Nicaragua and the United States signed a five-year $175 million compact on July 14. This is the fourth compact for the Millennium Challenge Corporation.Nicaragua's compact will improve transportation infrastructure ($92.8 million), promote rural business development ($33.7 million), and strengthen property rights ($26.5 million). An additional $22 million will be allocated to the program oversight and monitoring and evaluation.Speaking at the ceremony, Secretary of State Condoleezza Rice said the compact was a testament to Nicaragua's commitment to economic growth. "We applaud Nicaragua for freeing the funds from the HIPC debt forgiveness program in order to create the right conditions for lasting prosperity," Rice said.In 2004, Nicaragua had a strong 5.1 percent growth rate, according to Rice.Nicaragua's President Enrique Bolanos thanked the people of the United States for their generosity and promised to continue the fight against poverty and corruption. He urged the United States Congress to support CAFTA."The MCA was not designed to work by itself. It should be complemented by other trade mechanisms," he said. "To me CAFTA has implications for democracy and security."Read more on the compact
