DILI (TOP) – The United States through the Millennium Challenge Corporation - MCC has signed the new $420 million compact to improve education and clean water in Timor-Leste.
According to a press release accessed by The Oe-Kusi Post (TOP) that, the signing process was between the Acting Vice President of Compact Operations at the Millennium Challenge Corporation or MCC, Cameron Alford and Minister of the Presidency of the Council of Ministers, Fidelis Magalhães in the Ministry of Foreign Affairs and Cooperation room on Tuesday 19 July 2022.
The compact will provide transformational investments in Timor-Leste’s water and education sectors to improve the health and skills of the Timorese population and contribute to Timor-Leste’s continued development and prosperity. The compact is a sign of U.S. commitment to strengthening our enduring partnership in the years ahead.
The project will supply disinfected water to nearly 500,000 people living in and around Dili. MCC’s infrastructure investment will introduce Timor-Leste’s first centralized sanitation and wastewater treatment system, improve drainage, and supply clean drinking water for Dili and four nearby municipalities. The project is designed to be inclusive and climate-resilient to maximize impact and reduce water-borne diseases while complementing other government and donor investments in Dili’s water and sanitation system.
Acting Vice President of Compact Operations at the Millennium Challenge Corporation, or MCC, Cameron Alford said, MCC is an innovative and independent U.S. foreign assistance agency that is helping lead the fight against global poverty. Since 2004, MCC has partnered with 49 countries around the world, investing roughly $15 billion in programs to boost economic growth and reduce poverty. Those investments are expected to benefit nearly 215 million people.
“Today, I am delighted to be here to mark an important milestone in the relationship between the United States and Timor-Leste with the signing of the $420 million Timor-Leste Compact,” Cameron stated in his written speech.
He added that, this investment represents the largest U.S. development contribution in the history of our 20-year bilateral relationship and is a sign of our continued commitment to Timor-Leste.
“With this partnership, the United States — through MCC — and Timor-Leste have seized a wonderful opportunity to make a positive impact on the lives of the Timorese people.”
He explained, the compact builds on MCC’s 2010 threshold program with Timor-Leste, which strengthened anti-corruption efforts and improved access to immunization services through the creation of a more effective community health system.
Through transformational investments in the country’s water and education sectors, this compact will improve the health and skills of the Timorese population and contribute to Timor-Leste’s continued development and future prosperity.
As the world responds to an ever-increasing number of challenges, including a global climate crisis, water security has become ever more important. MCC will target $308 million in grant funding to water treatment, sanitation, and drainage infrastructure to tackle a significant health problem in the country — diseases brought on by contaminated water.
“Another $40 million of MCC’s grant will go towards boosting the quality of teaching and school leadership, we are further professionalizing high-school level teaching and reaching every secondary school in Timor-Leste.”
In addition, the government of Timor-Leste is contributing $64 million towards water, sanitation, and drainage infrastructure, including household-level connections for new systems, to ensure these benefits are brought directly into the homes of Dili citizens.
This compact was developed in close partnership with the Timorese government, who led in this effort and in consultation with civil society and the private sector.
“With a combined investment of $484 million, this compact is expected to benefit nearly one million Timorese.”
This day has been years in the making. Today we celebrate all that has gone into designing these transformational investments. I would like to thank the members of the Compact Development Team and the team at MCC for their work, as well as the many representatives from the government of Timor-Leste who have played an integral role in designing what I am sure will be a successful compact.
The United States is proud to partner with Timor-Leste to advance our mutual commitment to reducing poverty and building inclusive and sustainable economic growth for the country’s people.
“I look forward to working with all of you to ensure this compact delivers on its enormous potential to give the Timorese people the tools to build a healthier, more prosperous future.”
Meanwhile, from the Timor-Leste government that, the investment will focus on two main projects, one for the improvement of the water, sanitation and drainage system and the other in the area of education and training. The first includes water treatment, sewage, drainage systems, the strengthening of institutions and regulatory bodies, and the creation of a solid supply of water and sewage for domestic use. The second will include a New Centre of Excellence for the training of new teachers that will ensure quality standards and leadership.
Of an estimated total of US$ 484 million, US$ 420 million will be provided by the MCC and the government of Timor-Leste will contribute US$ 64 million. The amount to be provided by Timor-Leste will be allocated only to the water, sewage and drainage treatment project, of which US$ 34 million will be used to connect households and decommission the existing septic tanks. The remaining US$ 30 million will be used to support the installation of the conventional system and the installation of water pumps.
The MCC Board of Directors selected Timor-Leste in December 2017 as eligible for the implementation of an economic growth promotion programme aligned with national development priorities.
On July 21st, 2018, Minister Fidelis Magalhães and MCC Deputy Vice President Jonathan Brooks signed an initial funding agreement, worth US$ 750,000 for the creation of a team, embedded in the Millennium Challenge Compact programme, with the mission to identify economic sectors to be developed during the implementation of the programme.
The government of Timor-Leste Compact Development Team (CDT-TL) was officially established on March 25th, 2019 and is led by Ambassador Constâncio Pinto.
From April 11th to 17th, 2022, Minister Fidelis Magalhães led a high-level delegation, comprising 14 representatives from various government entities, which travelled to Washington, United States of America (USA), for the negotiations of the compact agreement with the MCC.
