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Millennium Challenge Corporation Awards WBD Indonesia II Compact Finance, Investment, and Trade Call Order
November 30, 2021
WBD is pleased to announce the award of a $3.2 million, five-year call order under the Public Private Partnerships for Access to Finance Blanket Purchase Agreement (BPA) with the Millennium Challenge Corporation (MCC) for Indonesia II compact due diligence and oversight services.
WBD will provide due diligence and strategic advisory to MCC’s Finance, Investment, and Trade team as it works with the Government of Indonesia to design high quality projects to address the binding constraint of costly and underdeveloped financial intermediation in infrastructure finance and for micro-, small-, and medium-enterprises (MSMEs), particularly those owned by women. WBD will provide recommendations to MCC on the project design, the proposed projects’ technical approaches, and financial and economic viability. In our option years, WBD will support MCC’s oversight of the compact implementation and advise on implementing structures, contracting arrangements, and program management capabilities.
“We’re thrilled to once again partner with MCC to provide due diligence and advisory support,” said Scott Caldwell, WBD co-founder and president. “We’re eager to help make the business case for more private investment in Indonesia’s infrastructure as well as more financial support to the tens of millions of MSMEs that drive the Indonesian economy. Getting these approaches right will support MCC’s goal of promoting economic growth and poverty reduction in Indonesia.”
As the technical lead, WBD will support alignment of MCC’s investment criteria to the Government of Indonesia’s development objectives for the second MCC compact. WBD’s work may include analysis of different priority infrastructure investments, the use of blended finance and other approaches to deepen private investment in infrastructure, as well as advising on approaches to connect MSMEs, especially those owned or led by women, to financial service providers, fintech providers, and strategic value chains. WBD will support consultative processes and advise on data collection efforts to ensure MCC’s investments are appropriate, targeted, and based on the best available evidence.
WBD has previously supported MCC’s Finance, Investment, and Trade team by analyzing the financial viability of the electricity sector in Senegal for Senegal II compact, and MCA-Indonesia by developing procurement skills training and mentoring for nearly 1,000 Indonesian procurement professionals under the Procurement Modernization Project of the first MCC compact.
The Millennium Challenge Corporation (MCC) is a U.S. Government corporation formed to help low-income and low-middle-income countries reduce poverty through the promotion of sustainable economic growth. MCC operates on the principle that aid is most effective when it strengthens good governance, economic freedom, and investments in people. MCC awards multi-year grants known as “Compacts” to partner countries that meet its selection criteria and propose programs that address their constraints to economic growth. Once developed and agreed, MCC compacts must be implemented by those partner countries within terms of not more than five years. For more information on MCC’s work in Indonesia, visit the MCC website.