Georgian Prime Minister and MCC CEO Sign
$100 Million Grant for Development Projects

On November 20, Georgian Prime Minister Grigol Mgaloblishvili and Millennium Challenge Corporation (MCC) CEO Ambassador John Danilovich signed an amendment granting an additional $100 million in U.S. Government development assistance to Georgia's $295 million MCC Compact. The Compact Amendment signatories, US Ambassador to Georgia John F. Tefft, Georgian Minister of Finance Nika Gilauri and MCG CEO George Abdushelishvili delivered the speeches at the event.

The additional funding will complement the ongoing $295,3 million compact between MCC and Georgia and focus on Georgia's road network, infrastructure development and energy activities. Among others additional funding permits rehabilitation of three more sections of the road, connecting the Samtskhe-Javakheti region to Turkey and Central Georgia; full completion of three previously municipal approved projects and prepare comprehensive economic, geological and environmental study, technical design and public/private financing plan for the gas storage facility and related infrastructure.

As Georgian Prime Minister Mgaloblishvili stated at the signing ceremony, "The United States of America has been always supporting the free world and today we witness its support to Georgia. The Georgian Government is addressing its problems by liberalizing economy, and creating and strengthening new institutions". "Today's signing ceremony is one more step forward that clearly indications that the US is standing next to our country, not simply because we have common interests, but because we share common values", added Mr. Mgaloblishvili.

"The millions of Georgians will benefit in meaningful and tangible ways from this additional investment in Georgia's long-term economic development. This increased cooperation represents new opportunities, new jobs, new technologies, expanded productivity, and increased access to markets where goods can be traded. Georgians will be able to tap into water sources and heat sources for their homes and businesses" said MCC CEO John Danilovich. "A new day of hope and growth is dawning, and I am pleased that the collaboration and partnership between MCC and the people of Georgia can make this prosperous future a reality", Ambassador Danilovich added.

Since April 2006, MCG - the Georgian entity designated by the Government of Georgia, has been implementing agribusiness, regional development, municipal infrastructure, road and energy projects funded by the MCC compact. All five projects are in active phase of implementation: construction works are ongoing on Samtskhe-Javakheti strategic road, Poti and Kutaisi water supply system rehabilitation is underway; first phase of the North-South gas main pipeline rehabilitation was successfully completed and the second phase works are now in progress; three big investments were made to support SME development and 113 farmers were awarded grants resulting in about 1600 new jobs in the regions of Georgia.


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Additional Information

- Program Activity Map (as of November 2008)
- Program Factsheet
- Source: Millennium Challenge Corporation

About MCG: To implement the Millennium Challenge Compact, Government of Georgia established Millennium Challenge Georgia Fund. The $ 395.3 million-worth Program is a US-Government grant and is implemented according to the priorities of Georgian Government. The grant is intended for Infrastructure Rehabilitation and Enterprise Development in the regions of Georgia. For additional information, please visit: www.mcg.ge
 
About MCC: The Millennium Challenge Corporation (MCC) is a United States Government corporation. MCC is based on the principle that aid is most effective when it reinforces good governance, economic freedom and investments in people. For additional information please visit: www.mcc.gov