VZCZCXRO3057
RR RUEHLMC
DE RUEHMU #2222/01 2792324
ZNR UUUUU ZZH
R 062324Z OCT 06
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 7819
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHDC

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