Newsletter Number 3 - May 2008

 

The Millennium Challenge Corporation – MCC- is an innovative independent agency of the United States Government that work’s with some of the world’s poorest countries. The Congress of the United States, with strong bipartisan support, established MCC in January 2004 to reduce global poverty through sustainable economic growth. MCC manages the Millennium Challenge Account (MCA), which is funded exclusively by Congress.

 

Currently, MCC is working with seven countries in Latin America and has signed compacts with the following Latin-American countries: El Salvador, Honduras and Nicaragua for an overall amount of $791 million. Also, MCC has signed threshold agreements with Guyana and Paraguay amounting to $41 million. Likewise, it is important to point out that Bolivia and Peru are eligible for a threshold agreement.

 

FOMILENIO: Announcement of investment opportunities

From left to right: Alfonso Salazar, the Director of Implementation of FOMILENIO; Larry W. Walther, Trade and Development Agency Director of the United States (USTDA as it stands for in English);  Ambassador Margarita Escobar, Vice Ministry of Foreign Affairs of El Salvador; Ambassador John Danilovich, MCC president; Sandra de Barraza, National Commissioner for the Development and John Simon, Vice- Executive Director of Overseas Private Corporation Investment Corporation (OPCIC as it stands for in English).

At the end of April, the director of Millennium Challenge Corporation (MCC as it stands for English), the Ambassador John J. Danilovic, Director of Implementation at the Millennium Funds of El Salvador (FOMILENIO), Alfonso Salazar as well as the Vice Ministry of Foreign Affairs of El Salvador Ambassador  Margarita Escobar visited Los Angeles, California to announce the progress made in El Salvador achieved by executing the MCC Agreement for an amount of US$461 millions and all the investment opportunities that this project is generating for the Salvadoran people.

 

 

 

“We are deeply moved to see the Salvadoran diasporas by taking advantage of these opportunities to invest in their home country and generate hundred jobs and something more which even more important, to bring into hopes for the poor people who live in the North Area of El Salvador”.

Ambassador John Danilovich, MCC president

MCC president, Ambassador John J. Danilovich, stated before the business community from El Salvador his satisfaction for the very meaningful progress El Salvador is making in the efficient and transparent carrying out the Millennium Funds, as well as the engagement that have shown both FOMILENIO officers as well as the Government of El Salvador through the entities that are in charge of the projects execution.

 

On her behalf, Mrs. Ambassador Margarita Escobar, commented the FOMILENIO intervention is an already reality, so that the North Area of El Salvador is glimpsed as a “unique opportunity of investment, participation and development that will allow the growth of a new business class that will be in the hands of the area residents and this contributes to the local development and makes possible the integration of this territory into the dynamic of the national growth”.

 

Alfonso Salazar, Director of Implementation at FOMILENIO, informed the meaningful progress this institution has made along the human and productive development as well as connectivity projects which are aimed to speed up the execution of the Grants Agreement. FOMILENIO has started the execution of education, drinking water and sanitation, communitarian infrastructure, rural electrification, photovoltaic systems, connectivity projects as well as technical assistance for productive projects for over US$25 millions of dollars for the year of 2008.

 

The visit to Los Angeles is framed under an effort of information release addressed to the Salvadoran people abroad as potential partners of the projects that FOMILENIO drives forward. 150 Salvadoran resident business people attended the meeting In March of this year. A similar event was carried out in Washington, DC, where around 100 Salvadoran business people participated. They were interested in investing in the North Area of El Salvador.

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¡For the competitiveness of the agro-industrial sector!

A more competitive agro-industry over innovation,
quality and product innocuousness

A woman preparing milk candies in the Enterprise named “Dulces Noemi” in San Juan de Flores, Francisco Morazán.

There are already 30 agro industrial enterprises that will be benefitted with the Added-Value Project from the Millennium Challenge Account - Honduras.

 

There are already 30 agro industrial enterprises that will be benefitted with the Added-Value Project from the Millennium Challenge Account - Honduras.

 

 

 

Banana little slices packing at the enterprise named “Nueva Esperanza” in Danlí, El Paraíso

They are located throughout the length and breadth of the country and cover the western, north central- eastern areas of the country. They are supported in the most prompt and dynamic processes and procedures that guarantee their competitiveness under the framework of globalization.

 

The objective of this project is to increase the income sustainably of micro, small and medium agro industrial processors from Honduras, which in turn, will contribute to the economic growth of the country.

 

The Challenge Millennium Account - Honduras will support a total of 60 micro small and medium enterprises (MSME) and around 500 people by improving their net income so their standard of living at the time they offer quality products to national and international consumers.

 

The items that the project will cover includes the production of typical candies, banana little slides, drinks, bread, fruit and vegetable based- production, grains and seeds, dairy and meat products, coffee, cocoa, among others.  

 

 

“The enterprise life is a pyramid. At this moment, I am in the middle of it, but with the support provided by the project, I will get to the top”’

Otto Luis Tercero,

Added- Value Project beneficiary 

 

“The added-value is part of the social commitment of Zamorano through the educating mission”.

Kenneth Hoadley,

Dean, Zamorano, 2008

Each of the enterprises will be benefitted with the improvement of their products, the development of guides for innocuousness and quality systems, the standardization of processes as well as the development of chemical standards.

 

The Added- Value mission is completed by looking forward the participation of more than 50% of women as direct beneficiary. In this way, in equal terms, the Millennium Challenge Account - Honduras and the Pan-American School of Agriculture Zamorano as the implementer agent, support the competitiveness of the agro-industrial sector of Honduras.

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Producers from the Western Area of
Nicaragua with a better future

They produce quality products, have a better yield and get more profits

Mr. Diego Antonio Treminio Niño, producer of sesame who Works in an Alliance with MCA-N.
 

MCA Support

 

MCA Nicaragua works in an alliance with 173 sesame producers, distributed in 128 producers under the modality of conventional sesame and 45 producers of organic sesame.

 

They have been given support with technical assistance, training, monitoring, cultivation, follow-up, yield, business rounds, agricultural inputs, organic certification, processing and trading. With this support, the producers have reproduced their profits, improve their productive yield and improved the quality.

 

To date, it was possible to trade a total of 7, 509 quintals of conventional sesame, with 340 producers from Chinandega and León, which generated an income of U$428 thousand dollars with an average price among $57 per quintal.

 

About organic sesame, around 700 quintals were sold at a selling price of U$100 dollars per quintal, which generated an income of around $70 thousand dollars. The preference for organic sesame unlike the conventional sesame is due to the consumption of healthier and free of pesticide residues food.

 

The main markets of sesame consumption are the countries such as Japan, USA, Canada and some Nordic countries.

At some 300 kilometers from the village of Malpaisillo, in the municipality of León, the producer lives Diego Antonio Treminio Niño, 46-years old. In his farm which is located in the community of El Espino, he produces corn, sorghum and sesame.

 

This latest cultivation gave him good profit in the crop 2007-2008. With it, he bought calved cows which increased his cattle herd and purchased ten manzanas (≈17 acres) of land.

 

“Thanks to the assistance provided by the Millennium Challenge Account we could increase the yield up to 50% and I had a profit we have ever had, of around US$3, 63”, said the producer Mr. Treminio who will sow ten manzanas more in the productive cycle of this year.

 

The cows are producing more milk, which he sells in the village. He will use the ten manzanas of land to expand the areas of sesame in the productive cycle of this year.

 

For the period 2007-2008, he sowed nine manzanas of land. Five out of them were done with the support provided by MCA and the four left with his own effort. His yield passed from eight to fourteen or fifteen quintals per manzana with the technical assistance given by the Program.

 

Even though he only could study the fourth grade of primary school given the difficult situation where he grew up, he expects that his three children finish their professional career. One of them is in the second year of civil engineer and his two daughters are in second and fourth grade of high school respectively.

 

“I did not have the chance to study, but I was always a peasant who liked learning and experiencing new production techniques. For the first time, I took control or traceability of harvest. We apply fertilizers and trade in groups, which strengthened us at the time of negotiating. We hope to get good yield again with sesame and be able to help my family even more” he said. His goal with this new productive cycle of 2008-2009 is to buy a truck, set up a business and acquire more cows to continue increasing his milk production.

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Millenium Challenge Corporation MCA Nicaragua MCA Honduras MCA El Salvador

Edición y Diseño: Dirección de Comunicaciones de MCA - Nicaragua

Redacción: MCA - Honduras, MCA - El Salvador y MCA - Nicaragua