US embassy cable - 05TEGUCIGALPA1841

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Identifier:	05TEGUCIGALPA1841
Wikileaks:	View 05TEGUCIGALPA1841 at Wikileaks.org
Origin:	Embassy Tegucigalpa
Created:	2005-09-07 22:41:00
Classification:	UNCLASSIFIED
Tags:	ECON EAID EAGR KMCA HO
Redacted:	This cable was not redacted by Wikileaks.

UNCLAS TEGUCIGALPA 001841 
 
SIPDIS 
 
STATE FOR WHA/CEN, WHA/EPSC AND EB/EPPD 
TREASURY FOR DDOUGLASS 
COMMERCE FOR MSIEGELMAN AND AVANVUREN 
STATE PASS USAID FOR LAC/CAM 
 
E.O. 12958: N/A 
TAGS: ECON, EAID, EAGR, KMCA, HO 
SUBJECT: GOH Approves MCC Compact and Creates MCA-Honduras 
 
 
1. On August 26, the Honduran National Assembly approved the 
MCC Compact and on August 30 approved the law creating MCA- 
Honduras, which is the GOH legal entity that will be 
responsible for implementing the MCC Program. 
 
2. MCC staff will be working with GOH to complete the 
remaining steps so that the Compact can enter into force and 
the $215 million can be obligated.  Under the terms of the 
Compact, the Disbursement Agreement, the Procurement 
Agreement and the Term Sheet (this includes terms for the 
Fiscal Agent Agreement, Procurement Supervisor Agreement, 
Bank Agreement, and Governance Regulations) must be 
concluded prior to entry into force. 
 
3. COMMENT:  MCC expects that the Compact will enter in 
force within the next month but is somewhat concerned that 
the GOH is becoming increasing distracted by the election 
and debt relief. Post will continue to work closely with the 
GOH to ensure that this important program remains a top 
priority and is implemented promptly, transparently, and 
with all necessary accountability measures in place.  END 
COMMENT. 
 
Williard