Cablegate: Advancing Mca Goals: The Visit of Ceo John

VZCZCXRO3057
RR RUEHLMC
DE RUEHMU #2222/01 2792324
ZNR UUUUU ZZH
R 062324Z OCT 06
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 7819
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHDC

UNCLAS SECTION 01 OF 02 MANAGUA 002222

SIPDIS

SIPDIS

MCC FOR AKIRSCHENBAUM

E.O. 12958: N/A
TAGS: EAID EFIN EAGR ETRD ELTN ECON KMCA NU
SUBJECT: ADVANCING MCA GOALS: THE VISIT OF CEO JOHN
DANILOVICH TO NICARAGUA

REF: MCC 487

1. (U) Summary. Millennium Challenge Corporation (MCC) CEO
John Danilovich visited Nicaragua September 20-22 to meet
with MCC-Nicaragua board members and staff, inaugurate
MCC-Nicaragua projects, and participate in the launch of the
first Investor Summit for West Nicaragua with President
Enrique Bolanos. President Bolanos privately complemented
CEO Danilovich on MCC,s bottom-up planning process, calling
it the "right way" to build the kind of consensus needed to
pursue regional or sector development programs. President
Bolanos suggested that another sector of domestic and
regional interest that might benefit from this approach was
energy and power. CEO Danilovich and the Ambassador ventured
into the countryside to visit two rural dairy projects
engaged in milk production and collection. On September 20,
CEO Danilovich presided over delivery of the first 26 of an
expected 43,000 land titles as part of an MCC-sponsored
program in the Leon ) Chinandega region. Press coverage of
the visit was extensive and positive, emphasizing the balance
between MCC's focus on economic growth and poverty reduction,
as well as the acceleration in program activity. End Summary.

CEO Danilovich Meets President Bolanos
--------------------------------------

2. (U) In a meeting prior to the investor,s conference, CEO
Danilovich informed President Bolanos that an MCC-sponsored
program delivered the first 26 of an expected 43,000 land
titles in the Leon ) Chinandega region. Minister of
Agriculture Mario Salvo explained how MCC projects dealing
with milk production and collection fit into his ministry,s
efforts to increase production and exports in this sector.
CEO Danilovich congratulated President Bolanos for having
pushed legislation through the National Assembly to ratify
the Millennium Challenge Account (MCA) compact and mandate
road maintenance funds, a requirement for MCA road projects.
CEO Danilovich informed President Bolanos that the U.S.
Congress might soon consider legislation permitting
concurrent MCA programs for the same country. President
Bolanos complemented the MCC bottom-up planning process as
the &right way8 to create consensus for regional or sector
programs. He suggested that a sector program of domestic and
regional interest that might benefit from this approach was
energy and power.

Inaugural Investor,s Summit for West Nicaragua
--------------------------------------------- -

3. (U) Approximately 60 investors participated in the first
&West Nicaragua Investment Summit8 sponsored by
MCA-Nicaragua and the GON investment promotion agency,
ProNicaragua. The two-day summit drew companies from the
United States, Canada, and Latin America. President Bolanos
inaugurated the event along with CEO Danilovich and the
Ambassador. President Bolanos spoke at length about
inheriting a financially broken and corrupt government, and
reiterated his administration,s success in reducing debt,
increasing reserves (now over 3.5 months of imports),
attracting foreign direct investment, and rooting out
corruption. Also representing the government were Minister
of Trade and Industry Alejandro Arguello, Minister of
Agriculture Mario Salvo, Technical Secretary to the
Presidency Alvaro Montalvan, Vice Foreign Minister Javier
Williams Slate, and ProNicaragua Executive Director Juan
Carlos Pereira. Presentations focused on the potential of
agribusiness, aquaculture, manufacturing, and tourism in the
region in the context of CAFTA-DR. Several participants
commented that the turnout was strong, especially in light of
the uncertain outcome of presidential elections in November.

Land Title Program
------------------

4. (U) On September 20, CEO Danilovich and the Ambassador
presided over an event in the city of Leon that formally
delivered clean land titles to 16 urban and 10 rural
beneficiaries. These were the first of an expected 43,000
land titles from MCC,s $26.5 million land title program.
Almost half of the beneficiaries were women, prompting
speakers to note the importance of gender equity for
achieving growth and poverty reduction. In their remarks,
CEO Danilovich and the Ambassador emphasized the importance
of clean land titles for securing credit, improving land
value land, and attracting investment to the region.

Site Visits
-----------

5. CEO Danilovich and the Ambassador then ventured into the
countryside to inaugurate two MCC pilot projects, the first
of many such efforts comprising the $33.7 million Rural
Business Development component of the MCC Program for
Nicaragua. The first site was a dairy farm where MCC
provides technical and financial assistance to improve
infrastructure, feeding practices, and hygiene associated
with milk production, and thus herd productivity and the
quality and marketability of milk. Several local
associations participated, raising the visibility of the
project in neighboring communities. At a second site, CEO
Danilovich inaugurated a milk collection facility that will
store raw milk for local producers, allowing them to increase
the daily yields and providing a location where they can do
business with sellers. Future MCC program activities will
focus on adding value to products and improving the region,s
export capability. MCA/Nicaragua plans to increase the scale
of its project activities across several sectors and points
in the value chain, i.e., supply of inputs, production,
processing, marketing, as well as export services.

Conclusion
----------

6. CEO Danilovich,s visit raised the visibility of MCC
programs with producers, investors, and the Government of
Nicaragua. Press coverage was extensive and positive,
emphasizing the balance between MCC's focus on economic
growth and poverty reduction, as well as the acceleration in
program activity. Events and site visits demonstrated the
range of MCC program activities, from providing clean land
titles to improving farm productivity and attracting
investors. MCC programs in northwest Nicaragua are aimed at
enabling the common farmer and rural business owner in
Nicaragua to take advantage of access to markets in the
Central American region, as well as access to the U.S. market
through CAFTA-DR.
TRIVELLI

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