a vision to promote awareness, build capacity, share best practices and develop joint approaches to address the critical water issues of the region.

USAID and RAED recognize the importance of positive change gained by exchange between civil society organizations, governments and the private sector. By connecting a regional network of 200 environmental and civil society organizations with a strategic partner network of experts—including water utilities, professional associations, donors and the private sector—the two groups can create sustainable solutions at the local, national and regional levels.

This dialogue is particularly relevant in the Middle East and North Africa as this region already faces a water crisis that affects its people, the environment and economy. In this arid region, supplies of renewable water are limited while demand is rapidly rising due to population growth, agricultural use, and increasing industrialization and urbanization. Climate change increases stress on an already scarce resource. Daily per capita water consumption is low throughout the region and the cost of supplying water continues to increase. In response, pressures on water operators to improve capacities are growing and a need for pro-active dialogue is crucial in finding a balanced approach that works for all.

To address these critical challenges, USAID and RAED are joining forces to advocate, educate and partner in water resource management and access to clean drinking water and sanitation. In doing so, each party brings unique and valuable assets to the table.

Implementing this partnership is USAID's Advancing the Blue Revolution Initiative (ABRI), a regional program which seeks to transform the culture and governance of water in the Middle East and Africa. This requires building awareness of the water crisis and promoting activities of multi-stakeholder networks. By increasing dialogue, mobilizing new financial and nonfinancial resources and building the capacity of strategic organizations, progressive initiatives can be sustained. USAID's contacts with international donors, water associations, water experts and regional institutions provide access to expertise and funding, making international best practices and methodologies available to the RAED network. Key ABRI strategic partners such as the International Water Association (IWA) and the Arab Countries Water Utilities Association (ACWUA) have already begun collaborating with RAED on the topic of climate change.

RAED provides ABRI access to over 200 civil society organizations, offering valuable perspectives to the regional dialogue. RAED is active in implementing the UN agenda especially in the area of the Millennium Development Goals (MDGs), specifically to help the poor achieve sustainable livelihoods. Under the umbrella of its network, RAED member organizations have collaborated in implementing projects including solid waste recycling, renewable energy, water conservation and protection of endangered species on both regional and national levels—all top priorities for the region's water utilities.

Today RAED and USAID officially launched our first jointly programmed national climate change workshop for the MENA region. This workshop, held in Rabat, Morocco from May 28-29, 2009, emphasizes the mutual objectives of our overall partnership.

Remarks by Secretary of State Clinton, May 31, 2009Footnote ²¹

Press Release from the U.S. Agency for International Development, June 4, 2009Footnote ²²

The U.S. Agency for International Development (USAID) yesterday contributed $75 million to improve and expand children's immunization programs in developing countries.

The contribution is part of the overall U.S. commitment to global health and the new global health initiative, a 6-year, $63 billion dollar effort announced by President Obama in May.

The grant was announced by Deputy Secretary of State Jacob Lew at Global Alliance for Vaccines and Immunization (GAVI) Board of Directors Meeting at the World Bank.

“When children escape disease, they have a fighting chance to thrive and attend school,” said Lew. “As they grow into healthy adults, they can then contribute to the development of more vibrant and productive societies. Ensuring better health for the world's children is an investment in the prospects of the next generation. Today's children will become tomorrow's doctors, scientists, engineers, and leaders.”

The contribution brings the total U.S. commitment to $569 million to the GAVI effort. The U.S., through USAID, also serves on the GAVI Alliance Board, and provides technical guidance at the international and country levels.

Press Release from the Millennium Challenge Corporation, June 8, 2009Footnote ²³

The United States Government's Millennium Challenge Corporation (MCC) and the Government of the Hashemite Kingdom of Jordan entered into a grant agreement on June 4, 2009 that will provide up to $13.34 million to develop a large-scale MCC Compact program focused on poverty reduction through economic growth. The current grant will finance feasibility studies and environmental and social assessments for water and wastewater network projects, and technical advisors to help negotiate the expansion of an existing wastewater treatment plant.

In February 2009, the Government of Jordan, led by a core team within the Jordanian Prime Ministry, proposed four interrelated investment projects in water delivery and wastewater that, working together, will increase the effective supply of water in populous, urban areas. The proposed investment projects are focused on Zarqa, a dry governorate to the east of the capital. Preliminary analysis suggests that nearly three in ten households in Zarqa consume less than the minimum amount of water considered essential for personal hygiene and food safety by the World Health Organization. Due to shortages of piped water, most households receive water only one or two times per week, and low-income families spend a larger share of their money on water supplied by private tanker trucks and other providers at higher prices.

While this preliminary agreement with the Government of Jordan does not constitute a commitment to sign a Compact agreement, it marks an important milestone in the compact development process. Before the compact can be signed, all proposed projects are subject to MCC's rigorous due diligence process, MCC's Board of Directors must first approve the compact funding, and the U.S. Congress must be notified.

Statement by Secretary of State Clinton, June 10, 2009Footnote ²⁴

During the quarterly Millennium Challenge Corporation (MCC) Board of Directors meeting I chaired today, my fellow Board members and I undertook an in-depth review of ongoing poverty reduction programs and upcoming partnerships around the world.

The fight against global poverty is more important than ever, especially given the current economic climate, and the United States stands steadfast in its goal to reduce poverty through sustainable economic growth. Our aid to the world's poor must be as effective and transparent as it is generous. We will work to produce tangible results from every taxpayer's dollar we spend overseas, and we will partner with developing countries that take responsibility for their development needs and accept the highest standard of accountability for those dollars. That is the mandate of the MCC.

President Obama has directed U.S. agencies to enhance engagement in the international effort to promote development by playing a leading role in reducing poverty and fighting corruption. We can do this through the MCC and other agencies of the U.S. government, and in cooperation with international organizations and private groups dedicated to this important effort. Our government's efforts to alleviate poverty are a wise investment that ultimately helps the United States achieve its diplomatic and security goals.

Press Release from the Millennium Challenge Corporation, June 10, 2009Footnote ²⁵

The U.S. Government's Millennium Challenge Corporation (MCC) Board of Directors, chaired by U.S. Secretary of State Hillary Rodham Clinton, today held its quarterly meeting to discuss the progress of its poverty reduction programs worldwide. The Board received updates on engagement with those countries seeking MCC funding, including Moldova, Senegal, Jordan, Malawi, and the Philippines. Board discussions also included the compact development process for Colombia, Indonesia, and Zambia—three new countries selected by the Board last December as eligible for MCC compact assistance.

The Board reviewed how MCC investments and programs around the world are helping address priority issues such as long-term economic growth, global food security, maternal and child health and safety, transportation infrastructure improvements, secure land tenure, and environmental protection.

“MCC's commitment to performance-based foreign assistance is at the forefront of the U.S. Government's ‘smart power’ approach to create economic growth. Today's Board meeting makes it clear that these programs are having a significant, positive impact on the lives of the world's poor,” said Acting MCC Chief Executive Officer Rodney Bent.

The Board approved action to partially terminate MCC's compact assistance to Nicaragua for activities previously suspended in December 2008. These activities include a property regularization project and a major road. The Board reiterated that its commitment to helping the people of Nicaragua reduce poverty through economic growth will continue through MCC assistance for a rural business development project benefiting small and medium agriculture-related enterprises, including some 30,000 people in rural areas. MCC also will complete three roads already under construction in the departments of León and Chinandega. The termination will result in a reduction of approximately $62 million from Nicaragua's original $175 million compact with MCC.

“Although the Board would like to continue in full MCC's support for Nicaragua's economic development, we remain committed to upholding MCC's founding principles of working with those countries whose governments actively demonstrate a commitment to democracy and the rule of law, as well as economic freedom and social investment,” said Mr. Bent. “Given the lack of meaningful reforms or progress in these areas by the government of Nicaragua, the Board has agreed to terminate these projects.”

“This decision is made with deep disappointment, as our partnership with Nicaragua has yielded tremendous progress over the past years in reducing poverty through innovative economic growth projects. MCC regrets that the government of Nicaragua has not taken steps to respond to concerns expressed by its people and the international community surrounding the recent municipal elections. This has made it impossible for us to fully continue our collaboration with the government of Nicaragua,” stated Mr. Bent.

The Board also addressed the future of MCC engagement with Armenia. As a result of the meeting, MCC will not resume funding for any further road construction and rehabilitation. This hold on funding is a result of actions by the government of Armenia that are inconsistent with MCC principles promoting democratic governance. MCC's Board unanimously expressed regret that this action means that MCC will not be able to fully fund this project during the compact term.

“MCC regrets that it cannot move forward with funding road construction in Armenia,” Mr. Bent said. “The responsibility for this outcome remains with the government of Armenia, whose actions have been inconsistent with the eligibility criteria that are at the heart of the MCC program. It is particularly disappointing that MCC will not be able to partner with Armenia on completing the roads that will benefit Armenia's rural poor who are our friends and partners in creating growth for the future,” continued Mr. Bent. “I do not anticipate that the Board will revisit this issue in the future.”

Press Release from the U.S. Trade and Development Agency, June 12, 2009Footnote ²⁶

Today, USTDA award a grant under the U.S.-India Aviation Cooperation Program (ACP) to the Directorate General of Civil Aviation (DGCA) in India. The grant reflects USTDA's strategy of focusing on programs in India that create mutually beneficial relationships for advancing our bilateral relations and opening markets to greater trade by funding a program for the DGCA on aviation sector technology standards and processes.

The $371,700 grant was conferred during a signing ceremony held in USTDA's Business Center in Arlington, Virginia. USTDA Acting Director Leocadia I. Zak and DCGA Director General Dr. Nasim Zaidi signed the grant agreement on behalf of the U.S. and Indian governments, respectively. The event was also attended by India's civil aviation leaders and U.S.-India ACP member companies and organizations.

At the ceremony, Acting Director Zak also announced plans to hold the second U.S.-India Aviation Summit in Washington, D.C. in late fall and USTDA's intention to award a separate grant to the DGCA on helicopter safety and regulatory frameworks in the near future. “We expect that this second U.S.-India Aviation Summit will help further solidify and expand the exciting technical and commercial partnership our country has with India's growing aviation sector,” said Zak. “I am also confident that the grants we are awarding and announcing today highlight a growing working relationship between the Indian and U.S. aviation sectors that will lead to a heightened exchange of technology and knowledge, safety standards, and efficiency.”

Permanent Secretary Madhavan Nambiar from India's Ministry of Civil Aviation, who is leading the delegation from India, stated, “On behalf of my government, I am happy to say that the projects and our joint efforts on the upcoming Summit represent a public-private partnership model that is important to our growing relationship under the U.S.-India ACP.”

As India's civil aviation regulatory body, the DGCA is responsible for regulating air transport services and for enforcing civil air safety and airworthiness standards. The USTDA grant awarded today will aid in the economic growth and development of India's civil aviation sector by updating aviation standards and regulations.

Press Release from the U.S. Trade and Development Agency, June 17, 2009Footnote ²⁷

Today, USTDA awarded separate grants totaling $921,924 to the Egyptian Ministry of Transport (MOT) and Egypt Hydrocarbon Corporation (EHC) designed to promote economic growth and open opportunities for the export of U.S. goods and services. The grants will be used to support the development of a positive train control (PTC) system for Egypt National Railways (ENR) and the establishment of a steam cracker complex in Ain Sokhna for EHC. A previous USTDA grant to EHC resulted in $275 million in U.S. exports.

The USTDA grants were conferred during a signing ceremony held at the U.S. Embassy in Cairo. U.S. Ambassador to Egypt Margaret Scobey signed both grant agreements on behalf of the U.S. Government. Special Advisor to the Minister of Transport Mohamed Nabil and EHC Chairman and Chief Executive Officer Basil El-Baz each signed the agreement pertaining to their respective organization's grant. USTDA Country Manager for Egypt Sarah Shapiro signed as a witness to both grant agreements.

“Today's $263,601 grant to EHC will be used to evaluate the proposed construction of a steam cracker complex in Ain Sokhna that will modernize Egypt's petrochemical sector, generating new projects and creating jobs and greater economic development throughout Egypt,” said Ambassador Scobey.

The building of a steam cracker by EHC, a building block for petrochemical industrial development, will allow the company to develop, build, own and operate a 2.5 million metric ton per annum (MTPA) steam cracker capable of producing 400,000 MTPA of propylene and 900,000 MTPA of ethylene from a naphtha feedstock.

“EHC is pleased to partner once again with USTDA. Earlier this year, an ammonia plant at Egypt Basic Industries Corporation, became operational following the recommendations of a USTDA-funded study. We look forward to similar results from the study for the steam cracker that we are planning to construct,” said El-Baz. EHC has selected Kellogg Brown & Root (KBR) as the U.S. firm that will conduct the steam cracker study.

The second grant awarded today, to the Ministry of Transport, was valued at $658,323 and will be used to evaluate the capability of PTC technologies and systems to improve safety of operations on the Egyptian railways, improve the capacity of the ENR network to operate more traffic over existing infrastructure, and optimize ENR's operations including management of trains and adaptation to contingencies in real-time.

“The recommendations supported by this grant are part of a larger U.S. effort that will help improve rail safety in Egypt by optimizing the safe movement of trains across the rail network, increasing rail capacity and reducing operating costs. This effort will not only make Egypt's rail sector more competitive, but holds the potential to save lives through the reduction of accidents,” said Ambassador Scobey.

The introduction of a PTC system in Egypt builds on the findings of a USTDA-funded study completed earlier this year for the MOT. That study included the design of a national traffic management master plan and recommendations on the creation of an independent railway safety oversight and enforcement authority to monitor compliance with safe operating practices.

Press Release from the U.S. Trade and Development Agency, June 23, 2009Footnote ²⁸

Today, USTDA awarded a grant to Indonesia's Directorate General of Civil Aviation (DGCA) to enhance the safety, security and operational integrity of the country's aviation sector. In order to strengthen DGCA's oversight capabilities, the USTDA grant will fund an assessment of the Directorate's current organizational and operational capabilities and make pragmatic recommendations to reinforce its effectiveness as an independent aviation safety regulator.

Restructuring and strengthening DGCA's regulatory capabilities will foster continued growth in Indonesia's aviation sector and lead to commercial opportunities for the export of U.S. goods and services.

The grant of $341,000 was awarded at a signing ceremony at the Ministry of Transportation in Jakarta. U.S. Ambassador to Indonesia Cameron R. Hume and DGCA Director General Herry Bakti signed the grant agreement on behalf of the U.S. and Indonesian governments, respectively.

“Indonesia's aviation industry is vital to its economic growth,” Ambassador Hume said. “The United States is pleased to partner with DGCA in strengthening Indonesia's aviation sector and promoting safety by improving its regulatory operations.”

To support Indonesia's efforts to meet international standards and develop a strong aviation oversight system, the USTDA grant will fund a review of the DGCA's current operations and make recommendations to strengthen its regulatory authority. The USTDA-funded assistance will include specific recommendations for safety oversight policies and procedures that promote efficient air transportation. The technical assistance will help DGCA make the necessary reforms to overcome current regulatory barriers and enable it to continue working with international partners to pursue priority aviation sector projects.