DIRECTORATE OF PRESIDENTIAL COMMUNICATIONS

UNITED REPUBLIC OF TANZANIA

Telephone: 255-22-2114512, 2116898 E-mail: press@ikulu.go.tz Fax: 255-22-2113425

PRESIDENT’S OFFICE, THE STATE HOUSE, P.O. BOX 9120, DAR ES SALAAM. Tanzania.

PRESS RELEASE

The Board of Directors of the USA Millennium Challenge Corporation (MCC), has expressed its willingness to continue supporting Tanzania’s development efforts after noting that this country has met MCC’s fiscal year 2009 eligibility criteria.

The Board pronounced its position in Washington recently after reviewing Tanzania’s policy performance over the last year.

In a letter addressed to President Jakaya Mrisho Kikwete, the MCC Chief Executive Officer (CEO), Ambassador John Danilovich, among other things, says:

“On behalf of the Millennium Challenge Corporation (MCC), I am pleased to notify you that the Board of Directors (Board) recently reviewed Tanzania’s policy performance and it was noted that Tanzania meets MCC’s policy year 2009 eligibility criteria.” The letter is dated December 29 of last year.

As a standard, MCC requires partner countries to maintain and seek to improve policy performance annually.

While MCC’s Board no longer selects countries as eligible on an annual basis during the term of the Compact, MCC continues to monitor and evaluate policy performance of compact partners throughout the year and annually during the selection meeting.

Tanzania qualified for the award of the MCC Compact in 2007 and during his four-day historic visit to Tanzania in February, last year, outgoing US President George W. Bush and President Kikwete signed the agreement to that effect, at a colourful ceremony at the State House in Dar es Salaam..

Under the Compact, the US Government will grant Tanzania close to US dollars 700 million which will mainly go into major infrastructural projects.

In his letter, Ambassador Danilovich encourages Tanzania to improve its policy performance and reform, which is vital in reducing poverty and stimulating economic growth.

He emphasizes that the improved policy performance is vital for Tanzania’s prospects of qualifying for a second Compact in future years.

“I encourage your government to continue to pursue efforts to maintain and improve its policy performance and continue to meet MCC’s indicator criteria,” says Ambassador Danilovich in his letter to President Kiwete.

“The ongoing reform is vital to your government’s efforts to reduce poverty and stimulate economic growth, and meeting the indicator criteria is essential for your government’s prospects for qualifying for a second Compact in future years,” says Ambassador Danilovich, adding:

“MCC and its partners all across the US Government stand ready to support your government’s continued reform efforts. We at MCC look forward to continuing our partnership and our mutual investment in the future of Tanzania.”

Directorate of Presidential Communication,

State House,

DAR ES SALAAM.

15^th January, 2009