US cuts more Honduran aid

[Judi Lynn]

US cuts more Honduran aid
September 10, 2009 - 5:16PM

The United States has cut $US11 million ($A12.75 million) in aid to Honduras as Washington ratcheted up the pressure on the government that came to power in a coup in June.

The US government-run Millennium Challenge Corporation announced on Wednesday it would cut $US11 million ($A12.75 million) in aid and freeze a $US4 billion ($A4.64 billion) contribution to a road construction project.

"Given recent events in Honduras that are inconsistent with a commitment to democratic governance, MCC will terminate two planned activities in the transportation sector totalling approximately $US11 million ($A12.75 million) from its Compact with Honduras," a statement said.

"MCC also will put on hold approximately $US4 million ($A4.64 million) of its contribution for work on the CA-5 road project jointly funded with the Central American Bank for Economic Integration."

More:
http://www.smh.com.au/world/us-cuts-more-honduran-aid-20090910-fj3a.html

[rabs]

1. A little more info on the MCC cuts

Board halts funding to portions of MCC Compact with Honduras

MCC’s Board today announced that, given recent events in Honduras that are inconsistent with a commitment to democratic governance, MCC will terminate two planned activities in the transportation sector totaling approximately $11 million from its Compact with Honduras. As a result of the meeting, MCC also will put on hold approximately $4 million of its contribution for work on the CA-5 road project jointly funded with the Central American Bank for Economic Integration (CABEI). MCC will continue with existing activities for which funds have been contractually obligated and with the administration of the Compact with Honduras to ensure proper use of funds. MCC also will continue to monitor the situation in Honduras in close coordination with the State Department and other U.S. Government agencies.

http://www.mcc.gov/mcc/press/releases/mcc-board-of-directors-upholds-importance-of-count.shtml

Judi, there is a major error in the Aussie report that says:

The US government-run Millennium Challenge Corporation announced on Wednesday it would cut $US11 million ($A12.75 million) in aid and freeze a $US4 billion ($A4.64 billion) contribution to a road construction project.

It is U$D 4 million, not billion.

Fyi the CA-5 road project is known in Honduras as the "Canal Seco," or the "Dry Canal." It is a road project from the Pacific across Honduras to the Caribbean and is supposed to be sort of an overland road version of the Panama Canal.

Still, it looks like MCC funds "contractually obligated" will continue to flow to the golpista regime. Note no figure on how much those funds consist.

[Judi Lynn]

2. Thank you for this MCC information, rabs. That billion number looked really strange,

didn't it? It's good to see a correction to that.

First news I've heard about this project. It sounds like it will make a good difference.

Good to know the MCC funding seems to be on hold, other than the part they indicate is a prior obligation.

Thanks, again.