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. In response to the Ghanaian government`s decision to terminate the concession agreement between Electric Company of Ghana Ltd (ECG) to private operator Power Distribution Services Ghana Ltd (PDS), the MCC Board of Directors did not select Ghana for regional investments in 2019. MCC appropriations, first funded by Congress in 2004 at $994 million, peaked at $1.75 billion in 2006 and 2007. Since then, MCC`s mediocre funding has fluctuated somewhat, although it has remained stable in recent years, at around $900 million per year (see Chart 1). As in the previous two years, the current government has proposed a reduction in appropriations for CCMs in the GJ 2020). So far, Congress has rejected proposed spending cuts17 McC`s project portfolio covers many areas of development, including health. The MCC recognizes that health is important to its mission to fight poverty and has supported a number of health projects in a number of countries19, including in areas such as HIV/AIDS, family planning and reproductive health, food and other public health, water and sanitation efforts. Together, health and/or water and sanitation were included in 12 pacts and five threshold agreements in 16 countries. With the exception of one of these pacts and threshold agreements, all have been concluded (the growth programme in Sierra Leone remains active).
From gJ 2004 to GJ 2018, MCC has committed nearly $1.5 billion for 17 different projects on health and/or water and sanitation (below thresholds and compacts), representing nearly 11% of the total appropriations committed by the CCC. Some $310 million was spent on health-related projects, while $1.182 billion was spent on water and sanitation.20 See Table 2. And even if the first compact didn`t go smoothly, there`s no reason to believe it`s a prediction for future performance. Mozambique`s first compact, like many early compacts, was very complex and diffuse. MCC no longer designs compact compacts, which is due in large part to the lessons learned from the early compacts, many of which have faced implementation challenges. Compacts are now thinner and often focus on investments in a single sector. A (slightly) different group of government actors should also implement a different new pact. If some of the challenges of implementing the first pact are related to the government`s political will to implement reforms, it is reasonable to think that the quality of a partnership might be different when it operates in different sectors with different ministries under another government (albeit the same party).