Millennium Challenge Account Georgia

1. Millennium Challenge Corporation, USA
Millennium Challenge Account – Georgia
Compact II
June 2, 2014
Tbilisi, Georgia

2. Millennium Challenge Corporation, USA
• The Millennium Challenge Corporation (MCC) is an
innovative and independent U.S. foreign aid agency that
is helping lead the fight against global poverty.
• Created by the U.S. Congress in January 2004 with strong
bipartisan support, MCC is changing the conversation on
how best to deliver smart U.S. foreign assistance by
focusing on good policies, country ownership, and
results.

3. John Kerry, Secretary of State, Chairman of MCC Board
Jacob J. Lew , Secretary of the Treasury and Vice Chair of the MCC Board
Daniel W. Yohannes, Chief Executive Officer, MCC
Rajiv Shah, Administrator, USAID
Lorne Craner, President, International Republican Institute
Mark Green, President and CEO, Initiative for Global Development
Morton H. Halperin, Senior Advisor, Open Society Foundations and the
Open Society Policy Center
Board of Directors Projects financed
7 billion US Dollars (2004-2012)
Albania Armenia Benin Burkina Faso
Cape Verde II El Salvador II Georgia II
Liberia
Madagascar Malawi Mali Moldova
Mongolia Morocco Mozambique
Namibia Nicaragua Niger
Paraguay Peru Philippines Rwanda
São Tomé and Principe
Senegal Tanzania Timor-Leste
Uganda Ukraine Zambia
Second Compacts demonstrate special support from US
Conditions precedent for the MCC funding are
successful accomplishment of the 1st Compact and sustainability and eligibility of the country.

4. MCC
Competitive selection: Before a country can become eligible to receive assistance,
MCC’s Board examines its performance on independent and transparent policy
indicators and selects compact-eligible countries based on policy performance.
Country-led solutions: MCC requires selected countries to identify their priorities for
achieving sustainable economic growth and poverty reduction. Countries develop
their MCC proposals in broad consultation within their society. MCC teams then work
in close partnership to help countries refine a program.
Country-led implementation: MCC administers the Millennium Challenge Account
(MCA). When a country is awarded a compact, it sets up its own local MCA
accountable entity to manage and oversee all aspects of implementation. Monitoring
of funds is rigorous and transparent, often through independent fiscal agents.
MCC forms partnerships with countries committed to:
• good governance,
• economic freedom,
• and investments in their citizens.

5. MCC and Georgia
• Compact I: 2004-2011 focused on certain
infrastructure improvements and rural private
enterprise development trough grant program
and establishment of an investment fund.
Funding: $395 mln.
• In Spring 2011 Government of Georgia identified
low quality of human capital as a significant
constraint for economic growth (particularly acute
in STEM fields)

6. Millennium Challenge
Account – Georgia
established
on May 31st, 2012 under the Presidential Decree #441
as a result of the agreement between the governments of the USA and
Georgia
MCC

7. MCC
Where We Are Now
Compact I
2005-
2011
609g
Phase
2012–
2013
Designing
Compact
II
2012-
2013
Negotiations,
Congress
Notification,
MCC Board
April-June, 2013
Compact
II Signed
July 2013
Ratified
October
204
Compact
II
Impleme
ntation
Preparati
on Phase
NOW
Compact II
Implementa
tion
2014-2019

8. Financing structure
Government of Georgia
• USD 140 mln Compact funding
• USD 2.7 mln during 609g Agreement
• USD 21 mln Country Contribution
• GEL 353K co-financing
• Tax financing
Country contribution
MCC requires 15% of the total compact budget as a country contribution.
GoG contribution includes: providing infrastructure for Higher Education, rehabilitation of public TVET facilities,
providing new furniture and equipment for rehabilitated schools, co-financing school O&M, increase expenditures
for general education activities, ensuring sustainability of MCC’s investment.

9. Compact II Objectives
support strategic investments in general
education, technical/vocational education and
training, and higher education
strengthen the quality of education in Georgia,
with an emphasis on science, technology,
engineering, and math “STEM” education.

10. Projects of the Compact II
1. Improving General Education Quality Project
i. Improved Learning Environment Infrastructure Activity
(O&M Sub-Activity)
ii. Training Educators for Excellence Activity
iii. Education Assessment Support Activity
2. Industry-led Skills and Workforce Development Project
i. Competitive Program Improvement Grants
ii. Strengthening Sector Policy and Provider Practice
3. STEM Higher Education Project
i. International University Partner Selection
ii. ABET Accreditation
iii. Georgia Regional Development Fund

11. Reducing Poverty through Growth
We Focus On
General
Education
$76.5 mln.
Public School
infrastructure
rehabilitation
Develop schools
O&M plan
Professional
development for
public school
teachers and
principals
Classroom, National
and International
assessment support
Vocational
Education
$16 mln.
Support the
Development of
the Improved
Professional
Training and
Industry-led
Workforce
Higher
Education
$30 mln.
Implement US
degree educational
programs in
STEMs and
capacity
enhancement of
Georgian Public
Universities
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12. Reducing Poverty through Growth
General Education
1. Improved Learning Environment Infrastructure
 Up to 100 public schools fully rehabilitated in the
regions utilizing IFC Performance Standards and MCC
Environmental Guidelines
 Operations and Maintenance (O&M) Strategy for the
public schools developed
 Modern science labs installed in public schools
 Capacity building of ESIDA carried out
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13. Reducing Poverty through Growth
General Education
2. Educators for Excellence
 Professional development of all 7–12 grade teachers of Science
(biology, Chemistry, Physics) , Math, IT, English (approximately:
24,000 teachers)
 Intensive professional development of all 2,085 public school
principals
 Implementation and support of the school based professional
development system in all public schools and training of 2,085
School Based Professional Development Facilitators (SBPDF)
 Capacity building of Teachers Professional Development Center
(TBDC) staff
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14. Reducing Poverty through Growth
Classroom
Launch innovative classroom
assessment system with the
goal of making teaching
process more effective by
measuring students progress
against national curriculum
and adjusting teaching
process to the student needs
National
Further develop and
strengthen existing national
evaluation system.
Target populations is 9th
grade students of Physics,
Chemistry, Biology and
Georgian language in non
Georgian schools, also Math
(10th grade)
Capacity building of NAEC
International
The Program for International
Student Assessment (PISA)
assessing 15-year-olds'
competencies in the key
subjects: reading, mathematics
and science.
TALIS - Teaching and Learning
International Survey (OECD).
TALIS is the first international
survey program to focus on the
learning environment and the
working conditions of teachers in
schools.
Trends in International
Mathematics and Science
Study) (TIMSS)
measures trends in student
achievement in mathematics
and science
General Education
3. Assessments
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15. 15
Major Contribution to Wealth Creation
1. Support industry led and demanded professional skills
development programs by offering competitive grants to TVET
providers
2. Provide technical assistance to policy makers in TVET sector
3. Increase awareness and promote professional and vocational
education by hosting annual TVET conferences, and other
outreach activities
 Integrated communications campaigns in close
collaboration with the private sector
Engaging Industry in Technical and Professional
Skills Development

16. Reducing Poverty through Growth
STEM Higher Education Partnership
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Objective
Offer international standard US degrees
and/or ABET* accredited programs in
STEM fields in Georgia
* ABET is U.S. Accreditation Board for Engineering and Technology

17. As a result of two phase tender following finalist university consortia selected
by an independent Technical Evaluation Panel:
San Diego State University (SDSU), in consortium with, Iv. Javakhishvili Tbilisi
State University, Ilia State University and Georgian Technical University; G.
Eliava Institute of Bacteriophages, Microbiology and Virology; Richard G.
Lugar Center for Public Health Center.
North Carolina State University (NCSU), in partnership with Auburn
University (AU), CRDF Global, the Georgia Research and Development
Foundation (GRDF), and a selected group of Georgian institutes: Iv.
Javakhishvili Tbilisi State University; Georgian Technical University; Akaki
Tsereteli Kutaisi State University , Batumi Shota Rustaveli State University,
Iakob Gogebashvili Telavi State University, Gori State Teaching University, and
Samtskhe-Javakheti State Teaching University.
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STEM Higher Education Partnership

18. Social and Gender Considerations
in Career and Technical Education
Three Studies – on Gender, Social and Labor Market specificities
conducted with following objectives:
Identify
barriers to
female and
socially
disadvantaged
groups’
participation in
secondary and
post-secondary
STEM education
programs
Recommend
strategies to
improve
participation of
girls and socially
disadvantages
individuals in
STEM fields
Determine the
types of STEM
technicians
and
professionals
that currently
are, or will be,
in high
demand and
short supply in
the country
Results of the Studies
are publicly available
on
www.mcageorgia.ge
Inform the final design
of MCC investments in
Georgia, with
particular
considerations of the
diversity of
beneficiaries and an
oversight of social and
gender impacts
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19. ABET readiness of STEM programs at public
universities of Georgia
MCA-Georgia has contracted ABET Foundation with the
following objectives:
Study readiness
of 15 STEM
programs at five
Georgian public
universities for
a possible ABET
program
accreditation
Provide study
results to U.S.
and Georgian
university
consortia
Provide in-depth
analysis and
recommendations
on 5 STEM
programs at
Georgian public
universities
Results of the studies
available at MCA-
Georgia
Evaluate Georgian
standards of STEM
program accreditation
and present
recommendations to
EQE

20. MCA - Georgia
info@mcageorgia.ge
www.mcageorgia.ge
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Thank You!