The Millennium Challenge Corporation (MCC) is providing approximately $41 million in 2012 funds to finance the Water Supply, Sanitation and Hygiene Project for the second Cape Verde Compact. Although the principal purpose of the project is to reduce poverty through economic growth, the project also is anticipated to have climate co-benefits. The project will be implemented by the Government of Cape Verde through the Ministry of Environment, Housing, and Territorial Administration and will focus on (1) strengthening national level institutions, (2) reforming utilities, particularly on the Island of Santiago, and (3) improving physical infrastructure. These activities are expected to help strengthen the ability of Cape Verde's government, utilities, and citizens to adapt to climate change impacts by strengthening local water resource planning capacity, adapting building codes, and funding critical infrastructure investments.