Implementing Millennium Challenge Corporation Compacts

The Millennium Challenge Corporation (MCC) is now in the fourth year of implementing some of its compacts of assistance to developing countries to promote economic growth and reduce poverty. According to MCC's establishing legislation, a compact cannot exceed 5 years.

• MCC's pace of implementation has consistently lagged behind projections, and MCC has rescoped several of its compacts due to implementation delays and rising energy, construction, and foreign exchange costs.
  Full Report of GAO-08-1145R (PDF, 54 pages)
• MCC needs to assess what it can successfully complete within the compacts' available time, what the rescoped compacts' effects will be on economic growth and poverty reduction, and how it will oversee compact efforts that are funded within the 5-year window but not completed until afterward.
  Full Report of GAO-08-1145R (PDF, 54 pages)

^ Back to topWhat Needs to Be Done

MCC needs to improve its financial management and project planning practices (GAO-10-52) by (1) improving its country guidance on fiscal accountability plans, and (2) instructing country partners to conclude project planning efforts prior to contract solicitations, and obtain more detailed reviews of cost estimates and designs for large construction projects.

MCC also needs to take actions to improve its assessment and monitoring of compacts, including the following:

• Assess whether statements of expected benefits in Vanuatu and other compact countries accurately reflect the underlying data and analysis; and
  Highlights of GAO-07-909 (PDF)
• Improve its monitoring and evaluation capabilities.
  Highlights of GAO-06-805 (PDF)

^ Back to topKey Reports

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