MCC Board Approves $202 Million Grant to Improve Kosovo’s Energy Sector

WASHINGTON  — The Millennium Challenge Corporation’s (MCC) Board of Directors held its quarterly meeting today and voted unanimously to approve a $202 million compact with the Government of the Republic of Kosovo — a 5-year grant program that promotes sustainable, inclusive economic growth.

“Today’s Board decision represents the next phase in the United States’ partnership with the Government of Kosovo and the continuation of our joint efforts to build a better future for nearly 2 million Kosovars,” said MCC Chief Executive Officer Alice Albright. “The energy compact under development builds on MCC’s ongoing threshold program in Kosovo, maintaining a focus on an ambitious and forward leaning policy and institutional reform agenda, while investing in innovative energy infrastructure, including battery storage to increase efficiency and enhance energy security, facilitate a transition to and the integration of renewable energy into the country’s energy mix, and provide a pathway to employment for the youth and women in the energy sector.”

The Kosovo Compact includes an Energy Storage project and a Just and Equitable Transition Acceleration project. In addition, the compact seeks to promote additional private-sector investments in Kosovo’s energy sector through the American Catalyst Facility for Development project to be conducted in collaboration with the U.S. International Development Finance Corporation.

The Board also discussed the agency’s ongoing compact development with the Government of Malawi. The potential compact aims to alleviate economic constraints in the agriculture and land sectors with a focus on rural road transportation, land efficiency, and facilitating private sector investments.

Additionally, the Board received an update on MCC@20, the agency’s vision for its next 20 years. Building on the impact and learning from its first 18 years, MCC is exploring innovative ways to better address both current and future development issues, including considering a broader range of candidate countries.

The Millennium Challenge Corporation is an independent U.S. government agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants and assistance to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights.