VZCZCXRO2944
RR RUEHPA
DE RUEHPA #0074/01 0431855
ZNR UUUUU ZZH
R 121855Z FEB 10
FM AMEMBASSY PRAIA
TO RUEHC/SECSTATE WASHDC 1947
INFO /MCC COLLECTIVE
RUEHC/USAID WASHDC
RUEHPA/AMEMBASSY PRAIA 2928

UNCLAS SECTION 01 OF 02 PRAIA 000074 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: OVIP EAID PREL EFIN CV
SUBJECT: MCC CEO VISIT HIGHLIGHTS FIRST COMPACT SUCCESS AND LOOKS 
TOWARD SECOND COMPACT 
 
Summary 
 
 
 
¶1. (U) Millennium Challenge Corporation (MCC) CEO Daniel 
Yohannes' visit to Cape Verde last week reviewed the tangible 
accomplishments  of the 2005-2010 MCC Compact with Cape Verde 
and set the groundwork for the preparation of a second Compact 
for FY 2011-2016.  As Yohannes met with the Cape Verdean 
Government, civil society, business leaders, and project 
managers, he congratulated Cape Verde for remaining on track to 
complete the first MCC Compact in the world and urged 
interlocutors to remain on schedule.  Cape Verdean partners are 
considering several options for the second Compact proposal and 
Yohannes had the opportunity to participate in those early 
discussions.  He also learned about promising areas for future 
engagement, including the possible contribution by the Cape 
Verdean diaspora in the United States.   End summary. 
 
 
 
Reviewing the First Compact's Successes 
 
 
 
¶2. (U) MCC CEO Daniel Yohannes, Deputy Vice President Jonathan 
Bloom and the Washington delegation visited Cape Verde on 
February 3-5 as part of Yohannes' first field visit since he 
began his position.  He traveled to two major MCC infrastructure 
projects - two completed roads to interior city of Assomada on 
Santiago Island and the works underway of the port of Praia.  He 
reviewed the results of the e-government system and observed the 
first Compact's positive influence on local schools in Cha de 
Tanque and neighboring rural communities on Santiago.  All major 
local press outlets covered his visit, including his statement 
upon arrival and the joint press conference with Cape Verdean 
Prime Minister Neves.  Cape Verde's MCC counterpart, MCA, 
briefed the delegation on how the infrastructure projects 
directly contributed to Cape Verde's development.  Yohannes also 
discussed the final details of closing out the MCC project later 
this year with GOCV officials.  He urged Cape Verdean officials 
to continue to build on the strong democratic and financial 
foundations that have been the country's recipe for success. 
Both sides are confident that the three-pronged development of 
roads, ports, and agriculture will conclude on time and within 
budget in October this year. 
 
 
 
Looking Towards Second Compact 
 
 
 
¶3. (SBU) Yohannes' arrival coincided with the early planning 
meetings for a second Compact development process in Cape Verde 
and helped encourage broad involvement by civil society, private 
sector, municipal officials, and GOCV officials.  Despite rumors 
circulating on the overall value of the second Compact, Yohannes 
focused on the pre-requisites for qualification, timing, and 
potential areas of cooperation in his discussions.  In private, 
he told Finance Minister Cristina Duarte and Foreign Minister 
Jose Brito that a second Compact was unlikely to surpass the 
$110 million total of the first Compact and the ministers 
recognized the financial limitations facing both governments 
this year. 
 
 
 
¶4. (U) Turning to specifics, Yohannes encouraged Cape Verdean 
officials to establish a Compact focused on new areas which will 
bolster Cape Verde's development over the next decade.  In a 
separate lunch meeting, Yohannes met with entrepreneurs from 
several potential second Compact industries, including the 
telecommunications, renewable energy, transportation, and 
construction sectors.  These discussions allowed the delegation 
to gauge development and private sector partnership 
opportunities.  The strongest contenders appeared to be 
renewable energy business and agribusinesses, which proposed the 
cultivation of fruits and vegetables in place of traditional 
subsistence farming.  The Cape Verdean government plans to 
submit a proposal in the coming months for approval sometime in 
FY2011. 
 
 
 
¶5. (SBU) Comment: The successful visit reinforced the message 
that Cape Verde has done an impressive job of staying on track 
as it pioneers the MCC Compact completion phase.  Government and 
private sector partners are justifiably proud of their 
accomplishments over the past five years and hope to repeat the 
 
PRAIA 00000074  002 OF 002 
 
 
successful work in a second Compact.  As we get closer to 
negotiating the second Compact, managing public expectations 
about its scope and focus will likely become more challenging. 
Nonetheless, for now our partners remain pleased with the visit 
and Cape Verde's progression towards the second Compact.  End 
comment. 
BROWN