Representatives from the Millennium Challenge Corporation (MCC), a U.S. government agency, have concluded a series of meetings in Dili to discuss the progress of Timor-Leste's first compact program. This initiative involves a $420 million grant aimed at enhancing wastewater sanitation infrastructure and improving secondary education.
The MCC delegation, led by Vice President of Compact Operations Cameron Alford, met with key figures including President José Ramos-Horta, Finance Minister Santina Viegas Cardoso, and other government officials. Discussions also included interactions with the Millennium Challenge Account - Timor-Leste (MCA-TL) board and representatives from international financial institutions like the World Bank and Asian Development Bank.
“I am thrilled to be back in Dili to discuss our shared efforts to improve the lives of the people of Timor-Leste,” said Mr. Alford. He highlighted MCC's 20-year history of promoting economic growth globally and expressed optimism about the collaboration with Timor-Leste to enhance water infrastructure and educational opportunities.
The Timor-Leste Compact aims to reduce health risks associated with contaminated water by introducing a centralized sanitation network and wastewater treatment system. It will also include a facility for producing water disinfectant, ensuring clean water supply for 429,000 residents in Dili and an additional 64,000 in nearby areas. Additionally, the compact will establish a Center of Excellence for training secondary education teachers, impacting nearly one million people over two decades.
The Government of Timor-Leste has pledged land for these projects along with $64 million to support related infrastructure needs. The total investment for this initiative amounts to $484 million.
This compact builds on previous efforts under a $10.5 million MCC threshold program that focused on anti-corruption measures and improved access to immunization services through enhanced community health systems.
Established in 2004, the Millennium Challenge Corporation provides time-limited grants focusing on infrastructure investments paired with policy reforms in countries demonstrating good governance practices.