June 23 (SeeNews) - US government foreign aid agency Millennium Challenge Corporation (MCC) said it approved a $49 million (43.8 million euro) programme aiming to address Kosovo's lack of reliable electricity, and weaknesses in rule of law.
The grant investments under the Kosovo Threshold Programme will support the country's government in its efforts to lower energy costs for households and businesses and develop new sources of electricity generation, MCC said in a statement.
The programme, which is expected to begin later this year, will also help the Kosovo government enhance transparency and accountability, and strengthen rule of law while fighting corruption.
"We look forward to working with the government to support affordable electricity and strengthen institutions critical to economic growth and poverty reduction to benefit the people of Kosovo,” acting MCC CEO Jonathan Nash said.
Kosovo was elected by MCC's board of directors as eligible to develop a threshold programme in December 2016.
MCC, which was created 2004, is working to reduce global poverty through economic growth. It provides time-limited grants and assistance to poor countries.
Kosovo is among the poorest countries in Europe with about 30% of its population living below the national poverty line. Competitiveness and productivity of local businesses are seriously hindered by frequent electricity shortages, weak implementation of rule of law and corruption.
($ = 0.8948 euro)