Brasília, September 18, 2008 – The U.S. government, through its Trade and Development Agency (USTDA), signed a memorandum of understanding with the Acre state government today to help extend broadband internet access to the entire state. The US$ 570,000 grant was signed by USTDA Director Larry W. Walther and Acre State Secretary Mâncio Cordeiro Lima, with the presence of U.S. Ambassador Clifford Sobel, at the U.S. Embassy in Brasília.

The project’s main goal is to promote the development of a network linking all government offices via high-speed Internet in Rio Branco and in Cruzeiro do Sul, helping to eliminate redundancies and reduce overall operating costs for government communications, as well as to provide high speed connections to public Internet access points, such as schools and health posts.

“We are pleased to support this project because information and communications technology infrastructure is an essential catalyst for growth in the global economy,” said USTDA Director Larry W. Walther.  “This project will further connect the Acre region with the world.”

The USTDA grant will fund the analysis of the feasibility of the project and develop its organizational structure, functional specifications, and architecture.  The study will also include a review of legal and regulatory issues related to public-private partnerships and assess the environmental impact.  “The hope of our next generation is education,” said Director Walther, “And that is what you are providing – opening them to the world through this kind of technology.”

The State of Acre is located in the northwest Amazon region of Brazil.  It is estimated that less than ten percent of homes located there have a computer with access to the Internet.  The State of Acre is committed to the development of a statewide broadband project that includes a hybrid voice, data and video Internet Protocol-based network to reduce the region’s interconnectivity and broaden its access to the global economy. 

“It’s the most important project in the state,” said Acre State Secretary Lima, who added that it will “reduce the distance between the citizen and the state.”  

The USTDA – The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, early investment analysis, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair, open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.