[Federal Register: November 30, 2006 (Volume 71, Number 230)]
[Notices]
[Page 69225-69268]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30no06-55]
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Part II
Millennium Challenge Corporation
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Notice of Entering into a Compact With the Government of the Republic
of Mali; Notice
[[Page 69226]]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 06-20]
Notice of Entering Into a Compact With the Government of the
Republic of Mali
AGENCY: Millennium Challenge Corporation.
ACTION: Notice.
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SUMMARY: In accordance with Section 610(b)(2) of the Millennium
Challenge Act of 2003 (Pub. L. 108-199, Division D), the Millennium
Challenge Corporation (MCC) is publishing a summary and the complete
text of the Millennium Challenge Compact between the United States of
America, acting through the Millennium Challenge Corporation, and the
Government of the Republic of Mali. Representatives of the United
States Government and the Government of the Republic of Mali executed
the Compact documents on November 13, 2006.
Dated: November 16, 2006.
William G. Anderson, Jr.,
Vice President & General Counsel (Acting), Millennium Challenge
Corporation.
Summary of Millennium Challenge Compact With the Government of the
Republic of Mali
I. Introduction
The five-year, approximately $460 million Millennium Challenge
Compact aims to support policy reform and the development of key
infrastructure for productive sectors, by addressing Mali's constraints
to growth and capitalizing on two of the country's major assets, the
Bamako-S[eacute]nou International Airport (the ``Airport''), a gateway
for regional and international trade and the Niger River Delta for
irrigated agriculture. These investments will create a platform for
increased production and productivity of agriculture and small- and
medium-sized enterprises, as well as expand Mali's access to markets
and trade.
The MCC investments will be strengthened by policy reforms and
institutional support, such as formal land titles for the rural poor,
demand-driven rural advisory services, an improved business
environment, and increased access to markets and trade. These
institutional and infrastructure investments will impact the poor in
Mali, particularly Malian farmers and small- and medium-sized
entrepreneurs, not only in project intervention zones but, over time,
on a regional and national scale.
II. Program
The projects under the Compact are as follows:
1. Airport Improvement Project: Establish an independent and secure
link to the regional and global economy, addressing the specific need
of a landlocked developing country.
2. Industrial Park Project: Provide properly managed and serviced
land for close to 200 businesses and leverage reforms that will
decrease the cost of doing business.
3. Alatona Irrigation Project: Provide a catalyst for the
transformation and commercialization of family farms, supporting Mali's
national development strategy objectives to increase the contribution
of the rural sector to economic growth and help achieve national food
security.
Airport Improvement Project
The Airport Improvement Project is intended to remove constraints
to air traffic growth and increase the Airport's efficiency in both
passenger and freight handling through airside and landside
infrastructure improvements, as well as the establishment of
appropriate institutional mechanisms to ensure effective management,
security, operation, and maintenance of the Airport facilities over the
long term.
The Airport Improvement Project includes the following activities:
Airside Infrastructure: Improvements will include
reinforcement overlay to, and expansion of, the runway, taxiway, and
apron areas; replacement of deteriorating navigational equipment; and
upgrades of Airport security systems.
Landside Infrastructure: Improvements will be made to the
existing passenger terminal and a new passenger terminal will be
constructed, as well as support facilities, Airport roads, and parking
lots. Certain utilities, including water supply, solid waste disposal
facilities, wastewater treatment, and power generation, are also
planned to be constructed and designed as joint systems to support both
the proposed investments at the Airport and the adjacent Industrial
Park.
Institutional Strengthening: Infrastructure improvements
will be accompanied by the establishment of appropriate institutional
mechanisms to ensure effective management, operation and maintenance of
the Airport facilities over the long term. These measures will involve
both the management of the Airport, as well as the wider regulatory
framework governing the civil aviation sector in Mali.
Industrial Park Project
The Industrial Park Project, located within the Airport domain,
will develop a platform for industrial activity (initially 100 hectares
(ha)) to meet the high and growing demand for well managed and serviced
industrial land. The 100 ha industrial park (the ``Industrial Park'')
is intended to be an anchor for a growing industrial sector in Mali,
thereby alleviating a key constraint to value added production and
economic growth. Reliable provision of utility services, including
electricity, water, and wastewater, will increase business
productivity.
The Industrial Park Project includes the following activities:
Primary and Secondary Infrastructure: The Industrial Park
Project will fund primary and secondary infrastructure systems for the
100 ha Industrial Park, designed for potential expansion to a larger
200 ha industrial zone. The primary infrastructure will include major
road systems and utilities such as water supply mains and pump
stations. Secondary infrastructure will include roads leading into
Industrial Park sub-zones as well as lateral water/drainage piping,
etc. to service the smaller parcels. The tertiary (on-lot)
infrastructure, to be financed and built by the industries locating in
the Industrial Park, includes interior roads and parking, water supply
taps/connections and fire protection, electrical and
telecommunications, and wastewater collection (and possibly
pretreatment).
Resettlement: Resettlement activities, which must be
consistent with World Bank Operational Policy 4.12 on Involuntary
Resettlement, require compensation for loss of livelihoods as a result
of both physical and economic displacement. The scope of this
displacement is larger than the 200 ha acquisition of land and
compensation of users for the Industrial Park. Common infrastructure
facilities \1\ require acquisition and clearing of land and rights of
way outside the Industrial Park, both inside and outside the Airport
domain. To compensate peri-urban cultivators who practice rain-fed
agriculture in the Airport domain and whose lands are required for the
Industrial Park Project and the Airport Improvement Project, the
Industrial Park Project will develop serviced garden plots offered on a
long-term (e.g., 40-year) lease on land elsewhere in the
[[Page 69227]]
Airport domain. Acquisition of other land for infrastructure and rights
of way located outside the Airport domain will also require
compensation, the nature of which will be determined during the
development of the RAP, which will cover the resettlement and
compensation issues related to both the Industrial Park Project and the
Airport Improvement Project.
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\1\ This infrastructure includes wastewater treatment, power
generation, water supply, conveyance and storage, and solid and
hazardous waste disposal to serve both the Industrial Park and the
Airport.
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Institutional Strengthening: Infrastructure improvements
will be accompanied by the establishment of appropriate mechanisms that
will ensure effective management, operation and maintenance of the
facilities over the long term. These mechanisms will involve the
management of the Industrial Park itself, as well as administrative and
regulatory reforms to alleviate current constraints to business
development in Mali. To encourage the development of small- and medium-
sized enterprises (``SMEs''), the Industrial Park Project will provide
business services such as access to financial and market information
and export facilitation services. The Industrial Park Project will also
focus on how to ensure coordination in operations and maintenance of
shared utilities between the Airport and Industrial Park operators.
Alatona Irrigation Project
The Alatona Irrigation Project is focused on increasing production
and productivity, increasing farmer incomes, improving land tenure
security, modernizing irrigated production systems and mitigating the
uncertainty from subsistence rain-fed agriculture. This project seeks
to develop 16,000 ha of newly irrigated lands in the Alatona production
zone of the Office du Niger (the ``ON''), representing an almost 20
percent increase of ``drought-proof'' cropland. The Alatona Irrigation
Project will introduce innovative agricultural, land tenure, and water
management practices, as well as policy and organizational reforms
aimed at realizing the ON's potential to serve as an engine of rural
growth for Mali.
The Alatona Irrigation Project includes the following activities:
Niono-Goma Coura Road: This activity will involve
upgrading an 81 kilometer north-south road within the national highway
network from its current earth/gravel condition to a paved standard.
The investment will also include an additional access spur to the
Alatona perimeter at the village of Dogofry.
Irrigation Planning and Infrastructure: This activity will
involve main conveyance system expansion, Alatona irrigation system
development, and support to the ON agency on water management.
Land Allocation: The Alatona Irrigation Project will
improve rural land tenure security in Mali by allocating newly
developed, irrigated land to family farmers, women market gardeners,
and farming companies in private ownership. These land recipients will
purchase the land by making annual payments over a 15-20 year period.
This activity consists of land parcel creation, land rights education,
registration system upgrade, land parcel allocation and titling, and
management of land revenues.
Resettlement, Social Infrastructure, and Social Services:
This activity will compensate families residing in the perimeter or
with rights to land therein, consistent with World Bank Operational
Policy 4.12 on Involuntary Resettlement, by offering land in the
irrigation perimeter or, if the land option is not chosen, other
compensation alternatives. This activity will provide social
infrastructure to serve these project affected persons as well as
incoming settlers and other migrant families and will also support
social services (primarily education and health staff) during the last
three years of the Compact.
Agricultural Services: This activity will support a range
of agricultural, institutional and related services to strengthen
capacity and improve agricultural practice through applied agricultural
research, extension and farmer training, support to farmer
organizations, and support to water users associations.
Financial Services: This activity will encourage
agricultural lending by reducing the risks of extending credit in this
newly developed zone, improving transparency within the existing
financial system, and strengthening the capabilities of local financial
institutions through a credit risk sharing program, microfinance credit
bureau strengthening, financial institution capacity building, and
direct support to farmers.
The table below outlines the estimated MCC contribution to the
program by year and category over the term of the Compact.
[GRAPHIC] [TIFF OMITTED] TN30NO06.000
III. Impacts
The Airport Improvement Project will expand Mali's access to
markets and trade through improvements in the transportation
infrastructure at the Airport, as well as better management of the
national air transport system. Evidence suggests that economic growth
and poverty reduction depend on enhanced access to markets and trade.
However, Mali's access is severely constrained. Mali is landlocked and
heavily dependent on inadequate rail and road networks. Mali depends on
freight transport through ports in unstable countries, such as Conakry,
Guinea (Bamako's closest port, which is 1000 km away) and Abidjan, Cote
d'Ivoire. In the last few years, the instability in Cote d'Ivoire has
dramatically limited Mali's market access. Before the outbreak of the
Ivorian crisis, 70 percent of Malian exports were leaving via the port
of Abidjan. In 2003, this amount dwindled to less than 18 percent. Mali
cannot control overland routes to international and regional markets.
Therefore, air traffic has become Mali's lifeline for transportation of
both passengers and export products.
Malian exports are predominantly agriculture based and depend on
rural
[[Page 69228]]
small-scale producers, who would benefit from increased exports in
high-value products such as mangoes, green beans, and gum arabic.
Additionally, international tourists arriving at the Airport spend the
majority of their time in rural areas, benefiting businesses in far-
away places such as Timbuktu, Mopti, and Djenne. Finally, the improved
management of the national airport system will facilitate links to
primary destinations through regional air travel.
The Industrial Park Project will leverage national reforms in the
business sector, reducing the cost and time to register a business, and
enhance management and planning of the industrial sector. The existing,
heavily congested, poorly managed, and degraded ``industrial zone'' is
inappropriately located, lacks basic utilities and services, and has no
room for expansion. The proposed Industrial Park would become the
anchor for a growing industrial sector in Mali and alleviate a key
constraint to value-added production and economic growth. Businesses in
the agro-processing sector, where Mali has a comparative advantage, are
likely to install in the Industrial Park. Growth generated by the
Industrial Park will generally be poverty reducing due to the link to
small-scale agricultural production.
The Alatona Irrigation Project focuses on a high-potential
geographical zone in one of the poorest areas of central Mali. The
Alatona Irrigation Project will develop 16,000 ha of irrigable
agricultural land in the Alatona zone of the ON resulting in increased
productivity and production, as well as diversification of high-value
crops. MCC's investments will include construction of a road,
irrigation infrastructure, and social infrastructure, such as schools,
clinics, and water and sanitation facilities. This project will provide
social services, access to credit, and agricultural extension and will
help establish and empower rural producer organizations by giving them
access to information and productive assets. The Alatona Irrigation
Project will leverage policy reforms expected to have a broad impact on
the agricultural landscape throughout Mali.
Together, the three projects will result in increased industrial
growth in the urban area, increased agricultural production and
productivity in the ON and improved access to national, regional, and
international markets.
IV. Program Management
The accountable entity (the ``MCA-Mali'') will be organized under
the laws of Mali as a service rattach[eacute] attached to the Prime
Minister's office. MCA-Mali will have a mixed public-private board of
directors responsible for program oversight. The board will consist of
eleven voting members and two non-voting members. A management team
will have overall management responsibility for the day-to-day
implementation of the program. MCA-Mali will remain accountable for the
successful execution of the program while working through implementing
entities, contractors and consultants, whose interaction will be
facilitated by a fiscal agent and a procurement agent. The Government
of Mali (``GOM'') will also create two advisory councils to represent
beneficiaries for each of the project sites--the Airport domain and the
Alatona zone. In addition to the fiscal agent and the procurement
agent, financial auditors and possibly a data quality agent will
provide external controls.
V. Other Highlights
A. Consultative Process
The program strongly supports the third pillar of Mali's Poverty
Reduction Strategy Paper (``PRSP'')--development of infrastructure and
key support for productive sectors. The participatory process of the
PRSP is characterized as having ``breadth'' and being ``systematic.''
The PRSP identifies the following as top constraints to economic growth
in its consultative process:
Climatic risks affecting the rural sector with
consequences on the national economy.
High cost of factors of production.
Fluctuations in prices of principal import and export
products.
Isolation/landlocked nature of the country.
The Compact was designed to address these constraints. Priorities
were defined by the national PRSP structure and refinement occurred in
consultation with civil society and the private sector. This
consultative process enriched and helped form the GOM proposal and its
development. The insistence on rural land ownership and titling derived
from dialogue with civil society and private sector actors. The need
for inclusion of a strong component of social services for the Alatona
zone was also reinforced through the consultative process.
Members of the GOM, private sector, and civil society (Malian and
U.S. non-governmental organizations (``NGOs'')) played an active role
in developing the Compact proposal. Local NGOs, including village-level
women's associations, were directly involved in the process through
numerous on-site workshops and meetings in the ON region. Consultations
also took place with private sector and civil society actors around
Bamako, as well as communities surrounding the Airport domain, who
emphasized the need for improved infrastructure and increased economic
activity to reduce poverty. In addition, the consultative process
involved participation of the U.S. NGO community, which has a strong
presence in Mali, working on health, education, agriculture,
governance, and economic development programs throughout the country.
B. GOM Commitment and Effectiveness
MCC and GOM have been in discussions over the following policy and
institutional reforms that will reinforce the implementation and
sustainability of the program. Relevant reforms will serve as
conditions precedent in the disbursement agreement. Below is a list of
policy and institutional reforms that have been adopted or are pending:
Airport Improvement Project
GOM is in the process of restructuring several aspects of
the civil aviation sector to reflect the recommendations of
international organizations such as the International Civil Aviation
Organization (``ICAO'') and the U.S. Federal Aviation Administration
(``FAA''). Among these reforms:
[cir] GOM recently (December 2005) created an independent and
financially autonomous civil aviation agency, the Agence Nationale de
l'A[eacute]ronautique Civile (ANAC). Implementation of the new agency
is considered by GOM to be a high priority and a proposal has been made
to include approximately $5 million in the national budget of Mali over
the next three years for this purpose.
[cir] A new law is expected to be approved before the end of 2006
that will modernize the operations and management of Aeroports du Mali
(``AdM''), the operator of the landside facilities. The text of the new
law will grant AdM more flexibility, better define its mandate, and lay
the groundwork for the eventual possibility of opening its capital to
participation by third parties and creation of a soci[eacute]t[eacute]
d'[eacute]conomie mixte.
Industrial Park Project
Law 05-019 was ratified by Parliament in September 2005
establishing API-Mali, a new investment promotion agency. This agency
will encourage and sustain foreign direct and national investment,
improve the business climate, and
[[Page 69229]]
develop and regulate industrial zones and other economic activities.
Implementation of this law will determine the agency's exact role vis-
[agrave]-vis the Industrial Park Project.
In response to the Doing Business Indicators and the
Multilateral Investment Guarantee Agency benchmarking study, GOM has
developed a short-term action plan to improve Mali's performance.
Recently, the Ministry of Investment Promotion has engaged the
International Finance Corporation to develop a legal regulatory
framework, in addition to frameworks relating to land allocation and
taxation for industrial zone activities in the country.
Among the various efforts that GOM is undertaking to
address weaknesses in the Malian business climate, an important and
innovative measure includes the establishment of the Presidential
Investors' Council (``PIC'') in September 2004. The purpose of the PIC
is to introduce a global business perspective into policy formulation
and implementation. In response to one of its recommendations, GOM is
targeting early 2007 to put in place a one-stop shop for business
registration housed in the newly established API-Mali.
Alatona Irrigation Project
GOM has expressed its high-level commitment to increase
land-tenure security, to secure property rights and to increase
issuance of land titles in the Alatona zone. This represents a major
policy departure for GOM. Although Alatona will not be the first
experiment with land titles in the rural area, the Alatona Irrigation
Project is on an unprecedented scale.
GOM reforms have included (a) the restructuring of the
National Directorate of Public Works to create the National Directorate
of Roads, including the establishment of a unit for emergency road
works and (b) the establishment of a Road Authority (as a successor to
the old Road Fund) with sole responsibility for managing the financing
of road maintenance activities. The initial steps to create a
specialized autonomous contracting agency for road maintenance, the
AGEROUTE, have also been made. These steps provide assurance to MCC of
GOM's commitment to a sustainable road maintenance program.
C. Sustainability
The Mali program is embedded in the institutional framework of Mali
with the limited creation of parallel structures. It reinforces GOM's
approach and commitment to democracy, decentralization, and empowerment
of local communities. MCC-supported interventions will complement and
reinforce national strategies for poverty reduction and economic
growth. The program objectives draw from the following national
development strategies: PRSP, National Food Security Strategy, ON
Master Plan, and Agriculture Orientation Law.
Airport Improvement Project. Under the present division of
jurisdictions, a number of entities have responsibility for the civil
aviation sector in Mali in general and the regulation, oversight,
management, operation, and development of the Airport in particular. In
response to ICAO safety and security audits and FAA assessments, GOM is
in the process of restructuring and consolidating this institutional
framework. One major result has been the establishment of ANAC in
December 2005, which now has financial and administrative independence.
The Airport Improvement Project will reinforce the new civil
aviation regulatory and oversight agency (ANAC) by providing technical
assistance to establish a new organizational structure, administrative
and financial procedures, staffing and training, and provision of
equipment and facilities. Additionally, the project will rationalize
and reinforce the Airport's management and operations agency (AdM) by
providing technical assistance to establish a model for the management
of the Airport and the long-term future status and organizational
structure of AdM.
Industrial Park Project. In 1999, GOM passed Decree 99-252
declaring the 7,194 ha of land encompassing the Airport and the
proposed Industrial Park as public domain land. Based on this decree,
the Ministry of Public Works and Transportation and Ministry of
Territorial Administration were named the responsible parties for the
management of the Airport domain. Although AdM is viewed as the asset
holding agency, GOM intends to enter into a management contract with a
private operator for the Industrial Park. Under the World Bank Mali
Growth Support Project, API-Mali will serve as the public-sector
regulator for the Industrial Park, while day-to-day management will be
assigned to a private entity (the ``Operator'') through an
international, competitive procurement process. MCC will support the
recruitment and start-up of the Operator, and will finance limited
business support services to tenants.
To ensure the creation of new SMEs, the Industrial Park Project
will help these SMEs access financial and market information, as well
as export facilitation services. In addition, the project will focus on
how to ensure coordination in operations and maintenance of shared
utilities between the Airport and Industrial Park operators.
Alatona Irrigation Project. The Alatona perimeter is located at the
``tail end'' of the ON gravity-fed irrigation system. Long term success
hinges on effective and efficient management of the entire system. The
project addresses this issue by financing additional capacity on the
main conveyance structures, as well as supporting the ON to achieve
sustainable management of its entire stock of assets. In addition, the
Alatona Irrigation Project will address the need to update the existing
ON Master Plan, which is based on scenarios and assumptions developed
in 2001, and upon which current expansion plans are based. Maintenance
of the main system and structures is the financial responsibility of
GOM, which delegates this to the ON. Through a two-tiered system of
joint ON-farmer committees, the ON also maintains the distributors and
secondary canals within the five regional zones, while farmer
organizations manage the tertiary canals. The water fees collected
would seem adequate to cover the operations and maintenance cost of the
major distribution systems within the zones.
The Niono-Goma Coura road is part of GOM's annual routine
maintenance program. Current allocations should ensure routine
maintenance on this road. Periodic maintenance funding (about every 10
years) is considered a major challenge, although it is anticipated that
EU and World Bank efforts to increase user fees will over time ensure
such funding.
The financial services activity will provide microfinance
institutions and banks with training in agricultural credit and other
aspects of managing the delivery of financial services to the
inhabitants of Alatona. The project will create a new legal entity--the
Revenue Authority--to collect and manage the revenues generated through
land payments. MCC funding will support the costs of structuring this
entity and facilitate some initial capacity building. Following this,
the Revenue Authority will support itself through the land revenues
collected. This structure has the potential to encourage local
institutions to organize themselves around project design and
implementation, thereby building local capacity for community planning
and service delivery and helping to strengthen nascent decentralized
government.
[[Page 69230]]
Research and extension are considered public goods and are funded
by GOM. Over the life of the Compact, demand-driven and fee-based
research and extension techniques will be tested. It is expected that
the financially self-sufficient Alatona producers' organization as well
as farmers' groups and village associations will play a key role in
demanding and paying for these services.
D. Environment and Social Assessment
Airport Improvement Project. A Category A environmental impact
assessment (``EIA''), following MCC Environmental Guidelines and Malian
law, will be required. The recommended wastewater treatment, expanded
water supply and distribution, solid and hazardous waste disposal,
power supplies, drainage and other infrastructure are currently
conceived and sized to serve both the Airport and the Industrial Park.
Therefore, the Airport and the Industrial Park will be treated together
for purposes of the EIA and the resettlement action plan (``RAP''),
because of their common infrastructure, joint road access, shared space
within the Airport domain and the cumulative effects of both projects.
The joint RAP (covering physical and economic displacement, both
temporary and permanent in areas inside and outside the Airport domain)
will be prepared based on the World Bank's Operational Policy 4.12 on
Involuntary Resettlement. Some of the infrastructure poses
implementation risks, because they are municipal facilities not yet
funded or built and located outside the Airport domain.
Industrial Park Project. The Industrial Park will be assessed in
the joint Airport/Industrial Park EIA. In this context, the RAP will
address compensation for those cultivating and using land in the
Industrial Park and in other locations, both on and off the Airport
domain. The approach and issues discussed above for the Airport
Improvement Project with respect to common infrastructure construction
impacts, the EIA, and the RAP remain the same.
Alatona Irrigation Project. Irrigation-related activities of the
Alatona Irrigation Project, including activities external to the
Alatona zone (such as presettlement activities and expansion and
enhancement of the overall conveyance capacity of the ON's main canal
system) will require a full Category A EIA, under MCC Environmental
Guidelines and Malian law. The Niono-Goma Coura road's Category B
environmental and social assessment will be prepared in advance of the
irrigation EIA to expedite implementation of road improvements. The
Environmental Assessment (2003) and updated Environmental Management
Plan (2005), which already exist for road rehabilitation of a much
longer stretch of the national route, will be supplemented and updated
for the 80-kilometer section to be funded under the Compact. Cumulative
impacts of the road as well as the irrigation activities will be
addressed in the Alatona EIA. Both documents will include HIV/AIDS
mitigation plans. Two RAPs consistent with World Bank Operational
Policy 4.12 on Involuntary Resettlement will also be needed, one for
the road activity and another for the irrigation activities. A
prerequisite to preparing the Alatona EIA is preparation of an overall
land use and natural resources management plan to address the
sustainability of the Alatona large-scale land development and
population increase of about 60,000.
E. Donor Coordination
All three projects complement and leverage other donors' efforts in
Mali. The World Bank is also investing in activities to improve the
Airport, Industrial Park, and business climate. Due to the World Bank's
funding gap, GOM requested additional funds from the MCC to support the
larger and more costly infrastructure improvements. For the Alatona
Irrigation Project, the Dutch Development Agency, French Development
Agency (``AFD''), the World Bank, and the U.S. Agency for International
Development (``USAID''), in particular, have been working in the ON
over the past several decades, resulting in a more efficient,
decentralized management structure, while increasing production and
productivity of the zone. Relevant donor activities are described in
more detail below.
USAID: The Mali program builds on USAID's Accelerated Economic
Growth and Trade Development Project (2003-2012), which includes the
Program in Development of Agricultural Production, Mali Finance, and
Trade Mali.
World Bank: The Mali program complements and reinforces several
ongoing or recently launched World Bank programs such as the Mali
Growth Support Project, the National Project for Rural Infrastructure,
the Agricultural Competitiveness and Diversification Project, and the
Rural Community Development Project. The World Bank is also assisting
in the funding of a regional program in West and Central Africa aimed
at improving civil aviation safety and security as a key element of
improving the performance and affordability of air transportation and
optimizing its role as an engine of economic and social development.
Regional Civil Aviation Cooperation: ANAC has recently received a
draft Common Civil Aviation Code and Regulatory Texts from the West
African Economic and Monetary Union. These documents were prepared as a
model to be used by states belonging to regional groupings, as part of
an effort sponsored by ICAO to reduce the financial burden for
inspections on the part of countries with small aviation markets, by
establishing common civil aviation regulations and the creation of
regional entities to assist countries.
U.S. Department of Transportation (USDOT) Safe Skies for Africa
(SSFA): The SSFA program is intended to promote sustainable
improvements in aviation safety and security, air navigation, and to
support Africa's integration into the global economy. The SSFA program
coordinates activities of other agencies, such as the FAA, the
Transportation Security Administration and the National Transportation
Safety Board, to improve the capacities of African aviation
organizations. MCC has signed a Memorandum of Understanding with USDOT
to collaborate on projects such as the present effort in Mali and
discussions regarding the coordination of our respective projects have
already taken place.
AFD: The AFD has supported various initiatives in the ON for many
years and is a lead donor in the donors group for the ON. The proposed
expansion of the main canal system will complement a planned AFD
project to strengthen certain sections of a primary canal.
Other Donors: The Mali program complements other donors' programs,
such as the Dutch Development Agency's activities in agricultural
diversification and marketing, agricultural processing, improved water
management, and institutional strengthening in the ON. The Dutch have
recently approved financing for a cold-storage facility in Bamako that
will be located in the Airport domain. This facility will be used for
mangoes and other high value horticulture products, such as green
beans.
Millennium Challenge Compact Between the United States of America
Acting Through the Millennium Challenge Corporation and the Government
of the Republic of Mali
Table of Contents
Article I. Purpose and Term
[[Page 69231]]
Section 1.1 Compact Goal; Objectives
Section 1.2 Projects
Section 1.3 Entry into Force; Compact Term
Article II. Funding and Resources
Section 2.1 MCC Funding
Section 2.2 Government Resources
Section 2.3 Limitations on the Use or Treatment of MCC Funding
Section 2.4 Incorporation; Notice; Clarification
Section 2.5 Refunds; Violation
Section 2.6 Bilateral Agreement
Article III. Implementation
Section 3.1 Implementation Framework
Section 3.2 Government Responsiblities
Section 3.3 Government Deliveries
Section 3.4 Government Assurances
Section 3.5 Implementation Letters; Supplemental Agreements
Section 3.6 Procurement; Awards of Assistance
Section 3.7 Policy Performance; Policy Reforms
Section 3.8 Records and Information; Access; Audits; Review
Section 3.9 Insurance; Performance Guarantees
Section 3.10 Domestic Requirements
Section 3.11 No Conflict
Section 3.12 Reports
Article IV. Conditions Precedent; Deliveries
Section 4.1 Conditions Prior to the Entry into Force and
Deliveries
Section 4.2 Conditions Precedent to MCC Disbursements or Re-
Disbursements
Article V. Final Clauses
Section 5.1 Communications
Section 5.2 Representatives
Section 5.3 Amendments
Section 5.4 Termination; Suspension
Section 5.5 Privileges and Immunities
Section 5.6 Attachments
Section 5.7 Inconsistencies
Section 5.8 Indemnification
Section 5.9 Headings
Section 5.10 Interpretation
Section 5.11 Signatures
Section 5.12 Designation
Section 5.13 Survival
Section 5.14 Consultation
Section 5.15 MCC Status
Section 5.16 Language
Section 5.17 Publicity; Information and Marking
Exhibit A: Definitions
Exhibit B: List of Certain Supplemental Agreements
Schedule 2.1(a)(iii): Compact Implementation Funding
Annex I: Program Description
Schedule 1: Airport Improvement Project
Schedule 2: Industrial Park Project
Schedule 3: Alatona Irrigation Project
Annex II: Summary of Multi-Year Financial Plan
Exhibit A: Multi-Year Financial Plan Summary
Annex III: Description of the M&E Plan
Millennium Challenge Compact
This Millennium Challenge Compact (the ``Compact'') is made between
the United States of America, acting through the Millennium Challenge
Corporation, a United States Government corporation (``MCC'') and the
Government of the Republic of Mali (the ``Government'') (referred to
herein individually as a ``Party'' and collectively, the ``Parties'').
A compendium of capitalized terms defined herein is included in Exhibit
A attached hereto.
Recitals
Whereas, MCC, acting through its Board of Directors, has selected
the Republic of Mali (``Mali'') as eligible to present to MCC a
proposal for the use of Millennium Challenge Account (``MCA'')
assistance to help facilitate poverty reduction through economic growth
in Mali;
Whereas, the Government has carried out a consultative process with
the country's private sector and civil society to outline the country's
priorities for the use of MCA assistance and developed a proposal,
which final proposal was submitted to MCC on October 28, 2005 (the
``Proposal'');
Whereas, the Proposal focused on, among others, increasing farmer
incomes through modernizing Mali's agricultural sector, together with
investments in developing transportation infrastructure and rural
institutions, all designed to dismantle obstacles to realizing Mali's
agricultural potential as an engine of economic growth;
Whereas, MCC has evaluated the Proposal and related documents to
determine whether the Proposal is consistent with core MCA principles
and includes projects and related activities that will advance the
progress of Mali towards achieving poverty reduction through economic
growth; and
Whereas, based on MCC's evaluation of the Proposal and related
documents and subsequent discussions and negotiations between the
Parties, the Government and MCC determined to enter into this Compact
to implement a program using MCC Funding to advance Mali's progress
towards poverty reduction through economic growth (the ``Program'');
Now, Therefore, in consideration of the foregoing and the mutual
covenants and agreements set forth herein, the Parties hereby agree as
follows:
Article I. Purpose and Term
Section 1.1 Compact Goal; Objectives
The goal of this Compact is to reduce poverty through economic
growth in Mali by increasing production and productivity of agriculture
and small and medium-sized enterprises, as well as expanding Mali's
access to markets and trade (the ``Compact Goal''). The key to
advancing the Compact Goal is through the development of critical
infrastructure and policy reform for productive sectors and addressing
Mali's constraints to growth by capitalizing on two of its major
assets, the Bamako-S[eacute]nou International Airport (the
``Airport''), the gateway for regional and international trade, and the
agricultural potential of the Niger River (collectively, the ``Program
Objective''). The Parties have identified the following project-level
objectives (each, a ``Project Objective'') of this Compact to advance
the Program Objective, and thus the Compact Goal, each of which is
described in more detail in the Annexes attached hereto:
(a) Establish an independent and secure link to the regional and
global economy through infrastructure investments at the Airport and
policy reform of the national air transport system (the ``Bamako-
S[eacute]nou Airport Improvement Project Objective'');
(b) Develop a platform for industrial activity to be located within
the Airport domain in response to the growing demand for well managed
and serviced industrial land (the ``Industrial Park Project
Objective''); and
(c) Increase the agricultural production and productivity in the
Alatona zone of the Office du Niger (``ON'') through the construction
of a road, irrigation infrastructure, social infrastructure,
agricultural services, land allocation and increased access to credit
(the ``Alatona Irrigation Project Objective'').
The Government expects to achieve, and shall use its best efforts
to ensure the achievement of, the Compact Goal, Program Objective and
Project Objectives during the Compact Term. The Program Objective and
the individual Project Objectives are collectively referred to herein
as ``Objectives'' and each individually as an ``Objective.''
Section 1.2 Projects
The Annexes attached hereto describe the specific projects, the
policy reforms and other activities related thereto (each, a
``Project'') that the Government will carry out, or cause to be carried
out, in furtherance of this Compact to achieve the Objectives and the
Compact Goal.
Section 1.3 Entry into Force; Compact Term
This Compact shall enter into force on the date of the last letter
in an exchange of letters between the Principal Representatives of each
Party confirming that each Party has
[[Page 69232]]
completed its domestic requirements for entry into force of this
Compact (including as set forth in Section 3.10) and that all
conditions set forth in Section 4.1 have been satisfied by the
Government and MCC (the ``Entry into Force''). This Compact shall
remain in force for five (5) years from the Entry into Force, unless
earlier terminated in accordance with Section 5.4 (the ``Compact
Term'').
Article II. Funding and Resources
Section 2.1 MCC Funding
(a) MCC's Contribution. MCC hereby grants to the Government,
subject to the terms and conditions of this Compact, an amount not to
exceed Four Hundred Sixty Million and Eight Hundred Eleven Thousand One
Hundred Sixty Four United States Dollars (US$ 460,811,164) (``MCC
Funding'') during the Compact Term to enable the Government to
implement the Program and achieve the Objectives.
(i) Subject to Sections 2.1(a)(ii), 2.2(b) and 5.4(b), the
allocation of MCC Funding within the Program and among and within the
Projects shall be as generally described in Annex II or as otherwise
agreed upon by the Parties from time to time.
(ii) If at any time MCC determines that a condition precedent to an
MCC Disbursement has not been satisfied, MCC may, upon written notice
to the Government, reduce the total amount of MCC Funding by an amount
equal to the amount estimated in the applicable Detailed Budget for the
Program, Project, Project Activity or sub-activity for which such
condition precedent has not been met. Upon the expiration or
termination of this Compact, (A) any amounts of MCC Funding not
disbursed by MCC to the Government shall be automatically released from
any obligation in connection with this Compact and (B) any amounts of
MCC Funding disbursed by MCC to the Government as provided in Section
2.1(b)(i), but not re-disbursed as provided in Section 2.1(b)(ii) or
otherwise incurred as permitted pursuant to Section 5.4(e) prior to the
expiration or termination of this Compact, shall be returned to MCC in
accordance with Section 2.5(a)(ii).
(iii) Notwithstanding any other provision of this Compact and
pursuant to the authority of Section 609(g) of the Millennium Challenge
Act of 2003, as amended (the ``Act''), upon the conclusion of this
Compact (and without regard to the satisfaction of all of the
conditions for Entry into Force required under Section 1.3), MCC shall
make available up to Nine Million Two Hundred Thousand United States
Dollars (US$ 9,200,000) (``Compact Implementation Funding'') to
facilitate certain aspects of Compact implementation as described in
Schedule 2.1(a)(iii) attached hereto; provided, such Compact
Implementation Funding shall be subject to (A) the limitations on the
use or treatment of MCC Funding set forth in Section 2.3, as if such
provision were in full force and effect, and (B) any other requirements
for, and limitations on the use of, such Compact Implementation Funding
as may be required by MCC in writing; provided further, that any
Compact Implementation Funding granted in accordance with this Section
2.1(a)(iii) shall be included in, and not additional to, the total
amount of MCC Funding; and provided further, any obligation to provide
such Compact Implementation Funding shall expire upon the expiration or
termination of this Compact or five (5) years from the conclusion of
this Compact, whichever occurs sooner, and in accordance with Section
5.4(e). Notwithstanding anything to the contrary in this Compact, this
Section 2.1(a)(iii) shall provisionally apply, prior to Entry into
Force, upon execution of this Compact by the Parties.
(b) Disbursements.
(i) Disbursements of MCC Funding. MCC shall from time to time make
disbursements of MCC Funding (each such disbursement, an ``MCC
Disbursement'') to a Permitted Account or through such other mechanism
agreed by the Parties under and in accordance with the procedures and
requirements set forth in Annex I, the Disbursement Agreement or as
otherwise provided in any other Supplemental Agreement.
(ii) Re-Disbursements of MCC Funding. The release of MCC Funding
from a Permitted Account (each such release, a ``Re-Disbursement'')
shall be made in accordance with the procedures and requirements set
forth in Annex I, the Disbursement Agreement or as otherwise provided
in any other Supplemental Agreement.
(c) Interest. Unless the Parties agree otherwise in writing, any
interest or other earnings on MCC Funding that accrue (collectively,
``Accrued Interest'') shall be held in a Permitted Account and accrue
in accordance with the requirements for the accrual and treatment of
Accrued Interest as specified in Annex I or any Supplemental Agreement.
On a quarterly basis and upon the termination or expiration of this
Compact, the Government shall return, or ensure the return of, all
Accrued Interest to any United States Government account designated by
MCC.
(d) Currency; Conversion. The Government shall ensure that all MCC
Funding that is held in any Permitted Account shall be denominated in
the currency of the United States of America (``United States
Dollars,'' ``US$'' or ``$'') prior to Re-Disbursement. To the extent
that any amount of MCC Funding held in United States Dollars must be
converted into the currency of Mali for any purpose, including for any
Re-Disbursement or any transfer of MCC Funding into a Local Account,
the Government shall ensure that such amount is converted consistent
with the requirements of the Bank Agreement or any other Supplemental
Agreement between the Parties.
(e) Guidance. From time to time, MCC may provide guidance to the
Government through Implementation Letters on the frequency, form and
content of requests for MCC Disbursements and Re-Disbursements or any
other matter relating to MCC Funding. The Government shall apply such
guidance in implementing this Compact.
Section 2.2 Government Resources
(a) The Government shall provide or cause to be provided such
Government funds and other resources, and shall take or cause to be
taken such actions, including obtaining all necessary approvals and
consents, as are specified in this Compact or in any Supplemental
Agreement to which the Government is a party or as are otherwise
necessary and appropriate effectively to carry out the Government
Responsibilities or other responsibilities or obligations of the
Government under or in furtherance of this Compact during the Compact
Term and through the completion of any post-Compact Term activities,
audits or other responsibilities.
(b) If at any time during the Compact Term, the Government
materially reallocates or reduces the allocation in its national budget
or any other governmental authority of Mali at a departmental,
municipal, regional or other jurisdictional level materially
reallocates or reduces the allocation in its respective budget of the
normal and expected resources that the Government or such other
governmental authority, as applicable, would have otherwise received or
budgeted, from external or domestic sources, for the activities
contemplated herein, the Government shall notify MCC in writing within
fifteen (15) days of such reallocation or reduction, such notification
to contain information regarding the amount of the
[[Page 69233]]
reallocation or reduction, the affected activities, and an explanation
for the reallocation or reduction. In the event that MCC independently
determines, upon review of the executed national annual budget that
such a material reallocation or reduction of resources has occurred,
MCC shall notify the Government and, following such notification, the
Government shall provide a written explanation for such reallocation or
reduction and MCC may (i) reduce, in its sole discretion, the total
amount of MCC Funding or any MCC Disbursement by an amount equal to the
amount estimated in the applicable Detailed Budget for the activity for
which funds were reduced or reallocated or (ii) otherwise suspend or
terminate MCC Funding in accordance with Section 5.4(b).
(c) The Government shall use its best efforts to ensure that all
MCC Funding is fully reflected and accounted for in the annual budget
of Mali on a multi-year basis.
Section 2.3 Limitations on the Use or Treatment of MCC Funding
(a) Abortions and Involuntary Sterilizations. The Government shall
ensure that MCC Funding shall not be used to undertake, fund or
otherwise support any activity that is subject to prohibitions on use
of funds contained in (i) paragraphs (1) through (3) of section 104(f)
of the Foreign Assistance Act of 1961 (22 U.S.C. 2151b(f)(1)-(3)), a
United States statute, which prohibitions shall apply to the same
extent and in the same manner as such prohibitions apply to funds made
available to carry out Part I of such Act; or (ii) any provision of law
comparable to the eleventh and fourteenth provisos under the heading
``Child Survival and Health Programs Fund'' of division E of Public Law
108-7 (117 Stat. 162), a United States statute.
(b) United States Job Loss or Displacement of Production. The
Government shall ensure that MCC Funding shall not be used to
undertake, fund or otherwise support any activity that is likely to
cause a substantial loss of United States jobs or a substantial
displacement of United States production, including:
(i) Providing financial incentives to relocate a substantial number
of United States jobs or cause a substantial displacement of production
outside the United States;
(ii) Supporting investment promotion missions or other travel to
the United States with the intention of inducing United States firms to
relocate a substantial number of United States jobs or a substantial
amount of production outside the United States;
(iii) Conducting feasibility studies, research services, studies,
travel to or from the United States, or providing insurance or
technical and management assistance, with the intention of inducing
United States firms to relocate a substantial number of United States
jobs or cause a substantial displacement of production outside the
United States;
(iv) Advertising in the United States to encourage United States
firms to relocate a substantial number of United States jobs or cause a
substantial displacement of production outside the United States;
(v) Training workers for firms that intend to relocate a
substantial number of United States jobs or cause a substantial
displacement of production outside the United States;
(vi) Supporting a United States office of an organization that
offers incentives for United States firms to relocate a substantial
number of United States jobs or cause a substantial displacement of
production outside the United States; or
(vii) Providing general budget support for an organization that
engages in any activity prohibited above.
(c) Military Assistance and Training. The Government shall ensure
that MCC Funding shall not be used to undertake, fund or otherwise
support the purchase or use of goods or services for military purposes,
including military training, or to provide any assistance to the
military, police, militia, national guard or other quasi-military
organization or unit.
(d) Prohibition of Assistance Relating to Environmental, Health or
Safety Hazards. The Government shall ensure that MCC Funding shall not
be used to undertake, fund or otherwise support any activity that is
likely to cause a significant environmental, health, or safety hazard.
Unless MCC and the Government agree otherwise in writing, the
Government shall ensure that activities undertaken, funded or otherwise
supported in whole or in part (directly or indirectly) by MCC Funding
comply with environmental guidelines delivered by MCC to the Government
or posted by MCC on its Web site or otherwise publicly made available,
as such guidelines may be amended from time to time (the
``Environmental Guidelines''), including any definition of ``likely to
cause a significant environmental, health, or safety hazard'' as may be
set forth in such Environmental Guidelines.
(e) Taxation.
(i) Taxes. The Government shall ensure that the Program, MCC
Funding and Accrued Interest, and any other Program Asset, shall be
free from any taxes imposed under the laws currently or hereafter in
effect in Mali during the Compact Term. This exemption shall apply to
any use of MCC Funding and Accrued Interest, and any other Program
Asset, including any Exempt Uses, and to any work performed under or
activities undertaken in furtherance of this Compact by any person or
entity (including contractors and grantees) funded by MCC Funding, and
shall apply to all taxes, tariffs, duties, and other levies (each a
``Tax'' and collectively, ``Taxes''), including:
(1) To the extent attributable to MCC Funding, income taxes and
other taxes on profit or businesses imposed on organizations or
entities, other than nationals of Mali, receiving MCC Funding,
including taxes on the acquisition, ownership, rental, disposition or
other use of real or personal property, taxes on investment or deposit
requirements and currency controls in Mali, or any other tax, duty,
charge or fee of whatever nature, except fees for specific services
rendered; for purposes of this Section 2.3(e), the term ``national''
refers to organizations established under the laws currently or
hereafter in effect in Mali, other than MCA-Mali or any other entity
established solely for purposes of managing or overseeing the
implementation of the Program or any wholly-owned subsidiaries,
divisions, or Affiliates of entities not registered or established
under the laws currently or hereafter in effect in Mali;
(2) Customs duties, tariffs, import and export taxes, or other
levies on the importation, use and re-exportation of goods, services,
or the personal belongings and effects, including personally-owned
automobiles, for Program use or the personal use of individuals who are
neither citizens nor permanent residents of Mali and who are present in
Mali for purposes of carrying out the Program or their family members,
including all charges based on the value of such imported goods;
(3) Taxes on the income or personal property of all individuals who
are neither citizens nor permanent residents of Mali, including income
and social security taxes of all types and all taxes on the personal
property owned by such individuals, to the extent such income or
property are attributable to MCC Funding; and
(4) Taxes or duties levied on the last transaction for the purchase
of goods or services funded by MCC Funding, including sales taxes,
tourism taxes, value-added taxes or other similar charges. For purposes
of this Section 2.3(e)(i)(4), the term ``last transaction'' refers to
the last transaction by which
[[Page 69234]]
the goods or services were purchased for use in the activities funded
by MCC Funding.
(ii) This Section 2.3(e) shall apply, but is not limited, to (A)
any transaction, service, activity, contract, grant or other
implementing agreement funded in whole or in part by MCC Funding; (B)
any supplies, equipment, materials, property or other goods (referred
to herein collectively as ``goods'') or funds introduced into, acquired
in, used or disposed of in, or imported into or exported from, Mali by
MCC, or by any person or entity (including contractors and grantees) as
part of, or in conjunction with, MCC Funding or the Program; (C) any
contractor, grantee, or other organization carrying out activities
funded in whole or in part by MCC Funding; and (D) any employee of such
organizations (the uses set forth in clauses (A) through (D) are
collectively referred to herein as ``Exempt Uses'').
(iii) If a Tax has been levied and paid contrary to the
requirements of this Section 2.3(e), whether inadvertently, due to the
impracticality of implementation of this provision with respect to
certain types or amounts of taxes, or otherwise, the Government shall
refund promptly to an account designated by MCC the amount of such Tax
in the currency of Mali, within thirty (30) days (or such other period
as may be agreed in writing by the Parties) after the Government is
notified in writing of such levy and tax payment, in accordance with
procedures agreed by the Parties, whether by MCC or otherwise;
provided, however, the Government shall apply national funds to satisfy
its obligations under this paragraph and no MCC Funding, Accrued
Interest, or any assets, goods, or property (real, tangible, or
intangible) purchased or financed in whole or in part (directly or
indirectly) by MCC Funding (collectively, the ``Program Assets'') may
be applied by the Government in satisfaction of its obligations under
this paragraph.
(iv) At MCC's request, the Parties shall memorialize in a mutually
acceptable Supplemental Agreement, Implementation Letter or other
suitable document the mechanisms for implementing this Section 2.3(e),
including (A) a formula for determining refunds for Taxes paid, the
amount of which is not susceptible to precise determination; (B) a
mechanism for ensuring the tax-free importation, use, and re-
exportation of goods, services, or the personal belongings of
individuals (including all Providers) described in Section 2.3(e)(i)(2)
above; (C) a requirement for the provision by the Government of a tax-
exemption certificate which expressly includes, inter alia, the thirty
(30) day refund requirement of Section 2.3(e)(iii) above; and (D) any
other appropriate Government action to facilitate the administration of
this Section 2.3(e).
(f) Alteration. The Government shall ensure that no MCC Funding,
Accrued Interest or other Program Asset shall be subject to any
impoundment, rescission, sequestration or any provision of law now or
hereafter in effect in Mali that would have the effect of requiring or
allowing any impoundment, rescission or sequestration of any MCC
Funding, Accrued Interest or other Program Asset.
(g) Liens or Encumbrances. The Government shall ensure that no MCC
Funding, Accrued Interest or other Program Asset shall be subject to
any lien, attachment, enforcement of judgment, pledge, or encumbrance
of any kind (each a ``Lien''), except with the prior approval of MCC in
accordance with Section 3(c) of Annex I. In the event of the imposition
of any Lien not so approved, the Government shall promptly seek the
release of such Lien and, if required by final non-appealable order,
shall pay any amounts owed to obtain such release; provided, however,
the Government shall apply national funds to satisfy its obligations
under this Section 2.3(g) and no MCC Funding, Accrued Interest, or
other Program Asset may be applied by the Government in satisfaction of
its obligations under this Section 2.3(g).
(h) Other Limitations. The Government shall ensure that the use or
treatment of MCC Funding, Accrued Interest, and other Program Assets
shall be subject to and in conformity with such other limitations (i)
as required by the applicable law of the United States of America now
or hereafter in effect during the Compact Term, (ii) as advisable under
or required by applicable United States Government policies now or
hereafter in effect during the Compact Term, or (iii) to which the
Parties may otherwise agree in writing.
(i) Utilization of Goods, Services and Works. The Government shall
ensure that any Program Assets and any services, facilities or works
funded in whole or in part (directly or indirectly) by MCC Funding,
unless otherwise agreed by the Parties in writing, shall be used solely
in furtherance of this Compact.
(j) Notification of Applicable Laws and Policies. MCC shall notify
the Government of any applicable United States law or policy affecting
the use or treatment of MCC Funding, whether or not specifically
identified in this Section 2.3, and shall provide to the Government a
copy of the text of any such applicable law and a written explanation
of any such applicable policy.
Section 2.4 Incorporation; Notice; Clarification
(a) The Government shall include, or ensure the inclusion of, all
of the requirements set forth in Section 2.3 in all Supplemental
Agreements (except for Supplemental Agreements with Providers defined
in Section 2.4(b)(ii) below) to which MCC is not a party.
(b) The Government shall ensure notification of all of the
requirements set forth in Section 2.3 to any Provider and all relevant
officers, directors, employees, agents, representatives, Affiliates,
contractors, sub-contractors, grantees and sub-grantees of any
Provider. The term ``Provider'' shall mean (i) MCA-Mali, (ii) any
Government Affiliate or Permitted Designee (other than MCA-Mali) that
receives or utilizes any Program Asset in carrying out activities in
furtherance of this Compact, or (iii) any third party who receives at
least US$ 50,000 in the aggregate of MCC Funding (other than employees
of MCA-Mali) during the Compact Term or such other amount as the
Parties may agree in writing, whether directly from MCC, indirectly
through Re-Disbursements, or otherwise.
(c) In the event the Government or any Provider requires
clarification from MCC as to whether an activity contemplated to be
undertaken in furtherance of this Compact violates or may violate any
provision of Section 2.3, the Government shall notify MCC in writing
and provide in such notification a detailed description of the activity
in question. In such event, the Government shall not proceed, and shall
use its best efforts to ensure that no relevant Provider proceeds, with
such activity, and the Government shall ensure that no Re-Disbursements
shall be made for such activity, until MCC advises the Government or
such Provider in writing that the activity is permissible. MCC shall
use good faith efforts to respond timely to such notification for
clarification.
Section 2.5 Refunds; Violation
(a) Notwithstanding the availability to MCC, or exercise by MCC, of
any other remedies, including under international law, this Compact or
any Supplemental Agreement:
(i) If any amount of MCC Funding, Accrued Interest or any other
Program Asset is used for any purpose prohibited under this Article II
or otherwise in violation of any of the terms and
[[Page 69235]]
conditions of this Compact, any guidance in any Implementation Letter,
or any Supplemental Agreement between the Parties, then MCC, upon
written notice, may require the Government to repay promptly to MCC to
an account designated by MCC, or to others as MCC may direct, the
amount of such misused MCC Funding or Accrued Interest, or the cash
equivalent of the value of any other misused Program Asset, in United
States Dollars, plus any interest that accrued or would have accrued
thereon, within thirty (30) days after the Government is notified,
whether by MCC or other duly authorized representative of the United
States Government, of such prohibited use; provided, however, the
Government shall apply national funds to satisfy its obligations under
this Section 2.5(a)(i) and no MCC Funding, Accrued Interest, or any
other Program Asset may be applied by the Government in satisfaction of
its obligations under this Section 2.5(a)(i); and
(ii) Upon the termination or suspension of all or any portion of
this Compact or upon the expiration of this Compact, the Government
shall, subject to the requirements of Sections 5.4(e) and 5.4(f),
refund, or ensure the refund of, to such account designated by MCC the
amount of any MCC Funding, plus any Accrued Interest, promptly, but in
no event later than thirty (30) days after the Government receives
MCC's request for such refund; provided, that if this Compact is
terminated or suspended in part, MCC may request a refund for only the
amount of MCC Funding, plus any Accrued Interest, then allocated to the
terminated or suspended portion; provided further, that any refund of
MCC Funding or Accrued Interest shall be to such account(s) as
designated by MCC.
(b) Notwithstanding any other provision in this Compact or any
other agreement to the contrary, MCC's right under this Section 2.5 for
a refund shall continue during the Compact Term and for a period of (i)
five (5) years thereafter or (ii) one (1) year after MCC receives
actual knowledge of such violation, whichever is later.
(c) If MCC determines that any activity or failure to act violates,
or may violate, any Section in this Article II, then MCC may refuse any
further MCC Disbursements for or conditioned upon such activity, and
may take any action to prevent any Re-Disbursement related to such
activity.
Section 2.6 Bilateral Agreement
All MCC Funding shall be considered United States assistance under
the Economic and Technical Assistance Agreement by and between the
Government of the United States of America and the Government, dated
January 4, 1961, as amended from time to time (the ``Bilateral
Agreement''). If there are conflicts or inconsistencies between any
parts of this Compact and the Bilateral Agreement, as either may be
amended from time to time, the provisions of this Compact shall prevail
over those of the Bilateral Agreement.
Article III. Implementation
Section 3.1 Implementation Framework
This Compact shall be implemented by the Parties in accordance with
this Article III and as further specified in the Annexes and in
relevant Supplemental Agreements.
Section 3.2 Government Responsibilities
(a) The Government shall have principal responsibility for
oversight and management of the implementation of the Program (i) in
accordance with the terms and conditions specified in this Compact and
relevant Supplemental Agreements, (ii) in accordance with all
applicable laws then in effect in Mali, and (iii) in a timely and cost-
effective manner and in conformity with sound technical, financial and
management practices (collectively, the ``Government
Responsibilities''). Unless otherwise expressly provided, any reference
to the Government Responsibilities or any other responsibilities or
obligations of the Government herein shall be deemed to apply to any
Government Affiliate and any of their respective directors, officers,
employees, contractors, sub-contractors, grantees, sub-grantees, agents
or representatives.
(b) The Government shall ensure that no person or entity shall
participate in the selection, award, administration or oversight of a
contract, grant or other benefit or transaction funded in whole or in
part (directly or indirectly) by MCC Funding, in which (i) the entity,
the person, members of the person's immediate family or household or
his or her business partners, or organizations controlled by or
substantially involving such person or entity, has or have a direct or
indirect financial or other interest, or (ii) the person or entity is
negotiating or has any arrangement concerning prospective employment,
unless such person or entity has first disclosed in writing to the
Government the conflict of interest and, following such disclosure, the
Parties agree in writing to proceed notwithstanding such conflict. The
Government shall ensure that no person or entity involved in the
selection, award, administration, oversight or implementation of any
contract, grant or other benefit or transaction funded in whole or in
part (directly or indirectly) by MCC Funding shall solicit or accept
from or offer to a third party or seek or be promised (directly or
indirectly) for itself or for another person or entity any gift,
gratuity, favor or benefit, other than items of de minimis value and
otherwise consistent with such guidance as MCC may provide from time to
time.
(c) The Government shall not designate any person or entity,
including any Government Affiliate, to implement, in whole or in part,
this Compact or any Supplemental Agreement between the Parties
(including any Government Responsibilities or any other
responsibilities or obligations of the Government under this Compact or
any Supplemental Agreement between the Parties) or to exercise any
rights of the Government under this Compact or any Supplemental
Agreement between the Parties, except as expressly provided herein or
with the prior written consent of MCC; provided, however, the
Government may designate MCA-Mali or, with the prior written consent of
MCC, such other mutually acceptable persons or entities (each, a
``Permitted Designee'') to implement some or all of the Government
Responsibilities or any other responsibilities or obligations of the
Government or to exercise any rights of the Government under this
Compact or any Supplemental Agreement between the Parties, each in
accordance with the terms and conditions set forth in this Compact or
such Supplemental Agreement (referred to herein collectively as
``Designated Rights and Responsibilities''). Notwithstanding any
provision herein or any other agreement to the contrary, no such
designation shall relieve the Government of such Designated Rights and
Responsibilities, for which the Government shall retain ultimate
responsibility. In the event that the Government designates any person
or entity, including any Government Affiliate, to implement any portion
of the Government Responsibilities or other responsibilities or
obligations of the Government, or to exercise any rights of the
Government under this Compact or any Supplemental Agreement between the
Parties, in accordance with this Section 3.2(c), then the Government
shall (i) cause such person or entity to perform such Designated Rights
and Responsibilities in the same manner and to the full extent to which
the Government is
[[Page 69236]]
obligated to perform such Designated Rights and Responsibilities; (ii)
ensure that such person or entity does not assign, delegate or contract
(or otherwise transfer) any of such Designated Rights and
Responsibilities to any person or entity; and (iii) cause such person
or entity to certify to MCC in writing that it will so perform such
Designated Rights and Responsibilities and will not assign, delegate,
or contract (or otherwise transfer) any of such Designated Rights and
Responsibilities to any person or entity without the prior written
consent of MCC.
(d) The Government shall, upon a request from MCC, execute, or
ensure the execution of, an assignment to MCC of any cause of action
which may accrue to the benefit of the Government, a Government
Affiliate or any Permitted Designee, including MCA-Mali, in connection
with or arising out of any activities funded in whole or in part
(directly or indirectly) by MCC Funding.
(e) The Government shall ensure that (i) no decision of MCA-Mali is
modified, supplemented, unduly influenced or rescinded by any
governmental authority, except by a non-appealable judicial decision,
and (ii) the authority of MCA-Mali shall not be expanded, restricted,
or otherwise modified, except in accordance with this Compact, any
Governing Document or any other Supplemental Agreement between the
Parties.
(f) The Government shall ensure that all persons and individuals
that enter into agreements to provide goods, services or works under
the Program or in furtherance of this Compact shall do so in accordance
with the Procurement Guidelines and shall obtain all necessary
immigration, business and other permits, licenses, consents and
approvals to enable them and their personnel to fully perform under
such agreements.
Section 3.3 Government Deliveries
The Government shall proceed, and cause others to proceed, in a
timely manner to deliver to MCC all reports, notices, certificates,
documents or other deliveries required to be delivered by the
Government under this Compact or any Supplemental Agreement between the
Parties, in form and substance as set forth in this Compact or in any
such Supplemental Agreement.
Section 3.4 Government Assurances
The Government hereby provides the following assurances to MCC that
as of the date this Compact is signed:
(a) The information contained in the Proposal and any agreement,
report, statement, communication, document or otherwise delivered or
communicated to MCC by or on behalf of the Government on or after the
date of the submission of the Proposal (i) are true, correct and
complete in all material respects and (ii) do not omit any fact known
to the Government that if disclosed would (1) alter in any material
respect the information delivered, (2) likely have a material adverse
effect on the Government's ability to effectively implement, or ensure
the effective implementation of, the Program or any Project or to
otherwise carry out its responsibilities or obligations under or in
furtherance of this Compact, or (3) have likely adversely affected
MCC's determination to enter into this Compact or any Supplemental
Agreement between the Parties.
(b) Unless otherwise disclosed in writing to MCC, the MCC Funding
made available hereunder is in addition to the normal and expected
resources that the Government usually receives or budgets for the
activities contemplated herein from external or domestic sources.
(c) This Compact does not conflict and will not conflict with any
international agreement or obligation to which the Government is a
party or by which it is bound.
(d) No payments have been (i) received by any official of the
Government or any other Governmental Affiliate in connection with the
procurement of goods, services or works to be undertaken or funded in
whole or in part (directly or indirectly) by MCC Funding, except fees,
taxes, or similar payments legally established in Mali (subject to
Section 2.3(e)) and consistent with the applicable requirement of the
laws of Mali or (ii) made to any third party, in connection with or in
furtherance of this Compact, in violation of the United States Foreign
Corrupt Practices Act of 1977, as amended (15 U.S.C. 78a et seq.).
Section 3.5 Implementation Letters; Supplemental Agreements
(a) MCC may, from time to time, issue one or more letters to
furnish additional information or guidance to assist the Government in
the implementation of this Compact (each, an ``Implementation
Letter''). The Government shall apply such guidance in implementing
this Compact.
(b) The details of any funding, implementing and other arrangements
in furtherance of this Compact may be memorialized in one or more
agreements or other instruments between (i) the Government (or any
Government Affiliate or Permitted Designee) and MCC, (ii) MCC or the
Government (or any Government Affiliate or Permitted Designee) and any
third party, including any of the Providers or Permitted Designee, or
(iii) Providers where neither MCC nor the Government is a party,
before, on, or after the Entry into Force (each, a ``Supplemental
Agreement''). The Government shall deliver, or cause to be delivered,
to MCC within five (5) days of its request, or such other period as may
be specified in the Disbursement Agreement, the execution copy of any
Supplemental Agreement to which MCC is not a party.
Section 3.6 Procurement; Awards of Assistance
(a) The Government shall ensure that the procurement of all goods,
services and works by the Government or any Provider in furtherance of
this Compact shall be consistent with the procurement guidelines (the
``Procurement Guidelines'') reflected in the Disbursement Agreement or
other Supplemental Agreement between the Government (and a mutually
acceptable Government Affiliate or MCA-Mali) and MCC, which Procurement
Guidelines shall include the following requirements:
(i) Internationally accepted procurement rules with open, fair and
competitive procedures are used in a transparent manner to solicit,
award and administer contracts, grants, and other agreements and to
procure goods, services and works;
(ii) Solicitations for goods, services, and works shall be based
upon a clear and accurate description of the goods, services or works
to be acquired;
(iii) Contracts shall be awarded only to qualified and capable
contractors that have the capability and willingness to perform the
contracts in accordance with the terms and conditions of the applicable
contracts and on a cost effective and timely basis; and
(iv) No more than a commercially reasonable price, as determined,
for example, by a comparison of price quotations and market prices,
shall be paid to procure goods, services, and works.
(b) The Government shall maintain, and shall use its best efforts
to ensure that all Providers maintain, records regarding the receipt
and use of goods, services and works acquired in furtherance of this
Compact, the nature and extent of solicitations of prospective
suppliers of goods, services and works acquired in furtherance of this
Compact, and the basis of award of contracts, grants and other
agreements in furtherance of this Compact.
(c) The Government shall use its best efforts to ensure that
information,
[[Page 69237]]
including solicitations, regarding procurement, grant and other
agreement actions funded (or to be funded) in whole or in part
(directly or indirectly) by MCC Funding shall be made publicly
available in the manner outlined in the Procurement Guidelines or in
any other manner agreed upon by the Parties in writing.
(d) The Government shall ensure that no goods, services or works
that are funded in whole or in part (directly or indirectly) by MCC
Funding are procured pursuant to orders or contracts firmly placed or
entered into prior to the Entry into Force, except as the Parties may
otherwise agree in writing.
(e) The Government shall ensure that MCA-Mali and any other
Permitted Designee follows, and uses its best efforts to ensure that
all Providers follow, the Procurement Guidelines in procuring
(including soliciting) goods, services and works and in awarding and
administering contracts, grants and other agreements in furtherance of
this Compact, and shall furnish MCC evidence of the adoption of the
Procurement Guidelines by MCA-Mali no later than the time specified in
the Disbursement Agreement.
(f) The Government shall include, or ensure the inclusion of, the
requirements of this Section 3.6 into all Supplemental Agreements
between the Government, any Government Affiliate or Permitted Designee
or any of their respective directors, officers, employees, Affiliates,
contractors, sub-contractors, grantees, sub-grantees, representatives
or agents, on the one hand, and a Provider, on the other hand.
Section 3.7 Policy Performance; Policy Reforms
In addition to the specific policy and legal reform commitments
identified in Annex I and the Schedules thereto, the Government shall
seek to maintain and to improve its level of performance under the
policy criteria identified in Section 607 of the Act, and the MCA
selection criteria and methodology published by MCC pursuant to Section
607 of the Act from time to time (``MCA Eligibility Criteria'').
Section 3.8 Records and Information; Access; Audits; Reviews
(a) Reports and Information. The Government shall furnish to MCC,
and shall use its best efforts to ensure that all Providers and any
other third party receiving MCC Funding, as appropriate, furnish to the
Government (and the Government shall provide to MCC), any records and
other information required to be maintained under this Section 3.8 and
such other information, documents and reports as may be necessary or
appropriate for the Government to effectively carry out its obligations
under this Compact, including under Section 3.12.
(b) Government Books and Records. The Government shall maintain,
and shall use its best efforts to ensure that all Providers maintain,
accounting books, records, documents and other evidence relating to
this Compact adequate to show, to the satisfaction of MCC, without
limitation, the use of all MCC Funding, including all costs incurred by
the Government and the Providers in furtherance of this Compact, the
receipt, acceptance and use of goods, services and works acquired in
furtherance of this Compact by the Government and the Providers,
agreed-upon cost sharing requirements, the nature and extent of
solicitations of prospective suppliers of goods, services and works
acquired by the Government and the Providers in furtherance of this
Compact, the basis of award of Government and other contracts and
orders in furtherance of this Compact, the overall progress of the
implementation of the Program, and any documents required by this
Compact or any Supplemental Agreement between the Parties or reasonably
requested by MCC upon reasonable notice (``Compact Records''). The
Government shall maintain, and shall use its best efforts to ensure
that all Covered Providers maintain, Compact Records in accordance with
generally accepted accounting principles prevailing in the United
States, or at the Government's option and with the prior written
approval by MCC, other accounting principles, such as those (i)
prescribed by the International Accounting Standards Committee (an
affiliate of the International Federation of Accountants) or (ii) then
prevailing in Mali. Compact Records shall be maintained for at least
five (5) years after the end of the Compact Term or for such longer
period, if any, required to resolve any litigation, claims or audit
findings or any statutory requirements.
(c) Access. Upon the request of MCC, the Government, at all
reasonable times, shall permit, or cause to be permitted, authorized
representatives of MCC, the Inspector General, the United States
Government Accountability Office, any auditor responsible for an audit
contemplated herein or otherwise conducted in furtherance of this
Compact, and any agents or representatives engaged by MCC or a
Permitted Designee to conduct any assessment, review or evaluation of
the Program, the opportunity to audit, review, evaluate or inspect (i)
activities funded in whole or in part (directly or indirectly) by MCC
Funding or undertaken in connection with the Program, the utilization
of goods and services purchased or funded in whole or in part (directly
or indirectly) by MCC Funding, and (ii) Compact Records, including
those of the Government or any Provider, relating to activities funded
or undertaken in furtherance of, or otherwise relating to, this
Compact. The Government shall use its best efforts to ensure access by
MCC, the Inspector General, the United States Government Accountability
Office or relevant auditor, reviewer or evaluator or their respective
representatives or agents to all relevant directors, officers,
employees, Affiliates, contractors, representatives and agents of the
Government or any Provider.
(d) Audits.
(i) Government Audits. Except as the Parties may otherwise agree in
writing, the Government shall, on at least a semi-annual basis,
conduct, or cause to be conducted, financial audits of all MCC
Disbursements and Re-Disbursements covering the period from signing of
the Compact until the earlier of the following December 31 or June 30
and covering each six month period thereafter ending December 31 and
June 30, through the end of the Compact Term, in accordance with the
following terms. As requested by MCC in writing, the Government shall
use, or cause to be used, or select or cause to be selected, an auditor
named on the approved list of auditors in accordance with the
``Guidelines for Financial Audits Contracted by Foreign Recipients''
(the ``Audit Guidelines'') issued by the Inspector General of the
United States Agency for International Development (the ``Inspector
General''), and as approved by MCC, to conduct such annual audits. Such
audits shall be performed in accordance with such Audit Guidelines and
be subject to quality assurance oversight by the Inspector General in
accordance with such Audit Guidelines. An audit shall be completed and
delivered to MCC no later than ninety (90) days after the first period
to be audited and no later than ninety (90) days after each June 30th
and December 31st thereafter, or such other period as the Parties may
otherwise agree in writing.
(ii) Audits of U.S. Entities. The Government shall ensure that
Supplemental Agreements between the Government or any Provider, on the
one hand, and a United States non-profit organization, on the other
hand, state that the United States organization is subject to the
applicable audit requirements contained in OMB
[[Page 69238]]
Circular A-133, notwithstanding any other provision of this Compact to
the contrary. The Government shall ensure that Supplemental Agreements
between the Government or any Provider, on the one hand, and a United
States for-profit Covered Provider, on the other hand, state that the
United States organization is subject to audit by the cognizant United
States Government agency, unless the Government and MCC agree otherwise
in writing.
(iii) Audit Plan. The Government shall submit, or cause to be
submitted, to MCC no later than twenty (20) days prior to the date of
its adoption a plan, in accordance with the Audit Guidelines, for the
audit of the expenditures of any Covered Providers, which audit plan,
in the form and substance as approved by MCC, the Government shall
adopt, or cause to be adopted, no later than sixty (60) days prior to
the end of the first period to be audited (such plan, the ``Audit
Plan'').
(iv) Covered Provider. A ``Covered Provider'' is (1) a non-United
States Provider that receives (other than pursuant to a direct contract
or agreement with MCC) US$ 300,000 or more of MCC Funding in any MCA-
Mali fiscal year or any other non-United States person or entity that
receives, directly or indirectly, US$ 300,000 or more of MCC Funding
from any Provider in such fiscal year, or (2) any United States
Provider that receives (other than pursuant to a direct contract or
agreement with MCC) US$ 500,000 or more of MCC Funding in any MCA-Mali
fiscal year or any other United States person or entity that receives,
directly or indirectly, US$ 500,000 or more of MCC Funding from any
Provider in such fiscal year.
(v) Corrective Actions. The Government shall use its best efforts
to ensure that Covered Providers take, where necessary, appropriate and
timely corrective actions in response to audits, consider whether a
Covered Provider's audit necessitates adjustment of its own records,
and require each such Covered Provider to permit independent auditors
to have access to its records and financial statements as necessary.
(vi) Audit Reports. The Government shall furnish, or use its best
efforts to cause to be furnished, to MCC an audit report in a form
satisfactory to MCC for each audit required by this Section 3.8, other
than audits arranged for by MCC, no later than ninety (90) days after
the end of the period under audit, or such other time as may be agreed
by the Parties from time to time.
(vii) Other Providers. For Providers who receive MCC Funding
pursuant to direct contracts or agreements with MCC, MCC shall include
appropriate audit requirements in such contracts or agreements and
shall, on behalf of the Government, unless otherwise agreed by the
Parties, conduct the follow-up activities with regard to the audit
reports furnished pursuant to such requirements.
(viii) Audit by MCC. MCC retains the right to perform, or cause to
be performed, the audits required under this Section 3.8 by utilizing
MCC Funding or other resources available to MCC for this purpose, and
to audit, conduct a financial review, or otherwise ensure
accountability of any Provider or any other third party receiving MCC
Funding, regardless of the requirements of this Section 3.8.
(e) Application to Providers. The Government shall include, or
ensure the inclusion of, at a minimum, the requirements of:
(i) Paragraphs (a), (b), (c), (d)(ii), (d)(iii), (d)(v), (d)(vi),
and (d)(viii) of this Section 3.8 into all Supplemental Agreements
between the Government, any Government Affiliate, any Permitted
Designee or any of their respective directors, officers, employees,
Affiliates, contractors, sub-contractors, grantees, sub-grantees,
representatives or agents (each, a ``Government Party''), on the one
hand, and a Covered Provider that is not a non-profit organization
domiciled in the United States, on the other hand;
(ii) Paragraphs (a), (b), (c), (d)(ii), and (d)(viii) of this
Section 3.8 into all Supplemental Agreements between a Government Party
and a Provider that does not meet the definition of a Covered Provider;
and
(iii) Paragraphs (a), (b), (c), (d)(ii), (d)(v) and (d)(viii) of
this Section 3.8 into all Supplemental Agreements between a Government
Party and a Covered Provider that is a non-profit organization
domiciled in the United States.
(f) Reviews or Evaluations. The Government shall conduct, or cause
to be conducted, such performance reviews, data quality reviews,
environmental and social audits, or program evaluations during the
Compact Term or otherwise and in accordance with the M&E Plan or as
otherwise agreed in writing by the Parties.
(g) Cost of Audits, Reviews or Evaluations. MCC Funding may be used
to fund the costs of any audits, reviews or evaluations required under
this Compact, including as reflected on Exhibit A to Annex II, and in
no event shall the Government be responsible for the costs of any such
audits, reviews or evaluations from financial sources other than MCC
Funding.
Section 3.9 Insurance; Performance Guarantees
The Government shall, to MCC's satisfaction, insure or cause to be
insured all Program Assets and shall obtain or cause to be obtained
such other appropriate insurance and other protections to cover against
risks or liabilities associated with the operations of the Program,
including by requiring Providers to obtain adequate insurance and post
adequate performance bonds or other guarantees. MCA-Mali or the
Implementing Entity or Contractor, as applicable, shall be named as the
payee on any such insurance and the beneficiary of any such guarantee,
including performance bonds, to the extent permissible under applicable
laws unless otherwise agreed by the Parties. MCC, and to the extent it
is not named as the insured party, MCA-Mali shall be named as
additional insureds on any such insurance or other guarantee, to the
extent permissible under applicable laws unless otherwise agreed by the
Parties. The Government shall ensure that any proceeds from claims paid
under such insurance or any other form of guarantee shall be used to
replace or repair any loss of Program Assets or to pursue the
procurement of the covered goods, services, works, or otherwise;
provided, however, at MCC's election, such proceeds shall be deposited
in a Permitted Account as designated by MCA-Mali and acceptable to MCC
or as otherwise directed by MCC. To the extent MCA-Mali is held liable
under any indemnification or other similar provision of any agreement
between MCA-Mali, on the one hand, and any other Provider or other
third party, on the other hand, the Government shall pay in full on
behalf of MCA-Mali any such obligation; provided further, the
Government shall apply national funds to satisfy its obligations under
this Section 3.9 and no MCC Funding, Accrued Interest, or Program Asset
may be applied by the Government in satisfaction of its obligations
under this Section 3.9.
Section 3.10 Domestic Requirements
The Government shall proceed in a timely manner to seek
ratification of this Compact as necessary or required by the laws of
Mali, or similar domestic requirement, in order that (a) this Compact
(and any Supplemental Agreement to which MCC is a party) shall be given
the status of an international agreement; (b) no laws of Mali (other
than the Constitution of
[[Page 69239]]
Mali) now or hereafter in effect shall take precedence or prevail over
this Compact (or any Supplemental Agreement to which MCC is a party)
during the Compact Term (or a longer period to the extent provisions of
this Compact remain in force following the expiration of the Compact
Term pursuant to Section 5.13); and (c) each of the provisions of this
Compact (and each of the provisions of any Supplemental Agreement to
which MCC is a party) is valid, binding and in full force and effect
under the laws of Mali. The Government shall initiate such process
promptly after the conclusion of this Compact. Notwithstanding anything
to the contrary in this Compact, this Section 3.10 shall provisionally
apply prior to Entry into Force.
Section 3.11 No Conflict
The Government undertakes not to enter into any agreement in
conflict with this Compact or any Supplemental Agreement during the
Compact Term.
Section 3.12 Reports
The Government shall provide, or cause to be provided, to MCC at
least on each anniversary of the Entry into Force (or such other
anniversary agreed by the Parties in writing) and otherwise within
thirty (30) days of any written request by MCC, or as otherwise agreed
in writing by the Parties, the following information:
(a) The name of each entity to which MCC Funding has been provided;
(b) The amount of MCC Funding provided to such entity;
(c) A description of the Program and each Project funded in
furtherance of this Compact, including:
(i) A statement of whether the Program or any Project was solicited
or unsolicited; and
(ii) A detailed description of the objectives and measures for
results of the Program or Project;
(d) The progress made by Mali toward achieving the Compact Goal and
Objectives;
(e) A description of the extent to which MCC Funding has been
effective in helping Mali to achieve the Compact Goal and Objectives;
(f) A description of the coordination of MCC Funding with other
United States foreign assistance and other related trade policies;
(g) A description of the coordination of MCC Funding with
assistance provided by other donor countries;
(h) Any report, document or filing that the Government, any
Government Affiliate or any Permitted Designee submits to any
government body in connection with this Compact;
(i) Any report or document required to be delivered to MCC under
the Environmental Guidelines, any Audit Plan, or any Implementation
Document; and
(j) Any other report, document or information requested by MCC or
required by this Compact or any Supplemental Agreement between the
Parties.
Article IV. Conditions Precedent; Deliveries
Section 4.1 Conditions Prior to the Entry Into Force and Deliveries
As conditions precedent to the Entry into Force, the Parties shall
satisfy the conditions set forth in this Section 4.1.
(a) The Government (or a mutually acceptable Government Affiliate),
a Permitted Designee, and MCC shall execute a disbursement agreement
(the ``Disbursement Agreement''), which agreement shall be in full
force and effect as of the Entry into Force.
(b) The Government (or a mutually acceptable Government Affiliate),
a Permitted Designee, and MCC shall execute a governance agreement (the
``Governance Agreement''), which agreement shall be in full force and
effect as of the Entry into Force.
(c)(i) The Government shall deliver one or more of the Supplemental
Agreements or other documents identified on Exhibit B attached hereto,
which agreements or other documents shall be fully executed by the
parties thereto and in full force and effect, or (ii) the Government
(or a mutually acceptable Government Affiliate), a Permitted Designee,
and MCC shall execute one or more term sheets that set forth the
material and principal terms and conditions that will be included in
any such Supplemental Agreement or other documents that have not been
entered into or effective as of the Entry into Force (the
``Supplemental Agreement Term Sheets'').
(d) The Government shall deliver a written statement as to the
incumbency and specimen signature of the Principal Representative and
each Additional Representative of the Government executing any document
under this Compact, such written statement to be signed by a duly
authorized official of the Government other than the Principal
Representative or any such Additional Representative.
(e) The Government shall deliver a certificate signed and dated by
the Principal Representative of the Government, or such other duly
authorized representative of the Government acceptable to MCC, that:
(i) Certifies the Government has completed all of its domestic
requirements in order that, and attaches a legal opinion from the
Supreme Court of Mali (or such other legal opinion as may be acceptable
to MCC) to the effect that (1) this Compact (and any Supplemental
Agreement to which MCC is a party) shall be given the status of an
international agreement; (2) no laws of Mali (other than the
Constitution of Mali) now or hereafter in effect shall take precedence
or prevail over this Compact (or any Supplemental Agreement to which
MCC is a party) during the Compact Term (or a longer period to the
extent provisions of this Compact remain in force following the Compact
Term pursuant to Section 5.13); and (3) each of the provisions of this
Compact (and each of the provisions of any Supplemental Agreement to
which MCC is a party) shall be valid, binding and in full force and
effect under the laws of Mali; and
(ii) Attaches thereto, and certifies that such attachments are,
true, correct and complete copies of all decrees, legislation,
regulations or other governmental documents relating to its domestic
requirements for this Compact to enter into force and the satisfaction
of Section 3.10, which MCC may post on its Web site or otherwise make
publicly available.
(f) MCC shall deliver a written statement as to the incumbency and
specimen signature of the Principal Representative and each Additional
Representative of MCC executing any document under this Compact such
written statement to be signed by a duly authorized official of MCC
other than the Principal Representative or any such Additional
Representative.
(g) The Government has not engaged subsequent to the conclusion of
this Compact in any action or omission inconsistent with the MCA
Eligibility Criteria, as determined by MCC in its sole discretion.
Section 4.2 Conditions Precedent to MCC Disbursements or Re-
Disbursements
Prior to, and as condition precedent to, any MCC Disbursement or
Re-Disbursement, the Government shall satisfy, or ensure the
satisfaction of, all applicable conditions precedent in the
Disbursement Agreement.
Article V. Final Clauses
Section 5.1 Communications
Unless otherwise expressly stated in this Compact or otherwise
agreed in writing by the Parties, any notice, certificate, request,
report, document or other communication required, permitted, or
submitted by either Party
[[Page 69240]]
to the other under this Compact shall be (a) in writing, (b) in
English, and (c) deemed duly given: (i) Upon personal delivery to the
Party to be notified; (ii) when sent by confirmed facsimile or
electronic mail, if sent during normal business hours of the recipient
Party, if not, then on the next business day; or (iii) three (3)
business days after deposit with an internationally recognized
overnight courier, specifying next day delivery, with written
verification of receipt to the Party to be notified at the address
indicated below, or at such other address as such Party may designate:
To MCC:
Millennium Challenge Corporation, Attention: Vice President for
Operations (with a copy to the Vice President and General Counsel), 875
Fifteenth Street, NW., Washington, DC 20005, United States of America,
Facsimile: +1 (202) 521-3700, Phone: +1 (202) 521-3600, E-mail:
VPOperations@mcc.gov (Vice President for Operations);
VPGeneralCounsel@mcc.gov (Vice President and General Counsel)
To the Government:
Prime Minister of the Republic of Mali, Primature, Bamako, Mali,
Facsimile: +223 223-9595, Phone: +223 222-5534
With a copy to MCA-Mali:
At an address, and to the attention of the person, to be designated
in writing to MCC by the Government.
Notwithstanding the foregoing, any audit report delivered pursuant
to Section 3.8, if delivered by facsimile or electronic mail, shall be
followed by an original in overnight express mail. This Section 5.1
shall not apply to the exchange of letters contemplated in Section 1.3
or any amendments under Section 5.3.
Section 5.2 Representatives
Unless otherwise agreed in writing by the Parties, for all purposes
relevant to this Compact, the Government shall be represented by the
individual holding the position of, or acting as, the Prime Minister of
the Republic of Mali, and MCC shall be represented by the individual
holding the position of, or acting as, Vice President for Operations
(each, a ``Principal Representative''), each of whom, by written notice
to the other Party, may designate one or more additional
representatives (each, an ``Additional Representative'') for all
purposes other than signing amendments to this Compact. The names of
the Principal Representative and any Additional Representative of each
of the Parties shall be provided, with specimen signatures, to the
other Party, and the Parties may accept as duly authorized any
instrument signed by such representatives relating to the
implementation of this Compact, until receipt of written notice of
revocation of their authority. A Party may change its Principal
Representative to a new representative of equivalent or higher rank
upon written notice to the other Party, which notice shall include the
specimen signature of the new Principal Representative.
Section 5.3 Amendments
The Parties may amend this Compact only by a written agreement
signed by the Principal Representatives of the Parties and subject to
the respective domestic approval requirements to which this Compact was
subject.
Section 5.4 Termination; Suspension
(a) Subject to Section 2.5, either Party may terminate this Compact
in its entirety by giving the other Party thirty (30) days' written
notice.
(b) Notwithstanding any other provision of this Compact, including
Section 2.1, or any Supplemental Agreement between the Parties, subject
to Section 2.5, MCC may suspend or terminate this Compact or MCC
Funding, in whole or in part, and any obligation or sub-obligation
related thereto, upon giving the Government written notice, if MCC
determines, in its sole discretion, that:
(i) Any use or proposed use of MCC Funding or any other Program
Asset or continued implementation of the Compact would be in violation
of applicable law or United States Government policy, whether now or
hereafter in effect;
(ii) The Government, any Provider, or any other third party
receiving MCC Funding or using any other Program Asset is engaged in
activities that are contrary to the national security interests of the
United States;
(iii) The Government or any Permitted Designee has committed an act
or omission or an event has occurred that would render Mali ineligible
to receive United States economic assistance under Part I of the
Foreign Assistance Act of 1961, as amended (22 U.S.C. 2151 et seq.), by
reason of the application of any provision of the Foreign Assistance
Act of 1961 or any other provision of law;
(iv) The Government or any Permitted Designee has engaged in a
pattern of actions or omissions inconsistent with the MCA Eligibility
Criteria, or there has occurred a significant decline in the
performance of Mali on one or more of the eligibility indicators
contained therein;
(v) The Government or any Provider has materially breached one or
more of its assurances or any covenants, obligations or
responsibilities under this Compact or any Supplemental Agreement;
(vi) An audit, review, report or any other document delivered in
furtherance of the Compact or any Supplemental Agreement or any other
evidence reveals that actual expenditures for the Program, any Project
or any Project Activity were greater than the projected expenditure for
such activities identified in the applicable Detailed Budget or are
projected to be greater than projected expenditures for such
activities;
(vii) If the Government (1) materially reallocates or reduces the
allocation in its national budget or any other Government budget of the
normal and expected resources that the Government would have otherwise
received or budgeted, from external or domestic sources, for the
activities contemplated herein; (2) fails to contribute or provide the
amount, level, type and quality of resources required to effectively
carry out the Government Responsibilities or any other responsibilities
or obligations of the Government under or in furtherance of this
Compact; or (3) fails to pay any of its obligations as required under
this Compact or any Supplemental Agreement, including such obligations
which shall be paid solely out of national funds;
(viii) If the Government, any Provider, or any other third party
receiving MCC Funding or using any other Program Asset, or any of their
respective directors, officers, employees, Affiliates, contractors,
sub-contractors, grantees, sub-grantees, representatives or agents, is
found to have been convicted of a narcotics offense or to have been
engaged in drug trafficking;
(ix) Any MCC Funding or Program Assets are applied, directly or
indirectly, to the provision of resources and support to, individuals
and organizations associated with terrorism, sex trafficking or
prostitution;
(x) An event or condition of any character has occurred that; (1)
Materially and adversely affects, or is likely to materially and
adversely affect, the ability of the Government or any other party to
effectively implement, or ensure the effective implementation of, the
Program or any Project or to otherwise carry out its responsibilities
or obligations under or in furtherance of this Compact or any
Supplemental Agreement or to perform its obligations under or in
furtherance of this Compact or any Supplemental Agreement or to
exercise its rights thereunder; (2) makes
[[Page 69241]]
it improbable that the Objectives will be achieved during the Compact
Term; (3) materially and adversely affects any Program Asset or any
Permitted Account; or (4) constitutes misconduct injurious to MCC, or
constitutes a fraud or a felony, by the Government, any Government
Affiliate, Permitted Designee or Provider, or any officer, director,
employee, agent, representative, Affiliate, contractor, grantee,
subcontractor or sub-grantee of any of the foregoing;
(xi) The Government, any Permitted Designee or Provider has taken
any action or omission or engaged in any activity in violation of, or
inconsistent with, the requirements of this Compact or any Supplemental
Agreement to which the Government or any Permitted Designee or Provider
is a party;
(xii) There has occurred a failure to meet a condition precedent or
series of conditions precedent or any other requirements or conditions
in connection with MCC Disbursement as set out in and in accordance
with any Supplemental Agreement between the Parties; or
(xiii) Any MCC Funding, Accrued Interest or Program Asset becomes
subject to a Lien without the prior approval of MCC, and the Government
fails to obtain the release of such Lien (utilizing national funds and
not with MCC Funding, Accrued Interest, or any other Program Asset)
within thirty (30) days after the imposition of such Lien.
(c) MCC may reinstate any suspended or terminated MCC Funding under
this Compact or any Supplemental Agreement if MCC determines, in its
sole discretion, that the Government or other relevant party has
demonstrated a commitment to correcting each condition for which MCC
Funding was suspended or terminated.
(d) The authority under this Section 5.4 to suspend or terminate
this Compact or any MCC Funding includes the authority to suspend or
terminate any obligations or sub-obligations relating to MCC Funding
under any Supplemental Agreement without any liability to MCC
whatsoever.
(e) All MCC Disbursements and Re-Disbursements shall cease upon
expiration, suspension, or termination of this Compact; provided,
however, (i) reasonable expenditures for goods, services and works that
are properly incurred under or in furtherance of this Compact before
such expiration, suspension or termination of this Compact, and (ii)
reasonable expenditures for goods and services (including certain
administrative expenses) properly incurred in connection with the
winding up of the Program within one hundred and twenty (120) days
after such expiration, suspension or termination of the Compact may be
paid from MCC Funding if (1) the request for such payment is properly
submitted within ninety (90) days after such expiration, suspension or
termination of the Compact, and (2) MCC had approved the making of such
expenditure in writing in advance thereof.
(f) Other than the payments permitted pursuant to Section 5.4(e),
in the event of the suspension or termination of this Compact or any
Supplemental Agreement, in whole or in part, the Government, shall
suspend, at MCC's sole discretion, for the period of the suspension, or
terminate, or ensure the suspension or termination of, as applicable,
any obligation or sub-obligation of the Parties to provide financial or
other resources under this Compact or any Supplemental Agreement, or to
the suspended or terminated portion of this Compact or such
Supplemental Agreement, as applicable. In the event of such suspension
or termination, the Government shall use its best efforts to suspend or
terminate, or ensure the suspension or termination of, as applicable,
all such noncancelable commitments related to the suspended or
terminated MCC Funding. Any portion of this Compact or any such
Supplemental Agreement that is not suspended or terminated shall remain
in full force and effect.
(g) Upon the full or partial suspension or termination of this
Compact or any MCC Funding, MCC may, at its expense, direct that title
to Program Assets be transferred to MCC if such Program Assets are in a
deliverable state; provided, for any Program Asset partially purchased
or funded (directly or indirectly) by MCC Funding, the Government shall
reimburse to a United States Government account designated by MCC the
cash equivalent of the portion of the value of such Program Asset, such
value as determined by MCC.
(h) Prior to the expiration of this Compact or upon termination of
this Compact, the Parties shall consult in good faith with a view to
reaching an agreement in writing on (i) the post-Compact Term treatment
of MCA-Mali, (ii) the process for ensuring the refunds of MCC
Disbursements that have not yet been released from a Permitted Account
through a valid Re-Disbursement or otherwise committed in accordance
with Section 5.4(e), or (iii) any other matter related to the winding
up of the Program and this Compact.
Section 5.5 Privileges and Immunities
MCC is an agency of the Government of the United States of America
and its personnel assigned to Mali will be notified pursuant to the
Vienna Convention on Diplomatic Relations as members of the mission of
the Embassy of the United States of America. The Government shall
ensure that any personnel of MCC so notified, including individuals
detailed to or contracted by MCC, and the members of the families of
such personnel, while such personnel are performing duties in Mali,
shall enjoy the privileges and immunities that are enjoyed by a member
of the United States Foreign Service, or the family of a member of the
United States Foreign Service so notified, as appropriate, of
comparable rank and salary of such personnel, if such personnel or the
members of the families of such personnel are not a national of, or
permanently resident in, Mali.
Section 5.6 Attachments
Any annex, schedule, exhibit, table, appendix or other attachment
expressly attached hereto (collectively, the ``Attachments'') is
incorporated herein by reference and shall constitute an integral part
of this Compact.
Section 5.7 Inconsistencies
(a) Conflicts or inconsistencies between any parts of this Compact
shall be resolved by applying the following descending order of
precedence:
(i) Articles I through V, and
(ii) Any Attachments.
(b) In the event of any conflict or inconsistency between this
Compact and any Supplemental Agreement between the Parties, the terms
of this Compact shall prevail. In the event of any conflict or
inconsistency between any Supplemental Agreement between the Parties
and any other Supplemental Agreement, the terms of the Supplemental
Agreement between the Parties shall prevail. In the event of any
conflict or inconsistency between Supplemental Agreements between any
parties, the terms of a more recently executed Supplemental Agreement
between such parties shall take precedence over a previously executed
Supplemental Agreement between such parties. In the event of any
inconsistency between a Supplemental Agreement between the Parties and
any Implementation Document, the terms of the relevant Supplemental
Agreement shall prevail.
Section 5.8 Indemnification
The Government shall indemnify and hold MCC and any MCC officer,
director, employee, Affiliate, contractor,
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agent or representative (each of MCC and any such persons, an ``MCC
Indemnified Party'') harmless from and against, and shall compensate,
reimburse and pay such MCC Indemnified Party for, any liability or
other damages which (a) are directly or indirectly suffered or incurred
by such MCC Indemnified Party, or to which any MCC Indemnified Party
may otherwise become subject, regardless of whether or not such damages
relate to any third-party claim, and (b) arise from or as a result of
the negligence or willful misconduct of the Government, any Government
Affiliate, MCA-Mali or any Permitted Designee, directly or indirectly
connected with, any activities (including acts or omissions) undertaken
in furtherance of this Compact; provided, however, the Government shall
apply national funds to satisfy its obligations under this Section 5.8
and no MCC Funding, Accrued Interest, or other Program Asset may be
applied by the Government in satisfaction of its obligations under this
Section 5.8.
Section 5.9 Headings
The Section and Subsection headings used in this Compact are
included for convenience only and are not to be considered in
construing or interpreting this Compact.
Section 5.10 Interpretation
(a) Any reference to the term ``including'' in this Compact shall
be deemed to mean ``including without limitation'' except as expressly
provided otherwise.
(b) Any reference to activities undertaken ``in furtherance of this
Compact'' or similar language shall include activities undertaken by
the Government, any Government Affiliate, any Permitted Designee, any
Provider or any other third party receiving MCC Funding involved in
carrying out the purposes of this Compact or any Supplemental
Agreement, including their respective directors, officers, employees,
Affiliates, contractors, sub-contractors, grantees, sub-grantees,
representatives or agents, whether pursuant to the terms of this
Compact, any Supplemental Agreement or otherwise.
(c) References to ``day'' or ``days'' shall be calendar days unless
provided otherwise.
(d) Defined terms importing the singular also include the plural,
and vice versa.
Section 5.11 Signatures
A signature to this Compact or an amendment to this Compact
pursuant to Section 5.3 shall be delivered only as an original
signature. With respect to all other signatures, a signature delivered
by facsimile or electronic mail in accordance with Section 5.1 shall be
deemed an original signature and shall be binding on the Party
delivering such signature, and the Parties hereby waive any objection
to such signature or to the validity of the underlying document,
certificate, notice, instrument or agreement on the basis of the
signature's legal effect, validity or enforceability solely because it
is in facsimile or electronic form. Without limiting the foregoing, a
signature on an audit report or a signature evidencing any modification
identified in Section 2(a) and Section 4(a)(iv) of Annex I, Section 4
of Annex II, or Section 5(d) of Annex III shall be followed by an
original in overnight express mail.
Section 5.12 Designation
MCC may designate any Affiliate, agent, or representative to
implement, in whole or in part, its obligations, and exercise any of
its rights, under this Compact or any Supplemental Agreement between
the Parties. MCC shall inform the Government of any such designation.
Section 5.13 Survival
Any Government Responsibilities, covenants, or obligations or other
responsibilities to be performed by the Government after the Compact
Term shall survive the termination or expiration of this Compact and
expire in accordance with their respective terms. Notwithstanding the
termination or expiration of this Compact, the following provisions
shall remain in force: Sections 2.2, 2.3, 2.5, 3.2, 3.3, 3.4, 3.5, 3.8,
3.9 (for one year), 3.12, 5.1, 5.2, 5.4(d), 5.4(e) (for one hundred and
twenty (120) days), 5.4(f), 5.4(g), 5.4(h), 5.5, 5.6, 5.7, 5.8, 5.9,
5.10, 5.11, 5.12, this Section 5.13, 5.14, and 5.15.
Section 5.14 Consultation
Either Party may, at any time, request consultations relating to
the interpretation or implementation of this Compact or any
Supplemental Agreement between the Parties. Such consultations shall
begin at the earliest possible date. The request for consultations
shall designate a representative for the requesting Party with the
authority to enter consultations and the other Party shall endeavor to
designate a representative of equal or comparable rank. If such
representatives are unable to resolve the matter within twenty (20)
days from the commencement of the consultations, then each Party shall
forward the consultation to the Principal Representative or such other
representative of comparable or higher rank. The consultations shall
last no longer than forty-five (45) days from date of commencement. If
the matter is not resolved within such time period, either Party may
terminate this Compact pursuant to Section 5.4(a). The Parties shall
enter any such consultations guided by the principle of achieving the
Compact Goal in a timely and cost-effective manner and by the
principles of international law. Any dispute arising under or related
to this Compact shall be determined exclusively through the
consultation mechanism set forth in this Section 5.14.
Section 5.15 MCC Status
MCC is a United States Government corporation acting on behalf of
the United States Government in the implementation of this Compact. As
such, MCC has no liability under this Compact, is immune from any
action or proceeding arising under or relating to this Compact and the
Government hereby waives and releases all claims related to any such
liability. In matters arising under or relating to this Compact, MCC is
not subject to the jurisdiction of the courts or other body of Mali or
any other jurisdiction, and all disputes arising under or relating to
this Compact shall be determined in accordance with Section 5.14.
Section 5.16 Language
This Compact is prepared in English and in the event of any
ambiguity or conflict between this official English version and any
other version translated into any language for the convenience of the
Parties, this official English version shall prevail.
Section 5.17 Publicity; Information and Marking
The Government shall give appropriate publicity to this Compact as
a program to which the United States, through MCC, has contributed,
including by posting this Compact, and any amendments thereto, on the
Web site operated by MCA-Mali (``MCA-Mali Web site''), identifying
Program activity sites, and marking Program Assets; provided, any
announcement, press release or statement regarding MCC or the fact that
MCC is funding the Program or any other publicity materials referencing
MCC, including the publicity described in this Section 5.17, shall be
subject to prior approval by MCC and shall be consistent with any
instructions provided by MCC from time to time in relevant
Implementation Letters. Upon the termination or
[[Page 69243]]
expiration of this Compact, MCC may request the removal of, and the
Government shall, upon such request, remove, or cause the removal of,
any such markings and any references to MCC in any publicity materials
or on the MCA-Mali Web site. MCC may post this Compact, and any
amendments thereto, on the Web site of MCC. MCC shall have the right to
use any information or data provided in any report or document provided
to MCC for the purpose of satisfying MCC reporting requirements or in
any other manner.
In Witness Whereof, the undersigned, duly authorized by their
respective governments, have signed this Compact this 13th day of
November 2006 and this Compact shall enter into force in accordance
with Section 1.3.
Done at Washington, DC in English.
For the United States of America, acting through the Millennium
Challenge Corporation, Name: John J. Danilovich, Title: Chief Executive
Officer.
For the Government of the Republic of Mali, Name: Moctor Ouane,
Title: Minister of Foreign Affairs and International Cooperation.
Exhibit A--Definitions
The following compendium of capitalized terms that are used herein
is provided for the convenience of the reader. To the extent that there
is a conflict or inconsistency between the definitions in this Exhibit
A and the definitions elsewhere in the text of this Compact, the
definition elsewhere in this Compact shall prevail over the definition
in this Exhibit A.
Accrued Interest shall have the meaning set forth in Section
2.1(c).
Act shall have the meaning set forth in Section 2.1(a)(iii).
Ad Hoc Evaluation shall have the meaning set forth in Section 3(b)
of Annex III.
Additional Representative shall have the meaning set forth in
Section 5.2.
AdM shall have the meaning set forth in Section 2(c) of Schedule 1
to Annex I.
Advisory Council(s) shall have the meaning set forth in Section
3(e)(i) of Annex I.
Affiliate means the affiliate of a party, which is a person or
entity that controls, is controlled by, or is under the same control as
the party in question, whether by ownership or by voting, financial or
other power or means of influence. References to Affiliate herein shall
include any of their respective directors, officers, employees,
affiliates, contractors, sub-contractors, grantees, sub-grantees,
representatives, and agents.
Agriculture Activity shall have the meaning set forth in Section
2(e) of Schedule 3 to Annex I.
Airport shall have the meaning set forth in Section 1.1.
Airport Domain Advisory Council shall have the meaning set forth in
Section 3(e)(i) of Annex I.
Airport Improvement Project shall have the meaning set forth in the
Preamble of Schedule 1 to Annex I.
Airside Infrastructure Activity shall have the meaning set forth in
Section 2(a) of Schedule 1 to Annex I.
Alatona Irrigation Project shall have the meaning set forth in the
Preamble of Schedule 3 to Annex I.
Alatona Irrigation Project Objective shall have the meaning set
forth in Section 1.1(c).
Alatona Zone Advisory Council shall have the meaning set forth in
Section 3(e)(i) of Annex I.
ANAC means the Agence Nationale de l'A[eacute]ronautique Civile.
ASECNA means the Agence pour la Securit[eacute] de la Navigation
A[eacute]rienne en Afrique et [agrave] Madagascar.
Attachments shall have the meaning set forth in Section 5.6.
Audit Guidelines shall have the meaning set forth in Section
3.8(d)(i).
Audit Plan shall have the meaning set forth in Section 3.8(d)(iii).
Auditor shall have the meaning set forth in Section 3(h) of Annex
I.
Auditor/Reviewer Agreement shall have the meaning set forth in
Section 3(h) of Annex I.
Bamako-S[eacute]nou Airport Improvement Project Objective shall
have the meaning set forth in Section 1.1(a).
Bank(s) means any bank holding a Permitted Account.
Bank Agreement shall have the meaning set forth in Section 4(d) of
Annex I.
BDS shall have the meaning set forth in Section 4 of Schedule 2 to
Annex I.
Beneficiaries shall have the meaning set forth in Section 2(a) of
Annex III.
Bilateral Agreement shall have the meaning set forth in Section
2.6.
Board shall have the meaning set forth in Section 3(d)(i)(2) of
Annex I.
Chair shall have the meaning set forth in Section 3(d)(ii)(2)(A)(i)
of Annex I.
Civil Member shall have the meaning set forth in Section
3(d)(ii)(2)(A) of Annex I.
Civil Society Stakeholders shall have the meaning set forth in
Section 3(e)(ii)(1) of Annex I.
CNPI means the Centre National de la Promotion des Investissements.
Community Activity shall have the meaning set forth in Section 2(d)
of Schedule 3 to Annex I.
Compact shall have the meaning set forth in the Preamble.
Compact Goal shall have the meaning set forth in Section 1.1.
Compact Implementation Funding shall have the meaning set forth in
Section 2.1(a)(iii).
Compact Records shall have the meaning set forth in Section 3.8(b).
Compact Reports shall have the meaning set forth in Section
3(d)(ii)(3)(C) of Annex I.
Compact Term shall have the meaning set forth in Section 1.3.
Contract shall have the meaning set forth in Section 3(f) of Annex
I.
Contractor shall have the meaning set forth in Section 3(f) of
Annex I.
COSCAP shall have the meaning set forth in Section 4 of Schedule 1
to Annex I.
Covered Provider shall have the meaning set forth in Section
3.8(d)(iv).
Designated Rights and Responsibilities shall have the meaning set
forth in Section 3.2(c).
Detailed Budget shall have the meaning set forth in Section
4(a)(ii) of Annex I.
DNCPN means the Direction Nationale du Controle de la Pollution et
des Nuisances.
Director General shall have the meaning set forth in Section
3(d)(iii) of Annex I.
Disbursement Agreement shall have the meaning set forth in Section
4.1(a).
EA shall have the meaning set forth in Section 6(a) of Annex I.
EIA shall have the meaning set forth in Section 6(a) of Annex I.
EMP shall have the meaning set forth in Section 6(a) of Annex I.
EMS shall have the meaning set forth in Section 6 of Schedule 1 to
Annex I.
Entry into Force shall have the meaning set forth in Section 1.3.
Environmental Guidelines shall have the meaning set forth in
Section 2.3(d).
Evaluation Component shall have the meaning set forth in Section 1
of Annex III.
Exempt Uses shall have the meaning set forth in Section 2.3(e)(ii).
Final Evaluation shall have the meaning set forth in Section 3(a)
of Annex III.
Finance Activity shall have the meaning set forth in Section 2(f)
of Schedule 3 to Annex I.
Financial Plan Annex shall have the meaning set forth in the
Preamble of Annex II.
Fiscal Accountability Plan shall have the meaning set forth in
Section 4(c) of Annex I.
Fiscal Agent shall have the meaning set forth in Section 3(g)(i) of
Annex I.
Fiscal Agent Agreement shall have the meaning set forth in Section
3(g)(i) of Annex I.
[[Page 69244]]
GDP means gross domestic product.
Goal Indicator shall have the meaning set forth in Section 2(a) of
Annex III.
Governance Agreement shall have the meaning set forth in Section
4.1(b).
Governing Document shall have the meaning set forth in Section
3(c)(i)(9) of Annex I.
Government shall have the meaning set forth in the Preamble.
Government Affiliate means an Affiliate, ministry, bureau,
department, agency, government, corporation or any other entity
chartered or established by the Government or local government in Mali.
References to Government Affiliate shall include any of their
respective directors, officers, employees, affiliates, contractors,
sub-contractors, grantees, sub-grantees, representatives, and agents.
Government Member shall have the meaning set forth in Section
3(d)(ii)(2)(A) of Annex I.
Government Party shall have the meaning set forth in Section
3.8(e)(i).
Government Responsibilities shall have the meaning set forth in
Section 3.2(a).
Ha means hectare.
Implementation Document shall have the meaning set forth in Section
3(a) of Annex I.
Implementation Letter shall have the meaning set forth in Section
3.5(a).
Implementing Entity shall have the meaning set forth in Section
3(f) of Annex I.
Implementing Entity Agreement shall have the meaning set forth in
Section 3(f) of Annex I.
Indicators shall have the meaning set forth in Section 2(a) of
Annex III.
Industrial Park shall have the meaning set forth in Section 1(a) of
Annex I.
Industrial Park Project shall have the meaning set forth in the
Preamble of Schedule 2 to Annex I.
Industrial Park Project Objective shall have the meaning set forth
in Section 1.1(b).
Inspector General shall have the meaning set forth in Section
3.8(d)(i).
Institutional Strengthening Activity for the Airport Improvement
Project shall have the meaning set forth in Section 2(c) of Schedule 1
to Annex I.
Institutional Strengthening Activity for the Industrial Park
Project shall have the meaning set forth in Section 2(c) of Schedule 2
to Annex I.
Irrigation Activity shall have the meaning set forth in Section
2(b) of Schedule 3 to Annex I.
Land Activity shall have the meaning set forth in Section 2(c) of
Schedule 3 to Annex I.
Landside Infrastructure Activity shall have the meaning set forth
in Section 2(b) of Schedule 1 to Annex I.
Lien shall have the meaning set forth in Section 2.3(g).
Local Account shall have the meaning set forth in Section 4(d)(ii)
of Annex I.
M&E shall have the meaning set forth in Section 3 of Annex I.
M&E Annex shall have the meaning set forth in the Preamble of Annex
III.
M&E Plan shall have the meaning set forth in Section 2(d) of Annex
I.
Mali shall have the meaning set forth in the Recitals.
Management shall have the meaning set forth in Section 3(d)(i)(2)
of Annex I.
Material Agreement shall have the meaning set forth in Section
3(c)(i)(4) of Annex I.
Material Re-Disbursement shall have the meaning set forth in
Section 3(c)(i)(7) of Annex I.
MCA shall have the meaning set forth in the Recitals.
MCA Eligibility Criteria shall have the meaning set forth in
Section 3.7.
MCA-Mali shall have the meaning set forth in Section 3(b)(i) of
Annex I.
MCA-Mali Web site shall have the meaning set forth in Section 5.17.
MCC shall have the meaning set forth in the Preamble.
MCC Disbursement shall have the meaning set forth in Section
2.1(b)(i).
MCC Disbursement Request shall have the meaning set forth in
Section 4(b) of Annex I.
MCC Funding shall have the meaning set forth in Section 2.1(a).
MCC Indemnified Party shall have the meaning set forth in Section
5.8.
MCC Representative shall have the meaning set forth in Section
3(d)(ii)(2)(B)(i) of Annex I.
MFIs means microfinance institutions.
Monitoring Component shall have the meaning set forth in Section 1
of Annex III.
MSMEs shall have the meaning set forth in Section 4 of Schedule 2
to Annex I.
Multi-Year Financial Plan shall have the meaning set forth in
Section 4(a)(i) of Annex I.
Multi-Year Financial Plan Summary shall have the meaning set forth
in Section 1 of Annex II.
NGOs shall have the meaning set forth in Section 1(b) of Annex I.
Objective(s) shall have the meaning set forth in Section 1.1.
Objective Indicator shall have the meaning set forth in Section
2(a) of Annex III.
Observer shall have the meaning set forth in Section 3(d)(ii)(2)(B)
of Annex I.
Officer shall have the meaning set forth in Section 3(d)(iii)(1) of
Annex I.
ON shall have the meaning set forth in Section 1.1(c).
Outcomes shall have the meaning set forth in Section 1 of Annex
III.
Outcome Indicator shall have the meaning set forth in Section 2(a)
of Annex III.
Output Indicator shall have the meaning set forth in Section 2(a)
of Annex III.
Party or Parties shall have the meaning set forth in the Preamble.
Permitted Account(s) shall have the meaning set forth in Section
4(d) of Annex I.
Permitted Designee shall have the meaning set forth in Section
3.2(c).
Pledge shall have the meaning set forth in Section 3(c)(i)(8) of
Annex I.
Primary and Secondary Infrastructure Activity shall have the
meaning set forth in Section 2(a) of Schedule 2 to Annex I.
Principal Representative shall have the meaning set forth in
Section 5.2.
Procurement Agent shall have the meaning set forth in Section 3(i)
of Annex I.
Procurement Agent Agreement shall have the meaning set forth in
Section 3(i) of Annex I.
Procurement Guidelines shall have the meaning set forth in Section
3.6(a).
Procurement Plan shall have the meaning set forth in Section 3(i)
of Annex I.
Program shall have the meaning set forth in the Recitals.
Program Annex shall have the meaning set forth in the Preamble of
Annex I.
Program Assets shall have the meaning set forth in Section
2.3(e)(iii).
Program Objective shall have the meaning set forth in Section 1.1.
Project shall have the meaning set forth in Section 1.2.
Project Activity shall have the meaning set forth in Section 2(a)
of Annex I.
Project Objective shall have the meaning set forth in Section 1.1.
Proposal shall have the meaning set forth in the Recitals.
Provider shall have the meaning set forth in Section 2.4(b).
PRSP shall have the meaning set forth in Section 1(b) of Annex I.
RAP shall have the meaning set forth in Section 6(a) of Annex I.
Re-Disbursement shall have the meaning set forth in Section
2.1(b)(ii).
Resettlement Activity shall have the meaning set forth in Section
2(b) of Schedule 2 to Annex I.
Revenue Authority shall have the meaning set forth in Section
2(c)(v) of Schedule 3 to Annex I.
[[Page 69245]]
Reviewer shall have the meaning set forth in Section 3(h) of Annex
I.
Road Activity shall have the meaning set forth in Section 2(a) of
Schedule 3 to Annex I.
Special Account shall have the meaning set forth in Section 4(d)(i)
of Annex I.
STIs means sexually transmitted infections.
Supplemental Agreement shall have the meaning set forth in Section
3.5(b).
Supplemental Agreement between the Parties means any agreement
between MCC on the one hand, and the Government, any Government
Affiliate or Permitted Designee on the other hand.
Supplemental Agreement Term Sheets shall have the meaning set forth
in Section 4.1(c).
Target shall have the meaning set forth in Section 2(a) of Annex
III.
Tax(es) shall have the meaning set forth in Section 2.3(e)(i).
United States Dollars, US$ or $ shall have the meaning set forth in
Section 2.1(d).
United States Government means any branch, agency, bureau,
government corporation, government chartered entity or other body of
the Federal government of the United States.
USAID shall have the meaning set forth in Section 5 of Schedule 1
to Annex I.
VOCs shall have the meaning set forth in Section 3 of Schedule 3 to
Annex I.
Voting Member means each Government Member and each Civil Member.
WAEMU shall have the meaning set forth in Section 4 of Schedule 1
to Annex I.
Work Plan shall have the meaning set forth in Section 3(a) of Annex
I.
WUAs shall have the meaning set forth in Section 2 of Schedule 3 to
Annex I.
Exhibit B--List of Certain Supplemental Agreements
1. Fiscal Agent Agreement.
2. Procurement Agent Agreement.
3. Bank Agreement.
4. Form of Implementing Entity Agreement.
Schedule 2.1(a)(iii)--Compact Implementation Funding
The Compact Implementation Funding provided pursuant to Section
2.1(a)(iii) of this Compact shall support the following activities:
(a) Fiscal and procurement administration activities;
(b) Administrative activities including start-up costs such as
staff salaries and administrative support expenses of MCA-Mali (or a
mutually acceptable Government Affiliate) such as rent, computers and
other information technology or capital equipment;
(c) Baseline surveys for M&E; and
(d) Additional work for feasibility studies.
The total amount of funds disbursed in accordance with Section
2.1(a)(iii) shall not exceed the amount set forth in Section
2.1(a)(iii).
Annex I--Program Description
This Annex I to the Compact (this ``Program Annex'') generally
describes the Program that MCC Funding will support in Mali during the
Compact Term and the results to be achieved from the investment of MCC
Funding. Prior to any MCC Disbursement or Re-Disbursement, including
for the Projects described herein, MCC, the Government (or a mutually
acceptable Government Affiliate) and MCA-Mali shall enter into the
Disbursement Agreement, which agreement shall be in form and substance
mutually satisfactory to the Parties, and signed by the Principal
Representative of each Party (or in the case of a Government Affiliate,
the principal representative of such Government Affiliate) and of MCA-
Mali.
Except as specifically provided herein, the Parties may amend this
Program Annex only by written agreement signed by the Principal
Representative of each Party. Each capitalized term used but not
defined in this Program Annex shall have the same meaning given such
term elsewhere in this Compact. Unless otherwise expressly stated, each
Section reference herein is to the relevant Section of the main body of
this Compact.
1. Background; Consultative Process
(a) Background. Mali is a landlocked country of 1.24 million sq km
that shares a border with seven West African countries. One of the
world's poorest countries, Mali ranks 174 out of 177 on the United
Nations Development Program's Human Development Index, with low levels
of literacy (19%) and life expectancy of 47.9 years. Sixty-four percent
of Mali's approximate 13 million people are poor, a third living in
extreme poverty. MCC's investments will support the development of key
infrastructure and policy reform for productive sectors, by addressing
the country's constraints to growth and capitalizing on two of Mali's
major assets, the Airport, gateway for regional and international
trade, and the Niger River Delta for irrigated agriculture. As proposed
by the Government, the Program will create a platform for increased
production and productivity of agriculture and small and medium-sized
enterprises, as well as expand Mali's access to markets and trade.
Investment in the Airport infrastructure will establish an
independent and secure link to the regional and global economy,
addressing the specific need of a landlocked, developing country. The
investments in the industrial park to be located within the Airport
domain (``Industrial Park'') will provide properly managed and serviced
land for businesses and will leverage reforms that will decrease the
cost of doing business in Mali. The investments in the Alatona zone of
ON will be a catalyst for the transformation and commercialization of
family farms. It will support Mali's national development strategy to
increase the contribution of the rural sector to economic growth and
help achieve national food security. These investments will be
strengthened by policy reforms and institutional support such as formal
land titles for the rural poor, demand-driven rural advisory services,
an improved business environment, and increased access to markets and
trade. These hard and soft investments will impact the poor in Mali,
particularly Malian farmers and small and medium-size entrepreneurs,
not only in Project zones but, over time, on a national and regional
scale. The Program reinforces the Government's approach and commitment
to democracy, decentralization, and empowerment of local communities.
MCC-financed interventions will complement and reinforce national
strategies for poverty reduction and economic growth.
(b) Consultative Process. The Program strongly supports the third
pillar of the poverty reduction strategy paper (``PRSP''): Development
of infrastructure and key support for productive sectors. The
participatory process of the PRSP is characterized as having
``breadth'' and being ``systematic.'' The national structure for the
implementation of the PRSP identified the following among the top
constraints to economic growth in its consultative process:
(i) Climatic risks affecting the rural sector with consequences on
the national economy;
(ii) High cost of factors of production;
(iii) Fluctuations in prices of principal import and export
products; and
(iv) Isolation/landlocked nature of the country.
The Program was designed to address these constraints. Priorities
were defined by the national PRSP structure and refinement occurred in
consultation with civil society and the private sector.
[[Page 69246]]
This consultative process enriched and helped form the Proposal and its
development. The insistence on rural land ownership and titling derived
from dialogue with civil society and private sector actors. The need
for inclusion of a strong component of social services for the Alatona
zone was also reinforced through the consultative process.
Members of the Government, private sector, and civil society
(national non-governmental organizations and U.S. non-governmental
organizations) played an active role in developing the Millennium
Challenge Account proposal. Local non-governmental organizations
(``NGOs''), including village-level women's associations, were directly
involved in the process through numerous on-site workshops and meetings
in the ON region. Consultations also took place with private sector and
civil society actors around Bamako, as well as communities surrounding
the Airport domain, who emphasized the need for improved infrastructure
and increased economic activity to reduce poverty. Lastly, the
Consultative Process involved participation of the U.S. NGO community,
that has a strong presence in Mali, working on health, education,
agriculture, governance, and economic development programs throughout
the country.
2. Overview
(a) Projects. The Parties have identified the Projects that the
Government will implement, or cause to be implemented, using MCC
Funding to advance each Objective. Each Project is described in the
Schedules to this Program Annex. The Schedules to this Program Annex
also identify one or more of the activities that will be undertaken in
furtherance of each Project (each, a ``Project Activity''), as well as
the various activities within each Project Activity. Notwithstanding
anything to the contrary in this Compact, the Parties may agree to
modify, amend, terminate or suspend these Projects or to create a new
project by written agreement signed by the Principal Representative of
each Party without amending this Compact; provided, however, any such
modification or amendment of a Project or creation of a new project
shall (i) be consistent with the Objectives; (ii) not cause the amount
of MCC Funding to exceed the aggregate amount specified in Section
2.1(a) of this Compact; (iii) not cause the Government's
responsibilities or contribution of resources to be less than specified
in Section 2.2 of this Compact or elsewhere in this Compact; and (iv)
not extend the Compact Term.
(b) Beneficiaries. The intended beneficiaries of each Project are
described in the respective Schedule to this Program Annex and Annex
III to the extent identified as of the date hereof. The intended
beneficiaries shall be identified more precisely during the initial
phases of implementation of the Program. The Government shall provide
to MCC information on the population of the areas in which the Projects
will be active, disaggregated by gender, income level and age. The
Parties shall agree upon the description of the intended beneficiaries
and the Parties will make publicly available a more detailed
description of the intended beneficiaries of the Program, including
publishing such description on the MCA-Mali Web site.
(c) Civil Society. Civil society shall participate in overseeing
the implementation of the Program through its representation on the
Board and the Advisory Councils, as provided in Section 3(d) and
Section 3(e), respectively, of this Program Annex. In addition, ongoing
consultations with the civil society regarding the manner in which each
Project is being implemented will take place throughout the Compact
Term.
(d) Monitoring and Evaluation. Annex III generally describes the
plan to measure and evaluate progress toward achievement of the Compact
Goal and the Objectives (the ``M&E Plan''). As outlined in the
Disbursement Agreement and other Supplemental Agreements, continued
disbursement of MCC Funding under this Compact (whether as MCC
Disbursements or Re-Disbursements) shall be contingent on, among other
things, successful achievement of certain Targets as set forth in the
M&E Plan.
3. Implementation Framework
The implementation framework and the plan for ensuring adequate
governance, oversight, management, monitoring and evaluation (``M&E'')
and fiscal accountability for the use of MCC Funding is summarized
below and in the Schedules attached to this Program Annex, and as may
otherwise be agreed in writing by the Parties.
(a) General. The elements of the implementation framework will be
further described in the Supplemental Agreements and in a set of
detailed documents for the implementation of the Program, consisting of
(i) a Multi-Year Financial Plan, (ii) a Fiscal Accountability Plan,
(iii) a Procurement Plan, (iv) an M&E Plan, and (v) a Work Plan (each,
an ``Implementation Document''). MCA-Mali shall adopt each
Implementation Document in accordance with the requirements and
timeframe as may be specified in this Program Annex, Annex II, Annex
III, and the Disbursement Agreement or as may otherwise be agreed by
the Parties from time to time. MCA-Mali may amend any Implementation
Document without amending this Compact, provided that any material
amendment of such Implementation Document has been approved by MCC and
is otherwise consistent with the requirements of this Compact and any
Supplemental Agreement. By such time as may be specified in the
Disbursement Agreement, or as may otherwise be agreed by the Parties
from time to time, MCA-Mali shall adopt a work plan for the overall
administration of the Program (the ``Work Plan''). The Work Plan shall
set forth, with respect to (i) the administration of the Program, (ii)
the monitoring and evaluation of the Program, and (iii) the
implementation of each Project, the following: (1) Each activity to be
undertaken or funded by MCC Funding (to the level of detail mutually
acceptable to MCA-Mali and MCC), (2) the Detailed Budget, and (3) where
appropriate, the allocation of roles and responsibilities for specific
activities, other programmatic guidelines, performance requirements,
targets, and other expectations related thereto.
(b) Government.
(i) The Government shall promptly take all necessary and
appropriate actions to carry out the Government Responsibilities and
other obligations or responsibilities of the Government under and in
furtherance of this Compact, including undertaking or pursuing such
legal, legislative or regulatory actions or procedural changes and
contractual arrangements as may be necessary or appropriate to achieve
the Objectives, to successfully implement the Program, to designate any
rights or responsibilities to any Permitted Designee, and to establish
a legal entity, in a form mutually agreeable to the Parties (``MCA-
Mali''), which shall be a Permitted Designee and shall be responsible
for the oversight and management of the implementation of this Compact
on behalf of the Government. The Government shall promptly deliver to
MCC certified copies of any documents, orders, decrees, laws or
regulations evidencing such legal, legislative, regulatory, procedural,
contractual or other actions.
(ii) The Government shall ensure that MCA-Mali is duly authorized
and organized, sufficiently staffed and empowered to carry out fully
the
[[Page 69247]]
Designated Rights and Responsibilities. Without limiting the generality
of the preceding sentence, MCA-Mali shall be organized, and have such
roles and responsibilities, as described in Section 3(d) of this
Program Annex and as provided in the Governing Documents.
(c) MCC.
(i) Notwithstanding Section 3.11 of this Compact or any provision
in this Program Annex to the contrary, and except as may be otherwise
agreed upon by the Parties from time to time, MCC must approve in
writing each of the following transactions, activities, agreements and
documents prior to the execution or carrying out of such transaction,
activity, agreement or document and prior to MCC Disbursements or Re-
Disbursements in connection therewith:
(1) MCC Disbursements;
(2) Each Implementation Document (including each component thereto)
and any material amendments and supplements thereto;
(3) Any Audit Plan;
(4) Agreements (i) between the Government and MCA-Mali, (ii)
between the Government, a Government Affiliate, MCA-Mali or any other
Permitted Designee, on the one hand, and any Provider or Affiliate of a
Provider, on the other hand, which require such MCC approval under
applicable law, the Disbursement Agreement, any Governing Document, or
any other Supplemental Agreement, or (iii) in which the Government, a
Government Affiliate, MCA-Mali or any other Permitted Designee
appoints, hires, or engages any of the following in furtherance of this
Compact:
(A) Auditor;
(B) Reviewer;
(C) Fiscal Agent;
(D) Procurement Agent;
(E) Bank;
(F) Implementing Entity (as required under Section 3(f) of this
Program Annex); and
(G) A member of the Board (including any Observer), any Officer or
any other key employee of MCA-Mali (including agreements involving the
terms of any compensation for any such person).
(Any agreement described in clause (i) through (iii) of this
Section 3(c)(i)(4) of this Program Annex and any amendments and
supplements thereto, each, a ``Material Agreement'');
(5) Any modification, termination or suspension of a Material
Agreement, or any action that would have the effect of such a
modification, termination or suspension of a Material Agreement;
(6) Any agreement that is (A) not at arm's length or (B) with a
party related to the Government, MCA-Mali or any of their respective
Affiliates;
(7) Any Re-Disbursement that requires such MCC approval under
applicable law, any Governing Document, or any other Supplemental
Agreement (each, a ``Material Re-Disbursement'');
(8) Any pledge of any MCC Funding or any Program Assets, or any
guarantee, directly or indirectly, of any indebtedness (each, a
``Pledge'');
(9) Any decree, legislation, regulation, contractual arrangement
(including the Governance Agreement), or other charter document
establishing or governing MCA-Mali (each, a ``Governing Document'');
(10) Any disposition, in whole or in part, liquidation,
dissolution, winding up, reorganization or other change of (A) MCA-
Mali, including any revocation or modification of or supplement to any
Governing Document related thereto, or (B) any subsidiary or Affiliate
of MCA-Mali;
(11) Any change in character or location of any Permitted Account;
(12) Formation or acquisition of any direct or indirect subsidiary,
or other Affiliate, of MCA-Mali;
(13) (A) Any change of any member of the Board (including any
Observer), of the member serving as the Chair or in the composition or
size of the Board, and the filling of any vacant seat of any member of
the Board (including any Observer), (B) any change of any Officer or
other key employee of MCA-Mali or in the composition or size of the
Management, and the filling of any vacant position of any Officer or
other key employee of MCA-Mali, and (C) any material change in the
composition or size of any Advisory Council;
(14) Any decision by MCA-Mali to engage, to accept or to manage any
funds from any donor agencies or organizations in addition to MCC
Funding during the Compact Term;
(15) Any decision to amend, supplement, replace, terminate, or
otherwise change any of the foregoing; and
(16) Any other activity, agreement, document or transaction
requiring the approval of MCC in this Compact, applicable law, any
Governing Document, the Disbursement Agreement, or any other
Supplemental Agreement between the Parties.
(ii) MCC shall have the authority to exercise its approval rights
set forth in this Section 3(c) of this Program Annex in its sole
discretion and independent of any participation or position taken by
the MCC Representative at a meeting of the Board. MCC retains the right
to revoke its approval of any matter, agreement, or action if MCC
concludes, in its sole discretion, that its approval was issued on the
basis of incomplete, inaccurate or misleading information furnished by
the Government, any Government Affiliate, MCA-Mali or any other
Permitted Designee. Notwithstanding any provision in this Compact or
any Supplemental Agreement to the contrary, the exercise by MCC of its
approval rights under this Compact or any Supplemental Agreement shall
not (1) diminish or otherwise affect the Government Responsibilities or
any other obligations or responsibilities of the Government under this
Compact or any Supplemental Agreement, (2) transfer any such
obligations or responsibilities of the Government, or (3) otherwise
subject MCC to any liability.
(d) MCA-Mali.
(i) General. Unless otherwise agreed by the Parties in writing,
MCA-Mali shall, as a Permitted Designee, be responsible for the
oversight and management of the implementation of this Compact. MCA-
Mali shall be governed by applicable law and the Governing Documents.
Each Governing Document shall be in form and substance satisfactory to
MCC and effective on or before the time specified in the Disbursement
Agreement, and based on the following principles:
(1) The Government shall ensure that MCA-Mali shall not assign,
delegate or contract any of the Designated Rights and Responsibilities
without the prior written consent of the Government and MCC. MCA-Mali
shall not establish any Affiliates or subsidiaries (direct or indirect)
without the prior written consent of the Government and MCC.
(2) Unless otherwise agreed by the Parties in writing, MCA-Mali
shall consist of (A) an independent board of directors (the ``Board'')
to oversee MCA-Mali's responsibilities and obligations under this
Compact (including any Designated Rights and Responsibilities) and (B)
a management unit to have overall management (the ``Management'')
responsibility for the implementation of this Compact.
(3) The Government shall ensure that the Governing Documents comply
with the requirements set forth in this Program Annex.
(ii) Board.
(1) Formation. The Government shall ensure that the Board shall be
formed, constituted, governed and operated in accordance with the terms
and conditions set forth in the Governing Documents and any
Supplemental Agreement.
(2) Composition. Unless otherwise agreed by the Parties in writing,
the Board shall consist of no more than eleven (11) voting members and
two (2) non-voting observers identified below.
[[Page 69248]]
(A) The Board shall initially be composed of eleven (11) voting
members as follows, provided that the members identified in subsections
(i)-(vi) below (each, a ``Government Member,'' and each of the other
voting members, a ``Civil Member'') may be replaced by another
government official from a ministry or other government body relevant
to the Program activities pursuant to the Governing Documents, subject
to approval by MCC (such replacement to be referred to thereafter as a
Government Member):
(i) Representative from the Prime Minister's Office, appointed as
the chair (``Chair'') as provided in the Governing Documents;
(ii) Representative from the Ministry of Equipment and Transport;
(iii) Representative from the Ministry of Economy and Finance;
(iv) Representative from the Ministry for Investment Promotion and
Small and Medium-Size Industries;
(v) Representative from the Ministry of Agriculture;
(vi) Representative from the Ministry of Territorial
Administration;
(vii) Representative from the National Committee for Business
Owners;
(viii) Representative from the Chamber of Commerce and Industry;
(ix) Representative from the Chamber of Agriculture;
(x) Representative from civil society organizations representing
youth, selected by the relevant national NGOs and civil society
organizations and based on selection criteria agreed upon by the
Parties; and
(xi) Representative from civil society organizations representing
women, selected by the relevant national NGOs and civil society
organizations and based on selection criteria agreed upon by the
Parties.
(B) The non-voting observers of the Board (each, an ``Observer'')
shall be:
(i) A representative designated by MCC (the ``MCC
Representative''); and
(ii) A representative of environmental NGOs, selected by the
relevant national NGOs and civil society organizations and based on
selection criteria agreed upon by the Parties.
(C) Each Government Member position (other than the Chair) shall be
filled by the individual, during the Compact Term, holding the office
identified, and all Government Members (including the Chair) shall
serve in their capacity as the applicable Government officials and not
in their personal capacity.
(D) Each Civil Member shall serve a two (2) year term.
(E) The Voting Members, by majority vote, may alter the size of the
Board in accordance with the Governing Documents so long as the total
does not exceed eleven (11) members.
(F) Each Observer shall have rights to attend all meetings of the
Board, participate in the discussions of the Board, and receive all
information and documents provided to the Board, together with any
other rights of access to records, employees or facilities as would be
granted to a member of the Board under the Governing Documents.
(G) The Voting Members shall exercise their duties solely in
accordance with the best interests of MCA-Mali, the Program, the
Compact Goal and the Objectives, and shall not undertake any action
that is contrary to those interests or would result in personal gain or
a conflict of interest.
(3) Roles and Responsibilities. The roles and responsibilities of
the Board shall include the following:
(A) The Board shall oversee the Management, the overall
implementation of the Program, and the performance of the Designated
Rights and Responsibilities.
(B) Certain actions may be taken and certain agreements, documents
or instruments executed and delivered, as the case may be, by MCA-Mali
only upon the approval and authorization of the Board as provided under
applicable law or as set forth in any Governing Document, including
each MCC Disbursement Request, selection or termination of certain
Providers and any Implementation Document.
(C) The Chair, unless otherwise provided in the applicable
Governing Documents, shall certify any documents or reports delivered
to MCC in satisfaction of the Government's reporting requirements under
this Compact or any Supplemental Agreement between the Parties (the
``Compact Reports'') or any other documents or reports from time to
time delivered to MCC by MCA-Mali (whether or not such documents or
reports are required to be delivered to MCC), and that such documents
or reports are true, correct and complete.
(D) Without limiting the generality of the Designated Rights and
Responsibilities that the Government may designate to MCA-Mali, and
subject to MCC's contractual rights of approval as set forth in Section
3(c) of this Program Annex, elsewhere in this Compact or any
Supplemental Agreement, the Board shall have the exclusive authority as
between the Board and the Management for all actions defined for the
Board in any Governing Document and which are expressly designated
therein as responsibilities that cannot be delegated further.
(E) The Board shall meet with and exchange information with the
Advisory Councils, as contemplated in Section 3(e) of this Program
Annex. Without limiting the generality of the foregoing, the Board
shall take each Advisory Council's suggestions into consideration in
connection with any amendment to the M&E Plan, pursuant to Section 5(b)
of Annex III.
(4) Indemnification of Civil Members, Observers, and Officers. The
Government shall ensure, at the Government's sole cost and expense,
that appropriate insurance is obtained and appropriate indemnifications
and other protections are provided, acceptable to MCC and to the
fullest extent permitted under the laws of Mali, to ensure that (A) the
Civil Members and the Observers shall not be held personally liable for
the actions or omissions of the Board or MCA-Mali and (B) Officers
shall not be held personally liable for the actions or omissions of the
Board, MCA-Mali or actions or omissions of the Officer so long as
properly within the scope of Officer's authority. Pursuant to Section
5.5 and Section 5.8 of this Compact, the Government and MCA-Mali shall
hold harmless the MCC Representative for any liability or action
arising out of the MCC Representative's role as an Observer on the
Board. The Government hereby waives and releases all claims related to
any such liability and acknowledges that the MCC Representative has no
fiduciary duty to MCA-Mali. In matters arising under or relating to
this Compact, the MCC Representative is not subject to the jurisdiction
of the courts or any other governmental body of Mali. MCA-Mali shall
provide a written waiver and acknowledgement that no fiduciary duty to
MCA-Mali is owed by the MCC Representative.
(iii) Management. Unless otherwise agreed in writing by the
Parties, the Management shall report, through its chief executive
officer (the ``Director General'') or other Officer as designated in
any Governing Document, directly to the Board and shall have the
composition, roles and responsibilities described below and set forth
more particularly in the Governing Documents.
(1) Composition. The Government shall ensure that the Management
shall be composed of qualified experts from the public or private
sectors, including such officers and staff as may be necessary to carry
out effectively its responsibilities, each with such powers and
responsibilities as set forth in the
[[Page 69249]]
Governing Documents, and from time to time in any Supplemental
Agreement between the Parties, including the following: (A) Director
General; (B) Director of Finance and Administration; (C) Legal Adviser;
(D) Director of Procurement; (E) Director of Environmental and Social
Assessment; (F) Director of Monitoring and Evaluation; (G) Director of
Airport Improvement Project; (H) Director of Industrial Park Project;
and (I) Director of Alatona Irrigation Project. Each person holding the
position in any of the sub-clauses (A) through (I), and such other
offices as may be created and designated in accordance with any
Governing Document and any Supplemental Agreement, shall be referred to
as an ``Officer.'' The Management shall be supported by appropriate
administrative and support personnel consistent with the Detailed
Budget for Program administration and any Implementation Document.
(2) Appointment of Officers. The Director General shall be selected
after an open and competitive recruitment and selection process, and
appointed in accordance with the Governing Documents, which appointment
shall be subject to MCC approval. Such appointment shall be further
evidenced by such document as the Parties may agree. Unless otherwise
specified in the Governing Documents, the Officers of MCA-Mali other
than the Director General shall be selected and hired by the Board
after an open and competitive recruitment and selection process, and
appointed in accordance with the Governing Documents, which appointment
shall be subject to MCC approval. Such appointment shall be further
evidenced by such document as the Parties may agree.
(3) Roles and Responsibilities. The roles and responsibilities of
the Management shall include:
(A) The Management shall assist the Board in overseeing the
implementation of the Program and shall have principal responsibility
(subject to the direction and oversight of the Board and subject to
MCC's contractual rights of approval as set forth in Section 3(c) of
this Program Annex or elsewhere in this Compact or any Supplemental
Agreement) for the overall management of the implementation of the
Program.
(B) Without limiting the foregoing general responsibilities or the
generality of Designated Rights and Responsibilities that the
Government may designate to MCA-Mali, the Management shall develop each
Implementation Document, oversee the implementation of the Projects,
manage and coordinate monitoring and evaluation, ensure compliance with
the Fiscal Accountability Plan, and such other responsibilities as set
out in the Governing Documents or otherwise delegated to the Management
by the Board from time to time.
(C) Appropriate Officers as designated in the Governing Documents
shall have the authority to contract on behalf of MCA-Mali under any
procurement undertaken in accordance with the Disbursement Agreement
(including the Procurement Guidelines) in furtherance of the Program.
(D) The Management shall have the obligation and right to approve
certain actions and documents or agreements, including certain Re-
Disbursements, MCC Disbursement Requests, Compact Reports, certain
human resources decisions and certain other actions, as provided in the
Governing Documents.
(e) Advisory Councils.
(i) Formation. The Government shall ensure the establishment of (1)
an advisory council to the Board representing the beneficiaries of the
Airport Improvement Project and the Industrial Park Project (``Airport
Domain Advisory Council''); and (2) an advisory council to the Board
representing the beneficiaries of the Alatona Irrigation Project (the
``Alatona Zone Advisory Council,'' together with the Airport Domain
Advisory Council, the ``Advisory Councils'' and each an ``Advisory
Council''), which Advisory Councils shall be independent of MCA-Mali
and shall be established to the satisfaction of MCC. The Government
shall take all steps necessary to establish the Advisory Councils as
soon as possible following the execution of this Compact.
(ii) Composition.
(1) Each Advisory Council shall consist of no more than fifteen
(15) voting members and shall be composed of representatives of
relevant banking organizations, microfinance institutions, farmer
associations, women's associations, chambers of commerce, local
government, anti-corruption associations and environmental and social
organizations (``Civil Society Stakeholders'').
(2) The Government shall take all actions necessary and appropriate
to ensure that each Advisory Council is established consistent with
this Section 3(e) of this Program Annex and as otherwise specified in
the Governing Documents or otherwise agreed in writing by the Parties.
The composition of each Advisory Council may be adjusted by agreement
of the Parties from time to time to ensure, among others, an adequate
representation of the intended beneficiaries of the relevant Projects.
Each member of an Advisory Council may appoint an alternate, approved
by majority vote of the other members of such Advisory Council, to
serve when the member is unable to participate in a meeting of the
Advisory Council.
(iii) Roles and Responsibilities. Each Advisory Council shall be a
mechanism to provide representatives of the private sector, civil
society and local government the opportunity to provide advice and
input to MCA-Mali regarding the implementation of this Compact. At the
request of any Advisory Council, MCA-Mali shall provide such
information and documents as it deems advisable, subject to appropriate
treatment of such information and documents by the members of such
Advisory Council. Specifically, during each meeting of an Advisory
Council, MCA-Mali shall present an update on the implementation of this
Compact and progress towards achievement of the Objectives. Each
Advisory Council shall have an opportunity to provide regularly to MCA-
Mali its views or recommendations on the performance and progress on
the Projects and Project Activities, any Implementation Document,
procurement, financial management or such other issues as may be
presented from time to time to such Advisory Council or as otherwise
raised by such Advisory Council.
(iv) Meetings. Each Advisory Council shall hold at least two
general meetings per year as well as such other periodic meetings as
may be necessary or appropriate from time to time. The members of each
Advisory Council shall be provided timely advance notice of all such
general meetings, invited to participate in all such meetings and
afforded an opportunity during each such meeting to present their views
or recommendations to such Advisory Council.
(v) Accessibility; Transparency. The members of each Advisory
Council shall be accessible to the beneficiaries they represent to
receive the beneficiaries' comments or suggestions regarding the
Program. The notices for, and the minutes (including the views or
recommendations of the Civil Society Stakeholders expressed) of all
general meetings of, each Advisory Council shall be made public on the
MCA-Mali Web site or otherwise (including television, radio and print)
in a timely manner.
(f) Implementing Entities. Subject to the terms and conditions of
this Compact and any other Supplemental Agreement between the Parties,
MCA-Mali may engage one or more Government Affiliates to implement and
[[Page 69250]]
carry out any Project, Project Activity (or a component thereof) or any
other activities to be carried out in furtherance of this Compact
(each, an ``Implementing Entity''). The Government shall ensure that
MCA-Mali enters into an agreement with each Implementing Entity, in
form and substance satisfactory to MCC, that sets forth the roles and
responsibilities of such Implementing Entity and other appropriate
terms and conditions (including the payment of the Implementing Entity,
if any) (an ``Implementing Entity Agreement''). Any Implementing Entity
Agreement between MCA-Mali and a Government Affiliate that is a
Provider or as may otherwise be required under the Disbursement
Agreement shall be in form and substance satisfactory to MCC. The
Implementing Entity shall report directly to the relevant Officer, as
designated in the applicable Implementing Entity Agreement or as
otherwise agreed by the Parties.
(g) Fiscal Matters.
(i) Fiscal Agent. The Government shall ensure that MCA-Mali engages
a fiscal agent following an international competitive process (a
``Fiscal Agent''), who shall be responsible for, among other things:
(1) Assisting MCA-Mali in preparing the Fiscal Accountability Plan; (2)
ensuring and certifying that Re-Disbursements are properly authorized
and documented in accordance with established control procedures set
forth in the Disbursement Agreement, the Fiscal Agent Agreement and
other Supplemental Agreements; (3) Re-Disbursement from, and cash
management and account reconciliation of, any Permitted Account
established and maintained for the purpose of receiving MCC
Disbursements and making Re-Disbursements (to which the Fiscal Agent
has sole signature authority); (4) providing applicable certifications
for MCC Disbursement Requests; (5) maintaining and retaining proper
accounting, records and document disaster recovery system of all MCC-
funded financial transactions and certain other accounting functions;
(6) producing reports on MCC Disbursements and Re-Disbursements
(including any requests therefor) in accordance with established
procedures set forth in the Disbursement Agreement, the Fiscal Agent
Agreement, the Fiscal Accountability Plan, or any other Supplemental
Agreements; (7) assisting in the preparation of budget development
procedures; and (8) internal management of the Fiscal Agent operations.
Upon the written request of MCC, the Government shall ensure that MCA-
Mali terminates the Fiscal Agent, without any liability to MCC, and the
Government shall ensure that MCA-Mali engages a new Fiscal Agent,
subject to approval by the Board and MCC. The Government shall ensure
that MCA-Mali enters into an agreement with the Fiscal Agent, in form
and substance satisfactory to MCC, that sets forth the roles and
responsibilities of the Fiscal Agent and other appropriate terms and
conditions, such as payment of the Fiscal Agent (a ``Fiscal Agent
Agreement''). Such Fiscal Agent Agreement shall not be terminated until
MCA-Mali has engaged a successor Fiscal Agent or as otherwise agreed by
MCC in writing.
(h) Auditors and Reviewers. The Government shall ensure that MCA-
Mali carries out the Government's audit responsibilities as provided in
Sections 3.8(d), (e) and (f) of this Compact, including engaging one or
more auditors (each, an ``Auditor'') required by Section 3.8(d) of this
Compact. As requested by MCC in writing from time to time, the
Government shall ensure that MCA-Mali also engages (i) an independent
reviewer to conduct reviews of performance and compliance under this
Compact pursuant to Section 3.8(f) of this Compact, which reviewer
shall have the capacity to (1) conduct general reviews of performance
or compliance, (2) conduct environmental audits, and (3) conduct data
quality assessments in accordance with the M&E Plan, as described more
fully in Annex III; and/or (ii) an independent evaluator to assess
performance as required under the M&E Plan (each, a ``Reviewer''). MCA-
Mali shall select any such Auditor(s) and Reviewer(s) in accordance
with any Governing Document or other Supplemental Agreement. The
Government shall ensure that MCA-Mali enters into an agreement with
each Auditor and each Reviewer, in form and substance satisfactory to
MCC, that sets forth the roles and responsibilities of the Auditor or
Reviewer with respect to the audit, review or evaluation, including
access rights, required form and content of the applicable audit,
review or evaluation and other appropriate terms and conditions such as
payment of the Auditor or Reviewer (the ``Auditor/Reviewer
Agreement''). In the case of a financial audit required by Section
3.8(d) of this Compact, such Auditor/Reviewer Agreement shall be
effective no later than one hundred and twenty (120) days prior to the
end of the relevant period to be audited; provided, however, if MCC
requires concurrent audits of financial information or reviews of
performance and compliance under this Compact, then such Auditor/
Reviewer Agreement shall be effective no later than the date agreed by
the Parties in writing.
(i) Procurement Agent. The Government shall ensure that MCA-Mali
engages one or more procurement agents through an international
competitive process (each, a ``Procurement Agent'') to carry out and
certify specified procurement activities in furtherance of this Compact
on behalf of the Government, MCA-Mali, or the Implementing Entity. The
roles and responsibilities of each Procurement Agent and the criteria
for selection of a Procurement Agent shall be as set forth in the
applicable Implementation Letter or Supplemental Agreement. The
Government shall ensure that MCA-Mali enters into an agreement with
each Procurement Agent, in form and substance satisfactory to MCC, that
sets forth the roles and responsibilities of the Procurement Agent with
respect to the conduct, monitoring and review of procurements and other
appropriate terms and conditions, such as payment of the Procurement
Agent (each, a ``Procurement Agent Agreement''). Any Procurement Agent
shall adhere to the procurement standards set forth in the Disbursement
Agreement and the Procurement Guidelines and ensure procurements are
consistent with the procurement plan adopted by MCA-Mali pursuant to
the Disbursement Agreement (the ``Procurement Plan''), unless MCA-Mali
and MCC otherwise agree in writing.
4. Finances and Fiscal Accountability
(a) Multi-Year Financial Plan; Detailed Budget.
(i) Multi-Year Financial Plan. The multi-year financial plan for
the Program, showing the estimated amount of MCC Funding allocable to
each Project (and related Project Activities), the administration of
the Program (and its components) and the monitoring and evaluation of
the Program (the ``Multi-Year Financial Plan'') over the Compact Term
on an annual basis, is summarized in Annex II to this Compact.
(ii) Detailed Budget. During the Compact Term, the Government shall
ensure that MCA-Mali timely delivers to MCC a detailed budget, at a
level of detail and in a format acceptable to MCC, for the
administration of the Program, the monitoring and evaluation of the
Program, and the implementation of each Project (the ``Detailed
Budget''). The Detailed Budget shall be a component of the Work Plan
and shall be delivered by such time as specified in the Disbursement
Agreement, or as may otherwise be agreed by the Parties.
[[Page 69251]]
(iii) Expenditures. Unless the Parties otherwise agree in writing,
no financial commitment involving MCC Funding shall be made, no
obligation of MCC Funding shall be incurred, and no Re-Disbursement
shall be made or MCC Disbursement Request shall be submitted, for any
activity or expenditure unless the expense for such activity or
expenditure is provided for in the Detailed Budget, and unless
uncommitted funds exist in the balance of the Detailed Budget for the
relevant period.
(iv) Modifications to Multi-Year Financial Plan or Detailed Budget.
Notwithstanding anything to the contrary in this Compact, MCA-Mali may
amend the Multi-Year Financial Plan, the Detailed Budget, or any
component thereof (including any amendment that would reallocate the
funds among the Projects, the Project Activities, or any activity under
Program administration or M&E as shown in Annex II), without amending
this Compact so long as MCA-Mali requests in writing and receives the
approval of MCC for such amendment and such amendment is consistent
with the requirements of this Compact (including Section 4 of Annex
II), the Disbursement Agreement and any other Supplemental Agreement
between the Parties. Any such amendment shall (1) be consistent with
the Objectives and the Implementation Documents; (2) shall not
materially adversely impact the applicable Project, Project Activity
(or any component thereof), or any activity under Program
administration or M&E as shown in Annex II; (3) shall not cause the
amount of MCC Funding to exceed the aggregate amount specified in
Section 2.1(a) of this Compact; and (4) shall not cause the
Government's obligations or responsibilities or overall contribution of
resources to be less than as specified in Section 2.2(a) of this
Compact, this Annex I or elsewhere in this Compact. Upon any such
amendment, MCA-Mali shall deliver to MCC a revised Detailed Budget,
together with a revised Multi-Year Financial Plan, reflecting such
amendment, along with the next MCC Disbursement Request.
(b) Disbursement and Re-Disbursement. The Disbursement Agreement,
as amended from time to time, shall specify the terms, conditions and
procedures on which MCC Disbursements and Re-Disbursements shall be
made. The obligation of MCC to make MCC Disbursements or approve Re-
Disbursements is subject to the fulfillment, waiver or deferral of any
such terms and conditions. The Government and MCA-Mali shall jointly
submit the applicable request for an MCC Disbursement (the ``MCC
Disbursement Request'') as may be specified in the Disbursement
Agreement. MCC will make MCC Disbursements in tranches to a Permitted
Account from time to time as provided in the Disbursement Agreement or
as may otherwise be agreed by the Parties, subject to Program
requirements and performance by the Government, MCA-Mali and other
relevant parties in furtherance of this Compact. Re-Disbursements will
be made from time to time based on requests by an authorized
representative of the appropriate party designated for the size and
type of Re-Disbursement in accordance with any Governing Document and
Disbursement Agreement; provided, however, unless otherwise agreed by
the Parties in writing, no Re-Disbursement shall be made unless and
until the written approvals specified herein and in any Governing
Document and the Disbursement Agreement for such Re-Disbursement have
been obtained and delivered to the Fiscal Agent.
(c) Fiscal Accountability Plan. By such time as specified in the
Disbursement Agreement or as otherwise agreed by the Parties, MCA-Mali
shall adopt, as part of the Implementation Documents, a plan that
identifies the principles, mechanisms and procedures to ensure
appropriate fiscal accountability for the use of MCC Funding provided
under this Compact, including the process to ensure that open, fair,
and competitive procedures will be used in a transparent manner in the
administration of grants or cooperative agreements and the procurement
of goods, works and services for the accomplishment of the Objectives
(the ``Fiscal Accountability Plan''). The Fiscal Accountability Plan
shall set forth, among others, requirements with respect to the
following matters: (i) Re-Disbursements, timely payment to vendors,
cash management and account reconciliation; (ii) funds control and
documentation; (iii) accounting standards and systems; (iv) content and
timing of reports; (v) preparing budget development procedures and the
Compact implementation budget; (vi) policies concerning records,
document disaster recovery, public availability of all financial
information and asset management; (vii) procurement and contracting
practices; (viii) inventory control; (ix) the role of independent
auditors; (x) the roles of fiscal agents and procurement agents; (xi)
separation of duties and internal controls; and (xii) certifications,
powers, authorities and delegations.
(d) Permitted Accounts. The Government shall establish, or cause to
be established, such accounts (each, a ``Permitted Account,'' and,
collectively, the ``Permitted Accounts'') as may be agreed by the
Parties in writing from time to time, including:
(i) A single, completely separate United States Dollar interest-
bearing account (the ``Special Account'') at a commercial bank, subject
to MCC approval, that is procured through a competitive process to
receive MCC Disbursements;
(ii) If necessary, an interest-bearing local currency of Mali
account (the ``Local Account'') at a commercial bank in Mali, subject
to MCC approval, that is procured through a competitive process to
which funds deposited in the Special Account will be transferred for
the purpose of making Re-Disbursements; and
(iii) Such other interest-bearing accounts to receive MCC
Disbursements in such banks as the Parties mutually agree upon in
writing.
No other funds shall be commingled in a Permitted Account other
than MCC Funding and Accrued Interest thereon. All MCC Funding held in
an interest-bearing Permitted Account shall earn interest at a rate of
no less than such amount as the Parties may agree in the applicable
Bank Agreement or otherwise. MCC shall have the right, among others, to
view any Permitted Account statements and activity directly on-line,
where feasible, or at such other frequency as the Parties may otherwise
agree. By such time as shall be specified in the Disbursement Agreement
or as otherwise agreed by the Parties, the Government shall ensure
that, for each Permitted Account, MCA-Mali enters into an agreement
with the applicable Bank, satisfactory to MCC, that sets forth the
signatory authority, access rights, anti-money laundering and anti-
terrorist financing provisions, and other terms related to the
Permitted Account (each, a ``Bank Agreement''). For purposes of this
Compact, the banks holding an account referenced in Sections 4(d) of
this Program Annex are each a ``Bank'' and are collectively referred to
as the ``Banks.''
5. Transparency; Accountability
Transparency and accountability to MCC and to the beneficiaries are
important aspects of the Program and the Projects. Without limiting the
generality of the foregoing, and in an effort to achieve the goals of
transparency and accountability, the
[[Page 69252]]
Government shall ensure that MCA-Mali:
(a) Establishes an e-mail suggestion box as well as a means for
other written comments that interested persons may use to communicate
ideas, suggestions or feedback to MCA-Mali;
(b) Considers as a factor in its decisionmaking the recommendations
of the Advisory Councils;
(c) Develops and maintains, in a timely, accurate and appropriately
comprehensive manner, the MCA-Mali Web site that includes postings of
information and documents in English and French;
(d) Posts on the MCA-Mali Web site, and otherwise makes publicly
available via appropriate means (including television, radio and
print), in the appropriate language the following documents or
information from time to time:
(i) This Compact;
(ii) All minutes of the meetings of the Board and the meetings of
the Advisory Councils, unless otherwise agreed by the Parties;
(iii) The M&E Plan, as amended from time to time, along with
periodic reports on Program performance;
(iv) Such financial information as may be required by this Compact,
the Disbursement Agreement or any other Supplemental Agreement, or as
may otherwise be agreed from time to time by the Parties;
(v) All Compact Reports;
(vi) All audit reports by an Auditor and any periodic reports or
evaluations by a Reviewer;
(vii) All relevant environmental impact assessments and supporting
documents, and such other environmental documentation as MCC may
request;
(viii) A copy of the Disbursement Agreement, as amended from time
to time;
(ix) A copy of any document relating to the formation, organization
and governance of MCA-Mali, including all Governing Documents, together
with any amendments thereto; and
(x) A copy of the Procurement Guidelines, any procurement policies
or procedures and standard documents, certain information derived from
each Procurement Plan (as specified in the Disbursement Agreement), and
all bid requests and notifications of awarded contracts.
6. Environmental Accountability
(a) The Government shall ensure that MCA-Mali (or any other
Permitted Designee) (i) undertakes and completes any environmental
impact assessments (each, an ``EIA''), any environmental assessment
(each an ``EA''), environmental management plans (each, an ``EMP'') and
resettlement action plans (each, a ``RAP''), each in form and substance
satisfactory to MCC, and as required under the laws of Mali, the
Environmental Guidelines, this Compact or any Supplemental Agreement or
as otherwise required by MCC; and (ii) undertakes to implement any
environmental and social mitigation measures identified in such
assessments or plans to MCC's satisfaction.
(b) The Government shall commit to fund all necessary costs of
environmental mitigation (including costs of resettlement) not
specifically provided for in the budget for any Project.
Schedule 1 to Annex I--Airport Improvement Project
This Schedule 1 generally describes and summarizes the key elements
of the project that the Parties intend to implement in furtherance of
the Bamako-S[eacute]nou Airport Improvement Project Objective (the
``Airport Improvement Project''). Additional details regarding the
implementation of the Airport Improvement Project will be included in
the Implementation Documents and in the relevant Supplemental
Agreements.
1. Background
Economic growth and poverty reduction depend on enhanced access to
markets and trade, but Mali's access is severely constrained. The
Airport Improvement Project will expand Mali's access to markets and
trade through improvements to the transportation infrastructure at the
Airport, and better management of the national air transport system.
The Government recognizes the importance of improved air transportation
infrastructure. Mali's PRSP for 2002 includes rehabilitation of Airport
infrastructure to ``promote access of Malian producers to domestic and
international markets.''
Mali, a landlocked country, depends heavily on inadequate rail and
road networks that result in high transportation costs, as well as on
freight transport through seaports in neighboring countries, such as
Conakry, Guinea (Bamako's closest port which is 1000 km away) and
Abidjan, Cote d'Ivoire. In the last few years, the instability in Cote
d'Ivoire has dramatically limited Mali's market access. Before the
outbreak of the Ivorian crisis, 70% of Malian exports were transported
via the port of Abidjan. In 2003, this amount dwindled to less than 18%
due to the aforementioned crisis. Mali cannot control overland routes
to international and regional markets. Therefore, air traffic has
become Mali's lifeline for transportation of both passengers and export
products.
The deteriorating conditions at the Airport will soon limit the
Airport's capacity to handle air traffic growth if significant capital
improvements are not made. The Airport's basic infrastructure dates
from 1974, is in poor condition, and is inadequate to handle increased
passenger and cargo traffic. On the airside, the runway is too short to
accommodate large aircraft without take-off load penalties, the
aeronautical pavements urgently need resurfacing and reinforcement, the
air navigation aids are reaching the end of their useful life, and
airfield security is deficient. On the landside, the passenger terminal
building is too small to handle current traffic volumes at acceptable
levels of service, and the facilities and equipment are in poor
physical condition.
2. Summary of Project and Related Project Activities
The Airport Improvement Project is intended to remove constraints
to air traffic growth and increase the Airport's efficiency in both
passenger and freight handling through airside and landside
infrastructure improvements, as well as the establishment of
appropriate institutional mechanisms to ensure effective management,
operation, and maintenance of the Airport facilities over the long
term. The Airport Improvement Project includes the following Project
Activities:
Airside Infrastructure. Improvements will include
reinforcement overlay to, and expansion of, the runway, taxiway, and
apron areas; replacement of deteriorating navigational equipment; and
upgrades of Airport security systems.
Landside Infrastructure. Improvements will be made to the
existing passenger terminal and a new passenger terminal will be
constructed, as well as support facilities, airport roads, and parking
lots. Certain utilities, including water supply, solid waste disposal
facilities, wastewater treatment, and power generation, are also
planned to be constructed and designed as joint systems to support both
the proposed investments at the Airport and the adjacent Industrial
Park.
Institutional Strengthening. Infrastructure improvements
will be accompanied by the establishment of appropriate institutional
mechanisms to ensure effective management, operation and maintenance of
the Airport facilities over the long term. These measures will involve
both the management of the
[[Page 69253]]
Airport, as well as the wider regulatory framework governing the civil
aviation sector in Mali.
In connection with the Project Activities, MCA-Mali will assist and
take all necessary steps to ensure that the joint EIA, EMP/EMS,
including an HIV/AIDS awareness plan, and RAP (consistent with World
Bank Operational Policy 4.12 on Involuntary Resettlement) for all
activities of the Airport Improvement Project and the Industrial Park
Project are processed and permits delivered in accordance with Mali
Decr[eacute]t No. 03-594-P-RM on environmental impact studies and the
Environmental Guidelines, all of which will be subject to MCC approval.
MCC Funding will support implementation of the environmental and social
mitigation measures identified in the EIA, EMP/EMS, and RAP, in a
manner satisfactory to MCC, according to the conditions precedent set
forth in the Disbursement Agreement.
The M&E Plan (described in Annex III) will set forth anticipated
results and, where appropriate, regular benchmarks that may be used to
monitor the progress of the implementation of the Airport Improvement
Project. Performance against these benchmarks, as well as the overall
impact of the Airport Improvement Project, will be assessed and
reported at the intervals to be specified in the M&E Plan, or as
otherwise agreed by the Parties, from time to time. The Parties expect
that additional indicators will be identified during implementation of
the Airport Improvement Project. The expected results from, and the key
benchmarks to measure progress on, the Airport Improvement Project, as
well as the Project Activities undertaken or funded thereunder, are set
forth in Annex III.
Estimated amounts of MCC Funding for each Project Activity for the
Airport Improvement Project are identified in Annex II. Conditions
precedent to each Project Activity under the Airport Improvement
Project, and the sequencing of such Project Activities, shall be set
forth in the Disbursement Agreement, other Supplemental Agreements and
the relevant Implementation Documents. The following summarizes each
Project Activity under the Airport Improvement Project:
(a) Airside Infrastructure (the ``Airside Infrastructure
Activity'').
Although the existing aircraft pavements, runway, and parking apron
surfaces are functional, they are more than thirty years old and
detailed studies have indicated that they will deteriorate without
near-term improvements. In addition to being in poor condition, the
runway is also one of the shortest in West Africa, which has further
constrained the Airport's ability to attract air services to Mali and
retain them. This Project Activity will improve the design parameters
(geometry and bearing strength) of the airside infrastructure and
improve safety and security operations such that the Airport can more
efficiently accommodate a greater volume of air traffic and heavier
loads in the future. Specifically, MCC Funding will support the
following:
(i) Resurfacing, reinforcement, and expansion of the runway, apron,
and aircraft pavement areas through (1) a structural overlay to apron,
taxiway, and runway areas; (2) an extension of the runway of at least
400 meters; and (3) an extension of the taxiway connector aircraft
parking apron to provide a location for additional aircraft overnight
staging and a back-up for smaller domestic and charter aircraft.
(ii) Replacement and upgrading of existing aging navigational aids
to bring Airport facilities up to a ``common level of service,'' as the
equipment has reached the end of its useful life. The extension of the
runway will also require additions to the airfield lighting system.
(iii) Improvement to airfield security will include (1) a perimeter
security road; (2) explosives detection, x-ray, and handheld metal
detection equipment; (3) security identification/access and video
surveillance systems; and (4) a central security control point and
communications equipment.
(b) Landside Infrastructure (the ``Landside Infrastructure
Activity'').
Due to limited expansion over the past 32 years, the ability of the
terminal to accommodate passenger traffic has steadily deteriorated to
the point that it operates at IATA Level of Service ``F'' (chronic
congestion and frequent system breakdown). The existing ground support
equipment facilities are inefficient, outdated, and lacking in space
for storage of materials; their current location separates passenger
activities from Airport support operations, with a resulting negative
impact on the functionality and security of the Airport. As passenger
and cargo traffic increase over the next 10-15 years, significant
utility infrastructure improvements will also be needed to meet
projected demand. This Project Activity will expand the size, quality,
and operational efficiency of the Airport's landside infrastructure so
that it can accommodate significant increases in passenger and cargo
traffic in the future. Specifically, MCC Funding will support the
following:
(i) Upgrade of the passenger terminal facilities by (1)
refurbishing the existing Terminal A's passenger ticketing, lounge, and
passport control areas; (2) expanding the existing Terminal B's
immigration and baggage areas; and (3) constructing a new passenger
terminal building.
(ii) Enhancement of support facilities and equipment for ground
support vehicles and materials, Airport maintenance and auxiliary
equipment areas, and fire-fighting vehicles.
(iii) Provision for road and terminal parking improvements to
improve current circulation areas and meet future projected needs.
(iv) Construction of supporting utility infrastructure, much of
which will be shared with the Industrial Park Project, to handle the
projected service requirements of the Airport. In particular,
wastewater, water, solid waste, power, telecommunications, and drainage
systems will be improved and enhanced.
(c) Project Activity: Institutional Strengthening (the
``Institutional Strengthening Activity'').
Under the present division of jurisdictions, a number of entities
have responsibility for the civil aviation sector in Mali in general
and the regulation, oversight, management, operation, and development
of the Airport in particular. The Ministry of Equipment and Transport
has overall responsibility, with oversight and regulation of the civil
aviation sector and airports delegated to a new independent agency,
ANAC. The Airport's maintenance and operation responsibilities are
split between the air navigation service provider, ASECNA, for airside
facilities and the Airport operator, A[eacute]roports du Mali
(``AdM''), for landside facilities. ASECNA is responsible for the
``technical'' aspects of the Airport, including the runway, taxiways,
apron, airfield lighting, navigational aids, control tower,
telecommunications and fire fighting and rescue facilities. AdM, in
turn, is responsible for the ``commercial'' aspects of the Airport,
including the passenger terminal, landside roads and parking, cargo
terminal, flight kitchen and freight forwarders' facilities. According
to the existing institutional arrangements, both organizations operate
and maintain facilities put at their disposal by the Government.
Specifically, MCC Funding will support the following:
(i) Reinforcement of the new civil aviation regulatory and
oversight agency (ANAC) by providing technical assistance to establish
a new organizational structure, administrative
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and financial procedures, staffing and training, and providing
equipment and facilities.
(ii) Rationalization and reinforcement of the Airport's management
and operations agency (AdM) by providing technical assistance to
establish a model for the management of the Airport and the long-term
future status and organizational structure of AdM, including provision
for eventual private sector participation.
3. Beneficiaries
Improvements in the airside and landside facilities in the Airport
are intended to support economic growth through (a) increased revenue
generated by growth in passenger and aircraft traffic, and (b)
increases in the value and volume of goods shipped through the Airport.
Direct beneficiaries include passengers who spend less time going
through Airport procedures prior to boarding, additional Airport
services employees for Airport operations, baggage handling, and flight
kitchen, as well as passenger terminal commercial concessions. An
increase in foreign passengers implies additional substantial benefits
for the tourism industry, both in terms of increased revenues to hotels
and restaurants and additional employment and wages.
The indirect impact of the Airport Improvement Project through
increased tourism and impact on the informal sector could have a
significant effect on growth and poverty reduction. Increased demand
for airline services should have significant additional long-term
benefits for Mali as tourist facilities expand in tandem with increased
tourism. Further, new business travelers may translate into additional
foreign investment for Mali which could transform the economic profile
of the country.
The informal sector active around the Airport will benefit from an
expansion of Airport passenger and cargo traffic. Since unemployment
and underemployment in the Bamako region are substantial, a proportion
of new service employees are likely to transfer from low paying,
sporadic informal activity to higher paying, steady work at the
Airport, an additional important indirect benefit to the economy.
A majority of those impacted by the Airport Improvement Project are
expected to be women since official Malian employment data indicate
that 82% of hotel and restaurant workers in Bamako are women. Women
also account for 56% of the informal sector and the majority of working
women in Bamako are employed in the informal sector. Further analysis
using data from specific surveys to be conducted, will provide more
detailed and reliable data on employment and poverty in the Bamako
area.
4. Donor Coordination; Role of Private Sector and Civil Society
The Airport Improvement Project leverages and complements other
donor, private sector and civil society activities in Mali as described
below. Throughout implementation, MCC will continue to collaborate with
these donors to strengthen the institutional reforms and broaden access
to the Airport for passengers and goods.
USDOT Safe Skies for Africa (SSFA)
The SSFA program is intended to promote sustainable improvements in
aviation safety, security, and air navigation, and to support Africa's
integration into the global economy. It is based on the premise that
``Safe Skies'' are a prerequisite for increased trade and investment
and long-term economic development in Africa. Specific goals of the
SSFA program include: (a) Increasing the number of sub-Saharan African
countries that meet ICAO safety standards (based on Federal Aviation
Administration (FAA) assessments); (b) improving airport security in
the region; and (c) improving regional air navigation services. SSFA
coordinates activities of other agencies such as the FAA, TSA and the
National Transportation Safety Board to improve the capacities of
African aviation organizations.
World Bank
The World Bank is assisting in the funding of a regional program in
West and Central Africa aimed at improving civil aviation safety and
security as a key element of improving the performance and
affordability of air transportation and optimizing its role as an
engine of economic and social development. With respect to Mali, a
country agreement under this program focuses on strengthening the
oversight capacities of ANAC and improving Airport security and safety,
including the provision of civil aviation authority equipment, Airport
screening equipment, a crisis center to meet ICAO requirements, some
Airport infrastructure and consulting services aimed at reform and
capacity building.
The World Bank has also signed an agreement with the Government for
the ``Mali Growth Support Project'' which includes, among other
activities, loan financing for the development of Airport and
industrial park facilities located within the Airport domain. It also
includes assistance aimed at strengthening the management of the
Airport and Industrial Park. The program is to be realized between 2006
and 2011.
COSCAP/WAEMU
Mali is a signatory of a recent agreement involving the West
African Economic and Monetary Union (``WAEMU'') and Mauritania and
ICAO, referred to as Cooperative Operational Safety and Continuing
Airworthiness Project (``COSCAP''), with the goal of promoting the
security and safety of aviation in the West African region. Under this
agreement, a permanent community agency of safety and security is to be
established, with the aim of achieving better efficiency and economy by
means of the common use of resources on the part of the signatory
countries.
Private Sector and Civil Society
Private sector and civil society participated in the consultative
process that resulted in inclusion of the Airport Improvement Project
in the Compact. This Project aims to leverage investment by businesses
in the Airport, as well as through businesses that benefit from Airport
traffic (including airlines, ground support operators, retail
concessions, businesses exporting and importing through the Airport,
tourism operators, etc.), so efforts will be made to continue to
involve their feedback on the design and implementation of this
Project. Both civil society and the private sector will be represented
on the MCA-Mali Board of Directors and Advisory Councils. In addition,
consultations on the EIA will be conducted with affected parties and
other stakeholders, in accordance with the Environmental Guidelines,
Mali Decr[eacute]t No. 03-594-P-RM on environmental impact studies, and
the draft Arr[ecirc]te Interministeriel on the procedure for public
consultation on environmental impact studies. Also, consultations of
persons affected by the Airport Improvement Project will be conducted
for the RAP, consistent with World Bank Operational Policy 4.12 on
Involuntary Resettlement.
5. U.S. Agency for International Development (``USAID'')
Both USAID-funded ``Mali Finance'' and ``Mali Trade'' projects have
improved the value chains of agricultural products such as mangoes and
green beans. These high value products have strong potential for
increased exportation via air freight.
6. Sustainability
The Airport Improvement Project will build on recent Government
efforts to
[[Page 69255]]
reform the Malian civil aviation sector through the Institutional
Strengthening Activity, providing technical assistance to both ANAC and
AdM. The Airport Improvement Project will also assist in improving the
maintenance and operation of the Airport by ensuring the implementation
of efficient, transparent and effective private participation in the
management of the Airport, in collaboration with relevant Government
entities, as well as the private sector. Environmental and social
sustainability is expected to be achieved through the development and
implementation of an EMP that will guide construction activities and
implementation of pollution control for new and rehabilitated
infrastructure. An Environmental Management System (``EMS'') will be
developed to provide for continuing environmental sustainability of
Airport operations. AdM and the DNCPN will receive technical assistance
to develop environmental capacity during the Compact Term. AdM will be
required to seek ISO 14000 certification prior to the end of the
Compact Term. AdM will also be required to hire an Airport and
Industrial Park environmental manager to oversee the implementation of
environmental requirements.
7. Proposals
Public solicitations for proposals are anticipated to procure
goods, works and services, as appropriate, to implement all Project
Activities under the Airport Improvement Project. MCA-Mali will
develop, subject to MCC approval, a process for consideration of all
such proposals. Notwithstanding the foregoing, MCA-Mali may also
consider, using a process developed subject to MCC approval, any
unsolicited proposals it might receive.
8. Government Obligation
The Government shall assure the provision of adequate financing for
the rehabilitation and expansion of air cargo facilities.
Schedule 2 to Annex I--Industrial Park Project
This Schedule 2 generally describes and summarizes the key elements
of the project that the Parties intend to implement in furtherance of
the Industrial Park Project Objective (the ``Industrial Park
Project''). Additional details regarding the implementation of the
Industrial Park Project will be included in the Implementation
Documents and in the relevant Supplemental Agreements.
1. Background
An adequate water supply, reliable power, wastewater treatment
systems, and solid waste disposal are necessary to attract
entrepreneurs and promote economic growth. Currently, Mali lacks the
infrastructure to provide these services reliably. The Industrial Park
Project will create this necessary infrastructure to respond to the
pent-up demand for serviced industrial land. Through an MCC-funded
demand study conducted in January 2006, Malian business owners strongly
expressed a willingness to pay for good quality land with solid
infrastructure and reliable services. The Industrial Park Project also
aims to reduce the excessive cost and time of setting up and running
businesses in Mali. Out of all manufacturing projects licensed by the
CNPI, only a fraction are implemented. This poor implementation rate is
a current concern of the Government and steps have been taken to
improve the business climate and provide the necessary infrastructure
through MCC's investment. In addition to contributing to the efforts
toward policy and institutional reform, the Industrial Park Project
will provide business services to support small- and medium-sized
enterprises.
2. Summary of Project and Related Project Activities
The Industrial Park Project, located within the Airport domain,
will develop a platform for industrial activity (100 hectares (``ha'')
initially) to meet the high and growing demand for industrial land. The
Industrial Park is intended to be an anchor for a growing industrial
sector in Mali, thereby alleviating a key constraint to value-added
production and economic growth. Reliable provision of utility services,
including electricity, water, and wastewater, will increase business
productivity. This Project will leverage national reforms in the
business sector, reducing the cost and time to register a business, and
enhance management and planning of the industrial sector. The
Industrial Park Project includes the following Project Activities:
Primary and Secondary Infrastructure. The Industrial Park
Project will fund primary and secondary infrastructure systems for the
100 ha Industrial Park, designed for potential expansion to a larger
200 ha industrial zone (as identified in the Proposal). The primary
infrastructure will include major road systems and utilities such as
water supply mains and pump stations. Secondary infrastructure will
include roads leading into Industrial Park subzones as well as lateral
water/drainage piping, etc. to service the smaller parcels. The
tertiary (on-lot) infrastructure, including interior roads and parking,
water supply taps/connections and fire protection, electrical and
telecommunications, and wastewater collection (and possibly
pretreatment), are all to be financed and built by the industries
locating in the Industrial Park.
Resettlement. Resettlement activities, which must be
consistent with World Bank Operational Policy 4.12 on Involuntary
Resettlement, require compensation for loss of livelihoods as a result
of both physical and economic displacement. The scope of this
displacement is larger than the 200 ha acquisition of land and
compensation of users for the Industrial Park. Common infrastructure
facilities for wastewater treatment, power generation, water supply,
conveyance and storage, and solid and hazardous waste disposal serve
both the Industrial Park and the Airport. All of these infrastructure
facilities require acquisition and clearing of land and rights of way
outside the Industrial Park, both inside and outside the Airport
domain. To compensate peri-urban cultivators who practice rain-fed
agriculture in the Airport domain and whose lands are required for the
Industrial Park Project and the Airport Improvement Project, the
Industrial Park Project will develop serviced garden plots offered on a
long-term (e.g., 40-year) lease on land elsewhere in the Airport
domain. Acquisition of other land for infrastructure and rights of way
located outside the Airport domain will also require compensation, the
nature of which will be determined during the development of the RAP,
which will cover the resettlement and compensation issues related to
both the Industrial Park Project and the Airport Improvement Project.
Institutional Strengthening. Infrastructure improvements
will be accompanied by the establishment of appropriate mechanisms that
will ensure effective management, operation and maintenance of the
facilities over the long term. These mechanisms will involve the
management of the Industrial Park itself, as well as administrative and
regulatory reforms to alleviate current constraints to business
development in Mali. To encourage the development of small- and medium-
sized enterprises, the Industrial Park Project will provide business
services such as access to financial and market information and export
facilitation services. The Industrial Park Project will also focus on
how to ensure
[[Page 69256]]
coordination in operations and maintenance of shared utilities between
the Airport and Industrial Park operators.
In connection with the Project Activities, MCA-Mali will assist and
take all necessary steps to ensure that the joint EIA, EMP/EMS,
including an HIV/AIDS awareness plan, and RAP (consistent with World
Bank Operational Policy 4.12 on Involuntary Resettlement) for all
activities of the Industrial Park Project and the Airport Improvement
Project are processed and permits delivered in accordance with Mali
Decr[eacute]t No. 03-594-P-RM on environmental impact study and the
Environmental Guidelines, all of which will be subject to MCC approval.
MCC Funding will support implementation of the environmental and social
mitigation measures as identified in the EIA, EMP/EMS, and RAP,
satisfactory to MCC, according to the conditions precedent set forth in
the Disbursement Agreement.
The M&E Plan (described in Annex III) will set forth anticipated
results and, where appropriate, regular benchmarks that may be used to
monitor the progress of the implementation of the Industrial Park
Project. Performance against these benchmarks, as well as the overall
impact of the Industrial Park Project, will be assessed and reported at
the intervals to be specified in the M&E Plan, or as otherwise agreed
by the Parties, from time to time. The Parties expect that additional
indicators will be identified during implementation of the Industrial
Park Project. The expected results from, and the key benchmarks to
measure progress on, the Industrial Park Project, as well as the
Project Activities undertaken or funded thereunder, are set forth in
Annex III.
Estimated amounts of MCC Funding for each Project Activity for the
Industrial Park Project are identified in Annex II. Conditions
precedent to each Project Activity under the Industrial Park Project,
and the sequencing of such Project Activities, shall be set forth in
the Disbursement Agreement, any other Supplemental Agreements and the
relevant Implementation Documents. The following summarizes each
Project Activity under the Industrial Park Project:
(a) Primary and Secondary Infrastructure (the ``Primary and
Secondary Infrastructure Activity'').
The Primary and Secondary Infrastructure Activity will involve the
building of necessary infrastructure and the reliable provision of
utility services for the Industrial Park. Consistent with international
best practices, the Industrial Park Project's primary and secondary
infrastructure has been sized to meet projected demand for land over a
20-year horizon (100 ha within a larger 200 ha zone). As plots are
marketed and leased, the industries themselves will build the on-lot
buildings and facilities to begin operations. This Project Activity
will provide the backbone for the first modernly managed, serviced
industrial park in Mali, meeting the significant immediate and
projected need for industrial space in the country. Specifically, MCC
Funding will support the following:
(i) Transportation improvements including construction of a primary
road, adjustment and construction of traffic rotaries, and development
of internal access roads and sidewalks, to handle the projected traffic
for the Industrial Park. In addition, some earthworks (leveling and
compacting) are required due to existing site topography.
(ii) Wastewater collection and treatment including construction of
a wastewater treatment plant (to be shared with the Airport Improvement
Project), pumping station, and collection system, as there is currently
no adequate system available in the Airport domain.
(iii) Solid and hazardous waste treatment and disposal through the
development of a Government landfill site located east of the Airport
domain or an alternative incinerator facility. Solid and hazardous
waste cells will be constructed to meet the projected waste arising
from the Airport Improvement Project and Industrial Park Project.
(iv) Power generation and distribution by funding a 20 MW co-
generation power plant to be shared with the Airport Improvement
Project, along with high-tension lines, transformers, back-up emergency
generators, and electric substations.
(v) Water treatment and supply through development of a water
treatment plant and pump station west of the Airport domain, to be
shared with the Airport Improvement Project. In addition, the
Industrial Park Project will fund water storage tanks and an enhanced
distribution network for the Airport domain.
(vi) Telecommunications improvements by installing backbone fiber-
optic cable network.
(vii) Surface drainage improvements, including retention basins,
drainage canal improvements, and stormwater collection drains, to
control and retain storm water runoff, especially during the rainy
season.
(viii) Security improvements such as a perimeter security fence
will be required for the new Industrial Park.
(b) Resettlement (the ``Resettlement Activity'').
The Resettlement Activity will involve resettlement compensation
for all those economically or physically displaced as a result of the
Industrial Park Project and related support infrastructure, which will
be shared by the Industrial Park Project and the Airport Improvement
Project. Specifically, MCC funding will support the following:
(i) Development of serviced garden plots on approximately 20 ha of
the Airport domain, to be offered on a long-term (e.g., 40-year) lease
to replace the loss of resources (physical or conomic displacement) of
those cultivating or otherwise using the Industrial Park area or other
parts of the Airport domain where land acquisition is required for the
common infrastructure. The specific area needed will depend upon the
cadastral mapping of lands and identification of rights holders, to be
provided by the Government, for lands required by the Project
Activities within the Airport domain.
(ii) Final design and implementation of siting and designs of
serviced market gardening plots, based on consultation with those
affected and agreement on the location.
(iii) Compensation, which could include serviced garden plots or
other forms of compensation, for those physically or economically
displaced in locations outside the Airport domain that are required for
infrastructure construction and rights of way, based on the locations
of the infrastructure and the analysis to be conducted in the RAP.
(c) Institutional Strengthening (the ``Institutional Strengthening
Activity'').
Currently, enterprises in the Bamako area have one major option for
industrial land--Sotuba, located in the Bamako region and one of the
few industrial zones in the country. Unfortunately, Sotuba is
unsuitable for further industrial development. Roads are unpaved,
narrow, and congested; water and electricity connections are
inadequate; drainage is poor, with flooding common in the rainy season;
and there is no control on the kind or location of uses in the
industrial zone, so that slaughterhouses are located next to milk
factories and residential areas have encroached into industrial spaces.
The problems of Sotuba can be directly attributed to a lack of initial
planning and the absence of an appropriate management structure to
supervise the development and the ongoing operation of the industrial
zone. Specifically, MCC Funding will support the following:
(i) Recruitment and start-up of a private operator, selected
through
[[Page 69257]]
international tender, to manage the day-to-day operations of the
Industrial Park.
(ii) Support to businesses in the Industrial Park and other related
organizations to the Industrial Park. This will involve limited support
services to small- and medium-sized enterprises in areas such as access
to financial and market information and export facilitation. As part of
this sub-activity, the Industrial Park will also coordinate closely
with and support organizations responsible for attracting and approving
industrial projects, as well as with regulatory and licensing bodies.
(iii) Coordination in operations and maintenance of shared
utilities between the Airport and Industrial Park operators. This will
also involve coordination with utility companies and other Government
agencies involved in approving, managing, and operating utilities that
will serve the Industrial Park and Airport.
3. Beneficiaries
The industrial sector in Mali currently accounts for eight percent
of GDP. The IMF projections suggest that industry (manufacturing,
mining, energy, and construction) will continue to expand at more than
a six percent annual rate through 2010. Manufacturing output accounts
for about one-third of all industrial activity, with the majority of
manufacturing firms located in the Bamako region.
The tenants of the Industrial Park would be start-up and relocated
businesses--both attracted by a convenient site, good infrastructure,
and support services. Existing firms will choose to relocate to the
Industrial Park if the gains in efficiency more than compensate their
relocation costs and higher expenses on utilities such as water and
power. While the exact pattern of investments in the Industrial Park
cannot be predicted, it is expected that the agro-processing, printing,
packaging, and information technology-related firms will constitute the
main sector of activities. Based on current trends, business ownership
is most likely to be Malian, although there may also be joint ventures.
Direct beneficiaries will be firms locating in the Industrial Park,
especially small and medium enterprises with fewer alternatives, who
will benefit from improved infrastructure and services. Employees of
these firms also constitute direct beneficiaries of this Project. Firms
that will supply the Industrial Park with goods and services will also
benefit from the Project, adding to the employment impact.
It is expected that the indirect benefits will be considerably
greater than the direct benefits, encouraging prospective entrepreneurs
and investors through an improved business climate and better
infrastructure. Shifting even a portion of Malian real estate
investments to value-added activities would also contribute to poverty
reduction.
4. Donor Coordination; Role of Private Sector and Civil Society
The Industrial Park Project leverages and complements other donor,
private sector and civil society activities in Mali as described below.
This Project will continue to collaborate closely with these actors
throughout implementation to support private management of, and attract
new businesses to invest in, the Industrial Park.
World Bank
Among other objectives, the World Bank ``Mali Growth Support
Project'' aims to improve the investment climate to increase total
factor productivity and growth; assist in the development of
infrastructure with a focus on the Airport and Industrial Park; expand
the telecommunications network; make various infrastructure
improvements for tourism and mining; and increase term financing for
micro-, small-, and medium-sized enterprises (``MSMEs'') and provide
business development services (``BDS''). The Industrial Park Project
also complements the World Bank Agriculture and Diversification Project
which aims to increase agricultural productivity and diversification
into higher value crops.
Other Donors
The Industrial Park Project complements other donors' programs,
such as the Dutch Development Agency's activities in agricultural
diversification and marketing, agricultural processing, improved water
management, and institutional strengthening in the ON zone. The Dutch
Development Agency has recently approved financing for a cold storage
facility in Bamako that will be located in the Airport domain. This
facility will be used for mangoes and other high value agricultural
products, such as green beans and potatoes.
Private Sector and Civil Society
Private sector and civil society participated in the consultative
process that resulted in inclusion of the Industrial Park Project in
the Compact. The Industrial Park Project aims to leverage investment by
the private sector in the Industrial Park, so efforts will be made to
continue to seek private sector and civil society feedback on the
design and implementation of the Industrial Park Project. Both the
private sector and civil society will be represented on the Board and
Advisory Councils. In addition, consultations on the EIA will be
conducted with affected parties and other stakeholders, in accordance
with the Environmental Guidelines, Mali Decr[eacute]t No. 03-594-P-RM
on environmental impact studies and the draft Arr[ecirc]te
Interministeriel on the procedure for public consultation on
environmental impact studies. Also, consultations of persons affected
by the Industrial Park Project will be conducted for the RAP,
consistent with World Bank Operational Policy 4.12 on Involuntary
Resettlement.
5. USAID
The Industrial Park Project will build on USAID's efforts during
implementation and strengthen best practices in agricultural and
financial support to farmers and capacity building of API-Mali.
Mali Finance provides business development services
through financial institutions and other partners, such as MSMEs and
MFIs, especially in northern Mali. Through this project, USAID is
supporting the establishment and start-up of API-Mali, the investment
promotion agency, responsible for promoting, approving and regulating
industrial activity in Mali.
Trade Mali provides marketing support and targets six
agricultural sectors: mango, potato, red meat, rice, shea butter, and
sesame.
6. Sustainability
MCC will support the recruitment and start-up of a private operator
to manage the Industrial Park and will finance limited business support
services to tenants of the Industrial Park. To encourage the creation
and growth of MSMEs, the Industrial Park Project will help MSMEs access
financial and market information, as well as export facilitation
services. In addition, the Industrial Park Project will focus on how to
ensure coordination in operations and maintenance of shared utilities
between the Airport and Industrial Park operators.
Environmental and social sustainability provisions for the
Industrial Park will be similar to those for the Airport Improvement
Project. In addition, agreement to adhere to pre-established site
standards and requirements for pollution control, such as pre-treatment
of effluents and appropriate management of waste, will be pre-
requisites for installation by industry into the Industrial Park. Site
[[Page 69258]]
standards and requirements will be outlined in the EMP and EMS.
7. Proposals
Public solicitations for proposals are anticipated to procure
goods, works and services, as appropriate, to implement all Project
Activities under the Industrial Park Project. MCA-Mali will develop,
subject to MCC approval, a process for consideration of all such
proposals. Notwithstanding the foregoing, MCA-Mali may also consider,
using a process developed subject to MCC approval, any unsolicited
proposals it might receive.
Schedule 3 to Annex I--Alatona Irrigation Project
This Schedule 3 generally describes and summarizes the key elements
of the project that the Parties intend to implement in furtherance of
the Alatona Irrigation Project Objective (the ``Alatona Irrigation
Project''). Additional details regarding the implementation of the
Alatona Irrigation Project will be included in the Implementation
Documents and in the relevant Supplemental Agreements.
1. Background
MCC's investments will support the development of key
infrastructure and policy reform for productive sectors and capitalize
on one of Mali's major assets, the Niger River Delta, for irrigated
agriculture. The Alatona Irrigation Project will create a platform for
increased production and productivity of agriculture and will be a
catalyst for the transformation and commercialization of family farms.
It will support Mali's national development strategy to increase the
contribution of the rural sector to economic growth and help achieve
national food security. Agriculture is a vital economic sector,
contributing 40% to GDP. Eighty percent of the population earns a
living from agriculture. MCC's investments in this sector will be
strengthened by policy reforms and institutional support such as formal
land titles for farmers, demand-driven rural advisory services, an
improved business environment, and increased access to markets and
trade. The hard and soft investments will impact the poor in Mali,
particularly Malian farmers and small and medium-size entrepreneurs,
not only in the Alatona zone but, over time, on a national and regional
scale.
The Alatona zone is located in the ON. The term ON refers both to
the geographical zone and the authority charged with the management of
water resources and agricultural support in the zone. The ON comprises
one million ha of a vast fossilized inland delta whose rich, alluvial
soils can be irrigated via a gravity-fed system from the Niger River,
the largest river in West Africa. Its waters are highly suitable for
irrigation with low sediment and salt content, minimizing the risk of
salinization. Recognized as a high potential agricultural zone, the
French colonial administration established an extensive hydrological
network of diversions, canals, and drains in the 1930s. Rice production
has been the dominant agricultural activity since 1970, with some
counter-season horticultural production. Approximately 77,000 ha are
under production today, with the possibility for expansion to 200,000
ha, with further infrastructure investment.
2. Summary of the Alatona Irrigation Project and Related Project
Activities
The Alatona Irrigation Project is focused on increasing production
and productivity, increasing farmer incomes, improving land tenure
security, modernizing irrigated production systems and mitigating the
uncertainty from subsistence rain-fed agriculture. It seeks to develop
16,000 ha of newly irrigated lands, representing an almost 20% increase
of ``drought-proof'' cropland and a 7% increase of the country's total
stock of fully or partially irrigated land. The Alatona Irrigation
Project will introduce innovative agricultural, land tenure, and water
management practices, as well as policy and organizational reforms
aimed at realizing the ON's potential to serve as an engine of rural
growth for Mali. The Project Activities that are funded under this
Project are:
Niono-Goma Coura Road. This Project Activity will upgrade
an 81 km north-south road within the national highway network from its
current earth/gravel condition to a paved standard. The investment will
also include an additional access spur to the Alatona perimeter at the
village of Dogofry.
Irrigation Planning and Infrastructure. This Project
Activity will involve main conveyance system expansion, Alatona
irrigation system development, and support to the ON agency on water
management.
Land Allocation. The Alatona Irrigation Project will
improve rural land tenure security in Mali by allocating newly
developed, irrigated land to family farmers, women market gardeners,
and farming companies in private ownership. These land recipients will
purchase the land by making annual payments over a 15-20 year period.
This Project Activity consists of land parcel creation, land rights
education, registration system upgrade, land parcel allocation and
titling, and management of land revenues.
Resettlement, Social Infrastructure, and Social Services.
This Project Activity will compensate families residing in the
perimeter or with rights to land therein consistent with World Bank
Operational Policy 4.12 on Involuntary Resettlement by offering land in
the irrigation perimeter or, if the land option is not chosen, other
compensation alternatives. This Project Activity will provide social
infrastructure, to serve these project-affected persons plus incoming
settlers and other migrant families and also support social services
(primarily education and health staff) during the last three years of
the Compact Term.
Agricultural Services. This Project Activity will support
a range of agricultural, institutional and related services to
strengthen capacity and improve agricultural practice through applied
agricultural research, extension and farmer training, support to farmer
organizations, and support to water users associations (``WUAs'').
Financial Services. This Project Activity will encourage
agricultural lending by reducing the risks of extending credit in this
newly developed zone, improving transparency within the existing
financial system, and strengthening the capabilities of local financial
institutions through a credit risk sharing program, microfinance credit
bureau strengthening, financial institution capacity building, and
direct support to farmers.
In connection with the Project Activities (other than the Road
Activity, except as provided in Section 2(a) below), MCA-Mali will
assist and take all necessary steps to ensure that the EIA, EMP
(including an HIV/AIDS awareness plan and a pest management plan), and
RAP (consistent with World Bank Operational Policy 4.12 on Involuntary
Resettlement) for all irrigation activities of the Alatona Irrigation
Project are processed and permits delivered in accordance with Mali
Decr[eacute]t No. 03-594-P-RM on environmental impact studies and the
Environmental Guidelines, all of which will be subject to MCC approval.
MCC funding will support implementation of the environmental and social
mitigation measures as identified in the EIA, EMP, HIV/AIDS awareness
plan, pest management plan and RAP, satisfactory to MCC, according to
the conditions precedent set forth in the Disbursement Agreement.
[[Page 69259]]
The M&E Plan (described in Annex III) will set forth anticipated
results and, where appropriate, regular benchmarks that may be used to
monitor the progress of the implementation of the Alatona Irrigation
Project. Performance against these benchmarks, as well as the overall
impact of the Alatona Irrigation Project, will be assessed and reported
at the intervals to be specified in the M&E Plan, or as otherwise
agreed by the Parties. The Parties expect that additional indicators
will be identified during implementation of the Alatona Irrigation
Project. The expected results from, and the key benchmarks to measure
progress on, the Alatona Irrigation Project, as well as the Project
Activities undertaken or funded thereunder, are set forth in Annex III.
Estimated amounts of MCC Funding for each Project Activity for the
Alatona Irrigation Project are identified in Annex II. Conditions
precedent to each Project Activity under the Alatona Irrigation
Project, and the sequencing of such Project Activities, shall be set
forth in the Disbursement Agreement, any other Supplemental Agreements
and the relevant Implementation Documents. The following summarizes
each Project Activity under the Alatona Irrigation Project:
(a) Niono-Goma Coura Road (the ``Road Activity'').
The Road Activity involves the upgrading of a key segment of the
national highway network serving the Alatona zone, providing vital
access to inputs, markets, and social services to the Alatona zone and
other farmers in the northern sector. The Niono-Goma Coura road forms
the first 81 km of a 450 km road from Niono to Tonka, recently
reclassified as National Road 33. It is presently an earth road with
laterite surface and varying width of 6-7 meters, which has been
compromised by erosion of the embankment slopes. The laterite is worn
away in numerous locations, leading to washouts and difficult driving
conditions during the wet season. Specifically, MCC Funding will
support the following:
(i) Double bitumen surface treatment paving of 81 km of National
Road 33 (7 meter carriageway and 1.5 meter shoulders).
(ii) Construction of a small bridge and 2 km spur to the village of
Dogofry to provide a direct access from the Alatona perimeter to the
main road network.
(iii) Various social measures, such as parallel tracks to
accommodate non-motorized traffic, of which there is a significant
amount in and around the populated areas and safety measures for
slowing traffic, as well as additional parking areas at the villages.
Additionally, in connection with the Road Activity, MCA-Mali will
assist and take all necessary steps to ensure that the EA, EMP
(including an HIV/AIDS awareness plan), and RAP (consistent with World
Bank Operational Policy 4.12 on Involuntary Resettlement) for the Road
Activity of the Alatona Irrigation Project are processed and permits
delivered in accordance with Mali Decr[eacute]t No. 03-594-P-RM on
environmental impact studies and the Environmental Guidelines, all of
which shall be subject to MCC approval; provided, however, that such
EA, EMP and RAP may be processed as part of the EIA, EMP, and RAP for
all other Project Activities (as described in Section 2 above). MCC
funding will support implementation of the environmental and social
mitigation measures as identified in the EA (or EIA, as applicable),
EMP, and RAP, satisfactory to MCC, according to the conditions
precedent set forth in the Disbursement Agreement.
(b) Irrigation Planning and Infrastructure (the ``Irrigation
Activity'').
This Project Activity will increase the capacity of the ON's main
conveyance structures (the Canal Adducteur, the Canal du Sahel and the
Fala de Molodo) to ensure sufficient capacity to transport wet season
water to all the developed perimeters. MCC Funding will support the ON
in achieving physical capacity to realize its immediate development
goals, improve and increase service, and to move toward a next
generation of standards and operational water management procedures,
based on best international practice. Specifically, MCC Funding will
support the following:
(i) Alatona irrigation system development, which will involve the
construction of a primary canal off the main system, a 63 km
distributor canal, a network of secondary and tertiary canals and
drainage structures, as well as land leveling and internal access
roads. This will allow for an additional 16,000 ha of irrigated lands
in the Alatona zone.
(ii) Main conveyance system expansion, which will increase the
conveyance capacity of two main canals and an ancient riverbed that
transport water from the Niger River to the ON irrigated zones. This
will involve: (1) Removal of the central island separating the two
branches of Canal Adducteur; (2) enlarging the main canal leading from
the main conveyance canal (Canal du Sahel--23 km); and (3) raising the
banks of the Fala de Molodo along approximately 8 km.
(iii) Support to ON Water Management, which will provide technical
assistance and equipment to the ON for installing and operationalizing
a communications-based water management system as well as improving
overall system management to ensure more efficient and effective water
management throughout the ON system. This system will also provide the
basis for data analysis and permitting flow adjustments according to
climatic fluctuations and other water demand factors and will establish
incentive structures for better on-farm water efficiency.
(c) Land Allocation (the ``Land Activity'').
Through the sale of irrigated land under the oversight of a
selection commission, land will be allocated to small-, medium-, and
large-scale farmers. A selection commission will select land recipients
according to pre-defined criteria, and enforce safeguards designed to
ensure transparency and fairness. The recipients will purchase the land
at prices that are both affordable to farm families, yet high enough to
discourage speculation. Land payments will be managed by private
financial institutions, and land registration capacity will be
bolstered. MCC Funding will support education and dissemination of
information about land rights, benefits and responsibilities, and the
allocation process in order to execute land allocation in an effective
manner and for long term land management. In addition, the Alatona
Irrigation Project will establish year-round market gardens for growing
vegetables, to provide the women of the Alatona zone with an
independent source of family income. This market garden opportunity
supplements the opportunity women will have to receive larger land
parcels though the selection commission process. Specifically, MCC
Funding will support the following:
(i) Land Parcel Creation. Land will be divided into tertiary
irrigation blocks, and the land contained therein will be subdivided
into individual land parcels. This sub-activity will include land
parcel platting, boundary surveying, and preparation of a technical
description of each parcel.
(ii) Land Rights Education. A land-education effort will be carried
out to provide the rural population of the Alatona zone and nearby
areas with an understanding of private land ownership, the rights and
responsibilities it entails, and the benefits it can bring. The effort
also will inform people about the opportunity to acquire newly
developed irrigated land, and work with land recipients on how
[[Page 69260]]
to properly manage their land rights and obligations.
(iii) Registration System Upgrade. The Alatona Irrigation Project
will support establishment of a temporary land registration office in
the Alatona zone that will remain under the jurisdiction of the Sogou
office of the National Directorate for State Property and Cadastre (a
technical agency within the Ministry of State Property and Land). This
temporary office will operate for the four-year period during which
virtually all of the land will be allocated and titled. Once the
initial wave of titling occurs, the Sogou office may choose to maintain
the temporary office, or replace it with a more limited alternative
depending upon demand and cost considerations.
(iv) Land Parcel Allocation and Titling. A selection commission
consisting of government officials and private stakeholder group
representatives (both men and women), will review people's applications
for land and decide who will receive land based on pre-defined
criteria. The criteria include various technical and other
qualifications, are differentiated by farm size, and give special
consideration to people already in the Alatona zone,\1\ women, and
young farmers. After a short waiting period, land recipients will
receive land ownership titles that they will pay for over a 15-20 year
period. In addition to this main land allocation effort, women in the
Alatona zone will receive small land plots for use in market gardening.
---------------------------------------------------------------------------
\1\ Those who currntly reside or use land in the Alatona zone
will automatically be eligible to receive land.
---------------------------------------------------------------------------
(v) Management of Land Revenues. This sub-activity will assure that
land revenues are transparently managed and not co-mingled with other
accounts and reinvested in locally responsive and appropriate ways in
the Project area. This sub-activity will create a new entity (the
``Revenue Authority'') to collect and manage the land purchase payments
under Government oversight. Collection payment mechanisms will
encourage the entry and participation of private financial institutions
in the area. In cases when land owners fail to make the required
payments, the Revenue Authority will manage resolution of the problem,
up to and including executing a foreclosure action and public sale of
the land to satisfy the debt.
(d) Resettlement, Social Infrastructure, Social Services (the
``Community Activity'').
The Community Activity will provide funds to implement the RAP,
build social infrastructure and support social services, primarily
health staff and teachers, to ensure appropriate utilization of the
social infrastructure.
Specifically, MCC Funding will support the following:
(i) Resettlement. This sub-activity will support implementation of
the RAP previously developed in collaboration with the relevant
Government agencies, to compensate approximately 800 families who lose
land rights or access to resources, with land in the irrigated
perimeter or, where the land option is refused, other compensation
options. Physically relocated resettlers will be provided with
construction materials or built houses. For reasons of social equity,
this sub-activity will implement procedures to provide equitable access
to both dry and rainy season water and additional supporting measures
during the first year of farming to assist these agro-pastoralist
families to take up irrigated rice cultivation successfully.
(ii) Social Infrastructure. This sub-activity will provide social
infrastructure and social services sufficient to serve an anticipated
total population of approximately 60,000, including the resettlers, new
settlers and other migrants. Access roads, potable water, sanitation,
schools, health centers, public markets, warehouses, literacy and youth
centers, laundry facilities and solar electricity supply for health
centers and schools will be constructed or existing facilities
renovated in accordance with international and national norms.
(iii) Social Services. This sub-activity will support social
services, primarily health staff and teachers, over the last three-year
period of the Compact Term. Services will be provided according to
population thresholds established by the Government on the basis of
international and regional norms. This sub-activity will equip
community health centers in the Alatona zone and health centers serving
the larger area, as well as support a variety of health promotion and
disease prevention activities related to obstetric care, nutrition,
STIs, HIV/AIDs, malaria, schistosomiasis and intestinal worms. Limited
support will be provided for maintenance of water supply and
sanitation.
(e) Agricultural Services (the ``Agriculture Activity'').
The Agriculture Activity will focus on the basics of irrigated
farming and will support a range of interventions that target capacity
building, support, and techniques for rice, shallots, livestock and
crop integration, and women's vegetable garden production. During the
first two years of the Alatona Irrigation Project, while the road and
core irrigation infrastructure are designed and constructed (the pre-
settlement phase), efforts will focus on building an institutional
environment and testing agricultural, marketing, and water management
practices focused on achieving farm profitability. The Project Activity
will be conducted in pre-existing ON irrigated perimeters involving, to
the extent feasible, collaboration with the ON, existing institutions,
and entities. The pre-settlement phase will allow for the development,
testing, and piloting of activities to be transferred and scaled up to
the newly developed perimeter. Specifically, MCC Funding will support
the following:
(i) Applied Agricultural Research. This sub-activity includes
undertaking field-level, applied technology research on rice production
and processing; water use, control and management; agronomic practices;
livestock enterprises and integration with irrigation; improved
equipment and technologies; commodity chains development, including
strengthening the supply system for agricultural inputs and equipment;
identifying, testing, and promoting improved conservation techniques;
processing technologies, and improving marketing of crops; and natural
resource management and wood supply.
(ii) Extension and Farmer Training. This sub-activity will include
communication, extension, and training through a variety of low-cost,
sustainable mechanisms and techniques that may include Farmer Field
Schools, Training and Visit, farmer-to-farmer, stakeholder, and systems
approaches. The focus of this sub-activity will include improving rice
yields, production of dry season diversified crops, integrating crop
and livestock production, improving water management, group promotion
and formation, integrated pest management, organizational management,
accounting and budgeting, and farmer rights and advocacy.
(iii) Support to Farmer Organizations. This sub-activity will
provide intensive organizational development and management training to
help selected service providers and farmer-controlled organizations
(including women's groups) increase capacity. This may include training
on the preparation of by-laws and business plans; election of officers,
personnel and group management; management by objectives; financial
sustainability and credit management; knowledge of rights, facilitation
and advocacy; group procurement of inputs and marketing; and accounting
and financial
[[Page 69261]]
management capabilities and commercialization.
(iv) Support to Water User Associations. This sub-activity will
provide training to WUAs on organization management, cropping patterns
and water requirements, secondary and tertiary canal maintenance
planning, and establishing procedures for collecting and accounting for
water fees.
(f) Financial Services (the ``Finance Activity'').
The Finance Activity will support agricultural development in the
Alatona zone by promoting a sustainable, inclusive financial system and
improving farmers' access to credit. Interventions will be focused on
encouraging local financial institutions to move into the Alatona zone
and on building their capacity and willingness to meet the financial
services needs emerging from activities supported by the Alatona
Irrigation Project. The Finance Activity will encourage financial
institutions to lend to clients that have good prospects of success but
may lack sufficient collateral or a suitable record of transactions to
prove creditworthiness. It will also provide support to the ON Credit
Bureau to strengthen its capacity to increase transparency among MFIs
in the region. Direct support will also be provided to farmers to
improve access to credit for first-time borrowers. Specifically, MCC
Funding will support the following:
(i) Credit risk sharing program. The credit risk sharing program
will encourage eligible financial institutions to increase their
lending to clients by reducing the risk of providing loans in the
Alatona zone. MCC Funding will support risk sharing (up to 50%).
Participating financial institutions will also be provided with
technical assistance.
(ii) Credit bureau strengthening. This sub-activity will finance:
(1) A study to identify recommended improvements to the ON Credit
Bureau and to test their feasibility; (2) development and acquisition
of hardware and software necessary to create an electronic database
(pending satisfactory completion of the feasibility study); and (3)
training for ON Credit Bureau staff, among other changes as identified
in the needs assessment and feasibility study.
(iii) Financial institution capacity building. This sub-activity
will provide training and technical assistance to financial
institutions (banks and MFIs), focusing on areas such as risk analysis,
portfolio management, and new product development in order to help
financial institutions meet the needs of potential clients. In order to
encourage MFIs to move rapidly into the Alatona zone, this sub-activity
will also assist with a portion of the costs of setting up and staffing
new offices.
(iv) Direct support to farmers. In addition to training and support
to farmer organizations, the Alatona Irrigation Project will provide
financial assistance to improve access to credit for first-time
borrowers. This sub-activity will provide a grant to assist new clients
with paying a portion of the initial mandatory deposit required by MFIs
in order for the new clients to access their first loan.
3. Beneficiaries
As a result of the incremental agricultural production achieved
through the Alatona Irrigation Project, incomes of farm owners,
agricultural laborers in the Alatona, suppliers, transporters,
processors, and traders will increase.
The upgrading of the existing Niono-Goma Coura road is anticipated
to lower vehicle operating costs (``VOCs'') and to generate time
savings for road users. It is anticipated that the reduction in VOCs
will be passed on to populations located along the road in the form of
reduced rates of cargo spoilage and lower charges for the transport of
cargo goods, including the transport of agricultural produce from the
Alatona zone to regional markets in Niono and potentially national
markets in Bamako.
Finally, the Alatona Irrigation Project is also expected to
generate non-quantified social, health, and education improvements
through investment in social infrastructure in the Alatona zone and
greater access through the Niono-Goma Coura road upgrade to existing
health and social services facilities.
4. Donor Coordination; Role of Private Sector and Civil Society
The Dutch Development Agency, French Development Agency, the World
Bank, and USAID, in particular, have been working in the ON over the
past several decades resulting in a more efficient, decentralized
management structure, while increasing production and productivity of
the Alatona zone. The Alatona Irrigation Project leverages and
complements other donor, private sector and civil society activities in
Mali as described below. Throughout implementation, MCC will continue
to collaborate with these donors to ensure equitable water
distribution, transfer of skills and knowledge in agriculture
production, farm management and access to credit for the farmers. The
Alatona Irrigation Project will involve close coordination with donors
involved in strengthening the management of the ON agency to provide
effective operations and maintenance of the irrigation infrastructure,
as well as conformity with the established cropping calendar.
World Bank
The Alatona Irrigation Project complements and reinforces several
ongoing or recently launched World Bank programs as described below.
National Project for Rural Infrastructure provides rural
infrastructure for irrigation, transportation, clean water and
sanitation, and institutional strengthening. In May 2005, this project
launched a bid for small- and medium-scale farmers to purchase land in
the pilot zone of Koumouna in the ON. This marked the ON's first
experience of issuing land titles to individual farmers.
Agricultural Competitiveness and Diversification Project
aims to expand production and improve the productivity of diversified,
high value commodities and to increase their export and market
competitiveness; to remove logistical bottlenecks to increased
exportation; to reinforce food security; and to promote rural credit
and financing.
Rural Community Development Project enhances the capacity
of communities to propose and manage local development initiatives,
including Communal Initiatives Funds and Local Productive Initiatives
Funds.
Private Sector and Civil Society
Private sector and civil society participated in the consultative
process that resulted in inclusion of the Alatona Irrigation Project in
the Compact. The Alatona Irrigation Project aims to attract farmers to
purchase land and increase the revenue of farmers and farming
enterprises. Businesses along the value chain will be integral to the
success of this Project. In addition, civil society will play an active
role to ensure that land allocation is fair and transparent and that
social services are provided in the Alatona zone in a fair and
equitable manner. Lastly, both civil society and private sector will be
represented on the MCA-Mali Board of Directors and Advisory Councils.
In addition, consultations will be conducted with affected parties and
other stakeholders on the EIA for all Project Activities (other than
the Road Activity) and the EA (or EIA, as applicable) for the Road
Activity, in accordance with MCC Environmental Guidelines, Mali
Decr[eacute]t No. 03-594-P-RM on environmental impact studies and the
draft Arr[ecirc]te Interministeriel on the procedure for public
consultation on environmental
[[Page 69262]]
impact studies. Consultations will also take place with project
affected persons for the RAPs, consistent with World Bank Operational
Policy 4.12 on Involuntary Resettlement. NGOs are also expected to play
a role in implementation, particularly in the provision of health
promotion activities.
5. USAID
The Alatona Irrigation Project builds on the USAID's Accelerated
Economic Growth and Trade Development Project (2003-2012), which
includes the following sub-projects:
Program in Development of Agricultural Production
(PRODEPAM) includes agricultural intensification activities,
appropriate technologies, animal feed, and natural resource management
activities.
Program on Shared Governance includes capacity building,
planning, and financial management in the communes of Diabaly and
Dogofry (the two municipalities located in the Alatona zone).
The Alatona Irrigation Project will continue to build on these
efforts during implementation and strengthen USAID best practices in
agricultural support and capacity building in local governance within
the Alatona zone.
6. Sustainability
Sustainable Irrigation Management. To assure the long term
success of the Alatona Irrigation Project, MCC will finance additional
capacity on the main conveyance structures, as well as support the ON
to achieve sustainable management of its entire stock of assets. A core
element of this effort will be technical assistance to introduce a
communications-based technology for real-time water monitoring and
management on the main system. The Alatona Irrigation Project will
collaborate with the ON to establish appropriate and equitable water
allocation rules among the perimeters, optimum cropping calendars and
practices (such as the adoption of short cycle varieties) and the
gradual introduction of volumetric water charges, all aimed to make the
most efficient use of scarce water during the critical months of the
dry season. The MCC-financed technical assistance will assist the ON to
develop revised expansion scenarios based on updated assumptions and
practices, such that any further expansion does not jeopardize the
minimum water requirements and functioning of the Alatona zone and
other existing perimeters. In the existing ON irrigated perimeters, the
water fees collected are adequate to cover approximately 90% of the
operating and maintenance costs of the major distribution systems
within the zones, with the Government assuming responsibility for the
remaining costs. The Alatona Irrigation Project will address the
utilization of revenues associated with land sales and water fees
within the Alatona zone to fund the ongoing expenses of Alatona
institutions during and beyond the Compact Term.
Sustainable Road Maintenance. A new road maintenance
agency, AGEROUTE, has recently been established with donor support. The
major donors to the road sector (World Bank, European Union and African
Development Bank) are promoting long term solutions to road
maintenance, including more reliance on user fees to finance
maintenance. The upgrading of the road to a double bituminous surface
will result in estimated annual maintenance requirements falling within
the range of the Government's current maintenance allocations for the
road.
Sustainable Rural Infrastructure Management. The Alatona
Irrigation Project will finance initial recurrent costs of the social
infrastructure so as to ``kick-start'' operations. Within the context
of the country's decentralization program, the planning and
implementation of these infrastructure and services will be carried out
in close collaboration with the appropriate technical ministries and
local authorities (in particular the communes), so as to ensure a
smooth transition to sustainable provision of staffing, operations, and
maintenance of all these facilities beyond the life of the Compact.
Sustainable Access to Financial Services. The Finance
Activity will provide MFIs and banks with training in agricultural
credit and other aspects of managing the delivery of financial services
to the inhabitants of the Alatona zone. This training should enable the
financial institutions to better analyze the risks of extending credit
in the Alatona zone and to better monitor and manage the repayment
process. Meanwhile, the support to the ON Credit Bureau will promote
transparency in the sector and provide institutions with better data
from which to evaluate loan applications.
Sustainable Management of Land Revenues. The Land Activity
will create a new entity--the Revenue Authority--to collect and manage
the revenues generated through land payments. MCC funding will support
the costs of structuring this entity and providing some initial
capacity building, until the Revenue Authority can support itself
through the land revenues collected.
Sustainable Agricultural Services. Skilled local
institutions with proven capacity will be contracted to deliver
services, and design and coordinate research activities. It will
include on-station evaluation of varieties and/or technologies under
development; on-farm confirmation and adaptation of existing research
results; and participatory, farmer-led research. Eventually,
involvement of farmers, farmer organizations, and a possible fee-for-
service approach could make the research demand-driven and partly
funded by users.
Environmental and Social Sustainability. Sustainability is
to be achieved through the implementation of a land use and natural
resources management plan (a prerequisite planning tool for the EIA),
the identification of institutions responsible for natural resources
management over the long term, and the implementation of an EMP that
will incorporate an HIV/AIDS awareness plan and a pest management plan.
Pre-settlement activities will provide the opportunity to test the
sustainability of practices to be applied in the Alatona zone.
Resettlers will be eligible to receive agricultural inputs for the
first year and all cultivators will be able to receive technical
assistance in farming techniques and training to improve their ability
to secure credit. The provision of social infrastructure will allow
improvements in health care, education, potable water supply and
sanitation and the funding of social services will provide for a
transition to full government funding of these services after the
Compact Term.
7. Policy; Legal; and Regulatory Reform
The Parties have identified the following policy, legal and
regulatory reforms and actions that the Government shall pursue in
support, and to reach the full benefits of the Alatona Irrigation
Project, the satisfactory implementation of which will be conditions
precedent to certain MCC Disbursements as provided in the Disbursement
Agreement:
The establishment of the Revenue Authority to manage the
collection and use of land revenues generated through the Alatona
Irrigation Project. The structure of the Revenue Authority and its
operating guidelines will be subject to MCC approval.
Within the Compact Term, and in any event no later than
six to nine months prior to the end of the Compact Term, the
identification of a fiduciary or liquidation agent to manage or
liquidate
[[Page 69263]]
all of the remaining financial assets at the end of the Compact Term.
The selection of the fiduciary or liquidation agent and the final plan
for the disposition of financial assets from the credit risk sharing
program in the Finance Activity will be subject to MCC approval.
The execution of a memorandum of understanding between
MCA-Mali and the ON that ensures equitable allocation of dry-season
water among the ON zones, measured at the headworks of primary canals,
prior to initial MCC Disbursement for the Project Activities within the
Alatona Irrigation Project, other than the Road Activity.
The provision of evidence by the Government of an agreed
allocation of land for dry season and wet season cultivation in the
Alatona zone prior to approval of final design of the first tranche of
the irrigation and planning infrastructure sub-activity of the Alatona
Irrigation Project.
8. Proposals
Public solicitations for proposals are anticipated to procure
goods, works and services, as appropriate, to implement all Project
Activities under the Alatona Irrigation Project. MCA-Mali will develop,
subject to MCC approval, a process for consideration of all such
proposals. Notwithstanding the foregoing, MCA-Mali may also consider,
using a process developed subject to MCC approval, any unsolicited
proposals it might receive.
Annex II--Summary of Multi-Year Financial Plan
This Annex II to the Compact (the ``Financial Plan Annex'')
summarizes the Multi-Year Financial Plan for the Program. Each
capitalized term in this Financial Plan Annex shall have the same
meaning given such term elsewhere in this Compact. Unless otherwise
expressly stated, each Section reference herein is to the relevant
Section of the main body of the Compact.
1. General
A multi-year financial plan summary (``Multi-Year Financial Plan
Summary'') is attached hereto as Exhibit A. By such time as specified
in the Disbursement Agreement, MCA-Mali will adopt, subject to MCC
approval, a Multi-Year Financial Plan that includes, in addition to the
multi-year summary of estimated MCC Funding and the Government's
contribution of funds and resources, an estimated draw-down rate for
the first year of the Compact Term based on the achievement of
performance milestones, as appropriate, and the satisfaction or waiver
of conditions precedent. Each year, at least 30 days prior to the
anniversary of the Entry into Force, the Parties shall mutually agree
in writing to a Detailed Budget for the upcoming year of the Program,
which shall include a more detailed budget for such year, taking into
account the status of the Program at such time and making any necessary
adjustments to the Multi-Year Financial Plan.
2. Implementation and Oversight
The Multi-Year Financial Plan and each Detailed Budget shall be
implemented by MCA-Mali, consistent with the approval and oversight
rights of MCC and the Government as provided in this Compact, the
Governing Documents and the Disbursement Agreement.
3. Estimated Contributions of the Parties
The Multi-Year Financial Plan Summary identifies the estimated
annual contribution of MCC Funding for Program administration, M&E and
each Project. The Government's contribution of resources to Program
administration, M&E and each Project shall consist of (a) ``in-kind''
contributions in the form of Government Responsibilities and any other
obligations and responsibilities of the Government identified in this
Compact, and (b) such other contributions or amounts as may be
identified in this Compact (including adequate funding for the
rehabilitation and expansion of air cargo facilities, as specified in
Section 8 of Schedule 1 of Annex I) and in relevant Supplemental
Agreements between the Parties or as may otherwise be agreed by the
Parties; provided, in no event shall the Government's contribution of
resources be less than the amount, level, type and quality of resources
required effectively to carry out the Government Responsibilities or
any other responsibilities or obligations of the Government under or in
furtherance of this Compact.
4. Modifications
The Parties recognize that the anticipated distribution of MCC
Funding between and among the various activities for Program
administration, M&E, the Projects and the Project Activities will
likely require adjustment from time to time during the Compact Term. In
order to preserve flexibility in the administration of the Program, as
provided in Section 4(a)(iv) of Annex I, the Parties may, upon
agreement of the Parties in writing and without amending the Compact,
change the designations and allocations of funds among the Projects,
the Project Activities, or any activity under Program administration or
M&E, or between a Project identified as of the Entry into Force and a
new project, without amending this Compact; provided, however, that
such reallocation (a) is consistent with the Objectives and the
Implementation Documents; (b) shall not materially adversely impact the
applicable Project, Project Activity (or any component thereof), or any
activity under Program administration or M&E as specified in this Annex
II; (c) shall not cause the amount of MCC Funding to exceed the
aggregate amount specified in Section 2.1(a) of this Compact; and (d)
shall not cause the Government's obligations or responsibilities or
overall contribution of resources to be less than specified in Section
2.2(a) of this Compact, this Annex II or elsewhere in the Compact.
5. Conditions Precedent; Sequencing
MCC Funding will be disbursed in tranches. The obligation of MCC to
approve MCC Disbursements and Material Re-Disbursements for the Program
is subject to satisfactory progress in achieving the Objectives and on
the fulfillment or waiver of any conditions precedent specified in the
Disbursement Agreement for the relevant activity under the Program. The
sequencing of Project Activities or sub-activities and other aspects of
how the Parties intend the Program to be implemented will be set forth
in the Implementation Documents, including the Work Plan for the
applicable Program (and each component thereof), and MCC Disbursements
and Re-Disbursements will be made consistent with such sequencing.
[[Page 69264]]
[GRAPHIC] [TIFF OMITTED] TN30NO06.001
Annex III--Description of The M&E Plan
This Annex III to the Compact (the ``M&E Annex'') generally
describes the components of the M&E Plan for the Program. Except as
defined in this M&E Annex, each capitalized term in this M&E Annex
shall have the same meaning given such term elsewhere in this Compact.
1. Overview
MCC and the Government (or a mutually acceptable Government
Affiliate or Permitted Designee) shall formulate, agree to and the
Government shall implement, or cause to be implemented, an M&E Plan
that specifies (a) how progress toward the Compact Goal, Objectives,
and the intermediate results of each Project and Project Activity set
forth in this M&E Annex (the ``Outcomes'') will be monitored (the
``Monitoring Component''); (b) a methodology, process and timeline for
the evaluation of planned, ongoing, or completed Projects and Project
Activities to determine their efficiency, effectiveness, impact and
sustainability (the ``Evaluation Component''); and (c) other components
of the M&E Plan described below. Information regarding the Program's
performance, including the M&E Plan, and any amendments or
modifications thereto, as well as periodically generated reports, will
be made publicly available on the MCA-Mali Web site and elsewhere.
2. Monitoring Component
To monitor progress toward the achievement of the Compact Goal,
Objectives, and Outcomes, the Monitoring Component of the M&E Plan
shall identify (a) the Indicators, (b) the party or parties
responsible, the timeline, and the instrument for collecting data and
reporting on each Indicator to MCA-Mali, and (c) the method by which
the reported data will be validated.
(a) Indicators. The M&E Plan shall measure the impacts of the
Program using objective and reliable information (``Indicators''). Each
Indicator will have one or more expected values that specify the
expected results and expected time for the impacts to be achieved
(``Target''). The M&E Plan will measure and report on Indicators at
four
[[Page 69265]]
levels. First, the Indicator(s) at the Compact Goal level (``Goal
Indicator'') will measure the impact of the overall Program and each
Project. Second, the Indicators at the Objective level (``Objective
Indicator'') will measure the final results of each of the Projects,
including impacts on the intended beneficiaries identified in Annex I
(collectively, the ``Beneficiaries''). Third, Indicators at the
intermediate level (``Outcome Indicator'') will measure the results
achieved under each of the Project Activities and will provide an early
measure of the likely impact under each of the Projects. A fourth level
of Indicators (``Output Indicator'') will be included in the M&E Plan
to measure the direct outputs of Project Activities. All Indicators
will be disaggregated by sex, income level and age, to the extent
practicable. Subject to prior written approval from MCC, MCA-Mali may
add Indicators or modify the Targets of existing Indicators.
Goal Indicators and Definitions
------------------------------------------------------------------------
Definition of
Goal-level results Indicator Indicator
------------------------------------------------------------------------
Income of Airport services firms Total revenue of Total receipts of
is increased. firms servicing commercial
the Airport. concessions,
flight kitchens,
fuel suppliers,
and baggage
handling (US$).
Tourism income is increased..... Total receipts of Total receipts of
hotels and hotels and
restaurants in restaurants in
Bamako. Bamako (US$).
Industrial value added is Gross value-added Total earnings
increased. of firms in the including
Industrial Park. salaries and
taxes of firms
located in the
Industrial Park
(US$).
Poverty rate of existing Alatona Poverty rate of Poverty Headcount
zone population is reduced. existing Alatona Ratio of existing
zone population. Alatona zone
population
(percent).
Income from irrigated Real income from Real annual income
agricultural production in the irrigated from sale of
Alatona zone is increased. agricultural agricultural
production. production per
household member
in the Alatona
zone (US$)\1\.
------------------------------------------------------------------------
\1\ Data to be disaggregated by current residents and newly
settledpopulation to track whether resettled population's incomes are
restored as compared to their baseline incomes. This indicator will
also be disaggregated by sex.
Compact Goal Baselines and Targets
----------------------------------------------------------------------------------------------------------------
Goal-level Indicators Baseline Year 5 Year 10
----------------------------------------------------------------------------------------------------------------
Total revenue of firms servicing the $8 $9 $11
Airport (million US$).
Total receipts of hotels and 133 174 226
restaurants in Bamako (million US$).
Gross value-added of firms in the 0 33 106
Industrial Park (million US$).
Poverty rate of existing Alatona TBD\1\ TBD TBD
zone population (percent).
Real income from irrigated 0 316 725
agricultural production (US$ per
capita).
----------------------------------------------------------------------------------------------------------------
\1\ Baseline and targets will be determined through a combination of the following data collection activities:
(1) resettlement action plan census under the Community Activity of the Alatona Irrigation Project, and (2)
Baseline household survey conducted by Direction Nationale de la Statistique et de l'Informatique. Results are
expected in 2007.
Airport Improvement Project Indicators and Definitions
------------------------------------------------------------------------
Definition of
Objective-level results Indicator indicator
------------------------------------------------------------------------
Number of foreign visitors Annual foreign (non- Foreign and non-
is increased. resident) passenger resident passengers
traffic. arriving to and
departing from the
Airport per year
\1\ (number).
Passenger terminal services Improved security FAA audit report \2\
are improved. and safety.
Outcome-level Results....... Indicator........... Definition of
Indicator.
Air traffic is increased.... Weekly flight Aircraft arriving to
arrivals and or departing from
departures. the Airport per
week (number).
Increased efficiency of Time required for Average time for
passenger terminal services. passenger passengers to
processing at complete departure
departures and or arrival
arrivals. procedures at peak
hour at the Airport
(minutes).
------------------------------------------------------------------------
\1\ Indicator will be disaggregated by country of origin, purpose
oftravel, and sex.
\2\ A qualitative Indicator will be developed in collaboration with
airport sector experts and according to FAA standards. Yearly targets
will be milestones.
Airport Improvement Project Indicators and Targets
----------------------------------------------------------------------------------------------------------------
Objective-level indicators Baseline Year 5 Year 10
----------------------------------------------------------------------------------------------------------------
Annual foreign (non-resident) 126,300 164,780 214,000
passenger traffic (number).
Improved security and safety at the TBD TBD TBD
Airport.
Outcome-level Indicators............ ........................ ....................... .......................
Weekly flight arrivals and 87 97 106
departures (number).
[[Page 69266]]
Time required for passenger TBD Baseline minus 60 Baseline minus 60
processing at departures and minutes minutes \2\
arrivals (minutes) \1\.
----------------------------------------------------------------------------------------------------------------
\1\ A special survey will be conducted at the Airport in 2006/2007 to collect baseline information and
additional surveys will be conducted during the Project to estimate the time required for passenger
processing.
\2\ From the economic analysis, it is estimated an efficiency gain of one hour will be achieved by Year 5 and
maintained thereafter.
Industrial Park Project Indicators and Definitions
------------------------------------------------------------------------
Definition of
Objective-level results Indicator indicator
------------------------------------------------------------------------
Industrial output of the Share of enterprise Enterprises located
Industrial Park is growth represented in the Industrial
increased. by the Industrial Park as a share of
Park. the total number of
enterprises in
Bamako (percent).
Industrial Park firms are Long-term jobs Long-term jobs in
financially stable. created in the firms located in
Industrial Park. the Industrial Park
(number).\1\
Outcome-level Results:
The Industrial Park is Occupancy level..... Tertiary
developed and operational. infrastructure
built in the
Industrial Park
(ha).\2\
Access to industrial Time required to Time required for
infrastructure is provided. access services. connection to water
and electricity in
the Industrial Park
(days).
------------------------------------------------------------------------
\1\ This does not include temporary jobs created during construction.
This indicator will be disaggregated by sex and skill level.
\2\ Tertiary (on-lot) infrastructure, to be built and financed by
industries locating in the Industrial Park, includes buildings and
facilities, interior roads and parking, water supply taps/connections
and fire protection, electrical and telecommunications, wastewater
collection (and possibly pre-treatment), etc.
Industrial Park Project Indicators and Targets
----------------------------------------------------------------------------------------------------------------
Objective-level indicators Baseline Year 5 Year 10
----------------------------------------------------------------------------------------------------------------
Share of enterprise growth 0 22% 49%
represented by the Industrial Park
(percent).
Long-term jobs created in the 0 3,400 11,000
Industrial Park (number,
cumulative).
Outcome-level Indicators:
Occupancy level (ha, cumulative).... 0 15 54
Time required to access services TBD TBD
(days) \1\.
----------------------------------------------------------------------------------------------------------------
\1\ Baseline value will be the average time required for a new industrial firm to access water and electricity
in Bamako in 2006. This information will be obtained from [Eacute]nergie Du Mali. Targets will be set after
consultations with industry experts.
Alatona Irrigation Project Indicators and Definitions
------------------------------------------------------------------------
Definition of
Objective-level results Indicator indicator
------------------------------------------------------------------------
Rice yields are increased... Main season rice Average rice yield
yield. in the rainy season
in the Alatona zone
(tons/ha).
Diversification into high Dry season cropped Share of the total
value crops is increased. area in non-cereal cropped area that
crops. is devoted to non-
cereal crops (i.e.,
shallots, tomatoes,
potatoes, etc) in
the Alatona zone
(percent).
Outcome-level Results:
Vehicle Operating Costs International Weighted index to
(VOCs) are reduced. Roughness Index measure road
(IRI) for the Niono- roughness
Goma Coura road. (correlated with
vehicle operating
costs) (meters/
km).\1\
Transport of people and Traffic on the Niono- Annual average daily
goods is facilitated. Goma Coura road. count of vehicles
on the Niono-Goma
Coura road (AADT)
\2\ (number/day).
Irrigable land is increased. Land made irrigable Total irrigable land
by the Project. in the Alatona zone
(ha).
Water for agricultural Average water volume Average water volume
production is provided. delivered at the delivered at the
farm level. tertiary level
during the rainy
season in the
Alatona zone (m\3\/
ha).
Irrigation system efficiency Alatona zone Water supply at the
is improved. irrigation system headworks of Canal
efficiency. de l'Alatona as a
share of crop water
requirements
(percent).
Family farms are established 5 and 10 ha farms Total 5 and 10 ha
allocated. farm plots
allocated in the
Alatona zone
(number).
Land allocated to women is Market garden Total market garden
increased. parcels allocated. parcels allocated
in the Alatona zone
(number).
Land tenure security is Titles granted to Titles registered in
increased. Alatona zone the land
households. registration office
of the Alatona zone
(number).\3\
Access to social Student enrollment.. Students enrolled in
infrastructure is provided. schools established
by the Project
(number).
[[Page 69267]]
Improved agricultural Adoption rate of Number of farms
techniques are adopted. extension adopting at least
techniques. one new extension
technique as a
share of all farms
receiving technical
assistance under
the Project
(percent).
Access to financial services Amount of credit Total loan
in the Alatona zone is extended. portfolios of
improved. financial
institutions (MFIs
and banks) in the
Alatona zone
(US$).\4\
Active clients of Active clients of
MFIs. MFIs in the Alatona
zone (number).\5\
------------------------------------------------------------------------
\1\ The International Roughness Index (IRI) is used to define a
characteristic of the longitudinal profile of a traveled wheeltrack
and constitutes an internationally recognized, standardized roughness
measurement. The IRI is an open-ended scale.
\2\ AADT: Annual Average Daily Traffic.
\3\ Disaggregated by settlers, re-settlers, sex.
\4\ Disaggregated by Short-Term (seasonal term) and Medium-Term credit
(two to three-year term).
\5\ Disaggregated by sex.
Alatona Project Indicators and Targets
------------------------------------------------------------------------
Objective-level indicators Baseline Year 5
------------------------------------------------------------------------
Main season rice yield (tons/ 0 5
ha).
Dry season cropped area in non- 0 46
cereal crops (percent).
Outcome-level Indicators:
International Roughness Index 17 2
(IRI) for the Niono-Goma Coura
road (m/km).
Traffic on the Niono-Goma Coura 208 417
road (number/day).
Land made irrigable by the 0 16,000
Project (ha, cumulative).
Average water volume delivered N/A 13,000
at the farm level (m\3\/ha).
Alatona zone irrigation system 35 40
efficiency (percent).
5 and 10 ha farms allocated 0 1,700
(number, cumulative).
Market garden parcels allocated 0 2,000
(number, cumulative).
Titles granted to Alatona zone 0 1,200
households (number,
cumulative).
Student enrollment (number, 0 10,500
cumulative).
Adoption rate of extension 0 50
techniques (percent).
Amount of credit extended 0 4
(million US$).
Active clients of MFIs (number, 0 1,050
cumulative).
------------------------------------------------------------------------
(b) Data Collection and Reporting. The M&E Plan shall establish
guidelines for data collection and a reporting framework, including a
schedule of Program reporting and responsible parties. The Management
shall conduct regular assessments of Program performance to inform MCA-
Mali and MCC of progress under the Program and to alert these parties
to any problems. These assessments will report the actual results
compared to the Targets on the Indicators referenced in the Monitoring
Component, explain deviations between these actual results and Targets,
and in general, serve as a management tool for implementation of the
Program. With respect to any data or reports received by MCA-Mali, MCA-
Mali shall promptly deliver such reports to MCC along with any other
related documents, as specified in the M&E Plan or as may be requested
from time to time by MCC.
(c) Data Quality Reviews. As determined in the M&E Plan or as
otherwise requested by MCC, the quality of the data gathered through
the M&E Plan shall be reviewed to ensure that data reported are as
valid, reliable, and timely as resources will allow. The objective of
any data quality review will be to verify the quality and the
consistency of performance data across different implementation units
and reporting institutions. Such data quality reviews also will serve
to identify where consistent levels of quality are not possible, given
the realities of data collection. The data quality reviewer shall enter
into an Auditor/Reviewer Agreement with MCA-Mali in accordance with
Annex I.
3. Evaluation Component
The Program shall be evaluated on the extent to which the
interventions contribute to the Compact Goal. The Evaluation Component
of the M&E Plan shall contain a methodology, process and timeline for
collecting and analyzing data in order to assess planned, ongoing, or
completed Project Activities to determine their efficiency,
effectiveness, impact and sustainability. The evaluations should use
rigorous methods for addressing selection bias, as applicable. The
Government shall implement, or cause to be implemented, surveys to
collect baseline and follow-up data on both Beneficiaries and non-
Beneficiaries. The Evaluation Component shall contain two types of
reports: Final Evaluations and Ad Hoc Evaluations, and shall be
finalized before any MCC Disbursement or Re-Disbursement for specific
Program activities or Project Activities.
(a) Final Evaluation. MCA-Mali, in connection with MCC's request to
the Government pursuant to Section 3(h) of Annex I, shall engage an
independent evaluator to conduct an evaluation at the expiration or
termination of the Compact Term (``Final Evaluation''). The Final
Evaluation must at a minimum (i) evaluate the efficiency and
effectiveness of the Program; (ii) estimate, quantitatively and in a
statistically valid way, the causal relationship between the three
Projects and the Compact Goal (to the extent possible), the Objectives
and Outcomes; (iii) determine if, and analyze the reasons why, the
Compact Goal, Objectives and Outcomes were or were not achieved; (iv)
identify positive and negative unintended results of the Program; (v)
provide lessons learned that may be applied to similar projects; (vi)
assess the likelihood that results
[[Page 69268]]
will be sustained over time; and (vii) any other guidance and direction
that will be provided in the M&E Plan. To the extent engaged by MCA-
Mali, such independent evaluator shall enter into an Auditor/Reviewer
Agreement with MCA-Mali in accordance with Annex I.
(b) Ad Hoc Evaluations. Either MCC or MCA-Mali may request ad hoc
or interim evaluations or special studies of Projects, Project
Activities, or the Program as a whole prior to the expiration of the
Compact Term (each, an ``Ad Hoc Evaluation''). If MCA-Mali engages an
evaluator for an Ad Hoc Evaluation, the evaluator will be an externally
contracted independent source selected by MCA-Mali, subject to the
prior written approval of MCC, following a tender in accordance with
the Procurement Guidelines, and otherwise in accordance with any
relevant Implementation Letter or Supplemental Agreement. If MCA-Mali
requires an ad hoc independent evaluation or special study at the
request of the Government for any reason, including for the purpose of
contesting an MCC determination with respect to a Project or Project
Activity or seeking funding from other donors, no MCC Funding or MCA-
Mali resources may be applied to such evaluation or special study
without MCC's prior written approval.
4. Other Components of the M&E Plan
In addition to the Monitoring Component and the Evaluation
Component, the M&E Plan shall include the following components for the
Program, Projects and Project Activities, including, where appropriate,
roles and responsibilities of the relevant parties and Providers:
(a) Costs. A detailed annual cost estimate for all components of
the M&E Plan.
(b) Assumptions and Risks. Any assumptions and risks external to
the Program that underlie the accomplishment of the Compact Goal,
Objectives, and Outcomes; provided, such assumptions and risks shall
not excuse performance of the Parties, unless otherwise expressly
agreed to in writing by the Parties.
5. Implementation of the M&E Plan
(a) Approval and Implementation. The approval and implementation of
the M&E Plan, as amended from time to time, shall be in accordance with
the Program Annex, this M&E Annex, the Governing Documents, and any
other relevant Supplemental Agreement.
(b) Advisory Councils. The completed portions of the M&E Plan will
be presented to each Advisory Council at such Advisory Council's
initial meeting, and any amendments or modifications thereto or any
additional components of the M&E Plan will be presented to each
Advisory Council at appropriate subsequent meetings of such Advisory
Council. Each Advisory Council will have opportunity to present its
suggestions to the M&E Plan, which the Board shall take into
consideration in its review of any amendments to the M&E Plan during
the Compact Term.
(c) MCC Disbursement and Re-Disbursement for a Project Activity. As
a condition to each MCC Disbursement or Re-Disbursement there shall be
satisfactory progress on the M&E Plan for the relevant Project or
Project Activity, and substantial compliance with the M&E Plan,
including any reporting requirements.
(d) Modifications. Notwithstanding anything to the contrary in the
Compact, including the requirements of this M&E Annex, MCC and the
Government (or a mutually acceptable Government Affiliate or Permitted
Designee) may modify or amend the M&E Plan or any component thereof,
including those elements described herein, without amending the
Compact; provided, any such modification or amendment of the M&E Plan
has been approved by MCC in writing and is otherwise consistent with
the requirements of this Compact and any relevant Supplemental
Agreement between the Parties.
[FR Doc. E6-19696 Filed 11-29-06; 8:45 am]
BILLING CODE 9210-01-P