ADVANCING MCA GOALS: THE VISIT OF CEO JOHN

UNCLAS SECTION 01 OF 02 MANAGUA 002222 SIPDIS SIPDIS MCC FOR AKIRSCHENBAUM E.O. 12958: N/A TAGS: EAID EFIN EAGR ETRD ELTN ECON KMCA NU SUBJECT: ADVANCING MCA GOALS: THE VISIT OF CEO JOHN DANILOVICH TO NICARAGUA REF: MCC 487 ¶1. (U) Summary. Millennium Challenge Corporation (MCC) CEO John Danilovich visited Nicaragua September 20-22 to meet with MCC-Nicaragua board members and staff, inaugurate MCC-Nicaragua projects, and participate in the launch of the first Investor Summit for West Nicaragua with President Enrique Bolanos. President Bolanos privately complemented CEO Danilovich on MCC,s bottom-up planning process, calling it the "right way" to build the kind of consensus needed to pursue regional or sector development programs. President Bolanos suggested that another sector of domestic and regional interest that might benefit from this approach was energy and power. CEO Danilovich and the Ambassador ventured into the countryside to visit two rural dairy projects engaged in milk production and collection. On September 20, CEO Danilovich presided over delivery of the first 26 of an expected 43,000 land titles as part of an MCC-sponsored program in the Leon ) Chinandega region. Press coverage of the visit was extensive and positive, emphasizing the balance between MCC's focus on economic growth and poverty reduction, as well as the acceleration in program activity. End Summary. CEO Danilovich Meets President Bolanos -------------- ¶2. (U) In a meeting prior to the investor,s conference, CEO Danilovich informed President Bolanos that an MCC-sponsored program delivered the first 26 of an expected 43,000 land titles in the Leon ) Chinandega region. Minister of Agriculture Mario Salvo explained how MCC projects dealing with milk production and collection fit into his ministry,s efforts to increase production and exports in this sector. CEO Danilovich congratulated President Bolanos for having pushed legislation through the National Assembly to ratify the Millennium Challenge Account (MCA) compact and mandate road maintenance funds, a requirement for MCA road projects. CEO Danilovich informed President Bolanos that the U.S. Congress might soon consider legislation permitting concurrent MCA programs for the same country. President Bolanos complemented the MCC bottom-up planning process as the &right way8 to create consensus for regional or sector programs. He suggested that a sector program of domestic and regional interest that might benefit from this approach was energy and power. Inaugural Investor,s Summit for West Nicaragua -------------- - ¶3. (U) Approximately 60 investors participated in the first &West Nicaragua Investment Summit8 sponsored by MCA-Nicaragua and the GON investment promotion agency, ProNicaragua. The two-day summit drew companies from the United States, Canada, and Latin America. President Bolanos inaugurated the event along with CEO Danilovich and the Ambassador. President Bolanos spoke at length about inheriting a financially broken and corrupt government, and reiterated his administration,s success in reducing debt, increasing reserves (now over 3.5 months of imports), attracting foreign direct investment, and rooting out corruption. Also representing the government were Minister of Trade and Industry Alejandro Arguello, Minister of Agriculture Mario Salvo, Technical Secretary to the Presidency Alvaro Montalvan, Vice Foreign Minister Javier Williams Slate, and ProNicaragua Executive Director Juan Carlos Pereira. Presentations focused on the potential of agribusiness, aquaculture, manufacturing, and tourism in the region in the context of CAFTA-DR. Several participants commented that the turnout was strong, especially in light of the uncertain outcome of presidential elections in November. Land Title Program -------------- ¶4. (U) On September 20, CEO Danilovich and the Ambassador presided over an event in the city of Leon that formally delivered clean land titles to 16 urban and 10 rural beneficiaries. These were the first of an expected 43,000 land titles from MCC,s $26.5 million land title program. Almost half of the beneficiaries were women, prompting speakers to note the importance of gender equity for achieving growth and poverty reduction. In their remarks, CEO Danilovich and the Ambassador emphasized the importance of clean land titles for securing credit, improving land value land, and attracting investment to the region. Site Visits -------------- ¶5. CEO Danilovich and the Ambassador then ventured into the countryside to inaugurate two MCC pilot projects, the first of many such efforts comprising the $33.7 million Rural Business Development component of the MCC Program for Nicaragua. The first site was a dairy farm where MCC provides technical and financial assistance to improve infrastructure, feeding practices, and hygiene associated with milk production, and thus herd productivity and the quality and marketability of milk. Several local associations participated, raising the visibility of the project in neighboring communities. At a second site, CEO Danilovich inaugurated a milk collection facility that will store raw milk for local producers, allowing them to increase the daily yields and providing a location where they can do business with sellers. Future MCC program activities will focus on adding value to products and improving the region,s export capability. MCA/Nicaragua plans to increase the scale of its project activities across several sectors and points in the value chain, i.e., supply of inputs, production, processing, marketing, as well as export services. Conclusion -------------- ¶6. CEO Danilovich,s visit raised the visibility of MCC programs with producers, investors, and the Government of Nicaragua. Press coverage was extensive and positive, emphasizing the balance between MCC's focus on economic growth and poverty reduction, as well as the acceleration in program activity. Events and site visits demonstrated the range of MCC program activities, from providing clean land titles to improving farm productivity and attracting investors. MCC programs in northwest Nicaragua are aimed at enabling the common farmer and rural business owner in Nicaragua to take advantage of access to markets in the Central American region, as well as access to the U.S. market through CAFTA-DR. TRIVELLI