"The Government of Mozambique is committed to do its best for the MCC success", said the minister.
Cuereneia was speaking during a ceremony that marked the official launching of the MCC in Mozambique, under which the US government will disburse 506,9 million USD over the next five years, to fund projects for the reduction of poverty, particularly in the water supply and sanitation, transportation and agriculture in the country.
MCC, which manages the Millennium Challenge (MCA) grants, in June 13, 2007, listed Mozambique in a group of African countries benefiting of an additional U.S. aid. This is recognition of good Mozambique's policies to promote economic growth, poverty reduction, political and economic freedom, investments in education and health, control of corruption, respect for human rights, among others.
The program is expected to increase regional GDP across the northern Cabo Delgado, Nampula and the central Zambezia provinces - by nearly 75 million USD in 2015 and 180 million USD in 2025 and lift more than 270,000 people out of poverty by 2015, and 440,000 others by 2025.
Budgeted at 203.6 million USD, the water supply and sanitation project is the largest component of the compact, and will increase the access to safe, reliable water supply and sanitation services, thereby increasing productivity and reducing water borne diseases-one of the leading causes of death among children under five.
The transportat sector, that will benefit from an investment of 176,3 million USD, is meant to improve access to markets, resources and services, reduce transport costs for the private sector to facilitate investment and commercial traffic, expand the connectivity across the northern region and down towards the southern half of the country. This includes the rehabilitation of 491 kilometers of the main high way (EN1) that links the North to the South of Mozambique.
As for the land tenure services project, MCC is expected to allocate 39.1 million USD to establish more efficient and secure access to land by improving the policy framework, upgrading land information systems and services, and helping beneficiaries meet immediate needs for registered land rights and better access to land for investment.
Coconut Lethal Yellowing Disease (CLYD) is also covered in the MCC, under the farmer income support project, for which the 17.4 million USD have been granted.
Currently, CLYD threatens the livelihoods of over 1.7 million people in the provinces of Zambezia and Nampula, and it is feared that under the present rate of spread more than 50 per cent of the coconut area could be lost over the next nine years. To mitigate the situation, affected trees must be removed and replaced.
The minister said that the election of Mozambique to benefit from these projects shows that the US government is willing to support the efforts of the government in the fight against poverty and is also a recognition of the remarkable progress made by the country over the last decade.
"The fight against poverty is the main goal of our government. A feedback of an assessment of the level of implementation of our strategic plans shows that we have achieved positive results", stressed Cuereneia.
He added that "the establishment of the MCC mission in Mozambique is a clear indication of the Millennium Challenge Account in keeping its partnership with the Mozambican government in the implementation of the MCC programme".
Cuereneia cited as an example that the country's total production increased by 8.8 per cent during the first six months of this year, with the agriculture, construction, trade, transports and communications sectors being the major contributors.
The efforts to keep the inflation rate down to one digit, coupled with macroeconomic stability, are other gains mentioned by the minister.
Finances Minister Manuel Chang, and Public Works and housing Minister Felicio Zacarias, and other senior members of the Mozambican government and the private sector attended the ceremony.
SOURCE: AIM
