The implementation of the projects falling within the framework of "the Millennium challenge compact" will allow increase the growth rate by 1.1% and reduce poverty rate by 20% in the targeted regions, by the end of 2012, said Moroccan Prime Minister, Driss Jettou on Friday, Aug 31, 2007.

Speaking at the signing ceremony of the Millennium Challenge Compact by the Millennium Challenge Corporation (MCC) and Morocco, Mr. Jettou noted that this program will help boost the efforts aiming at developing the potential of the regions involved in the project.

MCC's grant reflects anew the "strong and privileged" relations linking Morocco and the United States and illustrates the trust of the U.S in Morocco’s Economy, he added.

Signed by Moroccan minister of Economy and Privatization, Fathallah Oualalou and MCC's CEO, John Danilovitch, under the chairmanship of King Mohammed VI, the Compact seeks to stimulate economic growth by increasing productivity and improving employment in high potential sectors. It is the largest grant MCC has awarded since its creation in 2004.

Five major projects are to be funded by the MCC. This involves fruit-tree growing (USD300.9 Mn), small-scale fisheries (USD116.17 Mn), artisan and Fez medina (USD111.87 Mn), financial services (USD 46.20 Mn), and enterprise support (USD33.85 Mn). The Compact also includes approximately USD 88.5Mn for monitoring, evaluation, program administration and oversight.

For his part, Mr. Danilovitch said that the grant goes well with Morocco’s priorities and efforts in economic development and strengthens the reforms underway in several sectors.

The Millennium Challenge Corporation (MCC), a U.S. government corporation, designed to work with some of the poorest countries in the world, is based on the principle that aid is most effective when it reinforces good governance, economic freedom, and investments in people that promote economic growth and elimination of poverty.

Morocco was announced eligible for the Millennium Challenge Compact assistance in November 2005.