Minister of Foreign Affairs of Georgia, Salome Zorabishvili and Millennium Challenge Corporation Vice President, Charles O. Sethness, on September 12 signed a $295.3 million Compact that envisions building a partnership for poverty reduction through sustainable economic growth.

The project focuses on rehabilitating regional infrastructure and promoting private sector development. The program will directly benefit approximately a half-million Georgians. In addition, over one quarter of the population of the country will receive indirect benefits from the program; for example, the reliable transmission of gas will reduce environmental, health, and safety risks.

The Project includes the following activities:

1.Samtskhe-Javakheti Road Rehabilitation - rehabilitation and construction of approximately 245 kilometers of main road traversing the Samtskhe-Javakheti region.

2.Energy Rehabilitation - rehabilitate the North-South Gas Pipeline that fuels electric power generation and provides heat to homes and businesses.

3.Regional Infrastructure Development Facility - regional and municipal physical infrastructure for water supply, sanitation, irrigation, municipal gasification outside of Tbilisi.

At the Compact signing ceremony the US Secretary of State, Condoleezza Rice, said that the compact signs America's long term commitment to Georgia: "The Millennium Challenge Compact that we sign today represents America's long-term commitment to Georgia's future success, and our partnership will only continue to grow stronger as Georgia continues to establish the rule of law, a vibrant and civil society, an independent media, a free economy and an accountable, effective institutions of government at all levels".

President Saakashvili made an address at the Compact signing ceremony stating, "I think it's really one of the most efficient tool of help I'd ever seen [...] Again I have to underline how important our programs on the road, how important program is for program on energy; in general, on poverty reduction and on rural infrastructure development because these are all signs of progress."

The Georgian President talked about the importance of the project an the US-Georgia partnership stressing that it was a partnership primarily between the Georgian and the American peoples who share the same values, who have the same dreams for their children, support one another and believe in supreme value of liberty and freedom.

Communications Office
of the President of Georgia