BENIN'S MILLENNIUM CHALLENGE ACCOUNT COMPACT EBNTERS INTO

UNCLAS COTONOU 000989 SIPDIS SIPDIS E.O. 12958: N/A TAGS: EAID KMCA ECON PREL KCOR BN SUBJECT: BENIN'S MILLENNIUM CHALLENGE ACCOUNT COMPACT EBNTERS INTO FORCE REF: STATE 160008 //SUMMARY// ¶1. President Yayi hosted a major ceremony to mark entry into force of Benin's Millennium Challenge Compact. The compact will focus on four major activities: the port, land tenure, financial reform, and improvements to commercial dispute resolution. In his remarks, Yayi particularly stressed the need for Benin to do better in fighting corruption. END SUMMARY. //GALA KICK-OFF FOR A HUGE PROGRAM// ¶2. On Monday, 9 October 2006 President Boni Yayi, Foreign Minister Mariam Aladji Diallo, and the Charge presided over a ceremony at the Presidential Palace celebrating the Entry into Force of Benin's US $307M Millennium Challenge Account (MCA) program. Since signature of the MCA Compact in Washington on February 22, 2006, the MCA team has been working hard to complete a slew of necessary documents and work plans. Entry into Force (which officially occurred on 6 October 2006) was made possible by the completion and signing of the final supplemental agreements required by the Millennium Challenge Corporation, among them the procurement agreement, term sheet, bank agreement, several certificates, and other documents. The five-year program has now officially begun and MCA can begin disbursing for program activities. ¶3. At the ceremony, National Coordinator for the GoB's MCA team Simon Pierre Adovelande, gave a brief audiovisual presentation detailing the design and expectations of the five year program and discussed the program's four primary components: Access to Land, Access to Justice, Access to Markets, and Access to Financial Services, discussed the monitoring and evaluation component and the implementation targets to be achieved over the course of the program. The ceremony was well attended, with well over 150 invitees representing all the branches of the Beninese government, members of civil society, the diplomatic community, and members of the press. //A COMMITMENT TO IMPROVE ANTI-CORRUPTION EFFORTS// ¶4. President Yayi thanked the United States government, President Bush, and the American people for their confidence in Benin and for supporting a program that mirrors his own administration's goals for reducing poverty in Benin. He expressed his desire to make his administration a model of good governance and transparent stewardship of this rare opportunity provided by the American taxpayers, and exhorted his government, the Board of Directors of the MCA, and the Consultative Council to the Board, to remain professional, rigorous, and diligent in their management of the program. ¶5. President Yayi noted specifically that the indicators that measure corruption in Benin have worsened noticeably over the past few years, reducing investor confidence in Benin. (COMMENT: Yayi was clearly referring to the FY07 MCC indicators, which the Embassy delivered to the GoB on October 4, and which show a dip in Benin's performance on "control of corruption" during 2005. END COMMENT.) Yayi said his government has taken rigorous steps to reverse the tendency with regard to corruption, and invited his government to use the MCA program as an example for the transparent use of resources. ¶6. The event received excellent press coverage, with lengthy articles detailing the MCA program and the ceremony itself in 4 major newspapers, 2 television news reports, and widespread radio coverage over the course of two days. HOLTZAPPLE