OREANDA-NEWS. November 25, 2008. U.S. Millennium Challenge Corporation (MCC) Vice President for Compact Development John Hewko and Moldovan Prime Minister Zinaida Greceanii signed a Memorandum of Understanding (MOU) to launch the next step of the Compact process: feasibility studies worth US11.9 million to assess the condition of some Moldovan roads and irrigation proposals.

U.S. Ambassador Asif Chaudhry signed as a witness to this U.S. Government commitment to reduce poverty in Moldova through economic growth. In his remarks during the signing, Ambassador Chaudhry said the Memorandum represented a "significant milestone" in the development of a Compact agreement with Chisinau and a sign of U.S. commitment to its partnership with Moldova.

In discussions with the MCC, and to ensure that any projects would lead to a long-term decrease in poverty, Moldova proposed to use Compact funding for the rehabilitation of nearly 600 kilometers of the country’s national road network, including two road segments through the Transnistria region, the rehabilitation of multiple centralized irrigation systems, the provision of credit to farmers for small-scale irrigation and post-harvest investments and related training activities.

Prior to the signing of the MOU, John Hewko and Prime Minister Greceanii held discussions to refine projects included in the proposed Compact. The MOU states that the government of Moldova and MCC intend to conduct feasibility studies, environmental impact assessments, and other analyses to determine how best to design and proceed with the proposed road rehabilitation and agricultural projects.