Millennium Challenge Account Timor-Leste (MCA-TL) is a state-owned entity established by the Government Decree Law no. 96, dated December 30, 2022. MCA-TL mandated to manage and facilitate Compact implementation for five years periods of time. According to the Organic law of the IX Constitutional Government (Decree aw no. 46, dated July 28. 2023) MCA-TL was tutelage under the Ministry of Finance.

The United States of America, acting through the Millennium Challenge Corporation (“MCC”), and the Government of Timor-Leste (the “Government”) developed a Millennium Challenge Compact to facilitate poverty reduction through economic growth in Timor-Leste. MCC entered into a Grant and Implementation Agreement with the Government of Timor-Leste in the amount of US$480 million (US$ 420 million will be provided by the MCC and the Government of Timor-Leste will contribute US$ 64 million). The Compact Project’s primary objectives are:

WATER, SANITATION AND DRAINAGE (WSD) PROJECT: The problem is high levels of fecal pathogens in water resources and the environment results in frequent and extended incidences of disease among all segments of the population and impairs the development of the country’s human capital.The primary objective is to reduce fecal pathogens in piped and stored drinking water, groundwater, and the environment.

EDUCATION (TALENT) PROJECT: This problem is a poor-quality education at the secondary and tertiary levels that does not adequately prepare individuals for success either at work or in higher education results in a workforce that lacks skilled labor and prevents the development of the country’s human capital. The primary objective of the proposed project is to improve student learning outcomes.