Horta and MCC’s President discuss implementation of MCC’s US$420 million compact in TL

Horta and MCC’s President discuss implementation of MCC’s US$420 million compact in TL

The President of the Republic, José Ramos Horta

DILI, 21 september 2023 (TATOLI) – The President of the Republic, José Ramos Horta, held a bilateral meeting with the President of the Millennium Challenge Corporation (MCC), Alice Albright to discuss the implementation of the MCC’s US$420 million compact in Timor-Leste. 

The meeting took place at the Harvard Club Hotel, New York, on the occasion of President Horta’s participation in the 78th Session of the United Nations General Assembly (UNGA), which took place from September 17 to 24, 2023.

During the meeting, President Ramos-Horta and Albright discussed the importance of the MCC’s US$420 million compact to the people of Timor-Leste. 

The compact was designed to support Timor-Leste’s development priorities, including improving infrastructure, strengthening governance, and promoting economic growth.

In December 2022, the former Minister of the Presidency of the Council of Ministers, Fidelis Manuel Leite Magalhães, signed the Program Implementation Agreement (PIA) with the Millennium Challenge Corporation (MCC) for the implementation of the Compact Agreement for Water Supply, Sanitation, and Drainage Programs and Education. 

President Ramos-Horta expressed his appreciation for MCC’s support and reinforced Timor-Leste’s commitment to implementing the compact. 

Albright congratulated Timor-Leste on its progress in implementing the compact and expressed her confidence that Timor-Leste will continue to achieve its development objectives.

The signing of the implementation agreement represented an important step towards the beginning of the implementation of the MCC Compact, with a global amount of 484 million, which consists of US$ 420 million made available by the MCC, together with US$64 million contribution made available by the Government of Timor-Leste. This program is to be implemented over five years. 

The water, sanitation, and drainage component aims to reduce the contamination of drinking water and groundwater, which can cause diseases and impede the well-being and health of children and adults. The project includes the construction of a factory to produce chemical disinfectants for the city’s water supply, construction of the country’s first central wastewater system, improvement of the drainage network for the capital Dili and four neighboring municipalities, policy and institutional reforms as well as social and behavioral changes to improve the sanitation system and water management at the household level.

The water, sanitation, and drainage project, besides its direct impact on the health of Timorese citizens, will also contribute to reducing the risk of flooding, which has affected Timor-Leste so much in recent years, avoiding its environmental and socio-economic impacts by ensuring sustainable management of water and sanitation.

The education component aims to improve the quality of high school education for students by improving high school education and school leadership across the country. The project will establish the country’s first formal initial teacher training certification institution, the Centre of Excellence, which will offer professional training and certification for future and current high school teachers and leaders. Investing in teacher training will lead to better high schools, with students who will be better prepared for jobs or post-high school education, and thus improve their ability to contribute to the economic growth of the country.


Journalist: Filomeno Martins 

Editor: Nelia Borges


Leave a Reply

error: Content is protected !!