[Federal Register Volume 73, Number 155 (Monday, August 11, 2008)]
[Notices]
[Pages 46720-46772]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-18201]
[[Page 46719]]
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Part II
Millennium Challenge Corporation
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Notice of Entering Into a Compact With the Republic of Namibia; Notice
Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 /
Notices
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 08-09]
Notice of Entering Into a Compact With the Republic of Namibia
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
Republic of Namibia. Representatives of the United States Government
and the Republic of Namibia executed the Compact documents on July 28,
2008.
Dated: August 4, 2008.
Henry Pitney,
Deputy General Counsel, Millennium Challenge Corporation.
Summary of Millennium Challenge Compact With the Republic of Namibia
1. Introduction
Namibia is a young democracy having gained independence from South
Africa in 1990. The country's population of 2.0 million is spread over
823,680 km, an area approximately twice the size, but with a population
density one sixtieth, of California. According to the 2001 census, 67
percent of the population lives in rural areas, primarily in the
northern communal area (``NCA''), with 12 percent living in the
capital, Windhoek. The landscape is largely desert and desert savannah
with low, highly variable rainfall. The economy continues to be
dependent on the mining industry; with diamonds and other minerals
accounting for more than 50 percent of total exports in 2005.
One of the primary constraints to achieving poverty reduction
through economic growth in Namibia is an inadequately educated and
skilled workforce. In addition, the economy's export base is narrowly
focused on mineral commodities, with below-potential levels of revenue
and employment generated in sectors of importance to the poor, such as
livestock and tourism. While improving the quality of education and
training for underserved populations, the Compact will also focus on
diversifying Namibia's export base by capitalizing on Namibia's
comparative advantages--large areas of semi-arid land suitable for
livestock grazing, natural products indigenous to Namibia, and diverse
wildlife and unique landscapes ideal for ecotourism. Through these
investments, it is expected that incomes will rise for poor, rural
communities that have been marginalized from the formal economy by
former colonial and apartheid regimes.
Namibia is classified as a lower-middle income country (``LMIC '')
with a population of 2.1 million, 2006 per capita of $3,000, and a
steady economic growth rate averaging 4.3 percent per annum. Despite
steady growth, Namibia is plagued by high levels of poverty,
particularly in the northern communal areas (``NCAs''), high
unemployment (30 percent in 2006), an extreme disparity in wealth and
income between the rich and the poor (second highest Gini coefficient
in the world), and an HIV prevalence rate of nearly 19.6 percent in
2005. Following 25 years of struggle for independence, the government
of Namibia (the ``GRN '') is committed to providing equal opportunities
to previously disadvantaged populations, while advancing interracial
reconciliation to maintain political and economic stability.
2. Program Rationale
To sustain GDP growth and increase income levels, Namibia must rely
heavily on the availability of skilled labor. Despite high levels of
investment in the education sector, the education system is unable to
produce the quantity, levels, and types of human resources necessary to
meet labor market demands. In 2005, the GRN, with the support of the
World Bank, launched an ambitious 15-year reform process, the Education
and Training Sector Improvement Program (``ETSIP ''), to improve
education outcomes. The Compact's education project supports ETSIP
through strategic investments that leverage policy and institutional
reform to maximize the efficiency, accessibility, and quality of the
education system.
As a result of the volatility of the mining sector, the GRN is
focusing on diversifying Namibia's economy with particular emphasis on
two of the fastest growing sectors--agriculture and tourism.
Agriculture contributes 11 percent of GDP and earns over 25 percent of
export receipts. The livestock sector comprises 90 percent of all
agriculture production in the country. Approximately 80 percent of
livestock production is exported to the European Union and neighboring
southern African countries. Due to increasing population pressures, a
lack of flexible and efficient market outlets and the communal land
regime in the north, livestock productivity in the north is low. In
addition to livestock, there is significant growth potential for the
indigenous natural products (``INP'') industry in Namibia. The INP
industry is expected to grow substantially over the next ten years,
allowing for some of the poorest households in Namibia to participate
in this emerging industry. Overall, MCC's investments in agriculture
are intended to increase rural farmers' productivity and income
generated in the livestock and INP sectors, while opening up trade
opportunities for meat and exports of high-value natural products such
as devil's claw, Kalahari melon seed, marula, and ximenia.
Consistent with the GRNs National Development Plan and long-term
national development strategy known as ``Vision 2030,'' Namibia plans
to develop one of its fastest growing ``export'' industries with a
focus on tourism. Export earnings from international visitors and
tourism goods are expected to generate 15.6 percent of total exports
($650.6 million) in 2008 and grow to 22.6 percent ($2.09 billion) by
2018. The GRN recognizes that tourism is an important generator of
employment, particularly in rural areas where most tourism in the
country occurs. Through MCC's investments in tourism, the GRN intends
to catalyze growth in the tourism industry and increase participation
by Namibia's poor rural population. To achieve these objectives, the
tourism project will improve management and infrastructure in Etosha
National Park , the premier tourism destination in Namibia, increase
the overall number of tourism arrivals, and induce private investment
in communal conservancies.
3. Program Overview and Budget
[[Page 46721]]
Table 1--Program Budget by Project
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(US$ millions)
Component ---------------------------------------------------------------------------------------------------------------
CIF* Year 1 Year 2 Year 3 Year 4 Year 5 Total
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Education Project....................... 8.97 10.30 29.99 53.32 34.62 7.75 144.97
Tourism Project......................... 2.47 4.71 13.03 23.36 14.79 8.57 66.95
Agriculture Project..................... 1.36 1.56 17.95 14.46 8.43 3.17 46.96
Monitoring & Evaluation................. 0.72 1.77 1.02 1.02 1.00 1.02 6.57
Program Management and Administration... 6.00 6.60 6.60 6.60 6.60 6.60 39.00
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Total MCC Funding................... 19.54 24.95 68.61 98.78 65.44 27.13 304.47
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* Compact Implementation Funds (CIF) refer to funding available before the entry-into-force of the Compact.
A. Education Project ($144.97 Million)
The education project is intended to improve the education sector's
effectiveness, efficiency, and quality, through systemic reforms and
critical near-term interventions. MCC funding will support key gaps
within ETSIP, as well as complementary measures, such as institutional
strengthening, policy reform, and targeted technical assistance, to
ensure sustainable results.
Primary activities include:
Improving the Quality of Education: Improving
infrastructure and providing equipment in approximately 47 primary and
secondary school campuses, primarily in the northern communities of
Namibia. Additionally, this activity includes support to teacher
training colleges for policy-relevant studies and improving science and
computer training facilities.
Vocational and Skills Training: Improving vocational and
skills training through assisting with the establishment of a National
Training Fund within the Namibia Training Authority and making
operational a sustainable training levy system. This includes funding
priority projects, including tourism training (through competitive
grants), construction and renovation of approximately nine Community
Skills Development Centers (``COSDECs''), and facilitating private
partnerships to address market demands for employment.
Access to and Management of Textbooks: Upgrading access to
and management of textbooks through operational support and reforms to
establish more transparent, competitive acquisition processes for new
textbooks, and to ensure adequate distribution and management
procedures. This includes funding the acquisition of science, math, and
English textbooks for grades 5 to 12 on a national level.
Regional Study and Resource Centers (``RSRCs'' or
``Libraries''): Construction of approximately three regional Libraries
in underserved areas that will improve access to documentation,
information resources, training materials and programs, and study
facilities.
Expanding and Improving Access to Tertiary Education
Finance: Expanding access to tertiary finance through assisting the
Ministry of Education in its efforts to establish a sustainable and
widely accessible tertiary and technical education finance system.
Cross-Project Support: Strengthening the Ministry of
Education's HIV/AIDS Management Unit and developing HIV/AIDS awareness
and prevention plans related to construction activities.
B. Tourism Project ($66.95 Million)
The tourism project will improve the management and infrastructure
of Etosha National Park, enhance the marketing of Namibian tourism, and
develop the capacity of communal conservancies to attract investments
in ecotourism and capture a greater share of the revenue generated by
tourism in Namibia. Together, these activities will generate income and
create employment opportunities for some of the poorest populations in
Namibia, while preserving the natural resources that serve as the base
for the tourism industry.
Primary activities include:
Improved Management and Infrastructure of Etosha National
Park: Improving the management capacity, providing improved
infrastructure in management centers and staff housing in strategic
locations, and providing road building/maintenance and game
translocation equipment.
Marketing Namibian Tourism: Increasing tourist arrivals to
Namibia by ramping up marketing to North American tourists, developing
and marketing local and regional tourism route packages (with the
explicit aim of directing tourists to conservancies), and developing a
fully interactive Web site.
Ecotourism Development in Conservancies: Building the
capacity of conservancies to attract investment, preserve their natural
resources and receive a greater share of revenues, through the
provision of a range of technical assistance to approximately 31 high-
tourism potential conservancies designed to render them financially
self-sustainable. In addition, grant funding will be provided, based on
individual conservancy needs and demand, to some of these conservancies
to attract tourism enterprises.
C. Agriculture Project ($46.96 Million)
The agriculture project aims to increase the economic performance
of the agricultural sector by strengthening the land tenure system,
introducing community-based rangeland management practices, and
building capacity of the livestock system to support farmers' ability
to increase productivity and profits from livestock sales. In addition,
the project will increase the volume, quality, and added value of INPs
for export to regional and international markets.
Primary activities include:
Land Access and Management: Improving the communal land
regime and introducing effective community-based rangeland management
practices through a comprehensive public awareness and outreach
campaign on land rights, capacity building for Communal Land Boards, a
systematic verification and registration process to regularize land,
and training in community-based management of rangeland resources.
Livestock Support: Constructing approximately five new
veterinary centers in key, high volume livestock areas, in under-served
communities. This includes introducing a traceability system for the
livestock supply chain that meets food safety requirements and assists
in herd management at the farm level, as well as support for reducing
costs and losses, post-farm gate, in the marketing system of livestock
in the NCAs.
[[Page 46722]]
Indigenous Natural Products: Assisting primary producer
organizations to increase the volume, quality, and added value of the
natural products they collect and harvest, in addition to advancing
their operational and business capacity. This includes funding
research, testing, and application of innovations and services critical
to the INP industry's immediate, short- and long-term competitiveness.
4. Program Impact
A. Education Project
The lack of education and training of the Namibian population has
been identified in MCC's internal growth diagnostic, by the World Bank,
and others as a binding constraint to growth and poverty reduction. As
a result, well-designed investments that enhance the efficiency and
effectiveness of the education and training sector are expected to have
a high economic rate of return.
Expected results of the education project include:
Over a million students across Namibia will benefit from
improved provision of textbooks and higher quality of education.
An estimated 11,000 additional students will receive
financing for tertiary education. By alleviating the high-level skills
constraint in the Namibian economy, greater private investment and
employment will likely result from an expansion of the tertiary sector.
In addition, a more sustainable fiscal framework for tertiary education
will shift the distribution of benefits of public education towards the
poor.
Up to 49,000 uneducated and unemployed (poor or near-poor)
individuals over 20 years will receive training at the Community Skills
and Development Centers.
An estimated 2,000 additional vocational training
graduates over a 20 year period will receive higher income due to
improved training opportunities through the National Training Fund.
Over the course of 20 years, 47 schools targeted for
renovation and expansion will produce approximately 41,700 graduates in
primarily rural northern communities. These graduates will benefit from
a higher quality of education and higher lifetime income.
Regional study and resource centers will meet the
information and study needs of an estimated 8,000 individuals a year
(about ten percent of the population of the towns where the centers are
located), including upper primary, secondary and post-secondary
students enrolled in distance learning, young people seeking skills
upgrading, small business owners using computer facilities, and adults
attending continuing education courses.
B. Tourism Project
Over the past 10 years, Namibia's tourism sector has enjoyed strong
growth of 6.9 percent per annum (source: World Travel and Tourism
Council 2007). However, stronger or more sustained tourism growth could
be achieved through an enhanced marketing effort and improved wildlife
and natural resource management, which would improve the tourism
experience in Namibia's national protected areas.
Expected results of the tourism project include:
An estimated 4,000 additional tourists per year as a
result of marketing activities, and incremental added value by overseas
tourists of approximately $7 million. Based on a recent study of the
benefits of the national protected areas, the benefits will be shared
in proportions similar to the wider tourism economy, in which
approximately 24 percent of the benefits will accrue to the poor or
near-poor.
Investments in Etosha National Park will lead to increased
tourism visits and added value to the Namibian economy, as well as
increased income and receipts at Etosha National Park. The investments
in Etosha National Park, combined with those for increased tourism
marketing, will result in increased wages for an estimated 23,000 new
employees in the tourism industry.
An estimated 7,000 individuals are likely to enjoy
significantly higher income as a result of full and part time
employment generated through this project. Another 111,000 conservancy
residents are expected to receive benefits through dividends or
community-level projects.
C. Agriculture Project
MCC interventions will improve the security of land rights, the
equitableness of access to land, the productivity and sustainability of
communal rangeland resources, the productivity of herds, and the
efficiency of livestock marketing and quarantine in the north. These
activities--in particular, the land access and management activity--
will create enabling conditions for communal and poor farmers to
benefit from future public investments in the livestock sector.
Despite rapid growth in the INP sector, additional funding is
necessary to improve coordination in preserving scarce renewable
resources, address the lack of skills of primary producers, and
catalyze research and development in the sector.
Expected results of the agriculture project include:
Over 130,000 individuals, primarily in the north, will
benefit from improved market efficiency, improved land tenure security,
and more equitable access to land. Fifty communities, with an average
of 36 cattle-owning households, will potentially benefit from the
rangeland management component.
The INP activity is expected to increase incomes for over
200,000 households, and to increase incomes for primary producers, a
majority of whom are poor and female, and for whom small increases in
cash income can represent important supplementary household income.
5. Program Management
The GRN will incorporate the Compact program into its existing
government systems. The National Planning Commission (``NPC''), a
ministry-level government agency charged with directing development
resources, has been proposed as the designated accountable entity
(``MCA-Namibia''). As such, it will have overall responsibility for the
oversight, management, and implementation of the program. A program
implementation unit within NPC will be responsible for the day-to-day
administration of the Compact. In addition, the GRN has proposed that
the Ministries of Education; Agriculture, Water and Forestry; and
Environment and Tourism, assist in the implementation of the specific
projects to ensure integration, coordination, and sustainability of
MCC's investments.
A. MCA-Namibia Board of Directors
The NPC commissioners will serve as the MCA-Namibia Board of
Directors. The commission currently consists of 14 members, six of whom
are GRN officials specified by the NPC's enabling statute, with the
remaining members appointed by the President of Namibia. As the six
specified GRN officials do not include representatives from the
Ministry of Education or the Ministry of Environment and Tourism, the
GRN has agreed that two of the appointed commission member slots will
be filled with representatives from these ministries. The remaining
appointed board members will be civil society and private sector
members, selected by the President based on their expertise in the
development field.
MCA-Namibia will rely on existing consultative committees to serve
as stakeholder committees for each project. These committees include
members
[[Page 46723]]
from the public and private sectors, and civil society. They are broad-
based and offer relevant technical expertise plus a solid understanding
of socioeconomic and environmental realities in Namibia.
B. MCA-Namibia Program Implementation Unit
Senior management of MCA-Namibia will consist of the chief
executive officer (CEO); two deputy CEOs; director of administration
and finance; project director for education, tourism and agriculture;
environment and social assessment manager; monitoring and evaluation
manager; legal advisor; and procurement manager. In addition to other
standard operational staff, much of the technical expertise will come
from government affiliates. To support MCA-Namibia and strengthen
financial and procurement controls, MCA-Namibia will competitively
recruit an external fiscal agent and procurement agent.
6. Program Assessment
A. Consultative Process
The GRN initiated consultations in all 13 regions of the country in
mid-2006. These consultations have been ongoing particularly in those
sectors that the Compact program will support. Stakeholders included
government officials at national and regional levels, local authority
counselors and stakeholders, regional coordination committees, regional
AIDS committees, regional emergency units, land boards, farmers
associations, conservancy groups, women's associations, church groups,
youth groups, vulnerable members of society, non-governmental
organizations, community-based organizations, and the private sector.
An important and noteworthy aspect of the consultative process is the
absence of major divergence between the issues identified at national
and regional levels. This appears to confirm that, in general, there is
consensus within Namibia on priorities for economic growth--a consensus
built on previous consultative processes for Vision 2030, the National
Development Plans, Participatory Poverty Assessments, and other sector-
level consultations.
MCA-Namibia, in close consultation and cooperation with the
stakeholders for each of the program components, will continue to
consult and inform Namibians country-wide on the Compact to ensure
broad-based understanding, appreciation, commitment, and ownership of
the program.
B. Government Commitment
The GRN has demonstrated commitment to the Compact development
process by fully funding an MCA-Namibia core team since mid-2006,
undertaking efforts to enhance performance on MCC Selection Indicators,
proposing an ambitious lower-middle income country (``LMIC'')
counterpart contribution, and adopting certain sector-specific policy
reforms that are complementary to the Compact activities.
Ongoing Effort of MCA-Namibia Core Team: GRN commitment to
the program is evidenced by a budgetary commitment to the Compact
development process amounting to over $1.55 million over two years, the
establishment of a 13-member MCA-Namibia core team, and the provision
of significant office space and equipment for the MCA-Namibia core team
in Windhoek. Coordinated by MCA-Namibia, GRN officials and other non-
governmental stakeholders have been engaged in refining the proposal
over the past year and half.
MCC Eligibility Criteria: The GRN is in the process of
developing a Performance Improvement Plan (``PIP'') to enhance
Namibia's performance on the specific indicators where it falls below
the median, namely girls' primary education completion, immunization
rates, natural resource management, land rights and access, costs of
starting a business, and fiscal policy. In addition, the GRN has named
a senior-level point of contact within the Office of the President to
lead and oversee the indicator performance enhancement efforts. MCC
anticipates that the GRN will submit the PIP by mid-2008.
LMIC Country Contribution: The GRN has proposed a
substantial counterpart contribution to the Compact, which primarily
entails investments in complementary sector programs of ETSIP,
livestock, and management and business plans for Etosha National Park.
In addition, the GRN is committing to fund a significant portion of the
additional line ministry staff expenses required for Compact
implementation, such as increased staff resources from the Directorate
of Veterinary Services and the Ministry of Education. As part of
ensuring sustainability of MCC investments, the GRN will provide
upfront, detailed budget commitments for all additional recurrent
expenditures required for the staffing, operations, and maintenance of
all infrastructure included in the Compact.
Sector-Specific Policy Reforms: The GRN has made several
notable advancements in the education, tourism, and agriculture
sectors, encompassing:
Education Project
Enactment of the National Training Fund within the Namibia
Training Authority under the Vocational Education and Training Act of
2008;
Establishment and staffing of the National Training
Authority;
Approval of a new National Textbook Policy for primary and
secondary schools (2008); and
Adoption of policies for the Colleges of Education to
allow for their semi-autonomy and introduction of performance
contracts.
Tourism Project
Adoption of Ministry of Environment and Tourism Strategic
Plan;
Adoption of Etosha National Park Management Plan and
Business Plan; and
Passage of the Environmental Management Bill into law
establishing mandatory environmental review and mitigation procedures
in Namibia (2007).
Agriculture Project
Drafting the Access to Genetic Resources and Associated
Traditional Knowledge bill that regulates the methods of harvesting and
cultivation of indigenous natural products (passage into law by the
Namibian Parliament and enactment by its President pending).
C. Environmental and Social Assessment
Education Project
The education project is considered a Category B project due to the
environmental and social impacts that will result from the activities.
The GRN will identify and assess environmental impacts as a result of
detailed design work completed prior to entry into force. Limited
resettlement impacts are anticipated to result from the education
project. MCA-Namibia and the Ministry of Education have been
coordinating with local communities on the acquisition of land in
compliance with World Bank Operational Policy 4.12 on Involuntary
Resettlement in advance of the MCC investments. No resettlement impacts
are anticipated to result from the infrastructure investments at the
general schools.
The education project is expected to lead to beneficial gender and
social impacts by providing improved services and facilities to
targeted communities. The COSDECs will benefit unemployed
[[Page 46724]]
youth, women, and low-skilled adults by providing training in
entrepreneurship, business management, and other vocational skills
critical to the local labor market. The proposed improvements at the
approximately 47 general schools, including the provision of water and
sanitation and new construction designs that provide disability access,
will improve the quality of and access to schools for female and
disabled learners.
HIV/AIDS education needs strengthening as the guidance and support
to teachers and trainers is limited. HIV/AIDS awareness and prevention
plans will also be implemented on construction contracts, where each
facility is located for the schools, COSDECs, and RSRCs.
Tourism Project
The tourism project is categorized as a Category A project due to
potential site-specific environmental and social impacts in sensitive
areas anticipated from the construction of national park management
centers in fragile ecosystems home to small populations of vulnerable
ethnic groups. Tourism development activities supported through an
independent fund established to provide community-based wildlife
organizations with equity shares in tourism joint-ventures and support
for wildlife relocation activities will be classified as Category D.
While the environmental and social impacts of Compact-supported tourism
activities are not anticipated to be significant in nature, they are
occurring in sensitive areas and will require mitigation through
environmental management plans, as well as support to ongoing voluntary
resettlement actions to provide land for the San ethnic group outside
of national parks.
The construction and rehabilitation of management centers in Etosha
National Park will require an environmental impact assessment and site-
specific environmental management plans. Social safeguards associated
with the Etosha National Park management centers will include the
implementation of HIV/AIDS awareness and prevention programs for both
national park staff and construction contractors, and conditions to
ensure park employees have access to schools for their children.
Women and vulnerable groups have been actively involved in land
management, resource governance, and revenue-generating activities
through the tourism sector in Namibia, and MCC's investment will ensure
their continued participation. Membership in the conservancies is
almost equally split between men and women, and as of January 2006,
women comprised 37 percent of all conservancy management committee
members. Underrepresented groups, such as San and Himba peoples, are
active members in conservancies in their traditional homelands, which
provide them with revenue generating opportunities previously
unavailable, and MCC funding will be used to increase economic
opportunities through tourism on conservancies in San and Himba
homelands.
Agriculture Project
The land access and management activity is a Category B activity
due to potential site-specific environmental impacts stemming from land
use management decisions. These impacts are not anticipated to be
significant and can be mitigated through environmental management plans
and participatory community-level decision making processes.
The communal land support sub-activity is intended to reduce land
degradation and provide more secure access to land for the residents of
the NCAs. Additionally, the community-based rangeland and livestock
management sub-activity is intended to improve the productivity of
grasslands and provide communities with the ability to plan their
grazing for more sustainable land use. However, MCC-funded
interventions intended to improve land use and clarify ownership rights
could lead to the involuntary loss of livelihood access or resettlement
if community-based land use planning actions are abused by elites.
The livestock support activity is a Category B activity due to
potential site-specific environmental impacts resulting from the
construction and operation of veterinary centers, rehabilitation of
quarantine camps, and construction of community, municipal or private
sector livestock marketing facilities through matching funds from MCC.
As the livestock market efficiency improvement intervention involves an
intermediate funding facility, it is a Category D investment. While
these impacts are not anticipated to be significant in nature, they
will require mitigation through environmental management plans.
MCA-Namibia will procure an environmental assessment to analyze
potential environmental impacts of the livestock infrastructure
construction and rehabilitation, and develop site-specific
environmental mitigation plans for each site. Given the remote location
of these facilities, specific measures will need to be integrated into
the final design of these facilities to ensure proper disposal so that
untreated wastes do not go directly into streams or rivers, as is the
case in some areas.
For any veterinary infrastructure built through the livestock
market efficiency improvement fund, MCA-Namibia will develop
environmental screening and siting criteria, as well as guidelines for
environmental procedures to follow during construction and operation of
these facilities. Periodic and random performance audits of
infrastructure funding recipients will take place to ensure they are
complying with these requirements.
The INP activity is a Category A activity due to potentially
significant environmental impacts anticipated to result from increased
harvesting, utilization, and export of species listed for protection
under the Convention on the International Trade of Endangered Species.
Millennium Challenge Compact Between the United States of America
Acting Through the Millennium Challenge Corporation and the Republic of
Namibia
Table of Contents
Article 1. Goal and Objectives
Section 1.1 Compact Goal
Section 1.2 Program Objective
Section 1.3 Project Objectives
Article 2. Funding and Resources
Section 2.1 Program Funding
Section 2.2 Compact Implementation Funding
Section 2.3 MCC Funding
Section 2.4 Disbursement
Section 2.5 Interest
Section 2.6 Namibia Resources; Budget
Section 2.7 Limitations on the Use of MCC Funding
Section 2.8 Taxes
Section 2.9 Lower Middle Income Countries
Article 3. Implementation
Section 3.1 Program Implementation Agreement
Section 3.2 Responsibilities
Section 3.3 Policy Performance
Section 3.4 Assurances
Section 3.5 Implementation Letter
Section 3.6 Procurement
Section 3.7 Records; Accounting; Covered Providers; Access
Section 3.8 Audits; Reviews
Article 4. Communications
Section 4.1 Communications
Section 4.2 Representatives
Section 4.3 Signatures
Article 5. Termination; Suspension; Refunds
Section 5.1 Termination; Suspension
Section 5.2 Refunds; Violation
Section 5.3 Survival
Section 5.4 Post-Termination Discussions
Article 6. Compact Annexes; Amendments; Governing Law
Section 6.1 Annexes
Section 6.2 Amendments
Section 6.3 Inconsistencies
Section 6.4 Governing Law
[[Page 46725]]
Section 6.5 Additional Instruments
Section 6.6 References to MCC Web site
Section 6.7 References to Law, Regulations, Policies and
Guidelines
Section 6.8 MCC Status
Article 7. Entry Into Force
Section 7.1 Domestic Requirements
Section 7.2 Conditions Precedent to Entry into Force
Section 7.3 Date of Entry into Force
Section 7.4 Compact Term
Section 7.5 Provisional Application
Annex I: Program Description
Annex II: Multi-Year Financial Plan Summary
Annex III: Description of the Monitoring and Evaluation Plan
Annex IV: Conditions to Disbursement of Compact Implementation
Funding
Annex V: Definitions
Annex VI: MCA-Namibia Procurement Rules
Millennium Challenge Compact Preamble
This Millennium Challenge Compact (this ``Compact'') is between the
United States of America, acting through the Millennium Challenge
Corporation, a United States government corporation (``MCC''), and the
Republic of Namibia (``Namibia'') (individually a ``Party'' and
collectively, the ``Parties'').
Recalling that Namibia consulted with the private sector and civil
society of the Republic of Namibia to determine the priorities for the
use of Millennium Challenge Account assistance and developed and
submitted to MCC a proposal focused on poverty reduction through
improving human resources, capacities and skills, enhancing public and
private sector investment in tourism and increasing agricultural
productivity; and
Recognizing that MCC wishes to help the Republic of Namibia
implement a program to achieve the goal and objectives described herein
(the ``Program'');
Capitalized terms used herein shall have the meanings specified in
Annex V hereto.
The Parties hereby agree as follows:
Article 1. Goal and Objectives
Section 1.1 Compact Goal
The goal of this Compact is to reduce poverty in the Republic of
Namibia through economic growth (the ``Compact Goal'').
Section 1.2 Program Objective
The objective of the Program (as further described in Annex I) (the
``Program Objective'') is to increase the competence of the Namibian
workforce (knowledge, skills and attitude), and increase the
productivity of agricultural and non-agricultural enterprises in rural
areas.
Section 1.3 Project Objectives
The objectives of the Projects (as further described in Annex I)
(each a ``Project Objective'' and collectively, the ``Project
Objectives'') are:
(a) The objective of the Education Project is to improve the
quality of the workforce in Namibia by enhancing the equity and
effectiveness of basic, vocational, and tertiary education and of
technical skills.
(b) The objective of the Tourism Project is to grow the Namibian
tourism industry with explicit targeting of income streams to
conservancy households.
(c) The objective of the Agriculture Project is to increase the
total value added from livestock in the northern communal areas of the
Republic of Namibia and to increase income from indigenous natural
products accruing to the poor nationwide.
Article 2. Funding and Resources
Section 2.1 Program Funding
MCC hereby grants to Namibia, under the terms of this Compact, an
amount not to exceed Three Hundred Four Million Four Hundred Seventy-
Seven Thousand Eight Hundred Sixteen United States Dollars
(US$304,477,816) (``Program Funding'') for use by Namibia to implement
the Program. The allocation of Program Funding is generally described
in Annex II to this Compact.
Section 2.2 Compact Implementation Funding
(a) MCC hereby grants to Namibia, under the terms of this Compact,
in addition to the Program Funding described in Section 2.1, an amount
not to exceed Nineteen Million Five Hundred Forty-Three Thousand One
Hundred Seventy-Five United States Dollars (US$19,543,175) (``Compact
Implementation Funding'') under Section 609(g) of the Millennium
Challenge Act of 2003, as amended (the ``MCA Act''), for use by Namibia
for the following purposes:
(i) Fiscal and procurement administration activities and costs
(including, for example, costs related to standby agents procured by
MCC);
(ii) Administrative activities including start-up costs such as
staff salaries and administrative support expenses such as rent,
computers and other information technology or capital equipment;
(iii) Baseline surveys for monitoring and evaluation;
(iv) Additional work for feasibility studies and development of
technical scopes; and
(v) Other Compact implementation activities approved by MCC.
The allocation of Compact Implementation Funding is generally
described in Annex II to this Compact.
(b) Notwithstanding Section 7.3 of this Compact, as of the date
that this Compact is signed by MCC and Namibia (i) this Section 2.2
shall be effective, and (ii) any other provisions of this Compact
applicable to Compact Implementation Funding shall be effective for
purposes of Compact Implementation Funding only, provided that the MCA-
Namibia Procurement Rules will only be effective after ratification of
this Compact by Namibia.
(c) Each Disbursement (as defined in Section 2.4) of Compact
Implementation Funding shall be subject to satisfaction of the
conditions to such disbursement as set forth on Annex IV.
(d) If, after the first anniversary of this Compact entering into
force, MCC determines that the full amount of Compact Implementation
Funding under Section 2.2(a) of this Compact exceeds the amount which
reasonably can be utilized for the purposes and uses set forth in
Section 2.2(a) of this Compact, MCC, by written notice to Namibia, may
withdraw the excess amount, thereby reducing the amount of the Compact
Implementation Funding as set forth in Section 2.2(a) (such excess, the
``Excess CIF Amount''). In such event, the amount of Compact
Implementation Funding granted to Namibia under Section 2.2(a) will be
reduced by the Excess CIF Amount, and MCC will have no further
obligations with respect to such Excess CIF Amount.
(e) MCC, at MCC's option by written notice to Namibia, may elect to
grant to Namibia an amount equal to all or a portion of such Excess CIF
Amount as an increase in the Program Funding, and such additional
Program Funding will be subject to the terms and conditions of this
Compact applicable to Program Funding.
Section 2.3 MCC Funding
Program Funding and Compact Implementation Funding are collectively
referred to in this Compact as ``MCC Funding.''
Section 2.4 Disbursement
In accordance with this Compact and the Program Implementation
Agreement (as defined in Section 3.1), MCC will disburse MCC Funding
for expenditures incurred in furtherance of the Program (each instance,
a ``Disbursement''). Subject to the satisfaction of all applicable
conditions, the proceeds of such Disbursements will be made
[[Page 46726]]
available to Namibia, at MCC's sole election, by (a) deposit to one or
more bank accounts established by Namibia and acceptable to MCC (each,
a ``Permitted Account'') or (b) direct payment to the relevant provider
of goods, works or services in connection with the implementation of
the Program. MCC Funding may be expended only to cover Program
expenditures as provided in this Compact and the Program Implementation
Agreement.
Section 2.5 Interest
Namibia will pay to MCC any interest or other earnings that accrue
on MCC Funding in accordance with the Program Implementation Agreement
(whether by directing such payments to a bank account outside Namibia
that MCC may from time to time indicate or as otherwise directed by
MCC).
Section 2.6 Namibia Resources; Budget
(a) In accordance with Section 609(b)(2) of the MCA Act, Namibia
will make a contribution towards meeting the Objectives of this
Compact. Annex II describes such contribution in more detail. In
addition, Namibia will provide all funds and other resources, and will
take all actions, that are necessary to carry out Namibia's
responsibilities and obligations under this Compact.
(b) Namibia will use its best efforts to ensure that all MCC
Funding it receives or is projected to receive in each of its fiscal
years is fully accounted for in its annual budget on a multi-year
basis.
(c) Namibia will not reduce the normal and expected resources that
it would otherwise receive or budget from sources other than MCC for
the activities contemplated under this Compact and the Program.
(d) Unless Namibia discloses otherwise to MCC in writing, MCC
Funding will be in addition to the resources that Namibia would
otherwise receive or budget for the activities contemplated under this
Compact and the Program.
Section 2.7 Limitations on the Use of MCC Funding
Namibia will ensure that MCC Funding will not be used for any
purpose that would violate United States law or policy, as specified in
this Compact or as further notified to Namibia in writing or by posting
on the MCC Web site at http://www.mcc.gov (the ``MCC Web site''),
including but not limited to the following purposes:
(a) For assistance to, or training of, the military, police,
militia, national guard or other quasi-military organization or unit;
(b) For any activity that is likely to cause a substantial loss of
United States jobs or a substantial displacement of United States
production;
(c) To undertake, fund or otherwise support any activity that is
likely to cause a significant environmental, health, or safety hazard,
as further described in MCC's Environmental Guidelines posted on the
MCC Web site (the ``MCC Environmental Guidelines''); or
(d) To pay for the performance of abortions as a method of family
planning or to motivate or coerce any person to practice abortions, to
pay for the performance of involuntary sterilizations as a method of
family planning or to coerce or provide any financial incentive to any
person to undergo sterilizations or to pay for any biomedical research
which relates, in whole or in part, to methods of, or the performance
of, abortions or involuntary sterilization as a means of family
planning.
Section 2.8 Taxes
(a) Unless the Parties otherwise specifically agree in writing, and
subject to the provisions of Sections 2.8(b)(ii) and (iii) and 2.8(c),
Namibia will ensure that each of the following is free from the payment
of any existing or future taxes, duties, levies, contributions or other
similar charges (``Taxes'') of or in Namibia (including any such Taxes
imposed by a national, regional, local or other governmental or taxing
authority of or in Namibia): (i) The Program; (ii) MCC Funding; (iii)
interest or earnings on MCC Funding; (iv) any Project or activity
implemented under the Program; (v) MCA-Namibia (as defined in Section
3.2(b)) (vi) goods, works, services, technology and other assets and
activities under the Program or any Project; (vii) persons and entities
that provide such goods, works, services, technology and assets or
perform such activities; and (viii) income, profits and payments with
respect thereto. The Parties acknowledge and agree that the foregoing
includes, inter alia, value added and other transfer taxes, profit and
income taxes, property and ad valorem taxes, import and export duties
and taxes (including for goods imported and re-exported for personal
use), withholding taxes, payroll taxes, and social security and social
insurance contributions.
(b) The GRN and the USG may, at MCC's discretion, enter into one or
more agreements setting forth the mechanisms for implementing this
Section 2.8, including (i) waivers of certain filing and compliance
requirements relating to Taxes, (ii) an agreement on exceptions to
Section 2.8(a) above for fees or charges for services that are
generally applicable in Namibia, reasonable in amount and imposed on a
non-discriminatory basis, and (iii) one or more mechanisms to implement
the provisions of Section 2.8(a) with respect to all or any of the
Taxes that would otherwise be applicable, which may include exemptions
from payment of such Taxes that have been granted in accordance with
applicable law, refund or reimbursement of such Taxes by the Namibia to
MCC or to the taxpayer, or payment by Namibia to MCA-Namibia or MCC,
for the benefit of the Program, of an agreed amount representing any
collectible Taxes on the items described in Section 2.8(a).
(c) The provisions of Section 2.8(a) shall not apply to income
Taxes on and contributions with respect to individuals who are
nationals of Namibia and individuals who are ordinarily resident in
Namibia, provided that such Taxes and contributions are equitable and
are generally applicable to all nationals in Namibia.
(d) If a Tax has been paid contrary to the requirements of this
Section 2.8 or any agreement entered into pursuant to this Section 2.8,
Namibia will refund promptly to MCC (or to another party as designated
by MCC) the amount of such Tax in Namibia Dollars within thirty (30)
days (or such other period as may be agreed in writing by the Parties)
after Namibia is notified in writing (whether by MCC or MCA-Namibia)
that such Tax has been paid.
(e) No MCC Funding, proceeds thereof or Program assets may be
applied by Namibia in satisfaction of its obligations under this
Section 2.8.
Section 2.9 Lower Middle Income Countries
Section 606(b) of the MCA Act restricts the amount of assistance
that MCC may provide to ``lower middle income countries,'' a term that
is defined in the MCA Act and includes Namibia. To the extent that MCC
determines, in MCC's reasonable discretion, that the amount of Program
Funding granted to Namibia in this Compact may result in a violation of
Section 606(b) of the MCA Act, MCC, at any time and from time to time
upon written notice to Namibia, may reduce the amount of Program
Funding, or withhold any Disbursement of Program Funding, to avoid or
remedy such a violation.
[[Page 46727]]
Article 3. Implementation
Section 3.1 Program Implementation Agreement
Namibia will implement the Program in accordance with this Compact
and as further specified in an agreement entered into between the GRN
and the USG relating to, among other matters, implementation
arrangements, fiscal accountability and disbursement and use of MCC
Funding (the ``Program Implementation Agreement'' or ``PIA'').
Section 3.2 Responsibilities
(a) Namibia has principal responsibility for overseeing and
managing the implementation of the Program.
(b) Namibia hereby designates the National Planning Commission
(``NPC''), a governmental entity established under the laws of the
Republic of Namibia pursuant to the National Planning Commission Act,
1994 (the ``NPC Act''), as the accountable entity to implement the
Program and to perform Namibia's rights and responsibilities to
oversee, manage and implement the Program, including without
limitation, managing the implementation of Projects and their
activities, allocating resources and managing procurements. The NPC,
acting in such designated capacity, will be referred to herein as
``MCA-Namibia,'' and has the authority to bind Namibia with regard to
all Program activities. The designation of this Section 3.2(b) will not
relieve Namibia of any obligations and rights, for which Namibia
retains full responsibility.
(c) Namibia will ensure that no current law or regulation in
Namibia makes unlawful or otherwise prevents or hinders the performance
of any of Namibia's obligations under this Compact, the PIA or any
other related agreement or any transaction contemplated hereby or
thereby. Furthermore, Namibia will use its best efforts to ensure that
no future law or regulation in Namibia will make unlawful or otherwise
prevent or hinder the performance of any of Namibia's obligations under
this Compact, the PIA or any other related agreement or any transaction
contemplated hereby or thereby.
(d) Namibia will ensure that any assets or services funded in whole
or in part (directly or indirectly) by MCC Funding will be used solely
in furtherance of this Compact and the Program unless otherwise agreed
by MCC in writing.
(e) Namibia will take all necessary or appropriate steps to achieve
the Program Objective and Project Objectives during the Compact Term
(as defined in Section 7.4).
Section 3.3 Policy Performance
In addition to undertaking the specific policy, legal and
regulatory reform commitments identified in Annex I (if any), Namibia
will seek to maintain and to improve its level of performance under the
policy criteria identified in Section 607 of the MCA Act, and the
selection criteria and methodology used by MCC.
Section 3.4 Assurances
Namibia assures MCC that:
(a) As of the date this Compact is signed by Namibia, the
information provided to MCC by or on behalf of Namibia in the course of
reaching agreement with MCC on this Compact is true, correct and
complete in all material respects;
(b) This Compact, upon its ratification by Namibia, does not, and
will not, conflict with any other obligation of Namibia, any other
international agreement or obligation of Namibia or any of the laws of
Namibia; and
(c) Namibia will not invoke any of the provisions of its internal
law to justify or excuse a failure to perform its duties or
responsibilities under this Compact.
Section 3.5 Implementation Letters
To assist Namibia in the implementation of this Compact, from time
to time, MCC may issue implementation letters that will furnish
additional guidance about implementation of this Compact, the PIA or
other related agreements (each, an ``Implementation Letter''). The
Parties may also issue jointly agreed-upon Implementation Letters to
confirm and record their mutual understanding on aspects related to the
implementation of this Compact, the PIA or other related agreements.
Such Implementation Letters will be applied when implementing the
Program.
Section 3.6 Procurement
Namibia will ensure that the procurement of all goods, works and
services by Namibia or any Provider (as defined in Section 3.7(c)) to
implement the Program will be consistent with the MCA-Namibia Program
Procurement Rules attached hereto as Annex VI (the ``MCA-Namibia
Procurement Rules'') as provided for in the Program Implementation
Agreement. The Procurement Rules will include, among others, the
following requirements:
(a) Open, fair, and competitive procedures must be used in a
transparent manner to solicit, award and administer contracts and to
procure goods, works and services;
(b) Solicitations for goods, works, and services must be based upon
a clear and accurate description of the goods, works and services to be
acquired;
(c) Contracts must be awarded only to qualified contractors that
have the capability and willingness to perform the contracts in
accordance with their terms on a cost effective and timely basis; and
(d) No more than a commercially reasonable price, as determined,
for example, by a comparison of price quotations and market prices,
will be paid to procure goods, works and services.
Section 3.7 Records; Accounting; Covered Providers; Access
(a) Namibia Books and Records. Namibia will maintain, and will use
its best efforts to ensure that all Covered Providers (as defined in
Section 3.7(c)) maintain accounting books, records, documents and other
evidence relating to the Program adequate to show to MCC's satisfaction
the use of all MCC Funding (``Compact Records''). In addition, Namibia
will furnish or cause to be furnished to MCC, upon its request, all
such Compact Records.
(b) Accounting. Namibia will maintain and will 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 Namibia's option and with MCC's prior written
approval, other accounting principles, such as those (i) prescribed by
the International Accounting Standards Board, or (ii) then prevailing
in Namibia. Compact Records must 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) Providers and Covered Providers. Unless the Parties agree
otherwise in writing, a ``Provider'' is (i) any entity of Namibia that
receives or uses MCC Funding or any other Program asset in carrying out
activities in furtherance of this Compact or (ii) any third party that
receives at least US$50,000 in the aggregate of MCC Funding (other than
as salary or compensation as an employee of an entity of Namibia)
during the Compact Term. A ``Covered Provider'' is (i) 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 Namibia
fiscal year or any other non-United States person or entity that
[[Page 46728]]
receives, directly or indirectly, US$300,000 or more of MCC Funding
from any Provider in such fiscal year, or (ii) 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 Namibia
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.
(d) Access. Upon MCC's request, Namibia, at all reasonable times,
will permit, or cause to be permitted, authorized representatives of
MCC, an authorized United States 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 Namibia to
conduct any assessment, review or evaluation of the Program, the
opportunity to audit, review, evaluate or inspect facilities and
activities funded in whole or in part by MCC Funding.
Section 3.8 Audits; Reviews
(a) Audits. Except as the Parties may otherwise agree in writing,
Namibia will, on at least a semi-annual basis, conduct, or cause to be
conducted, financial audits of all Disbursements of MCC Funding
covering the period from signing of this 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 terms of the Program
Implementation Agreement. In addition, upon MCC's request, Namibia will
ensure that such audits are conducted by an independent auditor
approved by MCC and named on the list of local auditors approved by the
Inspector General of MCC (the ``Inspector General'') or a United
States-based certified public accounting firm selected in accordance
with the ``Guidelines for Financial Audits Contracted by MCA'' (the
``Audit Guidelines'') issued and revised from time to time by the
Inspector General, which are posted on the MCC Web site. Audits will be
performed in accordance with the Audit Guidelines and be subject to
quality assurance oversight by the Inspector General. Each audit must
be completed and the audit report delivered to MCC no later than 90
days after the first period to be audited and no later than 90 days
after each June 30 and December 31 thereafter, or such other period as
the Parties may otherwise agree in writing.
(b) Audits of United States Entities. Namibia will ensure that
agreements between Namibia or any Provider, on the one hand, and a
United States nonprofit organization, on the other hand, that are
financed with MCC Funding state that the United States nonprofit
organization is subject to the applicable audit requirements contained
in OMB Circular A-133 issued by the United States Government Office of
Management and Budget (``OMB''). Namibia will ensure that agreements
between Namibia or any Provider, on the one hand, and a United States
for-profit Covered Provider, on the other hand, that are financed with
MCC Funding state that the United States for-profit organization is
subject to audit by the applicable United States Government agency,
unless Namibia and MCC agree otherwise in writing.
(c) Corrective Actions. Namibia will 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 Namibia's records, and
require each such Covered Provider to permit independent auditors to
have access to its records and financial statements as necessary.
(d) Audit by MCC. MCC will have the right to arrange for audits of
Namibia's use of MCC Funding.
(e) 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.
Article 4. Communications
Section 4.1 Communications
Any document or communication required or submitted by either Party
to the other under this Compact must be in writing and, except as
otherwise agreed with MCC, in English. For this purpose, the address of
each Party is set forth below.
To MCC:
Millennium Challenge Corporation, Attention: (a) Before this
Compact enters into force, Vice President, Compact Development; and (b)
after this Compact enters into force, Vice President, Compact
Implementation, (in each case, with a copy to the Vice President and
General Counsel), 875 Fifteenth Street, NW., Washington, DC 20005,
United States of America, Facsimile: (202) 521-3700, Telephone: (202)
521-3600, E-mail: [email protected] (Vice President, Compact
Development), [email protected] (Vice President, Compact
Implementation), [email protected] (Vice President and General
Counsel).
To Namibia:
The Director General, National Planning Commission, Office of the
President, Government Office Park, Luther Street, Block D, Room 206,
Private Bag 12005, Windhoek, Republic of Namibia, Tel: +264 61 283
4222, Fax: +264 61 250 751.
with a copy to:
MCA-Namibia, Attention: Chief Executive Officer, c/o National
Planning Commission, Office of the President, Government Office Park,
Luther Street, Block D, Room 206, Private Bag 12005, Windhoek, Republic
of Namibia, Tel: +264 61 283 4222, Fax: +264 61 250 751.
Section 4.2 Representatives
For all purposes of this Compact (including, without limitation,
signing agreements supplemental to this Compact), Namibia will be
represented by the individual holding the position of, or acting as,
the Director General of NPC, and MCC will be represented by (a) before
this Compact enters into force, the individual holding the position of,
or acting as, Vice President, Compact Development, and (b) after this
Compact enters into force, the individual holding the position of, or
acting as, Vice President, Compact Implementation (each of the
foregoing, a ``Principal Representative''). Each Party, 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. Namibia hereby
designates the chief executive officer of MCA-Namibia as an Additional
Officer. A Party may change its Principal Representative to a new
representative that holds a position of equal or higher rank upon
written notice to the other Party.
Section 4.3 Signatures
With respect to all documents other than this Compact or an
amendment to this Compact, a signature delivered by facsimile or
electronic mail will be binding on the Party delivering such signature
to the same extent as an original signature would be.
Article 5. Termination; Suspension; Refunds
Section 5.1 Termination; Suspension
(a) Either Party may terminate this Compact without cause in its
entirety by giving the other Party thirty (30) days' written notice.
[[Page 46729]]
(b) MCC may, immediately, upon written notice to Namibia, suspend
or terminate this Compact or MCC Funding, in whole or in part, and any
obligation related thereto, if MCC determines that any circumstance
identified by MCC, in its reasonable discretion, as a basis for
suspension or termination has occurred, which circumstances include but
are not limited to the following:
(i) Namibia fails to comply with its obligations under this
Compact, the PIA or any other agreement or arrangement entered into by
Namibia in connection with this Compact or the Program;
(ii) An event or series of events has occurred that MCC determines
makes it probable that the Program Objective or any of the Project
Objectives will not be achieved during the Compact Term or that Namibia
will not be able to perform its obligations under this Compact;
(iii) A use of MCC Funding or continued implementation of the
Program violates or would violate applicable law or United States
Government policy, whether now or hereafter in effect;
(iv) Namibia or any other person or entity receiving MCC Funding or
using assets acquired in whole or in part with MCC Funding is engaged
in activities that are contrary to the national security interests of
the United States;
(v) an act has been committed or an omission or an event has
occurred that would render Namibia 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;
(vi) Namibia has engaged in a pattern of actions inconsistent with
the criteria used to determine the eligibility of Namibia for
assistance under the MCA Act ; and
(vii) Namibia or another person or entity receiving MCC Funding or
using assets acquired in whole or in part with MCC Funding is found to
have been convicted of a narcotics offense or to have been engaged in
drug trafficking.
(c) All Disbursements will cease upon expiration, suspension, or
termination of this Compact; provided, however, MCC Funding may be
used, in compliance with this Compact and the PIA, to pay for (i)
reasonable expenditures for goods, works or services that are properly
incurred under or in furtherance of the Program before expiration,
suspension or termination of this Compact, and (ii) reasonable
expenditures (including administrative expenses) properly incurred in
connection with the winding up of the Program within 120 days after the
expiration, suspension or termination of this Compact, so long as the
request for such expenditures is submitted within ninety (90) days
after such expiration, suspension or termination.
(d) Subject to Section 5.1(c), upon the expiration, suspension or
termination of this Compact, (i) any amounts of MCC Funding not
disbursed by MCC to Namibia will be automatically released from any
obligation in connection with this Compact, and (ii) any amounts of MCC
Funding disbursed by MCC but not expended before the expiration,
suspension or termination of this Compact, plus accrued interest
thereon will be returned to MCC within thirty (30) days after Namibia
receives MCC's request for such return; provided, however, that if this
Compact is suspended or terminated in part, MCC may request a refund
for only the amount of MCC Funding allocated to the suspended or
terminated portion.
(e) MCC may reinstate any suspended or terminated MCC Funding under
this Compact if MCC determines that Namibia or other relevant person or
entity has committed to correct each condition for which MCC Funding
was suspended or terminated.
Section 5.2 Refunds; Violation
(a) If any MCC Funding, any interest or earnings thereon, or any
asset acquired in whole or in part with MCC Funding is used for any
purpose in violation of the terms of this Compact, then MCC may require
Namibia to repay to MCC in United States Dollars the value of the
misused MCC Funding, interest, earnings, or asset, plus interest within
thirty (30) days after Namibia's receipt of MCC's request for
repayment. Namibia will not use MCC Funding, proceeds thereof or
Program assets to make such payment.
(b) Notwithstanding any other provision in this Compact or any
other agreement to the contrary, MCC's right under this Section 5.2 for
a refund will continue during the Compact Term and for a period of (i)
five years thereafter or (ii) one year after MCC receives actual
knowledge of such violation, whichever is later.
Section 5.3 Survival
Namibia's responsibilities under Sections 2.4, 2.6, 2.7, 3.7, 3.8,
5.1(c), 5.1(d), 5.2, 5.3, 5.4 and 6.2 of this Compact will survive the
expiration, suspension or termination of this Compact.
Section 5.4 Post-Termination Discussions
Following the termination of this Compact pursuant to Section
5.1(b), at Namibia's request, the Parties will meet at a mutually
convenient time and location for the purpose of notifying Namibia of
the circumstances or reasons for such termination to the extent it has
not previously received such notice. Notwithstanding the Parties'
agreement to meet, which will be honored in good faith, any matters
discussed will be non-binding (unless otherwise agreed and recorded by
the Parties), will not give rise to a claim by either Party, and MCC
will not be obligated to reinstate the Compact following any such
meeting.
Article 6. Compact Annexes; Amendments; Governing Law
Section 6.1 Annexes
Each annex to this Compact constitutes an integral part hereof, and
references to ``Annex'' mean an annex to this Compact unless otherwise
expressly stated.
Section 6.2 Amendments
(a) The Parties may amend this Compact only by a written agreement
signed by the Principal Representatives.
(b) Without formally amending this Compact, the Parties may agree
in writing, signed by the Principal Representatives, to modify any
Annex to this Compact to (i) suspend, terminate or modify any project
described in Annex I (each, a ``Project'' and collectively, the
``Projects'') or to create a new project, (ii) change the designations
and allocations of funds among the Projects, the Project activities, or
any activity under Program administration or monitoring and evaluation,
or between a Project identified as of the entry into force of this
Compact and a new project, or (iii) add, delete or waive any condition
precedent described in Annex IV, or (iv) amend the MCA-Namibia
Procurement Rules, provided that any such modification (1) is
consistent in all material respects with the Program Objective, (2)
does not cause the amount of Program Funding to exceed the aggregate
amount specified in Section 2.1 of this Compact (as may be modified by
operation of Section 2.2(e) of this Compact), (3) does not cause the
amount of Compact Implementation Funding to exceed the aggregate amount
specified in Section 2.2(a) of this Compact, (4) does not cause
Namibia's responsibilities or contribution of resources to be less than
specified in this Compact, (5) does not extend the Compact Term and (6)
in the case of a
[[Page 46730]]
modification to change the designations or allocations of funds among
Projects, does not materially adversely affect any activity under
Program administration or monitoring and evaluation.
(c) Any modification of any annex to this Compact or to any other
provision of this Compact pursuant to this Section 6.2 shall be binding
on Namibia without the need for further ratification by Namibia, any
further parliamentary action, or satisfaction of any additional
domestic requirements of Namibia.
Section 6.3 Inconsistencies
In the event of any conflict or inconsistency between:
(a) any annex to this Compact and any of Articles 1 through 7, such
Articles 1 through 7 will prevail; or
(b) this Compact and any other agreement between the Parties
regarding the Program, this Compact will prevail.
Section 6.4 Governing Law
This Compact is an international agreement and as such is governed
by the principles of international law.
Section 6.5 Additional Instruments
Any reference to activities, obligations or rights undertaken or
existing under or in furtherance of this Compact or similar language
will include activities, obligations and rights undertaken by, existing
under or in furtherance of any agreement, document or instrument
related to this Compact and the Program.
Section 6.6 References to MCC Web Site
Any reference in this Compact, the PIA or any other agreement
entered into in connection with this Compact, to a document or
information available on, or notified by posting on the MCC Web site
will be deemed a reference to such document or information as updated
or substituted on the MCC Web site from time to time.
Section 6.7 References to Laws, Regulations, Policies and Guidelines
Each reference in this Compact, the PIA or any other agreement
entered into in connection with this Compact, to a law, regulation,
policy, guideline or similar document will be construed as a reference
to such law, regulation, policy, guideline or similar document as it
may, from time to time, be amended, revised, replaced, or extended and
will include any law, regulation, policy, guideline or similar document
issued under or otherwise applicable or related to such law,
regulation, policy, guideline or similar document.
Section 6.8 MCC Status
MCC is a United States Government corporation acting on behalf of
the United States Government in the implementation of this Compact. MCC
and the United States Government have no liability under this Compact,
the Program Implementation Agreement or any supplemental agreement, are
immune from any action or proceeding arising under or relating to any
of the foregoing documents, and Namibia hereby waives and releases all
claims related to any such liability. In matters arising under or
relating to this Compact, the Program Implementation Agreement, or any
supplemental agreement, neither MCC nor the United States Government
will be subject to the jurisdiction of the courts or any other body of
Namibia.
Article 7. Entry Into Force
Section 7.1 Domestic Requirements
Before this Compact enters into force, Namibia will take all
necessary steps to ensure that immediately upon this Compact entering
into force, (a) this Compact and the PIA and all of the provisions of
this Compact and the PIA are valid and binding and are in full force
and effect in Namibia, (b) this Compact, the PIA and any other
agreement entered into in connection with this Compact to which Namibia
and MCC are parties (if so stipulated therein) are international
agreements, and (c) no laws of Namibia (other than the constitution of
Namibia), whether now or hereafter in effect, will take precedence or
prevail over the terms of this Compact or the PIA.
Section 7.2 Conditions Precedent to Entry Into Force
This Compact will not enter into force unless and until each of the
following conditions have been satisfied:
(a) The PIA must have been executed by the parties thereto and have
become effective;
(b) Namibia must have delivered to MCC:
(i) A certificate signed and dated by the Principal Representative
of Namibia, or such other duly authorized representative of Namibia
acceptable to MCC, certifying that Namibia has satisfied the
requirements of Section 7.1;
(ii) A legal opinion from the Attorney General of Namibia (or other
entity acceptable to MCC), in form and substance satisfactory to MCC;
and
(iii) A certified copy of the Instrument of Ratification evidencing
the ratification of this Compact by Namibia, which MCC may post on its
Web site or otherwise make publicly available; and
(c) MCC must determine that after signature of this Compact,
Namibia has not engaged in any action or omission that is inconsistent
with the eligibility criteria for MCC Funding.
Section 7.3 Date of Entry Into Force
This Compact will enter into force on the later of (a) the date of
the last letter in an exchange of letters between the Principal
Representatives confirming that each Party has completed its domestic
requirements for entry into force of this Compact and (b) the date that
all conditions set forth in Section 7.2 have been satisfied.
Section 7.4 Compact Term
This Compact will remain in force for five years after its entry
into force, unless terminated earlier under Section 5.1 (the ``Compact
Term'').
Section 7.5 Provisional Application
Upon signature of this Compact and ratification by Namibia of this
Compact and until it has entered into force in accordance with Section
7.3, the Parties will provisionally apply the terms of this Compact,
provided that no MCC Funding, other than Compact Implementation
Funding, will be made available or disbursed before this Compact enters
into force.
In Witness Whereof, the undersigned, duly authorized, have signed
this Compact this 28th day of July, 2008.
Done at Windhoek, Namibia.
For Millennium Challenge Corporation, on behalf of the United
States of America, Name: Rodney G. Bent, Title: Deputy Chief Executive
Officer.
For the Republic of Namibia, Name: Professor Peter H. Katjavivi,
Title: Director-General, National Planning Commission.
Annex I Program Description
A. Program Overview
This Annex I describes the Program that MCC Funding will support in
Namibia during the Compact Term.
1. Background and Consultative Process
(a) Background.
Namibia, a large and sparsely populated country on Africa's
southwest coast, has a population of approximately 2.1 million. It
gained independence in 1990 after a century of foreign domination,
including a period of half a century of apartheid. While the country
has experienced steady economic growth since achieving
[[Page 46731]]
independence,\1\ as a consequence of its history, approximately 27
percent \2\ of its population lives in poverty (particularly in the
northern communal areas or ``NCAs''), and in 2006 its per capita income
was just US$3,000.\3\ Additionally, the distribution of wealth and
income within the country is highly unequal.\4\ Unemployment is high
(approximately 30 percent in 2006) and the HIV prevalence rate is more
than 19 percent.\5\ Despite facing such seemingly daunting obstacles to
improving its social and economic conditions, Namibia is committed to
providing equal opportunity to previously disadvantaged populations,
while maintaining political and economic stability.
---------------------------------------------------------------------------
\1\ According to the World Bank's ``International Bank for
Reconstruction and Development Interim Strategy Note: An Engagement
Framework for the Republic of Namibia for FY 08-09,'' April 25,
2007, Namibia has experienced an average of 4.3 percent economic
growth per annum.
\2\ Ibid.
\3\ Ibid.
\4\ According to International Monetary Fund report (``Namibia:
2007 Article IV Consultation--Staff Report; Public Information
Notice on the Executive Board Discussion; and Statement by the
Executive Director for Namibia,'' February 2008), Namibia has the
second highest Gini coefficient in the world at 0.64.
\5\ http://www.unicef.org/infobycountry/namibia_statistics.html.
---------------------------------------------------------------------------
The Compact Goal is to reduce poverty through economic growth in
Namibia. One of the ways to achieve such poverty reduction in Namibia
is to create a skilled and educated labor force. Another way is to
expand and diversify the economy's export base, which is currently
narrowly focused on mineral commodities, by supporting sectors such as
livestock, indigenous natural products and tourism. The Program will
focus on improving the quality of education and training for
underserved populations, and attempt to capitalize on Namibia's
comparative advantages, namely large areas of semi-arid communal land
suitable for livestock grazing, natural products indigenous to Namibia,
and diverse wildlife and unique landscapes ideal for ecotourism. This
approach is expected to have the greatest impact on alleviating
poverty.
(b) Consultative Process.
In connection with its proposal for this Compact, Namibia undertook
an extensive consultative process. Namibia held consultations in all 13
regions of the country and began national level consultations in mid-
2006, which have been on-going particularly in those sectors that the
Program will support. Participating stakeholders included government
officials at central and regional levels, local authority councilors
and stakeholders, regional coordination committees, regional AIDS
committees, regional emergency units, communal land boards (``CLBs''),
farmers' associations, conservancy groups, women's associations, church
groups, youth groups, vulnerable members of society, non-governmental
organizations (NGOs), community based organizations, and the private
sector.
Worthy of note is the fact that the consultative process did not
reveal a major divergence between the issues identified at national and
regional levels. This appears to confirm that, in general, there is
consensus within Namibia on priorities for economic growth. This
consensus was built on previous consultative processes for Vision
2030,\6\ the 5-year National Development Plans, Participatory Poverty
Assessments and other sector-level consultations. MCA-Namibia, in close
consultation and cooperation with the stakeholders for each of the
Program's components, will continue to consult and inform Namibians
country-wide on this Compact to ensure broad-based understanding,
appreciation, commitment, and ownership of the proposed investments.
---------------------------------------------------------------------------
\6\ Launched by H.E. President Sam Nujoma, in June 2004, Vision
2030 is the Government's long-term national strategy for development
ending in the year 2030.
---------------------------------------------------------------------------
2. Description of Program and Beneficiaries \7\
The Program, whose objective is to increase the knowledge, skills
and competence of the Namibian workforce, and to increase the
productivity of agricultural and non-agricultural enterprises in
communal areas, consists of three Projects: the Education Project, the
Tourism Project and the Agriculture Project. Each Project (the details
of which are set forth below) is designed to help address Namibia's
constraints to economic growth and lead to sustainable poverty
reduction. Specifically, the Education Project aims to increase skilled
labor by helping to create a more efficient and effective educational
system that will benefit approximately 1,000,000 young people, and
ultimately increase employment opportunities. The Tourism Project will
stimulate investment and income generation in poor, rural communities
through increasing the income for an estimated 23,000 tourism-related
employees and benefitting over 100,000 individuals living in
conservancies. Lastly, the Agriculture Project will improve
productivity in the livestock and INP sectors, and contribute to
enhanced household incomes for over 400,000 Namibians.
---------------------------------------------------------------------------
\7\ Figures in this section refer to MCC's economic and
beneficiary analysis for a period of 20 years and refer to direct
and indirect beneficiaries.
---------------------------------------------------------------------------
Specific anticipated results of the Program over a twenty-year
period include:
(a) A higher quality of education for approximately one million
primary and secondary school learners across Namibia from an improved
delivery system for textbooks;
(b) Access to financing for tertiary education for at least 60
percent of all qualifying applicants demonstrating financial need;
(c) Training of up to 49,000 low-income individuals who are either
unemployed and/or unskilled at the Community Skills and Development
Centers (``COSDECs'');
(d) Training in the tourism sector for more than 2,600 additional
trainees and training in other high-priority vocational areas (to be
further indentified) for additional students under an improved capacity
for market-relevant training in the competitive grants program;
(e) A higher quality of education for approximately 41,700
students, primarily in rural communities, and which is expected to
result in higher lifetime income for these students due to the proposed
investments in the targeted primary and secondary schools;
(f) An increase in tourism by an estimated 4,000 additional
overseas tourists per year as a result of marketing activities,
resulting in an incremental present added value by these tourists of
approximately US$7 million;
(g) Increased employment income for over 7,000 individuals due to
enhanced investment in conservancies;
(h) Increased tourism visits and value added to the Namibian
economy resulting from investments in Etosha National Park;
(i) Either increased employment, wages or household income for an
estimated 23,000 people as a result of the Tourism Project;
(j) Improved market efficiency, improved land tenure security, and
more equitable access to land benefitting over 130,000 individuals;
(k) Increased income to approximately 1,800 farmers across 50
communities due to the rangeland management component; and
(l) Increased incomes for over 15,000 households as a result of the
Indigenous Natural Products (``INP'') component of the Agriculture
Project.
3. Environmental and Social Accountability
All of the Projects will be implemented in compliance with the
[[Page 46732]]
MCC Environmental Guidelines, MCC's guidance on the integration of
gender in Program implementation delivered by MCC to Namibia or posted
on the MCC Web site (the ``MCC Gender Policy'') and the World Bank's
Operational Policy on Involuntary Resettlement in effect as of July
2007 (``OP 4.12''). Namibia will also ensure that the Projects comply
with all national environmental laws and regulations, licenses and
permits, except to the extent such compliance would be inconsistent
with this Compact. Namibia will: (a) Undertake and complete any
strategic environmental (and social) assessments (``SEA''),
environmental impact assessments (``EIA''), environmental assessments
(``EA''), environmental management plans (``EMP'') and resettlement
action plans (``RAP''), in form and substance satisfactory to MCC, and
as required under the laws of Namibia, the MCC Environmental
Guidelines, this Compact, the Program Implementation Agreement or other
supplement agreement or as otherwise required by MCC; (b) implement to
MCC's satisfaction environmental and social mitigation measures
identified in such assessments or plans; and (c) commit to fund
environmental mitigation, (including costs of resettlement) in excess
of MCC Funding not specifically provided for in the budget for any
Project.
Description of Projects
Set forth below is a description of each of the Projects that
Namibia will implement, or cause to be implemented, using MCC Funding
to advance the applicable Project Objective. In addition, specific
activities that will be undertaken within each Project (each, an
``Activity''), including sub-activities, are also described.
B. Education Project
1. Summary of Project and Activities
MCC Funding will be used to improve the effectiveness, efficiency
and quality of Namibia's education sector through systemic reforms and
critical near-term interventions that are consistent with the
objectives of Namibia's ETSIP Program (the ``Education Project'').
ETSIP is Namibia's 15-year sector-wide Education and Training Sector
Improvement Program, whose mission is to create a knowledge-based
economy through increasing the effectiveness, efficiency and quality of
Namibia's education and training system. Specifically, MCC Funding will
support key gaps within ETSIP, as well as fund complementary measures,
such as institutional strengthening, policy reform and targeted
technical assistance to ensure sustainable results.
The Activities that will be undertaken in furtherance of the
Education Project are:
(a) Improving the Quality of Education (the ``Education Quality
Activity''): This Activity involves the rehabilitation and renovation
of infrastructure (including teacher housing) and equipment in
approximately 47 primary and secondary schools, and the funding of
training programs for school administrators and teachers. Additionally,
this Activity includes funding for policy-relevant studies and
improvements in science and computer training facilities at teacher
training colleges. To reinforce Activity outcomes, Namibia will
implement teacher education reform guidelines.
(b) Improving Vocational and Skills Training (the ``Vocational and
Skills Training Activity''): With MCC Funding, the Vocational and
Skills Training Activity will assist with the establishment of a
National Training Fund (``NTF'') within the Namibia Training Authority
(``NTA''). MCC Funding will be used for the provision of technical
assistance for the NTF and the creation of a training levy system that
will sustain the NTF in the future. MCC Funding will also support
priority vocational and skills training areas (including but not
limited to tourism) selected under criteria developed by the NTA, which
criteria will be employed through a competitive grants program to be
implemented under this Activity. Namibia and MCA-Namibia commit to
achieving satisfactory progress during the implementation of MCC
supported training toward the effective operation of the NTF, which
will include: possessing a proper governance structure (including the
appointment of the NTA Board and the standing councils and committees),
the adoption of selection criteria for the award of grants, the
creation and implementation of the final sustainable levy structure,
and the deployment of NTF funding so that public entities will not be
privileged to the detriment of funding for private entities engaged in
training. Finally, the NTF will operate on a sustainable basis and
provide funding on a needs basis. MCC Funding will also be utilized (a)
for the construction or renovation of approximately nine COSDECs, and
(b) to support efforts so that the private-training industry responds
to the training demands of Namibia's market economy.
(c) Improving Access to and Management of Textbooks (the ``Textbook
Activity''): This Activity will focus on expanding access to and
improving the distribution and management of textbooks within primary
and secondary schools through operational support and reforms in the
textbook acquisition process designed to make the process more
transparent and competitive. This Activity will include funding for the
acquisition of science, math and English textbooks for grades 5--12 on
a national level and improving classroom use of textbooks. These
acquisitions will be conducted in two phases. The first phase will fill
actual gaps as determined by a textbook baseline study. The second
phase will support a pilot procurement program aimed at improving
textbook acquisition once MCC is satisfied that the supporting
documentation (implementation plan for the 2008 Textbook Policy) is
complied with such that there is a greater transparency and
accountability in the acquisition, distribution and storage of
textbooks. A system for monitoring textbook supply and demand will also
be implemented.
(d) Investing in Regional Study and Resource Centers (the ``RSRC
Activity''): This Activity will fund the construction of approximately
three regional study and resource centers (``RSRCs'') in underserved
areas that will improve community access to documentation, information
resources, training materials and programs, as well as study
facilities. Additionally, technical assistance and training will be
provided for RSRC staff. Namibia will ensure that the MCC constructed
RSRCs will offer expanded hours of operation with both day and evening
hours as provided for by the 1997 ``Information for Self-Reliance and
Development: A Policy Framework for Libraries and Allied Information
Agencies for Namibia.'' These extra hours will meet the needs of both
students and individuals that work during the day.
(e) Expanding and Improving Access to, Equity, and Sustainability
of Tertiary Education Finance (the ``Tertiary Education Finance
Activity''): This Activity's focus is expanding access to tertiary
finance. This will be achieved by providing technical assistance to the
Ministry of Education (``MoE'') to support its efforts to establish a
sustainable and widely accessible tertiary and technical education
finance system, including, inter alia, improved loan and recovery rates
and targeting of financing subsidies to those in need.
(f) Cross-Project Support: To further support the Activities of
this Project, MCC Funding will also be used to strengthen the HIV/AIDS
program within the MoE HIV/AIDS Management Unit, including development
of HIV/
[[Page 46733]]
AIDS awareness and prevention plans related to construction activities.
2. Beneficiaries \8\
---------------------------------------------------------------------------
\8\ Figures in this section are based on MCC's economic and
beneficiary analysis and are over a 20-year period.
---------------------------------------------------------------------------
Beneficiaries of the Education Quality Activity are primarily
students of the target schools, where 47 percent of beneficiary
students are estimated to live in households with consumption of less
than US$2 per day per person. The target schools currently enroll
approximately 18,400 students. Over the course of 20 years, the schools
will educate an estimated 41,700 primary and secondary students. In
addition, roughly a third of the teachers at the 47 schools receiving
teacher housing will realize a marked improvement in living conditions.
Overall, males and females will be exposed to the new schools in equal
proportion. Namibia has generally achieved gender parity within its
school system, although there are some differences between regions and
some school phases.
Based on MCA-N forecasts, the RSRCs would serve at least 8,000
individuals a year (about 10 percent of population of the towns where
the centers are located). There are over 120,000 learners within
regional reach of the centers who could benefit from the mobile
services provided from the centers and from visits to the centers.
These centers will be located in the principal towns of relatively poor
and under-served regions.
Beneficiaries of the COSDECs tend to be unskilled and/or unemployed
individuals, and program benefits are projected to benefit up to 2,800
COSDEC trainees per year (or 49,000 over 20 years).
The Textbook Activity will benefit the poorer segments of the
student population. The current need for textbooks is relatively higher
at schools in poor communities, since wealthier communities tend to
have better-financed and resourced schools.
The Tertiary Education Finance Activity will help Namibia to
achieve a reduction in defaults and an increase in the number of
qualified but disadvantaged individuals accessing loans and obtaining
tertiary education. The assistance will enable better targeting of
public funds to the most disadvantaged students, rather than those with
the ability to pay. Better cost recovery will also allow reduced direct
public spending on tertiary education loans.
3. Sustainability
In acknowledgement of the financial commitment required to address
essential maintenance needs of general schools, the MoE has embarked on
a major program of periodic maintenance and renovations for these
schools. A 2005 MoE policy directive has stipulated that 25 percent of
its development budget is set aside each year for maintenance (instead
of spending that portion on new construction), which is significantly
above the Ministry of Works recommended allocation of 5 percent.
Further, through ETSIP funds, MoE has committed to allocating a set
percentage towards school hostel maintenance.
At the local level, the MoE has also initiated a pilot program of
funding individual ``School Development Funds'' on a revolving basis,
which currently reaches an estimated 150 schools (or nearly 10 percent
of the school network). This program involves delegation of authority
to schools to undertake minor repairs, as a means of removing
responsibility for such activities from the Regional Education and
Ministry of Works' offices. To support effective use of the School
Development Funds, the MoE has begun to require that each school
prepare and submit three-year rolling maintenance plans.
Additionally, in light of the increasing expenditures for utilities
at the school level, the MoE has begun to further involve school
principals in the flow of information regarding costs and billing, and
has also introduced pilot programs in which schools are assuming
greater responsibility for certain recurring expenses.
In establishing ETSIP, Namibia has demonstrated a commitment to
undertaking substantial policy and institutional changes to catalyze
key improvements in the quality of Namibian education. Specifically,
Namibia has supported the efforts of the MoE to develop and implement
new policies, procedures, and guidelines affecting the delivery of pre-
primary to secondary education. Prominent institutional changes that
are being enacted by MoE are presented below. In addition, to provide
further support to the MoE in their long-term reform efforts, the MCC
will fund targeted training and technical assistance with key
institutional changes and policy implementation processes.
4. Environmental and Social Mitigation Measures
The Education Project is categorized under MCC's Environmental
Guidelines as a Category B Project due to the environmental and social
impacts that will result from certain activities.\9\ EAs and EMPs will
be developed to assess the environmental and social impacts of the
construction activities within the Education Quality, Vocational and
Skills Training, and RSRCs Activities. Any resettlement impacts
resulting from the Education Project will be identified and documented
in compliance with OP 4.12.
---------------------------------------------------------------------------
\9\ No environmental or social assessment or management planning
is required under MCC's Environmental Guidelines for the Textbook
Activity or the Tertiary Education Finance Activity.
---------------------------------------------------------------------------
The Education Quality Activity will include the implementation of a
general hygiene program at schools, which will be implemented by MoE.
Furthermore, under the Education Quality Activity, disability access
will be provided at the 47 general schools, which will reinforce the
existing MoE requirement for disability access in all new school
buildings. The Education Quality Activity will also benefit vulnerable
groups in Namibia, such as the San people.
The MoE HIV/AIDS Management Unit (``HAMU'') will receive targeted
management strengthening support, which will include activities
intended to mainstream HIV/AIDS education and training across all MoE
directorates, associated institutions, and planning activities. The
technical advisor working with HAMU will also develop and implement
HIV/AIDS awareness and prevention plans for school populations and
communities where each educational facility is located for the
Education Quality, Vocational and Skills Training, and RSRCs
Activities.
5. Donor Coordination
The first phase for the implementation of ETSIP (2006-2013) has
been programmed in detail. Through ETSIP, Namibia coordinates donors to
participate in a sector-wide program mainly through budget support and
extra-budgetary support, and the Activities of the Education Project
are drawn from this program. Namibia's pledged contribution to this
plan includes US$162 million over 2006-2020, or approximately US$13
million annually.
The Education Project will focus on certain aspects within ETSIP in
order to complement the implementation of the overall sector program,
and MCC has coordinated closely with the lead development partners in
this effort, namely the World Bank and EU. With respect to other ETSIP
development partners (who fund major projects rather
[[Page 46734]]
than provide general budget support), MCC has discussed project
activities with USAID, PEPFAR, Finland, Sweden, Norway, KfW of Germany,
and Luxembourg. For the NTF, MCC is cooperating specifically with the
Luxembourg Development Agency.
6. USAID
As a member of ETSIP, MCC and MCA-Namibia have had ongoing
discussions with USAID in the development of this Compact.
7. Policy, Legal and Regulatory Reforms
As noted above, Namibia's establishment of a fifteen-year national
reform program for the education sector demonstrates a commitment to
undertake substantial policy and institutional changes to catalyze key
improvements in the quality of Namibian education and skills
development. Specifically, Namibia has supported the efforts of the MoE
to develop and implement new policies, procedures, and guidelines
affecting the delivery of primary to secondary education. In addition,
to provide further support to the MoE in their long-term reform
efforts, MCC Funding will support targeted training and technical
assistance with key institutional changes and policy implementation
processes.
With respect to sector-specific policy reform commitments, Namibia
has made several notable advancements in education, encompassing:
Enactment of the National Training Fund within the NTA
under the Vocational Education and Training (``VET'') Act of 2008;
Establishing and staffing the NTA as provided for in the
VET Act;
Approval of a new National Textbook Policy and
implementation plan for primary and secondary schools (2008); and
Adoption of policies concerning the Colleges of Education
to allow for their semi-autonomy and introduction of performance-based
contracts.
In addition, Namibia will implement reforms at the teacher training
colleges aimed at: (a) Improving and adapting curriculum; (b) setting
fees and charges; (c) establishing policies and procedures to raise
outside funds; (d) setting admissions standards; (e) improving
screening of teacher applicants; and (f) improving management and
maintenance of facilities.
C. Tourism Project
1. Summary of Project and Activities
Consistent with Namibia's national development strategies and in
support of reform efforts already underway, MCC Funding will support
three priority Activities in the tourism sector (the ``Tourism
Project''): (a) Improve the management and infrastructure of Etosha
National Park (``ENP''); (b) enhance the marketing of Namibian tourism;
and, (c) develop the capacity of communal conservancies to attract
investments in ecotourism and capture a greater share of the revenue
generated by tourism in Namibia. Together, these Activities will
generate income and create employment opportunities for some of the
poorest populations in Namibia, while conserving the natural resources
that serve as the foundation for the tourism industry.
The Activities that will be undertaken in furtherance of the
Tourism Project are:
(a) Improved Management and Infrastructure of Etosha National Park
(the ``ENP Activity''): This Activity aims to improve the management
capacity of ENP, promote private sector investment in and around
Namibia's national parks, increase tourism revenue nationally, and
benefit rural communal conservancies. Achieving these goals requires
improving budget control and management of the park and increasing
private sector investment in joint-venture lodges around ENP and joint-
venture lodges and services within and near other national parks, among
other things (collectively, the ``Performance Targets''). MCC Funding
will support technical assistance in support of improved management and
a study of tourism carrying capacity and potential tourism investments
in and around ENP and other national parks in the north, as well as
investments in infrastructure for management centers and staff housing,
road building and maintenance and the purchase of game translocation
equipment.
(b) Marketing Namibian Tourism (the ``Marketing Activity''): The
Marketing Activity's aim is to increase tourist arrivals to Namibia by
expanding marketing to North American tourists, developing and
marketing local and regional tourism route packages, and developing a
fully interactive Web site. The development and marketing of local and
regional tourism route packages will focus on conservancy sites with
the explicit aim of directing anticipated increases in tourism visitors
to communal areas. MCC Funding will provide financing to support these
goals.
(c) Ecotourism Development in Conservancies (the ``Conservancy
Support Activity''): MCC Funding under this Activity will assist
Namibia in building conservancy capacity to protect its natural
resources, attract investment, and achieve financial sustainability so
that households in communal conservancy areas (or conservancies) can
receive a greater share of revenues. Based on individual conservancy
needs and demands, the Activity will provide a range of technical
assistance services and grant funding to approximately 31 high-tourism
potential conservancies. Such assistance and funding will help to
mitigate existing barriers to tourism enterprise investment and help
render the conservancies financially self-sustainable. In addition,
grant funding to promote joint-venture tourism enterprises between
conservancies and the private sector will be provided to a subset of
approximately 15 of the 31 conservancies.
2. Beneficiaries
The main benefits of the Tourism Project accrue through increased
tourism visits and value added to the Namibian economy. It is estimated
that the Marketing Activity will result in an additional 4,000 tourists
per year on average, which translates into an incremental (present)
value added by overseas tourists of approximately US$7 million (MCC
calculations based on data provided by National Tourism Board and 2004
parks valuation study by Turpie et al. 2004).
The distribution of benefits will track the general distribution of
income in Namibia, meaning approximately 23 percent of benefits will
accrue to the poor (source: MET July 2006). Primary benefit streams of
this Project include increased employment income, conservancy income
(to be reinvested or distributed to members), profits to joint venture
partners, and increased wildlife populations. There are 118,000
residents within the approximate 31 conservancies targeted for support.
A projected 7,000 individuals are to enjoy significantly higher income
as a result of full and part time employment generated through this
Project (MCC projection based upon 2007 conservancy data). The other
111,000 conservancy residents are expected to receive benefits through
small dividends or community-sponsored projects.
3. Sustainability
In 2007 Etosha National Park earned revenues of approximately US$3
million, mostly generated through daily usage fees collected at entry
gates. This revenue goes directly to the Ministry of Finance (``MoF'')
which then allocates approximately US$2.25 million back to the park to
cover operating costs. MoF retains about US$100,000 with the
[[Page 46735]]
remaining US$650,000 going into a collective Game Products Trust Fund
available to the national parks network. ENP is currently allocating a
disproportionately high percentage of its total operating budget to
staff and transport costs. The Tourism Project will assist ENP in
achieving a more balanced budget through growth in park visitors, an
increase in park usage fees, and concessions awarded to the private
sector. In addition, delegating more authority to ENP to manage its own
budget should increase revenue and productivity. Further, use of MCC
Funding for the ENP Activity will be contingent upon meeting the
applicable performance targets which include the development of an
integrated master plan for maintenance of all infrastructure and
equipment within ENP and demonstration of sufficient budget to
implement the plan.
The NTB receives an annual budget allocation of approximately
US$3.5 million and an additional US$1.5 million in revenue collected
through a 2 percent bed night levy charged for all overnight stays in
hotels or lodges. The Tourism Project, which is expected to increase
tourist arrivals through enhanced tourism marketing, will likely result
in an increase of revenue to NTB as bed night levies increase.
Financial sustainability of conservancies is a primary objective of
this Project as it will aim to develop the capacity of conservancies to
attract private sector investment and receive a greater share of the
tourism generated revenues. In 2007, benefits amounted to more than
US$1.68 million in gross revenues and US$1.26 million in wage income,
66 percent of which were directly derived from tourism enterprises and
represent a substantial increase in the period since 1994.
4. Environmental and Social Mitigation Measures
The Tourism Project is categorized under MCC's Environmental
Guidelines as a Category A project due to potential site-specific
environmental and social impacts in sensitive areas anticipated from
the construction of management centers in fragile ecosystems and in an
area that is the traditional homeland to vulnerable ethnic groups.
Tourism activities supported by the independent fund established under
the Conservancy Support Activity will be classified as a Category D
Activity under MCC's Environmental Guidelines.
To ensure the environmental sustainability of the Tourism Project
and mitigate any environmental and social impacts, an (EIA) and site-
specific EMP will be developed for the construction and rehabilitation
of management centers in ENP. EMPs will include actions to limit or
mitigate impacts of construction on fragile ecosystems within ENP,
ensure proper waste management, and prevent the spread of invasive
species. HIV/AIDS awareness and prevention programs for ENP staff and
construction contractors will also be developed and implemented. Any
resettlement impacts resulting from the Tourism Project will be
identified and documented in compliance with OP 4.12. MET will provide
alternative housing for the indigenous San peoples at Government-funded
official park employee housing sites or on lands transferred to the San
prior to any eviction and/or demolition of their existing housing at
Okakuejo. Transportation to the primary school at Ombika will be
provided for the children of ENP staff living at Okakuejo.
MCC Funding that supports grants to conservancies will comply with
MCC's Environmental Guidelines. Additionally, signed contracts between
communal conservancies and investors will include benefits sharing and
employment guarantees. Periodic and random audits of the performance of
a subset of grant funding recipients will be conducted to ensure
compliance with both MCC Environmental Guidelines and Namibian
environmental requirements. Furthermore, targeted training to ensure
that women and vulnerable groups have access to revenue-generating
opportunities will be included as part of the overall Conservancy
Support Activity. Disbursement of grant funds for wildlife relocation
or joint venture activities on conservancy or national park lands and
all activities supported by these funds shall comply with MCC's
Environmental Guidelines, whose terms shall also be included in any
manual produced for the distribution of such grant funds.
5. Donor Coordination
Multiple donors, most notably KfW, GTZ and UNDP have provided
technical assistance and funding for the infrastructure and capacity
building needs of the national parks. UNDP through its ``Strengthening
the Protected Areas Network'' (``SPAN'') Project, aims to improve
management effectiveness of Namibia's national system of protected
areas and includes the development of the new Concession Policy
(approved by Namibia in 2007), support to make this policy operational
and support for financial transformation of park management. These
activities will complement efforts to support and accelerate management
reform of ENP. MCC's technical assessment of the staff housing centers
was based on concept designs funded by UNDP. MCA-Namibia will
coordinate efforts with UNDP's SPAN Project and will work with MET to
implement the ENP Activity.
Multiple donors over the past ten years have provided technical
assistance to conservancies in building governance, sustainable natural
resource management, and tourism potential of existing and newly-formed
conservancies. The most important donor assistance has come from USAID
(through the recently completed LIFE-PLUS Project); the World Wildlife
Fund for Nature; the Swedish International Development Agency (SIDA);
Department for International Development (DFID); Danish International
Development Agency (DANIDA); and the World Bank (through the Integrated
Community-Based Ecosystem Management (ICEMA) Project). The Conservancy
Support Activity will build on this previous work and benefit from the
capacity and experience that has been developed. This Activity will
also support joint ventures on conservancies complementing current
efforts by the ICEMA Project.
6. USAID
USAID has been a key donor in community-based natural resources
management programs in Namibia. This Compact will build on the USAID-
funded LIFE PLUS project which includes a focus on conservancy support.
7. Policy, Legal and Regulatory Reforms
The Tourism Project aims to support and accelerate MET reforms in
the management of Namibia's national park system. A portion of MCC
Funding to support the ENP Activity will be contingent on meeting the
applicable performance targets, which focus on management reforms of
ENP in order to improve management. The Tourism Project will also
provide technical assistance to support MET's efforts to meet these
performance targets.
Namibia recently passed legislation to increase the bed night levy
to 2 percent, which creates a sustainable mechanism for continued
funding to NTB, especially as tourist arrivals grow. As tourism in
Namibia grows, the returns from investments by the private sector will
also grow and allow the private sector to play a greater role in
marketing Namibian tourism products.
To facilitate implementation of the Conservancy Support Activity,
Namibia will expedite the consideration and
[[Page 46736]]
approval of leasehold applications submitted by conservancies under
this Activity.
With respect to sector-specific policy reform commitments, Namibia
has made several recent notable advancements in tourism, encompassing:
Adoption of the Ministry of Environment and Tourism's
Strategic Plan that establishes objectives and targets for the tourism
sector in Namibia;
Adoption of Etosha National Park Management Plan and
Business Plan that establishes objectives and targets for ENP;
Passage of the Environmental Management Bill into law
establishing mandatory environmental review and mitigation procedures
in Namibia (2007); and
Policy on Tourism and Wildlife Concessions on State Land
(2007).
D. Agriculture Project
1. Summary of Project and Activities
MCC Funding will support investments aimed at achieving a
sustainable increase in the economic performance of the agricultural
sector (the ``Agriculture Project''). Included in this Project are
Activities that strengthen the land tenure system in the NCAs,
introduce improved rangeland management practices, and strengthen
animal health services, regulatory capacity, and livestock marketing
efficiencies, all of which are expected to increase productivity and
profitability of livestock production and sale. In addition, the
Project will increase the volume, quality and value-added of INPs for
export to regional and international markets.
The Activities to be undertaken in furtherance of the Agriculture
Project are:
(a) Land Access and Management (``Land Access and Management
Activity''): This Activity includes two sub-activities, one which
focuses on improving the communal land regime (the ``Communal Land
Support Activity'') and the second which focuses on introducing
effective community-based rangeland management practices (the ``CBLRM
Activity'').
Under the Communal Land Support Activity, MCC will fund: a
comprehensive public awareness and outreach campaign to educate the
public regarding their land rights; the streamlining of administrative
procedures; a systematic verification and registration process that
will result in the formalization of land rights in the NCAs; and
capacity building for Communal Land Boards and other land
administration institutions.
The CBLRM Activity aims to improve livestock quality and value by
supporting training in community-based management of rangeland
resources, herd management, and business management skills, including
specific outreach to women in small ruminant production and marketing,
among participating communities. In addition, these communities will be
eligible to receive limited rangeland management infrastructure (e.g.
water points, kraals) to support community rangeland management plans.
(b) Livestock Support (the ``Livestock Support Activity''): This
Activity involves: (i) Construction of approximately five veterinary
centers in the NCA and underserved areas, and rehabilitation of two
quarantine camps in the Caprivi region; (ii) implementation of a
traceability system to better meet the food safety requirements in
local and external markets; and (iii) establishment of a fund to invest
in post-farmgate improvements fostering greater efficiencies in
livestock marketing, transport, and quarantine (the ``Livestock Market
Efficiency Fund''). The Livestock Market Efficiency Fund will also
focus on diversifying market opportunities, including sanitary
regulatory capacity building in the NCA. An operations manual will be
developed by MCA-Namibia, and approved by MCC, which defines
procedures, eligibility and selection criteria for the Livestock Market
Efficiency Fund.
(c) Indigenous Natural Products (the ``INP Activity''): The INP
Activity's goal is to increase the volume, quality, and value addition
of the natural products that Primary Producer Organizations (``PPOs'')
collect and harvest, and to advance their operational and business
capacity. In addition, this Activity will improve market information to
PPO's, provide capacity building for the Indigenous Plant Task Team
(``IPTT'') and support the formulation of regulations, policies and
implementation plans to ensure the protection of indigenous knowledge.
MCA-Namibia will develop, subject to MCC approval, a grants-making
manual that will guide the review, selection and approval process of
grants to PPOs. This Activity includes a fund to support research,
testing and application of new innovations and services critical to the
INP industry's immediate, short-term and long-term competitiveness (the
``INP Innovation Fund''). MCA-Namibia will develop, subject to MCC
approval, an operations manual to guide the management of the INP
Innovation Fund.
2. Beneficiaries
Direct and indirect beneficiaries of the Livestock Support and the
Communal Land Support Activities are estimated at 135,000. In addition,
over 24,000 households will benefit from improved veterinary services,
and an estimated 1,800 households across 50 communities are anticipated
to benefit from the rangeland management program.
The INP Activity is expected to increase income for up to 15,000
primary producers, a majority of whom are poor and female and for whom
small increases in cash income are important supplementary household
income for up to 75,000 individuals.
3. Sustainability
The Land Access and Management Activity will directly support
sustainability through the strengthening of structures and systems of
land-related institutions that expedite land management processes at
various levels of government. This includes access to basic information
in the form of spatial data, topographic maps, and integrated
information systems on land holdings that assist in decision-making,
planning, and maintenance of proper registers of land rights. The
institutional sustainability of the Communal Land Support Activity will
depend upon the allocation of sufficient budgetary provisions and
technically-skilled staff to the CLBs in the NCAs.
The veterinary service centers that will be constructed as part of
the Livestock Support Activity are a public good which Namibia is
committed to fully fund in terms of staff and operational costs. The
Ministry of Agriculture's five-year budget plan provides for the
financial needs of these five centers.
After the initial MCC-funded tagging exercise, the Livestock
Traceability System will be a shared public-private cost whereby the
GRN and cattle owners cover the costs of tags and operations of the
information system. The GRN will cover the costs associated with
information entry into the traceability database.
The sustainability of the Livestock Market Efficiency Improvement
sub-activity will be achieved primarily by attracting and supporting
successful private sector solutions. Some of these may not be sustained
in the long term, but represent short-term measures that create
incentives for farmers to overcome post-farmgate costs/losses.
Potential long-term solutions include the establishment of more
strategic market infrastructure in conjunction
[[Page 46737]]
with the private sector and/or public sector.
The sustainability of the INP Activity is enhanced by the business
capacities that are developed among the PPO clients, SME processors,
traders, IPTT and the linkages they make with global buyers of raw,
semi-processed and finished INPs. Significant economic growth
opportunities for the Namibian INP industry have been documented by
both researchers and private firms.
4. Environmental and Social Mitigation Measures
The Agriculture Project is categorized under MCC's Environmental
Guidelines as a Category B Project due to potential site-specific
environmental and social impacts anticipated to result from land use
management decisions, the construction and operation of veterinary
centers and rehabilitation of quarantine camps. The Livestock Market
Efficiency Fund, which involves an intermediate funding facility, is
categorized under MCC's Environmental Guidelines as a Category D
Activity. The INP Activity is categorized under MCC's Environmental
Guidelines as a Category A Activity due to potentially significant
environmental impacts anticipated to result from increased harvesting,
utilization and export of species listed for protection under the
Convention on the International Trade of Endangered Species
(``CITES'').
The Land Access and Management Activity will involve the
development of EAs and EMPs to mitigate any adverse impacts.
Participatory community-level decision making processes will further
mitigate against adverse impacts. The Livestock Support Activity will
involve an EA to analyze the environmental and social impacts of the
veterinary centers, quarantine camps, and livestock marketing
facilities and include the development of site-specific EMPs. The EMPs
will define the regulations and specific training needed to govern the
use of Restricted Use Pesticides and other substances in compliance
with Namibia's Environmental Management Act and MCC Environmental
Guidelines. Any post-farmgate infrastructure built through the
Livestock Market Efficiency Improvement sub-activity will involve the
application of environmental screening and siting criteria and periodic
audits of the performance of infrastructure funding recipients. The INP
Activity will involve an EIA and an EMP to identify impacts and develop
appropriate mitigation measures. These measures will address any
potential environmental impacts that could result from the harvesting,
utilization and export of species listed for protection under CITES.
Any resettlement impacts resulting from the Agriculture Project
will be identified and documented in compliance with OP 4.12. In
particular, the Land Access and Management Activity will clarify
procedures to ensure that community decision making regarding
restricting access to land includes measures to mitigate adverse
impacts on livelihoods. HIV/AIDS awareness and prevention plans will be
developed under the Agriculture Project and implemented in relation to
construction activities. Furthermore, trafficking in persons for
livestock-related labor under the Livestock Support Activity will need
to be addressed through the development and implementation of anti-
trafficking measures. Gender integration plans will be developed to
provide design recommendations and to ensure women's participation
throughout implementation for all Activities with a particular focus on
including women in land and natural resources management decision
making. The Livestock Market Efficiency Fund and the INP Innovation
Fund will comply with MCC's Environmental Guidelines, whose terms will
be included in the grants-making manuals. Increased demand for INPs is
likely to provide significant income benefits to female-headed
households and vulnerable groups such as the San people.
5. Donor Coordination
The Activities of the Agriculture Project build on other donors'
previous initiatives in the livestock and land management sub-sectors.
The Livestock Activity will build upon previous and current donor
support to improve livestock marketing by communal farmers. The
Communal Land Support sub-activity will build upon other GRN and donor-
funded land reform initiatives to ensure coordination and avoid
duplication. Community-based Rangeland and Livestock Management sub-
activities build upon several successful community-led solutions to
natural resources management. Various donors have supported the
commercialization of natural products, namely USAID, the EU, the GEF
facility, the FAO, and Oxfam. Previous programs in this sector have
largely targeted the upper end of the value chain, and MCC Funding will
complement these efforts by working closely with the first-stage
primary producers.
6. USAID
MCC Funding will build on USAID-funded projects in natural
resources management, specifically the natural products sector.
7. Policy, Legal and Regulatory Reforms
Namibia has committed to adopt the ``Access to Genetic Resources
and Associated Traditional Knowledge'' draft bill into law, which shall
reflect, and not deviate in a significant manner from, the terms of
CITES.
E. Implementation Framework
1. Overview
Namibia will generally implement the Program through its existing
government systems. The National Planning Commission, a ministry-level
government agency charged with directing development resources, has
been confirmed as the designated accountable entity. As such, it will
have overall responsibility for the oversight, management and
implementation of the Program. A program implementation unit, within
NPC will serve as the management unit and will be responsible for the
day-to-day administration of this Compact. In addition, the Ministries
of Education; Agriculture, Water and Forestry; Environment and Tourism;
and Lands and Resettlement, and other governmental institutions, will
undertake certain aspects of the implementation of specific Projects to
ensure integration, coordination and sustainability of the MCC
investments.
2. MCA-Namibia
(a) Board of Directors.
(i) Composition.
The NPC Commissioners serve as the MCA-Namibia Board of Directors.
The Commission currently consists of 14 members, six of whom are
ministers specified by the NPC's enabling statute, with the remaining
members appointed by the President of Namibia. As the six specified
ministers do not include representatives from the MoE or the MET,
Namibia agrees that two of the appointed commission member slots will
be filled with representatives from these ministries. In addition,
Namibia has agreed that the remaining six appointed slots will be
filled, as their current terms expire, with civil society and private
sector representatives selected through a process that allows the
private sector and civil society groups whose interests relate to the
Projects to nominate potential candidates. The below ministries will be
represented by the Minister or a
[[Page 46738]]
delegate no lower than the Permanent Secretary level:
National Planning Commission (Chairperson is the Director
General)
Ministry of Agriculture, Water and Forestry
Ministry of Finance
Ministry of Trade and Industry
Ministry of Works and Transport
Ministry of Regional and Local Government, Housing and
Rural Development
Ministry of Education
Ministry of Environment and Tourism
The existing appointees to the NPC Commission, as of the date
hereof, are civil society and private sector members, selected by the
President based on their expertise and the sectors they represent are
listed below:
Representative of the Namibia Chamber of Commerce and
Industry
Founder, Desert Research Foundation of Namibia (DRFN)
Director of Primary Health Care, Ministry of Health and
Social Services
Deputy Director of Environmental Affairs, Ministry of
Environment and Tourism
President, National Union for Namibia Workers (NUNW)
Secretary General, National Youth Council of Namibia
Head of ETSIP, Ministry of Education
CEO, Federation of Namibia Tourism Associations (FENATA)
Since there is an equal number of Board members, for voting
purposes, the Director General will hold a tie-breaking vote.
(ii) Roles and Responsibilities. The roles and responsibilities of
the MCA-Namibia Board will be as set forth in the bylaws of MCA-Namibia
annexed to the Program Implementation Agreement (to the extent not
inconsistent with the NPC Act).
(b) Management Unit.
(i) Composition.
Appointed by the Director General of the NPC, with MCC's approval,
MCA-Namibia will be managed by a Chief Executive Officer (``CEO'').
Senior management will also include the following officers: Two Deputy
CEOs; Director of Administration and Finance; Project Directors for
Education, Tourism and Agriculture; Environment and Social Assessment
Director; Monitoring and Evaluation Director; Legal Advisor; and
Procurement Manager. In addition to other standard operational staff,
much of the technical expertise will come from the implementing
entities. MCA-Namibia will support limited staff within the Ministry of
Education, Ministry of Agriculture, Ministry of Environment and
Tourism, and the Namibia Tourism Board, who will support Compact
Activities while ensuring close integration with national priorities
and strategies.
(ii) Roles and Responsibilities.
The roles and responsibilities of the Management Unit will be set
forth in the bylaws of MCA-Namibia annexed to the Program
Implementation Agreement.
3. Stakeholder/Consultative Committees
MCA-Namibia will rely on existing consultative mechanisms for each
of the Projects. For the Education Project, this will be the ETSIP
Programme Coordinating Committee and the NTA Board. For the Tourism
Project, MCA-Namibia will consult with the Namibian Association for
Conservancy Support Organisations (NACSO). For the Agriculture Project,
consultations will be with the Technical Committee on Land and Social
Issues, the Veterinary Cordon Fence (VCF) Task Force, farmers'
organizations, and the Indigenous Plants Task Team (IPTT).
These committees include members from the public and private
sectors and civil society. They are broad-based and offer relevant
technical expertise plus a solid understanding of socio-economic and
environmental realities in Namibia.
The MCA-Namibia Project Directors will present Program-related
matters to these consultative bodies and report back to the MCA-Namibia
Board on the advice provided by them. The committees may also pro-
actively approach MCA-Namibia with their concerns related to the
Program design and implementation. Regular, periodic interaction
between MCA-Namibia and the consultative bodies is anticipated.
4. Implementing Entities
Subject to the terms and conditions of this Compact and any other
supplemental agreement entered into in connection with this Compact,
MCA-Namibia may engage one or more entities of Namibia to implement and
carry out any Project or Activity (or a component thereof) to be
carried out in furtherance of this Compact (each, an ``Implementing
Entity''). Namibia will ensure that MCA-Namibia 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, the MCA-Namibia officer to whom such
Implementing Entity will report and other appropriate terms and
conditions (each an ``Implementing Entity Agreement'').
5. Fiscal Agent
Unless MCC otherwise agrees in writing, Namibia will ensure that
MCA-Namibia engages a fiscal agent (a ``Fiscal Agent''), who will be
responsible for assisting MCA-Namibia with its fiscal management and
assure appropriate fiscal accountability of MCC Funding, and whose
duties will include those set forth in the Program Implementation
Agreement.
6. Procurement Agent
Unless MCC otherwise agrees in writing, Namibia will ensure that
MCA-Namibia engages one or more procurement agents (each, a
``Procurement Agent'') to carry out and certify specified procurement
activities in furtherance of this Compact. The roles and
responsibilities of each Procurement Agent will be set forth in the
Program Implementation Agreement or such agreement as MCA-Namibia
enters into with each Procurement Agent, which agreement shall be in
form and substance satisfactory to MCC. Any Procurement Agent will
adhere to the procurement standards set forth in the MCA-Namibia
Procurement Rules and ensure procurements are consistent with the
procurement plan adopted by MCA-Namibia pursuant to the Program
Implementation Agreement, unless MCC otherwise agrees in writing.
Annex II Multi-Year Financial Plan Summary
This Annex II to this Compact (the ``Financial Plan Annex'')
summarizes the Multi-Year Financial Plan for the Program.
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 PIA, Namibia 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 Namibia'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 thirty (30) days prior to the anniversary of the
date on which this Compact enters 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
[[Page 46739]]
adjustments to the Multi-Year Financial Plan.
2. Government LMIC Contribution
During the Compact Term, Namibia shall make contributions, relative
to its national budget and taking into account prevailing economic
conditions, as are necessary to carry out Namibia's responsibilities
and obligations under Section 2.6(a) of this Compact. These
contributions may include in-kind and financial contributions
(including obligations of Namibia on any debt incurred toward meeting
these contribution obligations). In connection with this obligation
Namibia has developed a budget over the five year term of the Compact
to complement MCC Funding through budget allocations to its sectors in
education, tourism and agriculture. Namibia anticipates making
contributions from its national budget of approximately US$165,483,800
over the Compact Term. Such contribution shall be in addition to
Namibia's spending allocated toward such Project Objectives in its
budget for the year immediately preceding the establishment of this
Compact. Namibia's contribution remains subject to any legal
requirements in Namibia for the budgeting and appropriation of such
contribution, including approval of Namibia's annual budget by its
Parliament. The Parties may set forth in appropriate supplemental
agreements certain requirements regarding this Government contribution,
which requirements may be conditions precedent to the Disbursement of
MCC Funding.
[GRAPHIC] [TIFF OMITTED] TN11AU08.000
Annex III Description of Monitoring and Evaluation Plan
This Annex III (this ``M&E Annex'') generally describes the
components of the Monitoring and Evaluation Plan (``M&E Plan'') for the
Program.
1. Overview
MCC and Namibia will formulate, agree to and Namibia will
implement, or cause to be implemented, an M&E Plan that specifies (a)
how progress toward the Program goal and objectives will be monitored,
(``Monitoring Component''), (b) process and timeline for the monitoring
of planned, ongoing, or completed Project Activities to determine their
efficiency and effectiveness, and (c) a methodology for assessment and
rigorous evaluation of the outcomes and impact of the Program
(``Evaluation Component''). Information regarding the Program's
performance, including the M&E Plan, and any amendments or
modifications thereto, as well as progress and other reports, will be
made publicly available on the Web site of MCA-Namibia and elsewhere.
2. Program Logic
The M&E Plan will be built on a series of logic models which
illustrate how the Program, Projects and Project Activities contribute
to poverty reduction and economic growth in Namibia. The chart below
provides a visual representation of each Project's objectives and
outcome statement that this Compact will seek to achieve. In sum, the
goal of the Program is to contribute to economic growth and
[[Page 46740]]
poverty reduction among targeted beneficiaries primarily in the
northern area of Namibia.
The following chart stating the Project objectives and the outcomes
illustrates how each of the Projects addresses poverty reduction in the
applicable sectors:
[GRAPHIC] [TIFF OMITTED] TN11AU08.001
3. Monitoring Component
To monitor progress toward the achievement of the impact and
outcomes, the Monitoring Component of the M&E Plan will identify (a)
the indicators, (b) the definitions of the indicators, (c) the sources
and methods for data collection, (d) the frequency for data collection,
(e) the party or parties responsible, and (f) the timeline for
reporting on each indicator to MCC.
Further, the Monitoring Component will track changes in the
selected indicators for measuring progress towards the achievement of
the objectives during the Compact Term. Before the initiation of
implementation activities for each Project, MCA-Namibia will collect
baseline data on the selected indicators or verify already collected
baseline data.
(a) Indicators. The M&E Plan will measure the results of the
Program using quantitative, objective and reliable data
(``Indicators''). Each indicator will have benchmarks that specify the
expected value and the expected time by which that result will be
achieved (``Target''). The M&E Plan will be based on a logical
framework approach that classifies indicators as goal, outcome, output,
and process milestones. The Compact Goal indicators (``Goal
Indicators'') will measure the general contribution of the Projects to
the national economic growth and poverty reduction. Second, the Project
objective and outcome (``Project Objective and Outcome Indicators'')
will measure the final result of each Project. Third, Output Indicators
and process milestones (``Project Activity Indicators'') will measure
the early and intermediate results of the Project Activities. For each
Project Objective, Outcome, and Activity Indicator, the M&E Plan will
define a strategy for obtaining and verifying the value of such
indicator prior to undertaking any activity that affects the value of
such Indicator (such value, a ``Baseline''). All indicators will be
disaggregated by gender, income level and age, and beneficiary types to
the extent practicable. Subject to prior written approval from MCC,
MCA-Namibia may add indicators or refine the definitions and Targets of
existing indicators.
(i) Goal. The M&E Plan will contain the Goal Indicators listed in
the table below specifying the definition, baseline, and end of Compact
Target for each.
Goal Level
----------------------------------------------------------------------------------------------------------------
Result Indicator Definition of indicator Baseline Target
----------------------------------------------------------------------------------------------------------------
Economic Growth and Reduction Poverty Rate \10\.... Relative poverty: Percent of 28% 20%
of Poverty. households devoting more than
60 percent of total household
income to food expenses.\11\
----------------------------------------------------------
Extreme poverty: Percentage of 4% 2%
household devoting more than
80 per cent of total income to
food expenses.\12\
[[Page 46741]]
Unemployment Rate Percentage of economically 35% 33.6%
\13\. active population who are
currently unemployed.
---------------------------------------------------------------------------------
Average Income per The average annual household US$6,031 TBD
Household.\14\ consumption expenditures in
cash, in-kind and non
consumption expenditures such
as savings and investment and
other nonconsumption
disbursements (corrected for
CPI).
----------------------------------------------------------------------------------------------------------------
(ii) Project Objective, Outcome and Activity Indicators. The M&E
Plan will contain Project Objective, Outcome, and Activity Indicators
which will measure the results for the 3 (three) main Projects and are
listed below with their definitions, baseline and targets. Prior to the
initiation of implementation of a Project Activity, MCC and MCA-Namibia
will agree on a final set of Activity Indicators. The M&E Plan will
contain these indicators or will be amended to contain these
indicators.
---------------------------------------------------------------------------
\10\ Definitions of Relative and Extreme poverty inline with
that of the NDP 3.
\11\ Baseline from the National Development Plan 3 (NDP 3).
Target taken from the NDP 3 and is thus inline with National
development objectives and goals.
\12\ Baseline from the NDP 3.
\13\ Target taken from the National Development Plan 3 (NDP 3)
and is thus inline with National development objectives and goals.
\14\ Namibia Household Income and Expenditure Survey 2003/2004
Preliminary Report, March 2006. The stated average annual adjusted
income per household is N$42,129 with per capita income of N$8,556
and adjusted per capita income of N$10,357. The baseline figure uses
an average NAD-US$ exchange rate for 2003/04 of N$6,985 : US$1.
Project: Education 15
Objective Level
----------------------------------------------------------------------------------------------------------------
Result Indicator Definition of indicator Baseline Year 5
----------------------------------------------------------------------------------------------------------------
Enhanced learning and cognitive Transition Rate of 5th Number of 5th grade students who 1,528 1,554
development of students. and 8th Grade Students. pass the national transitional
examinations for 5th grades.16
-------------------------------------------------------
Number of 8th grade students who 2,982 3,018
pass the national transitional
examinations for 8th grades.17
-------------------------------------------------------
National Pass Rate of Percentage of learners achieving 43% 19 53%
JSC and NSSC Learners D or better in mathematics,
in the Basic Subjects life science, physical science,
of the DNEA and English as a second
Examination.18 language on JSC (grade 10).
Percentage of learners achieving 31% 41%
D or better in mathematics,
life science, physical science,
and English as a second
language on NSSC Ordinary Level
exams (grade 12).
Increased supply level of Employment rate of Percentage completing COSDEC who 49% 70%
skills demanded by employers. COSDEC participants in are full time or self employed
the national in the sector of studies within
industries. the national industries one
year after completion of
required course of studies in
the COSDEC program.
Employment rate of Percentage who are full time or 40% 75%
other vocational skill self-employed one year after
development programs completion of vocational skill
in national industries. training programs.
----------------------------------------------------------------------------------------------------------------
Outcome Level
----------------------------------------------------------------------------------------------------------------
Definition of
Result Indicator indicator Baseline Year 5
----------------------------------------------------------------------------------------------------------------
Activity: Improving the Quality of General Education
----------------------------------------------------------------------------------------------------------------
Enhanced learning and cognitive DNEA examination results (MCC Percentage of 43% 53%
development of students at MCC target schools).20 learners at
target schools. MCC target
schools
achieving D or
better in
mathematics,
life science,
physical
science, and
English JSC
exam (grade
10).21
----------------------------------------------------------------------------------------------------------------
Transition rate of 5th and 8th grade Percentage of 5th and 5th 1,528 1,554
students (MCC target schools). 8th grade students
passing the national
transition examination
in MCC target schools.
8th 2,982 3,018
------------------------------------------------------------------------------------------------------------
[[Page 46742]]
Survival Rate.............................. Percentage of 5th, 8th 22 5th 94.1% 94.3%
and 11th grade students
who have remained in
each phase of school
since first grade.
23 8th 80.7% 84.6%
24 11th 38.6% 40.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Repetition Rate............................ Percentage of 1st, 5th, 25 1st 19.7% 19.5%
and 8th grade students
who have dropped out or
repeated grade levels.
26 5th 22.8% 22.6%
27 8th 21.1% 21.0%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Activity: Improving Vocational and Skills Training
----------------------------------------------------------------------------------------------------------------
Enhanced workforce skills........ Completion rate of COSDEC Percentage of 70% 85%
participants.28 total
participants
who completed
required
course work
within the
specified time
period of the
program.
------------------------------------------------------------------------------
Completion rate of participants Percentage of TBD 80%
of other Vocational skill total
training programs. participants
of other
Vocational
skill training
who completed
required
activities
within the
specified time
period of the
program.
------------------------------------------------------------------------------
COSDEC enrollment Rate........... Total COSDEC 1,150 3,000
participant
enrollment
within a year.
------------------------------------------------------------------------------
Vocational Skills training Total MCC 1,670 2,171
enrollment rate.29 assisted
Vocational
Skill training
program
enrollment
within a year.
------------------------------------------------------------------------------
Annual Revenue to NTF............ Funds US$0 US$1,600,000
contributed to
NTF from
Employers
(Private
sector
training levy
and other
sources) (2008
US$).
----------------------------------------------------------------------------------------------------------------
Activity: Upgrading Access to and Management of Adequate Textbooks
----------------------------------------------------------------------------------------------------------------
Gaps filled in the current % of schools meeting the target Total number of TBD TBD
provision of books. of Textbook Students ratio.30 schools as a
percentage of
the total
number of
national
schools who
are meeting
the targeted
student
textbook ratio
of 1:2.
----------------------------------------------------------------------------------------------------------------
Efficiency in textbook Textbook Inventory Turning % of textbook TBD 95%
procurement and delivery. Rate.31 inventory
delivered on
time to
schools out of
the total
textbooks
procured for a
given year.
----------------------------------------------------------------------------------------------------------------
Activity: Investment in Regional Study and Resource Centers
----------------------------------------------------------------------------------------------------------------
Increased use of information for Resource and learning materials The total 33,921 84,406
formal education, informal loaned out per year.32 number of
learning, business, and research. library books
loaned out per
year in the
MCA assisted
libraries.
------------------------------------------------------------------------------
Total number of visits to new Total number of 31,000 100,000
RSRCs. annual visits
to 3 new MCC-
funded RSRCs.
----------------------------------------------------------------------------------------------------------------
Activity: Expanding and Improving Access to Tertiary Finance
----------------------------------------------------------------------------------------------------------------
Increased financing available for % of qualified financial aid Percentage of 20% 60%
tertiary education. applicants receiving loans for the total
the school year. qualified
financial aid
applicants
enrolled in
tertiary
institutions
who actually
received
students loans
for the school
year.
------------------------------------------------------------------------------
Repayment rates 33............... Percentage of 20% 75%
loans awarded
under the new
system being
paid on time.
----------------------------------------------------------------------------------------------------------------
Project: Tourism
Objective Level
----------------------------------------------------------------------------------------------------------------
Result Indicator Definition of indicator Baseline Year 5
----------------------------------------------------------------------------------------------------------------
Growth of tourism industry Annual total tourist Total number of tourist 864,451 1,057,000
targeting poor beneficiaries. arrivals in Namibia arrivals recorded per annum
by origin.34 (excluding South African and
Angolan multi purpose business-
tourism visits).
Total Tourism Total direct employment created 21,508 24,573
Industry within the tourism industry by
employment.35 travel and tourism companies
excluding government agencies
and supplier company
employments.
Increased Household Increases in income of HH in 27,885 41,827
(HH) income.36 targeted communal
conservancies areas.
----------------------------------------------------------------------------------------------------------------
[[Page 46743]]
Activity: Improving Management and Infrastructure in Etosha National Park
----------------------------------------------------------------------------------------------------------------
Improved management and Total ENP revenue 37. Annual total revenue generated 2,963,538 4,142,529
management efficiency of the by ENP including gate receipts
ENP. and concession fees (2007 US$).
Park attendance 38... The annual total park 200,000 293,000
attendance for ENP based on
park entry records.
----------------------------------------------------------------------------------------------------------------
Activity: Marketing Namibia in Tourism
----------------------------------------------------------------------------------------------------------------
Increased awareness of Number of tourist Total number of tourist 19,342 40 30,947
Namibia's tourism products. arrivals from new arrivals recorded for new
targeted markets. targeted markets (target
expressed as a percent change
over the baseline) 39.
----------------------------------------------------------------------------------------------------------------
Activity: Ecotourism Development for Communal Conservancies
----------------------------------------------------------------------------------------------------------------
Conservancy benefits Fraction of conservancy 41 34% 75%
to households and revenues paid out as household
community. income/dividends plus amounts
invested in community projects
(schools, clinics, social
services) and new enterprise
expansion. Figure is the
average across all MCC-
supported conservancies.
----------------------------------------------------------------------------------------------------------------
Increased commercial capacity Total revenue to The total revenue generated by 2,952,175 4,149,422
of conservancies. targeted registered all conservancies supported by
conservancies.42 MCC--including in-kind
revenues (target expressed as
a percent change over the
baseline, 2008 US$).
----------------------------------------------------------------------------------------------------------------
Conservancy sustainability............. The number of Of 17 established 44 9 16
conservancies conservancies
achieving a positive (registered before
net income 43. Aug 1, 2003).
------------------------------------------------
Of 14 beginning 45 0 7
conservancies
(registered after
Aug 1, 2003).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Project: Agriculture
Objective Level
----------------------------------------------------------------------------------------------------------------
Result Indicator Definition of indicator Baseline Year 5
----------------------------------------------------------------------------------------------------------------
Increased health of cattle.... Mortality Rate 46.... Percentage of the total 0.03% TBD
population that dies of
diseases per annum NCAs.
----------------------------------------------------------------------------------------------------------------
Enhanced and efficient Annual Turnover 47 Number of cattle slaughtered in 19,000 28,000
marketing system. (formal Market). formal markets (public and
private abattoirs) in the NCAs.
----------------------------------------------------------------------------------------------------------------
Increased INP growth with Percent increase in Percent increase in INP revenue na 50%
benefits accruing to INP revenue. from base year (corrected for
households. CPI inflation) among members
of PPOs targeted for
assistance.
----------------------------------------------------------------------------------------------------------------
Outcome Level
----------------------------------------------------------------------------------------------------------------
Result Indicator Definition of indicator Baseline Year 5
----------------------------------------------------------------------------------------------------------------
Activity: Livestock Activity
----------------------------------------------------------------------------------------------------------------
Provision of High Quality CBPP vaccination Rate Percentage of livestock in the 78% 95%
Veterinary Services. 48. NCAs vaccinated against CBPP.
Frequency of NCA Average number of service 1 2
homestead/village contacts per household per
visits by DVS. year by DVS.
----------------------------------------------------------------------------------------------------------------
Efficient Traceability system Total livestock Total recorded livestock TBD TBD
movement movements through transit
transactions holdings such as market places
recorded.49 and exhibition sites.
[[Page 46744]]
Number of livestock Number of livestock tagged in 0 1,170,000
tagged in the NCAs. the NCAs under MCC mass
tagging (cumulative) and
subsequent owner tagging.
----------------------------------------------------------------------------------------------------------------
Enhanced efficiency of Post farmgate cost The cost saving to herders from 0 50 50%
livestock quarantine and reduction. improvements in the efficiency
marketing. of marketing, transport, and
quarantining of livestock.
----------------------------------------------------------------------------------------------------------------
Activity: Land Access and Management Activity
----------------------------------------------------------------------------------------------------------------
Community adoption of Value of livestock Average percent difference in 19% 50%
Rangeland Management sold by communities total value of livestock sold
techniques and methodologies. in formal markets.51 in previous year between
target communities adopting
techniques and comparison
communities.
Adoption rate of Percentage of targeted 0% 40%
improved rangeland communities practicing
management appropriate rangeland
methodology and management techniques and
techniques. methodology.
----------------------------------------------------------------------------------------------------------------
Activity: Indigenous Natural Products Activity
----------------------------------------------------------------------------------------------------------------
Market access for INPs....... Percentage of Percentage of targeted PPOs 0 67%
targeted PPOs certified for organic
granted production and fair trade
certification. status.
----------------------------------------------------------------------------------------------------------------
(b) Data Collection and Reporting. The M&E Plan will establish
guidelines for data collection and reporting, and identify the
responsible parties. Compliance with data collection and reporting
timelines will be conditions for disbursements for the relevant Project
Activities as set forth in the Program Implementation Agreement. The
M&E Plan will specify the data collection methodologies, procedures,
and analysis required for reporting on results at all levels. The M&E
Plan will describe any interim MCC approvals for data collection,
analysis, and reporting plans.
---------------------------------------------------------------------------
\15\ Education indicators with target from ETSIP will be
adjusted in accordance with the annual ETSIP reviews.
16 In the absence of disaggregated data specific for
the 47 target schools the baseline represents the national average
for all schools offering grade 5, calculated for 36 schools, out of
the target 47 that offers grade 5. To be revised once disaggregated
data for the 47 target schools is available. Target is based on an
average annual rate of increase of 0.329% per annum for transition
of 5th graders. To be revised once disaggregated data for the 47
target schools is available. Data from EMIS 2007.
17 In the absence of disaggregated data specific for
the 47 target schools the baseline represents the national average
for all schools offering grade 8, calculated for all 47 schools
offering grade 8. To be revised once disaggregated data for the 47
target schools is available. Target is based on an average annual
rate of increase of 0.241% per annum for transition of 8th graders.
To be revised once disaggregated data for the 47 target schools is
available. Data from EMIS 2007.
18 ETSIP target for 2011 = 52.1%. ETSIP targets are
being reviewed so this target will be revised once ETSIP data are
available (July 08).
19 ETSIP target for 2011 = 62.9%. ETSIP targets are
being reviewed so this target will be revised once ETSIP data
available (July 08).
20 This is representative of the national average of
all schools. A baseline will be established for the MCC target
schools.
21 MCC target school figures only include junior
secondary as most MCC target schools only offer this level to date.
As more schools begin offering senior secondary, an indicator may be
added for the NSSC.
22 Target based on annual average rate of change (for
2000-2006) of 0.04%; to be revised against revised ETSIP targets.
Data from EMIS 2007.
23 Target based on annual average rate of change (for
2000-2006) of 0.94%; to be revised against revised ETSIP targets.
Data from EMIS 2007.
24 Target based on annual average rate of change (for
2000-2006) of 0.68%; but to be revised against revised ETSIP
targets. Data from EMIS 2007.
25 Target based on annual average rate of change (for
2000-2006) of 0.341%; but to be revised against revised ETSIP
targets. Data from EMIS 2007.
26 Target based on annual average rate of change (for
2000-2006) of 0.15%; but to be revised against revised ETSIP
targets. Data from EMIS 2007.
27 Target based on annual average rate of change (for
2000-2006) of 0.132%; but to be revised against revised ETSIP
targets. Data from EMIS 2007.
28 ETSIP indicator with a baseline target for 2008.
29 Year 5 Target is based on a 30% increase of the
baseline.
30 Baseline to be determined during MCC funded
textbook survey. Target of 1 textbook per every 2 students inline
with ETSIP target and can be amended against revised ETSIP targets.
31 Baseline to be determined during MCC funded
textbook survey.
32 Baseline from MoE. Year 5 target is based on an
annual increase of 20%.
33 Baseline based on loan repayment rate for 2007.
34 NTB data.
35 Baseline data is based on preliminary figures from
Namibia's 2007 Tourism Satellite Accounts (TSA). The year 5 target
is based on projected 2.7% annual growth.
36 Baseline is based on average income to conservancy
households for the 31 MCC target conservancies at an average US$-NAD
exchange rate for 2007 of US$1 : NAD 7.195. The target is projected
as 50% growth of the baseline. To be confirmed before Compact entry
into force.
37 Baseline based on CPI adjusted total revenue for
2007 at an average US$-NAD exchange rate for 2007 of US$1 : NAD
7.195.
38 Baseline data from MET. Year 1 target is the same
as the baseline as MCA interventions will only impact from Year 2.
The year 5 target is based on annual 10% growth. The target will be
revised based on the outcome of the MCC-funded Carrying Capacity
study for ENP.
39 Baseline refers only to USA arrivals.
40 The year 5 Target is based on a 60% increase from
the baseline.
41 Baseline is an estimate. Actual figure will be
determined before Compact entry into force.
42 Baseline data is based on 23 registered
conservancies, out of the 31 proposed for MCC support, that generate
revenue (US$1 = N$ 7.195). The remaining 8 conservancies are
emerging with high potential for revenue generation. The baseline is
corrected for the 2007 average CPI.
43 The calculation of profit (profit = revenue -
cost) will include all relevant costs such as in kind services from
donors (i.e. negotiating assistance and auditing services) and
amortization of capital investment.
44 Baseline is an estimate. Actual figure will be
determined before Compact entry into force.
45 Baseline is an estimate. Actual figure will be
determined before Compact entry into force.
46 Baseline is based on total mortality as percentage
of total estimated cattle population in the NCA. Data will be
revised against the outcome of the MCC funded livestock survey.
47 Baseline data from Meatco. Target is projected at
8% annual growth.
48 Baseline data from Directorate of Veterinary
Services (DVS), MAWF. Target is projected at 4% annual growth.
49 Baselines and targets to be determined during the
MCC-funded livestock survey.
50 Estimation from MCC ERR calculation.
51 Baseline calculated as percent difference in the
average value of cattle sold in 2006 and 2007. Data from Meatco.
---------------------------------------------------------------------------
(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 will 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
[[Page 46745]]
consistency of performance data, across different implementation units
and reporting institutions. Such data quality reviews also will serve
to identify where those levels of quality are not possible, given the
realities of data collection.
(d) Management Information System. The M&E Plan will describe the
information system that will be used to collect data, store, process
and deliver information to relevant stakeholders in such a way that the
Program information collected and verified pursuant to the M&E Plan is
at all times accessible and useful to those who wish to use it. The
system development will take into consideration the requirement and
data needs of the components of the Program, and will be aligned with
MCC existing systems, other service providers, and ministries.
(e) Role of MCA-Namibia. The monitoring and evaluation of this
Compact spans across three discrete Projects and will involve a variety
of governmental, non-governmental, and private sector institutions.
MCA-Namibia holds full responsibility for implementation of the M&E
Plan. MCA-Namibia will oversee all Compact-related monitoring and
evaluation activities conducted by each of the Projects, ensuring that
data from all implementing entities is consistent, and accurately
reported and aggregated into regular Compact performance reports as
described in the M&E Plan.
4. Evaluation Component
The Evaluation Component of the M&E Plan will contain three types
of evaluations: Impact Evaluations, Project Performance Evaluations,
and Special Studies. Plans for each type of evaluation will be
finalized before MCC Disbursement for specific Program or Project
activities. The Evaluation Component of the M&E Plan will describe the
purpose of the evaluation, methodology, timeline, required MCC
approvals, as well as the process for collection and analysis of data
for each evaluation. The results of all evaluations will be made
publicly available in accordance with MCC Guidelines for Monitoring and
Evaluation Plans.
(a) Impact Evaluation: The M&E Plan will include a description of
the methods to be used for impact evaluations and plans for integrating
the evaluation method into project design. Based on in-country
consultation with stakeholders, the following strategies outlined below
were jointly determined as having the strongest potential for rigorous
impact evaluation. The M&E Plan will further outline in detail these
methodologies. Final impact evaluation strategies are to be jointly
determined before the approval of the M&E Plan and before entry into
force of this Compact. The following is a summary of the potential
impact evaluation methodologies:
(i) Agriculture Project: The CBLRM Activity will be subjected to
rigorous impact evaluation. The evaluation will address the
effectiveness of the Activity in improving herders' value, grade and
incomes. As the Activity is envisioned as a pilot, the evaluation will
contribute to the justification for scaling up the Activity through
arrangements outside this Compact. The evaluation will include
measurement of outcomes of communities outside the target communities.
The appropriate rigorous methodology will be used.
(ii) Education Project: The purpose of the impact evaluation will
be to assess the effectiveness of the Education Quality Activity
through: (1) The quantity of education services provided; (2) the
quality of education services provided; and (3) learning outcomes. The
evaluation will include measurements taken from non-MCC target schools
to establish a comparison group.
The evaluation may also address the Textbook Activity and other
activities that may improve school supervision.
(b) Projects Evaluation. The M&E Plan will make provision for
project level evaluations. MCA-Namibia, with the prior written approval
of MCC, will engage independent evaluators to design the Project
Performance Evaluations to be conducted at the end of each Project or
MCC may engage the independent evaluators. The Project Performance
Evaluations must at a minimum (i) evaluate the efficiency and
effectiveness of the Project Activities; (ii) estimate, quantitatively
and in a statistically valid way, the causal relationship between the
expected impact (to the extent possible), the intended outcomes and
outputs; (iii) determine if and analyze the reasons why this Compact
Goal, Program Objective and Project Objectives 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 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-Namibia, such an
independent evaluator will review the plans for the collection of
baseline data and, as applicable, plans for selecting comparison
groups.
(i) Special Studies. The M&E Plan will include a description of the
methods to be used for Special Studies funded through this Compact or
by MCC.
Plans for conducting the Special Studies will be determined jointly
between MCA-Namibia and MCC before the approval of the M&E Plan and
before entry into force of this Compact. The M&E Plan will identify and
make provision for any other special studies, ad hoc evaluations, and
research that may be needed as part of the monitoring and evaluating of
this Compact. Either MCC or MCA-Namibia may request special studies or
ad hoc evaluations of Projects, Project Activities, or the Program as a
whole prior to the expiration of the Compact Term. When MCA-Namibia
engages the evaluator, the evaluator will be an externally contracted
and independently source selected by MCA-Namibia. The aforementioned
engagement will be subject to the prior written approval of MCC,
following a tender in accordance with the MCA-Namibia Procurement
Rules, and in accordance with any relevant Implementation Letter or
supplemental agreement. Contract terms must ensure non-biased results
and the publication of results.
(c) Request for Ad Hoc Evaluation or Special Study: If MCA-Namibia
requires an ad hoc independent evaluation or special study at the
request of Namibia for any reason, including for the purpose of
contesting an MCC determination with respect to a Project or Project
Activity or to seek funding from other donors, no MCC Funding or MCA-
Namibia resources may be applied to such evaluation or special study
without MCC's prior written approval.
5. Other Components of the M&E Plan
In addition to the Monitoring and Evaluation Components, the M&E
Plan will 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 cost estimate for all components of the M&E
Plan.
(b) Assumptions and Risks. Any assumption and risk external to the
Program that underlies the accomplishment of the Objectives and Project
Activity Outcomes. However, such assumptions and risks will not excuse
Parties' performance unless otherwise expressly agreed to in writing by
all Parties.
6. 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, will be in accordance with
this
[[Page 46746]]
M&E Annex, PIA, and any other relevant supplemental agreement.
Annex IV Conditions to Disbursement of Compact Implementation Funding
Capitalized terms used in this Annex IV and not defined in this
Compact will have the respective meanings assigned thereto in the
Program Implementation Agreement.
1. Conditions to Each CIF Disbursement
(a) Delivery by Namibia (or MCA-Namibia) to MCC of the following
documents, in form and substance satisfactory to MCC:
(i) a complete, correct and fully executed Disbursement Request for
the relevant Disbursement Period, together with the Periodic Reports
covering such Disbursement Period.
(ii) any proposed waiver or deferral (together with a
justification) of any condition to Disbursement.
(iii) a completed Detailed Financial Plan covering Compact
Implementation Funding.
(b) Prior to the deposit of any Disbursement of Compact
Implementation Funding (each a ``CIF Disbursement '') into any
Permitted Account in accordance with an approved Disbursement Request,
MCC will have received satisfactory evidence of the establishment of
the Permitted Accounts.
(c) The monitoring and evaluation officer for MCA-Namibia has been
selected and approved by MCC and remains engaged, or in the event a
position is vacant, MCA-Namibia is actively recruiting for the
position.
(d) The Fiscal Agent Agreement shall be executed and effective and
the Fiscal Agent shall be mobilized.
(e) The Procurement Agent Agreement shall be executed and effective
and the Procurement Agent shall be mobilized.
(f) The Bank Agreement shall be executed and effective and the Bank
shall be mobilized.
(g) If applicable, the tax agreements described in Section 2.8(b)
of this Compact shall be executed and effective, together with any
laws, rules or regulations necessary to give effect thereto.
(h) MCC is satisfied, in its sole discretion, that (i) the
activities being funded by such CIF Disbursement are necessary,
advisable or otherwise consistent with the goal of facilitating the
implementation of the Compact and will not violate any applicable law
or regulation; (ii) no material default or breach of any covenant,
obligation or responsibility by Namibia, MCA-Namibia or any Namibia
entity has occurred and is continuing under this Compact or any
supplemental agreement; (iii) there has been no violation of, and the
use of requested funds for the purposes requested will not violate, the
limitations on use or treatment of MCC Funding set forth in this
Compact, including under Section 2.7; (iv) any Taxes paid with MCC
Funding through the date 90 days prior to the start of the applicable
Disbursement Period have been reimbursed by Namibia in full in
accordance with Section 2.8 of this Compact; and (v) Namibia has
satisfied all of its payment obligations, including any insurance,
indemnification, tax payments or other obligations, and contributed all
resources required from it, under this Compact and any supplemental
agreement.
(i) Namibia has provided MCC with evidence that the regulations
exempting the Projects and contractors to be engaged to work on the
Projects from the provisions of the Architects and Quantity Surveyors
Act 13 of 1979 and Engineering Profession Act 18 of 1986 have been
passed and are in full force and effect, in each case in accordance
with their terms.
(j) For any CIF Disbursement occurring after this Compact has
entered into force: MCC is satisfied, in its sole discretion, that (i)
MCC has received the reports then due from any technical consultants
(including environmental auditors engaged by MCA-Namibia for any
Project Activity), and all such reports are in form and substance
satisfactory to MCC; (ii) the Implementation Plan Documents submitted
to MCC are current and updated and are in form and substance
satisfactory to MCC, and there has been satisfactory progress on the
components of the Implementation Plan for any relevant Projects or
Project activities related to such CIF Disbursement; (iii) there has
been satisfactory progress on the M&E Plan for the Program, relevant
Project or Project Activity and substantial compliance with the
requirements of such M&E Plan (including the targets set forth therein
and any applicable reporting requirements set forth therein for the
relevant Disbursement Period); (iv) there has been no material negative
finding in any financial audit report delivered in accordance with this
Compact and Audit Plan, for the prior two quarters (or such other
period as the Audit Plan may require); (v) MCC does not have grounds
for concluding that any matter certified to it in the related MCA
Disbursement Certificate, Fiscal Agent Disbursement Certificate or
Procurement Agent Certificate is not as certified; and (vi) if any of
the officers or key staff of MCA-Namibia have been removed or resigned
and the position remains vacant, MCA-Namibia is actively engaged in
recruiting a replacement.
(k) MCC has not determined, in its sole discretion, that an act,
omission, condition, or event has occurred that would be the basis for
MCC to suspend or terminate, in whole or in part, MCC Funding in
accordance with Section 5.1 of this Compact.
(l) Namibia has provided MCC with evidence, in form and substance
satisfactory to MCC, that the program implementation unit that will
serve as the management unit of MCA-Namibia has been established within
NPC and has been exempted from the application of the Public Service
Commission Act 13 of 1995.
Annex V Definitions
Additional Representative has the meaning provided in Section 4.2.
Activity has the meaning provided in Part A of Annex I.
Agriculture Project has the meaning provided in Part D of Annex I.
Audit Guidelines has the meaning provided in Section 3.8(a).
Baseline has the meaning provided in paragraph 3(a) of Annex III.
CBLRM Activity has the meaning provided in Part D of Annex I.
CEO has the meaning provided in of Part E of Annex I.
CIF Disbursement has the meaning provided in paragraph 1(b) of
Annex IV.
CLBs has the meaning provided in Part A of Annex I.
CITES has the meaning provided in Part D of Annex I.
Communal Land Support Activity has the meaning provided in Part D
of Annex I.
Compact has the meaning provided in the Preamble.
Compact Goal has the meaning provided in Section 1.1.
Compact Implementation Funding has the meaning provided in Section
2.2(a).
Compact Records has the meaning provided in Section 3.7(a).
Compact Term has the meaning provided in Section 7.4.
Conservancy Support Activity has the meaning provided in Part C of
Annex I.
COSDECs has the meaning provided in Part A of Annex I.
Covered Provider has the meaning provided in Section 3.7(c).
Disbursement has the meaning provided in Section 2.4.
EA has the meaning provided in Part A of Annex I.
Education Project has the meaning provided in Part B of Annex I.
Education Quality Activity has the meaning provided in Part B of
Annex I.
[[Page 46747]]
EIA has the meaning provided in Part A of Annex I.
EMP has the meaning provided in Part A of Annex I.
ENP has the meaning provided in Part C of Annex I.
ENP Activity has the meaning provided in Part C of Annex I.
Evaluation Component has the meaning provided in paragraph 1 of
Annex III.
Excess CIF Amount has the meaning provided in Section 2.2(d).
Financial Plan Annex has the meaning provided in Annex II.
Fiscal Agent has the meaning provided in Part E of Annex I.
Goal Indicators has the meaning provided in paragraph 3(a) of Annex
III.
GRN means the Government of the Republic of Namibia.
HAMU has the meaning provided in Part B of Annex I.
Implementation Letter has the meaning provided in Section 3.5.
Implementing Entity has the meaning provided Part E of Annex I.
Implementing Entity Agreement has the meaning provided in Part E of
Annex I.
Indicators has the meaning provided in paragraph 3(a) of Annex III.
INP has the meaning provided in of Part A of Annex I.
INP Activity has the meaning provided in Part D of Annex I.
INP Innovation Fund has the meaning provided in Part D of Annex I.
Inspector General has the meaning provided in Section 3.8(a).
IPTT has the meaning provided in Part D of Annex I.
Land Access and Management Activity has the meaning provided in
Part D of Annex I.
Livestock Market Efficiency Fund has the meaning provided in Part D
of Annex I.
Livestock Support Activity has the meaning provided in Part D of
Annex I.
M&E Annex has the meaning provided in Annex III.
M&E Plan has the meaning provided in Annex III.
Marketing Activity has the meaning provided in Part C of Annex I.
MCA Act has the meaning provided in Section 2.2(a).
MCA-Namibia has the meaning provided in Section 3.2(b).
MCA-Namibia Procurement Rules has the meaning provided in Section
3.6.
MCC has the meaning provided in the Preamble.
MCC Environmental Guidelines has the meaning provided in Section
2.7(c).
MCC Funding has the meaning provided in Section 2.3.
MCC Gender Policy has the meaning provided of Part A of Annex I.
MCC Web site has the meaning provided in Section 2.7.
MoE has the meaning provided in of Part B of Annex I.
MoF has the meaning provided in of Part C of Annex I.
Monitoring Component has the meaning provided in paragraph 1 of
Annex III.
Multi-Year Financial Plan Summary has the meaning provided in
paragraph 1 of Annex II.
Namibia has the meaning provided in the Preamble.
NCAs has the meaning provided of Part A of Annex I.
NPC has the meaning provided in Section 3.2(b).
NPC Act has the meaning provided in Section 3.2(b).
NTA has the meaning provided of Part B of Annex I.
NTF has the meaning provided in Part B of Annex I.
OMB has the meaning provided in Section 3.8(b).
OP 4.12 has the meaning provided Part A of Annex I.
Party and Parties has the meaning provided in the Preamble.
Performance Targets has the meaning provided in Part C of Annex I.
Permitted Account has the meaning provided in Section 2.4.
PPOs has the meaning provided Part D of Annex I.
Principal Representative has the meaning provided in Section 4.2.
Procurement Agent has the meaning provided in of Part E of Annex I.
Program has the meaning provided in the Preamble.
Program Funding has the meaning provided in Section 2.1.
Program Implementation Agreement or PIA has the meaning provided in
Section 3.1.
Program Objective has the meaning provided in Section 1.2.
Project Activity Indicators has the meaning provided in paragraph
3(a) of Annex III.
Project Objective(s) has the meaning provided in Section 1.3.
Project Objective Indicators has the meaning provided in paragraph
3(a) of Annex III.
Project(s) has the meaning provided in Section 6.2(b).
Provider has the meaning provided in Section 3.7(c).
RAP has the meaning provided in Part A of Annex I.
Resettlement means involuntary resettlement, specifically (a) the
involuntary taking of land resulting in (i) relocation or loss of
shelter; (ii) loss of assets or access to assets; or (iii) loss of
income sources or means of livelihood, whether or not the affected
persons must move to another location; or (b) the involuntary
restriction of access to legally designated parks and protected areas
resulting in adverse impacts on the livelihoods of the displaced
persons.
RSRC Activity has the meaning provided in Part B of Annex I.
RSRCs has the meaning provided in Part B of Annex I.
SEA has the meaning provided Part A of Annex I.
SPAN has the meaning provided in Part C of Annex I.
Target has the meaning provided in paragraph 3(a) of Annex III.
Taxes has the meaning provided in Section 2.8(a).
Tertiary Education Finance Activity has the meaning provided in
Part B of Annex I.
Textbook Activity has the meaning provided in Part B of Annex I.
Tourism Project has the meaning provided in Part C of Annex I.
US$ means United States Dollars.
USG means the Government of the United States of America.
VET has the meaning provided in Part B of Annex I.
Vocational and Skills Training Activity has the meaning provided in
Part B of Annex I.
Annex VI MCA-Namibia Procurement Rules
Part 1. Conduct and Administration of Procurement
The principles, rules and procedures agreed herein (``Procurement
Rules'' or ``Rules'') shall govern the conduct and administration by
MCA-Namibia of the procurement of the goods, works, consultant and non-
consultant services that need to be acquired to implement the projects
funded under the Compact (``Project'' or ``Projects'').
Section 1. A. Procurement Rules: Procurement of Goods, Works and Non-
Consultant Services
I. Introduction
Purpose
1.1 The principles, rules and procedures set out in this Section
1.A of these Rules shall govern the conduct and administration of the
procurement of the goods, works and non-consultant services \1\ that
need to be acquired to
[[Page 46748]]
implement the Projects under the Compact.
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\1\ References to ``goods'' and ``works'' in these Rules include
related services such as transportation, insurance, installation,
commissioning, training, and initial maintenance. ``Goods'' includes
commodities, raw materials, machinery, equipment, and industrial
plants. The provisions of these Rules also apply to services which
are bid and contracted on the basis of performance of a measurable
physical output, such as drilling, mapping, and similar operations.
The Rules governing consultant services are set out below at Section
1.B.
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General Considerations
1.2.1 MCA-Namibia is responsible for implementing the Projects, and
therefore for selecting the contractors and suppliers, and awarding and
subsequently administering the contracts. While in practice the
specific procurement rules and procedures to be followed in the
implementation of a Project depend on the circumstances of the
particular case, the following four considerations (the ``Procurement
Principles'') are agreed to generally guide the application of these
Rules: \2\
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\2\ These four principles are set out in Section 3.6 of the
Compact.
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(a) Open, fair and competitive procedures used in a transparent
manner to solicit, award and administer contracts to procure goods,
works and non-consultant services;
(b) Solicitations for goods, works and non-consultant services
shall be based upon a clear and accurate description of the goods,
works or non-consultant services to be acquired;
(c) Contracts shall be awarded only to qualified and capable
suppliers and 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
(d) 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, works and non-consultant services.
1.2.2 MCA-Namibia shall ensure that all the procurements for goods,
works and non-consultant services in furtherance of the Compact and
funded in whole or in part, directly or indirectly, with MCC funding
shall comply with these Procurement Principles.
1.3 A competitive bidding process (``Competitive Bidding'' or
``CB'') shall serve as the standard for all procurements for all MCC-
funded goods, works, and non-consultant services conducted in
accordance with these Rules as set out in Sub-Section 1.A.II below,
except in those instances where MCC and MCA-Namibia agree to pursue
other methods of procurement.
Sub-Section 1.A.III describes these other methods of procurement
and the circumstances under which their application would be more
appropriate. The particular methods to be followed for procurements
under the Compact shall be set out in Procurement Plans approved by
MCC.
1.4 Reserved.
Applicability of Section 1.A of These Rules
1.5 The procedures outlined in this Section 1.A of these Rules
apply to all contracts for goods, works and non-consultant services
funded by MCC under the Compact.\3\
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\3\ This includes those cases where MCA-Namibia employs an
independent procurement agent, but excludes tenders awarded by MCC
under its own procurement rules.
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Eligibility
1.6 To foster competition MCC permits firms and individuals from
almost all countries \4\ to offer goods, works, and non-consultant
services for MCC-funded Projects. Any conditions for participation
shall be limited to those that are essential to ensure the firm's
capability to fulfill the contract in question.
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\4\ Firms and individuals from any country subject to sanction
or restriction by law or policy of the United States are not
eligible to compete for MCC-funded contracts. See Paragraph 1.8(e)
of Section 1.A of these Rules.
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1.7 In connection with any MCC-funded contract, MCA-Namibia shall
not deny pre- or post-qualification to a firm for reasons unrelated to
its capability and resources to perform the contract successfully; nor
shall MCA-Namibia disqualify any bidder for such reasons. Consequently,
MCA-Namibia should carry out due diligence on the legal, technical and
financial qualifications of bidders to be assured of their capabilities
in relation to the specific contract.
1.8 As exceptions to the foregoing:
(a) Firms of a country or goods manufactured in a country may be
excluded if, (i) as a matter of law or official regulation, the
Republic of Namibia prohibits commercial relations with that country,
provided that MCC is satisfied that such exclusion does not preclude
effective competition for the supply of goods or works required, or
(ii) by an act of compliance with a decision of the United Nations
Security Council taken under Chapter VII of the Charter of the United
Nations, the Republic of Namibia prohibits any import of goods from, or
payments to, a particular country, person, or entity. Where the
Republic of Namibia prohibits payments to a particular firm or for
particular goods by such an act of compliance, that firm may be
excluded.
(b) A firm which has been engaged to provide consultant services
for the preparation or implementation of a Project, and any of its
affiliates, shall be disqualified from subsequently providing goods,
works, consultant or non-consultant services resulting from or directly
related to the firm's consultant services for such preparation or
implementation. This provision does not apply to the various firms
(consultants, contractors, or suppliers) which together are performing
the contractor's obligations under a turnkey or design and build
contract.\5\
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\5\ See Paragraph 2.5 of Section 1.A of these Rules.
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(c) Government-owned enterprises in the Republic of Namibia may
participate if they are receiving no state subsidy and can demonstrate
that they do not receive a cross-subsidy of income as a result of
statutory powers.\6\
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\6\ Other than Force Account units, as permitted under Paragraph
3.8 of Section 1.A of these Rules.
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(d) A firm declared ineligible through MCC's Excluded Parties
Verification procedures located at http://www.mcc.gov/documents/mcc-ppg-eligibilityverification.pdf shall be ineligible to be awarded an
MCC-funded contract. This would also remove from eligibility any
procurement from a country or from a firm that is organized in or has
its principal place of business or a significant portion of its
operations in any country that is subject to sanction or restriction by
law or policy of the United States.\7\
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\7\ As of July 2008, this list includes Cuba, Iran, North Korea,
Sudan and Syria.
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Advance Contracting and Retroactive Financing
1.9 The process of identifying and selecting contractors for the
provision of goods, works or non-consultant services to implement
projects funded under the Compact before the Compact enters into force
is referred to as advance contracting. Similarly, payments made under a
contract that is signed prior to the Compact entering into force for
which MCA-Namibia would seek reimbursement from MCC is known as
retroactive financing. MCA-Namibia will not engage in any advance
contracting or be entitled to any retroactive financing, without the
prior approval of MCC.
Joint Ventures
1.10 Any firm may bid independently or in joint venture confirming
joint and several liability, with domestic firms and/or with foreign
firms, but MCC does not accept conditions of bidding which require
mandatory joint ventures or other forms of mandatory association
between firms.
[[Page 46749]]
MCC Review
1.11 MCC shall be entitled to review MCA-Namibia procurement
procedures, documents, bid evaluations, award recommendations, and
contracts to ensure that the procurement process is carried out in
accordance with the agreed procedures. These review procedures are
described in Attachment 1 of these Rules.
Misprocurement
1.12 MCC does not fund expenditures for goods, works and non-
consultant services which have not been procured in accordance with the
agreed provisions as detailed in the Compact, these Rules and the
approved Procurement Plans.\8\ In such cases, MCC will declare
misprocurement, and may cancel that portion of the Compact allocated to
the goods, works or non-consultant services that have been misprocured
if corrective measures satisfactory to MCC are not taken. MCC may, in
addition, exercise other remedies provided for under the Compact. Even
once the contract is awarded after obtaining an approval from MCC, MCC
may still declare misprocurement if it concludes that the approval was
issued on the basis of incomplete, inaccurate, or misleading
information furnished by MCA-Namibia or the terms and conditions of the
contract had been modified without MCC approval.
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\8\ See Paragraphs 1.16.1, 1.16.2 and 1.16.3 of Section 1.A of
these Rules.
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References to MCC
1.13 MCA-Namibia shall use the following language when referring to
MCC in procurement documents:
The United States of America, acting through the Millennium
Challenge Corporation (``MCC'') and the Republic of Namibia (the
``Government'') have entered into a Millennium Challenge Compact for
Millennium Challenge Account assistance to help facilitate poverty
reduction through economic growth in the Republic of Namibia (the
``Compact'') in the amount of [Insert amount of Compact] US$ (``MCC
Funding''). MCA-Namibia on behalf of the Government intends to apply
a portion of the proceeds of MCC Funding to eligible payments under
this contract. Payments by MCA-Namibia will be subject, in all
respects, to the terms and conditions, including restrictions on the
use of MCC Funding, of the Compact. No party other than the
Government and MCA-Namibia shall derive any rights from the Compact
or have any claim to the proceeds of MCC Funding.
Fraud and Corruption
1.14 MCC requires that all beneficiaries of MCC funding, including
MCA-Namibia and any bidders, suppliers, contractors, and subcontractors
under any MCC-funded contracts observe the highest standards of ethics
during the procurement and execution of such contracts. In pursuance of
this policy, the following provisions shall apply.
(a) For the purposes of these provisions, the terms set forth below
are defined as follows:
(i) ``Corrupt practice'' means the offering, giving, receiving, or
soliciting, directly or indirectly, of anything of value to influence
the actions of a public official (including MCA-Namibia and MCC staff
and employees of other organizations taking or reviewing selection
decisions) in the selection process or in contract execution or the
making of any payment to any third party, in connection with or in
furtherance of a contract, in violation of (aa) the United States
Foreign Corrupt Practices Act of 1977, as amended (15 U.S.C. 78a et
seq.) (``FCPA''), or any other actions taken that otherwise would be in
violation of the FCPA if the FCPA were applicable, or (bb) any
applicable law in the Republic of Namibia;
(ii) ``Fraudulent practice'' means any act or omission, including
any misrepresentation, in order to influence (or attempt to influence)
a selection process or the execution of a contract to obtain a
financial or other benefit, or to avoid (or attempt to avoid) an
obligation;
(iii) ``Collusive practice'' means a scheme or arrangement between
two or more parties, with or without the knowledge of MCA-Namibia,
designed to establish prices at artificial, noncompetitive levels or to
otherwise deprive MCA-Namibia of the benefits of free and open
competition;
(iv) ``Coercive practice'' means impairing or harming or
threatening to impair or harm, directly or indirectly, persons or their
property, to influence their participation in a procurement process, or
affect the execution of a contract;
(v) ``Obstructive practice'' means:
(aa) Destroying, falsifying, altering or concealing of evidence
material to the investigation or making false statements to
investigators in order to impede an investigation into allegations of a
corrupt, fraudulent, coercive, collusive, or prohibited practice; and
threatening, harassing, or intimidating any party to prevent it from
disclosing its knowledge of matters relevant to the investigation or
from pursuing the investigation; and
(bb) Acts intended to impede the exercise of the inspection and
audit rights of MCC provided under the Compact; and
(vi) ``Prohibited practice'' means any action that violates Section
E (Compliance with Anti-Corruption Legislation), Section F (Compliance
with Anti-Money Laundering Legislation) and Section G (Compliance with
Terrorist Financing Statutes and Other Restrictions) of the ``General
Provisions Annex'' that will be made a part of MCC-funded contracts and
may be found on the MCC Web site at http://www.mcc.gov/guidance/compact/general_provisions.pdf.
(b) MCA-Namibia will reject a bid (and MCC will deny approval of a
proposal for contract award) if it determines that the bidder
recommended for award has, directly or through an agent, engaged in
corrupt, fraudulent, collusive, coercive, obstructive or prohibited
practices in competing for the contract in question.
(c) MCC and MCA-Namibia have the right to sanction a bidder,
supplier, contractor, or subcontractor, including declaring such party
ineligible, either indefinitely or for a stated period of time, to be
awarded an MCC-funded contract if at any time either MCA-Namibia or MCC
determines that the bidder, supplier, contractor, or subcontractor has,
directly or through an agent, engaged in corrupt, fraudulent,
collusive, coercive, obstructive or prohibited practices in competing
for, or in executing, such a contract.
(d) MCC and MCA-Namibia have the right to require that a provision
be included in solicitation documents and in MCC-funded contracts
requiring a bidder, supplier, contractor, or subcontractor to permit
MCA-Namibia, MCC, or any designee of MCC, to inspect its accounts,
records and other documents relating to the submission of a bid or
performance of a MCC-funded contract and to have them audited by
auditors appointed by MCC or MCA-Namibia with the approval of MCC.
(e) MCC has the right to cancel the portion of MCC funding
allocated to a contract if it determines at any time that
representatives of a beneficiary of the MCC funding engaged in corrupt,
fraudulent, collusive, coercive, obstructive or prohibited practices
during the selection process or the execution of a MCC-funded contract,
without MCA-Namibia having taken timely and appropriate action
satisfactory to MCC to remedy the situation.
1.15 To the extent required by Namibian law, MCA-Namibia shall
introduce, into bid forms for large contracts funded by MCC, an
undertaking of the bidder to observe, in competing for and executing a
contract, the country's laws against fraud and
[[Page 46750]]
corruption (including bribery), as listed in the solicitation
documents. In the event such an undertaking is not required by Namibian
law, MCA-Namibia may introduce the undertaking with the approval of
MCC.
Procurement Plan
1.16.1 MCA-Namibia shall prepare periodic procurement plans, that
are updated at least semi-annually, for acquiring goods, works and non-
consultant services needed to implement the Compact (each a
``Procurement Plan''). Each Procurement Plan shall be adopted by the
governing body of MCA-Namibia and shall be submitted to MCC for its
approval. Each Procurement Plan,\9\ typically covering a six (6) month
period, (a) lists the particular contracts for the goods, works, and/or
non-consultant services required to implement the Compact for the
period covered in such Procurement Plan; (b) identifies the proposed
method of procurement for such contracts as determined according to
these Rules; and (c) sets forth the estimated value for each contract.
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\9\ When consultant services also need to be procured, the
Procurement Plan must also include such procurements in accordance
with the requirements at Section 1.5 Par. 1.24 of these Rules.
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1.16.2 MCA-Namibia shall ensure that all goods, works and non-
consultant services shall be procured using the procurement method
approved in each Procurement Plan. Compliance, satisfactory to MCC,
with the approved Procurement Plan shall be a condition precedent to
MCC Disbursements or payments.
1.16.3 MCA-Namibia shall not initiate any procurement action that
is a substantial deviation \10\ from the applicable adopted and
approved Procurement Plan without the prior approval of MCC. If MCA-
Namibia determines that such a deviation is necessary or appropriate,
MCA-Namibia shall submit a request to MCC for its approval of an
amended Procurement Plan. If approved by MCC, MCA-Namibia shall comply
with any instructions contained in the MCC approval, including any
publication requirements. Any substantial deviation from a Procurement
Plan as approved and adopted shall be submitted to the governing body
of MCA-Namibia for adoption of the amended Procurement Plan.
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\10\ A ``substantial deviation'' is a change that adds a
procurement action or actions that have a cumulative value of
$10,000 or more, changes the procurement method, significantly
increases or decreases the budget, or increases the budget
allocations above the threshold for the designated method of
procurement or selection procedure.
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II. Competitive Bidding
A. General
Introduction
2.1 The objective of Competitive Bidding, as described in these
Rules, is to provide all eligible prospective bidders \11\ with timely
and adequate notification of MCA-Namibia's requirements and an equal
opportunity to bid for the required goods, works and non-consultant
services.
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\11\ See Paragraphs 1.6, 1.7 and 1.8 of Section 1.A of these
Rules.
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Type and Size of Contracts
2.2 The solicitation documents shall clearly state the type of
contract to be entered into and contain the proposed contract
provisions appropriate for the type of contract to be used.
Reimbursable cost contracts are acceptable to MCC only in exceptional
circumstances such as conditions of high risk or where costs cannot be
determined in advance with sufficient accuracy. Such contracts shall
include appropriate incentives to limit costs and shall reference MCC
Cost Principles (``MCC Cost Principles'') found at the MCC Web site,
http://www.mcc.gov. Requirements contracts, indefinite delivery-
indefinite quantity (``IDIQ'') contracts and blanket purchase
agreements may also be used.
2.3 The size and scope of individual contracts will depend on the
magnitude, nature, and location of the Project. For Projects requiring
a variety of goods and works, separate contracts generally are awarded
for the supply and/or installation of different items of equipment and
plant \12\ and for the works.
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\12\ For purposes of these Rules, ``plant'' refers to installed
equipment, as in a production facility.
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2.4 For a Project requiring similar but separate items of goods or
works, bids may be invited under alternative contract options that
would attract the interest of both small and large firms which could be
allowed, at their option, to bid for individual contracts (slices) or
for a group of similar contracts (package). All bids and combinations
of bids shall be received by the same deadline and opened and evaluated
simultaneously so as to determine the bid or combination of bids
offering the lowest evaluated cost to MCA-Namibia.\13\
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\13\ See Paragraphs. 2.49-2.54 of Section 1.A of these Rules for
the bid evaluation procedures.
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2.5 In certain cases a turnkey contract may be required under which
the design and engineering, the supply and installation of equipment,
and the construction of a complete facility or works are provided under
one contract. Alternatively, MCA-Namibia may remain responsible for the
design and engineering, and invite bids for a single responsibility
contract for the supply and installation of all goods and works
required for the Project component. Design and build, and management
contracting contracts may also be appropriate.\14 \
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\14\ Also see Paragraphs 3.14 and 3.15 of Section 1.A of these
Rules for performance-based contracting.
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Two-Stage Bidding
2.6 In the case of turnkey contracts or contracts for large complex
facilities or works of a special nature, or complex information and
communication technology, it may be undesirable or impractical to
prepare complete technical specifications in advance. In such a case, a
Two-Stage Bidding procedure may be used, under which first un-priced
technical proposals on the basis of a conceptual design or performance
specifications are invited, subject to technical as well as commercial
clarifications and adjustments, to be followed by amended bidding
documents \15\ and the submission of final technical proposals and
priced bids in the second stage.
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\15\ In revising the bidding documents in the second stage MCA-
Namibia should respect the confidentiality of the bidders' technical
proposals used in the first stage, consistent with requirements of
transparency and intellectual property rights.
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Notification and Advertising
2.7 On at least a semi-annual basis, MCA-Namibia shall publicize
the procurements planned for the upcoming period as identified in the
adopted Procurement Plan, which was approved by MCC (each a ``General
Procurement Notice''). The General Procurement Notice shall be in a
form acceptable to MCC and include information derived from the
Procurement Plan and the name, telephone (or fax) number, and e-mail
and postal address of MCA-Namibia agent responsible for procurement and
the address of the Web site(s) where Specific Procurement Notices will
be posted. If known, the scheduled date for availability of
solicitation documents for each procurement (including prequalification
or bidding documents) should be indicated. Such solicitation documents
shall not be released to the public earlier than the date of
publication of the General and Specific Procurement Notices. The
General Procurement Notice shall be advertised in a manner to provide
reasonable notice of planned procurements to potential suppliers and
contractors. Advertisement of the
[[Page 46751]]
General Procurement Notice shall include posting in English at MCA-
Namibia's Web site (or such other appropriate Web site designated by
MCA-Namibia and approved by MCC), the Development Gateway Market Web
site at www.dgmarket.com (``dgMarket'') and the United Nations
Development Business online Web site at www.devbusiness.com (``UNDB
Online'').\16\ MCA-Namibia shall also publish the General Procurement
Notice in a newspaper of wide circulation in the Republic of Namibia
and in such other media outlets as appropriate or as requested from
time to time by MCC.
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\16\ UNDB is a publication of the United Nations. Subscription
information is available from: Development Business, United Nations,
GCPO Box 5850, New York, NY 10163-5850, USA (Web site: http://www.devbusiness.com; e-mail: [email protected]); Development
Gateway Market is an electronic portal of Development Gateway
Foundation, 1889 F Street, NW., Washington, DC 20006, USA (Web site:
http://www.dgmarket.com).
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2.8 Invitations to prequalify or to bid, as the case may be, shall
be advertised as Specific Procurement Notices (each, a ``Specific
Procurement Notice''). For contracts for Goods and Non-consulting
services valued at or over US $200,000 and contracts for Works valued
at or over US $1,000,000, such invitations shall be published in at
least one newspaper of national circulation in the Republic of Namibia,
posted on MCA-Namibia's Web site (or such other appropriate Web site
designated by MCA-Namibia and approved by MCC) and at dgMarket Web site
and UNDB Online. Publication in local print and broadcast and other
national and international media is encouraged as long as the posting
does not pre-date the required postings.
For contracts for Works valued at or over US$200,000 and under
US$1,000,000, such invitations shall be published in at least one
newspaper of national circulation in the Republic of Namibia and posted
on MCA-Namibia's Web site (or such other appropriate Web site
designated by MCA-Namibia and approved by MCC). The text of the notice
may be subject to prior approval by MCC. Notification shall be given in
sufficient time to enable prospective bidders to obtain
prequalification or bidding documents and prepare and submit their
responses taking into consideration the estimated value of the contract
and period of advance notice given with the General Procurement
Notice.\17\
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\17\ Also see Paragraph 2.44 of Section 1.A of these Rules.
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Prequalification of Bidders
2.9 Prequalification is usually necessary for large or complex
works, or in any other circumstances in which the high costs of
preparing detailed bids could discourage competition, such as custom
designed equipment, industrial plants, specialized services, some
complex information and technology and contracts to be let under
turnkey, design and build, or management contracting. This also ensures
that invitations to bid are extended only to those who have adequate
capabilities and resources. Prequalification shall be based entirely
upon the capability and resources of prospective bidders to perform the
particular contract satisfactorily, taking into account their (a)
experience and past performance on similar contracts, (b) capabilities
with respect to personnel, equipment, and construction or manufacturing
facilities, and (c) financial position.
2.10 The invitation to prequalify for bidding on specific contracts
or groups of similar contracts shall be advertised as described in
Paragraphs 2.7 and 2.8 above. The scope of the contract and a clear
statement of the requirements for qualification shall be sent to those
who responded to the invitation. All such applicants that meet the
specified criteria shall be allowed to bid. MCA-Namibia shall inform
all applicants of the results of prequalification. As soon as
prequalification is completed, the bidding documents shall be made
available to the qualified prospective bidders. For prequalification
for groups of contracts to be awarded over a period of time, a limit
for the number or total value of awards to any one bidder may be made
on the basis of the bidder's resources. The list of prequalified firms
in such instances shall be updated periodically. Verification of the
information provided in the submission for prequalification shall be
confirmed at the time of award of contract, and award may be denied to
a bidder that is judged no longer to have the capability or resources
to perform the contract successfully.
B. Bidding Documents
General
2.11 The bidding documents shall furnish all information necessary
for a prospective bidder to prepare a bid for the goods, works and non-
consultant services to be provided. While the detail and complexity of
these documents may vary with the size and nature of the proposed bid
package and contract, they generally include: Invitation to bid;
instructions to bidders; form of bid; form of contract; conditions of
contract, both general and special; specifications and drawings;
relevant technical data (including of geological and environmental
nature); list of goods or bill of quantities; delivery time or schedule
of completion; and necessary appendices, such as formats for various
securities. The basis for bid evaluation and selection of the lowest
evaluated bid shall be clearly outlined in the instructions to bidders
and/or the specifications. If a fee is charged for the bidding
documents, it shall be reasonable and reflect only the cost of their
printing and delivery to prospective bidders, and shall not be so high
as to discourage qualified bidders. MCA-Namibia may use an electronic
system to distribute bidding documents, provided that MCC is satisfied
with the adequacy of such system. If bidding documents are distributed
electronically, the electronic system shall be secure to avoid
modifications to the bidding documents and shall not restrict the
access of bidders to the bidding documents. Guidance on critical
components of the bidding documents is given in the following
paragraphs.
2.12 MCA-Namibia shall use the appropriate Standard Solicitation
Documents, including the Standard Bidding Documents, as approved by MCC
pursuant to Part 3 of these Rules, and as may be modified to address
Project-specific conditions, subject to approval by MCC when the change
is material. To the extent possible, such changes shall be introduced
through bid or contract data sheets or through special conditions of
contract, and not by introducing changes in the standard wording of
MCA-Namibia's Standard Solicitation Documents.
Validity of Bids and Bid Security
2.13 Bidders shall be required to submit bids valid for a period
specified in the bidding documents which shall be sufficient to enable
MCA-Namibia to complete the comparison and evaluation of bids, review
the recommendation of award with MCC (if required), and obtain all the
necessary approvals so that the contract can be awarded within that
period.
2.14 MCA-Namibia has the option of requiring a bid security. When
used, the bid security shall be in the amount and form specified in the
bidding documents \18\ and shall remain valid for a sufficient time
beyond the validity
[[Page 46752]]
period of the bids, in order to provide reasonable time for MCA-Namibia
to act if the security is to be called. Bid security shall be released
to unsuccessful bidders once the contract has been signed with the
winning bidder. In place of a bid security, MCA-Namibia may require
bidders to sign a declaration accepting that if they withdraw or modify
their bids during the period of validity or they are awarded the
contract and they fail to sign the contract or to submit a performance
security before the deadline defined in the bidding documents, the
bidder will be suspended for a period of time from being eligible for
bidding in any contract with MCA-Namibia.
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\18\ The format of the bid security shall be in accordance with
what was approved by MCC with its approval of MCA-Namibia's Standard
Bidding Documents and shall be issued by a reputable bank or
financial institution selected by the bidder. If the institution
issuing the security is located outside the Republic of Namibia, it
shall have a correspondent financial institution located in the
Republic of Namibia to make it enforceable.
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Language
2.15.1 All advertisements for contracts and notices of contract
awards whether posted at MCA-Namibia's Web site, at dgMarket, or UNDB
Online shall be posted in English.
2.15.2 For all contracts, the solicitation documents as well as the
documents responding to these solicitations, including the proposals,
shall be prepared in English. All contracts shall be written in English
and this language shall govern contractual relations between MCA-
Namibia and the contractor.
Clarity of Bidding Documents
2.16 Bidding documents shall be so worded as to permit
international competition and shall set forth clearly and precisely the
work to be carried out, the location of the work, the goods to be
supplied, the place of delivery or installation, the schedule for
delivery or completion, minimum performance requirements, and the
warranty and maintenance requirements, as well as any other pertinent
terms and conditions. In addition, the bidding documents, where
appropriate, shall define the tests, standards, and methods that will
be employed to judge the conformity of equipment as delivered, or works
as performed, with the specifications. Drawings shall be consistent
with the text of the specifications, and an order of precedence between
the two shall be specified.
2.17 The bidding documents shall specify any factors, in addition
to price, which will be taken into account in evaluating bids, and how
such factors will be quantified or otherwise evaluated. If bids based
on alternative designs, materials, completion schedules, etc., are
permitted, conditions for their acceptability and the method of their
evaluation shall be expressly stated.\19\
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\19\ See Sec. 2.52.
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2.18 All prospective bidders shall be provided the same
information, and shall be assured of equal opportunities to obtain
additional information on a timely basis. MCA-Namibia shall provide
reasonable access to Project sites for visits by prospective bidders.
For works or complex supply contracts, particularly for those requiring
refurbishing existing works or equipment, a pre-bid conference may be
arranged whereby potential bidders may meet with representatives of
MCA-Namibia to seek clarifications (in person or online). Minutes of
the conference shall be provided to all prospective bidders with a copy
included in the record of the procurement. Any additional information,
clarification, correction of errors, or modifications of bidding
documents shall be sent to each recipient of the original bidding
documents in sufficient time before the deadline for receipt of bids to
enable bidders to take appropriate actions. If necessary, the deadline
shall be extended. MCC shall receive a copy of modifications to the
bidding documents and be consulted for issuing its approval when the
contract is subject to prior review by MCC.
Standards
2.19 Standards and technical specifications quoted in bidding
documents shall promote the broadest possible competition, while
assuring the critical performance or other requirements for the goods
and/or works under procurement. As far as possible, MCA-Namibia shall
specify internationally accepted standards such as those issued by the
International Standards Organization with which the equipment or
materials or workmanship shall comply. Where such international
standards are unavailable or are inappropriate, national standards may
be specified.
In all cases, the bidding documents shall state that equipment,
material, or workmanship meeting other standards, which promise at
least substantial equivalence, will also be accepted.
Use of Brand Names
2.20 Specifications shall be based on relevant characteristics and/
or performance requirements. References to brand names, catalog
numbers, or similar classifications shall be avoided. If it is
necessary to quote a brand name or catalog number of a particular
manufacturer to clarify an otherwise incomplete specification, the
words ``or equivalent'' shall be added after such reference. The
specification shall permit the acceptance of offers for goods which
have similar characteristics and which provide performance at least
substantially equivalent to those specified.
Pricing
2.21 Bids for goods shall be invited on the basis of (a) CIP \20\
for all goods manufactured abroad, including those previously imported,
and (b) EXW \21\ for goods manufactured or assembled in the Republic of
Namibia, plus the cost of inland transportation and insurance to the
place of destination, subject to any modifications set forth in the
solicitation documents. Bidders shall be allowed to arrange for ocean
and other transportation and related insurance from any eligible
source.\22\ Where installation, commissioning, or other similar
services are required to be performed by the bidder, as in the case of
``supply and installation'' contracts, the bidder shall be required to
quote for these services, in addition.
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\20\ Refer to INCOTERMS 2000, published by the International
Chamber of Commerce, Cours Albert 1er, 75008 Paris, France, for
definition of CIP.
\21\ Refer to INCOTERMS 2000, published by the International
Chamber of Commerce, Cours Albert 1er, 75008 Paris, France, for
definition of EXW.
\22\ See Paragraphs 1.6, 1.7 and 1.8 of Section 1.A of these
Rules.
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2.22 In the case of turnkey contracts, the bidder shall be required
to quote the price of the installed plant at site, including all costs
for supply of equipment, marine and local transportation and insurance,
installation, and commissioning, as well as associated works and all
other services included in the scope of contract such as design,
maintenance, operation, etc.
2.23 Bidders for works contracts shall be required to quote unit
prices or lump sum prices for the performance of the works. Bidders
shall be allowed to obtain all inputs from any eligible source so that
they may offer their most competitive bids.
Price Adjustment
2.24 Bidding documents shall state either (a) that bid prices will
be fixed or (b) that price adjustments will be made to reflect any
changes (upwards or downwards) in major cost components of the
contract, such as labor, equipment, materials, and fuel. Price
adjustment provisions might be included in contracts which extend
beyond eighteen months with the approval of MCC.
2.25 Prices may be adjusted by the use of a prescribed formula (or
[[Page 46753]]
formulae) which breaks down the total price into components that are
adjusted by price indices specified for each component or,
alternatively, on the basis of documentary evidence (including actual
invoices) provided by the supplier or contractor. The use of the
formula method of price adjustment is preferable to that of documentary
evidence. The method to be used, the formula (if applicable), and the
base date for application shall be clearly defined in the bidding
documents. If the payment currency is different from the source of the
input and corresponding index, a correction factor shall be applied in
the formula, to avoid incorrect adjustment.
Transportation and Insurance
2.26 Bidding documents shall permit suppliers and contractors to
arrange transportation and insurance from any eligible source. Bidding
documents shall state the types and terms of insurance to be provided
by the bidder. The indemnity payable under transportation insurance
shall be at least 110 percent of the contract amount denominated in
United States dollars or local currency of the Republic of Namibia
depending upon the currency of the contract. For works, a contractor's
``all risk'' form of policy usually shall be specified. For large
Projects with several contractors on a site, a ``wrap up'' or total
Project insurance arrangement may be obtained by MCA-Namibia, in which
case MCA-Namibia shall seek competition for such insurance.
2.27 Reserved.
Currency Provisions
2.28 Bidding documents shall state the currency or currencies in
which bidders are to state their prices. All bids are to be denominated
and paid only in United States dollars, the local currency of the
Republic of Namibia, or a combination of the two as stated in the
bidding documents. No other currency is permitted.
Currency of Bid
2.29 The bidding documents shall caution bidders that the bid price
must be expressed in the currency requested. The requested currency may
be either United States dollars, the currency of the Republic of
Namibia, or a combination of the two. Bids may not be requested or
expressed in any other currency.
2.30 Reserved.
Currency Conversion for Bid Comparison
2.31 The bid price is the sum of all payments in United States
dollars or the currency of the Republic of Namibia as applicable. For
the purpose of comparing prices, bid prices shall be converted to
either one of the two currencies as selected by MCA-Namibia and stated
in the bidding documents. MCA-Namibia shall make this conversion by
using the forward or selling (exchange) rates, as appropriate, for
those currencies quoted by an official, public source (such as the Bank
of Namibia), by a commercial bank or by an internationally circulated
newspaper for similar transactions on a date selected in advance. Such
source and date to be specified in the bidding documents, provided that
the date shall not be earlier than four weeks prior to the deadline for
the receipt of bids, nor later than the original date for the
expiration of the period of bid validity.
Currency of Payment
2.32 Payment of the contract price shall be made in the currency
(or currencies) as stated in the bidding documents.
2.33 Reserved.
Terms and Methods of Payment
2.34 Payment terms shall be in accordance with the international
commercial practices applicable to the specific goods, works and non-
consultant services. The contract shall provide for the payment of
interest if payment is delayed due to the fault of MCA-Namibia or its
agents beyond the time allowed in the contract; the rate of charges
shall be specified in the contract.
(a) Contracts for supply of goods shall provide for full payment on
the delivery and inspection, if so required, of the contracted goods
except for contracts involving installation, commissioning and testing,
in which case a portion of the payment may be made after the supplier
has complied with all its obligations under the contract. In major
contracts for goods and plants, provision shall be made for partial
payments for work done and, in contracts of long duration, for partial
payments during the period of manufacture or assembly.
(b) Contracts for works shall provide in appropriate cases for
partial payments for work done in furtherance of contract performance
and reasonable retention amounts to be released upon compliance with
the contractor's obligations under contract.
2.35 Any payment for work done in furtherance of the contract shall
be related to the estimated amount of these expenses and be specified
in the bidding documents. Amounts and timing of other payments to be
made, such as for materials delivered to the site for incorporation in
the works, shall also be specified. Payment made in advance of work
done, including payment made upon signature of a contract for goods or
works (advance payments) requires prior approval of MCC and a
commitment of a security guarantee or bond in the amount of the advance
payment. The bidding documents shall specify the arrangements for any
security required for advance payments.
2.36 Bidding documents shall specify the payment method. Terms of
payment may not be used as an evaluation criterion and may not affect
the bid evaluation.
Alternative Bids
2.37 The bidding documents shall clearly indicate when bidders are
allowed to submit alternative bids, how alternative bids should be
submitted, how bid prices should be offered and the basis on which
alternative bids shall be evaluated.
Conditions of Contract
2.38 The contract documents shall clearly define the scope of work
to be performed, the goods to be supplied, the rights and obligations
of MCA-Namibia and of the supplier or contractor, and the functions and
authority of the engineer, architect, or construction manager, if one
is employed by MCA-Namibia, in the supervision and administration of
the contract. In addition to the general conditions of contract, any
special conditions particular to the specific goods, works or non-
consultant services to be procured and the location of the Project
shall be included.
Performance Security
2.39 Bidding documents for works shall require a security in an
amount sufficient to protect MCA-Namibia in case of breach of contract
by the contractor. This security shall be provided in an appropriate
form and amount, as specified by MCA-Namibia in the bidding
document.\23\ The amount of the security may vary, depending on the
type of security furnished and on the nature and magnitude of the
works. A portion of this security shall extend sufficiently beyond the
date of completion of the works to cover the
[[Page 46754]]
defects liability or maintenance period up to final acceptance by MCA-
Namibia.
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\23\ The format of the performance security shall be in
accordance with the Standard Bidding Documents and shall be issued
by a reputable bank or financial institution selected by the bidder.
If the institution issuing the security is located outside the
Republic of Namibia, it shall have a correspondent financial
institution located in the Republic of Namibia to make it
enforceable.
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2.40 In contracts for the supply of goods, the need for performance
security depends on the market conditions and commercial practice for
the particular kind of goods. Suppliers or manufacturers may be
required to provide a security to protect against nonperformance of the
contract and to cover warranty obligations. The security shall be
reasonable in amount.
Liquidated Damages and Bonus Clauses
2.41 Provisions for liquidated damages or similar provisions in an
appropriate amount shall be included in the conditions of contract when
delays in the delivery of goods, completion of works or failure of the
goods, works or non-consultant services to meet performance
requirements would result in extra cost or loss of revenue or loss of
other benefits to MCA-Namibia. With prior approval of MCC, provision
may also be made for a bonus to be paid to suppliers or contractors for
completion of works or delivery of goods ahead of the times specified
in the contract when such earlier completion or delivery would be of
benefit to MCA-Namibia.
Force Majeure
2.42 The conditions of contract shall stipulate that failure on the
part of the parties to perform their obligations under the contract
will not be considered a default if such failure is the result of an
event of force majeure as defined in the conditions of contract.
Applicable Law and Settlement of Disputes
2.43 The conditions of contract shall include provisions dealing
with the applicable law and the forum for the settlement of disputes.
Settlement of disputes shall take place in the Republic of Namibia with
the possibility for international arbitration in the cases where the
parties so agree. In the case of works contracts, supply and
installation contracts, and turnkey contracts, the dispute settlement
provision might also include mechanisms such as dispute review boards
or adjudicators, which are designed to permit a speedier dispute
settlement.
C. Bid Opening, Evaluation, and Award of Contract
Time for Preparation of Bids
2.44 The time allowed for the preparation and submission of bids
shall be determined with due consideration of the particular
circumstances of the Project, the magnitude and complexity of the
contract, and the period of advanced notice provided by the General
Procurement Notice. Where large works or complex items of equipment are
involved, the period shall be long enough to enable prospective bidders
to conduct investigations before submitting their bids. In such cases,
MCA-Namibia may convene pre-bid conferences and arrange site visits.
Bidders shall be permitted to submit bids by mail or by hand. MCA-
Namibia may also use electronic systems permitting bidders to submit
bids by electronic means, provided MCC is satisfied with the adequacy
of the system, including, inter alia, that the system is secure,
maintains the confidentiality and authenticity of bids submitted, uses
an electronic signature system or equivalent to keep bidders bound to
their bids, and only allows bids to be opened with due simultaneous
electronic authorization of the bidder and MCA-Namibia. In this case,
bidders shall continue to have the option to submit their bids in hard
copy. The deadline and place for receipt of bids shall be specified in
the invitation to bid.
Bid Opening Procedures
2.45 The time for the bid opening shall be the same as for the
deadline for receipt of bids or promptly \24\ thereafter, and shall be
announced, together with the place for bid opening, in the invitation
to bid. MCA-Namibia shall open all bids at the stipulated time and
place. Bids shall be opened in public; bidders or their representatives
shall be allowed to be present (in person or online, when electronic
bidding is used) and the general public, at the discretion of MCA-
Namibia. The name of the bidder and total amount of each bid, and of
any alternative bids if they have been requested or permitted, shall be
read aloud (and posted online when electronic bidding is used) and
recorded when opened and a copy of this record shall be sent to all
bidders who submitted bids in time. Bids received after the time
stipulated, as well as those not opened and read aloud at bid opening,
shall not be considered.
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\24\ To allow sufficient time to take the bids to the place
announced for public bid opening.
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Clarifications or Alterations of Bids
2.46 Except as otherwise provided in Paragraphs 2.63 and 2.64 of
Section 1.A of these Rules, bidders shall not be requested or permitted
to alter their bids after the deadline for receipt of bids. MCA-Namibia
shall ask bidders for clarification needed to evaluate their bids but
shall not ask or permit bidders to change the substance or price of
their bids after the bid opening. Requests for clarification and the
bidders' responses shall be made in writing, in hard copy and/or by an
electronic system satisfactory to MCC.\25\
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\25\ See Paragraph 2.44 of Section 1.A of these Rules.
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Confidentiality
2.47 After the public opening of bids, information relating to the
examination, clarification, and evaluation of bids and recommendations
concerning awards shall not be disclosed to bidders or other persons
not officially concerned with this process until the publication of
contract award.
Examination of Bids
2.48 MCA-Namibia shall ascertain whether the bids (a) meet the
eligibility requirements specified in Paragraphs 1.6, 1.7 and 1.8 of
Section 1.A of these Rules, (b) have been properly signed, (c) are
accompanied by the required securities or required declaration signed
as specified in Paragraph 2.14 of Section 1.A of these Rules, (d) are
substantially responsive to the bidding documents, and (e) are
otherwise generally in order. If a bid is not substantially responsive,
that is, it contains material deviations from or reservations to the
terms, conditions, and specifications in the bidding documents, it
shall not be considered further. The bidder shall not be permitted to
correct or withdraw material deviations or reservations once bids have
been opened.\26\
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\26\ See Paragraph 2.50 of Section 1.A of these Rules regarding
corrections.
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Evaluation and Comparison of Bids
2.49 The purpose of bid evaluation is to determine the cost and
benefits of each bid in a manner that permits a comparison to be made.
Subject to Paragraph 2.58 of Section 1.A of these Rules, the bid best
meeting the evaluation criteria and other non-price factors (including,
but not limited to, warranties and delivery periods),\27\ but not
necessarily the lowest submitted price, shall be selected for award.
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\27\ See Paragraph 2.52 of Section 1.A of these Rules.
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2.50 The bid price read aloud at the bid opening shall be adjusted
to correct any arithmetical errors. Also, for the purpose of
evaluation, adjustments shall be made for any quantifiable nonmaterial
deviations or reservations.
2.51 The evaluation and comparison of bids shall be on CIP prices
for the supply of imported goods \28\ and EXW
[[Page 46755]]
prices, plus cost of inland transportation and insurance to the place
of destination, for goods manufactured within the Republic of Namibia,
together with prices for any required installation, training,
commissioning, and other similar services.\29\
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\28\ MCA-Namibia may ask for prices on a CIF basis (and bids
compared on that same basis) only when the goods are carried by sea
and the goods are not containerized. CIF shall not be used for
anything other than sea transport. CIP can be used for any mode of
transport, including sea and multimodal transport.
\29\ The evaluation of bids shall not take into account: (a)
Customs duties and other taxes levied on imported goods quoted CIP
(which are excluded of custom duties); (b) sales and similar taxes
levied in connection with the sale or delivery of the goods.
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2.52 Bidding documents shall also specify the relevant factors in
addition to price to be considered in bid evaluation and the manner in
which they will be applied for the purpose of determining the lowest
evaluated bid. For goods and equipment, other factors may be taken into
consideration including, among others, delivery time, operating costs,
efficiency and compatibility of the equipment, availability of service
and spare parts, and related training, safety, and environmental
benefits. The factors other than price to be used for determining the
lowest evaluated bid shall, to the extent practicable, be expressed in
monetary terms, or given a relative weight in the evaluation provisions
in the bidding documents.
2.53 Bid evaluation for works shall be strictly in monetary terms.
Any procedure under which bids above or below a predetermined
assessment of bid values are automatically disqualified is not
acceptable. If time is a critical factor, the value of early completion
to MCA-Namibia may be taken into account according to criteria
presented in the bidding documents, only if the conditions of contract
provide for commensurate penalties for noncompliance and MCC has
granted prior approval.
2.54 MCA-Namibia shall prepare a detailed report on the evaluation
and comparison of bids setting forth the specific reasons on which the
recommendation is based for the award of the contract.
Domestic Preferences
2.55 Application of domestic preferences for nationality or local
content shall not be permitted.
2.56 Reserved.
Extension of Validity of Bids
2.57 MCA-Namibia shall use best efforts to complete evaluation of
bids and award of contract within the initial period of bid validity so
that extensions are not necessary. An extension of bid validity, if
justified by exceptional circumstances, shall be requested in writing
from all bidders before the expiration date. The extension shall be for
the minimum period required to complete the evaluation, obtain the
necessary approvals, and award the contract. Whenever an extension of
bid validity period is requested, bidders shall not be requested or be
permitted to change the quoted (base) price or other conditions of
their bid. Bidders shall have the right to refuse to grant such an
extension. If the bidding documents require a bid security, bidders may
exercise their right to refuse to grant such an extension without
forfeiting their bid security, but those who are willing to extend the
validity of their bid shall be required to provide a suitable extension
of bid security.
Postqualification of Bidders
2.58 If bidders have not been prequalified, MCA-Namibia shall
determine whether the bidder whose bid has been determined to best meet
the evaluation criteria, subject to Section 2.49, has the capability
and resources to effectively carry out the contract as offered in the
bid. The criteria to be met shall be set out in the bidding documents,
and if the bidder does not meet them, the bid shall be rejected. In
such an event, MCA-Namibia shall make a similar determination and also
confirm eligibility of the next-lowest evaluated bidder.
Award of Contract
2.59 MCA-Namibia shall award the contract, within the period of the
validity of bids, to the bidder who meets the appropriate standards of
capability and resources and whose bid has been determined (a) to be
substantially responsive to the bidding documents and (b) to best meet
the evaluation criteria, subject to Section 2.49.\30\ A bidder shall
not be required, as a condition of award, to undertake responsibilities
for work not stipulated in the bidding documents or otherwise to modify
the bid as originally submitted.
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\30\ Referred to as ``lowest evaluated bidder'' and ``lowest
evaluated bid,'' respectively.
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Publication of the Award of Contract
2.60 After the award of contract, MCA-Namibia shall post at UNDB
Online, at dgMarket and at MCA-Namibia's Web site (or such other
appropriate Web site designated by MCA-Namibia and approved by MCC) the
results, identifying the procurement, the name of the winning bidder
and the price, duration, and summary scope of the contract. The same
information shall be sent to all bidders who have submitted bids. The
posting at UNDB Online and at dgMarket shall be done monthly and at
MCA-Namibia's Web site (or such other appropriate Web site designated
by MCA-Namibia and approved by MCC) at least weekly. The posting shall
be in a format of a summarized table covering the previous period. All
such postings shall be in English.
Rejection of All Bids
2.61 Bidding documents usually provide that MCA-Namibia may reject
all bids. Rejection of all bids is justified when there is lack of
effective competition, or bids are not substantially responsive or when
bid prices are unreasonable or are substantially higher than existing
budget. Lack of competition shall not be determined solely on the basis
of the number of bidders. Even when only one bid is submitted, the
bidding process may be considered valid if the bid was satisfactorily
advertised and prices are reasonable in comparison to market values.
MCA-Namibia may, after approval by MCC, reject all bids. If all bids
are rejected, MCA-Namibia shall review the causes justifying the
rejection and consider making revisions to the conditions of contract,
design and specifications, scope of the contract, or a combination of
these, before inviting new bids.
2.62 If the rejection of all bids is due to lack of competition,
wider advertising shall be considered. If the rejection is due to most
or all of the bids being non responsive, new bids may be invited from
the initially prequalified firms, or with approval of MCC from only
those that submitted bids in the first instance.
2.63 All bids shall not be rejected and new bids invited on the
same bidding and contract documents solely for the purpose of obtaining
lower prices. If the lowest evaluated responsive bid exceeds MCA-
Namibia pre-bid cost estimates by a substantial margin, MCA-Namibia
shall investigate causes for the excessive cost and consider requesting
new bids as described in the previous paragraphs. Alternatively, MCA-
Namibia may negotiate with the lowest evaluated bidder to try to obtain
a satisfactory contract through a reduction in the scope and/or a
reallocation of risk and responsibility which can be reflected in a
reduction of the contract price. However, substantial reduction in the
scope or modification to the contract
[[Page 46756]]
documents generally will require rebidding.
2.64 The prior approval of MCC shall be obtained before rejecting
all bids, soliciting new bids, or entering into negotiations with the
lowest evaluated bidder. Within two weeks of the rejection of all bids,
MCA-Namibia shall post at dgMarket and MCA-Namibia's Web site (or such
other appropriate Web site designated by MCA-Namibia and approved by
MCC) notification of the cancellation of the procurement. The
notification shall identify the procurement and state briefly the
reason for cancelling the procurement. The same information shall be
sent to all bidders who have submitted bids. All such postings shall be
in English.
Debriefing
2.65 The bidding documents shall specify that any bidder who wishes
to ascertain the grounds on which its bid was not selected, may request
an explanation from MCA-Namibia. MCA-Namibia shall promptly provide an
explanation of why such bid was not selected, either in writing and/or
in a debriefing meeting, at the option of MCA-Namibia. The requesting
bidder shall bear all the costs of attending such a debriefing.
D. Modified CB
2.66 Reserved.
2.67 Reserved.
Procurement of Commodities
2.68 Market prices of commodities, such as grain, animal feed,
cooking oil, fuel, fertilizer, and metals, fluctuate depending upon the
demand and supply at any particular time. Many are quoted in
established commodity markets. Procurement often involves multiple
awards for partial quantities to assure security of supply and multiple
purchases over a period of time to take advantage of favorable market
conditions and to keep inventories low. A list of prequalified bidders
may be drawn up to whom periodic invitations are issued. Bidders may be
invited to quote prices linked to the market price at the time of or
prior to the shipments. Bid validities shall be as short as possible.
Bid prices must be denominated and paid in either United States dollars
or the local currency of the Republic of Namibia. The currency shall be
specified in the bidding document. Bidding documents may permit telexed
or faxed bids or bids submitted by electronic means, and in such cases
either no bid security is required, or standing bid securities valid
over a specified period of time have been submitted by prequalified
bidders. Standard contract conditions and forms consistent with market
practices shall be used.
III. Other Methods of Procurement
General
3.1 This Section describes the methods of procurement that can be
used where CB would not be the most economic and efficient method of
procurement, and where other methods are deemed more appropriate.\31\
Paragraphs 3.2 to 3.7 of Section 1.A of these Rules describe the
generally used methods in descending order of preference and the
remaining paragraphs describe the methods used in specific
circumstances.
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\31\ Contracts shall not be divided into smaller units in order
to make them less attractive for CB procedures; any proposal to
divide a contract into smaller packages shall require the prior
approval of MCC.
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Limited Bidding (``LB'')
3.2 Limited Bidding is essentially CB by direct invitation without
open advertisement. It may be an appropriate method of procurement
where (a) there are only a limited number of suppliers, or (b) other
exceptional reasons may justify departure from full CB procedures.
Under LB, MCA-Namibia shall seek bids from a list of potential
suppliers or contractors broad enough to assure competitive prices,
such list to include all suppliers or contractors when there are only a
limited number. In all respects other than advertisement, CB procedures
shall apply, including the publication of the contract award as
indicated in Paragraph 2.60 of Section 1.A of these Rules.
3.3 Reserved.
3.4 Reserved.
Shopping
3.5 Shopping is a procurement method based on comparing price
quotations obtained from several suppliers (in the case of goods) or
from several contractors (in the case of civil works), with a minimum
of three, to assure competitive prices, and is an appropriate method
for procuring readily available off the shelf goods or standard
specification commodities of small value, or simple civil works of
small value. (Small value is defined as procurements valued at less
than US$200,000 in the aggregate from one contractor). Requests for
quotations shall indicate the description and quantity of the goods or
specifications of works or non-consultant services, as well as desired
delivery (or completion) time and place. Quotations may be submitted by
letter, facsimile or by electronic means. The evaluation of quotations
shall follow the same principles as of Competitive Bidding. The terms
of the accepted offer shall be incorporated in a purchase order or
brief contract.
Direct Contracting
3.6 Direct contracting is contracting without competition (single-
source) and may be an appropriate method under the following
circumstances:
(a) An existing contract for goods, works or non-consultant
services, awarded in accordance with procedures acceptable to MCC, may
be extended, within reasonable limits, for additional goods, works or
non-consultant services of a similar nature. MCC shall be satisfied in
such cases that no advantage could be obtained by further competition
and that the prices on the extended contract are reasonable. Provisions
for such an extension, if considered likely in advance, shall be
included in the original contract.
(b) Standardization of equipment or spare parts, to be compatible
with existing equipment, may justify additional purchases from the
original supplier. For such purchases to be justified, the original
equipment shall be suitable, the number of new items shall generally be
less than the existing number, the price shall be reasonable, and the
advantages of another make or source of equipment shall have been
considered and rejected on grounds acceptable to MCC.
(c) The required equipment is proprietary and obtainable only from
one source.
(d) The contractor responsible for a process design requires the
purchase of critical items from a particular supplier as a condition of
a performance guarantee.
(e) In exceptional cases, such as in response to natural disasters.
(f) The value of the contract is under US$2,000.
3.7 For all procurements valued above US$2,000, MCA-Namibia, after
the contract signature, shall post at MCA-Namibia's Web site or such
appropriate Web site designated by MCA-Namibia and approved by MCC, at
dgMarket and at UNDB Online the name of the contractor, price,
duration, and summary scope of the direct contract. This publication
may be done quarterly and in the format of a summarized table covering
the previous period.
Force Account
3.8 Force Account, that is, construction by the use of the
government's own personnel and
[[Page 46757]]
equipment,\32\ may be the only practical method for constructing some
kinds of works. The use of Force Account may be justified where:
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\32\ A government-owned construction unit that is not
managerially and financially autonomous shall be considered a force
account unit. ``Force account'' is otherwise known as ``direct
labor,'' ``departmental forces,'' or ``direct work.''
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(a) Quantities of work involved cannot be defined in advance;
(b) Works are small and scattered or in remote locations for which
qualified construction firms are unlikely to bid at reasonable prices;
(c) Work is required to be carried out without disrupting ongoing
operations;
(d) Risks of unavoidable work interruption are better borne by MCA
Entity than by a contractor; and
(e) There are emergencies needing prompt attention.
3.9 Reserved.
Procurement Agents and Fiscal Agents
3.10 MCA-Namibia may wish (or be required by MCC) to employ, as
their agents, firms specializing in handling procurement and/or
financial management services. Such agents shall be selected following
these Rules (or such other procedures as MCC may approve) and the
procedures set out in the RFP requesting such agent services. The
procurement agent shall follow all the procurement procedures provided
for in the Compact, any agreement supplemental to the Compact (each a
``Supplemental Agreement''), and these Rules, conduct procurement in
conformance with a Procurement Plan approved by MCC, use appropriately
the Standard Solicitation Documents as approved by MCC, follow review
procedures, and properly document the procurement activity. Management
contractors may be employed in a similar manner for a fee to contract
for miscellaneous works involving reconstruction, repairs,
rehabilitation, and new construction in emergency situations, or where
large numbers of small contracts are involved.
Inspection Agents
3.11 Preshipment inspection and certification of imports is one of
the safeguards MCA-Namibia may choose to adopt, particularly for any
large import program. The inspection and certification usually covers
quality, quantity, and reasonableness of price. Imports procured
through CB procedures shall not be subject to price verification, but
only verification for quality and quantity. However, imports not
procured through CB may additionally be subjected to price
verification. The inspection agents ordinarily are paid for on a fee
basis levied on the value of the goods.
3.12 Reserved.
Procurement Under BOO/BOT/BOOT, Concessions and Similar Private Sector
Arrangements
3.13 Where MCC is participating in funding the cost of a Project
procured under a BOO/BOT/ BOOT,\33\ concessions or similar types of
private sector arrangements, either of the following procurement
procedures shall be used, as provided for in the Compact including the
Supplemental Agreements and further elaborated in the Procurement Plan
approved by MCC:
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\33\ BOO: Build, Own, Operate; BOT: Build, Operate, Transfer;
BOOT: Build, Own, Operate, Transfer.
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(a) The concessionaire or entrepreneur under the BOO/BOT/BOOT or
similar type of contract \34\ shall be selected under CB procedures
acceptable to MCC, which may include several stages in order to arrive
at the optimal combination of evaluation criteria, such as the cost and
magnitude of the financing offered, the performance specifications of
the facilities offered, the cost charged to the user or purchaser,
other income generated for MCA-Namibia or purchaser by the facility,
and the period of the facility's depreciation; or
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\34\ For projects such as toll roads, tunnels, harbors, bridges,
power stations, waste disposal plants, and water distribution
systems.
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(b) If the said concessionaire or entrepreneur has not been
selected in the manner set forth in Subparagraph (a) above, the goods,
works, consultant or non-consultant services required for the facility
and to be funded by MCC shall be procured in accordance with CB
procedures defined in Sub-Section 1.A. II.
Performance Based Procurement (``Performance Based Procurement'' or
``Output Based Procurement'')
3.14 Performance Based Procurement,\35\ also called Output Based
Procurement, refers to competitive procurement processes resulting in a
contractual relationship where payments are made for measured outputs
instead of the traditional way where inputs are measured. The technical
specifications define the desired result and which outputs will be
measured including how they will be measured. Those outputs aim at
satisfying a functional need both in terms of quality, quantity and
reliability. Payment is made in accordance with the quantity of outputs
delivered, subject to their delivery at the level of quality required.
Reductions from payments (or retentions) may be made for lower-quality
levels of outputs and, in certain cases, premiums may be paid for
higher quality levels of outputs. The bidding documents do not normally
prescribe the inputs, nor a work method for the contractor. The
contractor is free to propose the most appropriate solution, based on
mature and well proven experience and shall demonstrate that the level
of quality specified in the bidding documents will be achieved.
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\35\ The use of Performance Based Procurement in MCC funded
projects should be the result of the satisfactory technical analysis
of the different options available and should be subject to prior
approval by MCC for incorporation into the Procurement Plan.
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3.15 Performance Based Procurement can involve: (a) The provision
of services to be paid on the basis of outputs; (b) design, supply,
construction (or rehabilitation) and commissioning of a facility to be
operated by MCA-Namibia; or (c) design, supply, construction (or
rehabilitation) of a facility and provision of services for its
operation and maintenance for a defined period of years after its
commissioning.\36\ For the cases where design, supply and/or
construction are required, prequalification is normally required and
the use of Two-Stage Bidding as indicated in Paragraph 2.6 of Section
1.A of these Rules will usually apply.
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\36\ Examples of such type of procurement are: (i) For the case
of procurement of services: Provision of medical services, i.e.
payments for specific services, like office visits, or defined
laboratory tests, etc.; (ii) for the case of procurement of a
facility: Design, Procurement, Construction, and Commissioning of a
thermal power plant to be operated by a grantee; (iii) for the case
of procurement of a facility and services: Design, Procurement,
Construction (or Rehabilitation) of a road and operation and
maintenance of the road for 5 years after construction.
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3.16 Reserved.
3.17 Reserved.
Appendix 1: Review by MCC of Procurement Decisions
Procurement Plans
1. MCC shall review procurement arrangements proposed by MCA-
Namibia in the Procurement Plan for its conformity with the Compact and
these Rules. MCA-Namibia shall update the Procurement Plan at least on
a semi-annual basis. Any amendments proposed to the Procurement Plan
shall be submitted to MCC for prior approval.
Prior Review
2. The thresholds for review of procurement decisions prior to
award of a contract and any modification to such contracts are set out
in Attachment 1 of these Rules.
[[Page 46758]]
Post Review
3. MCA-Namibia shall retain all documentation with respect to each
contract during implementation of the Compact and up to five years
after the expiration or termination of the Compact. This documentation
is subject to examination by MCC, its oversight agencies and by its
consultants and should include, but is not to be limited to, the signed
original of the contract, the analysis of the respective proposals,
recommendations for award, the record of MCC approvals, and the record
of any bid challenge. MCA-Namibia shall also furnish such documentation
to MCC upon request. If MCC determines that the goods, works or non-
consultant services were not procured in accordance with the agreed
procedures, as reflected in the Compact including the Supplemental
Agreements and further detailed in the Procurement Plan approved by
MCC, or that the contract itself is not consistent with such
procedures, it may declare misprocurement as established in Paragraph
1.12 of Section 1.A of these Rules. MCC shall promptly inform MCA-
Namibia of the reasons for such determination.
Appendix 2
Reserved.
Appendix 3: Guidance to Bidders
Bidders may learn about the Millennium Challenge Corporation and
its programs at www.mcc.gov and about the MCC program in the Republic
of Namibia at the Web site established by MCA-Namibia or such other
appropriate Web site designed by MCA-Namibia and approved by MCC.
Section 1.B. Program Procurement Rules: Procurement of Consultants and
Consultant Services
I. Introduction
Purpose
1.1 The principles, rules and procedures set out in this Section
1.B of these Rules shall govern the conduct and administration of the
procurement of the consultants and consultant services that need to be
acquired to implement the Projects under the Compact.
1.2 Reserved
1.3 For the purpose of these Rules, the term consultants includes a
wide variety of entities, including consulting firms, engineering
firms, construction managers, management firms, procurement agents,
inspection agents, auditors, multinational organizations, investment
and merchant banks, universities, research institutions,
nongovernmental organizations, and individuals.\37\
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\37\ See Paragraphs 3.15-3.20 of Section 1.B of these Rules for
particular types of consultants. Individual consultants are covered
in Sub-Section 1.B.V.
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General Considerations
1.4.1 MCA-Namibia is responsible for implementing the Projects, and
therefore for selecting the consultants, and awarding and subsequently
administering the contracts. While in practice the specific procurement
rules and procedures to be followed in the implementation of a Project
depend on the circumstances of the particular case, the following
Procurement Principles shall generally guide the application of these
Rules:
(a) Open, fair and competitive procedures used in a transparent
manner to solicit, award and administer contracts to procure consultant
services;
(b) Solicitations for consultant services shall be based upon a
clear and accurate description of the consultant services to be
acquired;
(c) Contracts shall be awarded only to qualified and capable
consultants 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
(d) 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 the consultant services.\38\
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\38\ These four principles are set out in Section 3.6 of the
Compact.
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1.4.2 MCA-Namibia shall ensure that all the procurements for
consultant services in furtherance of the Compact and funded in whole
or in part, directly or indirectly, by MCC funding shall comply with
these Procurement Principles.
1.5 MCC considers that, in the majority of cases, these
considerations can best be addressed through competition among
qualified firms in which the selection is based on the quality of the
proposal and the cost of the services to be provided. Sub-Sections
1.B.II and III of these Rules describe the different methods of
selection of consultants and the circumstances in which they are
appropriate. Since Quality and Cost Based Selection (``QCBS'') is the
most commonly recommended method, Sub-Section 1.B.II of these Rules
describes in detail the procedures for QCBS. However, QCBS is not the
most appropriate method of selection for all cases; therefore, Sub-
Section 1.B.III describes other methods of selection and the
circumstances in which they are more appropriate.
1.6 The particular methods to be followed for the selection of
consultants under the Compact shall be set out in the Procurement
Plans.
Applicability of Rules
1.7 The consultant services to which Section 1.B of these Rules
apply are of an intellectual and advisory nature. This Section of these
Rules does not apply to other types of services in which the physical
aspects of the activity predominate (for example, operation and
maintenance of facilities or plants, surveys, exploratory drilling,
aerial photography, satellite imagery, and services contracted on the
basis of performance of measurable physical output).\39\
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\39\ As to these latter services, Section 1.A of these Rules
shall apply.
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1.8 Reserved
Conflict of Interest
1.9 Consultants shall provide professional, objective, and
impartial advice and at all times hold the interests of MCA-Namibia
paramount, without any consideration for future work, and, in providing
advice, consultants shall avoid conflicts with other assignments and
their own corporate interests. Consultants shall not be hired for any
assignment that would be in conflict with their prior or current
obligations to other clients, or that may place them in a position of
being unable to carry out the assignment in the best interest of MCA-
Namibia. Without limitation on the generality of the forgoing,
consultants shall not be hired under the circumstances set forth below:
(a) Conflict between consultant activities and procurement of
goods, works or non-consultant services: A firm that has been engaged
by MCA-Namibia to provide goods, works, or non-consultant services for
a Project, and each of its affiliates, shall be disqualified from
providing consultant services related to those goods, works or non-
consultant services. Conversely, a firm hired to provide consultant
services for the preparation or implementation of a Project, and each
of its affiliates, shall be disqualified from subsequently providing
goods, works or non-consultant services resulting from or directly
related to the firm's consultant services for such preparation or
implementation.
(b) Conflict among consultant assignments: Neither consultants
(including their personnel and sub-consultants) nor any of their
affiliates
[[Page 46759]]
shall be hired for any assignment that, by its nature, may be in
conflict with another assignment of the consultants.
(c) Relationships with MCA-Namibia staff: Consultants (including
their personnel and sub-consultants) that have a business or family
relationship with a member of MCA-Namibia staff (or of the Project
implementing agency's staff, or of a beneficiary of the Compact) who
are directly or indirectly involved in any part of: (i) The preparation
of the TOR of the contract, (ii) the selection process for such
contract, or (iii) the supervision of such contract may not be awarded
a contract, unless the conflict stemming from this relationship has
been resolved in a manner acceptable to MCC throughout the selection
process and the execution of the contract.
Unfair Competitive Advantage
1.10 Fairness and transparency in the selection process require
that consultants or their affiliates competing for a specific
assignment do not derive a competitive advantage from having provided
consultant services related to the assignment in question. To that end,
MCA-Namibia shall make available to all the short-listed consultants,
together with the Request for Proposals (RFP), all information that
would in that respect give a consultant a competitive advantage.
Eligibility
1.11 To foster competition MCC permits firms and individuals from
almost all countries \40\ to offer consultant services for MCC-funded
Projects. Any conditions for participation shall be limited to those
that are essential to ensure the firm's or individual's capability to
fulfill the contract in question. However,
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\40\ Firms and individuals from any country subject to sanction
or restriction by law or policy of the United States are not
eligible to compete for MCC-funded contracts. See Sub-paragraph
1.11(f) below.
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(a) Consultants may be excluded if: (i) As a matter of law or
official regulation, the Republic of Namibia prohibits commercial
relations with the consultant's country, provided that MCC is satisfied
that such exclusion does not preclude effective competition for the
consultant services required, or (ii) by an act of compliance with a
decision of the United Nations Security Council taken under Chapter VII
of the Charter of the United Nations, the Republic of Namibia prohibits
any payments to a particular firm or person or for particular goods by
such an act of compliance, that the firm or individual may be excluded.
(b) Government-owned enterprises in the Republic of Namibia may
participate if they are receiving no state subsidy and can demonstrate
that they do not receive a cross-subsidy of income as a result of
statutory powers.
(c) As an exception to (b), government-owned universities or
research centers may participate.
(d) Government officials and civil servants may not be hired under
consultant contracts, either as individuals or as members of a team of
a consultant firm.
(e) A firm declared ineligible by the World Bank for any reason,
including in accordance with The World Bank Group Anti-Corruption
policies \41\ shall be ineligible to be awarded a MCC-funded contract
during the period of time the firm is sanctioned by The World Bank.
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\41\ For purposes of this Sub-paragraph, the relevant World Bank
Group Anti-Corruption policies are set forth in the Guidelines On
Preventing and Combating Fraud and Corruption in Projects financed
by IBRD Loans and IDA Credits and Grants, and in the Anti-corruption
Guidelines for IFC, MIGA, and World Bank Guarantee Transactions.
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(f) Any person or entity that has been blacklisted from
participation in procurements funded with The World Bank assistance or
debarred or suspended from participation in procurements funded by the
United States Federal Government or otherwise prohibited by applicable
United States law or Executive Order or United States policies,
including under any then-existing anti-terrorist policies, shall be
excluded from procurements awarded under the Compact. Without limiting
the foregoing, this would remove from eligibility any procurement from
a country or from a firm that is organized in or has its principle
place of business or a significant portion of its operations in any
country that is subject to sanction or restriction by law or policy of
the United States.\42\
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\42\ As of July 2008, this list includes Cuba, Iran, North
Korea, Sudan and Syria.
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Advance Contracting and Retroactive Financing
1.12 The process of identifying and selecting consultants to
implement projects funded under the Compact before the Compact enters
into force is referred to as advance contracting. Similarly, payments
made under a contract that is signed prior to the Compact entering into
force for which MCA-Namibia would seek reimbursement from MCC is known
as retroactive financing. MCA-Namibia will not engage in any advance
contracting or be entitled to any retroactive financing, without the
prior approval of MCC.
Associations Between Consultants
1.13 Consultants may associate with each other in the form of a
joint venture or of a sub-consultancy agreement to complement their
respective areas of expertise, strengthen the technical responsiveness
of their proposals and make available bigger pools of experts, provide
better approaches and methodologies, and, in some cases, to offer lower
prices. Such an association may be for the long term (independent of
any particular assignment) or for a specific assignment. If MCA-Namibia
employs an association in the form of a joint venture, the association
should appoint one of the firms to represent the association; all
members of the joint venture shall sign the contract and shall be
jointly and severally liable for the entire assignment. Once the
solicitation documents, including Requests for Proposals, are issued,
any association in the form of joint venture or sub-consultancy among
short-listed firms, if applicable, shall be permissible only with the
approval of MCA-Namibia, unless specifically permitted in the terms of
the Request for Proposals. MCA-Namibia shall not require consultants to
form associations with any specific firm or group of firms.
MCC Review, Assistance, and Monitoring
1.14 MCC reviews the hiring of consultants by MCA-Namibia to
satisfy itself that the selection process is carried out in accordance
with the provisions of these Rules. The thresholds for MCC review are
described in Attachment 1 of these Rules.
1.15 MCC does not furnish a short list or a long list \43\ of firms
or individuals to MCA-Namibia. However, if MCA-Namibia undertakes a
shortlisting procedure before inviting proposals, the record of the
shortlisting procedure together with the final short list shall be
submitted to MCC for approval before MCA-Namibia issues the RFP if the
estimated value of the anticipated contract exceeds the thresholds in
Attachment 1 of these Rules.
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\43\ Short list: see Paragraphs 2.6, 2.7 and 2.8 of 1.B of these
Rules; Long list: a preliminary list of potential firms from which
the short list would be established.
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1.16 MCA-Namibia shall supervise the performance of the consultants
and ensure that they carry out the assignments in accordance with the
contract. Without assuming the responsibilities of MCA-Namibia or the
consultants, MCC shall monitor the work as necessary to satisfy itself
that it
[[Page 46760]]
is being carried out according to appropriate standards and is based on
acceptable data. As appropriate, MCC may take part in discussions
between MCA-Namibia and the consultants and, if necessary, may help
MCA-Namibia in addressing issues related to the assignment. If a
significant portion of Project preparation work is being carried out in
the consultants' home offices, MCC staff may, with approval of MCA-
Namibia, visit these offices to review the consultants' work.
Misprocurement
1.17 MCC does not fund expenditures for consultant services if the
consultants or consultant services selected have not been contracted in
accordance with the agreed provisions as detailed in the Compact and
Supplemental Agreements, these Rules and the approved Procurement
Plans.\44\ In such cases, MCC will declare misprocurement and cancel
that portion of the Compact allocated to the services that have been
misprocured if corrective measures satisfactory to MCC are not taken.
MCC may, in addition, exercise other remedies provided for under the
Compact. Even once the contract is awarded after obtaining an approval
from MCC, MCC may still declare misprocurement if it concludes that the
approval was issued on the basis of incomplete, inaccurate, or
misleading information furnished by MCA-Namibia or the terms and
conditions of the contract had been modified without MCC approval.
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\44\ See Paragraph 1.24.1, 1.24.2, and 1.24.3 of Section 1.B of
these Rules.
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References to MCC
1.18 MCA-Namibia shall use the following language when referring to
MCC in procurement documents:
The United States of America, acting through the Millennium
Challenge Corporation (``MCC'') and the Republic of Namibia (the
``Government'') have entered into a Millennium Challenge Compact for
Millennium Challenge Account assistance to help facilitate poverty
reduction through economic growth in the Republic of Namibia (the
``Compact'') in the amount of [Insert amount of Compact] US$ (``MCC
Funding''). MCA-Namibia on behalf of the Government intends to apply
a portion of the proceeds of MCC Funding to eligible payments under
this contract. Payments by MCA-Namibia will be subject, in all
respects, to the terms and conditions, including restrictions on the
use of MCC Funding, of the Compact. No party other than the
Government and MCA-Namibia shall derive any rights from the Compact
or have any claim to the proceeds of MCC Funding.
Training or Transfer of Knowledge
1.19 If the assignment includes an important component for training
or transfer of knowledge to MCA-Namibia staff or national consultants,
the TOR shall indicate the objectives, nature, scope, and goals of the
training program, including details on trainers and trainees, skills to
be transferred, time frame, and monitoring and evaluation arrangements.
The cost for the training program shall be included in the consultant's
contract and in the budget for the assignment.
Language
1.20 All advertisements for contracts and notices of contract
awards, whether posted at MCA-Namibia's Web site, at dgMarket, or UNDB
Online, shall be posted in English.
1.21 For all contracts, the solicitation documents as well as the
documents responding to these solicitations, including the proposals,
shall be prepared in English. All contracts shall be written in English
and this language shall govern contractual relations between MCA-
Namibia and the consultant.
Fraud and Corruption
1.22 MCC requires that MCA-Namibia (and other beneficiaries of MCC
funding), as well as consultants and their subcontractors under any
MCC-funded contracts, observe the highest standards of ethics during
the procurement and execution of such contracts. In pursuance of this
policy, the following provisions shall apply.
(a) For the purposes of these provisions, the terms set forth below
are defined as follows:
(i) ``Corrupt practice'' means the offering, giving, receiving, or
soliciting, directly or indirectly, of anything of value to influence
the actions of a public official (including MCA-Namibia and MCC staff
and employees of other organizations taking or reviewing selection
decisions) in the selection process or in contract execution or the
making of any payment to any third party, in connection with or in
furtherance of a contract, in violation of (aa) the United States
Foreign Corrupt Practices Act of 1977, as amended (15 U.S.C. 78a et
seq.) (``FCPA''), or any other actions taken that otherwise would be in
violation of the FCPA if the FCPA were applicable, or (bb) any
applicable law in the Republic of Namibia;
(ii) ``Fraudulent practice'' means any act or omission, including
any misrepresentation, in order to influence (or attempt to influence)
a selection process or the execution of a contract to obtain a
financial or other benefit, or to avoid (or attempt to avoid) an
obligation;
(iii) ``Collusive practice'' means a scheme or arrangement between
two or more parties, with or without the knowledge of MCA-Namibia,
designed to establish prices at artificial, noncompetitive levels or to
otherwise deprive MCA-Namibia of the benefits of free and open
competition;
(iv) ``Coercive practice'' means impairing or harming or
threatening to impair or harm, directly or indirectly, persons or their
property, to influence their participation in a procurement process, or
affect the execution of a contract;
(v) ``Obstructive practice'' means:
(aa) Destroying, falsifying, altering or concealing of evidence
material to the investigation or making false statements to
investigators in order to impede an investigation into allegations of a
corrupt, fraudulent, coercive, collusive, or prohibited practice; and
threatening, harassing, or intimidating any party to prevent it from
disclosing its knowledge of matters relevant to the investigation or
from pursuing the investigation; and
(bb) Acts intended to impede the exercise of the inspection and
audit rights of MCC provided under the Compact; and
(vi) ``Prohibited practice'' means any action that violates Section
E (Compliance with Anti-Corruption Legislation), Section F (Compliance
with Anti-Money Laundering Legislation) and Section G (Compliance with
Terrorist Financing Statutes and Other Restrictions) of the ``General
Provisions Annex'' that will be made a part of MCC-funded contracts and
may be found on the MCC Web site at http://www.mcc.gov/guidance/compact/general_provisions.pdf.
(b) MCA-Namibia will reject a proposal (and MCC will deny approval
of a proposal for contract award) if it determines that the consultant
recommended for award has, directly or through an agent, engaged in
corrupt, fraudulent, collusive, coercive, obstructive or prohibited
practices in competing for the contract in question.
(c) MCC has the right to cancel the portion of MCC funding
allocated to a contract if it determines at any time that
representatives of a beneficiary of the MCC funding engaged in corrupt,
fraudulent, collusive, coercive, obstructive or prohibited practices
during the selection process or the execution of a MCC-funded contract,
without MCA-Namibia having taken timely and appropriate action
[[Page 46761]]
satisfactory to MCC to remedy the situation.
(d) MCC and MCA-Namibia have the right to sanction a consultant,
including declaring such party ineligible, either indefinitely or for a
stated period of time, to be awarded an MCC-funded contract if at any
time either MCA-Namibia or MCC determines that the bidder, supplier,
contractor, or subcontractor has, directly or through an agent, engaged
in corrupt, fraudulent, collusive, coercive, obstructive or prohibited
practices in competing for, or in executing, such a contract.
(e) MCC and MCA-Namibia have the right to require that a provision
be included in solicitation documents and in MCC-funded contracts
requiring a consultant to permit MCA-Namibia, MCC, or any designee of
MCC, to inspect its accounts, records and other documents relating to
the submission of a proposal or performance of a MCC-funded contract
and to have them audited by auditors appointed by MCC or MCA-Namibia
with the approval of MCC.
1.23 To the extent required by Namibian law, MCA-Namibia shall
introduce, into bid forms for large contracts funded by MCC, an
undertaking of the bidder to observe, in competing for and executing a
contract, the country's laws against fraud and corruption (including
bribery), as listed in the solicitation documents. In the event such an
undertaking is not required by Namibian law, MCA-Namibia may introduce
the undertaking with the approval of MCC.
Procurement Plan
1.24.1 MCA-Namibia shall prepare periodic procurement plans that
are updated at least semi-annually, for acquiring consultant services
needed to implement the Compact (``Procurement Plan''). Each
Procurement Plan shall be adopted by the governing body of MCA-Namibia
and shall be submitted to MCC for its approval. Each Procurement
Plan,\45\ typically covering a six (6) month period, (a) lists the
particular contracts for the consultant services required to implement
the Compact for the period covered in such Procurement Plan; (b)
identifies the proposed method of procurement and selection procedure
for such contracts as determined according to the rules set out in
these Rules; and (c) sets forth the estimated value for each consultant
contract.
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\45\ When goods, works and non-consultant services also need to
be procured, the Procurement Plan must also include such
procurements in accordance with the requirements at Section 1.A,
Paragraphs 1.16.1, 1.16.2, and 1.16.3 of these Rules.
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1.24.2 MCA-Namibia shall ensure that all consultant services shall
be procured using the procurement method and selection procedure
approved in each Procurement Plan. Compliance, satisfactory to MCC,
with the approved Procurement Plan shall be a condition precedent to
MCC Disbursements.
1.24.3 MCA-Namibia shall not initiate any procurement action that
is a substantial deviation from the applicable adopted and approved
Procurement Plan without the prior approval of MCC. If MCA-Namibia
determines that such a deviation is necessary or appropriate, MCA-
Namibia shall submit a request to MCC for its approval of an amended
Procurement Plan. If approved by MCC, MCA-Namibia shall comply with any
instructions contained in the MCC approval, including any publication
requirements. Any substantial deviation from a Procurement Plan as
approved and adopted shall be submitted to the governing body of MCA-
Namibia for adoption of the amended Procurement Plan.
II. Quality and Cost Based Selection
The Selection Process
2.1 QCBS uses a competitive process that takes into account the
quality of the proposal and the cost of the services in the selection
of the successful firm. Cost as a factor of selection shall be used
judiciously. The relative weight to be given to the quality and cost
shall be determined for each case depending on the nature of the
assignment.
2.2 The selection process includes the following steps unless MCC
approves a modification in the procedure that is justified under the
circumstances of a particular procurement:
(a) Preparation of the Terms of Reference;
(b) Preparation of a cost estimate and the budget;
(c) Advertising;
(d) Preparation of the short list of consultants; (This step is not
mandatory. MCA-Namibia may at its discretion issue the Request for
Proposals to all consultants expressing interest in the procurement.)
(e) Preparation and issuance of the Request for Proposals which
should include: the Letter of Invitation; Instructions to Consultants;
the Terms of Reference and the proposed draft contract;
(f) Receipt of proposals;
(g) Evaluation of technical proposals: consideration of quality;
(h) Public opening of financial proposals;
(i) Evaluation of financial proposals;
(j) Final evaluation of quality and cost; and
(k) Negotiations and award of the contract to the selected firm.
Terms of Reference (``TOR'')
2.3 MCA-Namibia shall be responsible for preparing the TOR for the
assignment. The TOR shall be prepared by a person(s) or a firm
specialized in the area of the assignment. The scope of the services
described in the TOR shall be compatible with the available budget. The
TOR shall define clearly the objectives, goals, and scope of the
assignment and provide background information (including a list of
existing relevant studies and basic data) to facilitate the
consultants' preparation of their proposals. If transfer of knowledge
or training is an objective, it should be specifically outlined along
with details of number of staff to be trained, and so forth, to enable
consultants to estimate the required resources. The TOR shall list the
services and surveys necessary to carry out the assignment and the
expected outputs (for example, reports, data, maps, surveys). It shall
also list criteria that will be used to evaluate the bids. However, the
TOR should not be too detailed or inflexible, so as to prevent
competing consultants from proposing their own methodology and
staffing. Firms shall be encouraged to comment on the TOR in their
proposals. The respective responsibilities of MCA-Namibia, the
implementing entity (if relevant) and the consultant should be defined
clearly in the TOR.
Cost Estimate (Budget)
2.4 Preparation of a well thought-through cost estimate is
essential if MCC funding is to be managed properly. The cost estimate
shall be based on MCA-Namibia's assessment of the resources needed to
carry out the assignment: staff time, logistical support, and physical
inputs (e.g. vehicles and laboratory equipment).
Advertising
2.5.1 On at least a semi-annual basis, MCA-Namibia shall publicize
in the General Procurement Notice (GPN) the procurements planned for
consultant services for the upcoming period as identified in the
adopted Procurement Plan which was approved by MCC. The General
Procurement Notice shall be in the form acceptable to MCC and shall
include information derived from the Procurement Plan and the name,
telephone (or fax) number, and address of the MCA-Namibia agent
responsible for procurement and the address of the
[[Page 46762]]
Web site(s) where Specific Procurement Notices will be posted. If
known, the scheduled date for availability of solicitation documents
for each procurement should be indicated. Such solicitation documents
shall not be released to the public earlier than the date of
publication of the General and Specific Procurement Notices. The
General Procurement Notice shall be advertised in a manner to provide
reasonable notice of planned procurements to potential consultants.
Advertisement of the General Procurement Notice shall include posting
in English at MCA-Namibia's Web site (or such other appropriate Web
site designated by MCA-Namibia and approved by MCC), dgMarket and UNDB
Online.\46\ MCA-Namibia shall also publish the General Procurement
Notice in a newspaper of wide circulation in the Republic of Namibia
and in such other media outlets as appropriate or as requested from
time to time by MCC.
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\46\ UNDB is a publication of the United Nations. Subscription
information is available from: Development Business, United Nations,
GCPO Box 5850, New York, NY 10163-5850, USA (Web site: http://www.devbusiness.com; e-mail: [email protected]); Development
Gateway Market is an electronic portal of Development Gateway
Foundation, 1889 F Street, NW., Washington, DC 20006, USA (Web site:
http://www.dgmarket.com).
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2.5.2 Request for Expressions of Interest (EOI), Request for
Proposals (RFP) or Request for Consultant Qualifications (RCQ) shall be
advertised as Specific Procurement Notices (SPN). For contracts valued
less than or equal to US$500,000, such requests shall be published in
at least one newspaper of national circulation in the Republic of
Namibia and posted at MCA-Namibia's Web site (or such other appropriate
Web site designated by MCA-Namibia and approved by MCC). For contracts
valued over US$500,000, MCA-Namibia must also post the Specific
Procurement Notice at UNDB Online and at the dgMarket Web site.
Publication in local print and broadcast and other national and
international media is encouraged as long as the posting does not pre-
date the required postings. The text of the notice, whether an EOI, an
RFP or an RCQ may be subject to review by MCC. Notification shall be
given in sufficient time to enable prospective consultants to obtain
information, or the relevant solicitation documents, and prepare and
submit their responses, taking into consideration the estimated value
of the contract and period of advance notice given with the General
Procurement Notice.\47\
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\47\ Also see Paragraph 2.13 of Section 1.B of these Rules.
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Short List of Consultants
2.6 At its discretion, MCA-Namibia may advertise for expressions of
interest and invite only short-listed firms or individuals to submit
proposals or qualifications as appropriate for the selection procedure
chosen for the particular procurement, or MCA-Namibia may begin the
procurement with an open request for proposals or consultation
qualifications. When MCA-Namibia chooses to begin a procurement with a
shortlisting procedure, MCA-Namibia is responsible for preparation of
the short list. There is no maximum limit to the number of firms that
may be short-listed and care should be taken not to eliminate any
qualified participants from competing for the consultant contract.
Consideration for shortlisting must be given to all firms or
organizations--national and international--expressing interest and
possessing the relevant qualifications. The method for developing a
short list shall be fair and objective according to pre-announced
criteria.
2.7 Reserved.
2.8 Selection based upon Consultants Qualifications is generally
used for small assignments.\48\
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\48\ Dollar thresholds defining ``small'' shall be determined in
each case, taking into account the nature and complexity of the
assignment, but generally will not exceed US$200,000.
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Preparation and Issuance of the Request for Proposals (``RFP'')
2.9 The RFP shall include (a) a Letter of Invitation, (b)
Information to Consultants, (c) the TOR, and (d) the proposed contract.
MCA-Namibia shall use the applicable Standard Proposal Documents, as
approved byMCC pursuant to Part 3 of these Rules, as may be modified to
address project-specific conditions, subject to MCC approval when the
change is material. MCA-Namibia may use an electronic system to
distribute the RFP, provided that MCC is satisfied with the adequacy of
such system. If the RFP is distributed electronically, the electronic
system shall be secure to avoid modifications to the RFP and shall not
unfairly restrict the access of consultants to the RFP.
Letter of Invitation (``LOI'')
2.10 The LOI shall state the intention of MCA-Namibia to enter into
a contract for the provision of consultant services, the source of
funds, the details of MCA-Namibia and the date, time, and address for
submission of proposals.
Instructions to Consultants (``ITC'')
2.11 The ITC shall contain all necessary information that would
help consultants prepare responsive proposals, and shall bring as much
transparency as possible to the selection procedure by providing
information on the evaluation process and by indicating the evaluation
criteria and methodology and their relative weights and the minimum
passing quality score. The ITC may indicate an estimate of the level of
key staff inputs (in staff time) required of the consultants or may
provide the total budget, but neither item of information is required.
The ITC shall specify the proposal validity period, which should be
adequate for the evaluation of proposals, decision on award, MCC
review, and finalization of contract negotiations. A detailed list of
the information that should be included in the ITC is provided in
Appendix 2 of this Section 1.B.
Contract
2.12 Sub-Section 1.B.IV of these Rules briefly discusses the most
common types of contracts. MCA-Namibia shall use an appropriate form of
contract acceptable to MCC. Any changes to standard conditions shall be
introduced generally through the forms and procedures defined in the
Standard Proposal Documents. When the Standard Proposal Documents are
not appropriate (for example, for preshipment inspection and
procurement services), MCA-Namibia shall use other contract forms
acceptable to MCC.
Receipt of Proposals
2.13 MCA-Namibia shall allow enough time for the consultants to
prepare their proposals. The time allowed shall depend on the
assignment, the value of the contract, the difficulty of preparing a
technical proposal and the duration of the advance notice given with
posting of the General Procurement Notice. During this interval, the
firms may request clarifications about the information provided in the
RFP. MCA-Namibia shall provide these clarifications in writing and copy
them to all firms either registered or on the short list (who intend to
submit proposals). If necessary, MCA-Namibia shall extend the deadline
for submission of proposals. The technical and financial proposals
shall be submitted at the same time. No amendments to the technical or
financial proposals shall be accepted after the deadline. To safeguard
the integrity of the process, the technical and financial proposals
shall be
[[Page 46763]]
submitted in separate sealed envelopes. The technical envelopes shall
be opened immediately by a committee of officials drawn from the
relevant departments (technical, finance or legal, as appropriate),
after the closing time for submission of proposals. The financial
proposals shall remain sealed and shall be properly secured until they
are opened publicly. Any proposal received after the closing time for
submission of proposals shall be returned unopened after the time for
protest has expired. MCA-Namibia may use electronic systems permitting
consultants to submit proposals by electronic means, provided MCC is
satisfied with the adequacy of the system, including, inter alia, that
the system is secure, maintains the confidentiality and authenticity of
proposals submitted, uses an electronic signature system or equivalent
to keep consultants bound to their proposals, and only allows proposals
to be opened with due simultaneous electronic authorization of the
consultant and MCA-Namibia. In this case, consultants shall continue to
have the option to submit their proposals in hard copy.
Evaluation of Proposals: Consideration of Quality and Cost
2.14 The evaluation of the proposals shall be carried out in two
stages: 1. quality, 2. cost. Evaluators of technical proposals shall
not have access to the financial proposals until the technical
evaluation, including any required MCC reviews and approvals, is
concluded. Financial proposals shall be opened only thereafter. The
evaluation shall be carried out in full conformity with the provisions
of the RFP.
Evaluation of the Quality
2.15 MCA-Namibia shall evaluate each technical proposal (using a
technical evaluation panel of generally three or more technical
specialists in the sector), taking into account appropriate evaluation
criteria as set out in the RFP. Evaluation criteria may include (a) the
consultant's relevant experience for the assignment, (b) the quality of
the methodology proposed, and (c) the qualifications of the key staff
proposed. The relative weight of each criterion shall be disclosed in
the RFP. The score for each proposal may be determined based upon the
total point system or other methodology for evaluating and comparing
responses fairly. When applying the total point method, each criterion
is marked on a scale of 1 to 100 according to the specific needs of the
assignment.
2.16 MCA-Namibia may divide these criteria into sub-criteria. For
example, sub-criteria under methodology might be innovation and level
of detail. However, the number of sub-criteria should be limited to the
essential. MCC recommends against the use of exceedingly detailed lists
of sub-criteria that may render the evaluation a mechanical exercise
more than a professional assessment of the proposals. If the
shortlisting procedure was applied, the weight given to experience can
be relatively modest, since this criterion has already been taken into
account during the shortlisting process. More weight might be given to
the methodology in the case of more complex assignments (for example,
multidisciplinary feasibility or management studies).
2.17 Evaluation of key personnel is recommended. Since key
personnel ultimately determine the quality of performance, more weight
shall be assigned to this criterion if the proposed assignment is
complex. MCA-Namibia shall review the qualifications and experience of
proposed key personnel in their curricula vitae, which must be
accurate, complete, and signed by an authorized official of the
consultant firm and the individual proposed. The individuals might be
rated in the following three sub-criteria, as relevant to the task:
(a) General qualifications: General education and training, length
of experience, positions held, time with the consultant firm as staff,
experience in developing countries, and so forth;
(b) Adequacy for the assignment: education, training, and
experience in the specific sector, field, subject, and so forth,
relevant to the particular assignment; and
(c) Experience in the region: knowledge of the local language,
culture, administrative system, government organization, and so forth.
2.18 MCA-Namibia shall evaluate each proposal on the basis of its
responsiveness to the TOR. A proposal shall be considered unsuitable
and shall be rejected at this stage if it does not respond to important
aspects of the TOR or it fails to achieve a minimum technical score
specified in the RFP.
2.19 At the end of the process, MCA-Namibia shall prepare a
technical evaluation report of the ``quality'' of the proposals and, in
the case of contracts subject to prior review, submit it to MCC for its
review and approval. The report shall substantiate the results of the
evaluation and describe the relative strengths and weaknesses of the
proposals. All records relating to the evaluation, such as individual
mark sheets, shall be retained until completion of the Project and its
audit.
Evaluation of Financial Proposals
2.20 After the evaluation of quality is completed and the required
reviews and approvals have been issued, MCA-Namibia shall inform the
consultants who have submitted proposals of the technical points
assigned to each consultant and shall notify those consultants whose
proposals did not meet the minimum qualifying mark or were considered
nonresponsive to the RFP and the TOR that their financial proposals
will be returned unopened after the signature of the contract. MCA-
Namibia shall simultaneously notify the consultants that have secured
at least the minimum qualifying mark of the date, time, and place set
for opening the financial proposals. If the procurement is on the
critical path for implementation of the Compact, the opening date may
be defined to allow very short notice for consultants to make
arrangements to attend the opening of the financial proposals. In such
case, MCA-Namibia shall arrange for the record of the proceedings of
the opening to be signed by at least two independent witnesses. The
financial proposals shall be opened publicly in the presence of
representatives of the consultants who choose to attend (in person or
online). The name of the consultant, the technical points, and the
proposed prices shall be read aloud (and posted online when electronic
submission of proposals is used) and recorded when the financial
proposals are opened. MCA-Namibia shall also prepare the minutes of the
public opening and a copy of this record shall be included in the
record of the procurement and provided to all consultants who submitted
proposals. A copy of the record shall be sent to MCC when the proposed
award is subject to prior review by MCC.
2.21 MCA-Namibia shall then review the financial proposals. If
there are any arithmetical errors, they shall be corrected. For the
purpose of comparing proposals, the RFP shall require that all
proposals be stated in the same currency (local currency of the
Republic of Namibia, or US$ or a combination of the two) as required in
the RFP. If there is a need to make a conversion between the two
allowable currencies, the RFP shall specify the source of the exchange
rate to be used and the date of that exchange rate, provided that the
date shall not be earlier than four weeks prior to the deadline for
submission of proposals, nor later than the original date of expiration
of the period of validity of the proposal. Any proposal that deviates
from the currency
[[Page 46764]]
requirement as stated in the RFP may be rejected as non-responsive.
2.22 For the purpose of evaluation, the financial proposals shall
include or exclude local identifiable direct or indirect taxes as
instructed in the RFP. The financial proposal shall include all
consultants' remuneration and other expenses such as travel,
translation, report printing, or secretarial expenses. When the total
point evaluation methodology is used, the financial proposal with the
lowest price may be given a financial score of 100 and other proposals
given financial scores that are inversely proportional to their prices.
Alternatively, a directly proportional or other methodology may be used
in allocating the marks for the financial proposal. The methodology to
be used shall be described in the RFP.
Combined Quality and Price Evaluation
2.23.1 The total score shall be obtained by weighing the quality
and price scores and adding them. The weight for the financial proposal
shall be assigned, taking into account the complexity of the assignment
and the relative importance of quality. The proposed weightings for
quality and price shall be specified in the RFP. The firm obtaining the
highest total score shall be invited for negotiations.
2.23.2 When the procurement is subject to MCC prior review for
proposed award, MCA-Namibia, before inviting the firm obtaining the
highest total score for negotiations, shall furnish to MCC for its
review and approval a full description of the procurement process
including an account of all protests and appeals and other significant
problems or defects during the process and a description of how these
were resolved.
Negotiations and Award of Contract
2.24 Negotiations shall include discussions of the TOR, the
methodology, staffing, inputs by MCA-Namibia and special conditions of
the contract. These discussions shall not substantially alter the
original TOR or the terms of the contract, lest the procurement process
be invalidated. Major reductions in work inputs should not be made
solely to meet the budget. The final TOR and the agreed methodology
shall be incorporated into ``Description of Services,'' which shall
form part of the contract.
2.25 The selected firm should not be allowed to substitute key
staff, unless both parties agree that undue delay in the selection
process makes such substitution unavoidable or that such changes are
critical to meet the objectives of the assignment. If this is not the
case and if it is established that key staff were included in the
proposal without confirming their availability, the firm may be
disqualified and the process continued with the next ranked firm. The
key staff proposed for substitution shall have qualifications equal to
or better than the key staff initially proposed.
2.26 Financial negotiations shall include clarification of the
consultants' tax liability in the Republic of Namibia (if any) to
ensure that the contract is consistent with the provisions of the
Compact and Supplemental Agreement. As payments under fixed-price
contracts are based on work done and delivery of outputs (or products),
the offered price shall include all costs (staff time, overhead,
travel, hotel, etc.). Consequently, if the selection method for a
fixed-price contract included price as a component, this price shall
not be negotiated. In the case of Time-Based Contracts, payment is
based on inputs (staff time and reimbursables) and the offered price
shall include staff rates and an estimation of the amount of
reimbursables. When the selection method includes price as a component,
negotiations of staff rates should not take place, except in special
circumstances, such as when staff rates offered are much higher than
rates typically charged by consultants in similar circumstances for
similar contracts. Consequently, the prohibition of negotiation does
not preclude the right of MCA-Namibia to ask for clarifications, and,
if fees are very high, to ask for change of fees, after due
consultation with MCC. Reimbursables are to be paid on actual expenses
incurred at cost, subject to limitations set out in MCC Cost
Principles, upon presentation of receipts and therefore are not subject
to negotiations. However, if MCA-Namibia wants to define ceilings for
unit prices of certain reimbursables (like travel or hotel rates), it
should indicate the maximum levels of those rates in the RFP or define
a per diem in the RFP. If the contract permits reimbursement of any
costs, the reimbursement rates shall be limited by applicable MCC Cost
Principles (``MCC Cost Principles'') found at the MCC Web site, http://www.mcc.gov.
2.27 If the negotiations fail to result in an acceptable contract,
MCA-Namibia shall terminate the negotiations and invite the next ranked
firm for negotiations. MCA-Namibia shall consult with MCC prior to
taking this step. The consultant shall be informed of the reasons for
termination of the negotiations. Once negotiations are commenced with
the next ranked firm, MCA-Namibia shall not reopen the earlier
negotiations. After negotiations are successfully completed and all
required reviews and approvals have been issued, MCA-Namibia shall
promptly notify other firms on the short list that they were
unsuccessful.
Publication of the Award of Contract
2.28 After the award of contract, MCA-Namibia shall post at UNDB
Online, at dgMarket and at MCA-Namibia's Web site (or such other
appropriate Web site designated by MCA-Namibia and approved by MCC) the
results, identifying the procurement, the name of the winning
consultant and the price, duration, and summary scope of the contract.
The same information shall be sent to all consultants who have
submitted proposals. The posting at UNDB Online and at dgMarket must be
done monthly and at MCA-Namibia's Web site (or such other appropriate
Web site designated by MCA-Namibia and approved by MCC) at least
weekly. The posting shall be in a format of a summarized table covering
the previous period. All such postings shall be in English.
Debriefing
2.29 In the publication of contract award referred to in Paragraph
2.28 above, MCA-Namibia shall specify that any consultant who wishes to
ascertain the grounds on which its proposal was not selected should
request an explanation from MCA-Namibia. MCA-Namibia shall promptly
provide the explanation as to why such proposal was not selected, in
writing and/or in a debriefing meeting, at the option of the
consultant. The requesting consultant shall bear all the costs of
attending such a debriefing.
Rejection of All Proposals, and Re-invitation
2.30 MCA-Namibia will be justified in rejecting all proposals only
if all proposals are nonresponsive because they present major
deficiencies in complying with the TOR, if they involve prices
substantially higher than the original estimate, or if contracting for
the services is no longer in the best interest of implementation of the
Compact. In the case of a higher price, the feasibility of increasing
the budget, or scaling down the scope of services with the firm should
be investigated in consultation with MCC. Before all the proposals are
rejected and new proposals are invited, MCA-Namibia shall notify MCC,
indicating the reasons for rejection of all proposals, and shall obtain
MCC's approval before proceeding with the rejection and the new
process. The new process may
[[Page 46765]]
include revising the RFP (including the short list) and the budget.
These revisions shall be agreed upon with MCC. Within two weeks of the
rejection of all proposals, MCA-Namibia shall post at dgMarket and MCA-
Namibia's Web site (or such other appropriate Web site designated by
MCA-Namibia and approved by MCC) notification of the cancellation of
the procurement. The notification shall identify the procurement and
state briefly the reasons for cancellation. The same information shall
be sent to all those who have submitted proposals. All such postings
shall be in English.
Confidentiality
2.31 Information relating to evaluation of proposals and
recommendations concerning awards shall not be disclosed to the
consultants who submitted the proposals, or to other persons not
officially concerned with the process, until the publication of the
award of contract, except as provided in Paragraphs 2.20 and 2.27 of
Section 1.B of these Rules.
III. Other Methods of Selection
General
3.1 This Sub-Section 1.B.III describes the selection methods other
than QCBS, and the circumstances under which they are acceptable. All
the relevant \49\ provisions of Sub-Section 1.B.II (QCBS) shall apply
whenever competition is used.
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\49\ All provisions of Sub-Section 1.B.II shall be applied with
the modifications and suppressions required by the method for
selecting consultants used in the specific case. Advertisement is
not required when single source selection is used.
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Quality Based Selection (``QBS'')
3.2 QBS may be appropriate for the following types of assignments:
(a) Complex or highly specialized assignments for which it is
difficult to define precise TORs and the required input from the
consultants, and for which MCA-Namibia expects the consultants to
demonstrate innovation in their proposals;
(b) Assignments that have a high downstream impact and in which the
objective is to have the best experts; and
(c) Assignments that can be carried out in substantially different
ways, such that proposals will not be comparable.
3.3 In QBS, the RFP may request submission of a technical proposal
only (without the financial proposal), or request submission of both
technical and financial proposals at the same time, but in separate
envelopes (two-envelope system). The procurement shall be advertised
according to the requirements set out in Paragraphs 2.5.1 and 2.5.2 of
Section 1.B, and may, at the discretion of MCA-Namibia, be preceded by
a shortlisting procedure (see Paragraphs 2.6 to 2.8 of Section 1.B).
The RFP may provide either the estimated budget or the estimated number
of key staff time, specifying that this information is given as an
indication only and that consultants shall be free to propose their own
estimates.
3.4 If technical proposals alone were invited, after evaluating the
technical proposals using the same methodology as in QCBS, MCA-Namibia
shall ask the consultant with the highest ranked technical proposal to
submit a detailed financial proposal. MCA-Namibia and the consultant
shall then negotiate the financial proposal and the contract. All other
aspects of the selection process shall be identical to those of QCBS,
including the publication of the award of contract as described in
Paragraph 2.28. If consultants were requested to provide financial
proposals initially together with the technical proposals, safeguards
shall be built in as in QCBS to ensure that, after the negotiations are
successfully concluded, the financial proposal of only the selected
firm is opened and the rest are returned unopened.
Selection Under a Fixed Budget (``FBS'')
3.5 This method is appropriate when the assignment is simple and
can be precisely defined. The RFP shall indicate the available budget
and request the consultants to provide their best technical and
financial proposals, which stay within the budget, in separate
envelopes. The TOR should be particularly well prepared to make sure
that the budget is sufficient for the consultants to perform the
expected tasks. The procurement shall be advertised according to the
requirements set out in Paragraphs 2.5.1 and 2.5.2 of Section 1.B, and
may, at the discretion of MCA-Namibia, be preceded by a shortlisting
procedure (see Paragraphs 2.6 to 2.8 of Section 1.B). Evaluation of all
technical proposals shall be carried out first as in the QCBS method.
Then the financial proposals shall be opened in public and prices shall
be read aloud. Proposals that exceed the indicated budget shall be
rejected. The consultant who has submitted the highest ranked technical
proposal shall be selected and invited to negotiate a contract. The
publication of the Award of Contract shall be as described in Paragraph
2.28.
Least-Cost Selection (``LCS'')
3.6 This method is appropriate for selecting consultants for
assignments of a standard or routine nature (audits, engineering design
of noncomplex works, etc.) where well established practices and
standards exist. Under this method, a ``minimum'' qualifying mark for
the ``quality'' is established. Proposals, to be submitted in two
envelopes, are invited. The procurement shall be advertised according
to the requirements set out in Paragraphs 2.5.1 and 2.5.2 of Section
1.B, and may, at the discretion of MCA-Namibia, be preceded by a
shortlisting procedure (see Paragraphs 2.6 to 2.8 of Section 1.B).
Technical proposals are opened first and evaluated. Those securing less
than the minimum qualifying mark \50\ are rejected, and the financial
proposals of the rest are opened in public. The firm with the lowest
price shall then be selected and the publication of the award of
contract shall be as described in Paragraph 2.28. Under this method,
the minimum qualifying mark shall be established, understanding that
all proposals above the minimum compete only on ``price.'' The minimum
qualifying mark shall be stated in the RFP.
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\50\ This method shall not be used as a substitute for QCBS and
shall be used only for the specific cases of very standard and
routine technical nature where the intellectual component is minor.
For this method the minimum qualifying mark shall be 70 points or
higher.
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Selection Based on the Consultants' Qualifications (``CQS'')
3.7 This method may be used for small \51\ assignments for which
the need for preparing and evaluating competitive proposals is not
justified. In such cases, MCA-Namibia shall prepare the TOR, request
information on the consultants' experience and competence relevant to
the assignment, and select the firm with the most appropriate
qualifications and references. The procurement shall be advertised
according to the requirements set out in Paragraphs 2.5.1 and 2.5.2 of
Section 1.B and may, at the discretion of MCA-Namibia, be preceded by a
shortlisting procedure (see Paragraphs 2.6 to 2.8 of Section 1.B). The
selected firm shall be asked to submit a combined technical and
financial proposal and then be invited to negotiate the contract.
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\51\ Dollar thresholds defining ``small'' shall be determined
and justified in writing in each case, taking into account the
nature and complexity of the assignment, but shall not exceed
US$$200,000 except in exceptional circumstances and specifically
approved by MCC.
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3.8 The publication of the award of contract shall be as described
in Paragraph 2.28.
[[Page 46766]]
Single-Source Selection (``SSS'')
3.9 Single-source selection of consultants does not provide the
benefits of competition with regard to quality and cost, lacks
transparency in selection, and could encourage unacceptable practices.
Therefore, single-source selection shall be used only in exceptional
cases. The justification for single-source selection shall be examined
in the context of the overall interests of MCA-Namibia and
implementation of the Compact and the responsibility of MCC to ensure
economy and efficiency and provide equal opportunity to all qualified
consultants.
3.10 Single-source selection may be appropriate only if it presents
a clear advantage over competition: (a) For tasks that represent a
natural continuation of previous work carried out by the firm (see
Paragraph 3.11), (b) in emergency cases, such as in response to
disasters and for consultant services required during the period of
time immediately following the emergency, (c) for very small \52\
assignments, or (d) when only one firm is qualified or has experience
of exceptional worth for the assignment.
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\52\ Dollar thresholds defining ``very small'' shall be
determined in each case, taking into account the nature and
complexity of the assignment, but shall not exceed USD2,000.
---------------------------------------------------------------------------
3.11 When continuity for downstream work is essential, the initial
RFP shall outline this prospect, and if practical, the factors used for
the selection of the consultant shall take the likelihood of
continuation into account. Continuity in the technical approach,
experience acquired, and continued professional liability of the same
consultant may make continuation with the initial consultant preferable
to a new competition, subject to satisfactory performance in the
initial assignment. For such downstream assignments, MCA-Namibia shall
ask the initially selected consultant to prepare technical and
financial proposals on the basis of the TOR furnished by MCA-Namibia,
which shall then be negotiated.
3.12 If the initial assignment was not awarded on a competitive
basis or if the downstream assignment is substantially larger in value,
a competitive process acceptable to MCC shall normally be followed in
which the consultant carrying out the initial work is not excluded from
consideration if it expresses interest. MCC will consider exceptions to
this rule only under special circumstances and only when a new
competitive process is not practicable.
3.13 The publication of the award of contract shall be as described
in Section 1.B, Paragraph 2.28.
3.14 Reserved.
Selection of Particular Types of Consultants
3.15 Reserved.
3.16 Reserved.
3.17 Procurement Agents and Fiscal Agents. MCA-Namibia may wish (or
be required by MCC) to employ, as its agents, firms that specialize in
handling procurement and/or financial management services. Such agents
shall be selected following these Rules (or such other procedures as
MCC may approve) and the procedures set out in the RFP requesting such
agent services. When performing procurement agent services, the
procurement agent shall follow the procurement procedures outlined in
the Compact and Supplemental Agreements, in the Procurement Plan
approved by MCC, and in these Rules.
3.18 Inspection Agents. MCA-Namibia may wish to employ inspection
agencies to inspect and certify goods prior to shipment or on arrival
in the Republic of Namibia. The inspection by such agencies usually
covers the quality and quantity of the goods concerned and
reasonableness of price. Inspection agencies shall be selected using
the procedures set out in the approved and adopted Procurement Plan.
3.19 Banks. MCA-Namibia may require the services of investment and
commercial banks, financial firms, and fund managers to implement the
Compact. To procure these services, the RFP shall specify clearly how
proposals will be presented and how they will be compared.
3.20 Auditors. Auditors typically carry out auditing tasks under
well defined TOR and professional standards. MCA-Namibia shall select
auditors according to the instructions provided to it by MCC including
MCC's Standard Proposal Document for auditor services.
3.21 Service Delivery Contractors. Projects in the social sectors
in particular may involve hiring of large numbers of individuals who
deliver services on a contract basis (for example, social workers, such
as nurses and paramedics). The job descriptions, minimum
qualifications, terms of employment, selection procedures, and the
extent of MCC review of these procedures and documents shall be
described in the Project documentation, and the contract shall be
included in the Procurement Plan approved by MCC.
IV. Types of Contracts and Important Provisions
Types of Contracts
4.1 Fixed-Price Contract (``Fixed-Price Contract''). Fixed-Price
Contracts may take various forms such as lump sum, unit price and
percentage fees.\53\ Fixed-Price Contracts are used mainly for
assignments in which the content and the duration of the services and
the required output of the consultants are clearly defined. They are
widely used for simple planning and feasibility studies, environmental
studies, detailed design of standard or common structures, preparation
of data processing systems, and so forth. Payments are linked to work
done in performance of the contract and to outputs (deliverables), such
as reports, drawings, bills of quantities, bidding documents, and
software programs. Fixed-Price Contracts are easier to administer than
Time-Based Contracts (defined below) because payments are due on
clearly specified outputs.
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\53\ Percentage contracts directly relate the fees paid to the
consultant to the estimated or actual project construction cost, the
cost of the goods procured or inspected or other measure of service
such as in the case of Procurement Agent, the value of contracts
procured or for Fiscal Agent the amount of funds disbursed.
Percentage contracts must be distinguished from cost-plus-
percentage-of-cost type contracts which are prohibited as such
contracts motivate a supplier, contractor or consultant to increase
its profits by increasing cost of performance.
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4.2 Time-Based Contract (``Time-Based Contract''). This type of
contract is appropriate when it is difficult to define the scope and
the length of services, either because the services are related to
activities by others for which the completion period may vary, or
because the input of the consultants required to attain the objectives
of the assignment is difficult to assess. Payments are based on agreed
hourly, daily, weekly, or monthly rates for staff (who are normally
named in the contract) and on reimbursable items using actual expenses
and/or agreed unit prices. Time-based contracts need to be closely
monitored and administered by MCA-Namibia to ensure that the assignment
is progressing satisfactorily and that payments claimed by the
consultants are appropriate. For contracts that permit reimbursement of
any costs, the reimbursement rates shall be limited by applicable MCC
Cost Principles. The costs shall also be subject to audit in accordance
with the requirements set out in the Compact and the Supplemental
Agreements.
4.3 Reserved.
[[Page 46767]]
4.4 Percentage Contract. These contracts are commonly used for
architectural services. They may also be used for procurement and
inspection agents. Percentage Contracts directly relate the fees paid
to the consultant to the estimated or actual Project construction cost,
or the cost of the goods procured or inspected. The contracts are
negotiated on the basis of market norms for the services and/or
estimated staff-month costs for the services, or competitively bid. It
should be borne in mind that in the case of architectural or
engineering services, Percentage Contracts implicitly lack incentive
for economic design and are hence discouraged. Therefore, the use of
such a contract for architectural services is recommended only it if is
based on a fixed target cost and covers precisely defined services (for
example, not works supervision).
4.5.1 Indefinite Delivery and Indefinite Quantity (``IDIQ'')
Contract. These contracts are used when MCA-Namibia needs to have ``on
call'' specialized services to provide advice on a particular activity,
the extent and timing of which cannot be defined in advance. These are
commonly used to retain ``advisers'' for implementation of complex
Projects, expert adjudicators for dispute resolution panels,
institutional reforms, procurement advice, technical troubleshooting,
and so forth, normally for a period of a year or more.
4.5.2 Requirements and Blanket Purchase Agreements (``BPA'')
Contracts. MCA-Namibia may use these contract types for reoccurring
needs.
Important Provisions
4.6 RFPs shall clearly state that firms must express the price for
their services in the currency stated in the RFP, which in every case
must be either U.S. dollars or the local currency of the Republic of
Namibia or a combination thereof. MCA-Namibia may require consultants
to state the portion of the price representing costs in the local
currency of the Republic of Namibia. Payment under the contract shall
be made in the currency or currencies as stated in the RFP.
4.7 Reserved.
4.8 Payment Provisions. Payment provisions, including amounts to be
paid, schedule of payments, and payment procedures, shall be set out in
the RFP to the extent possible. Payments may be made at regular
intervals, milestones and outputs as described in the RFP and agreed in
the contract.
4.9 Except as otherwise stated in any related provision of the
Compact and Supplemental Agreements, payments shall be made promptly in
accordance with the contract provisions. To that end:
(a) Consultants will be paid directly by the Fiscal Agent; and,
(b) The contract shall provide for the payment of interest if
payment is delayed beyond the time allowed in the contract due to the
fault of MCA-Namibia or its agents; the rate of charges shall be
specified in the contract.
4.10 Bid and Performance Securities. Bid and performance securities
are not always recommended for consultants' services. Their enforcement
is often subject to judgment calls, they can be easily abused, and they
tend to increase the costs to the consultant industry without evident
benefits, which are eventually passed on to MCA-Namibia. However, they
can be useful where Compact implementation would be damaged by poor
consultant performance.
4.11 Reserved.
4.12 Conflict of Interest. The consultant shall not receive any
remuneration in connection with the assignment except as provided in
the contract. The consultant and its affiliates shall not engage in
consultant or other activities that conflict with the interest of MCA-
Namibia under the contract. The contract shall include provisions
limiting future engagement of the consultant or other services
resulting from or directly related to the firm's consultant services in
accordance with the requirements of Paragraphs 1.9 and 1.10 of Section
1.B of these Rules.
4.13 Professional Liability. The consultant is expected to carry
out its assignment with due diligence and in accordance with prevailing
standards of the profession. As the consultant's liability to MCA-
Namibia will be governed by the applicable law, the contract need not
deal with this matter unless the parties wish to limit this liability.
If they do so, they should ensure that (a) there must be no such
limitation in case of the consultant's gross negligence or willful
misconduct; (b) the consultant's liability to MCA-Namibia may in no
case be limited to less than a multiplier of the total value of the
contract to be indicated in the RFP and in the special conditions of
the contract (the amount of such limitation will depend on each
specific case); \54\ and (c) any such limitation may deal only with the
consultant's liability toward MCA-Namibia and not with the consultant's
liability toward third parties.
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\54\ MCA-Namibia is encouraged to secure insurance for potential
risks above these limits.
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4.14 Staff Substitution. During an assignment, if substitution is
necessary (for example, because of ill health or because a staff member
proves to be unsuitable), the consultant shall propose other staff of
at least the same level of qualifications for approval by MCA-Namibia.
4.15 Applicable Law and Settlement of Disputes. The contract shall
include provisions dealing with the applicable law and the forum for
the settlement of disputes. Settlement of disputes shall take place in
the Republic of Namibia with the possibility for international
arbitration where the parties so agree.
V. Selection of Individual Consultants
5.1 Individual consultants are employed on assignments for which
(a) teams of personnel are not required, (b) additional outside (home
office) professional support is not required, and (c) the experience
and qualifications of the individual are the paramount requirement.
When coordination, administration, or collective responsibility may
become difficult because of the number of individuals, it would be
advisable to employ a firm.
5.2 Individual consultants are selected on the basis of their
qualifications for the assignment. The procurement shall be advertised
according to the requirements set out in Paragraphs 2.5.1 and 2.5.2 of
Section 1.B and may, at the discretion of MCA-Namibia, be preceded by a
shortlisting procedure (see Paragraphs 2.6 to 2.8 of Section 1.B).
Consultants do not need to submit proposals but shall be selected
through evaluation and comparison of qualifications. Individuals
considered for comparison of qualifications shall meet the minimum
relevant qualifications and those selected to be contracted by MCA-
Namibia shall be the best qualified and shall be fully capable of
carrying out the assignment. Capability is judged on the basis of
evidence of knowledge and past experience relevant to the services to
be provided and past performance based upon references and
recommendations.
5.3 From time to time, permanent staff or associates of a
consultant firm may be available as individual consultants. In such
cases, the conflict of interest provisions described in these Rules
shall apply to the parent firm.
5.4 Individual consultants may be selected on a sole-source basis
with due justification in exceptional cases such as for: (a) Tasks that
are a continuation of previous work that the consultant has carried out
and for which the consultant was selected competitively; (b) certain
assignments with total expected
[[Page 46768]]
duration of less than six months; (c) emergency situations resulting
from natural disasters; and (d) when the individual is the only
consultant qualified for the assignment.
Appendix 1: Review by MCC of the Selection of Consultants
Scheduling the Selection Process
1. If required by the thresholds set forth in Attachment 1 of these
Rules, MCC shall review the selection process for the hiring of
consultants proposed by MCA-Namibia in the Procurement Plan to ensure
compliance with the Compact and the Supplemental Agreements. Each
Procurement Plan typically covers a period of at least six months and
is updated at least semi-annually. Any revisions proposed to the
Procurement Plan shall be furnished to MCC for its prior approval.
Prior Review
The thresholds for review of procurement decisions prior to award
of a contract and any modification to such contract are set out in
Attachment 1 of these Rules.
Post Review
MCA-Namibia shall retain all documentation with respect to each
contract for at least five years after the closing date of the Compact
for examination by MCC, its auditors, its oversight authorities and
independent auditors of MCA-Namibia. This documentation shall include,
but shall not be limited to, the signed original of the contract, the
analysis of the respective proposals, and recommendations for award.
For contracts awarded on the basis of single-source selection,
documentation shall include the record of justification, the
qualifications and experience of the consultants, and the signed
original of the contract. MCA-Namibia shall also furnish such
documentation to MCC upon request. MCC shall, if it determines that the
contract was not awarded in accordance with the agreed procedures as
reflected in the Compact, including the Supplemental Agreements and
further elaborated in the Procurement Plan approved by MCC, or the
contract itself is not consistent with such procedures, promptly inform
MCA-Namibia that Paragraph 1.17 (Misprocurement) of Section 1.B of
these Rules shall apply and state the reasons for such determination.
Appendix 2: Instructions to Consultants
1. When procuring consultant services, MCA-Namibia shall use MCA-
Namibia Standard Solicitation Documents including the Standard Proposal
Document accepted by MCC. These documents shall include Instructions to
Consultants and TORs providing adequate information on the following
aspects of the assignment and the procurement process:
(a) A description of the assignment;
(b) Standard formats for the technical and financial proposals;
(c) The names and contact information of officials to whom
clarifications shall be addressed and with whom the consultants'
representative shall meet, if necessary;
(d) Details of the selection procedure to be followed, including
(i) a description of the two-stage process, if appropriate; (ii) a
listing of the technical evaluation criteria and weight given to each
criterion; (iii) the details of the financial evaluation; (iv) the
relative weight given to quality and price in the case of QCBS; (v) the
minimum pass score for quality; and (vi) the details on the public
opening of financial proposals;
(e) Estimate of the level of key staff inputs (in staff months)
required of the consultants or an indicative value of the proposed
contract, but generally not both;
(f) Indication of minimum experience, academic achievement, and so
forth, expected of key staff;
(g) Details and status of MCC funding;
(h) Information on negotiations; financial and other information
that shall be required of the selected firm during negotiation of the
contract;
(i) Deadline for submission of proposals;
(j) Currency(ies) in which the costs of services shall be
expressed, compared, and paid;
(k) Reference to any local laws that may be particularly relevant
to the proposed consultants' contract;
(l) Statement that the firm and any of its affiliates shall be
disqualified from providing downstream goods, works, consultant or non-
consultant services under the Project if, in the judgment of MCA-
Namibia or MCC, such activities constitute a conflict of interest with
the services provided under the assignment;
(m) Method in which the proposal shall be submitted, including the
requirement that the technical proposals and financial proposals be
sealed and submitted separately in a manner that shall ensure that the
technical evaluation is not influenced by price;
(n) Request that the invited firm (i) acknowledges receipt of the
RFP and (ii) informs MCA-Namibia whether or not it will be submitting a
proposal;
(o) If applicable, the short list of consultants being invited to
submit proposals and whether or not associations between short-listed
consultants are acceptable;
(p) Period for which the consultants' proposals shall be held valid
and during which the consultants shall undertake to maintain, without
change, the proposed key staff, and shall hold to both the rates and
total price proposed; in case of extension of the proposal validity
period, the right of the consultants not to maintain their proposal;
(q) Anticipated date on which the selected consultant shall be
expected to commence the assignment;
(r) Statement regarding tax liabilities in reference to and
accordance with the Compact and the Supplemental Agreements;
(s) Details of the services, facilities, equipment, and staff to be
provided by MCA-Namibia;
(t) Phasing of the assignment, if appropriate; likelihood of follow
up assignments;
(u) Procedure to handle clarifications about the information given
in the RFP;
(v) Any conditions for subcontracting part of the assignment; and
(w) Notice of Bid Challenge System.
Appendix 3: Guidance to Consultants
Consultants can find information about the Millennium Challenge
Corporation and its programs at www.mcc.gov and about MCC Programs in
the Republic of Namibia at the Web site established by MCA-Namibia (or
such other appropriate Web site designated by MCA-Namibia and approved
by MCC).
Part 2. Reports and Records
Complete and uniform procurement records shall be maintained
according to a standard format approved by MCC. MCA-Namibia shall also
maintain and submit quarterly to MCC a cumulative report of all
procurement activity (``Procurement Performance Report''), including
explanations of any variance from the Procurement Plan, in the format
mandated by MCC. The standard form with instructions is found on the
MCC Web site, http://www.mcc.gov.
Part 3. Standard Solicitation Documents
MCA-Namibia shall develop standard documents to invite quotations,
bids, proposals and qualifications (``Standard Solicitation
Documents'') including standard bidding and proposal documents
(``Standard Bidding Documents'' and ``Standard Proposal Documents'').
Any Standard Solicitation Document used to procure contracts valued
over US$100,000 must be available in English and is subject to review
and approval by MCC. The
[[Page 46769]]
instructions to bidders and consultants in Standard Solicitation
Documents must set out or reference the rules and procedures governing
the procurement. The instructions to bidders and instructions to
consultants must also state the currency or currencies for the quotes,
bids or financial proposals, as appropriate, and shall specify that
payment be made in either United States dollars or the local currency
of the Republic of Namibia.
The terms and conditions of procurement contracts shall be set out
in the applicable solicitation documents. The terms and conditions
shall include a provision stipulating the governing law and the
procedures for resolving contract disputes. The term and conditions
also shall include provisions as required or specified by these Rules
and other Compact documents including provisions that stipulate (a) MCC
status and rights; (b) limitations on use or treatment of MCC funding;
(c) procurement requirements; (d) records and information, access,
audits and reviews, and reports; (e) compliance with rules on
prohibited activities, restricted parties, and eligibility requirements
of prohibited source provisions in accordance with then-applicable U.S.
law, regulations and policy; (f) publicity, information and marketing;
(g) insurance requirements; (h) conflict of interest; and (i)
inconsistencies, as well as any other terms and conditions as
applicable to a contract or agreement of that nature or otherwise as
MCA-Namibia, solely upon the written instructions of MCC, may require
from time to time. A summary of the applicable provisions described in
(a) through (i) of this Section may be found on the MCC Web site at
http://www.mcc.gov/guidance/compact/general_provisions.pdf. MCC has
the right to review and approve any proposed contracts and any material
modifications to any executed contract.
Part 4. Review and Approval Requirements
Certain important procurement actions and decisions shall be
subject to prior review or approval by levels of authority within MCA-
Namibia or by MCC, as provided in Attachment 1 of these Rules. This
system of review and approval requirements is intended to ensure
adequate oversight and monitoring of MCC-funded procurement activities,
help detect errors when they can be easily corrected and to otherwise
avoid problems in such procurement activities. It is subject to
modification or exception at any time by MCC.
MCA-Namibia shall ensure that all procurement actions described in
Attachment 1 for goods, works, consultant and non-consultant services
in furtherance of the Compact and funded in whole or in part by MCC
funding shall be subject to the prior approval of the authorized
entity, officer(s) or bodies designated on Attachment 1 for the
corresponding type of action or dollar amount threshold, unless MCC has
granted a written exception to the approval requirement set out in
Attachment 1.
Notwithstanding the approval requirements set out in Attachment 1,
MCC shall have the right to take review and require prior approval of
any other procurement action, decision or document.
Part 5. Bid Challenge System
MCA-Namibia shall establish a bid challenge system that provides
suppliers, contractors and consultants the ability to seek review of
procurement actions and decisions (``Bid Challenge System''). The
organization, rules and procedures of such Bid Challenge System shall
be subject to MCC approval. The Bid Challenge System must include a
first level of review by MCA-Namibia with an appeal to a review body.
The review body must be impartial and independent and shall have no
interest (through financial, family, business or beneficial ownership
or otherwise) in the outcome of the procurement, nor be involved in or
related to the procurement process. The review body must follow clear
and transparent written procedures and shall issue a timely written
decision on any bid challenge that is timely and properly filed. The
review body must have the authority to order a correction of a
violation of the procurement principles and procedures or to order
compensation for loss or damage suffered by a successful challenger, to
the extent of the cost of preparation of the bid and the challenge. The
review body must also have the power to order suspension of a
procurement that is under challenge in order to preserve the commercial
opportunity pending the outcome of the review. Notice of the Bid
Challenge System must be set out in the solicitation documents.
Standard notice provisions shall be subject to MCC approval. MCA-
Namibia shall ensure that all bid challenges are accepted, reviewed and
processed in accordance with the rules and procedures of the Bid
Challenge System as approved by MCC.
Part 6. Subcontracting
(a) Every contract or subcontract for goods, works, consultant or
non-consultant services with any party that receives at least US$50,000
in the aggregate of MCC funding shall require the contracting party to
follow the fundamental procurement principles promoting transparency,
openness, competition and fairness to the maximum extent possible,
remaining consistent with the objectives and requirements of the
contract when subcontracting for goods, works, consultant or non-
consultant services.
(b) In every contract or subcontract valued in excess of
US$1,000,000, the contracting party shall be required to have written
procurement procedures that may be subject to review by MCA-Namibia and
MCC.
(c) Any contractor or subcontractor planning to subcontract for a
major item of goods, works, consultant or non-consultant services
(deemed major if valued in excess of US$100,000) shall seek MCA-
Namibia's prior written approval of the subcontractor.
Part 7. Amendments and Exceptions
These Rules will be amended, or otherwise modified, from time to
time, at MCC's request, to reflect changes in U.S. law, regulations or
policy related to the funding of procurements. In addition, these Rules
may be amended by written agreement of MCC and MCA-Namibia, and MCA-
Namibia will consider in good faith any amendment for the purpose of
ensuring continuity and compatibility between these Rules and the MCC
Program Procurement Guidelines. On a case by case basis, the MCC may
grant a waiver or exception to the Rules. Such waiver or exception must
be in writing and shall be effective only to the extent specifically
set forth in such writing.
Part 8. Publication of MCA-Namibia Procurement Rules
MCA-Namibia shall ensure that these Rules (including any amendments
thereto) are published on MCA-Namibia's Web site (or such other
appropriate Web site designated by MCA-Namibia and approved by MCC).
MCA-Namibia Procurement Rules Attachment 1
Approval Requirements
[[Page 46770]]
Review of Procurement Decisions--Goods, Works and Non-Consultant Services
----------------------------------------------------------------------------------------------------------------
Level of review (thresholds expressed in US$)
----------------------------------------------------------
Procurement procedure or Decision \55\ MCA-Namibia
method Director of Governing Body of MCA- MCC
Procurement Namibia \56\
----------------------------------------------------------------------------------------------------------------
Procurement Plans.... All............. All.................. All.
Amendments to All............. Substantial Deviation All.
Procurement Plans.
Pre-qualification............. Pre-qualification All............. None................. Above 1,000,000.
documents and
advertising
procedures.
Report with proposed All............. Above 500,000........ Above 500,000.
list of entities
qualified.
Record of Bid All............. All.................. All.
Challenges.
Competitive Bidding........... Bidding Documents.... All............. None................. Above 1,000,000
Goods. Above
5,000,000 Works.
Technical Evaluation All............. None................. Above 250,000.
or Review Report
with Proposed Award.
Final Contract....... All............. Above 250,000........ Above 250,000.
Record of Bid All............. All.................. All.
Challenges.
Limited Bidding............... Short list........... All............. None................. Above 100,000.
Bidding Documents.... All............. None................. Above 500,000.
Technical Evaluation All............. None................. Above 1,000,000.
or Review Report
with Proposed Award.
Final Contract....... All............. Above 1,000,000...... Above 1,000,000.
Record of Bid All............. All.................. All.
Challenges.
Shopping...................... Short list........... Over 2,000...... None................. None.
Record of Purchases.. Weekly.......... Monthly.............. None.
Record of Bid All............. All.................. Quarterly record
Challenges. of decisions.
Direct Contracting............ Proposed Award....... Over 2,000...... None................. Above 50,000.
Final Contract....... Over 2,000 Above 50,000......... Above 50,000.
(Under 2,000
review monthly
report).
Record of Bid All............. All.................. All.
Challenges.
Force Account................. Selection of using All............. All.................. All.
equipment owned by
or employees of
Government for
performing works.
Proposed contract.... All............. None................. All.
Final contract....... All............. All.................. All.
All Procurement Actions....... Contract All............. For all contract If increases
Modifications and awards approved value of
Change Orders. previously if Contract by 10%
increases value of or more.
Contract by 10% or
more, or raises a
contract which did
not require approval
above an approval
threshold or if
extends Contract
original term by 25%
or more without
value increase.
----------------------------------------------------------------------------------------------------------------
Review of Procurement Decisions--Consultant Services
----------------------------------------------------------------------------------------------------------------
Level of review (thresholds expressed in US$)
----------------------------------------------------------
Procurement procedure or Decision MCA-Namibia
method Director of Governing Body of MCA- MCC
Procurement Namibia
----------------------------------------------------------------------------------------------------------------
Procurement Plans.... All............. All.................. All.
Amendments to All............. Substantial Deviation All.
Procurement Plans.
Quality and Cost Based Request for All............. None................. Above 500,000.
Selection. Expression of
Interest.
Technical Evaluation All............. None................. Above 500,000.
Panel.
Short list........... All............. None................. Above 100,000.
Proposal Documents... All............. None................. Above 500,000.
Technical Evaluation All............. None................. Above 100,000.
Report.
Proposed Award....... All............. None................. Above 100,000.
Final Contract....... All............. Above 100,000........ Above 100,000.
Record of Bid All............. All.................. All.
Challenges.
Quality Based Selection and Request for All............. None................. Above 500,000.
Selection under Fixed Budget. Expression of
Interest.
[[Page 46771]]
Technical Evaluation All............. None................. Above 500,000.
Panel.
Short list........... All............. None................. Above 100,000.
Proposal Documents... All............. None................. Above 500,000.
Technical Evaluation All............. None................. Above 100,000.
Report for QBS only.
Proposed Award....... All............. Above 100,000........ Above 100,000.
Final Contract....... All............. Above 100,000........ Above 100,000.
Record of Bid All............. All.................. All.
Challenges.
Least-Cost Selection.......... Request for All............. None................. None.
Expression of
Interest.
Technical Evaluation All............. None................. None.
Panel.
Short list........... All............. None................. Above 100,000.
Proposal Documents... All............. None................. None.
Proposed Award....... All............. None................. Above 100,000.
Final Contract....... All............. Above 100,000........ None.
Record of Bid All............. All.................. All.
Challenges.
Selection Based on Request for All............. None................. None.
Consultant's Qualifications. Expression of
Interest.
Technical Evaluation All............. None................. None.
Panel.
Short list........... All............. None................. Above 50,000.
Standard Solicitation All............. None................. None.
Documents.
Technical Evaluation All............. None................. None.
Report.
Proposed Award....... All............. None................. None.
Final Contract....... All............. Above 50,000......... Above 50,000.
Record of Bid All............. All.................. All.
Challenges.
Single-Source Selection....... Proposed Award....... All............. None................. Above 50,000.
Final Contract....... All............. Above 50,000......... Above 50,000.
Record of Bid All............. All.................. All.
Challenges.
Selection of Individual Short list........... All............. None................. Above 50,000.
Consultants.
Technical Evaluation All............. None................. Above 50,000.
Panel.
Technical Evaluation All............. None................. None.
Report.
Proposed Award....... All............. None................. None.
Final Contract....... All............. Above 50,000......... Above 50,000.
Record of Bid All............. All.................. All.
Challenges.
All Procurement Actions....... Contract All............. For all contract If increases
Modifications and awards approved value of
Change Orders. previously if contract by 10%
increases value of or more.
contract, or raises
a contract which did
not require approval
above an approval
threshold or if
extends contract
original term by 25%
or more without
value increase.
----------------------------------------------------------------------------------------------------------------
MCA-Namibia Procurement Rules Attachment 2
Glossary of Terms
Bid Challenge System shall have the meaning set forth in Part 5.
---------------------------------------------------------------------------
\55\ Within each ``procurement Procedure or Method,'' each
separate ``Decision'' shown is an independent requirement, and all
requisite approvals must be received for each such ``Decision''
before proceeding, sequentially from top to bottom, to the next
``Decision'' requirement.
\56\ Notwithstanding the thresholds set forth in this Attachment
2 of these Rules with respect to the Governing Body of MCA-Namibia,
the Governing Body may exercise its authority to review any
procurement decision with prior notice to the principal officer of
MCA-Namibia.
---------------------------------------------------------------------------
Blanket Purchase Agreement or BPA shall have the meaning set forth
in Section 1B, Par. 4.5.2.
Consultant's Qualifications or CBS shall have the meaning set forth
in Section 1B, Par. 3.7.
Compact means the Millennium Challenge Compact entered into between
the United States of America, acting through the Millennium Challenge
Corporation, and the Republic of Namibia.
Competitive Bidding or CB shall have the meaning set forth in
Section 1A, Par. 1.3.
Direct Contracting shall have the meaning set forth in Section 1A,
Pars. 3.6 and 3.7.
dgMarket shall have the meaning set forth in Section 1A, Par 2.7.
Fixed Budget or FBS shall have the meaning set forth in Section 1B,
Par. 3.5.
Fixed Price Contract shall have the meaning set forth in Section
1B, Par. 4.1.
Force Account shall have the meaning set forth in Section 1A,
Par.3.8.
General Procurement Notice shall have the meaning set forth in
Section 1A, Par. 2.7.
Indefinite Delivery and Indefinite Quantity Contract or IDIQ
Contract shall have the meaning set forth in Section 1B, Par. 4.5.1.
[[Page 46772]]
Instructions to Consultants or ITC shall have the meaning set forth
in Section 1B, Par. 2.11.
Least-Cost Selection or LCS shall have the meaning set forth in
Section 1B, Par. 3.6.
Letter of Invitation or LOI shall have the meaning set forth in
Section 1B, Par. 2.10.
Limited Bidding or LB shall have the meaning set forth in Part 1A,
Par.3.2.
MCA-Namibia means the National Planning Commission of the Republic
of Namibia, in its capacity as the accountable entity responsible to
oversee, manage and implement the Program, on behalf of the Republic of
Namibia.
MCC means the Millennium Challenge Corporation.
MCC Cost Principles means MCC's ``Cost Principles for Cost-
Reimbursement Contracts under MCC-Financed Grants'' and ``Cost
Principles for Government Affiliates Involved in MCC Compact
Implementation,'' both located on MCC's Web site at http://www.mcc.gov.
Performance Based Procurement or Output Based Procurement shall
have the meaning set forth in Section 1A, Par. 3.14.
Procurement Plan shall have the meaning set forth in Section 1A,
Par. 1.16.1.
Procurement Performance Report shall have the meaning set forth in
Part 2.
Procurement Principles shall have the meaning set forth in Section
1A, Par 1.2.1 and Section 1B, Par. 1.4.1.
Procurement Rules or Rules shall have the meaning set forth in Part
1, Preamble.
Project(s) shall have the meaning set forth in Part 1, Preamble.
Quality Based Selection or QBS shall have the meaning set forth in
Section 1B, Pars. 3.2 thru 3.2.
Quality Cost Based Selection or QCBS shall have the meaning set
forth in Section 1B, Par. 1.5.
Request for Expression of Interest or EOI shall have the meaning
set forth in Section 1B, Par. 2.5.2.
Request for Proposals or RFP shall have the meaning set forth in
Section 1B, Par. 2.9.
Single-Source Selection or SSS shall have the meaning set forth in
Section 1B, Pars. 3.9 thru 3.13.
Shopping shall have the meaning set forth in Section 1A, Par. 3.5.
Specific Procurement Notice shall have the meaning set forth in
Section 1A, Par. 2.8 and Section 1B, Par. 2.5.2.
Standard Bidding Documents shall have the meaning set forth in Part
3.
Standard Proposal Documents shall have the meaning set forth in
Part 3.
Standard Solicitation Documents shall have the meaning set forth in
Part 3.
Supplemental Agreement shall have the meaning set forth in Section
1A, Par. 3.10.
Terms of Reference or TOR shall have the meaning set forth in
Section 1B, Par. 2.3.
Time-Based Contract shall have the meaning set forth in Section 1B,
Par. 4.2.
Two-Stage Bidding shall have the meaning set forth in Section 1A,
Par. 2.6.
UNDB Online shall have the meaning set forth in Section 1A, Par.
2.7.
[FR Doc. E8-18201 Filed 8-8-08; 8:45 am]
BILLING CODE 9211-03-P