Guatemala Threshold Program

  • Grant Total: $28,000,000
  • Grant Expended: $1,842,521
  • Signed: April 8, 2015

The Millennium Challenge Corporation and the Government of Guatemala are partnering to implement a $28 million threshold program to increase revenues and reduce opportunities for corruption in tax and customs administration, attract more private funding for infrastructure, and provide Guatemalan youth with the skills they need in the job market

Resource Mobilization Project

This $5.8 million project increases revenues by improving the efficiency of tax and customs administration within the Government of Guatemala. 

MCC and the Government of Guatemala will work together to undertake reforms to improve tax and customs revenue by:

  • reducing the rate of rejected audit cases, 
  • using risk management to facilitate clearance of low-risk cargo and compliant traders at ports of entry,
  • focus on high-risk cargo and traders,
  • implement a post-clearance audit program for customs, and 
  • improve control of the physical movement of people and cargo. 

MCC may also support reforms to the tax code if the government passes new legislation, including changes to allow the tax authority to access bank records, remove loopholes and conduct better audits.

The project will support the government's efforts to implement and promote transparency in public-private partnerships, and bring one or two projects to market by funding studies and transaction advisory services.

Education Project

This $19.3 million project aims to support the Government of Guatemala in improving the quality and relevance of secondary education to prepare its youth to succeed in the labor market. The threshold program will support efforts by the Ministry of Education to develop programs that improve teacher skills, the quality of teaching, and the effectiveness of technical and vocational education and training.

The project will help promote high-quality teaching in lower-secondary schools by supporting the Ministry of Education to develop, implement, and refine a continuous professional development system for teachers, as well as establish school networks to improve learning and accountability. MCC will also support the Government of Guatemala in developing new tools and strategies to develop the country's technical and vocational training and education system to help respond to labor market demand. The project will help the Ministry of Education in its efforts to offer technical and vocational education to students and to design and implement new curricula that better meet labor market demand.