MCC compact before Cabinet soon | Sunday Observer

MCC compact before Cabinet soon

14 July, 2019

A Cabinet paper on the Millennium Challenge Corporation (MCC) funding will be put before the Cabinet of Ministers for approval by the 22 July, Sunday Observer reliably learns.

Speaking to the Sunday Observer an official attached to the project office said that the cabinet paper will be presented the week after next since the Finance Minister will not be available next week.

The MCC compact will extend US dollars 480 million to Sri Lanka by way of a development assistance grant, to be disbursed over five years.

Meanwhile State Minister for Finance, Eran Wicremarathne told the media that the project would move forward no sooner the cabinet approval is obtained.

According to the project official, delays in signing the Compact should not result in the project collapsing or the funds being allocated elsewhere.

“There is no such thing. As and when the cabinet approval is given the project will take effect we can move ahead to the next stage in the program,” he said.

CEO of the MCC Sean Cairncross in a letter to Prime Minister Ranil Wickremasinghe earlier this month said that “they are eager for the compact to move forward in a timely manner at this crucial stage”.

He further stated that they were committed to advancing the proposed 480 million dollars compact that the two governments have jointly developed to address major constraints in the Sri Lankan economy related to transport and land administration.