Notice: Millennium Challenge Act: Mali Compact

Thursday,
November 30, 2006
Part II
Millennium
Challenge
Corporation
Notice of Entering into a Compact With
the Government of the Republic of Mali;
Notice
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69226 Federal Register / Vol. 71, No. 230 / Thursday, November 30, 2006 / Notices
MILLENNIUM CHALLENGE II. Program Industrial Park Project

CORPORATION The projects under the Compact are as The Industrial Park Project, located
follows: within the Airport domain, will develop
[MCC FR 06–20] 1. Airport Improvement Project: a platform for industrial activity
Establish an independent and secure (initially 100 hectares (ha)) to meet the
Notice of Entering Into a Compact With high and growing demand for well
link to the regional and global economy,
the Government of the Republic of Mali managed and serviced industrial land.
addressing the specific need of a
landlocked developing country. The 100 ha industrial park (the
AGENCY: Millennium Challenge ‘‘Industrial Park’’) is intended to be an
Corporation. 2. Industrial Park Project: Provide
properly managed and serviced land for anchor for a growing industrial sector in
ACTION: Notice. Mali, thereby alleviating a key
close to 200 businesses and leverage
reforms that will decrease the cost of constraint to value added production
SUMMARY: In accordance with Section and economic growth. Reliable
610(b)(2) of the Millennium Challenge doing business.
provision of utility services, including
Act of 2003 (Pub. L. 108–199, Division 3. Alatona Irrigation Project: Provide
electricity, water, and wastewater, will
D), the Millennium Challenge a catalyst for the transformation and
increase business productivity.
Corporation (MCC) is publishing a commercialization of family farms, The Industrial Park Project includes
summary and the complete text of the supporting Mali’s national development the following activities:
Millennium Challenge Compact strategy objectives to increase the • Primary and Secondary
between the United States of America, contribution of the rural sector to Infrastructure: The Industrial Park
acting through the Millennium economic growth and help achieve Project will fund primary and secondary
Challenge Corporation, and the national food security. infrastructure systems for the 100 ha
Government of the Republic of Mali. Airport Improvement Project Industrial Park, designed for potential
Representatives of the United States expansion to a larger 200 ha industrial
Government and the Government of the The Airport Improvement Project is zone. The primary infrastructure will
Republic of Mali executed the Compact intended to remove constraints to air include major road systems and utilities
documents on November 13, 2006. traffic growth and increase the Airport’s such as water supply mains and pump
efficiency in both passenger and freight stations. Secondary infrastructure will
Dated: November 16, 2006. handling through airside and landside
William G. Anderson, Jr., include roads leading into Industrial
infrastructure improvements, as well as Park sub-zones as well as lateral water/
Vice President & General Counsel (Acting), the establishment of appropriate
Millennium Challenge Corporation. drainage piping, etc. to service the
institutional mechanisms to ensure smaller parcels. The tertiary (on-lot)
Summary of Millennium Challenge effective management, security, infrastructure, to be financed and built
Compact With the Government of the operation, and maintenance of the by the industries locating in the
Republic of Mali Airport facilities over the long term. Industrial Park, includes interior roads
The Airport Improvement Project and parking, water supply taps/
I. Introduction includes the following activities: connections and fire protection,
The five-year, approximately $460 • Airside Infrastructure: electrical and telecommunications, and
million Millennium Challenge Compact Improvements will include wastewater collection (and possibly
aims to support policy reform and the reinforcement overlay to, and expansion pretreatment).
development of key infrastructure for of, the runway, taxiway, and apron • Resettlement: Resettlement
productive sectors, by addressing Mali’s areas; replacement of deteriorating activities, which must be consistent
constraints to growth and capitalizing navigational equipment; and upgrades with World Bank Operational Policy
on two of the country’s major assets, the of Airport security systems. 4.12 on Involuntary Resettlement,
Bamako-Sénou International Airport • Landside Infrastructure: require compensation for loss of
(the ‘‘Airport’’), a gateway for regional Improvements will be made to the livelihoods as a result of both physical
and international trade and the Niger existing passenger terminal and a new and economic displacement. The scope
River Delta for irrigated agriculture. passenger terminal will be constructed, of this displacement is larger than the
These investments will create a platform as well as support facilities, Airport 200 ha acquisition of land and
for increased production and roads, and parking lots. Certain utilities, compensation of users for the Industrial
productivity of agriculture and small- including water supply, solid waste Park. Common infrastructure facilities 1
and medium-sized enterprises, as well disposal facilities, wastewater require acquisition and clearing of land
as expand Mali’s access to markets and treatment, and power generation, are and rights of way outside the Industrial
trade. also planned to be constructed and Park, both inside and outside the
The MCC investments will be designed as joint systems to support Airport domain. To compensate peri-
strengthened by policy reforms and both the proposed investments at the urban cultivators who practice rain-fed
institutional support, such as formal Airport and the adjacent Industrial Park. agriculture in the Airport domain and
land titles for the rural poor, demand- • Institutional Strengthening: whose lands are required for the
driven rural advisory services, an Infrastructure improvements will be Industrial Park Project and the Airport
improved business environment, and accompanied by the establishment of Improvement Project, the Industrial
increased access to markets and trade. appropriate institutional mechanisms to Park Project will develop serviced
These institutional and infrastructure ensure effective management, operation garden plots offered on a long-term (e.g.,
investments will impact the poor in and maintenance of the Airport facilities 40-year) lease on land elsewhere in the
Mali, particularly Malian farmers and over the long term. These measures will
1 This infrastructure includes wastewater
small- and medium-sized entrepreneurs, involve both the management of the
treatment, power generation, water supply,
not only in project intervention zones Airport, as well as the wider regulatory conveyance and storage, and solid and hazardous
but, over time, on a regional and framework governing the civil aviation waste disposal to serve both the Industrial Park and
national scale. sector in Mali. the Airport.
Federal Register / Vol. 71, No. 230 / Thursday, November 30, 2006 / Notices 69227
Airport domain. Acquisition of other This project seeks to develop 16,000 ha • Resettlement, Social Infrastructure,
land for infrastructure and rights of way of newly irrigated lands in the Alatona and Social Services: This activity will
located outside the Airport domain will production zone of the Office du Niger compensate families residing in the
also require compensation, the nature of (the ‘‘ON’’), representing an almost 20 perimeter or with rights to land therein,
which will be determined during the percent increase of ‘‘drought-proof’’ consistent with World Bank Operational
development of the RAP, which will cropland. The Alatona Irrigation Project Policy 4.12 on Involuntary
cover the resettlement and will introduce innovative agricultural, Resettlement, by offering land in the
compensation issues related to both the land tenure, and water management irrigation perimeter or, if the land
Industrial Park Project and the Airport practices, as well as policy and option is not chosen, other
Improvement Project. organizational reforms aimed at compensation alternatives. This activity
• Institutional Strengthening: realizing the ON’s potential to serve as will provide social infrastructure to
Infrastructure improvements will be an engine of rural growth for Mali. serve these project affected persons as
accompanied by the establishment of The Alatona Irrigation Project well as incoming settlers and other
appropriate mechanisms that will includes the following activities: migrant families and will also support
• Niono-Goma Coura Road: This social services (primarily education and
ensure effective management, operation
activity will involve upgrading an 81 health staff) during the last three years
and maintenance of the facilities over
kilometer north-south road within the of the Compact.
the long term. These mechanisms will
national highway network from its • Agricultural Services: This activity
involve the management of the
current earth/gravel condition to a will support a range of agricultural,
Industrial Park itself, as well as paved standard. The investment will
administrative and regulatory reforms to institutional and related services to
also include an additional access spur to strengthen capacity and improve
alleviate current constraints to business the Alatona perimeter at the village of
development in Mali. To encourage the agricultural practice through applied
Dogofry.
development of small- and medium- agricultural research, extension and
• Irrigation Planning and
sized enterprises (‘‘SMEs’’), the Infrastructure: This activity will involve farmer training, support to farmer
Industrial Park Project will provide main conveyance system expansion, organizations, and support to water
business services such as access to Alatona irrigation system development, users associations.
financial and market information and and support to the ON agency on water • Financial Services: This activity
export facilitation services. The management. will encourage agricultural lending by
Industrial Park Project will also focus on • Land Allocation: The Alatona reducing the risks of extending credit in
how to ensure coordination in Irrigation Project will improve rural this newly developed zone, improving
operations and maintenance of shared land tenure security in Mali by transparency within the existing
utilities between the Airport and allocating newly developed, irrigated financial system, and strengthening the
Industrial Park operators. land to family farmers, women market capabilities of local financial
gardeners, and farming companies in institutions through a credit risk sharing
Alatona Irrigation Project
private ownership. These land program, microfinance credit bureau
The Alatona Irrigation Project is recipients will purchase the land by strengthening, financial institution
focused on increasing production and making annual payments over a 15–20 capacity building, and direct support to
productivity, increasing farmer incomes, year period. This activity consists of farmers.
improving land tenure security, land parcel creation, land rights The table below outlines the
modernizing irrigated production education, registration system upgrade, estimated MCC contribution to the
systems and mitigating the uncertainty land parcel allocation and titling, and program by year and category over the
from subsistence rain-fed agriculture. management of land revenues. term of the Compact.
III. Impacts constrained. Mali is landlocked and Ivorian crisis, 70 percent of Malian
heavily dependent on inadequate rail exports were leaving via the port of
The Airport Improvement Project will and road networks. Mali depends on Abidjan. In 2003, this amount dwindled
expand Mali’s access to markets and freight transport through ports in to less than 18 percent. Mali cannot
trade through improvements in the
unstable countries, such as Conakry, control overland routes to international
transportation infrastructure at the
Guinea (Bamako’s closest port, which is and regional markets. Therefore, air
Airport, as well as better management of
the national air transport system. 1000 km away) and Abidjan, Cote traffic has become Mali’s lifeline for
Evidence suggests that economic growth d’Ivoire. In the last few years, the transportation of both passengers and
and poverty reduction depend on instability in Cote d’Ivoire has export products.
enhanced access to markets and trade. dramatically limited Mali’s market Malian exports are predominantly
access. Before the outbreak of the
EN30NO06.000</GPH>
However, Mali’s access is severely agriculture based and depend on rural
small-scale producers, who would the Prime Minister’s office. MCA-Mali region. Consultations also took place
benefit from increased exports in high- will have a mixed public-private board with private sector and civil society
value products such as mangoes, green of directors responsible for program actors around Bamako, as well as
beans, and gum arabic. Additionally, oversight. The board will consist of communities surrounding the Airport
international tourists arriving at the eleven voting members and two non- domain, who emphasized the need for
Airport spend the majority of their time voting members. A management team improved infrastructure and increased
in rural areas, benefiting businesses in will have overall management economic activity to reduce poverty. In
far-away places such as Timbuktu, responsibility for the day-to-day addition, the consultative process
Mopti, and Djenné. Finally, the implementation of the program. MCA- involved participation of the U.S. NGO
improved management of the national Mali will remain accountable for the community, which has a strong
airport system will facilitate links to successful execution of the program presence in Mali, working on health,
primary destinations through regional while working through implementing education, agriculture, governance, and
air travel. entities, contractors and consultants, economic development programs
The Industrial Park Project will whose interaction will be facilitated by throughout the country.
leverage national reforms in the a fiscal agent and a procurement agent.
business sector, reducing the cost and B. GOM Commitment and Effectiveness
The Government of Mali (‘‘GOM’’) will
time to register a business, and enhance also create two advisory councils to MCC and GOM have been in
management and planning of the represent beneficiaries for each of the discussions over the following policy
industrial sector. The existing, heavily project sites—the Airport domain and and institutional reforms that will
congested, poorly managed, and the Alatona zone. In addition to the reinforce the implementation and
degraded ‘‘industrial zone’’ is fiscal agent and the procurement agent, sustainability of the program. Relevant
inappropriately located, lacks basic financial auditors and possibly a data reforms will serve as conditions
utilities and services, and has no room quality agent will provide external precedent in the disbursement
for expansion. The proposed Industrial controls. agreement. Below is a list of policy and
Park would become the anchor for a institutional reforms that have been
growing industrial sector in Mali and V. Other Highlights adopted or are pending:
alleviate a key constraint to value-added A. Consultative Process
production and economic growth. Airport Improvement Project
Businesses in the agro-processing sector, The program strongly supports the • GOM is in the process of
where Mali has a comparative third pillar of Mali’s Poverty Reduction restructuring several aspects of the civil
advantage, are likely to install in the Strategy Paper (‘‘PRSP’’)—development aviation sector to reflect the
Industrial Park. Growth generated by the of infrastructure and key support for recommendations of international
Industrial Park will generally be poverty productive sectors. The participatory organizations such as the International
reducing due to the link to small-scale process of the PRSP is characterized as Civil Aviation Organization (‘‘ICAO’’)
agricultural production. having ‘‘breadth’’ and being and the U.S. Federal Aviation
The Alatona Irrigation Project focuses ‘‘systematic.’’ The PRSP identifies the Administration (‘‘FAA’’). Among these
on a high-potential geographical zone in following as top constraints to economic reforms:
one of the poorest areas of central Mali. growth in its consultative process: Æ GOM recently (December 2005)
The Alatona Irrigation Project will • Climatic risks affecting the rural created an independent and financially
develop 16,000 ha of irrigable sector with consequences on the autonomous civil aviation agency, the
agricultural land in the Alatona zone of national economy. Agence Nationale de l’Aéronautique
the ON resulting in increased • High cost of factors of production. Civile (ANAC). Implementation of the
productivity and production, as well as • Fluctuations in prices of principal new agency is considered by GOM to be
diversification of high-value crops. import and export products. a high priority and a proposal has been
MCC’s investments will include • Isolation/landlocked nature of the made to include approximately $5
construction of a road, irrigation country. million in the national budget of Mali
infrastructure, and social infrastructure, The Compact was designed to address over the next three years for this
such as schools, clinics, and water and these constraints. Priorities were purpose.
sanitation facilities. This project will defined by the national PRSP structure Æ A new law is expected to be
provide social services, access to credit, and refinement occurred in consultation approved before the end of 2006 that
and agricultural extension and will help with civil society and the private sector. will modernize the operations and
establish and empower rural producer This consultative process enriched and management of Aéroports du Mali
organizations by giving them access to helped form the GOM proposal and its (‘‘AdM’’), the operator of the landside
information and productive assets. The development. The insistence on rural facilities. The text of the new law will
Alatona Irrigation Project will leverage land ownership and titling derived from grant AdM more flexibility, better define
policy reforms expected to have a broad dialogue with civil society and private its mandate, and lay the groundwork for
impact on the agricultural landscape sector actors. The need for inclusion of the eventual possibility of opening its
throughout Mali. a strong component of social services for capital to participation by third parties
Together, the three projects will result the Alatona zone was also reinforced and creation of a société d’économie
in increased industrial growth in the through the consultative process. mixte.
urban area, increased agricultural Members of the GOM, private sector,
and civil society (Malian and U.S. non- Industrial Park Project
production and productivity in the ON
and improved access to national, governmental organizations (‘‘NGOs’’)) • Law 05–019 was ratified by
regional, and international markets. played an active role in developing the Parliament in September 2005
Compact proposal. Local NGOs, establishing API–Mali, a new

IV. Program Management including village-level women’s investment promotion agency. This
The accountable entity (the ‘‘MCA- associations, were directly involved in agency will encourage and sustain
Mali’’) will be organized under the laws the process through numerous on-site foreign direct and national investment,
of Mali as a service rattaché attached to workshops and meetings in the ON improve the business climate, and
develop and regulate industrial zones local communities. MCC-supported facilitation services. In addition, the
and other economic activities. interventions will complement and project will focus on how to ensure
Implementation of this law will reinforce national strategies for poverty coordination in operations and
determine the agency’s exact role vis-à- reduction and economic growth. The maintenance of shared utilities between
vis the Industrial Park Project. program objectives draw from the the Airport and Industrial Park
• In response to the Doing Business following national development operators.
Indicators and the Multilateral strategies: PRSP, National Food Security Alatona Irrigation Project. The
Investment Guarantee Agency Strategy, ON Master Plan, and Alatona perimeter is located at the ‘‘tail
benchmarking study, GOM has Agriculture Orientation Law. end’’ of the ON gravity-fed irrigation
developed a short-term action plan to Airport Improvement Project. Under system. Long term success hinges on
improve Mali’s performance. Recently, the present division of jurisdictions, a effective and efficient management of
the Ministry of Investment Promotion number of entities have responsibility the entire system. The project addresses
has engaged the International Finance for the civil aviation sector in Mali in this issue by financing additional
Corporation to develop a legal general and the regulation, oversight, capacity on the main conveyance
regulatory framework, in addition to management, operation, and structures, as well as supporting the ON
frameworks relating to land allocation development of the Airport in to achieve sustainable management of
and taxation for industrial zone particular. In response to ICAO safety its entire stock of assets. In addition, the
activities in the country. and security audits and FAA Alatona Irrigation Project will address
• Among the various efforts that GOM assessments, GOM is in the process of the need to update the existing ON
is undertaking to address weaknesses in restructuring and consolidating this Master Plan, which is based on
the Malian business climate, an institutional framework. One major scenarios and assumptions developed in
important and innovative measure result has been the establishment of 2001, and upon which current
includes the establishment of the ANAC in December 2005, which now expansion plans are based. Maintenance
Presidential Investors’ Council (‘‘PIC’’) has financial and administrative of the main system and structures is the
in September 2004. The purpose of the independence. financial responsibility of GOM, which
PIC is to introduce a global business The Airport Improvement Project will
delegates this to the ON. Through a two-
perspective into policy formulation and reinforce the new civil aviation
tiered system of joint ON-farmer
implementation. In response to one of regulatory and oversight agency (ANAC)
committees, the ON also maintains the
its recommendations, GOM is targeting by providing technical assistance to
distributors and secondary canals
early 2007 to put in place a one-stop establish a new organizational structure,
within the five regional zones, while
shop for business registration housed in administrative and financial procedures,
farmer organizations manage the tertiary
the newly established API-Mali. staffing and training, and provision of
canals. The water fees collected would
equipment and facilities. Additionally,
Alatona Irrigation Project seem adequate to cover the operations
the project will rationalize and reinforce
• GOM has expressed its high-level and maintenance cost of the major
the Airport’s management and
commitment to increase land-tenure operations agency (AdM) by providing distribution systems within the zones.
security, to secure property rights and to technical assistance to establish a model The Niono-Goma Coura road is part of
increase issuance of land titles in the for the management of the Airport and GOM’s annual routine maintenance
Alatona zone. This represents a major the long-term future status and program. Current allocations should
policy departure for GOM. Although organizational structure of AdM. ensure routine maintenance on this
Alatona will not be the first experiment Industrial Park Project. In 1999, GOM road. Periodic maintenance funding
with land titles in the rural area, the passed Decree 99–252 declaring the (about every 10 years) is considered a
Alatona Irrigation Project is on an 7,194 ha of land encompassing the major challenge, although it is
unprecedented scale. Airport and the proposed Industrial anticipated that EU and World Bank
• GOM reforms have included (a) the Park as public domain land. Based on efforts to increase user fees will over
restructuring of the National Directorate this decree, the Ministry of Public time ensure such funding.
of Public Works to create the National Works and Transportation and Ministry The financial services activity will
Directorate of Roads, including the of Territorial Administration were provide microfinance institutions and
establishment of a unit for emergency named the responsible parties for the banks with training in agricultural
road works and (b) the establishment of management of the Airport domain. credit and other aspects of managing the
a Road Authority (as a successor to the Although AdM is viewed as the asset delivery of financial services to the
old Road Fund) with sole responsibility holding agency, GOM intends to enter inhabitants of Alatona. The project will
for managing the financing of road into a management contract with a create a new legal entity—the Revenue
maintenance activities. The initial steps private operator for the Industrial Park. Authority—to collect and manage the
to create a specialized autonomous Under the World Bank Mali Growth revenues generated through land
contracting agency for road Support Project, API-Mali will serve as payments. MCC funding will support
maintenance, the AGEROUTE, have also the public-sector regulator for the the costs of structuring this entity and
been made. These steps provide Industrial Park, while day-to-day facilitate some initial capacity building.
assurance to MCC of GOM’s management will be assigned to a Following this, the Revenue Authority
commitment to a sustainable road private entity (the ‘‘Operator’’) through will support itself through the land
maintenance program. an international, competitive revenues collected. This structure has
procurement process. MCC will support the potential to encourage local
C. Sustainability the recruitment and start-up of the institutions to organize themselves
The Mali program is embedded in the Operator, and will finance limited around project design and
institutional framework of Mali with the business support services to tenants. implementation, thereby building local
limited creation of parallel structures. It To ensure the creation of new SMEs, capacity for community planning and
reinforces GOM’s approach and the Industrial Park Project will help service delivery and helping to
commitment to democracy, these SMEs access financial and market strengthen nascent decentralized
decentralization, and empowerment of information, as well as export government.
Research and extension are assessment will be prepared in advance safety and security as a key element of
considered public goods and are funded of the irrigation EIA to expedite improving the performance and
by GOM. Over the life of the Compact, implementation of road improvements. affordability of air transportation and
demand-driven and fee-based research The Environmental Assessment (2003) optimizing its role as an engine of
and extension techniques will be tested. and updated Environmental economic and social development.
It is expected that the financially self- Management Plan (2005), which already Regional Civil Aviation Cooperation:
sufficient Alatona producers’ exist for road rehabilitation of a much ANAC has recently received a draft
organization as well as farmers’ groups longer stretch of the national route, will Common Civil Aviation Code and
and village associations will play a key be supplemented and updated for the Regulatory Texts from the West African
role in demanding and paying for these 80-kilometer section to be funded under Economic and Monetary Union. These
services. the Compact. Cumulative impacts of the documents were prepared as a model to
road as well as the irrigation activities be used by states belonging to regional
D. Environment and Social Assessment
will be addressed in the Alatona EIA. groupings, as part of an effort sponsored
Airport Improvement Project. A Both documents will include HIV/AIDS by ICAO to reduce the financial burden
Category A environmental impact mitigation plans. Two RAPs consistent for inspections on the part of countries
assessment (‘‘EIA’’), following MCC with World Bank Operational Policy with small aviation markets, by
Environmental Guidelines and Malian 4.12 on Involuntary Resettlement will establishing common civil aviation
law, will be required. The also be needed, one for the road activity regulations and the creation of regional
recommended wastewater treatment, and another for the irrigation activities. entities to assist countries.
expanded water supply and A prerequisite to preparing the Alatona U.S. Department of Transportation
distribution, solid and hazardous waste EIA is preparation of an overall land use (USDOT) Safe Skies for Africa (SSFA):
disposal, power supplies, drainage and and natural resources management plan The SSFA program is intended to
other infrastructure are currently to address the sustainability of the promote sustainable improvements in
conceived and sized to serve both the Alatona large-scale land development aviation safety and security, air
Airport and the Industrial Park. and population increase of about navigation, and to support Africa’s
Therefore, the Airport and the Industrial 60,000. integration into the global economy. The
Park will be treated together for SSFA program coordinates activities of
purposes of the EIA and the E. Donor Coordination
other agencies, such as the FAA, the
resettlement action plan (‘‘RAP’’), All three projects complement and Transportation Security Administration
because of their common infrastructure, leverage other donors’ efforts in Mali. and the National Transportation Safety
joint road access, shared space within The World Bank is also investing in Board, to improve the capacities of
the Airport domain and the cumulative activities to improve the Airport, African aviation organizations. MCC has
effects of both projects. The joint RAP Industrial Park, and business climate. signed a Memorandum of
(covering physical and economic Due to the World Bank’s funding gap, Understanding with USDOT to
displacement, both temporary and GOM requested additional funds from collaborate on projects such as the
permanent in areas inside and outside the MCC to support the larger and more present effort in Mali and discussions
the Airport domain) will be prepared costly infrastructure improvements. For regarding the coordination of our
based on the World Bank’s Operational the Alatona Irrigation Project, the Dutch respective projects have already taken
Policy 4.12 on Involuntary Development Agency, French place.
Resettlement. Some of the infrastructure Development Agency (‘‘AFD’’), the AFD: The AFD has supported various
poses implementation risks, because World Bank, and the U.S. Agency for initiatives in the ON for many years and
they are municipal facilities not yet International Development (‘‘USAID’’), is a lead donor in the donors group for
funded or built and located outside the in particular, have been working in the the ON. The proposed expansion of the
Airport domain. ON over the past several decades, main canal system will complement a
Industrial Park Project. The Industrial resulting in a more efficient,
planned AFD project to strengthen
Park will be assessed in the joint decentralized management structure,
certain sections of a primary canal.
Airport/Industrial Park EIA. In this while increasing production and Other Donors: The Mali program
context, the RAP will address productivity of the zone. Relevant donor complements other donors’ programs,
compensation for those cultivating and activities are described in more detail such as the Dutch Development
using land in the Industrial Park and in below. Agency’s activities in agricultural
other locations, both on and off the USAID: The Mali program builds on
diversification and marketing,
Airport domain. The approach and USAID’s Accelerated Economic Growth
agricultural processing, improved water
issues discussed above for the Airport and Trade Development Project (2003–
management, and institutional
Improvement Project with respect to 2012), which includes the Program in
strengthening in the ON. The Dutch
common infrastructure construction Development of Agricultural
have recently approved financing for a
impacts, the EIA, and the RAP remain Production, Mali Finance, and Trade
cold-storage facility in Bamako that will
the same. Mali.
Alatona Irrigation Project. Irrigation- World Bank: The Mali program be located in the Airport domain. This
related activities of the Alatona complements and reinforces several facility will be used for mangoes and
Irrigation Project, including activities ongoing or recently launched World other high value horticulture products,
external to the Alatona zone (such as Bank programs such as the Mali Growth such as green beans.
presettlement activities and expansion Support Project, the National Project for Millennium Challenge Compact
and enhancement of the overall Rural Infrastructure, the Agricultural Between the United States of America
conveyance capacity of the ON’s main Competitiveness and Diversification Acting Through the Millennium
canal system) will require a full Project, and the Rural Community Challenge Corporation and the
Category A EIA, under MCC Development Project. The World Bank Government of the Republic of Mali
Environmental Guidelines and Malian is also assisting in the funding of a
law. The Niono-Goma Coura road’s regional program in West and Central Table of Contents
Category B environmental and social Africa aimed at improving civil aviation Article I. Purpose and Term
Section 1.1 Compact Goal; Objectives Government corporation (‘‘MCC’’) and and trade (the ‘‘Compact Goal’’). The
Section 1.2 Projects the Government of the Republic of Mali key to advancing the Compact Goal is
Section 1.3 Entry into Force; Compact (the ‘‘Government’’) (referred to herein through the development of critical
Term
individually as a ‘‘Party’’ and infrastructure and policy reform for
Article II. Funding and Resources
Section 2.1 MCC Funding collectively, the ‘‘Parties’’). A productive sectors and addressing
Section 2.2 Government Resources compendium of capitalized terms Mali’s constraints to growth by
Section 2.3 Limitations on the Use or defined herein is included in Exhibit A capitalizing on two of its major assets,
Treatment of MCC Funding attached hereto. the Bamako-Sénou International Airport
Section 2.4 Incorporation; Notice; (the ‘‘Airport’’), the gateway for regional
Clarification Recitals and international trade, and the
Section 2.5 Refunds; Violation Whereas, MCC, acting through its agricultural potential of the Niger River
Section 2.6 Bilateral Agreement Board of Directors, has selected the (collectively, the ‘‘Program Objective’’).
Article III. Implementation
Republic of Mali (‘‘Mali’’) as eligible to The Parties have identified the
Section 3.1 Implementation Framework
Section 3.2 Government Responsiblities present to MCC a proposal for the use following project-level objectives (each,
Section 3.3 Government Deliveries of Millennium Challenge Account a ‘‘Project Objective’’) of this Compact to
Section 3.4 Government Assurances (‘‘MCA’’) assistance to help facilitate advance the Program Objective, and
Section 3.5 Implementation Letters; poverty reduction through economic thus the Compact Goal, each of which
Supplemental Agreements growth in Mali; is described in more detail in the
Section 3.6 Procurement; Awards of Whereas, the Government has carried Annexes attached hereto:
Assistance out a consultative process with the (a) Establish an independent and
Section 3.7 Policy Performance; Policy secure link to the regional and global
country’s private sector and civil society
Reforms
Section 3.8 Records and Information; to outline the country’s priorities for the economy through infrastructure
Access; Audits; Review use of MCA assistance and developed a investments at the Airport and policy
Section 3.9 Insurance; Performance proposal, which final proposal was reform of the national air transport
Guarantees submitted to MCC on October 28, 2005 system (the ‘‘Bamako-Sénou Airport
Section 3.10 Domestic Requirements (the ‘‘Proposal’’); Improvement Project Objective’’);
Section 3.11 No Conflict Whereas, the Proposal focused on, (b) Develop a platform for industrial
Section 3.12 Reports among others, increasing farmer activity to be located within the Airport
Article IV. Conditions Precedent; Deliveries incomes through modernizing Mali’s domain in response to the growing
Section 4.1 Conditions Prior to the Entry
agricultural sector, together with demand for well managed and serviced
into Force and Deliveries
Section 4.2 Conditions Precedent to MCC investments in developing industrial land (the ‘‘Industrial Park
Disbursements or Re-Disbursements transportation infrastructure and rural Project Objective’’); and
Article V. Final Clauses institutions, all designed to dismantle (c) Increase the agricultural
Section 5.1 Communications obstacles to realizing Mali’s agricultural production and productivity in the
Section 5.2 Representatives potential as an engine of economic Alatona zone of the Office du Niger
Section 5.3 Amendments growth; (‘‘ON’’) through the construction of a
Section 5.4 Termination; Suspension Whereas, MCC has evaluated the road, irrigation infrastructure, social
Section 5.5 Privileges and Immunities infrastructure, agricultural services,
Section 5.6 Attachments
Proposal and related documents to
determine whether the Proposal is land allocation and increased access to
Section 5.7 Inconsistencies
Section 5.8 Indemnification consistent with core MCA principles credit (the ‘‘Alatona Irrigation Project
Section 5.9 Headings and includes projects and related Objective’’).
Section 5.10 Interpretation activities that will advance the progress The Government expects to achieve,
Section 5.11 Signatures of Mali towards achieving poverty and shall use its best efforts to ensure
Section 5.12 Designation reduction through economic growth; the achievement of, the Compact Goal,
Section 5.13 Survival and Program Objective and Project
Section 5.14 Consultation Objectives during the Compact Term.
Section 5.15 MCC Status
Whereas, based on MCC’s evaluation
of the Proposal and related documents The Program Objective and the
Section 5.16 Language
Section 5.17 Publicity; Information and and subsequent discussions and individual Project Objectives are
Marking negotiations between the Parties, the collectively referred to herein as
Exhibit A: Definitions Government and MCC determined to ‘‘Objectives’’ and each individually as
Exhibit B: List of Certain Supplemental enter into this Compact to implement a an ‘‘Objective.’’
Agreements program using MCC Funding to advance
Schedule 2.1(a)(iii): Compact Implementation
Section 1.2 Projects
Mali’s progress towards poverty
Funding
reduction through economic growth (the The Annexes attached hereto describe
Annex I: Program Description the specific projects, the policy reforms
Schedule 1: Airport Improvement Project ‘‘Program’’);
Now, Therefore, in consideration of and other activities related thereto
Schedule 2: Industrial Park Project (each, a ‘‘Project’’) that the Government
Schedule 3: Alatona Irrigation Project the foregoing and the mutual covenants
Annex II: Summary of Multi-Year Financial and agreements set forth herein, the will carry out, or cause to be carried out,
Plan Parties hereby agree as follows: in furtherance of this Compact to
Exhibit A: Multi-Year Financial Plan achieve the Objectives and the Compact
Summary Article I. Purpose and Term Goal.
Annex III: Description of the M&E Plan
Section 1.1 Compact Goal; Objectives Section 1.3 Entry into Force; Compact
Millennium Challenge Compact The goal of this Compact is to reduce Term
This Millennium Challenge Compact poverty through economic growth in This Compact shall enter into force on
(the ‘‘Compact’’) is made between the Mali by increasing production and the date of the last letter in an exchange
United States of America, acting productivity of agriculture and small of letters between the Principal
through the Millennium Challenge and medium-sized enterprises, as well Representatives of each Party
Corporation, a United States as expanding Mali’s access to markets confirming that each Party has
completed its domestic requirements for Hundred Thousand United States Interest to any United States
entry into force of this Compact Dollars (US$ 9,200,000) (‘‘Compact Government account designated by
(including as set forth in Section 3.10) Implementation Funding’’) to facilitate MCC.
and that all conditions set forth in certain aspects of Compact (d) Currency; Conversion. The
Section 4.1 have been satisfied by the implementation as described in Government shall ensure that all MCC
Government and MCC (the ‘‘Entry into Schedule 2.1(a)(iii) attached hereto; Funding that is held in any Permitted
Force’’). This Compact shall remain in provided, such Compact Account shall be denominated in the
force for five (5) years from the Entry Implementation Funding shall be currency of the United States of
into Force, unless earlier terminated in subject to (A) the limitations on the use America (‘‘United States Dollars,’’
accordance with Section 5.4 (the or treatment of MCC Funding set forth ‘‘US$’’ or ‘‘$’’) prior to Re-Disbursement.
‘‘Compact Term’’). in Section 2.3, as if such provision were To the extent that any amount of MCC
in full force and effect, and (B) any other Funding held in United States Dollars
Article II. Funding and Resources requirements for, and limitations on the must be converted into the currency of
Section 2.1 MCC Funding use of, such Compact Implementation Mali for any purpose, including for any
Funding as may be required by MCC in Re-Disbursement or any transfer of MCC
(a) MCC’s Contribution. MCC hereby Funding into a Local Account, the
writing; provided further, that any
grants to the Government, subject to the Government shall ensure that such
Compact Implementation Funding
terms and conditions of this Compact, amount is converted consistent with the
granted in accordance with this Section
an amount not to exceed Four Hundred requirements of the Bank Agreement or
2.1(a)(iii) shall be included in, and not
Sixty Million and Eight Hundred Eleven any other Supplemental Agreement
additional to, the total amount of MCC
Thousand One Hundred Sixty Four Funding; and provided further, any between the Parties.
United States Dollars (US$ 460,811,164) obligation to provide such Compact (e) Guidance. From time to time, MCC
(‘‘MCC Funding’’) during the Compact Implementation Funding shall expire may provide guidance to the
Term to enable the Government to upon the expiration or termination of Government through Implementation
implement the Program and achieve the this Compact or five (5) years from the Letters on the frequency, form and
Objectives. conclusion of this Compact, whichever content of requests for MCC
(i) Subject to Sections 2.1(a)(ii), 2.2(b) occurs sooner, and in accordance with Disbursements and Re-Disbursements or
and 5.4(b), the allocation of MCC Section 5.4(e). Notwithstanding any other matter relating to MCC
Funding within the Program and among anything to the contrary in this Funding. The Government shall apply
and within the Projects shall be as Compact, this Section 2.1(a)(iii) shall such guidance in implementing this
generally described in Annex II or as provisionally apply, prior to Entry into Compact.
otherwise agreed upon by the Parties Force, upon execution of this Compact
from time to time. Section 2.2 Government Resources
by the Parties.
(ii) If at any time MCC determines that (b) Disbursements. (a) The Government shall provide or
a condition precedent to an MCC (i) Disbursements of MCC Funding. cause to be provided such Government
Disbursement has not been satisfied, MCC shall from time to time make funds and other resources, and shall
MCC may, upon written notice to the disbursements of MCC Funding (each take or cause to be taken such actions,
Government, reduce the total amount of such disbursement, an ‘‘MCC including obtaining all necessary
MCC Funding by an amount equal to the Disbursement’’) to a Permitted Account approvals and consents, as are specified
amount estimated in the applicable or through such other mechanism in this Compact or in any Supplemental
Detailed Budget for the Program, agreed by the Parties under and in Agreement to which the Government is
Project, Project Activity or sub-activity accordance with the procedures and a party or as are otherwise necessary
for which such condition precedent has requirements set forth in Annex I, the and appropriate effectively to carry out
not been met. Upon the expiration or Disbursement Agreement or as the Government Responsibilities or
termination of this Compact, (A) any otherwise provided in any other other responsibilities or obligations of
amounts of MCC Funding not disbursed Supplemental Agreement. the Government under or in furtherance
by MCC to the Government shall be (ii) Re-Disbursements of MCC of this Compact during the Compact
automatically released from any Funding. The release of MCC Funding Term and through the completion of any
obligation in connection with this from a Permitted Account (each such post-Compact Term activities, audits or
Compact and (B) any amounts of MCC release, a ‘‘Re-Disbursement’’) shall be other responsibilities.
Funding disbursed by MCC to the made in accordance with the procedures (b) If at any time during the Compact
Government as provided in Section and requirements set forth in Annex I, Term, the Government materially
2.1(b)(i), but not re-disbursed as the Disbursement Agreement or as reallocates or reduces the allocation in
provided in Section 2.1(b)(ii) or otherwise provided in any other its national budget or any other
otherwise incurred as permitted Supplemental Agreement. governmental authority of Mali at a
pursuant to Section 5.4(e) prior to the (c) Interest. Unless the Parties agree departmental, municipal, regional or
expiration or termination of this otherwise in writing, any interest or other jurisdictional level materially
Compact, shall be returned to MCC in other earnings on MCC Funding that reallocates or reduces the allocation in
accordance with Section 2.5(a)(ii). accrue (collectively, ‘‘Accrued Interest’’) its respective budget of the normal and
(iii) Notwithstanding any other shall be held in a Permitted Account expected resources that the Government
provision of this Compact and pursuant and accrue in accordance with the or such other governmental authority, as
to the authority of Section 609(g) of the requirements for the accrual and applicable, would have otherwise
Millennium Challenge Act of 2003, as treatment of Accrued Interest as received or budgeted, from external or
amended (the ‘‘Act’’), upon the specified in Annex I or any domestic sources, for the activities
conclusion of this Compact (and Supplemental Agreement. On a contemplated herein, the Government
without regard to the satisfaction of all quarterly basis and upon the shall notify MCC in writing within
of the conditions for Entry into Force termination or expiration of this fifteen (15) days of such reallocation or
required under Section 1.3), MCC shall Compact, the Government shall return, reduction, such notification to contain
make available up to Nine Million Two or ensure the return of, all Accrued information regarding the amount of the
reallocation or reduction, the affected or a substantial amount of production taxes imposed under the laws currently
activities, and an explanation for the outside the United States; or hereafter in effect in Mali during the
reallocation or reduction. In the event (iii) Conducting feasibility studies, Compact Term. This exemption shall
that MCC independently determines, research services, studies, travel to or apply to any use of MCC Funding and
upon review of the executed national from the United States, or providing Accrued Interest, and any other Program
annual budget that such a material insurance or technical and management Asset, including any Exempt Uses, and
reallocation or reduction of resources assistance, with the intention of to any work performed under or
has occurred, MCC shall notify the inducing United States firms to relocate activities undertaken in furtherance of
Government and, following such a substantial number of United States this Compact by any person or entity
notification, the Government shall jobs or cause a substantial displacement (including contractors and grantees)
provide a written explanation for such of production outside the United States; funded by MCC Funding, and shall
reallocation or reduction and MCC may (iv) Advertising in the United States apply to all taxes, tariffs, duties, and
(i) reduce, in its sole discretion, the total to encourage United States firms to other levies (each a ‘‘Tax’’ and
amount of MCC Funding or any MCC relocate a substantial number of United collectively, ‘‘Taxes’’), including:
Disbursement by an amount equal to the States jobs or cause a substantial (1) To the extent attributable to MCC
amount estimated in the applicable displacement of production outside the Funding, income taxes and other taxes
Detailed Budget for the activity for United States; on profit or businesses imposed on
which funds were reduced or (v) Training workers for firms that organizations or entities, other than
reallocated or (ii) otherwise suspend or intend to relocate a substantial number nationals of Mali, receiving MCC
terminate MCC Funding in accordance of United States jobs or cause a Funding, including taxes on the
with Section 5.4(b). substantial displacement of production acquisition, ownership, rental,
(c) The Government shall use its best outside the United States; disposition or other use of real or
(vi) Supporting a United States office personal property, taxes on investment
efforts to ensure that all MCC Funding
of an organization that offers incentives or deposit requirements and currency
is fully reflected and accounted for in
for United States firms to relocate a controls in Mali, or any other tax, duty,
the annual budget of Mali on a multi-
substantial number of United States jobs charge or fee of whatever nature, except
year basis.
or cause a substantial displacement of fees for specific services rendered; for
Section 2.3 Limitations on the Use or production outside the United States; or purposes of this Section 2.3(e), the term
Treatment of MCC Funding (vii) Providing general budget support ‘‘national’’ refers to organizations
for an organization that engages in any established under the laws currently or
(a) Abortions and Involuntary
activity prohibited above. hereafter in effect in Mali, other than
Sterilizations. The Government shall (c) Military Assistance and Training.
ensure that MCC Funding shall not be MCA–Mali or any other entity
The Government shall ensure that MCC established solely for purposes of
used to undertake, fund or otherwise Funding shall not be used to undertake,
support any activity that is subject to managing or overseeing the
fund or otherwise support the purchase implementation of the Program or any
prohibitions on use of funds contained or use of goods or services for military
in (i) paragraphs (1) through (3) of wholly-owned subsidiaries, divisions,
purposes, including military training, or or Affiliates of entities not registered or
section 104(f) of the Foreign Assistance to provide any assistance to the military, established under the laws currently or
Act of 1961 (22 U.S.C. 2151b(f)(1)–(3)), police, militia, national guard or other hereafter in effect in Mali;
a United States statute, which quasi-military organization or unit. (2) Customs duties, tariffs, import and
prohibitions shall apply to the same (d) Prohibition of Assistance Relating export taxes, or other levies on the
extent and in the same manner as such to Environmental, Health or Safety importation, use and re-exportation of
prohibitions apply to funds made Hazards. The Government shall ensure goods, services, or the personal
available to carry out Part I of such Act; that MCC Funding shall not be used to belongings and effects, including
or (ii) any provision of law comparable undertake, fund or otherwise support personally-owned automobiles, for
to the eleventh and fourteenth provisos any activity that is likely to cause a Program use or the personal use of
under the heading ‘‘Child Survival and significant environmental, health, or individuals who are neither citizens nor
Health Programs Fund’’ of division E of safety hazard. Unless MCC and the permanent residents of Mali and who
Public Law 108–7 (117 Stat. 162), a Government agree otherwise in writing, are present in Mali for purposes of
United States statute. the Government shall ensure that carrying out the Program or their family
(b) United States Job Loss or activities undertaken, funded or members, including all charges based on
Displacement of Production. The otherwise supported in whole or in part the value of such imported goods;
Government shall ensure that MCC (directly or indirectly) by MCC Funding (3) Taxes on the income or personal
Funding shall not be used to undertake, comply with environmental guidelines property of all individuals who are
fund or otherwise support any activity delivered by MCC to the Government or neither citizens nor permanent residents
that is likely to cause a substantial loss posted by MCC on its Web site or of Mali, including income and social
of United States jobs or a substantial otherwise publicly made available, as security taxes of all types and all taxes
displacement of United States such guidelines may be amended from on the personal property owned by such
production, including: time to time (the ‘‘Environmental individuals, to the extent such income
(i) Providing financial incentives to Guidelines’’), including any definition or property are attributable to MCC
relocate a substantial number of United of ‘‘likely to cause a significant Funding; and
States jobs or cause a substantial environmental, health, or safety hazard’’ (4) Taxes or duties levied on the last
displacement of production outside the as may be set forth in such transaction for the purchase of goods or
United States; Environmental Guidelines. services funded by MCC Funding,
(ii) Supporting investment promotion (e) Taxation. including sales taxes, tourism taxes,
missions or other travel to the United (i) Taxes. The Government shall value-added taxes or other similar
States with the intention of inducing ensure that the Program, MCC Funding charges. For purposes of this Section
United States firms to relocate a and Accrued Interest, and any other 2.3(e)(i)(4), the term ‘‘last transaction’’
substantial number of United States jobs Program Asset, shall be free from any refers to the last transaction by which
the goods or services were purchased for certificate which expressly includes, Government a copy of the text of any
use in the activities funded by MCC inter alia, the thirty (30) day refund such applicable law and a written
Funding. requirement of Section 2.3(e)(iii) above; explanation of any such applicable
(ii) This Section 2.3(e) shall apply, but and (D) any other appropriate policy.
is not limited, to (A) any transaction, Government action to facilitate the
service, activity, contract, grant or other Section 2.4 Incorporation; Notice;
administration of this Section 2.3(e).
implementing agreement funded in (f) Alteration. The Government shall Clarification
whole or in part by MCC Funding; (B) ensure that no MCC Funding, Accrued (a) The Government shall include, or
any supplies, equipment, materials, Interest or other Program Asset shall be ensure the inclusion of, all of the
property or other goods (referred to subject to any impoundment, rescission, requirements set forth in Section 2.3 in
herein collectively as ‘‘goods’’) or funds sequestration or any provision of law all Supplemental Agreements (except
introduced into, acquired in, used or now or hereafter in effect in Mali that for Supplemental Agreements with
disposed of in, or imported into or would have the effect of requiring or Providers defined in Section 2.4(b)(ii)
exported from, Mali by MCC, or by any allowing any impoundment, rescission below) to which MCC is not a party.
person or entity (including contractors or sequestration of any MCC Funding, (b) The Government shall ensure
and grantees) as part of, or in Accrued Interest or other Program Asset. notification of all of the requirements
conjunction with, MCC Funding or the (g) Liens or Encumbrances. The set forth in Section 2.3 to any Provider
Program; (C) any contractor, grantee, or Government shall ensure that no MCC and all relevant officers, directors,
other organization carrying out activities Funding, Accrued Interest or other employees, agents, representatives,
funded in whole or in part by MCC Program Asset shall be subject to any Affiliates, contractors, sub-contractors,
Funding; and (D) any employee of such lien, attachment, enforcement of grantees and sub-grantees of any
organizations (the uses set forth in judgment, pledge, or encumbrance of Provider. The term ‘‘Provider’’ shall
clauses (A) through (D) are collectively any kind (each a ‘‘Lien’’), except with mean (i) MCA-Mali, (ii) any Government
referred to herein as ‘‘Exempt Uses’’). the prior approval of MCC in Affiliate or Permitted Designee (other
(iii) If a Tax has been levied and paid accordance with Section 3(c) of Annex than MCA-Mali) that receives or utilizes
contrary to the requirements of this I. In the event of the imposition of any any Program Asset in carrying out
Section 2.3(e), whether inadvertently, Lien not so approved, the Government activities in furtherance of this
due to the impracticality of shall promptly seek the release of such Compact, or (iii) any third party who
implementation of this provision with Lien and, if required by final non- receives at least US$ 50,000 in the
respect to certain types or amounts of appealable order, shall pay any amounts aggregate of MCC Funding (other than
taxes, or otherwise, the Government owed to obtain such release; provided, employees of MCA-Mali) during the
shall refund promptly to an account however, the Government shall apply Compact Term or such other amount as
designated by MCC the amount of such national funds to satisfy its obligations the Parties may agree in writing,
Tax in the currency of Mali, within under this Section 2.3(g) and no MCC whether directly from MCC, indirectly
thirty (30) days (or such other period as Funding, Accrued Interest, or other through Re-Disbursements, or
may be agreed in writing by the Parties) Program Asset may be applied by the otherwise.
after the Government is notified in Government in satisfaction of its (c) In the event the Government or
writing of such levy and tax payment, obligations under this Section 2.3(g). any Provider requires clarification from
in accordance with procedures agreed (h) Other Limitations. The MCC as to whether an activity
by the Parties, whether by MCC or Government shall ensure that the use or contemplated to be undertaken in
otherwise; provided, however, the treatment of MCC Funding, Accrued furtherance of this Compact violates or
Government shall apply national funds Interest, and other Program Assets shall may violate any provision of Section
to satisfy its obligations under this be subject to and in conformity with 2.3, the Government shall notify MCC in
paragraph and no MCC Funding, such other limitations (i) as required by writing and provide in such notification
Accrued Interest, or any assets, goods, the applicable law of the United States a detailed description of the activity in
or property (real, tangible, or intangible) of America now or hereafter in effect question. In such event, the Government
purchased or financed in whole or in during the Compact Term, (ii) as shall not proceed, and shall use its best
part (directly or indirectly) by MCC advisable under or required by efforts to ensure that no relevant
Funding (collectively, the ‘‘Program applicable United States Government Provider proceeds, with such activity,
Assets’’) may be applied by the policies now or hereafter in effect and the Government shall ensure that
Government in satisfaction of its during the Compact Term, or (iii) to no Re-Disbursements shall be made for
obligations under this paragraph. which the Parties may otherwise agree such activity, until MCC advises the
(iv) At MCC’s request, the Parties in writing. Government or such Provider in writing
shall memorialize in a mutually (i) Utilization of Goods, Services and that the activity is permissible. MCC
acceptable Supplemental Agreement, Works. The Government shall ensure shall use good faith efforts to respond
Implementation Letter or other suitable that any Program Assets and any timely to such notification for
document the mechanisms for services, facilities or works funded in clarification.
implementing this Section 2.3(e), whole or in part (directly or indirectly)
including (A) a formula for determining by MCC Funding, unless otherwise Section 2.5 Refunds; Violation
refunds for Taxes paid, the amount of agreed by the Parties in writing, shall be (a) Notwithstanding the availability to
which is not susceptible to precise used solely in furtherance of this MCC, or exercise by MCC, of any other
determination; (B) a mechanism for Compact. remedies, including under international
ensuring the tax-free importation, use, (j) Notification of Applicable Laws law, this Compact or any Supplemental
and re-exportation of goods, services, or and Policies. MCC shall notify the Agreement:
the personal belongings of individuals Government of any applicable United (i) If any amount of MCC Funding,
(including all Providers) described in States law or policy affecting the use or Accrued Interest or any other Program
Section 2.3(e)(i)(2) above; (C) a treatment of MCC Funding, whether or Asset is used for any purpose prohibited
requirement for the provision by the not specifically identified in this under this Article II or otherwise in
Government of a tax-exemption Section 2.3, and shall provide to the violation of any of the terms and
conditions of this Compact, any Agreement by and between the ensure that no person or entity involved
guidance in any Implementation Letter, Government of the United States of in the selection, award, administration,
or any Supplemental Agreement America and the Government, dated oversight or implementation of any
between the Parties, then MCC, upon January 4, 1961, as amended from time contract, grant or other benefit or
written notice, may require the to time (the ‘‘Bilateral Agreement’’). If transaction funded in whole or in part
Government to repay promptly to MCC there are conflicts or inconsistencies (directly or indirectly) by MCC Funding
to an account designated by MCC, or to between any parts of this Compact and shall solicit or accept from or offer to a
others as MCC may direct, the amount the Bilateral Agreement, as either may third party or seek or be promised
of such misused MCC Funding or be amended from time to time, the (directly or indirectly) for itself or for
Accrued Interest, or the cash equivalent provisions of this Compact shall prevail another person or entity any gift,
of the value of any other misused over those of the Bilateral Agreement. gratuity, favor or benefit, other than
Program Asset, in United States Dollars, items of de minimis value and otherwise
plus any interest that accrued or would Article III. Implementation
consistent with such guidance as MCC
have accrued thereon, within thirty (30) Section 3.1 Implementation may provide from time to time.
days after the Government is notified, Framework (c) The Government shall not
whether by MCC or other duly designate any person or entity,
This Compact shall be implemented
authorized representative of the United including any Government Affiliate, to
by the Parties in accordance with this
States Government, of such prohibited implement, in whole or in part, this
Article III and as further specified in the
use; provided, however, the Government Compact or any Supplemental
Annexes and in relevant Supplemental
shall apply national funds to satisfy its Agreement between the Parties
obligations under this Section 2.5(a)(i) Agreements.
(including any Government
and no MCC Funding, Accrued Interest, Section 3.2 Government Responsibilities or any other
or any other Program Asset may be Responsibilities responsibilities or obligations of the
applied by the Government in Government under this Compact or any
(a) The Government shall have
satisfaction of its obligations under this Supplemental Agreement between the
principal responsibility for oversight
Section 2.5(a)(i); and Parties) or to exercise any rights of the
(ii) Upon the termination or and management of the implementation
of the Program (i) in accordance with Government under this Compact or any
suspension of all or any portion of this
the terms and conditions specified in Supplemental Agreement between the
Compact or upon the expiration of this
Compact, the Government shall, subject this Compact and relevant Parties, except as expressly provided
to the requirements of Sections 5.4(e) Supplemental Agreements, (ii) in herein or with the prior written consent
and 5.4(f), refund, or ensure the refund accordance with all applicable laws of MCC; provided, however, the
of, to such account designated by MCC then in effect in Mali, and (iii) in a Government may designate MCA-Mali
the amount of any MCC Funding, plus timely and cost-effective manner and in or, with the prior written consent of
any Accrued Interest, promptly, but in conformity with sound technical, MCC, such other mutually acceptable
no event later than thirty (30) days after financial and management practices persons or entities (each, a ‘‘Permitted
the Government receives MCC’s request (collectively, the ‘‘Government Designee’’) to implement some or all of
for such refund; provided, that if this Responsibilities’’). Unless otherwise the Government Responsibilities or any
Compact is terminated or suspended in expressly provided, any reference to the other responsibilities or obligations of
part, MCC may request a refund for only Government Responsibilities or any the Government or to exercise any rights
the amount of MCC Funding, plus any other responsibilities or obligations of of the Government under this Compact
Accrued Interest, then allocated to the the Government herein shall be deemed or any Supplemental Agreement
terminated or suspended portion; to apply to any Government Affiliate between the Parties, each in accordance
provided further, that any refund of and any of their respective directors, with the terms and conditions set forth
MCC Funding or Accrued Interest shall officers, employees, contractors, sub- in this Compact or such Supplemental
be to such account(s) as designated by contractors, grantees, sub-grantees, Agreement (referred to herein
MCC. agents or representatives. collectively as ‘‘Designated Rights and
(b) Notwithstanding any other (b) The Government shall ensure that Responsibilities’’). Notwithstanding any
provision in this Compact or any other no person or entity shall participate in provision herein or any other agreement
agreement to the contrary, MCC’s right the selection, award, administration or to the contrary, no such designation
under this Section 2.5 for a refund shall oversight of a contract, grant or other shall relieve the Government of such
continue during the Compact Term and benefit or transaction funded in whole Designated Rights and Responsibilities,
for a period of (i) five (5) years thereafter or in part (directly or indirectly) by for which the Government shall retain
or (ii) one (1) year after MCC receives MCC Funding, in which (i) the entity, ultimate responsibility. In the event that
actual knowledge of such violation, the person, members of the person’s the Government designates any person
whichever is later. immediate family or household or his or or entity, including any Government
(c) If MCC determines that any her business partners, or organizations Affiliate, to implement any portion of
activity or failure to act violates, or may controlled by or substantially involving the Government Responsibilities or
violate, any Section in this Article II, such person or entity, has or have a other responsibilities or obligations of
then MCC may refuse any further MCC direct or indirect financial or other the Government, or to exercise any
Disbursements for or conditioned upon interest, or (ii) the person or entity is rights of the Government under this
such activity, and may take any action negotiating or has any arrangement Compact or any Supplemental
to prevent any Re-Disbursement related concerning prospective employment, Agreement between the Parties, in
to such activity. unless such person or entity has first accordance with this Section 3.2(c),
disclosed in writing to the Government then the Government shall (i) cause
Section 2.6 Bilateral Agreement the conflict of interest and, following such person or entity to perform such
All MCC Funding shall be considered such disclosure, the Parties agree in Designated Rights and Responsibilities
United States assistance under the writing to proceed notwithstanding in the same manner and to the full
Economic and Technical Assistance such conflict. The Government shall extent to which the Government is
obligated to perform such Designated otherwise delivered or communicated to Affiliate or Permitted Designee) and any
Rights and Responsibilities; (ii) ensure MCC by or on behalf of the Government third party, including any of the
that such person or entity does not on or after the date of the submission of Providers or Permitted Designee, or (iii)
assign, delegate or contract (or the Proposal (i) are true, correct and Providers where neither MCC nor the
otherwise transfer) any of such complete in all material respects and (ii) Government is a party, before, on, or
Designated Rights and Responsibilities do not omit any fact known to the after the Entry into Force (each, a
to any person or entity; and (iii) cause Government that if disclosed would (1) ‘‘Supplemental Agreement’’). The
such person or entity to certify to MCC alter in any material respect the Government shall deliver, or cause to be
in writing that it will so perform such information delivered, (2) likely have a delivered, to MCC within five (5) days
Designated Rights and Responsibilities material adverse effect on the of its request, or such other period as
and will not assign, delegate, or contract Government’s ability to effectively may be specified in the Disbursement
(or otherwise transfer) any of such implement, or ensure the effective Agreement, the execution copy of any
Designated Rights and Responsibilities implementation of, the Program or any Supplemental Agreement to which MCC
to any person or entity without the prior Project or to otherwise carry out its is not a party.
written consent of MCC. responsibilities or obligations under or
Section 3.6 Procurement; Awards of
(d) The Government shall, upon a in furtherance of this Compact, or (3)
Assistance
request from MCC, execute, or ensure have likely adversely affected MCC’s
the execution of, an assignment to MCC determination to enter into this (a) The Government shall ensure that
of any cause of action which may accrue Compact or any Supplemental the procurement of all goods, services
to the benefit of the Government, a Agreement between the Parties. and works by the Government or any
Government Affiliate or any Permitted (b) Unless otherwise disclosed in Provider in furtherance of this Compact
Designee, including MCA-Mali, in writing to MCC, the MCC Funding made shall be consistent with the
connection with or arising out of any available hereunder is in addition to the procurement guidelines (the
activities funded in whole or in part normal and expected resources that the ‘‘Procurement Guidelines’’) reflected in
(directly or indirectly) by MCC Funding. Government usually receives or budgets the Disbursement Agreement or other
(e) The Government shall ensure that for the activities contemplated herein Supplemental Agreement between the
(i) no decision of MCA-Mali is modified, from external or domestic sources. Government (and a mutually acceptable
supplemented, unduly influenced or (c) This Compact does not conflict Government Affiliate or MCA-Mali) and
rescinded by any governmental and will not conflict with any MCC, which Procurement Guidelines
authority, except by a non-appealable international agreement or obligation to shall include the following
judicial decision, and (ii) the authority which the Government is a party or by requirements:
of MCA-Mali shall not be expanded, which it is bound. (i) Internationally accepted
restricted, or otherwise modified, except (d) No payments have been (i) procurement rules with open, fair and
in accordance with this Compact, any received by any official of the competitive procedures are used in a
Governing Document or any other Government or any other Governmental transparent manner to solicit, award and
Supplemental Agreement between the Affiliate in connection with the administer contracts, grants, and other
Parties. procurement of goods, services or works agreements and to procure goods,
(f) The Government shall ensure that to be undertaken or funded in whole or services and works;
all persons and individuals that enter in part (directly or indirectly) by MCC (ii) Solicitations for goods, services,
into agreements to provide goods, Funding, except fees, taxes, or similar and works shall be based upon a clear
services or works under the Program or payments legally established in Mali and accurate description of the goods,
in furtherance of this Compact shall do (subject to Section 2.3(e)) and consistent services or works to be acquired;
so in accordance with the Procurement with the applicable requirement of the (iii) Contracts shall be awarded only
Guidelines and shall obtain all laws of Mali or (ii) made to any third to qualified and capable contractors that
necessary immigration, business and party, in connection with or in have the capability and willingness to
other permits, licenses, consents and furtherance of this Compact, in violation perform the contracts in accordance
approvals to enable them and their of the United States Foreign Corrupt with the terms and conditions of the
personnel to fully perform under such Practices Act of 1977, as amended (15 applicable contracts and on a cost
agreements. U.S.C. 78a et seq.). effective and timely basis; and
(iv) No more than a commercially
Section 3.3 Government Deliveries Section 3.5 Implementation Letters; reasonable price, as determined, for
Supplemental Agreements example, by a comparison of price
The Government shall proceed, and
cause others to proceed, in a timely (a) MCC may, from time to time, issue quotations and market prices, shall be
manner to deliver to MCC all reports, one or more letters to furnish additional paid to procure goods, services, and
notices, certificates, documents or other information or guidance to assist the works.
deliveries required to be delivered by Government in the implementation of (b) The Government shall maintain,
the Government under this Compact or this Compact (each, an ‘‘Implementation and shall use its best efforts to ensure
any Supplemental Agreement between Letter’’). The Government shall apply that all Providers maintain, records
the Parties, in form and substance as set such guidance in implementing this regarding the receipt and use of goods,
forth in this Compact or in any such Compact. services and works acquired in
Supplemental Agreement. (b) The details of any funding, furtherance of this Compact, the nature
implementing and other arrangements and extent of solicitations of prospective
Section 3.4 Government Assurances in furtherance of this Compact may be suppliers of goods, services and works
The Government hereby provides the memorialized in one or more acquired in furtherance of this Compact,
following assurances to MCC that as of agreements or other instruments and the basis of award of contracts,
the date this Compact is signed: between (i) the Government (or any grants and other agreements in
(a) The information contained in the Government Affiliate or Permitted furtherance of this Compact.
Proposal and any agreement, report, Designee) and MCC, (ii) MCC or the (c) The Government shall use its best
statement, communication, document or Government (or any Government efforts to ensure that information,
including solicitations, regarding and reports as may be necessary or funded in whole or in part (directly or
procurement, grant and other agreement appropriate for the Government to indirectly) by MCC Funding or
actions funded (or to be funded) in effectively carry out its obligations undertaken in connection with the
whole or in part (directly or indirectly) under this Compact, including under Program, the utilization of goods and
by MCC Funding shall be made publicly Section 3.12. services purchased or funded in whole
available in the manner outlined in the (b) Government Books and Records. or in part (directly or indirectly) by
Procurement Guidelines or in any other The Government shall maintain, and MCC Funding, and (ii) Compact
manner agreed upon by the Parties in shall use its best efforts to ensure that Records, including those of the
writing. all Providers maintain, accounting Government or any Provider, relating to
(d) The Government shall ensure that books, records, documents and other activities funded or undertaken in
no goods, services or works that are evidence relating to this Compact furtherance of, or otherwise relating to,
funded in whole or in part (directly or adequate to show, to the satisfaction of this Compact. The Government shall use
indirectly) by MCC Funding are MCC, without limitation, the use of all its best efforts to ensure access by MCC,
procured pursuant to orders or contracts MCC Funding, including all costs the Inspector General, the United States
firmly placed or entered into prior to the incurred by the Government and the Government Accountability Office or
Entry into Force, except as the Parties Providers in furtherance of this relevant auditor, reviewer or evaluator
may otherwise agree in writing. Compact, the receipt, acceptance and or their respective representatives or
(e) The Government shall ensure that use of goods, services and works agents to all relevant directors, officers,
MCA-Mali and any other Permitted acquired in furtherance of this Compact employees, Affiliates, contractors,
Designee follows, and uses its best by the Government and the Providers, representatives and agents of the
efforts to ensure that all Providers agreed-upon cost sharing requirements, Government or any Provider.
follow, the Procurement Guidelines in the nature and extent of solicitations of (d) Audits.
procuring (including soliciting) goods, prospective suppliers of goods, services (i) Government Audits. Except as the
services and works and in awarding and and works acquired by the Government Parties may otherwise agree in writing,
administering contracts, grants and and the Providers in furtherance of this the Government shall, on at least a semi-
other agreements in furtherance of this Compact, the basis of award of annual basis, conduct, or cause to be
Compact, and shall furnish MCC Government and other contracts and conducted, financial audits of all MCC
evidence of the adoption of the orders in furtherance of this Compact, Disbursements and Re-Disbursements
Procurement Guidelines by MCA-Mali the overall progress of the covering the period from signing of the
no later than the time specified in the implementation of the Program, and any Compact until the earlier of the
Disbursement Agreement. documents required by this Compact or following December 31 or June 30 and
(f) The Government shall include, or any Supplemental Agreement between covering each six month period
ensure the inclusion of, the the Parties or reasonably requested by thereafter ending December 31 and June
requirements of this Section 3.6 into all MCC upon reasonable notice (‘‘Compact 30, through the end of the Compact
Supplemental Agreements between the Records’’). The Government shall Term, in accordance with the following
Government, any Government Affiliate maintain, and shall use its best efforts terms. As requested by MCC in writing,
or Permitted Designee or any of their to ensure that all Covered Providers the Government shall use, or cause to be
respective directors, officers, employees, maintain, Compact Records in used, or select or cause to be selected,
Affiliates, contractors, sub-contractors, accordance with generally accepted an auditor named on the approved list
grantees, sub-grantees, representatives accounting principles prevailing in the of auditors in accordance with the
or agents, on the one hand, and a United States, or at the Government’s ‘‘Guidelines for Financial Audits
Provider, on the other hand. option and with the prior written Contracted by Foreign Recipients’’ (the
approval by MCC, other accounting ‘‘Audit Guidelines’’) issued by the
Section 3.7 Policy Performance; Policy principles, such as those (i) prescribed Inspector General of the United States
Reforms by the International Accounting Agency for International Development
In addition to the specific policy and Standards Committee (an affiliate of the (the ‘‘Inspector General’’), and as
legal reform commitments identified in International Federation of approved by MCC, to conduct such
Annex I and the Schedules thereto, the Accountants) or (ii) then prevailing in annual audits. Such audits shall be
Government shall seek to maintain and Mali. Compact Records shall be performed in accordance with such
to improve its level of performance maintained for at least five (5) years Audit Guidelines and be subject to
under the policy criteria identified in after the end of the Compact Term or for quality assurance oversight by the
Section 607 of the Act, and the MCA such longer period, if any, required to Inspector General in accordance with
selection criteria and methodology resolve any litigation, claims or audit such Audit Guidelines. An audit shall
published by MCC pursuant to Section findings or any statutory requirements. be completed and delivered to MCC no
607 of the Act from time to time (‘‘MCA (c) Access. Upon the request of MCC, later than ninety (90) days after the first
Eligibility Criteria’’). the Government, at all reasonable times, period to be audited and no later than
shall permit, or cause to be permitted, ninety (90) days after each June 30th
Section 3.8 Records and Information; authorized representatives of MCC, the and December 31st thereafter, or such
Access; Audits; Reviews Inspector General, the United States other period as the Parties may
(a) Reports and Information. The Government Accountability Office, any otherwise agree in writing.
Government shall furnish to MCC, and auditor responsible for an audit (ii) Audits of U.S. Entities. The
shall use its best efforts to ensure that contemplated herein or otherwise Government shall ensure that
all Providers and any other third party conducted in furtherance of this Supplemental Agreements between the
receiving MCC Funding, as appropriate, Compact, and any agents or Government or any Provider, on the one
furnish to the Government (and the representatives engaged by MCC or a hand, and a United States non-profit
Government shall provide to MCC), any Permitted Designee to conduct any organization, on the other hand, state
records and other information required assessment, review or evaluation of the that the United States organization is
to be maintained under this Section 3.8 Program, the opportunity to audit, subject to the applicable audit
and such other information, documents review, evaluate or inspect (i) activities requirements contained in OMB
Circular A–133, notwithstanding any MCC, MCC shall include appropriate evaluations from financial sources other
other provision of this Compact to the audit requirements in such contracts or than MCC Funding.
contrary. The Government shall ensure agreements and shall, on behalf of the
Section 3.9 Insurance; Performance
that Supplemental Agreements between Government, unless otherwise agreed by
Guarantees
the Government or any Provider, on the the Parties, conduct the follow-up
one hand, and a United States for-profit activities with regard to the audit The Government shall, to MCC’s
Covered Provider, on the other hand, reports furnished pursuant to such satisfaction, insure or cause to be
state that the United States organization requirements. insured all Program Assets and shall
is subject to audit by the cognizant (viii) Audit by MCC. MCC retains the obtain or cause to be obtained such
United States Government agency, right to perform, or cause to be other appropriate insurance and other
unless the Government and MCC agree performed, the audits required under protections to cover against risks or
otherwise in writing. this Section 3.8 by utilizing MCC liabilities associated with the operations
(iii) Audit Plan. The Government Funding or other resources available to of the Program, including by requiring
shall submit, or cause to be submitted, MCC for this purpose, and to audit, Providers to obtain adequate insurance
to MCC no later than twenty (20) days conduct a financial review, or otherwise and post adequate performance bonds or
prior to the date of its adoption a plan, ensure accountability of any Provider or other guarantees. MCA-Mali or the
in accordance with the Audit any other third party receiving MCC Implementing Entity or Contractor, as
Guidelines, for the audit of the Funding, regardless of the requirements applicable, shall be named as the payee
expenditures of any Covered Providers, of this Section 3.8. on any such insurance and the
which audit plan, in the form and (e) Application to Providers. The beneficiary of any such guarantee,
substance as approved by MCC, the Government shall include, or ensure the including performance bonds, to the
Government shall adopt, or cause to be inclusion of, at a minimum, the extent permissible under applicable
adopted, no later than sixty (60) days laws unless otherwise agreed by the
requirements of:
prior to the end of the first period to be Parties. MCC, and to the extent it is not
(i) Paragraphs (a), (b), (c), (d)(ii),
audited (such plan, the ‘‘Audit Plan’’). named as the insured party, MCA-Mali
(d)(iii), (d)(v), (d)(vi), and (d)(viii) of this
(iv) Covered Provider. A ‘‘Covered shall be named as additional insureds
Section 3.8 into all Supplemental
Provider’’ is (1) a non-United States on any such insurance or other
Agreements between the Government,
Provider that receives (other than guarantee, to the extent permissible
any Government Affiliate, any Permitted
pursuant to a direct contract or under applicable laws unless otherwise
Designee or any of their respective agreed by the Parties. The Government
agreement with MCC) US$ 300,000 or
directors, officers, employees, Affiliates, shall ensure that any proceeds from
more of MCC Funding in any MCA-Mali
contractors, sub-contractors, grantees, claims paid under such insurance or
fiscal year or any other non-United
sub-grantees, representatives or agents any other form of guarantee shall be
States person or entity that receives,
directly or indirectly, US$ 300,000 or (each, a ‘‘Government Party’’), on the used to replace or repair any loss of
more of MCC Funding from any one hand, and a Covered Provider that Program Assets or to pursue the
Provider in such fiscal year, or (2) any is not a non-profit organization procurement of the covered goods,
United States Provider that receives domiciled in the United States, on the services, works, or otherwise; provided,
(other than pursuant to a direct contract other hand; however, at MCC’s election, such
or agreement with MCC) US$ 500,000 or (ii) Paragraphs (a), (b), (c), (d)(ii), and proceeds shall be deposited in a
more of MCC Funding in any MCA-Mali (d)(viii) of this Section 3.8 into all Permitted Account as designated by
fiscal year or any other United States Supplemental Agreements between a MCA-Mali and acceptable to MCC or as
person or entity that receives, directly or Government Party and a Provider that otherwise directed by MCC. To the
indirectly, US$ 500,000 or more of MCC does not meet the definition of a extent MCA-Mali is held liable under
Funding from any Provider in such Covered Provider; and any indemnification or other similar
fiscal year. (iii) Paragraphs (a), (b), (c), (d)(ii), provision of any agreement between
(v) Corrective Actions. The (d)(v) and (d)(viii) of this Section 3.8 MCA-Mali, on the one hand, and any
Government shall use its best efforts to into all Supplemental Agreements other Provider or other third party, on
ensure that Covered Providers take, between a Government Party and a the other hand, the Government shall
where necessary, appropriate and timely Covered Provider that is a non-profit pay in full on behalf of MCA-Mali any
corrective actions in response to audits, organization domiciled in the United such obligation; provided further, the
consider whether a Covered Provider’s States. Government shall apply national funds
audit necessitates adjustment of its own (f) Reviews or Evaluations. The to satisfy its obligations under this
records, and require each such Covered Government shall conduct, or cause to Section 3.9 and no MCC Funding,
Provider to permit independent auditors be conducted, such performance Accrued Interest, or Program Asset may
to have access to its records and reviews, data quality reviews, be applied by the Government in
financial statements as necessary. environmental and social audits, or satisfaction of its obligations under this
(vi) Audit Reports. The Government program evaluations during the Section 3.9.
shall furnish, or use its best efforts to Compact Term or otherwise and in
cause to be furnished, to MCC an audit accordance with the M&E Plan or as Section 3.10 Domestic Requirements
report in a form satisfactory to MCC for otherwise agreed in writing by the The Government shall proceed in a
each audit required by this Section 3.8, Parties. timely manner to seek ratification of this
other than audits arranged for by MCC, (g) Cost of Audits, Reviews or Compact as necessary or required by the
no later than ninety (90) days after the Evaluations. MCC Funding may be used laws of Mali, or similar domestic
end of the period under audit, or such to fund the costs of any audits, reviews requirement, in order that (a) this
other time as may be agreed by the or evaluations required under this Compact (and any Supplemental
Parties from time to time. Compact, including as reflected on Agreement to which MCC is a party)
(vii) Other Providers. For Providers Exhibit A to Annex II, and in no event shall be given the status of an
who receive MCC Funding pursuant to shall the Government be responsible for international agreement; (b) no laws of
direct contracts or agreements with the costs of any such audits, reviews or Mali (other than the Constitution of
Mali) now or hereafter in effect shall (i) Any report or document required requirements in order that, and attaches
take precedence or prevail over this to be delivered to MCC under the a legal opinion from the Supreme Court
Compact (or any Supplemental Environmental Guidelines, any Audit of Mali (or such other legal opinion as
Agreement to which MCC is a party) Plan, or any Implementation Document; may be acceptable to MCC) to the effect
during the Compact Term (or a longer and that (1) this Compact (and any
period to the extent provisions of this (j) Any other report, document or Supplemental Agreement to which MCC
Compact remain in force following the information requested by MCC or is a party) shall be given the status of
expiration of the Compact Term required by this Compact or any an international agreement; (2) no laws
pursuant to Section 5.13); and (c) each Supplemental Agreement between the of Mali (other than the Constitution of
of the provisions of this Compact (and Parties. Mali) now or hereafter in effect shall
each of the provisions of any Article IV. Conditions Precedent; take precedence or prevail over this
Supplemental Agreement to which MCC Deliveries Compact (or any Supplemental
is a party) is valid, binding and in full Agreement to which MCC is a party)
force and effect under the laws of Mali. Section 4.1 Conditions Prior to the during the Compact Term (or a longer
The Government shall initiate such Entry Into Force and Deliveries period to the extent provisions of this
process promptly after the conclusion of As conditions precedent to the Entry Compact remain in force following the
this Compact. Notwithstanding anything into Force, the Parties shall satisfy the Compact Term pursuant to Section
to the contrary in this Compact, this conditions set forth in this Section 4.1. 5.13); and (3) each of the provisions of
Section 3.10 shall provisionally apply (a) The Government (or a mutually this Compact (and each of the
prior to Entry into Force. acceptable Government Affiliate), a provisions of any Supplemental
Permitted Designee, and MCC shall Agreement to which MCC is a party)
Section 3.11 No Conflict
execute a disbursement agreement (the shall be valid, binding and in full force
The Government undertakes not to ‘‘Disbursement Agreement’’), which and effect under the laws of Mali; and
enter into any agreement in conflict agreement shall be in full force and (ii) Attaches thereto, and certifies that
with this Compact or any Supplemental effect as of the Entry into Force. such attachments are, true, correct and
Agreement during the Compact Term. (b) The Government (or a mutually complete copies of all decrees,
acceptable Government Affiliate), a legislation, regulations or other
Section 3.12 Reports
Permitted Designee, and MCC shall governmental documents relating to its
The Government shall provide, or execute a governance agreement (the domestic requirements for this Compact
cause to be provided, to MCC at least on ‘‘Governance Agreement’’), which to enter into force and the satisfaction
each anniversary of the Entry into Force agreement shall be in full force and of Section 3.10, which MCC may post
(or such other anniversary agreed by the effect as of the Entry into Force. on its Web site or otherwise make
Parties in writing) and otherwise within (c)(i) The Government shall deliver publicly available.
thirty (30) days of any written request one or more of the Supplemental (f) MCC shall deliver a written
by MCC, or as otherwise agreed in Agreements or other documents statement as to the incumbency and
writing by the Parties, the following identified on Exhibit B attached hereto, specimen signature of the Principal
information: which agreements or other documents Representative and each Additional
(a) The name of each entity to which shall be fully executed by the parties Representative of MCC executing any
MCC Funding has been provided; thereto and in full force and effect, or document under this Compact such
(b) The amount of MCC Funding (ii) the Government (or a mutually written statement to be signed by a duly
provided to such entity; acceptable Government Affiliate), a authorized official of MCC other than
(c) A description of the Program and Permitted Designee, and MCC shall the Principal Representative or any such
each Project funded in furtherance of execute one or more term sheets that set Additional Representative.
this Compact, including: forth the material and principal terms (g) The Government has not engaged
(i) A statement of whether the and conditions that will be included in subsequent to the conclusion of this
Program or any Project was solicited or any such Supplemental Agreement or Compact in any action or omission
unsolicited; and other documents that have not been inconsistent with the MCA Eligibility
(ii) A detailed description of the entered into or effective as of the Entry Criteria, as determined by MCC in its
objectives and measures for results of into Force (the ‘‘Supplemental sole discretion.
the Program or Project; Agreement Term Sheets’’).
(d) The progress made by Mali toward (d) The Government shall deliver a Section 4.2 Conditions Precedent to
achieving the Compact Goal and written statement as to the incumbency MCC Disbursements or Re-
Objectives; and specimen signature of the Principal Disbursements
(e) A description of the extent to Representative and each Additional Prior to, and as condition precedent
which MCC Funding has been effective Representative of the Government to, any MCC Disbursement or Re-
in helping Mali to achieve the Compact executing any document under this Disbursement, the Government shall
Goal and Objectives; Compact, such written statement to be satisfy, or ensure the satisfaction of, all
(f) A description of the coordination signed by a duly authorized official of applicable conditions precedent in the
of MCC Funding with other United the Government other than the Principal Disbursement Agreement.
States foreign assistance and other Representative or any such Additional
related trade policies; Representative. Article V. Final Clauses
(g) A description of the coordination (e) The Government shall deliver a
of MCC Funding with assistance Section 5.1 Communications
certificate signed and dated by the
provided by other donor countries; Principal Representative of the Unless otherwise expressly stated in
(h) Any report, document or filing Government, or such other duly this Compact or otherwise agreed in
that the Government, any Government authorized representative of the writing by the Parties, any notice,
Affiliate or any Permitted Designee Government acceptable to MCC, that: certificate, request, report, document or
submits to any government body in (i) Certifies the Government has other communication required,
connection with this Compact; completed all of its domestic permitted, or submitted by either Party
to the other under this Compact shall be duly authorized any instrument signed (v) The Government or any Provider
(a) in writing, (b) in English, and (c) by such representatives relating to the has materially breached one or more of
deemed duly given: (i) Upon personal implementation of this Compact, until its assurances or any covenants,
delivery to the Party to be notified; (ii) receipt of written notice of revocation of obligations or responsibilities under this
when sent by confirmed facsimile or their authority. A Party may change its Compact or any Supplemental
electronic mail, if sent during normal Principal Representative to a new Agreement;
business hours of the recipient Party, if representative of equivalent or higher (vi) An audit, review, report or any
not, then on the next business day; or rank upon written notice to the other other document delivered in furtherance
(iii) three (3) business days after deposit Party, which notice shall include the of the Compact or any Supplemental
with an internationally recognized specimen signature of the new Principal Agreement or any other evidence
overnight courier, specifying next day Representative. reveals that actual expenditures for the
delivery, with written verification of Program, any Project or any Project
Section 5.3 Amendments Activity were greater than the projected
receipt to the Party to be notified at the
address indicated below, or at such The Parties may amend this Compact expenditure for such activities
other address as such Party may only by a written agreement signed by identified in the applicable Detailed
designate: the Principal Representatives of the Budget or are projected to be greater
To MCC: Parties and subject to the respective than projected expenditures for such
Millennium Challenge Corporation, domestic approval requirements to activities;
Attention: Vice President for Operations which this Compact was subject. (vii) If the Government (1) materially
(with a copy to the Vice President and reallocates or reduces the allocation in
General Counsel), 875 Fifteenth Street, Section 5.4 Termination; Suspension its national budget or any other
NW., Washington, DC 20005, United (a) Subject to Section 2.5, either Party Government budget of the normal and
States of America, Facsimile: +1 (202) may terminate this Compact in its expected resources that the Government
521–3700, Phone: +1 (202) 521–3600, E- entirety by giving the other Party thirty would have otherwise received or
mail: VPOperations@mcc.gov (Vice (30) days’ written notice. budgeted, from external or domestic
President for Operations); (b) Notwithstanding any other sources, for the activities contemplated
VPGeneralCounsel@mcc.gov (Vice provision of this Compact, including herein; (2) fails to contribute or provide
President and General Counsel) Section 2.1, or any Supplemental the amount, level, type and quality of
To the Government: Agreement between the Parties, subject resources required to effectively carry
Prime Minister of the Republic of to Section 2.5, MCC may suspend or out the Government Responsibilities or
Mali, Primature, Bamako, Mali, terminate this Compact or MCC any other responsibilities or obligations
Facsimile: +223 223–9595, Phone: +223 Funding, in whole or in part, and any of the Government under or in
222–5534 obligation or sub-obligation related furtherance of this Compact; or (3) fails
With a copy to MCA-Mali: to pay any of its obligations as required
thereto, upon giving the Government
At an address, and to the attention of under this Compact or any
written notice, if MCC determines, in its
the person, to be designated in writing Supplemental Agreement, including
sole discretion, that:
to MCC by the Government. such obligations which shall be paid
Notwithstanding the foregoing, any (i) Any use or proposed use of MCC solely out of national funds;
audit report delivered pursuant to Funding or any other Program Asset or (viii) If the Government, any Provider,
Section 3.8, if delivered by facsimile or continued implementation of the or any other third party receiving MCC
electronic mail, shall be followed by an Compact would be in violation of Funding or using any other Program
original in overnight express mail. This applicable law or United States Asset, or any of their respective
Section 5.1 shall not apply to the Government policy, whether now or directors, officers, employees, Affiliates,
exchange of letters contemplated in hereafter in effect; contractors, sub-contractors, grantees,
Section 1.3 or any amendments under (ii) The Government, any Provider, or sub-grantees, representatives or agents,
Section 5.3. any other third party receiving MCC is found to have been convicted of a
Funding or using any other Program narcotics offense or to have been
Section 5.2 Representatives Asset is engaged in activities that are engaged in drug trafficking;
Unless otherwise agreed in writing by contrary to the national security (ix) Any MCC Funding or Program
the Parties, for all purposes relevant to interests of the United States; Assets are applied, directly or
this Compact, the Government shall be (iii) The Government or any Permitted indirectly, to the provision of resources
represented by the individual holding Designee has committed an act or and support to, individuals and
the position of, or acting as, the Prime omission or an event has occurred that organizations associated with terrorism,
Minister of the Republic of Mali, and would render Mali ineligible to receive sex trafficking or prostitution;
MCC shall be represented by the United States economic assistance (x) An event or condition of any
individual holding the position of, or under Part I of the Foreign Assistance character has occurred that; (1)
acting as, Vice President for Operations Act of 1961, as amended (22 U.S.C. 2151 Materially and adversely affects, or is
(each, a ‘‘Principal Representative’’), et seq.), by reason of the application of likely to materially and adversely affect,
each of whom, by written notice to the any provision of the Foreign Assistance the ability of the Government or any
other Party, may designate one or more Act of 1961 or any other provision of other party to effectively implement, or
additional representatives (each, an law; ensure the effective implementation of,
‘‘Additional Representative’’) for all (iv) The Government or any Permitted the Program or any Project or to
purposes other than signing Designee has engaged in a pattern of otherwise carry out its responsibilities
amendments to this Compact. The actions or omissions inconsistent with or obligations under or in furtherance of
names of the Principal Representative the MCA Eligibility Criteria, or there has this Compact or any Supplemental
and any Additional Representative of occurred a significant decline in the Agreement or to perform its obligations
each of the Parties shall be provided, performance of Mali on one or more of under or in furtherance of this Compact
with specimen signatures, to the other the eligibility indicators contained or any Supplemental Agreement or to
Party, and the Parties may accept as therein; exercise its rights thereunder; (2) makes
it improbable that the Objectives will be Program within one hundred and Section 5.5 Privileges and Immunities
achieved during the Compact Term; (3) twenty (120) days after such expiration, MCC is an agency of the Government
materially and adversely affects any suspension or termination of the of the United States of America and its
Program Asset or any Permitted Compact may be paid from MCC personnel assigned to Mali will be
Account; or (4) constitutes misconduct Funding if (1) the request for such notified pursuant to the Vienna
injurious to MCC, or constitutes a fraud payment is properly submitted within Convention on Diplomatic Relations as
or a felony, by the Government, any ninety (90) days after such expiration, members of the mission of the Embassy
Government Affiliate, Permitted suspension or termination of the of the United States of America. The
Designee or Provider, or any officer, Compact, and (2) MCC had approved Government shall ensure that any
director, employee, agent, the making of such expenditure in personnel of MCC so notified, including
representative, Affiliate, contractor, writing in advance thereof. individuals detailed to or contracted by
grantee, subcontractor or sub-grantee of (f) Other than the payments permitted MCC, and the members of the families
any of the foregoing; pursuant to Section 5.4(e), in the event of such personnel, while such personnel
(xi) The Government, any Permitted of the suspension or termination of this are performing duties in Mali, shall
Designee or Provider has taken any Compact or any Supplemental enjoy the privileges and immunities that
action or omission or engaged in any Agreement, in whole or in part, the are enjoyed by a member of the United
activity in violation of, or inconsistent Government, shall suspend, at MCC’s States Foreign Service, or the family of
with, the requirements of this Compact sole discretion, for the period of the a member of the United States Foreign
or any Supplemental Agreement to suspension, or terminate, or ensure the Service so notified, as appropriate, of
which the Government or any Permitted suspension or termination of, as comparable rank and salary of such
Designee or Provider is a party; applicable, any obligation or sub- personnel, if such personnel or the
(xii) There has occurred a failure to obligation of the Parties to provide members of the families of such
meet a condition precedent or series of financial or other resources under this personnel are not a national of, or
conditions precedent or any other Compact or any Supplemental permanently resident in, Mali.
requirements or conditions in Agreement, or to the suspended or
connection with MCC Disbursement as Section 5.6 Attachments
terminated portion of this Compact or
set out in and in accordance with any Any annex, schedule, exhibit, table,
such Supplemental Agreement, as
Supplemental Agreement between the appendix or other attachment expressly
applicable. In the event of such
Parties; or attached hereto (collectively, the
(xiii) Any MCC Funding, Accrued suspension or termination, the
Government shall use its best efforts to ‘‘Attachments’’) is incorporated herein
Interest or Program Asset becomes by reference and shall constitute an
subject to a Lien without the prior suspend or terminate, or ensure the
suspension or termination of, as integral part of this Compact.
approval of MCC, and the Government
fails to obtain the release of such Lien applicable, all such noncancelable Section 5.7 Inconsistencies
(utilizing national funds and not with commitments related to the suspended
or terminated MCC Funding. Any (a) Conflicts or inconsistencies
MCC Funding, Accrued Interest, or any between any parts of this Compact shall
other Program Asset) within thirty (30) portion of this Compact or any such
Supplemental Agreement that is not be resolved by applying the following
days after the imposition of such Lien. descending order of precedence:
(c) MCC may reinstate any suspended suspended or terminated shall remain in
(i) Articles I through V, and
or terminated MCC Funding under this full force and effect. (ii) Any Attachments.
Compact or any Supplemental (g) Upon the full or partial suspension (b) In the event of any conflict or
Agreement if MCC determines, in its or termination of this Compact or any inconsistency between this Compact
sole discretion, that the Government or MCC Funding, MCC may, at its expense, and any Supplemental Agreement
other relevant party has demonstrated a direct that title to Program Assets be between the Parties, the terms of this
commitment to correcting each transferred to MCC if such Program Compact shall prevail. In the event of
condition for which MCC Funding was Assets are in a deliverable state; any conflict or inconsistency between
suspended or terminated. provided, for any Program Asset any Supplemental Agreement between
(d) The authority under this Section partially purchased or funded (directly the Parties and any other Supplemental
5.4 to suspend or terminate this or indirectly) by MCC Funding, the Agreement, the terms of the
Compact or any MCC Funding includes Government shall reimburse to a United Supplemental Agreement between the
the authority to suspend or terminate States Government account designated Parties shall prevail. In the event of any
any obligations or sub-obligations by MCC the cash equivalent of the conflict or inconsistency between
relating to MCC Funding under any portion of the value of such Program Supplemental Agreements between any
Supplemental Agreement without any Asset, such value as determined by parties, the terms of a more recently
liability to MCC whatsoever. MCC. executed Supplemental Agreement
(e) All MCC Disbursements and Re- (h) Prior to the expiration of this between such parties shall take
Disbursements shall cease upon Compact or upon termination of this precedence over a previously executed
expiration, suspension, or termination Compact, the Parties shall consult in Supplemental Agreement between such
of this Compact; provided, however, (i) good faith with a view to reaching an parties. In the event of any
reasonable expenditures for goods, agreement in writing on (i) the post- inconsistency between a Supplemental
services and works that are properly Compact Term treatment of MCA-Mali, Agreement between the Parties and any
incurred under or in furtherance of this (ii) the process for ensuring the refunds Implementation Document, the terms of
Compact before such expiration, of MCC Disbursements that have not yet the relevant Supplemental Agreement
suspension or termination of this been released from a Permitted Account shall prevail.
Compact, and (ii) reasonable through a valid Re-Disbursement or

expenditures for goods and services otherwise committed in accordance Section 5.8 Indemnification
(including certain administrative with Section 5.4(e), or (iii) any other The Government shall indemnify and
expenses) properly incurred in matter related to the winding up of the hold MCC and any MCC officer,
connection with the winding up of the Program and this Compact. director, employee, Affiliate, contractor,
agent or representative (each of MCC Section 5.3 shall be delivered only as an consultation to the Principal
and any such persons, an ‘‘MCC original signature. With respect to all Representative or such other
Indemnified Party’’) harmless from and other signatures, a signature delivered representative of comparable or higher
against, and shall compensate, by facsimile or electronic mail in rank. The consultations shall last no
reimburse and pay such MCC accordance with Section 5.1 shall be longer than forty-five (45) days from
Indemnified Party for, any liability or deemed an original signature and shall date of commencement. If the matter is
other damages which (a) are directly or be binding on the Party delivering such not resolved within such time period,
indirectly suffered or incurred by such signature, and the Parties hereby waive either Party may terminate this Compact
MCC Indemnified Party, or to which any any objection to such signature or to the pursuant to Section 5.4(a). The Parties
MCC Indemnified Party may otherwise validity of the underlying document, shall enter any such consultations
become subject, regardless of whether or certificate, notice, instrument or guided by the principle of achieving the
not such damages relate to any third- agreement on the basis of the signature’s Compact Goal in a timely and cost-
party claim, and (b) arise from or as a legal effect, validity or enforceability effective manner and by the principles
result of the negligence or willful solely because it is in facsimile or of international law. Any dispute arising
misconduct of the Government, any electronic form. Without limiting the under or related to this Compact shall
Government Affiliate, MCA-Mali or any foregoing, a signature on an audit report be determined exclusively through the
Permitted Designee, directly or or a signature evidencing any consultation mechanism set forth in this
indirectly connected with, any activities modification identified in Section 2(a) Section 5.14.
(including acts or omissions) and Section 4(a)(iv) of Annex I, Section
Section 5.15 MCC Status
undertaken in furtherance of this 4 of Annex II, or Section 5(d) of Annex
Compact; provided, however, the III shall be followed by an original in MCC is a United States Government
Government shall apply national funds overnight express mail. corporation acting on behalf of the
to satisfy its obligations under this United States Government in the
Section 5.12 Designation implementation of this Compact. As
Section 5.8 and no MCC Funding,
Accrued Interest, or other Program Asset MCC may designate any Affiliate, such, MCC has no liability under this
may be applied by the Government in agent, or representative to implement, in Compact, is immune from any action or
satisfaction of its obligations under this whole or in part, its obligations, and proceeding arising under or relating to
Section 5.8. exercise any of its rights, under this this Compact and the Government
Compact or any Supplemental hereby waives and releases all claims
Section 5.9 Headings Agreement between the Parties. MCC related to any such liability. In matters
The Section and Subsection headings shall inform the Government of any arising under or relating to this
used in this Compact are included for such designation. Compact, MCC is not subject to the
convenience only and are not to be jurisdiction of the courts or other body
Section 5.13 Survival
considered in construing or interpreting of Mali or any other jurisdiction, and all
this Compact. Any Government Responsibilities, disputes arising under or relating to this
covenants, or obligations or other Compact shall be determined in
Section 5.10 Interpretation responsibilities to be performed by the accordance with Section 5.14.
(a) Any reference to the term Government after the Compact Term
shall survive the termination or Section 5.16 Language
‘‘including’’ in this Compact shall be
deemed to mean ‘‘including without expiration of this Compact and expire in This Compact is prepared in English
limitation’’ except as expressly provided accordance with their respective terms. and in the event of any ambiguity or
otherwise. Notwithstanding the termination or conflict between this official English
(b) Any reference to activities expiration of this Compact, the version and any other version translated
undertaken ‘‘in furtherance of this following provisions shall remain in into any language for the convenience of
Compact’’ or similar language shall force: Sections 2.2, 2.3, 2.5, 3.2, 3.3, 3.4, the Parties, this official English version
include activities undertaken by the 3.5, 3.8, 3.9 (for one year), 3.12, 5.1, 5.2, shall prevail.
Government, any Government Affiliate, 5.4(d), 5.4(e) (for one hundred and
Section 5.17 Publicity; Information
any Permitted Designee, any Provider or twenty (120) days), 5.4(f), 5.4(g), 5.4(h),
and Marking
any other third party receiving MCC 5.5, 5.6, 5.7, 5.8, 5.9, 5.10, 5.11, 5.12,
Funding involved in carrying out the this Section 5.13, 5.14, and 5.15. The Government shall give
purposes of this Compact or any appropriate publicity to this Compact as
Section 5.14 Consultation a program to which the United States,
Supplemental Agreement, including
their respective directors, officers, Either Party may, at any time, request through MCC, has contributed,
employees, Affiliates, contractors, sub- consultations relating to the including by posting this Compact, and
contractors, grantees, sub-grantees, interpretation or implementation of this any amendments thereto, on the Web
representatives or agents, whether Compact or any Supplemental site operated by MCA-Mali (‘‘MCA-Mali
pursuant to the terms of this Compact, Agreement between the Parties. Such Web site’’), identifying Program activity
any Supplemental Agreement or consultations shall begin at the earliest sites, and marking Program Assets;
otherwise. possible date. The request for provided, any announcement, press
(c) References to ‘‘day’’ or ‘‘days’’ consultations shall designate a release or statement regarding MCC or
shall be calendar days unless provided representative for the requesting Party the fact that MCC is funding the
otherwise. with the authority to enter consultations Program or any other publicity materials
(d) Defined terms importing the and the other Party shall endeavor to referencing MCC, including the
singular also include the plural, and designate a representative of equal or publicity described in this Section 5.17,
vice versa. comparable rank. If such representatives shall be subject to prior approval by
are unable to resolve the matter within MCC and shall be consistent with any
Section 5.11 Signatures twenty (20) days from the instructions provided by MCC from time
A signature to this Compact or an commencement of the consultations, to time in relevant Implementation
amendment to this Compact pursuant to then each Party shall forward the Letters. Upon the termination or
expiration of this Compact, MCC may Agriculture Activity shall have the Compact Goal shall have the meaning
request the removal of, and the meaning set forth in Section 2(e) of set forth in Section 1.1.
Government shall, upon such request, Schedule 3 to Annex I. Compact Implementation Funding
remove, or cause the removal of, any Airport shall have the meaning set shall have the meaning set forth in
such markings and any references to forth in Section 1.1. Section 2.1(a)(iii).
MCC in any publicity materials or on Airport Domain Advisory Council Compact Records shall have the
the MCA-Mali Web site. MCC may post shall have the meaning set forth in meaning set forth in Section 3.8(b).
this Compact, and any amendments Section 3(e)(i) of Annex I. Compact Reports shall have the
thereto, on the Web site of MCC. MCC Airport Improvement Project shall meaning set forth in Section
shall have the right to use any have the meaning set forth in the 3(d)(ii)(3)(C) of Annex I.
information or data provided in any Preamble of Schedule 1 to Annex I. Compact Term shall have the
report or document provided to MCC for Airside Infrastructure Activity shall meaning set forth in Section 1.3.
the purpose of satisfying MCC reporting have the meaning set forth in Section Contract shall have the meaning set
requirements or in any other manner. 2(a) of Schedule 1 to Annex I. forth in Section 3(f) of Annex I.
In Witness Whereof, the undersigned, Alatona Irrigation Project shall have Contractor shall have the meaning set
duly authorized by their respective the meaning set forth in the Preamble of forth in Section 3(f) of Annex I.
governments, have signed this Compact Schedule 3 to Annex I. COSCAP shall have the meaning set
this 13th day of November 2006 and this Alatona Irrigation Project Objective forth in Section 4 of Schedule 1 to
Compact shall enter into force in shall have the meaning set forth in Annex I.
accordance with Section 1.3. Section 1.1(c). Covered Provider shall have the
Done at Washington, DC in English. Alatona Zone Advisory Council shall meaning set forth in Section 3.8(d)(iv).
For the United States of America, have the meaning set forth in Section Designated Rights and
acting through the Millennium 3(e)(i) of Annex I. Responsibilities shall have the meaning
Challenge Corporation, Name: John J. ANAC means the Agence Nationale de set forth in Section 3.2(c).
Danilovich, Title: Chief Executive l’Aéronautique Civile. Detailed Budget shall have the
ASECNA means the Agence pour la meaning set forth in Section 4(a)(ii) of
Officer.
For the Government of the Republic of Securité de la Navigation Aérienne en Annex I.
Mali, Name: Moctor Ouane, Title: Afrique et à Madagascar. DNCPN means the Direction
Attachments shall have the meaning Nationale du Contrôle de la Pollution et
Minister of Foreign Affairs and
set forth in Section 5.6. des Nuisances.
International Cooperation.
Audit Guidelines shall have the Director General shall have the
Exhibit A—Definitions meaning set forth in Section 3.8(d)(i). meaning set forth in Section 3(d)(iii) of
The following compendium of Audit Plan shall have the meaning set
Annex I.
capitalized terms that are used herein is forth in Section 3.8(d)(iii). Disbursement Agreement shall have
Auditor shall have the meaning set
provided for the convenience of the the meaning set forth in Section 4.1(a).
forth in Section 3(h) of Annex I.
reader. To the extent that there is a Auditor/Reviewer Agreement shall EA shall have the meaning set forth in
conflict or inconsistency between the have the meaning set forth in Section Section 6(a) of Annex I.
definitions in this Exhibit A and the EIA shall have the meaning set forth
3(h) of Annex I.
definitions elsewhere in the text of this Bamako-Sénou Airport Improvement in Section 6(a) of Annex I.
Compact, the definition elsewhere in Project Objective shall have the meaning EMP shall have the meaning set forth
this Compact shall prevail over the set forth in Section 1.1(a). in Section 6(a) of Annex I.
definition in this Exhibit A. Bank(s) means any bank holding a EMS shall have the meaning set forth
Accrued Interest shall have the Permitted Account. in Section 6 of Schedule 1 to Annex I.
meaning set forth in Section 2.1(c). Bank Agreement shall have the Entry into Force shall have the
Act shall have the meaning set forth meaning set forth in Section 4(d) of meaning set forth in Section 1.3.
in Section 2.1(a)(iii). Annex I. Environmental Guidelines shall have
Ad Hoc Evaluation shall have the BDS shall have the meaning set forth the meaning set forth in Section 2.3(d).
meaning set forth in Section 3(b) of in Section 4 of Schedule 2 to Annex I. Evaluation Component shall have the
Annex III. Beneficiaries shall have the meaning meaning set forth in Section 1 of Annex
Additional Representative shall have set forth in Section 2(a) of Annex III. III.
the meaning set forth in Section 5.2. Bilateral Agreement shall have the Exempt Uses shall have the meaning
AdM shall have the meaning set forth meaning set forth in Section 2.6. set forth in Section 2.3(e)(ii).
in Section 2(c) of Schedule 1 to Annex Board shall have the meaning set forth Final Evaluation shall have the
I. in Section 3(d)(i)(2) of Annex I. meaning set forth in Section 3(a) of
Advisory Council(s) shall have the Chair shall have the meaning set forth Annex III.
meaning set forth in Section 3(e)(i) of in Section 3(d)(ii)(2)(A)(i) of Annex I. Finance Activity shall have the
Annex I. Civil Member shall have the meaning meaning set forth in Section 2(f) of
Affiliate means the affiliate of a party, set forth in Section 3(d)(ii)(2)(A) of Schedule 3 to Annex I.
which is a person or entity that controls, Annex I. Financial Plan Annex shall have the
is controlled by, or is under the same Civil Society Stakeholders shall have meaning set forth in the Preamble of
control as the party in question, whether the meaning set forth in Section Annex II.
by ownership or by voting, financial or 3(e)(ii)(1) of Annex I. Fiscal Accountability Plan shall have
other power or means of influence. CNPI means the Centre National de la the meaning set forth in Section 4(c) of
References to Affiliate herein shall Promotion des Investissements. Annex I.
include any of their respective directors, Community Activity shall have the Fiscal Agent shall have the meaning
officers, employees, affiliates, meaning set forth in Section 2(d) of set forth in Section 3(g)(i) of Annex I.
contractors, sub-contractors, grantees, Schedule 3 to Annex I. Fiscal Agent Agreement shall have the
sub-grantees, representatives, and Compact shall have the meaning set meaning set forth in Section 3(g)(i) of
agents. forth in the Preamble. Annex I.
GDP means gross domestic product. Landside Infrastructure Activity shall Officer shall have the meaning set
Goal Indicator shall have the meaning have the meaning set forth in Section forth in Section 3(d)(iii)(1) of Annex I.
set forth in Section 2(a) of Annex III. 2(b) of Schedule 1 to Annex I. ON shall have the meaning set forth
Governance Agreement shall have the Lien shall have the meaning set forth in Section 1.1(c).
meaning set forth in Section 4.1(b). in Section 2.3(g). Outcomes shall have the meaning set
Governing Document shall have the Local Account shall have the meaning forth in Section 1 of Annex III.
meaning set forth in Section 3(c)(i)(9) of set forth in Section 4(d)(ii) of Annex I. Outcome Indicator shall have the
Annex I. M&E shall have the meaning set forth meaning set forth in Section 2(a) of
Government shall have the meaning in Section 3 of Annex I. Annex III.
set forth in the Preamble. M&E Annex shall have the meaning Output Indicator shall have the
Government Affiliate means an set forth in the Preamble of Annex III. meaning set forth in Section 2(a) of
Affiliate, ministry, bureau, department, M&E Plan shall have the meaning set Annex III.
agency, government, corporation or any forth in Section 2(d) of Annex I. Party or Parties shall have the
other entity chartered or established by Mali shall have the meaning set forth meaning set forth in the Preamble.
in the Recitals. Permitted Account(s) shall have the
the Government or local government in
Management shall have the meaning meaning set forth in Section 4(d) of
Mali. References to Government
set forth in Section 3(d)(i)(2) of Annex Annex I.
Affiliate shall include any of their
I. Permitted Designee shall have the
respective directors, officers, employees,
Material Agreement shall have the meaning set forth in Section 3.2(c).
affiliates, contractors, sub-contractors, Pledge shall have the meaning set
grantees, sub-grantees, representatives, meaning set forth in Section 3(c)(i)(4) of
Annex I. forth in Section 3(c)(i)(8) of Annex I.
and agents. Primary and Secondary Infrastructure
Government Member shall have the Material Re-Disbursement shall have
the meaning set forth in Section Activity shall have the meaning set forth
meaning set forth in Section in Section 2(a) of Schedule 2 to Annex
3(d)(ii)(2)(A) of Annex I. 3(c)(i)(7) of Annex I.
MCA shall have the meaning set forth I.
Government Party shall have the Principal Representative shall have
meaning set forth in Section 3.8(e)(i). in the Recitals.
MCA Eligibility Criteria shall have the the meaning set forth in Section 5.2.
Government Responsibilities shall Procurement Agent shall have the
have the meaning set forth in Section meaning set forth in Section 3.7.
MCA-Mali shall have the meaning set meaning set forth in Section 3(i) of
3.2(a). Annex I.
forth in Section 3(b)(i) of Annex I.
Ha means hectare. Procurement Agent Agreement shall
MCA-Mali Web site shall have the
Implementation Document shall have have the meaning set forth in Section
meaning set forth in Section 5.17.
the meaning set forth in Section 3(a) of 3(i) of Annex I.
MCC shall have the meaning set forth
Annex I. Procurement Guidelines shall have
in the Preamble.
Implementation Letter shall have the the meaning set forth in Section 3.6(a).
MCC Disbursement shall have the
meaning set forth in Section 3.5(a). Procurement Plan shall have the
meaning set forth in Section 2.1(b)(i).
Implementing Entity shall have the meaning set forth in Section 3(i) of
MCC Disbursement Request shall have
meaning set forth in Section 3(f) of Annex I.
the meaning set forth in Section 4(b) of
Annex I. Program shall have the meaning set
Annex I.
Implementing Entity Agreement shall forth in the Recitals.
MCC Funding shall have the meaning Program Annex shall have the
have the meaning set forth in Section set forth in Section 2.1(a).
3(f) of Annex I. meaning set forth in the Preamble of
MCC Indemnified Party shall have the
Indicators shall have the meaning set Annex I.
meaning set forth in Section 5.8. Program Assets shall have the
forth in Section 2(a) of Annex III. MCC Representative shall have the
Industrial Park shall have the meaning set forth in Section 2.3(e)(iii).
meaning set forth in Section Program Objective shall have the
meaning set forth in Section 1(a) of 3(d)(ii)(2)(B)(i) of Annex I.
Annex I. meaning set forth in Section 1.1.
MFIs means microfinance institutions. Project shall have the meaning set
Industrial Park Project shall have the Monitoring Component shall have the
meaning set forth in the Preamble of forth in Section 1.2.
meaning set forth in Section 1 of Annex Project Activity shall have the
Schedule 2 to Annex I. III. meaning set forth in Section 2(a) of
Industrial Park Project Objective shall MSMEs shall have the meaning set Annex I.
have the meaning set forth in Section forth in Section 4 of Schedule 2 to Project Objective shall have the
1.1(b). Annex I. meaning set forth in Section 1.1.
Inspector General shall have the Multi-Year Financial Plan shall have Proposal shall have the meaning set
meaning set forth in Section 3.8(d)(i). the meaning set forth in Section 4(a)(i) forth in the Recitals.
Institutional Strengthening Activity of Annex I. Provider shall have the meaning set
for the Airport Improvement Project Multi-Year Financial Plan Summary forth in Section 2.4(b).
shall have the meaning set forth in shall have the meaning set forth in PRSP shall have the meaning set forth
Section 2(c) of Schedule 1 to Annex I. Section 1 of Annex II. in Section 1(b) of Annex I.
Institutional Strengthening Activity NGOs shall have the meaning set forth RAP shall have the meaning set forth
for the Industrial Park Project shall have in Section 1(b) of Annex I. in Section 6(a) of Annex I.
the meaning set forth in Section 2(c) of Objective(s) shall have the meaning Re-Disbursement shall have the
Schedule 2 to Annex I. set forth in Section 1.1. meaning set forth in Section 2.1(b)(ii).
Irrigation Activity shall have the Objective Indicator shall have the Resettlement Activity shall have the
meaning set forth in Section 2(b) of meaning set forth in Section 2(a) of meaning set forth in Section 2(b) of
Schedule 3 to Annex I. Annex III. Schedule 2 to Annex I.
Land Activity shall have the meaning Observer shall have the meaning set Revenue Authority shall have the
set forth in Section 2(c) of Schedule 3 forth in Section 3(d)(ii)(2)(B) of Annex meaning set forth in Section 2(c)(v) of
to Annex I. I. Schedule 3 to Annex I.
Reviewer shall have the meaning set MCA-Mali (or a mutually acceptable of agriculture and small and medium-
forth in Section 3(h) of Annex I. Government Affiliate) such as rent, sized enterprises, as well as expand
Road Activity shall have the meaning computers and other information Mali’s access to markets and trade.
set forth in Section 2(a) of Schedule 3 technology or capital equipment; Investment in the Airport
to Annex I. (c) Baseline surveys for M&E; and infrastructure will establish an
Special Account shall have the (d) Additional work for feasibility independent and secure link to the
meaning set forth in Section 4(d)(i) of studies. regional and global economy,
Annex I. The total amount of funds disbursed addressing the specific need of a
STIs means sexually transmitted in accordance with Section 2.1(a)(iii) landlocked, developing country. The
infections. shall not exceed the amount set forth in investments in the industrial park to be
Supplemental Agreement shall have Section 2.1(a)(iii). located within the Airport domain
the meaning set forth in Section 3.5(b). Annex I—Program Description (‘‘Industrial Park’’) will provide
Supplemental Agreement between the properly managed and serviced land for
Parties means any agreement between This Annex I to the Compact (this businesses and will leverage reforms
MCC on the one hand, and the ‘‘Program Annex’’) generally describes that will decrease the cost of doing
Government, any Government Affiliate the Program that MCC Funding will business in Mali. The investments in the
or Permitted Designee on the other support in Mali during the Compact Alatona zone of ON will be a catalyst for
hand. Term and the results to be achieved the transformation and
Supplemental Agreement Term from the investment of MCC Funding. commercialization of family farms. It
Sheets shall have the meaning set forth Prior to any MCC Disbursement or Re- will support Mali’s national
in Section 4.1(c). Disbursement, including for the Projects development strategy to increase the
Target shall have the meaning set described herein, MCC, the Government contribution of the rural sector to
forth in Section 2(a) of Annex III. (or a mutually acceptable Government economic growth and help achieve
Tax(es) shall have the meaning set Affiliate) and MCA-Mali shall enter into national food security. These
forth in Section 2.3(e)(i). the Disbursement Agreement, which investments will be strengthened by
United States Dollars, US$ or $ shall agreement shall be in form and policy reforms and institutional support
have the meaning set forth in Section substance mutually satisfactory to the such as formal land titles for the rural
2.1(d). Parties, and signed by the Principal poor, demand-driven rural advisory
United States Government means any Representative of each Party (or in the services, an improved business
branch, agency, bureau, government case of a Government Affiliate, the environment, and increased access to
corporation, government chartered principal representative of such markets and trade. These hard and soft
entity or other body of the Federal Government Affiliate) and of MCA-Mali. investments will impact the poor in
government of the United States. Except as specifically provided Mali, particularly Malian farmers and
USAID shall have the meaning set herein, the Parties may amend this small and medium-size entrepreneurs,
forth in Section 5 of Schedule 1 to Program Annex only by written not only in Project zones but, over time,
Annex I. agreement signed by the Principal on a national and regional scale. The
VOCs shall have the meaning set forth Representative of each Party. Each Program reinforces the Government’s
in Section 3 of Schedule 3 to Annex I. capitalized term used but not defined in approach and commitment to
Voting Member means each this Program Annex shall have the same democracy, decentralization, and
Government Member and each Civil meaning given such term elsewhere in empowerment of local communities.
Member. this Compact. Unless otherwise MCC-financed interventions will
WAEMU shall have the meaning set expressly stated, each Section reference complement and reinforce national
forth in Section 4 of Schedule 1 to herein is to the relevant Section of the strategies for poverty reduction and
Annex I. main body of this Compact. economic growth.
Work Plan shall have the meaning set 1. Background; Consultative Process (b) Consultative Process. The Program
forth in Section 3(a) of Annex I. strongly supports the third pillar of the
WUAs shall have the meaning set (a) Background. Mali is a landlocked poverty reduction strategy paper
forth in Section 2 of Schedule 3 to country of 1.24 million sq km that (‘‘PRSP’’): Development of infrastructure
Annex I. shares a border with seven West African and key support for productive sectors.
countries. One of the world’s poorest The participatory process of the PRSP is
Exhibit B—List of Certain Supplemental countries, Mali ranks 174 out of 177 on
Agreements characterized as having ‘‘breadth’’ and
the United Nations Development being ‘‘systematic.’’ The national
1. Fiscal Agent Agreement. Program’s Human Development Index, structure for the implementation of the
2. Procurement Agent Agreement. with low levels of literacy (19%) and PRSP identified the following among
3. Bank Agreement. life expectancy of 47.9 years. Sixty-four the top constraints to economic growth
4. Form of Implementing Entity percent of Mali’s approximate 13 in its consultative process:
Agreement. million people are poor, a third living (i) Climatic risks affecting the rural
in extreme poverty. MCC’s investments sector with consequences on the
Schedule 2.1(a)(iii)—Compact will support the development of key
Implementation Funding national economy;
infrastructure and policy reform for (ii) High cost of factors of production;
The Compact Implementation productive sectors, by addressing the (iii) Fluctuations in prices of principal
Funding provided pursuant to Section country’s constraints to growth and import and export products; and
2.1(a)(iii) of this Compact shall support capitalizing on two of Mali’s major (iv) Isolation/landlocked nature of the
the following activities: assets, the Airport, gateway for regional country.
(a) Fiscal and procurement and international trade, and the Niger The Program was designed to address
administration activities; River Delta for irrigated agriculture. As these constraints. Priorities were
(b) Administrative activities including proposed by the Government, the defined by the national PRSP structure
start-up costs such as staff salaries and Program will create a platform for and refinement occurred in consultation
administrative support expenses of increased production and productivity with civil society and the private sector.
This consultative process enriched and elsewhere in this Compact; and (iv) not Document’’). MCA-Mali shall adopt
helped form the Proposal and its extend the Compact Term. each Implementation Document in
development. The insistence on rural (b) Beneficiaries. The intended accordance with the requirements and
land ownership and titling derived from beneficiaries of each Project are timeframe as may be specified in this
dialogue with civil society and private described in the respective Schedule to Program Annex, Annex II, Annex III,
sector actors. The need for inclusion of this Program Annex and Annex III to the and the Disbursement Agreement or as
a strong component of social services for extent identified as of the date hereof. may otherwise be agreed by the Parties
the Alatona zone was also reinforced The intended beneficiaries shall be from time to time. MCA-Mali may
through the consultative process. identified more precisely during the amend any Implementation Document
Members of the Government, private initial phases of implementation of the without amending this Compact,
sector, and civil society (national non- Program. The Government shall provide provided that any material amendment
governmental organizations and U.S. to MCC information on the population of such Implementation Document has
non-governmental organizations) played of the areas in which the Projects will been approved by MCC and is otherwise
an active role in developing the be active, disaggregated by gender, consistent with the requirements of this
Millennium Challenge Account income level and age. The Parties shall Compact and any Supplemental
proposal. Local non-governmental agree upon the description of the Agreement. By such time as may be
organizations (‘‘NGOs’’), including intended beneficiaries and the Parties specified in the Disbursement
village-level women’s associations, were will make publicly available a more Agreement, or as may otherwise be
directly involved in the process through detailed description of the intended agreed by the Parties from time to time,
numerous on-site workshops and beneficiaries of the Program, including MCA-Mali shall adopt a work plan for
meetings in the ON region. publishing such description on the the overall administration of the
Consultations also took place with MCA-Mali Web site. Program (the ‘‘Work Plan’’). The Work
(c) Civil Society. Civil society shall Plan shall set forth, with respect to (i)
private sector and civil society actors
participate in overseeing the the administration of the Program, (ii)
around Bamako, as well as communities
implementation of the Program through the monitoring and evaluation of the
surrounding the Airport domain, who
its representation on the Board and the Program, and (iii) the implementation of
emphasized the need for improved Advisory Councils, as provided in
infrastructure and increased economic each Project, the following: (1) Each
Section 3(d) and Section 3(e), activity to be undertaken or funded by
activity to reduce poverty. Lastly, the respectively, of this Program Annex. In
Consultative Process involved MCC Funding (to the level of detail
addition, ongoing consultations with the mutually acceptable to MCA-Mali and
participation of the U.S. NGO civil society regarding the manner in MCC), (2) the Detailed Budget, and (3)
community, that has a strong presence which each Project is being where appropriate, the allocation of
in Mali, working on health, education, implemented will take place throughout roles and responsibilities for specific
agriculture, governance, and economic the Compact Term. activities, other programmatic
development programs throughout the (d) Monitoring and Evaluation. Annex guidelines, performance requirements,
country. III generally describes the plan to targets, and other expectations related
2. Overview measure and evaluate progress toward thereto.
achievement of the Compact Goal and (b) Government.
(a) Projects. The Parties have the Objectives (the ‘‘M&E Plan’’). As (i) The Government shall promptly
identified the Projects that the outlined in the Disbursement take all necessary and appropriate
Government will implement, or cause to Agreement and other Supplemental actions to carry out the Government
be implemented, using MCC Funding to Agreements, continued disbursement of Responsibilities and other obligations or
advance each Objective. Each Project is MCC Funding under this Compact responsibilities of the Government
described in the Schedules to this (whether as MCC Disbursements or Re- under and in furtherance of this
Program Annex. The Schedules to this Disbursements) shall be contingent on, Compact, including undertaking or
Program Annex also identify one or among other things, successful pursuing such legal, legislative or
more of the activities that will be achievement of certain Targets as set regulatory actions or procedural changes
undertaken in furtherance of each forth in the M&E Plan. and contractual arrangements as may be
Project (each, a ‘‘Project Activity’’), as necessary or appropriate to achieve the
well as the various activities within 3. Implementation Framework Objectives, to successfully implement
each Project Activity. Notwithstanding The implementation framework and the Program, to designate any rights or
anything to the contrary in this the plan for ensuring adequate responsibilities to any Permitted
Compact, the Parties may agree to governance, oversight, management, Designee, and to establish a legal entity,
modify, amend, terminate or suspend monitoring and evaluation (‘‘M&E’’) and in a form mutually agreeable to the
these Projects or to create a new project fiscal accountability for the use of MCC Parties (‘‘MCA-Mali’’), which shall be a
by written agreement signed by the Funding is summarized below and in Permitted Designee and shall be
Principal Representative of each Party the Schedules attached to this Program responsible for the oversight and
without amending this Compact; Annex, and as may otherwise be agreed management of the implementation of
provided, however, any such in writing by the Parties. this Compact on behalf of the
modification or amendment of a Project (a) General. The elements of the Government. The Government shall
or creation of a new project shall (i) be implementation framework will be promptly deliver to MCC certified
consistent with the Objectives; (ii) not further described in the Supplemental copies of any documents, orders,
cause the amount of MCC Funding to Agreements and in a set of detailed decrees, laws or regulations evidencing
exceed the aggregate amount specified documents for the implementation of such legal, legislative, regulatory,
in Section 2.1(a) of this Compact; (iii) the Program, consisting of (i) a Multi- procedural, contractual or other actions.
not cause the Government’s Year Financial Plan, (ii) a Fiscal (ii) The Government shall ensure that
responsibilities or contribution of Accountability Plan, (iii) a Procurement MCA-Mali is duly authorized and
resources to be less than specified in Plan, (iv) an M&E Plan, and (v) a Work organized, sufficiently staffed and
Section 2.2 of this Compact or Plan (each, an ‘‘Implementation empowered to carry out fully the
Designated Rights and Responsibilities. (7) Any Re-Disbursement that requires inaccurate or misleading information
Without limiting the generality of the such MCC approval under applicable furnished by the Government, any
preceding sentence, MCA-Mali shall be law, any Governing Document, or any Government Affiliate, MCA-Mali or any
organized, and have such roles and other Supplemental Agreement (each, a other Permitted Designee.
responsibilities, as described in Section ‘‘Material Re-Disbursement’’); Notwithstanding any provision in this
3(d) of this Program Annex and as (8) Any pledge of any MCC Funding Compact or any Supplemental
provided in the Governing Documents. or any Program Assets, or any guarantee, Agreement to the contrary, the exercise
(c) MCC. directly or indirectly, of any by MCC of its approval rights under this
(i) Notwithstanding Section 3.11 of indebtedness (each, a ‘‘Pledge’’); Compact or any Supplemental
this Compact or any provision in this (9) Any decree, legislation, regulation, Agreement shall not (1) diminish or
Program Annex to the contrary, and contractual arrangement (including the otherwise affect the Government
except as may be otherwise agreed upon Governance Agreement), or other Responsibilities or any other obligations
by the Parties from time to time, MCC charter document establishing or or responsibilities of the Government
must approve in writing each of the governing MCA-Mali (each, a under this Compact or any
following transactions, activities, ‘‘Governing Document’’); Supplemental Agreement, (2) transfer
agreements and documents prior to the (10) Any disposition, in whole or in any such obligations or responsibilities
execution or carrying out of such part, liquidation, dissolution, winding of the Government, or (3) otherwise
transaction, activity, agreement or up, reorganization or other change of subject MCC to any liability.
document and prior to MCC (A) MCA-Mali, including any revocation (d) MCA-Mali.
Disbursements or Re-Disbursements in or modification of or supplement to any (i) General. Unless otherwise agreed
connection therewith: Governing Document related thereto, or by the Parties in writing, MCA-Mali
(1) MCC Disbursements; (B) any subsidiary or Affiliate of MCA- shall, as a Permitted Designee, be
(2) Each Implementation Document Mali; responsible for the oversight and
(including each component thereto) and (11) Any change in character or management of the implementation of
any material amendments and location of any Permitted Account; this Compact. MCA-Mali shall be
supplements thereto; (12) Formation or acquisition of any governed by applicable law and the
(3) Any Audit Plan; direct or indirect subsidiary, or other Governing Documents. Each Governing
(4) Agreements (i) between the Affiliate, of MCA-Mali; Document shall be in form and
Government and MCA-Mali, (ii) (13) (A) Any change of any member of substance satisfactory to MCC and
between the Government, a Government the Board (including any Observer), of effective on or before the time specified
Affiliate, MCA-Mali or any other the member serving as the Chair or in in the Disbursement Agreement, and
Permitted Designee, on the one hand, the composition or size of the Board, based on the following principles:
and any Provider or Affiliate of a and the filling of any vacant seat of any (1) The Government shall ensure that
Provider, on the other hand, which member of the Board (including any MCA-Mali shall not assign, delegate or
require such MCC approval under Observer), (B) any change of any Officer contract any of the Designated Rights
applicable law, the Disbursement or other key employee of MCA-Mali or and Responsibilities without the prior
Agreement, any Governing Document, in the composition or size of the written consent of the Government and
or any other Supplemental Agreement, Management, and the filling of any MCC. MCA-Mali shall not establish any
or (iii) in which the Government, a vacant position of any Officer or other Affiliates or subsidiaries (direct or
Government Affiliate, MCA-Mali or any key employee of MCA-Mali, and (C) any indirect) without the prior written
other Permitted Designee appoints, material change in the composition or consent of the Government and MCC.
hires, or engages any of the following in size of any Advisory Council; (2) Unless otherwise agreed by the
furtherance of this Compact: (14) Any decision by MCA-Mali to Parties in writing, MCA-Mali shall
(A) Auditor; engage, to accept or to manage any consist of (A) an independent board of
(B) Reviewer; funds from any donor agencies or
(C) Fiscal Agent; directors (the ‘‘Board’’) to oversee MCA-
(D) Procurement Agent; organizations in addition to MCC Mali’s responsibilities and obligations
(E) Bank; Funding during the Compact Term; under this Compact (including any
(F) Implementing Entity (as required (15) Any decision to amend, Designated Rights and Responsibilities)
under Section 3(f) of this Program supplement, replace, terminate, or and (B) a management unit to have
Annex); and otherwise change any of the foregoing; overall management (the
(G) A member of the Board (including and ‘‘Management’’) responsibility for the
any Observer), any Officer or any other (16) Any other activity, agreement, implementation of this Compact.
key employee of MCA-Mali (including document or transaction requiring the (3) The Government shall ensure that
agreements involving the terms of any approval of MCC in this Compact, the Governing Documents comply with
compensation for any such person). applicable law, any Governing the requirements set forth in this
(Any agreement described in clause (i) Document, the Disbursement Program Annex.
through (iii) of this Section 3(c)(i)(4) of Agreement, or any other Supplemental (ii) Board.
this Program Annex and any Agreement between the Parties. (1) Formation. The Government shall
amendments and supplements thereto, (ii) MCC shall have the authority to ensure that the Board shall be formed,
each, a ‘‘Material Agreement’’); exercise its approval rights set forth in constituted, governed and operated in
(5) Any modification, termination or this Section 3(c) of this Program Annex accordance with the terms and
suspension of a Material Agreement, or in its sole discretion and independent of conditions set forth in the Governing
any action that would have the effect of any participation or position taken by Documents and any Supplemental
such a modification, termination or the MCC Representative at a meeting of Agreement.
suspension of a Material Agreement; the Board. MCC retains the right to (2) Composition. Unless otherwise
(6) Any agreement that is (A) not at revoke its approval of any matter, agreed by the Parties in writing, the
arm’s length or (B) with a party related agreement, or action if MCC concludes, Board shall consist of no more than
to the Government, MCA-Mali or any of in its sole discretion, that its approval eleven (11) voting members and two (2)
their respective Affiliates; was issued on the basis of incomplete, non-voting observers identified below.
(A) The Board shall initially be accordance with the Governing responsibilities that cannot be delegated
composed of eleven (11) voting Documents so long as the total does not further.
members as follows, provided that the exceed eleven (11) members. (E) The Board shall meet with and
members identified in subsections (i)– (F) Each Observer shall have rights to exchange information with the Advisory
(vi) below (each, a ‘‘Government attend all meetings of the Board, Councils, as contemplated in Section
Member,’’ and each of the other voting participate in the discussions of the 3(e) of this Program Annex. Without
members, a ‘‘Civil Member’’) may be Board, and receive all information and limiting the generality of the foregoing,
replaced by another government official documents provided to the Board, the Board shall take each Advisory
from a ministry or other government together with any other rights of access Council’s suggestions into consideration
body relevant to the Program activities to records, employees or facilities as in connection with any amendment to
pursuant to the Governing Documents, would be granted to a member of the the M&E Plan, pursuant to Section 5(b)
subject to approval by MCC (such Board under the Governing Documents. of Annex III.
replacement to be referred to thereafter (G) The Voting Members shall (4) Indemnification of Civil Members,
as a Government Member): exercise their duties solely in Observers, and Officers. The
(i) Representative from the Prime accordance with the best interests of Government shall ensure, at the
Minister’s Office, appointed as the chair MCA-Mali, the Program, the Compact Government’s sole cost and expense,
(‘‘Chair’’) as provided in the Governing Goal and the Objectives, and shall not that appropriate insurance is obtained
Documents; undertake any action that is contrary to and appropriate indemnifications and
(ii) Representative from the Ministry those interests or would result in other protections are provided,
of Equipment and Transport; personal gain or a conflict of interest. acceptable to MCC and to the fullest
(iii) Representative from the Ministry (3) Roles and Responsibilities. The extent permitted under the laws of Mali,
of Economy and Finance; roles and responsibilities of the Board to ensure that (A) the Civil Members
(iv) Representative from the Ministry and the Observers shall not be held
shall include the following:
for Investment Promotion and Small personally liable for the actions or
(A) The Board shall oversee the
and Medium-Size Industries; omissions of the Board or MCA-Mali
Management, the overall
(v) Representative from the Ministry and (B) Officers shall not be held
implementation of the Program, and the
of Agriculture; personally liable for the actions or
performance of the Designated Rights
(vi) Representative from the Ministry omissions of the Board, MCA-Mali or
and Responsibilities.
of Territorial Administration; actions or omissions of the Officer so
(B) Certain actions may be taken and long as properly within the scope of
(vii) Representative from the National
certain agreements, documents or Officer’s authority. Pursuant to Section
Committee for Business Owners;
instruments executed and delivered, as 5.5 and Section 5.8 of this Compact, the
(viii) Representative from the
the case may be, by MCA-Mali only Government and MCA-Mali shall hold
Chamber of Commerce and Industry;
(ix) Representative from the Chamber upon the approval and authorization of harmless the MCC Representative for
of Agriculture; the Board as provided under applicable any liability or action arising out of the
(x) Representative from civil society law or as set forth in any Governing MCC Representative’s role as an
organizations representing youth, Document, including each MCC Observer on the Board. The Government
selected by the relevant national NGOs Disbursement Request, selection or hereby waives and releases all claims
and civil society organizations and termination of certain Providers and any related to any such liability and
based on selection criteria agreed upon Implementation Document. acknowledges that the MCC
by the Parties; and (C) The Chair, unless otherwise Representative has no fiduciary duty to
(xi) Representative from civil society provided in the applicable Governing MCA-Mali. In matters arising under or
organizations representing women, Documents, shall certify any documents relating to this Compact, the MCC
selected by the relevant national NGOs or reports delivered to MCC in Representative is not subject to the
and civil society organizations and satisfaction of the Government’s jurisdiction of the courts or any other
based on selection criteria agreed upon reporting requirements under this governmental body of Mali. MCA-Mali
by the Parties. Compact or any Supplemental shall provide a written waiver and
(B) The non-voting observers of the Agreement between the Parties (the acknowledgement that no fiduciary duty
Board (each, an ‘‘Observer’’) shall be: ‘‘Compact Reports’’) or any other to MCA-Mali is owed by the MCC
(i) A representative designated by documents or reports from time to time Representative.
MCC (the ‘‘MCC Representative’’); and delivered to MCC by MCA-Mali (iii) Management. Unless otherwise
(ii) A representative of environmental (whether or not such documents or agreed in writing by the Parties, the
NGOs, selected by the relevant national reports are required to be delivered to Management shall report, through its
NGOs and civil society organizations MCC), and that such documents or chief executive officer (the ‘‘Director
and based on selection criteria agreed reports are true, correct and complete. General’’) or other Officer as designated
upon by the Parties. (D) Without limiting the generality of in any Governing Document, directly to
(C) Each Government Member the Designated Rights and the Board and shall have the
position (other than the Chair) shall be Responsibilities that the Government composition, roles and responsibilities
filled by the individual, during the may designate to MCA-Mali, and subject described below and set forth more
Compact Term, holding the office to MCC’s contractual rights of approval particularly in the Governing
identified, and all Government Members as set forth in Section 3(c) of this Documents.
(including the Chair) shall serve in their Program Annex, elsewhere in this (1) Composition. The Government
capacity as the applicable Government Compact or any Supplemental shall ensure that the Management shall
officials and not in their personal Agreement, the Board shall have the be composed of qualified experts from
capacity. exclusive authority as between the the public or private sectors, including
(D) Each Civil Member shall serve a Board and the Management for all such officers and staff as may be
two (2) year term. actions defined for the Board in any necessary to carry out effectively its
(E) The Voting Members, by majority Governing Document and which are responsibilities, each with such powers
vote, may alter the size of the Board in expressly designated therein as and responsibilities as set forth in the
Governing Documents, and from time to evaluation, ensure compliance with the Projects. Each member of an Advisory
time in any Supplemental Agreement Fiscal Accountability Plan, and such Council may appoint an alternate,
between the Parties, including the other responsibilities as set out in the approved by majority vote of the other
following: (A) Director General; (B) Governing Documents or otherwise members of such Advisory Council, to
Director of Finance and Administration; delegated to the Management by the serve when the member is unable to
(C) Legal Adviser; (D) Director of Board from time to time. participate in a meeting of the Advisory
Procurement; (E) Director of (C) Appropriate Officers as designated Council.
Environmental and Social Assessment; in the Governing Documents shall have (iii) Roles and Responsibilities. Each
(F) Director of Monitoring and the authority to contract on behalf of Advisory Council shall be a mechanism
Evaluation; (G) Director of Airport MCA-Mali under any procurement to provide representatives of the private
Improvement Project; (H) Director of undertaken in accordance with the sector, civil society and local
Industrial Park Project; and (I) Director Disbursement Agreement (including the government the opportunity to provide
of Alatona Irrigation Project. Each Procurement Guidelines) in furtherance advice and input to MCA-Mali regarding
person holding the position in any of of the Program. the implementation of this Compact. At
the sub-clauses (A) through (I), and such (D) The Management shall have the the request of any Advisory Council,
other offices as may be created and obligation and right to approve certain MCA-Mali shall provide such
designated in accordance with any actions and documents or agreements, information and documents as it deems
Governing Document and any including certain Re-Disbursements, advisable, subject to appropriate
Supplemental Agreement, shall be MCC Disbursement Requests, Compact treatment of such information and
referred to as an ‘‘Officer.’’ The Reports, certain human resources documents by the members of such
Management shall be supported by decisions and certain other actions, as Advisory Council. Specifically, during
appropriate administrative and support provided in the Governing Documents. each meeting of an Advisory Council,
personnel consistent with the Detailed (e) Advisory Councils. MCA-Mali shall present an update on
Budget for Program administration and (i) Formation. The Government shall the implementation of this Compact and
any Implementation Document. ensure the establishment of (1) an progress towards achievement of the
(2) Appointment of Officers. The advisory council to the Board Objectives. Each Advisory Council shall
Director General shall be selected after representing the beneficiaries of the have an opportunity to provide
an open and competitive recruitment Airport Improvement Project and the regularly to MCA-Mali its views or
and selection process, and appointed in Industrial Park Project (‘‘Airport recommendations on the performance
accordance with the Governing Domain Advisory Council’’); and (2) an and progress on the Projects and Project
Documents, which appointment shall be advisory council to the Board Activities, any Implementation
subject to MCC approval. Such representing the beneficiaries of the Document, procurement, financial
appointment shall be further evidenced Alatona Irrigation Project (the ‘‘Alatona management or such other issues as may
by such document as the Parties may Zone Advisory Council,’’ together with be presented from time to time to such
agree. Unless otherwise specified in the the Airport Domain Advisory Council, Advisory Council or as otherwise raised
Governing Documents, the Officers of the ‘‘Advisory Councils’’ and each an by such Advisory Council.
MCA-Mali other than the Director ‘‘Advisory Council’’), which Advisory (iv) Meetings. Each Advisory Council
General shall be selected and hired by Councils shall be independent of MCA- shall hold at least two general meetings
the Board after an open and competitive Mali and shall be established to the per year as well as such other periodic
recruitment and selection process, and satisfaction of MCC. The Government meetings as may be necessary or
appointed in accordance with the shall take all steps necessary to establish appropriate from time to time. The
Governing Documents, which the Advisory Councils as soon as members of each Advisory Council shall
appointment shall be subject to MCC possible following the execution of this be provided timely advance notice of all
approval. Such appointment shall be Compact. such general meetings, invited to
further evidenced by such document as (ii) Composition. participate in all such meetings and
the Parties may agree. (1) Each Advisory Council shall afforded an opportunity during each
(3) Roles and Responsibilities. The consist of no more than fifteen (15) such meeting to present their views or
roles and responsibilities of the voting members and shall be composed recommendations to such Advisory
Management shall include: of representatives of relevant banking Council.
(A) The Management shall assist the organizations, microfinance institutions, (v) Accessibility; Transparency. The
Board in overseeing the implementation farmer associations, women’s members of each Advisory Council shall
of the Program and shall have principal associations, chambers of commerce, be accessible to the beneficiaries they
responsibility (subject to the direction local government, anti-corruption represent to receive the beneficiaries’
and oversight of the Board and subject associations and environmental and comments or suggestions regarding the
to MCC’s contractual rights of approval social organizations (‘‘Civil Society Program. The notices for, and the
as set forth in Section 3(c) of this Stakeholders’’). minutes (including the views or
Program Annex or elsewhere in this (2) The Government shall take all recommendations of the Civil Society
Compact or any Supplemental actions necessary and appropriate to Stakeholders expressed) of all general
Agreement) for the overall management ensure that each Advisory Council is meetings of, each Advisory Council
of the implementation of the Program. established consistent with this Section shall be made public on the MCA-Mali
(B) Without limiting the foregoing 3(e) of this Program Annex and as Web site or otherwise (including
general responsibilities or the generality otherwise specified in the Governing television, radio and print) in a timely
of Designated Rights and Documents or otherwise agreed in manner.
Responsibilities that the Government writing by the Parties. The composition (f) Implementing Entities. Subject to
may designate to MCA-Mali, the of each Advisory Council may be the terms and conditions of this
Management shall develop each adjusted by agreement of the Parties Compact and any other Supplemental
Implementation Document, oversee the from time to time to ensure, among Agreement between the Parties, MCA-
implementation of the Projects, manage others, an adequate representation of the Mali may engage one or more
and coordinate monitoring and intended beneficiaries of the relevant Government Affiliates to implement and
carry out any Project, Project Activity without any liability to MCC, and the under this Compact, then such Auditor/
(or a component thereof) or any other Government shall ensure that MCA-Mali Reviewer Agreement shall be effective
activities to be carried out in engages a new Fiscal Agent, subject to no later than the date agreed by the
furtherance of this Compact (each, an approval by the Board and MCC. The Parties in writing.
‘‘Implementing Entity’’). The Government shall ensure that MCA-Mali (i) Procurement Agent. The
Government shall ensure that MCA-Mali enters into an agreement with the Fiscal Government shall ensure that MCA-Mali
enters into an agreement with each Agent, in form and substance engages one or more procurement agents
Implementing Entity, in form and satisfactory to MCC, that sets forth the through an international competitive
substance satisfactory to MCC, that sets roles and responsibilities of the Fiscal process (each, a ‘‘Procurement Agent’’)
forth the roles and responsibilities of Agent and other appropriate terms and to carry out and certify specified
such Implementing Entity and other conditions, such as payment of the procurement activities in furtherance of
appropriate terms and conditions Fiscal Agent (a ‘‘Fiscal Agent this Compact on behalf of the
(including the payment of the Agreement’’). Such Fiscal Agent Government, MCA-Mali, or the
Implementing Entity, if any) (an Agreement shall not be terminated until Implementing Entity. The roles and
‘‘Implementing Entity Agreement’’). MCA-Mali has engaged a successor responsibilities of each Procurement
Any Implementing Entity Agreement Fiscal Agent or as otherwise agreed by Agent and the criteria for selection of a
between MCA-Mali and a Government MCC in writing. Procurement Agent shall be as set forth
Affiliate that is a Provider or as may (h) Auditors and Reviewers. The in the applicable Implementation Letter
otherwise be required under the or Supplemental Agreement. The
Government shall ensure that MCA-Mali
Disbursement Agreement shall be in Government shall ensure that MCA-Mali
carries out the Government’s audit
form and substance satisfactory to MCC. enters into an agreement with each
responsibilities as provided in Sections
The Implementing Entity shall report Procurement Agent, in form and
3.8(d), (e) and (f) of this Compact,
directly to the relevant Officer, as substance satisfactory to MCC, that sets
including engaging one or more auditors
designated in the applicable forth the roles and responsibilities of the
(each, an ‘‘Auditor’’) required by
Implementing Entity Agreement or as Procurement Agent with respect to the
Section 3.8(d) of this Compact. As
otherwise agreed by the Parties. conduct, monitoring and review of
requested by MCC in writing from time
(g) Fiscal Matters. procurements and other appropriate
(i) Fiscal Agent. The Government to time, the Government shall ensure
terms and conditions, such as payment
shall ensure that MCA-Mali engages a that MCA-Mali also engages (i) an of the Procurement Agent (each, a
fiscal agent following an international independent reviewer to conduct ‘‘Procurement Agent Agreement’’). Any
competitive process (a ‘‘Fiscal Agent’’), reviews of performance and compliance Procurement Agent shall adhere to the
who shall be responsible for, among under this Compact pursuant to Section procurement standards set forth in the
other things: (1) Assisting MCA-Mali in 3.8(f) of this Compact, which reviewer Disbursement Agreement and the
preparing the Fiscal Accountability shall have the capacity to (1) conduct Procurement Guidelines and ensure
Plan; (2) ensuring and certifying that Re- general reviews of performance or procurements are consistent with the
Disbursements are properly authorized compliance, (2) conduct environmental procurement plan adopted by MCA-
and documented in accordance with audits, and (3) conduct data quality Mali pursuant to the Disbursement
established control procedures set forth assessments in accordance with the Agreement (the ‘‘Procurement Plan’’),
in the Disbursement Agreement, the M&E Plan, as described more fully in unless MCA-Mali and MCC otherwise
Fiscal Agent Agreement and other Annex III; and/or (ii) an independent agree in writing.
Supplemental Agreements; (3) Re- evaluator to assess performance as
Disbursement from, and cash required under the M&E Plan (each, a 4. Finances and Fiscal Accountability
management and account reconciliation ‘‘Reviewer’’). MCA-Mali shall select any (a) Multi-Year Financial Plan;
of, any Permitted Account established such Auditor(s) and Reviewer(s) in Detailed Budget.
and maintained for the purpose of accordance with any Governing (i) Multi-Year Financial Plan. The
receiving MCC Disbursements and Document or other Supplemental multi-year financial plan for the
making Re-Disbursements (to which the Agreement. The Government shall Program, showing the estimated amount
Fiscal Agent has sole signature ensure that MCA-Mali enters into an of MCC Funding allocable to each
authority); (4) providing applicable agreement with each Auditor and each Project (and related Project Activities),
certifications for MCC Disbursement Reviewer, in form and substance the administration of the Program (and
Requests; (5) maintaining and retaining satisfactory to MCC, that sets forth the its components) and the monitoring and
proper accounting, records and roles and responsibilities of the Auditor evaluation of the Program (the ‘‘Multi-
document disaster recovery system of or Reviewer with respect to the audit, Year Financial Plan’’) over the Compact
all MCC-funded financial transactions review or evaluation, including access Term on an annual basis, is summarized
and certain other accounting functions; rights, required form and content of the in Annex II to this Compact.
(6) producing reports on MCC applicable audit, review or evaluation (ii) Detailed Budget. During the
Disbursements and Re-Disbursements and other appropriate terms and Compact Term, the Government shall
(including any requests therefor) in conditions such as payment of the ensure that MCA-Mali timely delivers to
accordance with established procedures Auditor or Reviewer (the ‘‘Auditor/ MCC a detailed budget, at a level of
set forth in the Disbursement Reviewer Agreement’’). In the case of a detail and in a format acceptable to
Agreement, the Fiscal Agent Agreement, financial audit required by Section MCC, for the administration of the
the Fiscal Accountability Plan, or any 3.8(d) of this Compact, such Auditor/ Program, the monitoring and evaluation
other Supplemental Agreements; (7) Reviewer Agreement shall be effective of the Program, and the implementation
assisting in the preparation of budget no later than one hundred and twenty of each Project (the ‘‘Detailed Budget’’).
development procedures; and (8) (120) days prior to the end of the The Detailed Budget shall be a
internal management of the Fiscal Agent relevant period to be audited; provided, component of the Work Plan and shall
operations. Upon the written request of however, if MCC requires concurrent be delivered by such time as specified
MCC, the Government shall ensure that audits of financial information or in the Disbursement Agreement, or as
MCA-Mali terminates the Fiscal Agent, reviews of performance and compliance may otherwise be agreed by the Parties.
(iii) Expenditures. Unless the Parties submit the applicable request for an certifications, powers, authorities and
otherwise agree in writing, no financial MCC Disbursement (the ‘‘MCC delegations.
commitment involving MCC Funding Disbursement Request’’) as may be (d) Permitted Accounts. The
shall be made, no obligation of MCC specified in the Disbursement Government shall establish, or cause to
Funding shall be incurred, and no Re- Agreement. MCC will make MCC be established, such accounts (each, a
Disbursement shall be made or MCC Disbursements in tranches to a ‘‘Permitted Account,’’ and, collectively,
Disbursement Request shall be Permitted Account from time to time as the ‘‘Permitted Accounts’’) as may be
submitted, for any activity or provided in the Disbursement agreed by the Parties in writing from
expenditure unless the expense for such Agreement or as may otherwise be time to time, including:
activity or expenditure is provided for agreed by the Parties, subject to Program (i) A single, completely separate
in the Detailed Budget, and unless requirements and performance by the United States Dollar interest-bearing
uncommitted funds exist in the balance Government, MCA-Mali and other account (the ‘‘Special Account’’) at a
of the Detailed Budget for the relevant relevant parties in furtherance of this commercial bank, subject to MCC
period. Compact. Re-Disbursements will be approval, that is procured through a
(iv) Modifications to Multi-Year made from time to time based on competitive process to receive MCC
Financial Plan or Detailed Budget. requests by an authorized representative Disbursements;
Notwithstanding anything to the of the appropriate party designated for (ii) If necessary, an interest-bearing
contrary in this Compact, MCA-Mali the size and type of Re-Disbursement in local currency of Mali account (the
may amend the Multi-Year Financial accordance with any Governing ‘‘Local Account’’) at a commercial bank
Plan, the Detailed Budget, or any Document and Disbursement in Mali, subject to MCC approval, that
component thereof (including any Agreement; provided, however, unless is procured through a competitive
amendment that would reallocate the otherwise agreed by the Parties in process to which funds deposited in the
funds among the Projects, the Project writing, no Re-Disbursement shall be Special Account will be transferred for
Activities, or any activity under made unless and until the written the purpose of making Re-
Program administration or M&E as approvals specified herein and in any Disbursements; and
shown in Annex II), without amending Governing Document and the (iii) Such other interest-bearing
this Compact so long as MCA-Mali Disbursement Agreement for such Re- accounts to receive MCC Disbursements
requests in writing and receives the Disbursement have been obtained and in such banks as the Parties mutually
approval of MCC for such amendment delivered to the Fiscal Agent.
and such amendment is consistent with agree upon in writing.
the requirements of this Compact (c) Fiscal Accountability Plan. By No other funds shall be commingled
(including Section 4 of Annex II), the such time as specified in the in a Permitted Account other than MCC
Disbursement Agreement and any other Disbursement Agreement or as Funding and Accrued Interest thereon.
Supplemental Agreement between the otherwise agreed by the Parties, MCA- All MCC Funding held in an interest-
Parties. Any such amendment shall (1) Mali shall adopt, as part of the bearing Permitted Account shall earn
be consistent with the Objectives and Implementation Documents, a plan that interest at a rate of no less than such
the Implementation Documents; (2) identifies the principles, mechanisms amount as the Parties may agree in the
shall not materially adversely impact and procedures to ensure appropriate applicable Bank Agreement or
the applicable Project, Project Activity fiscal accountability for the use of MCC otherwise. MCC shall have the right,
(or any component thereof), or any Funding provided under this Compact, among others, to view any Permitted
activity under Program administration including the process to ensure that Account statements and activity directly
or M&E as shown in Annex II; (3) shall open, fair, and competitive procedures on-line, where feasible, or at such other
not cause the amount of MCC Funding will be used in a transparent manner in frequency as the Parties may otherwise
to exceed the aggregate amount the administration of grants or agree. By such time as shall be specified
specified in Section 2.1(a) of this cooperative agreements and the in the Disbursement Agreement or as
Compact; and (4) shall not cause the procurement of goods, works and otherwise agreed by the Parties, the
Government’s obligations or services for the accomplishment of the Government shall ensure that, for each
responsibilities or overall contribution Objectives (the ‘‘Fiscal Accountability Permitted Account, MCA-Mali enters
of resources to be less than as specified Plan’’). The Fiscal Accountability Plan into an agreement with the applicable
in Section 2.2(a) of this Compact, this shall set forth, among others, Bank, satisfactory to MCC, that sets forth
Annex I or elsewhere in this Compact. requirements with respect to the the signatory authority, access rights,
Upon any such amendment, MCA-Mali following matters: (i) Re-Disbursements, anti-money laundering and anti-terrorist
shall deliver to MCC a revised Detailed timely payment to vendors, cash financing provisions, and other terms
Budget, together with a revised Multi- management and account reconciliation; related to the Permitted Account (each,
Year Financial Plan, reflecting such (ii) funds control and documentation; a ‘‘Bank Agreement’’). For purposes of
amendment, along with the next MCC (iii) accounting standards and systems; this Compact, the banks holding an
Disbursement Request. (iv) content and timing of reports; (v) account referenced in Sections 4(d) of
(b) Disbursement and Re- preparing budget development this Program Annex are each a ‘‘Bank’’
Disbursement. The Disbursement procedures and the Compact and are collectively referred to as the
Agreement, as amended from time to implementation budget; (vi) policies ‘‘Banks.’’
time, shall specify the terms, conditions concerning records, document disaster
5. Transparency; Accountability
and procedures on which MCC recovery, public availability of all
Disbursements and Re-Disbursements financial information and asset Transparency and accountability to
shall be made. The obligation of MCC to management; (vii) procurement and MCC and to the beneficiaries are
make MCC Disbursements or approve contracting practices; (viii) inventory important aspects of the Program and
Re-Disbursements is subject to the control; (ix) the role of independent the Projects. Without limiting the
fulfillment, waiver or deferral of any auditors; (x) the roles of fiscal agents generality of the foregoing, and in an
such terms and conditions. The and procurement agents; (xi) separation effort to achieve the goals of
Government and MCA-Mali shall jointly of duties and internal controls; and (xii) transparency and accountability, the
Government shall ensure that MCA- assessment (each an ‘‘EA’’), control overland routes to international
Mali: environmental management plans (each, and regional markets. Therefore, air
(a) Establishes an e-mail suggestion an ‘‘EMP’’) and resettlement action traffic has become Mali’s lifeline for
box as well as a means for other written plans (each, a ‘‘RAP’’), each in form and transportation of both passengers and
comments that interested persons may substance satisfactory to MCC, and as export products.
use to communicate ideas, suggestions required under the laws of Mali, the The deteriorating conditions at the
or feedback to MCA-Mali; Environmental Guidelines, this Airport will soon limit the Airport’s
(b) Considers as a factor in its Compact or any Supplemental capacity to handle air traffic growth if
decisionmaking the recommendations of Agreement or as otherwise required by significant capital improvements are not
the Advisory Councils; MCC; and (ii) undertakes to implement made. The Airport’s basic infrastructure
(c) Develops and maintains, in a any environmental and social mitigation dates from 1974, is in poor condition,
timely, accurate and appropriately measures identified in such assessments and is inadequate to handle increased
comprehensive manner, the MCA-Mali or plans to MCC’s satisfaction. passenger and cargo traffic. On the
Web site that includes postings of (b) The Government shall commit to airside, the runway is too short to
information and documents in English fund all necessary costs of accommodate large aircraft without
and French; environmental mitigation (including take-off load penalties, the aeronautical
(d) Posts on the MCA-Mali Web site, costs of resettlement) not specifically pavements urgently need resurfacing
and otherwise makes publicly available provided for in the budget for any and reinforcement, the air navigation
via appropriate means (including Project. aids are reaching the end of their useful
television, radio and print), in the life, and airfield security is deficient. On
Schedule 1 to Annex I—Airport
appropriate language the following the landside, the passenger terminal
Improvement Project
documents or information from time to building is too small to handle current
time: This Schedule 1 generally describes traffic volumes at acceptable levels of
(i) This Compact; and summarizes the key elements of the service, and the facilities and equipment
(ii) All minutes of the meetings of the project that the Parties intend to are in poor physical condition.
Board and the meetings of the Advisory implement in furtherance of the
Bamako-Sénou Airport Improvement 2. Summary of Project and Related
Councils, unless otherwise agreed by
Project Objective (the ‘‘Airport Project Activities
the Parties;
(iii) The M&E Plan, as amended from Improvement Project’’). Additional The Airport Improvement Project is
time to time, along with periodic reports details regarding the implementation of intended to remove constraints to air
on Program performance; the Airport Improvement Project will be traffic growth and increase the Airport’s
(iv) Such financial information as may included in the Implementation efficiency in both passenger and freight
be required by this Compact, the Documents and in the relevant handling through airside and landside
Disbursement Agreement or any other Supplemental Agreements. infrastructure improvements, as well as
Supplemental Agreement, or as may the establishment of appropriate
1. Background
otherwise be agreed from time to time institutional mechanisms to ensure
by the Parties; Economic growth and poverty effective management, operation, and
(v) All Compact Reports; reduction depend on enhanced access to maintenance of the Airport facilities
(vi) All audit reports by an Auditor markets and trade, but Mali’s access is over the long term. The Airport
and any periodic reports or evaluations severely constrained. The Airport Improvement Project includes the
by a Reviewer; Improvement Project will expand Mali’s following Project Activities:
(vii) All relevant environmental access to markets and trade through • Airside Infrastructure.
impact assessments and supporting improvements to the transportation Improvements will include
documents, and such other infrastructure at the Airport, and better reinforcement overlay to, and expansion
environmental documentation as MCC management of the national air of, the runway, taxiway, and apron
may request; transport system. The Government areas; replacement of deteriorating
(viii) A copy of the Disbursement recognizes the importance of improved navigational equipment; and upgrades
Agreement, as amended from time to air transportation infrastructure. Mali’s of Airport security systems.
time; PRSP for 2002 includes rehabilitation of • Landside Infrastructure.
(ix) A copy of any document relating Airport infrastructure to ‘‘promote Improvements will be made to the
to the formation, organization and access of Malian producers to domestic existing passenger terminal and a new
governance of MCA-Mali, including all and international markets.’’ passenger terminal will be constructed,
Governing Documents, together with Mali, a landlocked country, depends as well as support facilities, airport
any amendments thereto; and heavily on inadequate rail and road roads, and parking lots. Certain utilities,
(x) A copy of the Procurement networks that result in high including water supply, solid waste
Guidelines, any procurement policies or transportation costs, as well as on disposal facilities, wastewater
procedures and standard documents, freight transport through seaports in treatment, and power generation, are
certain information derived from each neighboring countries, such as Conakry, also planned to be constructed and
Procurement Plan (as specified in the Guinea (Bamako’s closest port which is designed as joint systems to support
Disbursement Agreement), and all bid 1000 km away) and Abidjan, Cote both the proposed investments at the
requests and notifications of awarded d’Ivoire. In the last few years, the Airport and the adjacent Industrial Park.
contracts. instability in Cote d’Ivoire has • Institutional Strengthening.
dramatically limited Mali’s market Infrastructure improvements will be
6. Environmental Accountability access. Before the outbreak of the accompanied by the establishment of
(a) The Government shall ensure that Ivorian crisis, 70% of Malian exports appropriate institutional mechanisms to
MCA-Mali (or any other Permitted were transported via the port of ensure effective management, operation
Designee) (i) undertakes and completes Abidjan. In 2003, this amount dwindled and maintenance of the Airport facilities
any environmental impact assessments to less than 18% due to the over the long term. These measures will
(each, an ‘‘EIA’’), any environmental aforementioned crisis. Mali cannot involve both the management of the
Airport, as well as the wider regulatory poor condition, the runway is also one (i) Upgrade of the passenger terminal
framework governing the civil aviation of the shortest in West Africa, which has facilities by (1) refurbishing the existing
sector in Mali. further constrained the Airport’s ability Terminal A’s passenger ticketing,
In connection with the Project to attract air services to Mali and retain lounge, and passport control areas; (2)
Activities, MCA-Mali will assist and them. This Project Activity will improve expanding the existing Terminal B’s
take all necessary steps to ensure that the design parameters (geometry and immigration and baggage areas; and (3)
the joint EIA, EMP/EMS, including an bearing strength) of the airside constructing a new passenger terminal
HIV/AIDS awareness plan, and RAP infrastructure and improve safety and building.
(consistent with World Bank security operations such that the Airport (ii) Enhancement of support facilities
Operational Policy 4.12 on Involuntary can more efficiently accommodate a and equipment for ground support
Resettlement) for all activities of the greater volume of air traffic and heavier vehicles and materials, Airport
Airport Improvement Project and the loads in the future. Specifically, MCC maintenance and auxiliary equipment
Industrial Park Project are processed Funding will support the following: areas, and fire-fighting vehicles.
and permits delivered in accordance (i) Resurfacing, reinforcement, and (iii) Provision for road and terminal
with Mali Decrét No. 03–594–P–RM on expansion of the runway, apron, and parking improvements to improve
environmental impact studies and the aircraft pavement areas through (1) a current circulation areas and meet
Environmental Guidelines, all of which structural overlay to apron, taxiway, and future projected needs.
will be subject to MCC approval. MCC runway areas; (2) an extension of the (iv) Construction of supporting utility
Funding will support implementation of runway of at least 400 meters; and (3) infrastructure, much of which will be
the environmental and social mitigation an extension of the taxiway connector shared with the Industrial Park Project,
measures identified in the EIA, EMP/ to handle the projected service
aircraft parking apron to provide a
EMS, and RAP, in a manner satisfactory requirements of the Airport. In
location for additional aircraft overnight
to MCC, according to the conditions particular, wastewater, water, solid
staging and a back-up for smaller
precedent set forth in the Disbursement waste, power, telecommunications, and
domestic and charter aircraft.
Agreement. drainage systems will be improved and
(ii) Replacement and upgrading of
The M&E Plan (described in Annex enhanced.
existing aging navigational aids to bring (c) Project Activity: Institutional
III) will set forth anticipated results and,
Airport facilities up to a ‘‘common level Strengthening (the ‘‘Institutional
where appropriate, regular benchmarks
of service,’’ as the equipment has Strengthening Activity’’).
that may be used to monitor the
reached the end of its useful life. The Under the present division of
progress of the implementation of the
extension of the runway will also jurisdictions, a number of entities have
Airport Improvement Project.
require additions to the airfield lighting responsibility for the civil aviation
Performance against these benchmarks,
system. sector in Mali in general and the
as well as the overall impact of the
Airport Improvement Project, will be (iii) Improvement to airfield security regulation, oversight, management,
assessed and reported at the intervals to will include (1) a perimeter security operation, and development of the
be specified in the M&E Plan, or as road; (2) explosives detection, x-ray, and Airport in particular. The Ministry of
otherwise agreed by the Parties, from handheld metal detection equipment; Equipment and Transport has overall
time to time. The Parties expect that (3) security identification/access and responsibility, with oversight and
additional indicators will be identified video surveillance systems; and (4) a regulation of the civil aviation sector
during implementation of the Airport central security control point and and airports delegated to a new
Improvement Project. The expected communications equipment. independent agency, ANAC. The
results from, and the key benchmarks to (b) Landside Infrastructure (the Airport’s maintenance and operation
measure progress on, the Airport ‘‘Landside Infrastructure Activity’’). responsibilities are split between the air
Improvement Project, as well as the Due to limited expansion over the navigation service provider, ASECNA,
Project Activities undertaken or funded past 32 years, the ability of the terminal for airside facilities and the Airport
thereunder, are set forth in Annex III. to accommodate passenger traffic has operator, Aéroports du Mali (‘‘AdM’’),
Estimated amounts of MCC Funding steadily deteriorated to the point that it for landside facilities. ASECNA is
for each Project Activity for the Airport operates at IATA Level of Service ‘‘F’’ responsible for the ‘‘technical’’ aspects
Improvement Project are identified in (chronic congestion and frequent system of the Airport, including the runway,
Annex II. Conditions precedent to each breakdown). The existing ground taxiways, apron, airfield lighting,
Project Activity under the Airport support equipment facilities are navigational aids, control tower,
Improvement Project, and the inefficient, outdated, and lacking in telecommunications and fire fighting
sequencing of such Project Activities, space for storage of materials; their and rescue facilities. AdM, in turn, is
shall be set forth in the Disbursement current location separates passenger responsible for the ‘‘commercial’’
Agreement, other Supplemental activities from Airport support aspects of the Airport, including the
Agreements and the relevant operations, with a resulting negative passenger terminal, landside roads and
Implementation Documents. The impact on the functionality and security parking, cargo terminal, flight kitchen
following summarizes each Project of the Airport. As passenger and cargo and freight forwarders’ facilities.
Activity under the Airport Improvement traffic increase over the next 10–15 According to the existing institutional
Project: years, significant utility infrastructure arrangements, both organizations
(a) Airside Infrastructure (the ‘‘Airside improvements will also be needed to operate and maintain facilities put at
Infrastructure Activity’’). meet projected demand. This Project their disposal by the Government.
Although the existing aircraft Activity will expand the size, quality, Specifically, MCC Funding will
pavements, runway, and parking apron and operational efficiency of the support the following:
surfaces are functional, they are more Airport’s landside infrastructure so that (i) Reinforcement of the new civil
than thirty years old and detailed it can accommodate significant aviation regulatory and oversight agency
studies have indicated that they will increases in passenger and cargo traffic (ANAC) by providing technical
deteriorate without near-term in the future. Specifically, MCC assistance to establish a new
improvements. In addition to being in Funding will support the following: organizational structure, administrative
and financial procedures, staffing and provide more detailed and reliable data Airport and Industrial Park. The
training, and providing equipment and on employment and poverty in the program is to be realized between 2006
facilities. Bamako area. and 2011.
(ii) Rationalization and reinforcement
of the Airport’s management and 4. Donor Coordination; Role of Private COSCAP/WAEMU
operations agency (AdM) by providing Sector and Civil Society Mali is a signatory of a recent
technical assistance to establish a model The Airport Improvement Project agreement involving the West African
for the management of the Airport and leverages and complements other donor, Economic and Monetary Union
the long-term future status and private sector and civil society activities (‘‘WAEMU’’) and Mauritania and ICAO,
organizational structure of AdM, in Mali as described below. Throughout referred to as Cooperative Operational
including provision for eventual private implementation, MCC will continue to Safety and Continuing Airworthiness
sector participation. collaborate with these donors to Project (‘‘COSCAP’’), with the goal of
strengthen the institutional reforms and promoting the security and safety of
3. Beneficiaries broaden access to the Airport for aviation in the West African region.
Improvements in the airside and passengers and goods. Under this agreement, a permanent
landside facilities in the Airport are community agency of safety and
intended to support economic growth USDOT Safe Skies for Africa (SSFA)
security is to be established, with the
through (a) increased revenue generated The SSFA program is intended to aim of achieving better efficiency and
by growth in passenger and aircraft promote sustainable improvements in economy by means of the common use
traffic, and (b) increases in the value aviation safety, security, and air of resources on the part of the signatory
and volume of goods shipped through navigation, and to support Africa’s countries.
the Airport. Direct beneficiaries include integration into the global economy. It is
passengers who spend less time going based on the premise that ‘‘Safe Skies’’ Private Sector and Civil Society
through Airport procedures prior to are a prerequisite for increased trade Private sector and civil society
boarding, additional Airport services and investment and long-term economic participated in the consultative process
employees for Airport operations, development in Africa. Specific goals of that resulted in inclusion of the Airport
baggage handling, and flight kitchen, as the SSFA program include: (a) Improvement Project in the Compact.
well as passenger terminal commercial Increasing the number of sub-Saharan This Project aims to leverage investment
concessions. An increase in foreign African countries that meet ICAO safety by businesses in the Airport, as well as
passengers implies additional standards (based on Federal Aviation through businesses that benefit from
substantial benefits for the tourism Administration (FAA) assessments); (b) Airport traffic (including airlines,
industry, both in terms of increased improving airport security in the region; ground support operators, retail
revenues to hotels and restaurants and and (c) improving regional air concessions, businesses exporting and
additional employment and wages. navigation services. SSFA coordinates importing through the Airport, tourism
The indirect impact of the Airport activities of other agencies such as the operators, etc.), so efforts will be made
Improvement Project through increased FAA, TSA and the National to continue to involve their feedback on
tourism and impact on the informal Transportation Safety Board to improve the design and implementation of this
sector could have a significant effect on the capacities of African aviation Project. Both civil society and the
growth and poverty reduction. Increased organizations. private sector will be represented on the
demand for airline services should have MCA-Mali Board of Directors and
significant additional long-term benefits World Bank
Advisory Councils. In addition,
for Mali as tourist facilities expand in The World Bank is assisting in the consultations on the EIA will be
tandem with increased tourism. Further, funding of a regional program in West conducted with affected parties and
new business travelers may translate and Central Africa aimed at improving other stakeholders, in accordance with
into additional foreign investment for civil aviation safety and security as a the Environmental Guidelines, Mali
Mali which could transform the key element of improving the Decrét No. 03–594–P–RM on
economic profile of the country. performance and affordability of air environmental impact studies, and the
The informal sector active around the transportation and optimizing its role as draft Arrête Interministeriel on the
Airport will benefit from an expansion an engine of economic and social procedure for public consultation on
of Airport passenger and cargo traffic. development. With respect to Mali, a environmental impact studies. Also,
Since unemployment and country agreement under this program consultations of persons affected by the
underemployment in the Bamako region focuses on strengthening the oversight Airport Improvement Project will be
are substantial, a proportion of new capacities of ANAC and improving conducted for the RAP, consistent with
service employees are likely to transfer Airport security and safety, including World Bank Operational Policy 4.12 on
from low paying, sporadic informal the provision of civil aviation authority Involuntary Resettlement.
activity to higher paying, steady work at equipment, Airport screening
the Airport, an additional important equipment, a crisis center to meet ICAO 5. U.S. Agency for International
indirect benefit to the economy. requirements, some Airport Development (‘‘USAID’’)
A majority of those impacted by the infrastructure and consulting services Both USAID-funded ‘‘Mali Finance’’
Airport Improvement Project are aimed at reform and capacity building. and ‘‘Mali Trade’’ projects have
expected to be women since official The World Bank has also signed an improved the value chains of
Malian employment data indicate that agreement with the Government for the agricultural products such as mangoes
82% of hotel and restaurant workers in ‘‘Mali Growth Support Project’’ which and green beans. These high value
Bamako are women. Women also includes, among other activities, loan products have strong potential for
account for 56% of the informal sector financing for the development of increased exportation via air freight.
and the majority of working women in Airport and industrial park facilities
Bamako are employed in the informal located within the Airport domain. It 6. Sustainability
sector. Further analysis using data from also includes assistance aimed at The Airport Improvement Project will
specific surveys to be conducted, will strengthening the management of the build on recent Government efforts to
reform the Malian civil aviation sector 1. Background subzones as well as lateral water/
through the Institutional Strengthening An adequate water supply, reliable drainage piping, etc. to service the
Activity, providing technical assistance power, wastewater treatment systems, smaller parcels. The tertiary (on-lot)
to both ANAC and AdM. The Airport and solid waste disposal are necessary infrastructure, including interior roads
Improvement Project will also assist in to attract entrepreneurs and promote and parking, water supply taps/
improving the maintenance and economic growth. Currently, Mali lacks connections and fire protection,
operation of the Airport by ensuring the the infrastructure to provide these electrical and telecommunications, and
implementation of efficient, transparent services reliably. The Industrial Park wastewater collection (and possibly
and effective private participation in the Project will create this necessary pretreatment), are all to be financed and
management of the Airport, in built by the industries locating in the
infrastructure to respond to the pent-up
collaboration with relevant Government Industrial Park.
demand for serviced industrial land.
entities, as well as the private sector. • Resettlement. Resettlement
Through an MCC-funded demand study activities, which must be consistent
Environmental and social sustainability conducted in January 2006, Malian
is expected to be achieved through the with World Bank Operational Policy
business owners strongly expressed a 4.12 on Involuntary Resettlement,
development and implementation of an willingness to pay for good quality land
EMP that will guide construction require compensation for loss of
with solid infrastructure and reliable livelihoods as a result of both physical
activities and implementation of services. The Industrial Park Project also
pollution control for new and and economic displacement. The scope
aims to reduce the excessive cost and of this displacement is larger than the
rehabilitated infrastructure. An time of setting up and running 200 ha acquisition of land and
Environmental Management System businesses in Mali. Out of all compensation of users for the Industrial
(‘‘EMS’’) will be developed to provide manufacturing projects licensed by the Park. Common infrastructure facilities
for continuing environmental CNPI, only a fraction are implemented. for wastewater treatment, power
sustainability of Airport operations. This poor implementation rate is a generation, water supply, conveyance
AdM and the DNCPN will receive current concern of the Government and and storage, and solid and hazardous
technical assistance to develop steps have been taken to improve the waste disposal serve both the Industrial
environmental capacity during the business climate and provide the Park and the Airport. All of these
Compact Term. AdM will be required to necessary infrastructure through MCC’s infrastructure facilities require
seek ISO 14000 certification prior to the investment. In addition to contributing acquisition and clearing of land and
end of the Compact Term. AdM will to the efforts toward policy and rights of way outside the Industrial
also be required to hire an Airport and institutional reform, the Industrial Park Park, both inside and outside the
Industrial Park environmental manager Project will provide business services to Airport domain. To compensate peri-
to oversee the implementation of support small- and medium-sized urban cultivators who practice rain-fed
environmental requirements. enterprises. agriculture in the Airport domain and
7. Proposals 2. Summary of Project and Related whose lands are required for the
Project Activities Industrial Park Project and the Airport
Public solicitations for proposals are Improvement Project, the Industrial
anticipated to procure goods, works and The Industrial Park Project, located Park Project will develop serviced
services, as appropriate, to implement within the Airport domain, will develop garden plots offered on a long-term (e.g.,
all Project Activities under the Airport a platform for industrial activity (100 40-year) lease on land elsewhere in the
Improvement Project. MCA-Mali will hectares (‘‘ha’’) initially) to meet the Airport domain. Acquisition of other
develop, subject to MCC approval, a high and growing demand for industrial land for infrastructure and rights of way
process for consideration of all such land. The Industrial Park is intended to located outside the Airport domain will
proposals. Notwithstanding the be an anchor for a growing industrial also require compensation, the nature of
foregoing, MCA-Mali may also consider, sector in Mali, thereby alleviating a key which will be determined during the
using a process developed subject to constraint to value-added production development of the RAP, which will
MCC approval, any unsolicited and economic growth. Reliable cover the resettlement and
proposals it might receive. provision of utility services, including compensation issues related to both the
electricity, water, and wastewater, will Industrial Park Project and the Airport
8. Government Obligation increase business productivity. This Improvement Project.
Project will leverage national reforms in • Institutional Strengthening.
The Government shall assure the the business sector, reducing the cost Infrastructure improvements will be
provision of adequate financing for the and time to register a business, and accompanied by the establishment of
rehabilitation and expansion of air cargo enhance management and planning of appropriate mechanisms that will
facilities. the industrial sector. The Industrial Park ensure effective management, operation
Schedule 2 to Annex I—Industrial Park Project includes the following Project and maintenance of the facilities over
Project Activities: the long term. These mechanisms will
• Primary and Secondary involve the management of the
This Schedule 2 generally describes Infrastructure. The Industrial Park Industrial Park itself, as well as
and summarizes the key elements of the Project will fund primary and secondary administrative and regulatory reforms to
project that the Parties intend to infrastructure systems for the 100 ha alleviate current constraints to business
implement in furtherance of the Industrial Park, designed for potential development in Mali. To encourage the
Industrial Park Project Objective (the expansion to a larger 200 ha industrial development of small- and medium-
‘‘Industrial Park Project’’). Additional zone (as identified in the Proposal). The sized enterprises, the Industrial Park
details regarding the implementation of primary infrastructure will include Project will provide business services
the Industrial Park Project will be major road systems and utilities such as such as access to financial and market
included in the Implementation water supply mains and pump stations. information and export facilitation
Documents and in the relevant Secondary infrastructure will include services. The Industrial Park Project will
Supplemental Agreements. roads leading into Industrial Park also focus on how to ensure
coordination in operations and secondary infrastructure has been sized (b) Resettlement (the ‘‘Resettlement
maintenance of shared utilities between to meet projected demand for land over Activity’’).
the Airport and Industrial Park a 20-year horizon (100 ha within a larger The Resettlement Activity will
operators. 200 ha zone). As plots are marketed and involve resettlement compensation for
In connection with the Project leased, the industries themselves will all those economically or physically
Activities, MCA-Mali will assist and build the on-lot buildings and facilities displaced as a result of the Industrial
take all necessary steps to ensure that to begin operations. This Project Park Project and related support
the joint EIA, EMP/EMS, including an Activity will provide the backbone for infrastructure, which will be shared by
HIV/AIDS awareness plan, and RAP the first modernly managed, serviced the Industrial Park Project and the
(consistent with World Bank industrial park in Mali, meeting the Airport Improvement Project.
Operational Policy 4.12 on Involuntary significant immediate and projected Specifically, MCC funding will support
Resettlement) for all activities of the need for industrial space in the country. the following:
Industrial Park Project and the Airport Specifically, MCC Funding will support (i) Development of serviced garden
Improvement Project are processed and the following: plots on approximately 20 ha of the
permits delivered in accordance with (i) Transportation improvements Airport domain, to be offered on a long-
Mali Decrét No. 03–594–P–RM on including construction of a primary term (e.g., 40-year) lease to replace the
environmental impact study and the road, adjustment and construction of loss of resources (physical or conomic
Environmental Guidelines, all of which traffic rotaries, and development of displacement) of those cultivating or
will be subject to MCC approval. MCC internal access roads and sidewalks, to otherwise using the Industrial Park area
Funding will support implementation of handle the projected traffic for the or other parts of the Airport domain
the environmental and social mitigation Industrial Park. In addition, some where land acquisition is required for
measures as identified in the EIA, EMP/ earthworks (leveling and compacting) the common infrastructure. The specific
EMS, and RAP, satisfactory to MCC, are required due to existing site area needed will depend upon the
according to the conditions precedent topography. cadastral mapping of lands and
set forth in the Disbursement (ii) Wastewater collection and identification of rights holders, to be
Agreement. provided by the Government, for lands
treatment including construction of a
The M&E Plan (described in Annex required by the Project Activities within
wastewater treatment plant (to be shared
III) will set forth anticipated results and, the Airport domain.
with the Airport Improvement Project),
where appropriate, regular benchmarks (ii) Final design and implementation
pumping station, and collection system,
that may be used to monitor the of siting and designs of serviced market
as there is currently no adequate system
progress of the implementation of the gardening plots, based on consultation
available in the Airport domain.
Industrial Park Project. Performance with those affected and agreement on
(iii) Solid and hazardous waste the location.
against these benchmarks, as well as the
overall impact of the Industrial Park treatment and disposal through the (iii) Compensation, which could
Project, will be assessed and reported at development of a Government landfill include serviced garden plots or other
the intervals to be specified in the M&E site located east of the Airport domain forms of compensation, for those
Plan, or as otherwise agreed by the or an alternative incinerator facility. physically or economically displaced in
Parties, from time to time. The Parties Solid and hazardous waste cells will be locations outside the Airport domain
expect that additional indicators will be constructed to meet the projected waste that are required for infrastructure
identified during implementation of the arising from the Airport Improvement construction and rights of way, based on
Industrial Park Project. The expected Project and Industrial Park Project. the locations of the infrastructure and
results from, and the key benchmarks to (iv) Power generation and distribution the analysis to be conducted in the RAP.
measure progress on, the Industrial Park by funding a 20 MW co-generation (c) Institutional Strengthening (the
Project, as well as the Project Activities power plant to be shared with the ‘‘Institutional Strengthening Activity’’).
undertaken or funded thereunder, are Airport Improvement Project, along Currently, enterprises in the Bamako
set forth in Annex III. with high-tension lines, transformers, area have one major option for
Estimated amounts of MCC Funding back-up emergency generators, and industrial land—Sotuba, located in the
for each Project Activity for the electric substations. Bamako region and one of the few
Industrial Park Project are identified in (v) Water treatment and supply industrial zones in the country.
Annex II. Conditions precedent to each through development of a water Unfortunately, Sotuba is unsuitable for
Project Activity under the Industrial treatment plant and pump station west further industrial development. Roads
Park Project, and the sequencing of such of the Airport domain, to be shared with are unpaved, narrow, and congested;
Project Activities, shall be set forth in the Airport Improvement Project. In water and electricity connections are
the Disbursement Agreement, any other addition, the Industrial Park Project will inadequate; drainage is poor, with
Supplemental Agreements and the fund water storage tanks and an flooding common in the rainy season;
relevant Implementation Documents. enhanced distribution network for the and there is no control on the kind or
The following summarizes each Project Airport domain. location of uses in the industrial zone,
Activity under the Industrial Park (vi) Telecommunications so that slaughterhouses are located next
Project: improvements by installing backbone to milk factories and residential areas
(a) Primary and Secondary fiber-optic cable network. have encroached into industrial spaces.
Infrastructure (the ‘‘Primary and (vii) Surface drainage improvements, The problems of Sotuba can be directly
Secondary Infrastructure Activity’’). including retention basins, drainage attributed to a lack of initial planning
The Primary and Secondary canal improvements, and stormwater and the absence of an appropriate
Infrastructure Activity will involve the collection drains, to control and retain management structure to supervise the
building of necessary infrastructure and storm water runoff, especially during development and the ongoing operation
the reliable provision of utility services the rainy season. of the industrial zone. Specifically, MCC
for the Industrial Park. Consistent with (viii) Security improvements such as Funding will support the following:
international best practices, the a perimeter security fence will be (i) Recruitment and start-up of a
Industrial Park Project’s primary and required for the new Industrial Park. private operator, selected through
international tender, to manage the day- It is expected that the indirect benefits sector and civil society feedback on the
to-day operations of the Industrial Park. will be considerably greater than the design and implementation of the
(ii) Support to businesses in the direct benefits, encouraging prospective Industrial Park Project. Both the private
Industrial Park and other related entrepreneurs and investors through an sector and civil society will be
organizations to the Industrial Park. improved business climate and better represented on the Board and Advisory
This will involve limited support infrastructure. Shifting even a portion of Councils. In addition, consultations on
services to small- and medium-sized Malian real estate investments to value- the EIA will be conducted with affected
enterprises in areas such as access to added activities would also contribute parties and other stakeholders, in
financial and market information and to poverty reduction. accordance with the Environmental
export facilitation. As part of this sub- Guidelines, Mali Decrét No. 03–594–P–
activity, the Industrial Park will also 4. Donor Coordination; Role of Private RM on environmental impact studies
coordinate closely with and support Sector and Civil Society and the draft Arrête Interministeriel on
organizations responsible for attracting The Industrial Park Project leverages the procedure for public consultation on
and approving industrial projects, as and complements other donor, private environmental impact studies. Also,
well as with regulatory and licensing sector and civil society activities in Mali consultations of persons affected by the
bodies. as described below. This Project will Industrial Park Project will be
(iii) Coordination in operations and continue to collaborate closely with conducted for the RAP, consistent with
maintenance of shared utilities between these actors throughout implementation World Bank Operational Policy 4.12 on
the Airport and Industrial Park to support private management of, and Involuntary Resettlement.
operators. This will also involve attract new businesses to invest in, the
coordination with utility companies and 5. USAID
Industrial Park.
other Government agencies involved in The Industrial Park Project will build
approving, managing, and operating World Bank on USAID’s efforts during
utilities that will serve the Industrial Among other objectives, the World implementation and strengthen best
Park and Airport. Bank ‘‘Mali Growth Support Project’’ practices in agricultural and financial
aims to improve the investment climate support to farmers and capacity
3. Beneficiaries
to increase total factor productivity and building of API-Mali.
The industrial sector in Mali currently growth; assist in the development of • Mali Finance provides business
accounts for eight percent of GDP. The infrastructure with a focus on the development services through financial
IMF projections suggest that industry Airport and Industrial Park; expand the institutions and other partners, such as
(manufacturing, mining, energy, and telecommunications network; make MSMEs and MFIs, especially in
construction) will continue to expand at various infrastructure improvements for northern Mali. Through this project,
more than a six percent annual rate tourism and mining; and increase term USAID is supporting the establishment
through 2010. Manufacturing output financing for micro-, small-, and and start-up of API-Mali, the investment
accounts for about one-third of all medium-sized enterprises (‘‘MSMEs’’) promotion agency, responsible for
industrial activity, with the majority of and provide business development promoting, approving and regulating
manufacturing firms located in the services (‘‘BDS’’). The Industrial Park industrial activity in Mali.
Bamako region. Project also complements the World • Trade Mali provides marketing
The tenants of the Industrial Park Bank Agriculture and Diversification support and targets six agricultural
would be start-up and relocated Project which aims to increase sectors: mango, potato, red meat, rice,
businesses—both attracted by a agricultural productivity and shea butter, and sesame.
convenient site, good infrastructure, and diversification into higher value crops.
support services. Existing firms will 6. Sustainability
choose to relocate to the Industrial Park Other Donors MCC will support the recruitment and
if the gains in efficiency more than The Industrial Park Project start-up of a private operator to manage
compensate their relocation costs and complements other donors’ programs, the Industrial Park and will finance
higher expenses on utilities such as such as the Dutch Development limited business support services to
water and power. While the exact Agency’s activities in agricultural tenants of the Industrial Park. To
pattern of investments in the Industrial diversification and marketing, encourage the creation and growth of
Park cannot be predicted, it is expected agricultural processing, improved water MSMEs, the Industrial Park Project will
that the agro-processing, printing, management, and institutional help MSMEs access financial and
packaging, and information technology- strengthening in the ON zone. The market information, as well as export
related firms will constitute the main Dutch Development Agency has facilitation services. In addition, the
sector of activities. Based on current recently approved financing for a cold Industrial Park Project will focus on
trends, business ownership is most storage facility in Bamako that will be how to ensure coordination in
likely to be Malian, although there may located in the Airport domain. This operations and maintenance of shared
also be joint ventures. facility will be used for mangoes and utilities between the Airport and
Direct beneficiaries will be firms other high value agricultural products, Industrial Park operators.
locating in the Industrial Park, such as green beans and potatoes. Environmental and social
especially small and medium sustainability provisions for the
enterprises with fewer alternatives, who Private Sector and Civil Society Industrial Park will be similar to those
will benefit from improved Private sector and civil society for the Airport Improvement Project. In
infrastructure and services. Employees participated in the consultative process addition, agreement to adhere to pre-
of these firms also constitute direct that resulted in inclusion of the established site standards and
beneficiaries of this Project. Firms that Industrial Park Project in the Compact. requirements for pollution control, such
will supply the Industrial Park with The Industrial Park Project aims to as pre-treatment of effluents and
goods and services will also benefit leverage investment by the private appropriate management of waste, will
from the Project, adding to the sector in the Industrial Park, so efforts be pre-requisites for installation by
employment impact. will be made to continue to seek private industry into the Industrial Park. Site
standards and requirements will be the zone. The ON comprises one million consists of land parcel creation, land
outlined in the EMP and EMS. ha of a vast fossilized inland delta rights education, registration system
whose rich, alluvial soils can be upgrade, land parcel allocation and
7. Proposals
irrigated via a gravity-fed system from titling, and management of land
Public solicitations for proposals are the Niger River, the largest river in West revenues.
anticipated to procure goods, works and Africa. Its waters are highly suitable for • Resettlement, Social Infrastructure,
services, as appropriate, to implement irrigation with low sediment and salt and Social Services. This Project
all Project Activities under the content, minimizing the risk of Activity will compensate families
Industrial Park Project. MCA-Mali will salinization. Recognized as a high residing in the perimeter or with rights
develop, subject to MCC approval, a potential agricultural zone, the French to land therein consistent with World
process for consideration of all such colonial administration established an Bank Operational Policy 4.12 on
proposals. Notwithstanding the extensive hydrological network of Involuntary Resettlement by offering
foregoing, MCA-Mali may also consider, diversions, canals, and drains in the land in the irrigation perimeter or, if the
using a process developed subject to 1930s. Rice production has been the land option is not chosen, other
MCC approval, any unsolicited dominant agricultural activity since compensation alternatives. This Project
proposals it might receive. 1970, with some counter-season Activity will provide social
Schedule 3 to Annex I—Alatona horticultural production. infrastructure, to serve these project-
Irrigation Project Approximately 77,000 ha are under affected persons plus incoming settlers
production today, with the possibility and other migrant families and also
This Schedule 3 generally describes for expansion to 200,000 ha, with support social services (primarily
and summarizes the key elements of the further infrastructure investment. education and health staff) during the
project that the Parties intend to last three years of the Compact Term.
implement in furtherance of the Alatona 2. Summary of the Alatona Irrigation • Agricultural Services. This Project
Irrigation Project Objective (the Project and Related Project Activities Activity will support a range of
‘‘Alatona Irrigation Project’’). Additional The Alatona Irrigation Project is agricultural, institutional and related
details regarding the implementation of focused on increasing production and services to strengthen capacity and
the Alatona Irrigation Project will be productivity, increasing farmer incomes, improve agricultural practice through
included in the Implementation improving land tenure security, applied agricultural research, extension
Documents and in the relevant modernizing irrigated production and farmer training, support to farmer
Supplemental Agreements. systems and mitigating the uncertainty organizations, and support to water
1. Background from subsistence rain-fed agriculture. It users associations (‘‘WUAs’’).
seeks to develop 16,000 ha of newly • Financial Services. This Project
MCC’s investments will support the irrigated lands, representing an almost Activity will encourage agricultural
development of key infrastructure and 20% increase of ‘‘drought-proof’’ lending by reducing the risks of
policy reform for productive sectors and cropland and a 7% increase of the extending credit in this newly
capitalize on one of Mali’s major assets, country’s total stock of fully or partially developed zone, improving
the Niger River Delta, for irrigated irrigated land. The Alatona Irrigation transparency within the existing
agriculture. The Alatona Irrigation Project will introduce innovative financial system, and strengthening the
Project will create a platform for agricultural, land tenure, and water capabilities of local financial
increased production and productivity management practices, as well as policy institutions through a credit risk sharing
of agriculture and will be a catalyst for and organizational reforms aimed at program, microfinance credit bureau
the transformation and realizing the ON’s potential to serve as strengthening, financial institution
commercialization of family farms. It an engine of rural growth for Mali. The capacity building, and direct support to
will support Mali’s national Project Activities that are funded under farmers.
development strategy to increase the this Project are: In connection with the Project
contribution of the rural sector to • Niono-Goma Coura Road. This Activities (other than the Road Activity,
economic growth and help achieve Project Activity will upgrade an 81 km except as provided in Section 2(a)
national food security. Agriculture is a north-south road within the national below), MCA-Mali will assist and take
vital economic sector, contributing 40% highway network from its current earth/ all necessary steps to ensure that the
to GDP. Eighty percent of the population gravel condition to a paved standard. EIA, EMP (including an HIV/AIDS
earns a living from agriculture. MCC’s The investment will also include an awareness plan and a pest management
investments in this sector will be additional access spur to the Alatona plan), and RAP (consistent with World
strengthened by policy reforms and perimeter at the village of Dogofry. Bank Operational Policy 4.12 on
institutional support such as formal • Irrigation Planning and Involuntary Resettlement) for all
land titles for farmers, demand-driven Infrastructure. This Project Activity will irrigation activities of the Alatona
rural advisory services, an improved involve main conveyance system Irrigation Project are processed and
business environment, and increased expansion, Alatona irrigation system permits delivered in accordance with
access to markets and trade. The hard development, and support to the ON Mali Decrét No. 03–594–P–RM on
and soft investments will impact the agency on water management. environmental impact studies and the
poor in Mali, particularly Malian • Land Allocation. The Alatona Environmental Guidelines, all of which
farmers and small and medium-size Irrigation Project will improve rural will be subject to MCC approval. MCC
entrepreneurs, not only in the Alatona land tenure security in Mali by funding will support implementation of
zone but, over time, on a national and allocating newly developed, irrigated the environmental and social mitigation
regional scale. land to family farmers, women market measures as identified in the EIA, EMP,
The Alatona zone is located in the gardeners, and farming companies in HIV/AIDS awareness plan, pest
ON. The term ON refers both to the private ownership. These land management plan and RAP, satisfactory
geographical zone and the authority recipients will purchase the land by to MCC, according to the conditions
charged with the management of water making annual payments over a 15–20 precedent set forth in the Disbursement
resources and agricultural support in year period. This Project Activity Agreement.
The M&E Plan (described in Annex Additionally, in connection with the technical assistance and equipment to
III) will set forth anticipated results and, Road Activity, MCA-Mali will assist and the ON for installing and
where appropriate, regular benchmarks take all necessary steps to ensure that operationalizing a communications-
that may be used to monitor the the EA, EMP (including an HIV/AIDS based water management system as well
progress of the implementation of the awareness plan), and RAP (consistent as improving overall system
Alatona Irrigation Project. Performance with World Bank Operational Policy management to ensure more efficient
against these benchmarks, as well as the 4.12 on Involuntary Resettlement) for and effective water management
overall impact of the Alatona Irrigation the Road Activity of the Alatona throughout the ON system. This system
Project, will be assessed and reported at Irrigation Project are processed and will also provide the basis for data
the intervals to be specified in the M&E permits delivered in accordance with analysis and permitting flow
Plan, or as otherwise agreed by the Mali Decrét No. 03–594–P–RM on adjustments according to climatic
Parties. The Parties expect that environmental impact studies and the fluctuations and other water demand
additional indicators will be identified Environmental Guidelines, all of which factors and will establish incentive
during implementation of the Alatona shall be subject to MCC approval; structures for better on-farm water
Irrigation Project. The expected results provided, however, that such EA, EMP efficiency.
from, and the key benchmarks to and RAP may be processed as part of the (c) Land Allocation (the ‘‘Land
measure progress on, the Alatona EIA, EMP, and RAP for all other Project Activity’’).
Irrigation Project, as well as the Project Activities (as described in Section 2 Through the sale of irrigated land
Activities undertaken or funded above). MCC funding will support under the oversight of a selection
thereunder, are set forth in Annex III. implementation of the environmental commission, land will be allocated to
Estimated amounts of MCC Funding and social mitigation measures as small-, medium-, and large-scale
for each Project Activity for the Alatona identified in the EA (or EIA, as farmers. A selection commission will
Irrigation Project are identified in applicable), EMP, and RAP, satisfactory select land recipients according to pre-
Annex II. Conditions precedent to each to MCC, according to the conditions defined criteria, and enforce safeguards
Project Activity under the Alatona precedent set forth in the Disbursement designed to ensure transparency and
Irrigation Project, and the sequencing of Agreement. fairness. The recipients will purchase
such Project Activities, shall be set forth (b) Irrigation Planning and the land at prices that are both
in the Disbursement Agreement, any Infrastructure (the ‘‘Irrigation Activity’’). affordable to farm families, yet high
other Supplemental Agreements and the This Project Activity will increase the enough to discourage speculation. Land
relevant Implementation Documents. capacity of the ON’s main conveyance payments will be managed by private
The following summarizes each Project structures (the Canal Adducteur, the financial institutions, and land
Activity under the Alatona Irrigation Canal du Sahel and the Fala de Molodo) registration capacity will be bolstered.
Project: to ensure sufficient capacity to transport MCC Funding will support education
(a) Niono-Goma Coura Road (the wet season water to all the developed and dissemination of information about
‘‘Road Activity’’). perimeters. MCC Funding will support land rights, benefits and
The Road Activity involves the the ON in achieving physical capacity to responsibilities, and the allocation
upgrading of a key segment of the realize its immediate development process in order to execute land
national highway network serving the goals, improve and increase service, and allocation in an effective manner and for
Alatona zone, providing vital access to to move toward a next generation of long term land management. In
inputs, markets, and social services to standards and operational water addition, the Alatona Irrigation Project
the Alatona zone and other farmers in management procedures, based on best will establish year-round market
the northern sector. The Niono-Goma international practice. Specifically, gardens for growing vegetables, to
Coura road forms the first 81 km of a MCC Funding will support the provide the women of the Alatona zone
450 km road from Niono to Tonka, following: with an independent source of family
recently reclassified as National Road (i) Alatona irrigation system income. This market garden opportunity
33. It is presently an earth road with development, which will involve the supplements the opportunity women
laterite surface and varying width of 6– construction of a primary canal off the will have to receive larger land parcels
7 meters, which has been compromised main system, a 63 km distributor canal, though the selection commission
by erosion of the embankment slopes. a network of secondary and tertiary process. Specifically, MCC Funding will
The laterite is worn away in numerous canals and drainage structures, as well support the following:
locations, leading to washouts and as land leveling and internal access (i) Land Parcel Creation. Land will be
difficult driving conditions during the roads. This will allow for an additional divided into tertiary irrigation blocks,
wet season. Specifically, MCC Funding 16,000 ha of irrigated lands in the and the land contained therein will be
will support the following: Alatona zone. subdivided into individual land parcels.
(i) Double bitumen surface treatment (ii) Main conveyance system This sub-activity will include land
paving of 81 km of National Road 33 (7 expansion, which will increase the parcel platting, boundary surveying, and
meter carriageway and 1.5 meter conveyance capacity of two main canals preparation of a technical description of
shoulders). and an ancient riverbed that transport each parcel.
(ii) Construction of a small bridge and water from the Niger River to the ON (ii) Land Rights Education. A land-
2 km spur to the village of Dogofry to irrigated zones. This will involve: (1) education effort will be carried out to
provide a direct access from the Alatona Removal of the central island separating provide the rural population of the
perimeter to the main road network. the two branches of Canal Adducteur; Alatona zone and nearby areas with an
(iii) Various social measures, such as (2) enlarging the main canal leading understanding of private land
parallel tracks to accommodate non- from the main conveyance canal (Canal ownership, the rights and
motorized traffic, of which there is a du Sahel—23 km); and (3) raising the responsibilities it entails, and the
significant amount in and around the banks of the Fala de Molodo along benefits it can bring. The effort also will
populated areas and safety measures for approximately 8 km. inform people about the opportunity to
slowing traffic, as well as additional (iii) Support to ON Water acquire newly developed irrigated land,
parking areas at the villages. Management, which will provide and work with land recipients on how
to properly manage their land rights and services, primarily health staff and irrigation infrastructure are designed
obligations. teachers, to ensure appropriate and constructed (the pre-settlement
(iii) Registration System Upgrade. The utilization of the social infrastructure. phase), efforts will focus on building an
Alatona Irrigation Project will support Specifically, MCC Funding will institutional environment and testing
establishment of a temporary land support the following: agricultural, marketing, and water
registration office in the Alatona zone (i) Resettlement. This sub-activity will management practices focused on
that will remain under the jurisdiction support implementation of the RAP achieving farm profitability. The Project
of the Sogou office of the National previously developed in collaboration Activity will be conducted in pre-
Directorate for State Property and with the relevant Government agencies, existing ON irrigated perimeters
Cadastre (a technical agency within the to compensate approximately 800 involving, to the extent feasible,
Ministry of State Property and Land). families who lose land rights or access collaboration with the ON, existing
This temporary office will operate for to resources, with land in the irrigated institutions, and entities. The pre-
the four-year period during which perimeter or, where the land option is settlement phase will allow for the
virtually all of the land will be allocated refused, other compensation options. development, testing, and piloting of
and titled. Once the initial wave of Physically relocated resettlers will be activities to be transferred and scaled up
titling occurs, the Sogou office may provided with construction materials or to the newly developed perimeter.
choose to maintain the temporary office, built houses. For reasons of social Specifically, MCC Funding will support
or replace it with a more limited equity, this sub-activity will implement the following:
alternative depending upon demand procedures to provide equitable access (i) Applied Agricultural Research.
and cost considerations. to both dry and rainy season water and This sub-activity includes undertaking
(iv) Land Parcel Allocation and additional supporting measures during field-level, applied technology research
Titling. A selection commission the first year of farming to assist these on rice production and processing;
consisting of government officials and agro-pastoralist families to take up water use, control and management;
private stakeholder group irrigated rice cultivation successfully. agronomic practices; livestock
representatives (both men and women), (ii) Social Infrastructure. This sub- enterprises and integration with
will review people’s applications for activity will provide social irrigation; improved equipment and
land and decide who will receive land infrastructure and social services technologies; commodity chains
based on pre-defined criteria. The sufficient to serve an anticipated total development, including strengthening
criteria include various technical and population of approximately 60,000, the supply system for agricultural
other qualifications, are differentiated including the resettlers, new settlers and inputs and equipment; identifying,
by farm size, and give special other migrants. Access roads, potable testing, and promoting improved
consideration to people already in the water, sanitation, schools, health conservation techniques; processing
Alatona zone,1 women, and young centers, public markets, warehouses, technologies, and improving marketing
farmers. After a short waiting period, literacy and youth centers, laundry of crops; and natural resource
land recipients will receive land facilities and solar electricity supply for management and wood supply.
ownership titles that they will pay for health centers and schools will be (ii) Extension and Farmer Training.
over a 15–20 year period. In addition to constructed or existing facilities This sub-activity will include
this main land allocation effort, women renovated in accordance with communication, extension, and training
in the Alatona zone will receive small international and national norms. through a variety of low-cost,
(iii) Social Services. This sub-activity sustainable mechanisms and techniques
land plots for use in market gardening.
(v) Management of Land Revenues. will support social services, primarily that may include Farmer Field Schools,
This sub-activity will assure that land health staff and teachers, over the last Training and Visit, farmer-to-farmer,
revenues are transparently managed and three-year period of the Compact Term. stakeholder, and systems approaches.
not co-mingled with other accounts and Services will be provided according to The focus of this sub-activity will
reinvested in locally responsive and population thresholds established by include improving rice yields,
appropriate ways in the Project area. the Government on the basis of production of dry season diversified
This sub-activity will create a new international and regional norms. This crops, integrating crop and livestock
entity (the ‘‘Revenue Authority’’) to sub-activity will equip community production, improving water
collect and manage the land purchase health centers in the Alatona zone and management, group promotion and
payments under Government oversight. health centers serving the larger area, as formation, integrated pest management,
Collection payment mechanisms will well as support a variety of health organizational management, accounting
encourage the entry and participation of promotion and disease prevention and budgeting, and farmer rights and
activities related to obstetric care, advocacy.
private financial institutions in the area.
nutrition, STIs, HIV/AIDs, malaria, (iii) Support to Farmer Organizations.
In cases when land owners fail to make
schistosomiasis and intestinal worms. This sub-activity will provide intensive
the required payments, the Revenue organizational development and
Authority will manage resolution of the Limited support will be provided for
maintenance of water supply and management training to help selected
problem, up to and including executing service providers and farmer-controlled
a foreclosure action and public sale of sanitation.
(e) Agricultural Services (the organizations (including women’s
the land to satisfy the debt. groups) increase capacity. This may
(d) Resettlement, Social ‘‘Agriculture Activity’’).
The Agriculture Activity will focus on include training on the preparation of
Infrastructure, Social Services (the
the basics of irrigated farming and will by-laws and business plans; election of
‘‘Community Activity’’).
support a range of interventions that officers, personnel and group
The Community Activity will provide
target capacity building, support, and management; management by
funds to implement the RAP, build

techniques for rice, shallots, livestock objectives; financial sustainability and
social infrastructure and support social
and crop integration, and women’s credit management; knowledge of rights,
1 Those who currntly reside or use land in the vegetable garden production. During the facilitation and advocacy; group
Alatona zone will automatically be eligible to first two years of the Alatona Irrigation procurement of inputs and marketing;
receive land. Project, while the road and core and accounting and financial
management capabilities and move rapidly into the Alatona zone, this ON agency to provide effective
commercialization. sub-activity will also assist with a operations and maintenance of the
(iv) Support to Water User portion of the costs of setting up and irrigation infrastructure, as well as
Associations. This sub-activity will staffing new offices. conformity with the established
provide training to WUAs on (iv) Direct support to farmers. In cropping calendar.
organization management, cropping addition to training and support to
patterns and water requirements, farmer organizations, the Alatona World Bank
secondary and tertiary canal Irrigation Project will provide financial The Alatona Irrigation Project
maintenance planning, and establishing assistance to improve access to credit complements and reinforces several
procedures for collecting and for first-time borrowers. This sub- ongoing or recently launched World
accounting for water fees. activity will provide a grant to assist Bank programs as described below.
(f) Financial Services (the ‘‘Finance new clients with paying a portion of the • National Project for Rural
Activity’’). initial mandatory deposit required by Infrastructure provides rural
The Finance Activity will support MFIs in order for the new clients to infrastructure for irrigation,
agricultural development in the Alatona access their first loan. transportation, clean water and
zone by promoting a sustainable, sanitation, and institutional
inclusive financial system and 3. Beneficiaries strengthening. In May 2005, this project
improving farmers’ access to credit. As a result of the incremental launched a bid for small- and medium-
Interventions will be focused on agricultural production achieved scale farmers to purchase land in the
encouraging local financial institutions through the Alatona Irrigation Project, pilot zone of Koumouna in the ON. This
to move into the Alatona zone and on incomes of farm owners, agricultural marked the ON’s first experience of
building their capacity and willingness laborers in the Alatona, suppliers, issuing land titles to individual farmers.
to meet the financial services needs transporters, processors, and traders • Agricultural Competitiveness and
emerging from activities supported by will increase. Diversification Project aims to expand
the Alatona Irrigation Project. The The upgrading of the existing Niono- production and improve the
Finance Activity will encourage Goma Coura road is anticipated to lower productivity of diversified, high value
financial institutions to lend to clients vehicle operating costs (‘‘VOCs’’) and to commodities and to increase their
that have good prospects of success but generate time savings for road users. It export and market competitiveness; to
may lack sufficient collateral or a is anticipated that the reduction in remove logistical bottlenecks to
suitable record of transactions to prove VOCs will be passed on to populations increased exportation; to reinforce food
creditworthiness. It will also provide located along the road in the form of security; and to promote rural credit and
support to the ON Credit Bureau to reduced rates of cargo spoilage and financing.
strengthen its capacity to increase lower charges for the transport of cargo • Rural Community Development
transparency among MFIs in the region. goods, including the transport of Project enhances the capacity of
Direct support will also be provided to agricultural produce from the Alatona communities to propose and manage
farmers to improve access to credit for zone to regional markets in Niono and local development initiatives, including
first-time borrowers. Specifically, MCC potentially national markets in Bamako. Communal Initiatives Funds and Local
Funding will support the following: Finally, the Alatona Irrigation Project Productive Initiatives Funds.
(i) Credit risk sharing program. The is also expected to generate non-
Private Sector and Civil Society
credit risk sharing program will quantified social, health, and education
encourage eligible financial institutions improvements through investment in Private sector and civil society
to increase their lending to clients by social infrastructure in the Alatona zone participated in the consultative process
reducing the risk of providing loans in and greater access through the Niono- that resulted in inclusion of the Alatona
the Alatona zone. MCC Funding will Goma Coura road upgrade to existing Irrigation Project in the Compact. The
support risk sharing (up to 50%). health and social services facilities. Alatona Irrigation Project aims to attract
Participating financial institutions will farmers to purchase land and increase
4. Donor Coordination; Role of Private the revenue of farmers and farming
also be provided with technical
Sector and Civil Society enterprises. Businesses along the value
assistance.
(ii) Credit bureau strengthening. This The Dutch Development Agency, chain will be integral to the success of
sub-activity will finance: (1) A study to French Development Agency, the World this Project. In addition, civil society
identify recommended improvements to Bank, and USAID, in particular, have will play an active role to ensure that
the ON Credit Bureau and to test their been working in the ON over the past land allocation is fair and transparent
feasibility; (2) development and several decades resulting in a more and that social services are provided in
acquisition of hardware and software efficient, decentralized management the Alatona zone in a fair and equitable
necessary to create an electronic structure, while increasing production manner. Lastly, both civil society and
database (pending satisfactory and productivity of the Alatona zone. private sector will be represented on the
completion of the feasibility study); and The Alatona Irrigation Project leverages MCA-Mali Board of Directors and
(3) training for ON Credit Bureau staff, and complements other donor, private Advisory Councils. In addition,
among other changes as identified in the sector and civil society activities in Mali consultations will be conducted with
needs assessment and feasibility study. as described below. Throughout affected parties and other stakeholders
(iii) Financial institution capacity implementation, MCC will continue to on the EIA for all Project Activities
building. This sub-activity will provide collaborate with these donors to ensure (other than the Road Activity) and the
training and technical assistance to equitable water distribution, transfer of EA (or EIA, as applicable) for the Road
financial institutions (banks and MFIs), skills and knowledge in agriculture Activity, in accordance with MCC
focusing on areas such as risk analysis, production, farm management and Environmental Guidelines, Mali Decrét
portfolio management, and new product access to credit for the farmers. The No. 03–594–P–RM on environmental
development in order to help financial Alatona Irrigation Project will involve impact studies and the draft Arrête
institutions meet the needs of potential close coordination with donors involved Interministeriel on the procedure for
clients. In order to encourage MFIs to in strengthening the management of the public consultation on environmental
impact studies. Consultations will also the operating and maintenance costs of Revenue Authority can support itself
take place with project affected persons the major distribution systems within through the land revenues collected.
for the RAPs, consistent with World the zones, with the Government • Sustainable Agricultural Services.
Bank Operational Policy 4.12 on assuming responsibility for the Skilled local institutions with proven
Involuntary Resettlement. NGOs are also remaining costs. The Alatona Irrigation capacity will be contracted to deliver
expected to play a role in Project will address the utilization of services, and design and coordinate
implementation, particularly in the revenues associated with land sales and research activities. It will include on-
provision of health promotion activities. water fees within the Alatona zone to station evaluation of varieties and/or
fund the ongoing expenses of Alatona technologies under development; on-
5. USAID farm confirmation and adaptation of
institutions during and beyond the
The Alatona Irrigation Project builds Compact Term. existing research results; and
on the USAID’s Accelerated Economic • Sustainable Road Maintenance. A participatory, farmer-led research.
Growth and Trade Development Project new road maintenance agency, Eventually, involvement of farmers,
(2003–2012), which includes the AGEROUTE, has recently been farmer organizations, and a possible fee-
following sub-projects: established with donor support. The for-service approach could make the
• Program in Development of major donors to the road sector (World research demand-driven and partly
Agricultural Production (PRODEPAM) Bank, European Union and African funded by users.
includes agricultural intensification
Development Bank) are promoting long • Environmental and Social
activities, appropriate technologies, Sustainability. Sustainability is to be
term solutions to road maintenance,
animal feed, and natural resource achieved through the implementation of
including more reliance on user fees to
management activities. a land use and natural resources
• Program on Shared Governance finance maintenance. The upgrading of
the road to a double bituminous surface management plan (a prerequisite
includes capacity building, planning, planning tool for the EIA), the
and financial management in the will result in estimated annual
maintenance requirements falling identification of institutions responsible
communes of Diabaly and Dogofry (the for natural resources management over
two municipalities located in the within the range of the Government’s
current maintenance allocations for the the long term, and the implementation
Alatona zone). of an EMP that will incorporate an HIV/
The Alatona Irrigation Project will road.
AIDS awareness plan and a pest
continue to build on these efforts during • Sustainable Rural Infrastructure
management plan. Pre-settlement
implementation and strengthen USAID Management. The Alatona Irrigation
activities will provide the opportunity
best practices in agricultural support Project will finance initial recurrent
to test the sustainability of practices to
and capacity building in local costs of the social infrastructure so as to
be applied in the Alatona zone.
governance within the Alatona zone. ‘‘kick-start’’ operations. Within the
Resettlers will be eligible to receive
context of the country’s decentralization
6. Sustainability agricultural inputs for the first year and
program, the planning and
all cultivators will be able to receive
• Sustainable Irrigation Management. implementation of these infrastructure
technical assistance in farming
To assure the long term success of the and services will be carried out in close
techniques and training to improve their
Alatona Irrigation Project, MCC will collaboration with the appropriate
ability to secure credit. The provision of
finance additional capacity on the main technical ministries and local
social infrastructure will allow
conveyance structures, as well as authorities (in particular the
improvements in health care, education,
support the ON to achieve sustainable communes), so as to ensure a smooth
potable water supply and sanitation and
management of its entire stock of assets. transition to sustainable provision of
the funding of social services will
A core element of this effort will be staffing, operations, and maintenance of
provide for a transition to full
technical assistance to introduce a all these facilities beyond the life of the
government funding of these services
communications-based technology for Compact.
after the Compact Term.
real-time water monitoring and • Sustainable Access to Financial
management on the main system. The Services. The Finance Activity will 7. Policy; Legal; and Regulatory Reform
Alatona Irrigation Project will provide MFIs and banks with training in The Parties have identified the
collaborate with the ON to establish agricultural credit and other aspects of following policy, legal and regulatory
appropriate and equitable water managing the delivery of financial reforms and actions that the
allocation rules among the perimeters, services to the inhabitants of the Government shall pursue in support,
optimum cropping calendars and Alatona zone. This training should and to reach the full benefits of the
practices (such as the adoption of short enable the financial institutions to better Alatona Irrigation Project, the
cycle varieties) and the gradual analyze the risks of extending credit in satisfactory implementation of which
introduction of volumetric water the Alatona zone and to better monitor will be conditions precedent to certain
charges, all aimed to make the most and manage the repayment process. MCC Disbursements as provided in the
efficient use of scarce water during the Meanwhile, the support to the ON Disbursement Agreement:
critical months of the dry season. The Credit Bureau will promote • The establishment of the Revenue
MCC-financed technical assistance will transparency in the sector and provide Authority to manage the collection and
assist the ON to develop revised institutions with better data from which use of land revenues generated through
expansion scenarios based on updated to evaluate loan applications. the Alatona Irrigation Project. The
assumptions and practices, such that • Sustainable Management of Land structure of the Revenue Authority and
any further expansion does not Revenues. The Land Activity will create its operating guidelines will be subject
jeopardize the minimum water a new entity—the Revenue Authority— to MCC approval.
requirements and functioning of the to collect and manage the revenues • Within the Compact Term, and in
Alatona zone and other existing generated through land payments. MCC any event no later than six to nine
perimeters. In the existing ON irrigated funding will support the costs of months prior to the end of the Compact
perimeters, the water fees collected are structuring this entity and providing Term, the identification of a fiduciary or
adequate to cover approximately 90% of some initial capacity building, until the liquidation agent to manage or liquidate
all of the remaining financial assets at Financial Plan that includes, in addition 4. Modifications
the end of the Compact Term. The to the multi-year summary of estimated
The Parties recognize that the
selection of the fiduciary or liquidation MCC Funding and the Government’s
anticipated distribution of MCC
agent and the final plan for the contribution of funds and resources, an
Funding between and among the
disposition of financial assets from the estimated draw-down rate for the first
various activities for Program
credit risk sharing program in the year of the Compact Term based on the
administration, M&E, the Projects and
Finance Activity will be subject to MCC achievement of performance milestones,
the Project Activities will likely require
approval. as appropriate, and the satisfaction or
adjustment from time to time during the
• The execution of a memorandum of waiver of conditions precedent. Each
Compact Term. In order to preserve
understanding between MCA-Mali and year, at least 30 days prior to the
flexibility in the administration of the
the ON that ensures equitable allocation anniversary of the Entry into Force, the
Program, as provided in Section 4(a)(iv)
of dry-season water among the ON Parties shall mutually agree in writing
of Annex I, the Parties may, upon
zones, measured at the headworks of to a Detailed Budget for the upcoming
agreement of the Parties in writing and
primary canals, prior to initial MCC year of the Program, which shall include
without amending the Compact, change
Disbursement for the Project Activities a more detailed budget for such year,
the designations and allocations of
within the Alatona Irrigation Project, taking into account the status of the
funds among the Projects, the Project
other than the Road Activity. Program at such time and making any
• The provision of evidence by the Activities, or any activity under
necessary adjustments to the Multi-Year
Government of an agreed allocation of Program administration or M&E, or
Financial Plan.
land for dry season and wet season between a Project identified as of the
cultivation in the Alatona zone prior to 2. Implementation and Oversight Entry into Force and a new project,
approval of final design of the first without amending this Compact;
The Multi-Year Financial Plan and provided, however, that such
tranche of the irrigation and planning each Detailed Budget shall be
infrastructure sub-activity of the reallocation (a) is consistent with the
implemented by MCA-Mali, consistent Objectives and the Implementation
Alatona Irrigation Project. with the approval and oversight rights Documents; (b) shall not materially
8. Proposals of MCC and the Government as adversely impact the applicable Project,
provided in this Compact, the Project Activity (or any component
Public solicitations for proposals are
Governing Documents and the thereof), or any activity under Program
anticipated to procure goods, works and
Disbursement Agreement. administration or M&E as specified in
services, as appropriate, to implement
all Project Activities under the Alatona 3. Estimated Contributions of the Parties this Annex II; (c) shall not cause the
Irrigation Project. MCA-Mali will amount of MCC Funding to exceed the
develop, subject to MCC approval, a The Multi-Year Financial Plan aggregate amount specified in Section
process for consideration of all such Summary identifies the estimated 2.1(a) of this Compact; and (d) shall not
proposals. Notwithstanding the annual contribution of MCC Funding for cause the Government’s obligations or
foregoing, MCA-Mali may also consider, Program administration, M&E and each responsibilities or overall contribution
using a process developed subject to Project. The Government’s contribution of resources to be less than specified in
MCC approval, any unsolicited of resources to Program administration, Section 2.2(a) of this Compact, this
proposals it might receive. M&E and each Project shall consist of (a) Annex II or elsewhere in the Compact.
‘‘in-kind’’ contributions in the form of
Annex II—Summary of Multi-Year 5. Conditions Precedent; Sequencing
Government Responsibilities and any
Financial Plan other obligations and responsibilities of MCC Funding will be disbursed in
This Annex II to the Compact (the the Government identified in this tranches. The obligation of MCC to
‘‘Financial Plan Annex’’) summarizes Compact, and (b) such other approve MCC Disbursements and
the Multi-Year Financial Plan for the contributions or amounts as may be Material Re-Disbursements for the
Program. Each capitalized term in this identified in this Compact (including Program is subject to satisfactory
Financial Plan Annex shall have the adequate funding for the rehabilitation progress in achieving the Objectives and
same meaning given such term and expansion of air cargo facilities, as on the fulfillment or waiver of any
elsewhere in this Compact. Unless specified in Section 8 of Schedule 1 of conditions precedent specified in the
otherwise expressly stated, each Section Annex I) and in relevant Supplemental Disbursement Agreement for the
reference herein is to the relevant Agreements between the Parties or as relevant activity under the Program. The
Section of the main body of the may otherwise be agreed by the Parties; sequencing of Project Activities or sub-
Compact. provided, in no event shall the activities and other aspects of how the
Government’s contribution of resources Parties intend the Program to be
1. General be less than the amount, level, type and implemented will be set forth in the
A multi-year financial plan summary quality of resources required effectively Implementation Documents, including
(‘‘Multi-Year Financial Plan Summary’’) to carry out the Government the Work Plan for the applicable
is attached hereto as Exhibit A. By such Responsibilities or any other Program (and each component thereof),
time as specified in the Disbursement responsibilities or obligations of the and MCC Disbursements and Re-
Agreement, MCA-Mali will adopt, Government under or in furtherance of Disbursements will be made consistent
subject to MCC approval, a Multi-Year this Compact. with such sequencing.
Annex III—Description of The M&E Project Activity set forth in this M&E 2. Monitoring Component
Plan Annex (the ‘‘Outcomes’’) will be To monitor progress toward the
This Annex III to the Compact (the monitored (the ‘‘Monitoring achievement of the Compact Goal,
‘‘M&E Annex’’) generally describes the Component’’); (b) a methodology, Objectives, and Outcomes, the
components of the M&E Plan for the process and timeline for the evaluation Monitoring Component of the M&E Plan
Program. Except as defined in this M&E of planned, ongoing, or completed shall identify (a) the Indicators, (b) the
Annex, each capitalized term in this Projects and Project Activities to party or parties responsible, the
M&E Annex shall have the same determine their efficiency, effectiveness, timeline, and the instrument for
meaning given such term elsewhere in impact and sustainability (the collecting data and reporting on each
this Compact. ‘‘Evaluation Component’’); and (c) other Indicator to MCA-Mali, and (c) the
components of the M&E Plan described method by which the reported data will
1. Overview
below. Information regarding the be validated.
MCC and the Government (or a Program’s performance, including the (a) Indicators. The M&E Plan shall
mutually acceptable Government M&E Plan, and any amendments or measure the impacts of the Program
Affiliate or Permitted Designee) shall modifications thereto, as well as using objective and reliable information
formulate, agree to and the Government (‘‘Indicators’’). Each Indicator will have
periodically generated reports, will be

shall implement, or cause to be made publicly available on the MCA- one or more expected values that
implemented, an M&E Plan that Mali Web site and elsewhere. specify the expected results and
specifies (a) how progress toward the expected time for the impacts to be
Compact Goal, Objectives, and the achieved (‘‘Target’’). The M&E Plan will
EN30NO06.001</GPH>
intermediate results of each Project and measure and report on Indicators at four
levels. First, the Indicator(s) at the (collectively, the ‘‘Beneficiaries’’). Plan to measure the direct outputs of
Compact Goal level (‘‘Goal Indicator’’) Third, Indicators at the intermediate Project Activities. All Indicators will be
will measure the impact of the overall level (‘‘Outcome Indicator’’) will disaggregated by sex, income level and
Program and each Project. Second, the measure the results achieved under each age, to the extent practicable. Subject to
Indicators at the Objective level of the Project Activities and will prior written approval from MCC, MCA-
(‘‘Objective Indicator’’) will measure the provide an early measure of the likely Mali may add Indicators or modify the
final results of each of the Projects, impact under each of the Projects. A Targets of existing Indicators.
including impacts on the intended fourth level of Indicators (‘‘Output
beneficiaries identified in Annex I Indicator’’) will be included in the M&E
GOAL INDICATORS AND DEFINITIONS

Goal-level results Indicator Definition of Indicator
Income of Airport services firms is increased ... Total revenue of firms servicing the Airport ..... Total receipts of commercial concessions,
flight kitchens, fuel suppliers, and baggage
handling (US$).
Tourism income is increased ............................. Total receipts of hotels and restaurants in Total receipts of hotels and restaurants in
Bamako. Bamako (US$).
Industrial value added is increased ................... Gross value-added of firms in the Industrial Total earnings including salaries and taxes of
Park. firms located in the Industrial Park (US$).
Poverty rate of existing Alatona zone popu- Poverty rate of existing Alatona zone popu- Poverty Headcount Ratio of existing Alatona
lation is reduced. lation. zone population (percent).
Income from irrigated agricultural production in Real income from irrigated agricultural produc- Real annual income from sale of agricultural
the Alatona zone is increased. tion. production per household member in the
Alatona zone (US$)1.
1 Data to be disaggregated by current residents and newly settled population to track whether resettled population’s incomes are restored as
compared to their baseline incomes. This indicator will also be disaggregated by sex.
COMPACT GOAL BASELINES AND TARGETS

Goal-level Indicators Baseline Year 5 Year 10
Total revenue of firms servicing the Airport (million US$) .................................................................. $8 $9 $11
Total receipts of hotels and restaurants in Bamako (million US$) ..................................................... 133 174 226
Gross value-added of firms in the Industrial Park (million US$) ........................................................ 0 33 106
Poverty rate of existing Alatona zone population (percent) ............................................................... TBD1 TBD TBD
Real income from irrigated agricultural production (US$ per capita) ................................................. 0 316 725
1 Baseline and targets will be determined through a combination of the following data collection activities: (1) resettlement action plan census
under the Community Activity of the Alatona Irrigation Project, and (2) Baseline household survey conducted by Direction Nationale de la
Statistique et de l’Informatique. Results are expected in 2007.
AIRPORT IMPROVEMENT PROJECT INDICATORS AND DEFINITIONS

Objective-level results Indicator Definition of indicator
Number of foreign visitors is increased .............. Annual foreign (non-resident) passenger traf- Foreign and non-resident passengers arriving
fic. to and departing from the Airport per year 1
(number).
Passenger terminal services are improved ........ Improved security and safety ........................... FAA audit report 2
Outcome-level Results ....................................... Indicator ........................................................... Definition of Indicator.
Air traffic is increased ......................................... Weekly flight arrivals and departures .............. Aircraft arriving to or departing from the Air-
port per week (number).
Increased efficiency of passenger terminal serv- Time required for passenger processing at Average time for passengers to complete de-
ices. departures and arrivals. parture or arrival procedures at peak hour
at the Airport (minutes).
1 Indicator
will be disaggregated by country of origin, purpose of travel, and sex.
2A qualitative Indicator will be developed in collaboration with airport sector experts and according to FAA standards. Yearly targets will be
milestones.
AIRPORT IMPROVEMENT PROJECT INDICATORS AND TARGETS

Objective-level indicators Baseline Year 5 Year 10
Annual foreign (non-resident) passenger traffic (number) .................................................................. 126,300 164,780 214,000
Improved security and safety at the Airport ....................................................................................... TBD TBD TBD
Outcome-level Indicators ....................................................................................................................
Weekly flight arrivals and departures (number) ................................................................................. 87 97 106
AIRPORT IMPROVEMENT PROJECT INDICATORS AND TARGETS—Continued

Time required for passenger processing at departures and arrivals (minutes) 1 ............................... TBD Baseline Baseline
minus 60 minus 60
minutes minutes 2
1 A special survey will be conducted at the Airport in 2006/2007 to collect baseline information and additional surveys will be conducted during
the Project to estimate the time required for passenger processing.
2 From the economic analysis, it is estimated an efficiency gain of one hour will be achieved by Year 5 and maintained thereafter.
INDUSTRIAL PARK PROJECT INDICATORS AND DEFINITIONS

Industrial output of the Industrial Park is in- Share of enterprise growth represented by the Enterprises located in the Industrial Park as a
creased. Industrial Park. share of the total number of enterprises in
Bamako (percent).
Industrial Park firms are financially stable ......... Long-term jobs created in the Industrial Park Long-term jobs in firms located in the Indus-
trial Park (number).1
Outcome-level Results:
The Industrial Park is developed and oper- Occupancy level ............................................... Tertiary infrastructure built in the Industrial
ational. Park (ha).2
Access to industrial infrastructure is provided ... Time required to access services .................... Time required for connection to water and
electricity in the Industrial Park (days).
1 This does not include temporary jobs created during construction. This indicator will be disaggregated by sex and skill level.
2 Tertiary (on-lot) infrastructure, to be built and financed by industries locating in the Industrial Park, includes buildings and
facilities, interior
roads and parking, water supply taps/connections and fire protection, electrical and telecommunications, wastewater collection (and possibly pre-
treatment), etc.
INDUSTRIAL PARK PROJECT INDICATORS AND TARGETS

Share of enterprise growth represented by the Industrial Park (percent) ......................................... 0 22% 49%
Long-term jobs created in the Industrial Park (number, cumulative) ................................................. 0 3,400 11,000
Outcome-level Indicators:
Occupancy level (ha, cumulative) ...................................................................................................... 0 15 54
Time required to access services (days) 1 ......................................................................................... TBD TBD
1 Baseline value will be the average time required for a new industrial firm to access water and electricity in Bamako in 2006. This information
will be obtained from Énergie Du Mali. Targets will be set after consultations with industry experts.
ALATONA IRRIGATION PROJECT INDICATORS AND DEFINITIONS

Rice yields are increased ................................... Main season rice yield ..................................... Average rice yield in the rainy season in the
Alatona zone (tons/ha).
Diversification into high value crops is in- Dry season cropped area in non-cereal crops Share of the total cropped area that is de-
creased. voted to non-cereal crops (i.e., shallots, to-
matoes, potatoes, etc) in the Alatona zone
(percent).
Outcome-level Results:
Vehicle Operating Costs (VOCs) are reduced ... International Roughness Index (IRI) for the Weighted index to measure road roughness
Niono-Goma Coura road. (correlated with vehicle operating costs)
(meters/km).1
Transport of people and goods is facilitated ...... Traffic on the Niono-Goma Coura road ........... Annual average daily count of vehicles on the
Niono-Goma Coura road (AADT) 2 (number/
day).
Irrigable land is increased .................................. Land made irrigable by the Project ................. Total irrigable land in the Alatona zone (ha).
Water for agricultural production is provided ..... Average water volume delivered at the farm Average water volume delivered at the tertiary
level. level during the rainy season in the Alatona
zone (m3/ha).
Irrigation system efficiency is improved ............. Alatona zone irrigation system efficiency ........ Water supply at the headworks of Canal de
l’Alatona as a share of crop water require-
ments (percent).
Family farms are established ............................. 5 and 10 ha farms allocated ............................ Total 5 and 10 ha farm plots allocated in the
Alatona zone (number).
Land allocated to women is increased ............... Market garden parcels allocated ..................... Total market garden parcels allocated in the
Alatona zone (number).
Land tenure security is increased ...................... Titles granted to Alatona zone households ..... Titles registered in the land registration office
of the Alatona zone (number).3
Access to social infrastructure is provided ......... Student enrollment ........................................... Students enrolled in schools established by
the Project (number).
ALATONA IRRIGATION PROJECT INDICATORS AND DEFINITIONS—Continued

Improved agricultural techniques are adopted ... Adoption rate of extension techniques ............ Number of farms adopting at least one new
extension technique as a share of all farms
receiving technical assistance under the
Project (percent).
Access to financial services in the Alatona zone Amount of credit extended ............................... Total loan portfolios of financial institutions
is improved. (MFIs and banks) in the Alatona zone
(US$).4
Active clients of MFIs ....................................... Active clients of MFIs in the Alatona zone
(number).5
1 The International Roughness Index (IRI) is used to define a characteristic of the longitudinal profile of a traveled wheeltrack and constitutes
an internationally recognized, standardized roughness measurement. The IRI is an open-ended scale.
2 AADT: Annual Average Daily Traffic.
3 Disaggregated by settlers, re-settlers, sex.
4 Disaggregated by Short-Term (seasonal term) and Medium-Term credit (two to three-year term).
5 Disaggregated by sex.
ALATONA PROJECT INDICATORS AND TARGETS

Objective-level indicators Baseline Year 5
Main season rice yield (tons/ha) .................................................................................................................................. 0 5

Dry season cropped area in non-cereal crops (percent) ............................................................................................. 0 46
Outcome-level Indicators:
International Roughness Index (IRI) for the Niono-Goma Coura road (m/km) ........................................................... 17 2
Traffic on the Niono-Goma Coura road (number/day) ................................................................................................. 208 417
Land made irrigable by the Project (ha, cumulative) ................................................................................................... 0 16,000
Average water volume delivered at the farm level (m3/ha) ......................................................................................... N/A 13,000
Alatona zone irrigation system efficiency (percent) ..................................................................................................... 35 40
5 and 10 ha farms allocated (number, cumulative) ..................................................................................................... 0 1,700
Market garden parcels allocated (number, cumulative) ............................................................................................... 0 2,000
Titles granted to Alatona zone households (number, cumulative) .............................................................................. 0 1,200
Student enrollment (number, cumulative) .................................................................................................................... 0 10,500
Adoption rate of extension techniques (percent) ......................................................................................................... 0 50
Amount of credit extended (million US$) ..................................................................................................................... 0 4
Active clients of MFIs (number, cumulative) ................................................................................................................ 0 1,050
(b) Data Collection and Reporting. The objective of any data quality review will Beneficiaries. The Evaluation
M&E Plan shall establish guidelines for be to verify the quality and the Component shall contain two types of
data collection and a reporting consistency of performance data across reports: Final Evaluations and Ad Hoc
framework, including a schedule of different implementation units and Evaluations, and shall be finalized
Program reporting and responsible reporting institutions. Such data quality before any MCC Disbursement or Re-
parties. The Management shall conduct reviews also will serve to identify where Disbursement for specific Program
regular assessments of Program consistent levels of quality are not activities or Project Activities.
performance to inform MCA-Mali and possible, given the realities of data (a) Final Evaluation. MCA-Mali, in
MCC of progress under the Program and collection. The data quality reviewer connection with MCC’s request to the
to alert these parties to any problems. shall enter into an Auditor/Reviewer Government pursuant to Section 3(h) of
These assessments will report the actual Agreement with MCA-Mali in Annex I, shall engage an independent
results compared to the Targets on the accordance with Annex I. evaluator to conduct an evaluation at
Indicators referenced in the Monitoring the expiration or termination of the
3. Evaluation Component
Component, explain deviations between Compact Term (‘‘Final Evaluation’’).
these actual results and Targets, and in The Program shall be evaluated on the The Final Evaluation must at a
general, serve as a management tool for extent to which the interventions minimum (i) evaluate the efficiency and
implementation of the Program. With contribute to the Compact Goal. The effectiveness of the Program; (ii)
respect to any data or reports received Evaluation Component of the M&E Plan estimate, quantitatively and in a
by MCA-Mali, MCA-Mali shall promptly shall contain a methodology, process statistically valid way, the causal
deliver such reports to MCC along with and timeline for collecting and relationship between the three Projects
any other related documents, as analyzing data in order to assess and the Compact Goal (to the extent
specified in the M&E Plan or as may be planned, ongoing, or completed Project possible), the Objectives and Outcomes;
requested from time to time by MCC. Activities to determine their efficiency, (iii) determine if, and analyze the
(c) Data Quality Reviews. As effectiveness, impact and sustainability. reasons why, the Compact Goal,
determined in the M&E Plan or as The evaluations should use rigorous Objectives and Outcomes were or were
otherwise requested by MCC, the quality methods for addressing selection bias, not achieved; (iv) identify positive and
of the data gathered through the M&E as applicable. The Government shall negative unintended results of the
Plan shall be reviewed to ensure that implement, or cause to be implemented, Program; (v) provide lessons learned
data reported are as valid, reliable, and surveys to collect baseline and follow- that may be applied to similar projects;
timely as resources will allow. The up data on both Beneficiaries and non- (vi) assess the likelihood that results
will be sustained over time; and (vii) 4. Other Components of the M&E Plan Advisory Council at appropriate
any other guidance and direction that In addition to the Monitoring subsequent meetings of such Advisory
will be provided in the M&E Plan. To Component and the Evaluation Council. Each Advisory Council will
the extent engaged by MCA-Mali, such Component, the M&E Plan shall include have opportunity to present its
independent evaluator shall enter into the following components for the suggestions to the M&E Plan, which the
an Auditor/Reviewer Agreement with Program, Projects and Project Activities, Board shall take into consideration in its
MCA-Mali in accordance with Annex I. including, where appropriate, roles and review of any amendments to the M&E
(b) Ad Hoc Evaluations. Either MCC responsibilities of the relevant parties Plan during the Compact Term.
or MCA-Mali may request ad hoc or and Providers: (c) MCC Disbursement and Re-
(a) Costs. A detailed annual cost Disbursement for a Project Activity. As
interim evaluations or special studies of
estimate for all components of the M&E a condition to each MCC Disbursement
Projects, Project Activities, or the
Plan. or Re-Disbursement there shall be
Program as a whole prior to the (b) Assumptions and Risks. Any
expiration of the Compact Term (each, satisfactory progress on the M&E Plan
assumptions and risks external to the for the relevant Project or Project
an ‘‘Ad Hoc Evaluation’’). If MCA-Mali Program that underlie the
engages an evaluator for an Ad Hoc Activity, and substantial compliance
accomplishment of the Compact Goal,
Evaluation, the evaluator will be an with the M&E Plan, including any
Objectives, and Outcomes; provided,
externally contracted independent reporting requirements.
such assumptions and risks shall not
source selected by MCA-Mali, subject to excuse performance of the Parties, (d) Modifications. Notwithstanding
the prior written approval of MCC, unless otherwise expressly agreed to in anything to the contrary in the Compact,
following a tender in accordance with writing by the Parties. including the requirements of this M&E
the Procurement Guidelines, and Annex, MCC and the Government (or a
5. Implementation of the M&E Plan mutually acceptable Government
otherwise in accordance with any
relevant Implementation Letter or (a) Approval and Implementation. Affiliate or Permitted Designee) may
Supplemental Agreement. If MCA-Mali The approval and implementation of the modify or amend the M&E Plan or any
M&E Plan, as amended from time to component thereof, including those
requires an ad hoc independent
time, shall be in accordance with the elements described herein, without
evaluation or special study at the
Program Annex, this M&E Annex, the amending the Compact; provided, any
request of the Government for any Governing Documents, and any other
reason, including for the purpose of such modification or amendment of the
relevant Supplemental Agreement. M&E Plan has been approved by MCC
contesting an MCC determination with (b) Advisory Councils. The completed in writing and is otherwise consistent
respect to a Project or Project Activity or portions of the M&E Plan will be with the requirements of this Compact
seeking funding from other donors, no presented to each Advisory Council at and any relevant Supplemental
MCC Funding or MCA-Mali resources such Advisory Council’s initial meeting, Agreement between the Parties.
may be applied to such evaluation or and any amendments or modifications
special study without MCC’s prior thereto or any additional components of [FR Doc. E6–19696 Filed 11–29–06; 8:45 am]
written approval. the M&E Plan will be presented to each BILLING CODE 9210–01–P

Notice: Millennium Challenge Act: Mali Compact

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Notice: Millennium Challenge Act: Mali Compact

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Thursday,

November 30, 2006

MILLENNIUM CHALLENGE II. Program Industrial Park Project

However, Mali’s access is severely agriculture based and depend on rural

Compact proposal. Local NGOs, establishing API–Mali, a new

Compact, and (ii) reasonable through a valid Re-Disbursement or

funds to implement the RAP, build

periodically generated reports, will be

GOAL INDICATORS AND DEFINITIONS

COMPACT GOAL BASELINES AND TARGETS

AIRPORT IMPROVEMENT PROJECT INDICATORS AND DEFINITIONS

AIRPORT IMPROVEMENT PROJECT INDICATORS AND TARGETS

AIRPORT IMPROVEMENT PROJECT INDICATORS AND TARGETS—Continued

INDUSTRIAL PARK PROJECT INDICATORS AND DEFINITIONS

INDUSTRIAL PARK PROJECT INDICATORS AND TARGETS

ALATONA IRRIGATION PROJECT INDICATORS AND DEFINITIONS

ALATONA IRRIGATION PROJECT INDICATORS AND DEFINITIONS—Continued

ALATONA PROJECT INDICATORS AND TARGETS

Main season rice yield (tons/ha) .................................................................................................................................. 0 5

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