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US Development Policy


On March 2, the MCC signed a 5-year, $65.69 million compact with Vanuatu. The grant will focus on rehabilitating transportation infrastructure through eleven infrastructure projects aimed at roads, warehouses, wharves and an airstrip, extending into rural areas. The Compact will also include institutional strengthening efforts and policy reform initiatives such as maintenance equipment, maintenance schemes and the introduction of user fees. According to the MCC, the goal is to create a program that:

will benefit rural agricultural producers and providers of tourist-related goods and services by reducing transportation costs and improving the reliability of access to transportation services.

This is the 7th Compact that the MCC has signed to date. Though it is by far the smallest Compact so far, it may in fact prove to be the first Compact to enter into force relatively quickly. As MCC CEO Danilovich mentioned at a public event held by CGD last month:

…I’d like to say [Vanuatu] has the possibility of becoming our first compact that will enter into force very rapidly because that has been a problem that we’ve had internally, between the signing of the compacts and their entering into force. In Vanuatu we’ll have a situation where that compact will in fact enter into force in a matter of weeks.


CGD blog posts reflect the views of the authors, drawing on prior research and experience in their areas of expertise. CGD is a nonpartisan, independent organization and does not take institutional positions.