The pacts are quinquennal agreements between the CCC and an eligible country to finance specific poverty reduction and economic growth-boosting programmes. MCC`s unique model for the development of compact programs reflects the principles that characterized the creation of the Agency in 2004. These include the principle of country responsibility, the belief that aid is most effective when it is based on a partnership (or pact) in which recipient countries assume greater responsibility for their own economic development. We reaffirm these principles and decide to enter the new millennium through positive and constructive relations between Densatonurn and the States. The use and treatment of MCC funding under the agreement is not contrary to the limitations or requirements set out in the pact, in the program implementation agreement, in a complementary agreement, or in other relevant agreements or implementing letters, or in applicable laws or applicable directives of the U.S. government. No CZM funding may be used for military purposes, for activities that could result in significant job losses in the United States or a significant shift in U.S. production, to support activities that could pose significant risks to the environment, health or safety, or to fund involuntary abortions or sterilizations as a method of family planning. MCC funding is free to pay or impose all taxes in accordance with the Covenant. The U.S. government`s Millennium Challenge Corporation (MCC) and the Benin government signed a $375 million grant agreement or pact focused on Benin`s energy sector in September 2015. The Benin government is supporting MCC`s investment with an additional $28 million. The entry into force of the pact allows the use of these funds for the realization of project activities for a period of five years, the duration of the program.
MCC estimates that approximately 9.8 million people will benefit from this investment, 49% of whom live on less than $4 a day. In April 2018, the agoa and MCA modernization laws gave MCC the power to enter into parallel pacts to promote cross-border economic integration, trade and cooperation. In December 2018, the MCC`s Board of Directors selected five West African countries for parallel pacts: Benin, Burkina Faso, Côte d`Ivoire, Ghana and Niger.