OREANDA-NEWS. January 27, 2010. The Moldovan government and the U.S. Millennium Challenge Corporation signed in Washington an agreement on allocation to the republic a grant in the amount of US262 million for the investment projects on reconstruction and modernization of roads and installation of irrigation systems in agriculture within the frameworks of the Compact Program.

As the press service of the Moldovan government has informed, the document in the U.S. State Department was signed by the Deputy Premier, the Minister of Foreign Affairs and European Integration of Moldova Iurie Leanca and CEO of the Millennium Challenge Corporation Daniel Johannes in presence of the Prime Minister of Moldova Vladimir Filat and the U.S. State Secretary Hilary Clinton. According to the document, this donation will be received by Moldova within 5 years.

At the same time, US 133 million of the total grant amount are provided for reconstruction and modernization of roads, in particular, to repair 93 km of one of the main highways in the north-east of Moldova. Approximately US 102 million will be used for installation of 11 modern centralized irrigation systems in agriculture in the basins of the Dniester and Prut, for opening credit lines to farmers in the post-harvest period for the processing, storage and sale of products.

This component of the Compact program should increase incomes of the Moldovan population engaged in agriculture by promoting productivity and improved methods of sale of agricultural products with high value added. The remaining funds allocated within the U.S. grant will be used to monitor and assess the impact of the program, its administration and audit.

As Daniel Johannes has stated, through the Compact program "Millennium Challenge Corporation” intends to deepen partnership with the citizens of Moldova, aimed at supporting sustainable economic growth. In her turn, Hillary Clinton noted that this agreement signifies a new chapter in relations between Moldova and the United States. According to her, to be eligible to sign this agreement Moldova has made a great progress and held a number of reforms.

U.S. State Secretary stressed that Obama’s administration is willing to establish a strong partnership with Moldova and signing of the Compact agreement is a victory of the Moldovan government. In his turn, the Moldovan Prime Minister Vladimir Filat said that signing of the document is a historic event for republic, noting that main priorities of the current Moldovan authorities are to build a legal state, establish functional economy and promote European integration. Moldova's Prime Minister thanked the USA for its continued support of the republic, providing effective and important assistance. "Millennium Challenge” program was established by the U.S. Congress in 2004 on the initiative of George Bush Jr. and provides a substantial financial assistance for economic development of the low-income countries.

Moldova was among the countries admitted to the full funding of U.S. Millennium Challenge Corporation in 2007 alongside with the Ukraine and Jordan, which joined 22 countries already receiving aid for development. Previously Millennium Challenge Corporation has provided Moldova with a grant of US 24.7 million to combat corruption.