Notice: Millennium Challenge Act: Ghana Compact

Monday,
August 21, 2006
Part IV
Millennium
Challenge
Corporation
Notice of Entering Into a Compact With
the Government of the Republic of
Ghana; Notice
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48648 Federal Register / Vol. 71, No. 161 / Monday, August 21, 2006 / Notices
MILLENNIUM CHALLENGE are generally above 40 percent. In fact, to social service networks (including,
CORPORATION in the northern region and parts of the for instance, hospitals, clinics and
Afram Basin region, the incidence of schools).
[MCC FR 06–11]
poverty in the rural population is as
Transportation Project
Notice of Entering Into a Compact With high as 90 percent, with incomes below
the Government of the Republic of $2 a day. • Upgrades to Sections of N1
Ghana II. Program Highway: Reduce the bottleneck in
accessing the International Airport and
AGENCY: Millennium Challenge The program consists of three the Port of Tema and support an
Corporation. projects: (i) Agriculture Project; (ii) expansion of Ghana’s export-directed
ACTION: Notice. Transportation Project; and (iii) Rural horticulture base beyond current
Services Project. production, by upgrading of 14
SUMMARY: In accordance with section
Agriculture Project kilometers of the National Highway (N1
610(b)(2) of the Millennium Challenge
• Farmer and Enterprise Training in Highway) between Tema and Accra.
Act of 2003 (Pub. L. 108–199, Division
D), the Millennium Challenge Commercial Agriculture: Accelerate the • Improvements of Trunk Roads:
Corporation (MCC) is publishing a development of commercial skills and Facilitate the growth of agriculture and
summary and the complete text of the capacity among Farmer-Based access to social services by
Millennium Challenge Compact Organizations (FBOs) and their business rehabilitating or constructing up to 230
between the United States of America, partners, including entities adding value kilometers of trunk roads in the Afram
acting through the Millennium to agricultural crops such as processors Basin region.
Challenge Corporation, and the and marketers. • Improvements of Lake Volta Ferry
Government of the Republic of Ghana. • Irrigation Development: Establish a Services: Facilitate the growth of
Representatives of the United States limited number of retention ponds and agriculture in the Afram Basin region by
Government and the Government of the weirs requested by the FBOs and FBO improving the ferry service of Volta
Republic of Ghana executed the partnerships for whom access to water Lake Transport Company that connects
Compact documents on August 1, 2006. is critical to the success of their Adawso on the southern shore to Ekye
Dated: August 9, 2006.
businesses. Amanfrom on the northern shore.
• Land Tenure Facilitation: Improve
William G. Anderson Jr., Rural Services Project
tenure security for existing land users
Vice President & General Counsel (Acting). and facilitate access to land for higher • Strengthening of Public Sector
Summary of Millennium Challenge value agricultural crops in the Procurement Capacity: Support the
Compact With the Government of the Intervention Zones. development of procurement
Republic of Ghana • Improvement of Post Harvest professionals and reinforce the
Handling and Value Chain Services: capabilities of the Government of Ghana
I. Introduction Facilitate strategic investments by FBOs (GoG) to procure goods and services,
The five-year, approximately $547 and FBO partnerships in post-harvest reinforcing execution of the overall
million Millennium Challenge Compact infrastructure improvements and build program and, in particular, the
aims at reducing poverty by raising the capacity of the public sector to community services.
farmer incomes through private sector- introduce and monitor compliance with
• Support for Community Services:
led, agribusiness development. To this international plant protection standards.
• Improvement of Credit Services for Complement the Agriculture Project by
end, the program focuses on increasing
On-Farm and Value Chain Investments: funding construction and rehabilitation
the production and productivity of high-
Augment the supply of, and access to, of educational facilities, construction
value cash and food staple crops in
credit provided by financial institutions and rehabilitation of water and
certain areas of Ghana, and on
operating in the Intervention Zones, sanitation facilities and electrification of
enhancing the competitiveness of
providing seasonal credit to FBOs rural areas, and by providing capacity
Ghana’s export base in horticultural and
through commercial and rural banks, as building support to local government
other traditional crops.
Agriculture is the backbone of well as through non-traditional institutions.
Ghana’s economy; it accounts for channels such as input suppliers, and • Strengthening of Rural Financial
approximately 40 percent of the medium-term credit through banks to Services: Automate and interconnect
country’s gross domestic product, finance capital goods such as irrigation 121 rural banks that are private,
directly employs approximately 60–70 and post-harvest processing and storage community-owned banks, and provide
percent of the labor force, and generates facilities. other improvements in the national
more than 55 percent of foreign • Rehabilitation of Feeder Roads: payments systems that will draw a large
exchange earnings. Rehabilitate up to 950 kilometers of number of people currently not served
The program will operate in 23 feeder roads in eight districts in the or under-served into the financial
districts in the northern region, the Intervention Zones to reduce system.
central Afram Basin region and the transportation costs and time, to The table below outlines the
southern horticultural belt in the increase access to major domestic and estimated MCC contribution to the
southeastern region (each region, an international markets, and to facilitate program by year and category over the
Intervention Zone), where poverty rates transportation linkages from rural areas term of the Compact.
[US $ MILLION]
Description Year 1 Year 2 Year 3 Year 4 Year 5 Total
Agriculture Project .................................................................................... 32.6 47.1 70.3 65.1 25.9 241.0

Transportation Project .............................................................................. 14.8 20.1 35.4 43.1 29.7 143.1
Rural Services Project ............................................................................. 15.6 21.1 30.5 34.1 ................ 101.3
Federal Register / Vol. 71, No. 161 / Monday, August 21, 2006 / Notices 48649
[US $ MILLION]—Continued
Description Year 1 Year 2 Year 3 Year 4 Year 5 Total
Administration of Program & Audits ........................................................ 8.8 8.8 10.0 10.3 8.7 46.6
Monitoring & Evaluation of Program ........................................................ 3.0 3.0 3.0 3.0 3.0 15.0
Total .................................................................................................. 74.8 100.1 149.2 155.6 67.3 547.0
III. Impacts Upwards of 500,000 people in the MiDA and will be supported by key
Under the Agriculture Project, surrounding area of Accra, including officers in the areas of operations,
approximately 51,000 farm households consumers and agricultural export agriculture, infrastructure, financial
are expected to complete a producers and other users of the services, land, and administration.
comprehensive program in agronomic, highway in the Greater Accra MiDA will remain accountable for the
organizational and business skills Metropolitan Area, would benefit from successful execution of the program
training as members of FBOs. These the improved operation of the N1 while working through project
households with five members on Highway. Rehabilitation and upgrading implementers, whose interaction will be
average comprise over 250,000 people. of trunk roads and expansion of the facilitated by a fiscal and procurement
Less directly, the improvement of the ferry service in the Afram Basin region agent. As an organ of the GoG, MiDA
GoG’s Ministry of Food and are expected to benefit up to 100,000 will be subject to GoG audit
Agriculture’s extension services and the farm households, most of which are requirements alongside those audit
agents’ work with FBOs will have among the rural poor. requirements of MCC under the
collateral spillover benefits for a large By improving both the community- Compact.
number of farmers which are not service infrastructure and enhancing V. Other Highlights
quantified. local government capacity to provide,
The Agriculture Project will also operate and maintain community A. Consultative Process
support the development and improved services related to this infrastructure, Ghana’s Poverty Reduction Strategy
operations of approximately 120 small- the Rural Services Project should benefit process provided the basis for its
and medium-size enterprises providing several tens of thousands of households, process of consultation regarding the
services to agriculture where decrease the incidence of disease and development of its proposal for the
concentrations of farmer and FBO the time spent collecting water and fuel, program. Specifically, in 2004, the GoG
training will have taken place. Increased and increase school attendance, which held the first of a series of Compact-
access to credit will finance a majority in turn should lead to greater related consultations with civil society
of these changes, including irrigation productivity. Linking banks and their members of the Ghanaian Association of
and post-harvest infrastructure. Its branches nationwide via a wide-area Private and Voluntary Organizations in
support to facilitate the formal network should increase access to Development. Subsequent consultations
acquisition of land will decrease the financial services for the entire included: (i) Initial consultations with
transaction costs associated with population of Ghana, especially in stakeholders at both the national and
negotiating and formalizing land leases remote rural areas, in the form of local levels to focus the program’s
with traditional land custodians, savings, credit or cash transfers and objectives; (ii) consultations with
enhancing the willingness and ability of remittances. Finally, strengthening of stakeholders in each district within each
farmers to invest in on-farm public sector procurement capacity will Intervention Zone throughout the design
improvements. As a further measure to improve execution of the Support for of the program regarding the exact type
improve the local profitability of Community Services activity directly of interventions, proposed locations,
agriculture, the Agriculture Project will and, more generally, all citizens of arrangements for implementation, as
finance the improvement of over 950 Ghana with material improvements in well as the ownership structure for
kilometers of feeder roads, which, along performance of the entire public sector. certain infrastructure investments; (iii)
with the trunk roads below, will benefit In conclusion, as a first consultations with NGOs representing
a total population of more than 120,000 approximation, the program is the environmental and social sector
farming households with over 600,000 anticipated to help directly alleviate the (including women and youth), local
members. These activities will increase poverty of over 230,000 Ghanaians, and agribusinesses and farmers. MCC
farm incomes from cultivation by U.S. to substantially enhance the livelihoods observed a number of the consultations,
$450 to about U.S. $1,000. For many of and welfare of over one million both local and national. The
the poor, the compact intervention will Ghanaians in the aggregate. consultative process is ongoing and is
represent an increase of one dollar or expected to continue through the term
more in average income per person per IV. Program Management
of the Compact.
day. Through an act of its Parliament, the
The Transportation Project is GoG has created the Millennium B. GoG Commitment and Effectiveness
expected to open new economic Development Authority (MiDA) that The GoG is committed to assembling
opportunities for rural households by will serve as the entity accountable for a capable team to staff MiDA.
lowering transportation costs, including the implementation of the program Recruitment is underway currently for
travel times, for both individuals and under the Compact. MiDA will be the chief executive officer of MiDA and
cargo, to markets and social service governed by a Board of Directors 13 other key officers who will directly
delivery points. Because the N1 comprised of members of GoG, the support the implementation of the
Highway is a principal route from the private sector, and the non- program. The incumbent Minister of
south to the Port of Tema, widening the governmental organization (NGO) Public Sector Reform, who led the
N1 Highway should benefit community. A chief executive officer GoG’s team to develop the Compact,
approximately 150,000 daily users. will manage the day-to-day activities of will become the chair of the board of
directors of MiDA. Other members of the irrigation retention ponds and weirs, continue during the course of the
the board will come from line ministries the feeder roads, and large-scale Compact.
directly relevant to the program, and the agricultural intensification and In implementing the Transportation
private sector and NGOs as a means to conversion (e.g., deforestation, Project, MCC is working alongside
provide feedback on the implementation monoculture). The Transportation several other donors active in the sector,
of the program. One advisory committee Project is classified as ‘‘Category A’’ due namely the World Bank, European
for each Intervention Zone will be to potentially adverse site-specific Union, Danish International
formed to bring the on-the-ground impacts resulting from improvements to Development Agency and DfID to avoid
perspective back to the MiDA. President the N1 Highway and select trunk roads, duplication and to ensure policy
Kufuor remains engaged, providing including the acquisition of, or coordination.
leadership and ensuring that MiDA will compensation for, approximately 800 MCC is basing its investments under
have the inter-ministerial cooperation permanent and temporary structures the Rural Services Project on an existing
necessary for the success of the (e.g., containers and kiosks) on the N1 Community Based Rural Development
program. In addition, the GoG will Highway’s right of way. Furthermore, Project (CBRDP) financed by the World
undertake to make up eventual there will be both induced and Bank and Agence Francaise de
shortfalls in funding, if any, necessary cumulative impacts on the Afram Basin Développement. The MCC investments
to sustain the program in such areas as region resulting from increased access will extend the services of the program
road maintenance, community services provided by the trunk roads and ferries. implementation unit developed under
recurrent costs, and environmental The Rural Services Project is classified the CBRDP and the capacity building
mitigation. as ‘‘Category B’’ and will require activities financed in the project will
selection criteria for provision of use the existing training program
C. Sustainability
community services that take into piloted by CBRDP.
The activities under the Agriculture account environmental and social
Project will create new and strengthen Millennium Challenge Compact
impacts. Between the United States of America
existing input suppliers, processors and
Overall, because of the breadth and Acting Through the Millennium
marketers and enhance a climate that
scope of the proposed program, strategic Challenge Corporation and the
attracts additional outside investment in
environmental assessments and baseline Government of the Republic of Ghana
the agriculture sector, thus leading to its
studies will be required for each
continued growth. The GoG has Table of Contents
affirmed that it will maintain the Intervention Zone prior to initiating any
required project-specific environmental Article I. Purpose and Term
rehabilitated roads in accordance with Section 1.1 Compact Goal; Objectives
standards that have been agreed with impact assessments and substantial
Section 1.2 Projects
the broad donor community and will investment in physical infrastructure.
Section 1.3 Entry into Force; Compact
increase funding commitment to the Environmental management plans and Term
road sector accordingly. MCC is resettlement action plans will be Article II. Funding and Resources
requiring from GoG that it will provide developed for all Projects as necessary. Section 2.1 MCC Funding
for the staffing, equipping, and other The environmental and social benefits Section 2.2 Government Resources
recurrent costs of new (and some expected from the Compact include Section 2.3 Limitations on the Use or
enhanced livelihoods, greater access to Treatment of MCC Funding
existing) infrastructure investments. Section 2.4 Incorporation; Notice;
Selection criteria for community social services, and more sustainable
agricultural practices, ultimately leading Clarification
services infrastructure will also Section 2.5 Refunds; Violation
stipulate a minimum level of to reduced slash and burn agriculture Section 2.6 Bilateral Agreement
community contribution to investment and improved soil quality. Article III. Implementation
and participation in upkeep of new E. Donor Coordination Section 3.1 Implementation Framework
facilities. Environmental and social Section 3.2 Government Responsibilities
sustainability of the program will be The $547 million Compact will place Section 3.3 Government Deliveries
the U.S. among the top three donors to Section 3.4 Government Assurances
enhanced through oversight and Section 3.5 Implementation Letters;
ongoing public consultation. The Rural Ghana. As such, donor coordination is
particularly important to ensure that Supplemental Agreements
Services Project will include a capacity Section 3.6 Procurement; Awards of
building component to reinforce MCC’s investment is building upon and Assistance
participatory planning, procurement, complementing the work of other Section 3.7 Policy Performance; Policy
financial management, maintenance donors. Reforms
planning and budgeting, operations and There are significant Section 3.8 Records and Information;
maintenance of physical infrastructure. complementarities between the program Access; Audits; Reviews
and current donor activity in Ghana. Section 3.9 Insurance; Performance
MCC investments in secure land access Guarantees
will emphasize community consultation The Agriculture Project, for instance,
Section 3.10 Domestice Requirements
and resolution of disputes, important for will build upon activities pioneered by Section 3.11 No Conflict
durable secure tenure. U.S. Agency for International Section 3.12 Reports
Development’s Trade and Investment Article IV. Conditions Precedent; Deliveries
D. Environment and Social Assessments Program for a Competitive Export Section 4.1 Conditions Prior to the Entry
According to MCC’s environmental Economy (TIPCEE), and those into Force and Deliveries
guidelines, the Agriculture Project is developed under the Agricultural Section 4.2 Conditions Precedent to MCC
classified as ‘‘Category A’’ (with the Services Sub-Sector Investment Project Disbursements or Re-Disbursements
exception of the credit-related activity supported by the World Bank, the UK’s Article V. Final Clauses
Section 5.1 Communications

that is classified as a ‘‘Category D’’ and Department for International Section 5.2 Representatives
requires lending guidelines that Development (DfID), African Section 5.3 Amendments
stipulate environmental requirements). Development Bank, the International Section 5.4 Termination; Suspension
Specifically, potentially adverse Fund for Agricultural Development and Section 5.5 Privileges and Immunities
environmental impacts may result from others. TIPCEE activities are expected to Section 5.6 Attachments
Section 5.7 Inconsistenecies consistent with core MCA principles Section 1.2 Projects
Section 5.8 Indemnification and includes projects and related
Section 5.9 Headings The Annexes attached hereto describe
activities that will advance the progress the specific projects, the policy reforms
Section 5.10 Interpretation of Ghana towards achieving poverty
Section 5.11 Signatures and other activities related thereto
Section 5.12 Designation
reduction through economic growth; (each, a ‘‘Project’’) that the Government
Section 5.13 Survival and will carry out, or cause to be carried out,
Section 5.14 Consultation Whereas, based on MCC’s evaluation in furtherance of this Compact to
Section 5.15 MCC Status of the Proposal and related documents achieve the Objectives and the Compact
Section 5.16 Language and subsequent discussions and Goal.
Section 5.17 Publicity; Information and negotiations between the Parties, the
Marking Government and MCC determined to Section 1.3 Entry into Force; Compact
Exhibit A: Definitions enter into this Compact to implement a Term
Exhibit B: List of Certain Supplemental program using MCC Funding to advance
Agreements
This Compact shall enter into force on
Schedule 2.1(a)(iii): Compact Implementation
Ghana’s progress towards poverty the date of the last letter in an exchange
Funding reduction through economic growth (the of letters between the Principal
Annex I: Program Description ‘‘Program’’); Representatives of each Party
Schedule 1: Agriculture Project Now, therefore, in consideration of confirming that each Party has
Schedule 2: Transportation Project the foregoing and the mutual covenants completed its domestic requirements for
Schedule 3: Rural Development Project and agreements set forth herein, the entry into force of this Compact
Annex II: Summary of Multi-Year Financial Parties hereby agree as follows: (including as set forth in Section 3.10)
Plan and that all conditions set forth in
Exhibit A: Multi-Year Financial Plan Article I. Purpose and Term
Summary
Section 4.1 have been satisfied by the
Section 1.1 Compact Goal; Objectives Government and MCC (the ‘‘Entry into
Annex III: Description of the M&E Plan
The goal of this Compact is poverty Force’’). This Compact shall remain in
Millennium Challenge Compact reduction through economic growth in force for five (5) years from the Entry
This Millennium Challenge Compact Ghana (the ‘‘Compact Goal’’). The key to into Force, unless earlier terminated in
(the ‘‘Compact’’) is made between the advancing the Compact Goal is the two- accordance with Section 5.4 (the
United States of America, acting fold objective of the Program, first, to ‘‘Compact Term’’).
through the Millennium Challenge increase the production and Article II. Funding and Resources
Corporation, a United States productivity of high-value cash and
Government corporation (‘‘MCC’’) and food staple crops in the Intervention Section 2.1 MCC Funding
the Government of the Republic of Zones in Ghana and, second, to enhance (a) MCC’s Contribution. MCC hereby
Ghana (the ‘‘Government’’) (referred to the competitiveness of Ghana’s high- grants to the Government, subject to the
herein individually as a ‘‘Party’’ and value cash and food crops in both local terms and conditions of this Compact,
collectively, the ‘‘Parties’’). A and international markets (collectively, an amount not to exceed Five Hundred
compendium of capitalized terms the ‘‘Program Objective’’). The Parties Forty Seven Million and Nine Thousand
defined herein is included in Exhibit A have identified the following project- United States Dollars (US$ 547,009,000)
attached hereto. level objectives (each, a ‘‘Project (‘‘MCC Funding’’) during the Compact
Objective’’) of this Compact to advance Term to enable the Government to
Recitals
the Program Objective, and thus the implement the Program and achieve the
Whereas, MCC, acting through its Compact Goal, each of which is Objectives.
Board of Directors, has selected Ghana described in more detail in the Annexes (i) Subject to Sections 2.1(a)(ii), 2.2(b)
as eligible to present to MCC a proposal attached hereto: and 5.4(b), the allocation of the MCC
for the use of Millennium Challenge (a) Enhance the profitability of Funding within the Program and among
Account (‘‘MCA’’) assistance to help cultivation, services to agriculture and and within the Projects shall be as
facilitate poverty reduction through product handling in support of the generally described in Annex II or as
economic growth in Ghana; expansion of commercial agriculture otherwise agreed upon by the Parties
Whereas, the Government has carried among groups of smallholder farmers from time to time.
out a consultative process with the (the ‘‘Agriculture Project Objective’’); (ii) If at any time MCC determines that
country’s private sector and civil society (b) Reduce the transportation costs a condition precedent to an MCC
to outline the country’s priorities for the affecting agricultural commerce at sub- Disbursement has not been satisfied,
use of MCA assistance and developed a regional and regional levels (the MCC may, upon written notice to the
proposal, which final proposal was ‘‘Transportation Project Objective’’); and Government, reduce the total amount of
submitted to MCC on October 28, 2005 (c) Strengthen the rural institutions MCC Funding by an amount equal to the
(the ‘‘Proposal’’); that provide services complementary to, amount estimated in the applicable
Whereas, the Proposal focused on, and supportive of, agricultural and agri- Detailed Budget for the Program,
among others, increasing farmer business development (the ‘‘Rural Project, Project Activity or sub-activity
incomes through modernizing Ghana’s Development Project Objective’’). for which such condition precedent has
agricultural sector, together with The Government expects to achieve, not been met. Upon the expiration or
investments in developing and shall use its best efforts to ensure termination of this Compact, (A) any
transportation infrastructure and rural the achievement of, the Compact Goal, amounts of MCC Funding not disbursed
institutions, all designed to dismantle Program Objective and Project by MCC to the Government shall be
obstacles to realizing Ghana’s Objectives during the Compact Term. automatically released from any
agricultural potential as an engine of The Program Objective and the obligation in connection with this
economic growth; individual Project Objectives are Compact and (B) any amounts of MCC
Whereas, MCC has evaluated the collectively referred to herein as Funding disbursed by MCC to the
Proposal and related documents to ‘‘Objectives’’ and each individually as Government as provided in Section
determine whether the Proposal is an ‘‘Objective.’’ 2.1(b)(i), but not re-disbursed as
provided in Section 2.1(b)(ii) or otherwise provided in any other other responsibilities or obligations of
otherwise incurred as permitted Supplemental Agreement. the Government under or in furtherance
pursuant to Section 5.4(e) prior to the (c) Interest. Unless the Parties agree of this Compact during the Compact
expiration or termination of this otherwise in writing, any interest or Term and through the completion of any
Compact, shall be returned to MCC in other earnings on MCC Funding that post-Compact Term activities, audits or
accordance with Section 2.5(a)(ii). accrue (collectively, ‘‘Accrued Interest’’) other responsibilities.
(iii) Notwithstanding any other shall be held in a Permitted Account (b) If at any time during the Compact
provision of this Compact and pursuant and accrue in accordance with the Term, the Government materially
to the authority of Section 609(g) of the requirements for the accrual and reallocates or reduces the allocation in
Millennium Challenge Act of 2003, as treatment of Accrued Interest as its national budget or any other
amended (the ‘‘Act’’), upon the specified in Annex I or any governmental authority of Ghana at a
conclusion of this Compact (and Supplemental Agreement. On a departmental, municipal, regional or
without regard to the satisfaction of all quarterly basis and upon the other jurisdictional level materially
of the conditions for Entry into Force termination or expiration of this reallocates or reduces the allocation in
required under Section 1.3), MCC shall Compact, the Government shall return, its respective budget of the normal and
make available Ten Million and Three or ensure the return of, all Accrued expected resources that the Government
Hundred Seventy One Thousand United Interest to any United States or such other governmental authority, as
States Dollars (US$ 10,371,000) Government account designated by applicable, would have otherwise
(‘‘Compact Implementation Funding’’) MCC. received or budgeted, from external or
to facilitate certain aspects of Compact (d) Conversion; Exchange Rate. The domestic sources, for the activities
implementation as described in Government shall ensure that all MCC contemplated herein, the Government
Schedule 2.1(a)(iii) attached hereto; Funding that is held in any Permitted shall notify MCC in writing within
provided, such Compact Account shall be denominated in the fifteen (15) days of such reallocation or
Implementation Funding shall be currency of the United States of reduction, such notification to contain
subject to (A) the limitations on the use America (‘‘United States Dollars,’’ information regarding the amount of the
or treatment of MCC Funding set forth ‘‘US$’’ or ‘‘$’’) prior to Re-Disbursement; reallocation or reduction, the affected
provided, that a certain portion of MCC activities, and an explanation for the
in Section 2.3, as if such provision were
Funding may be transferred to a Local reallocation or reduction. In the event
in full force and effect, and (B) any other
Account and may be held in such Local that MCC independently determines,
requirements for, and limitations on the
Account in the currency of the Ghana upon review of the executed national
use of, such Compact Implementation
prior to Re-Disbursement in accordance annual budget that such a material
Funding as may be required by MCC in
with the requirements of Annex I and reallocation or reduction of resources
writing; provided, further, that any
any Supplemental Agreement. To the has occurred, MCC shall notify the
Compact Implementation Funding
extent that any amount of MCC Funding Government and, following such
granted in accordance with this Section
held in United States Dollars must be notification, the Government shall
2.1(a)(iii) shall be included in, and not
converted into the currency of Ghana for provide a written explanation for such
additional to, the total amount of MCC any purpose, including for any Re- reallocation or reduction and MCC may
Funding; and provided further, any Disbursement or any transfer of MCC (i) reduce, in its sole discretion, the total
obligation to provide such Compact Funding into a Local Account, the amount of MCC Funding or any MCC
Implementation Funding shall expire Government shall ensure that such Disbursement by an amount equal to the
upon the expiration or termination of amount is converted consistent with amount estimated in the applicable
this Compact or five (5) years from the Annex I, including the rate and manner Detailed Budget for the activity for
conclusion of this Compact, whichever set forth in Annex I, and the which funds were reduced or
occurs sooner, and in accordance with requirements of the Disbursement reallocated or (ii) otherwise suspend or
Section 5.4(e). Notwithstanding Agreement or any other Supplemental terminate MCC Funding in accordance
anything to the contrary in this Agreement between the Parties. with Section 5.4(b).
Compact, this Section 2.1(a)(iii) shall (e) Guidance. From time to time, MCC (c) The Government shall use its best
provisionally apply prior to Entry into may provide guidance to the efforts to ensure that all MCC Funding
Force. Government through Implementation is fully reflected and accounted for in
(b) Disbursements. Letters on the frequency, form and the annual budget of Ghana on a multi-
(i) Disbursements of MCC Funding. content of requests for MCC year basis.
MCC shall from time to time make Disbursements and Re-Disbursements or
disbursements of MCC Funding (each Section 2.3 Limitations on the Use or
any other matter relating to MCC
such disbursement, an ‘‘MCC Treatment of MCC Funding
Funding. The Government shall apply
Disbursement’’) to a Permitted Account such guidance in implementing this (a) Abortions and Involuntary
or through such other mechanism Compact. Sterilizations. The Government shall
agreed by the Parties under and in ensure that MCC Funding shall not be
accordance with the procedures and Section 2.2 Government Resources used to undertake, fund or otherwise
requirements set forth in Annex I, the (a) The Government shall provide or support any activity that is subject to
Disbursement Agreement or as cause to be provided such Government prohibitions on use of funds contained
otherwise provided in any other funds and other resources, and shall in (i) paragraphs (1) through (3) of
Supplemental Agreement. take or cause to be taken such actions, section 104(f) of the Foreign Assistance
(ii) Re-Disbursements of MCC including obtaining all necessary Act of 1961 (22 U.S.C. 2151b(f)(1)–(3)),
Funding. The release of MCC Funding approvals and consents, as are specified a United States statute, which
from a Permitted Account (each such in this Compact or in any Supplemental prohibitions shall apply to the same
release, a ‘‘Re-Disbursement’’) shall be Agreement to which the Government is extent and in the same manner as such
made in accordance with the procedures a party or as are otherwise necessary prohibitions apply to funds made
and requirements set forth in Annex I, and appropriate effectively to carry out available to carry out Part I of such Act;
the Disbursement Agreement or as the Government Responsibilities or or (ii) any provision of law comparable
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 Ghana and who
Public Law 108–7 (117 Stat. 162), a Government agree otherwise in writing, are present in Ghana 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 website or of Ghana, 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, any Program charges; for purposes of this Section
United States firms to relocate a Assets, MCC Funding and Accrued 2.3(e)(i)(4), the term ‘‘last transaction’’
substantial number of United States jobs Interest shall be free from any taxes refers to the last transaction by which
or a substantial amount of production imposed under the laws currently or the goods or services were purchased for
outside the United States; hereafter in effect in Ghana during the use in the activities funded by MCC
(iii) Conducting feasibility studies, Compact Term. This exemption shall Funding.
research services, studies, travel to or apply to any use of any Program Asset, (ii) This Section 2.3(e) shall apply, but
from the United States, or providing MCC Funding and Accrued Interest, is not limited to (A) any transaction,
insurance or technical and management including any Exempt Uses, and to any service, activity, contract, grant or other
assistance, with the intention of work performed under or activities implementing agreement funded in
inducing United States firms to relocate undertaken in furtherance of this whole or in part by MCC Funding; (B)
a substantial number of United States Compact by any person or entity any supplies, equipment, materials,
jobs or cause a substantial displacement (including contractors and grantees) property or other goods (referred to
of production outside the United States; funded by MCC Funding, and shall collectively in this Section 2.3(e) as
(iv) Advertising in the United States apply to all taxes, tariffs, duties, and ‘‘goods’’) or funds introduced into,
to encourage United States firms to other levies (each a ‘‘Tax’’ and acquired in, used or disposed of in, or
relocate a substantial number of United collectively, ‘‘Taxes’’), including: imported into or exported from, Ghana
States jobs or cause a substantial (1) To the extent attributable to MCC by MCC, or by any person or entity
displacement of production outside the Funding, income taxes and other taxes (including contractors and grantees) as
United States; on profit or businesses imposed on part of, or in conjunction with, MCC
(v) Training workers for firms that organizations or entities, other than Funding or the Program; (C) any
intend to relocate a substantial number nationals of Ghana, receiving MCC contractor, grantee, or other
of United States jobs or cause a Funding, including taxes on the organization carrying out activities
substantial displacement of production acquisition, ownership, rental, funded in whole or in part by MCC
outside the United States; disposition or other use of real or Funding; and (D) any employee of such
(vi) Supporting a United States office personal property, taxes on investment organizations (the uses set forth in
of an organization that offers incentives or deposit requirements and currency clauses (A) through (D) are collectively
for United States firms to relocate a controls in Ghana, or any other tax, referred to herein as ‘‘Exempt Uses’’).
substantial number of United States jobs duty, charge or fee of whatever nature, (iii) If a Tax has been levied and paid
or cause a substantial displacement of except fees for specific services contrary to the requirements of this
production outside the United States; or rendered; for purposes of this Section Section 2.3(e), whether inadvertently,
(vii) Providing general budget support 2.3(e), the term ‘‘national’’ refers to due to the impracticality of
for an organization that engages in any organizations established under the implementation of this provision with
activity prohibited above. laws currently or hereafter in effect in respect to certain types or amounts of
(c) Military Assistance and Training. Ghana, other than MiDA or any other taxes, or otherwise, the Government
The Government shall ensure that MCC entity established solely for purposes of shall refund promptly to an account
Funding shall not be used to undertake, managing or overseeing the designated by MCC the amount of such
fund or otherwise support the purchase implementation of the Program or any Tax in the currency of Ghana, within
or use of goods or services for military wholly-owned subsidiaries, divisions, thirty (30) days (or such other period as
purposes, including military training, or or Affiliates of entities not registered or may be agreed in writing by the Parties)
to provide any assistance to the military, established under the laws currently or after the Government is notified in
police, militia, national guard or other hereafter in effect in Ghana; writing of such levy and tax payment,
quasi-military organization or unit. (2) Customs duties, tariffs, import and in accordance with procedures agreed
(d) Prohibition of Assistance Relating export taxes, or other levies on the by the Parties, whether by MCC or
to Environmental, Health or Safety importation, use and re-exportation of otherwise; provided, however, the
Hazards. The Government shall ensure goods, services, or the personal Government shall apply national funds
that MCC Funding shall not be used to belongings and effects, including to satisfy its obligations under this
undertake, fund or otherwise support personally-owned automobiles, for paragraph and no MCC Funding,
Accrued Interest, or any assets, goods, applicable law of the United States of question. In such event, the Government
or property (real, tangible, or intangible) America now or hereafter in effect shall not proceed, and shall use its best
purchased or financed in whole or in during the Compact Term, (ii) as efforts to ensure that no relevant
part (directly or indirectly) by MCC advisable under or required by Provider proceeds, with such activity,
Funding (‘‘Program Assets’’) may be applicable United States Government and the Government shall ensure that
applied by the Government in policies now or hereafter in effect no Re-Disbursements shall be made for
satisfaction of its obligations under this during the Compact Term, or (iii) to such activity, until MCC advises the
paragraph. which the Parties may otherwise agree Government or such Provider in writing
(iv) At MCC’s request, the Parties in writing. that the activity is permissible. MCC
shall memorialize in a mutually (i) Utilization of Goods, Services and shall use good faith efforts to respond
acceptable Supplemental Agreement, Works. The Government shall ensure timely to such notification for
Implementation Letter or other suitable that any Program Assets, services, clarification.
document the mechanisms for facilities or works funded in whole or in
implementing this Section 2.3(e), part (directly or indirectly) by MCC Section 2.5 Refunds; Violation
including (A) a formula for determining Funding, unless otherwise agreed by the (a) Notwithstanding the availability to
refunds for Taxes paid, the amount of Parties in writing, shall be used solely MCC, or exercise by MCC, of any other
which is not susceptible to precise in furtherance of this Compact. remedies, including under international
determination, (B) a mechanism for (j) Notification of Applicable Laws law, this Compact or any Supplemental
ensuring the tax-free importation, use, and Policies. MCC shall notify the Agreement:
and re-exportation of goods, services, or Government of any applicable United (i) If any amount of MCC Funding,
the personal belongings of individuals States law or policy affecting the use or Accrued Interest or any other Program
(including all Providers) described in treatment of MCC Funding, whether or Asset is used for any purpose prohibited
Section 2.3(e)(i)(2) above, (C) a not specifically identified in this under this Article II or otherwise in
requirement for the provision by the Section 2.3, and shall provide to the violation of any of the terms and
Government of a tax-exemption Government a copy of the text of any conditions of this Compact, any
certificate which expressly includes, such applicable law and a written guidance in any Implementation Letter,
inter alia, the thirty (30) day refund explanation of any such applicable or any Supplemental Agreement
requirement of Section 2.3(e)(iii) above, policy. between the Parties, MCC may, upon
and (D) any other appropriate written notice, require the Government
Section 2.4 Incorporation; Notice; to repay promptly to MCC to an account
Government action to facilitate the Clarification
administration of this Section 2.3(e). designated by MCC, or to others as MCC
(f) Alteration. The Government shall (a) The Government shall include, or may direct, the amount of such misused
ensure that no MCC Funding, Accrued ensure the inclusion of, all of the MCC Funding or Accrued Interest, or
Interest or Program Assets shall be requirements set forth in Section 2.3 in the cash equivalent of the value of any
subject to any impoundment, rescission, all Supplemental Agreements to which other misused Program Asset, in United
sequestration or any provision of law MCC is not a party and shall use its best States Dollars, plus any interest that
now or hereafter in effect in Ghana that efforts to ensure that no such accrued or would have accrued thereon,
would have the effect of requiring or Supplemental Agreement is within thirty (30) days after the
allowing any impoundment, rescission implemented in violation of the Government is notified, whether by
or sequestration of any MCC Funding, prohibitions set forth in Section 2.3. MCC or other duly authorized
Accrued Interest or Program Asset. (b) The Government shall ensure representative of the United States
(g) Liens or Encumbrances. The notification of all of the requirements Government, of such prohibited use;
Government shall ensure that no MCC set forth in Section 2.3 to any Provider provided, however, the Government
Funding, Accrued Interest, or Program and all relevant officers, directors, shall apply national funds to satisfy its
Assets shall be subject to any lien, employees, agents, representatives, obligations under this Section 2.5(a)(i)
attachment, enforcement of judgment, Affiliates, contractors, sub-contractors, and no MCC Funding, Accrued Interest,
pledge, or encumbrance of any kind grantees and sub-grantees of any or any other Program Assets may be
(each a ‘‘Lien’’), except with the prior Provider. The term ‘‘Provider’’ shall applied by the Government in
approval of MCC in accordance with mean (i) MiDA and any Government satisfaction of its obligations under this
Section 3(c) of Annex I, and in the event Affiliate or Permitted Designee involved Section 2.5(a)(i); and
of the imposition of any Lien not so in any activities in furtherance of this (ii) If all or any portion of this
approved, the Government shall Compact or (ii) any third party who Compact is terminated or suspended
promptly seek the release of such Lien receives at least US$ 50,000 in the and upon the expiration of this
and if required by final non-appealable aggregate of MCC Funding (other than Compact, the Government shall, subject
order, shall pay any amounts owed to employees of MiDA) during the to the requirements of Sections 5.4(e)
obtain such release; provided, however, Compact Term or such other amount as and 5.4(f), refund, or ensure the refund
the Government shall apply national the Parties may agree in writing, of, to such account designated by MCC
funds to satisfy its obligations under whether directly from MCC, indirectly the amount of any MCC Funding, plus
this Section 2.3(g) and no MCC through Re-Disbursements, or any Accrued Interest, promptly, but in
Funding, Accrued Interest, or Program otherwise. no event later than thirty (30) days after
Assets may be applied by the (c) In the event the Government or the Government receives MCC’s request
Government in satisfaction of its any Provider requires clarification from for such refund; provided, that if this
obligations under this Section 2.3(g). MCC as to whether an activity Compact is terminated or suspended in
(h) Other Limitations. The contemplated to be undertaken in part, MCC may request a refund for only
Government shall ensure that the use or furtherance of this Compact violates or the amount of MCC Funding, plus any
treatment of MCC Funding, Accrued may violate any provision of Section Accrued Interest, then allocated to the
Interest, and Program Assets shall be 2.3, the Government shall notify MCC in terminated or suspended portion;
subject to and in conformity with such writing and provide in such notification provided, further, that any refund of
other limitations (i) as required by the a detailed description of the activity in MCC Funding or Accrued Interest shall
be to such account(s) as designated by contractors, grantees, sub-grantees, collectively as ‘‘Designated Rights and
MCC. agents or representatives. Responsibilities’’). Notwithstanding any
(b) Notwithstanding any other (b) The Government shall ensure that provision herein or any other agreement
provision in this Compact or any other no person or entity shall participate in to the contrary, no such designation
agreement to the contrary, MCC’s right the selection, award, administration, or shall relieve the Government of such
under this Section 2.5 for a refund shall oversight of a contract, grant or other Designated Rights and Responsibilities,
continue during the Compact Term and benefit or transaction funded in whole for which the Government shall retain
for a period of (i) five (5) years thereafter or in part (directly or indirectly) by ultimate responsibility. In the event that
or (ii) one (1) year after MCC receives MCC Funding, in which (i) the entity, the Government designates any person
actual knowledge of such violation, the person, members of the person’s or entity, including any Government
whichever is later. immediate family or household or his or Affiliate, to implement any portion of
(c) If MCC determines that any her business partners, or organizations the Government Responsibilities or
activity or failure to act violates, or may controlled by or substantially involving other responsibilities or obligations of
violate, any Section in this Article II, such person or entity, has or have a the Government, or to exercise any
MCC may refuse any further MCC direct or indirect financial or other rights of the Government under this
Disbursements for or conditioned upon interest or (ii) the person or entity is Compact or any Supplemental
such activity, and may take any action negotiating or has any arrangement Agreement between the Parties, in
to prevent any Re-Disbursement related concerning prospective employment, accordance with this section 3.2(c), then
to such activity. unless such person or entity has first the Government shall (i) cause such
disclosed in writing to the Government person or entity to perform such
Section 2.6 Bilateral Agreement the conflict of interest and, following Designated Rights and Responsibilities
All MCC Funding shall be considered such disclosure, the Parties agree in in the same manner and to the full
United States assistance under the writing to proceed notwithstanding extent to which the Government is
General Agreement for a Programme of such conflict. The Government shall obligated to perform such Designated
Technical Co-operation by and between ensure that no person or entity involved Rights and Responsibilities, (ii) ensure
the Government of the United States of in the selection, award, administration, that such person or entity does not
America and the Government, dated oversight or implementation of any assign, delegate or contract (or
June 3, 1957, as amended from time to contract, grant or other benefit or otherwise transfer) any of such
time (the ‘‘Bilateral Agreement’’). If transaction funded in whole or in part Designated Rights and Responsibilities
there are conflicts or inconsistencies (directly or indirectly) by MCC Funding to any person or entity and (iii) cause
between any parts of this Compact and shall solicit or accept from or offer to a such person or entity to certify to MCC
the Bilateral Agreement, as either may third party or seek or be promised in writing that it will so perform such
be amended from time to time, the directly or indirectly for itself or for Designated Rights and Responsibilities
provisions of this Compact shall prevail another person or entity any gift, and will not assign, delegate, or contract
over those of the Bilateral Agreement. gratuity, favor or benefit, other than (or otherwise transfer) any of such
items of de minimis value and otherwise Designated Rights and Responsibilities
Article III. Implementation consistent with such guidance as MCC to any person or entity without the prior
Section 3.1 Implementation may provide from time to time. written consent of MCC.
Framework (c) The Government shall not (d) The Government shall, upon a
designate any person or entity, request from MCC, execute, or ensure
This Compact shall be implemented including any Government Affiliate, to the execution of, an assignment to MCC
by the Parties in accordance with this implement, in whole or in part, this of any cause of action which may accrue
Article III and as further specified in the Compact or any Supplemental to the benefit of the Government, a
Annexes and in relevant Supplemental Agreement between the Parties Government Affiliate or any Permitted
Agreements. (including any Government Designee, including MiDA, in
Section 3.2 Government Responsibilities or any other connection with or arising out of any
Responsibilities responsibilities or obligations of the activities funded in whole or in part
Government under this Compact or any (directly or indirectly) by MCC Funding.
(a) The Government shall have Supplemental Agreement between the (e) The Government shall ensure that
principal responsibility for oversight Parties) or to exercise any rights of the (i) no decision of MiDA is modified,
and management of the implementation Government under this Compact or any supplemented, unduly influenced or
of the Program (i) in accordance with Supplemental Agreement between the rescinded by any governmental
the terms and conditions specified in Parties, except as expressly provided authority, except by a non-appealable
this Compact and relevant herein or with the prior written consent judicial decision, and (ii) the authority
Supplemental Agreements, (ii) in of MCC; provided, however, the of MiDA shall not be expanded,
accordance with all applicable laws Government may designate MiDA or, restricted, or otherwise modified, except
then in effect in Ghana, and (iii) in a with the prior written consent of MCC, in accordance with this Compact, the
timely and cost-effective manner and in such other mutually acceptable persons Governance Agreement, any other
conformity with sound technical, or entities (each, a ‘‘Permitted Governing Document or any other
financial and management practices Designee’’) to implement some or all of Supplemental Agreement between the
(collectively, the ‘‘Government the Government Responsibilities or any Parties.
Responsibilities’’). Unless otherwise other responsibilities or obligations of (f) The Government shall ensure that
expressly provided, any reference to the the Government or to exercise any rights all persons and individuals that enter
Government Responsibilities or any of the Government under this Compact into agreements to provide goods,
other responsibilities or obligations of or any Supplemental Agreement services or works under the Program or
the Government herein shall be deemed between the Parties each in accordance in furtherance of this Compact shall do
to apply to any Government Affiliate with the terms and conditions set forth so in accordance with the Procurement
and any of their respective directors, in this Compact or such Supplemental Guidelines and shall obtain all
officers, employees, contractors, sub- Agreement (referred to herein necessary immigration, business and
other permits, licenses, consents and furtherance of this Compact, in violation (iv) No more than a commercially
approvals to enable them and their of the United States Foreign Corrupt reasonable price, as determined, for
personnel to fully perform under such Practices Act of 1977, as amended (15 example, by a comparison of price
agreements. U.S.C. 78a et seq.). quotations and market prices, shall be
paid to procure goods, services, and
Section 3.3 Government Deliveries Section 3.5 Implementation Letters;
works.
The Government shall proceed, and Supplemental Agreements (b) The Government shall maintain,
cause others to proceed, in a timely (a) MCC may, from time to time, issue and shall use its best efforts to ensure
manner to deliver to MCC all reports, one or more letters to furnish additional that all Providers maintain, records
notices, certificates, documents or other information or guidance to assist the regarding the receipt and use of goods,
deliveries required to be delivered by Government in the implementation of services and works acquired in
the Government under this Compact or this Compact (each, an ‘‘Implementation furtherance of this Compact, the nature
any Supplemental Agreement between Letter’’). The Government shall apply and extent of solicitations of prospective
the Parties, in form and substance as set such guidance in implementing this suppliers of goods, services and works
forth in this Compact or in any such Compact. acquired in furtherance of this Compact,
Supplemental Agreement. (b) The details of any funding, and the basis of award of contracts,
implementing and other arrangements grants and other agreements in
Section 3.4 Government Assurances in furtherance of this Compact may be furtherance of this Compact.
The Government hereby provides the memorialized in one or more (c) The Government shall use its best
following assurances to MCC that as of agreements between (i) the Government efforts to ensure that information,
the date this Compact is signed: (or any Government Affiliate or including solicitations, regarding
(a) The information contained in the Permitted Designee) and MCC, (ii) MCC procurement, grant and other agreement
Proposal and any agreement, report, or the Government (or any Government actions funded (or to be funded) in
statement, communication, document or Affiliate or Permitted Designee) and any whole or in part (directly or indirectly)
otherwise delivered or communicated to third party, including any of the by MCC Funding shall be made publicly
MCC by or on behalf of the Government Providers or Permitted Designee or (iii) available in the manner outlined in the
on or after the date of the submission of any third parties where neither MCC nor Procurement Guidelines or in any other
the Proposal (i) are true, correct and the Government is a party, before, on or manner agreed upon by the Parties in
complete in all material respects and (ii) after the Entry into Force (each, a writing.
do not omit any fact known to the ‘‘Supplemental Agreement’’). The (d) The Government shall ensure that
Government that if disclosed would (A) Government shall deliver, or cause to be no goods, services or works may be
alter in any material respect the delivered, to MCC within five (5) days funded in whole or in part (directly or
information delivered, (B) likely have a of its execution a copy of any indirectly) by MCC Funding which are
material adverse effect on the Supplemental Agreement to which MCC procured pursuant to orders or contracts
Government’s ability to implement is not a party. firmly placed or entered into prior to the
effectively, or ensure the effective Entry into Force, except as the Parties
implementation of, the Program or any Section 3.6 Procurement; Awards of may otherwise agree in writing.
Project or otherwise to carry out its Assistance (e) The Government shall ensure that
responsibilities or obligations under or (a) The Government shall ensure that MiDA and any other Permitted Designee
in furtherance of this Compact, or (C) the procurement of all goods, services follows, and uses its best efforts to
have likely adversely affected MCC’s and works by the Government or any ensure that all Providers follow, the
determination to enter into this Provider in furtherance of this Compact Procurement Guidelines in procuring
Compact or any Supplemental shall be consistent with the (including soliciting) goods, services
Agreement between the Parties. procurement guidelines (the and works and in awarding and
(b) Unless otherwise disclosed in ‘‘Procurement Guidelines’’) reflected in administering contracts, grants and
writing to MCC, the MCC Funding made a Supplemental Agreement between the other agreements in furtherance of this
available hereunder is in addition to the Government (and a mutually acceptable Compact, and shall furnish MCC
normal and expected resources that the Government Affiliate or MiDA) and evidence of the adoption of the
Government usually receives or budgets MCC (the ‘‘Procurement Agreement’’), Procurement Guidelines by MiDA no
for the activities contemplated herein which Procurement Guidelines shall later than the time specified in the
from external or domestic sources. include the following requirements: Disbursement Agreement.
(c) This Compact does not conflict (i) Internationally accepted (f) The Government shall include, or
and will not conflict with any procurement rules with open, fair and ensure the inclusion of, the
international agreement or obligation to competitive procedures are used in a requirements of this section 3.6 into all
which the Government is a party or by transparent manner to solicit, award and Supplemental Agreements between the
which it is bound. administer contracts, grants, and other Government, any Government Affiliate
(d) No payments have been (i) agreements and to procure goods, or Permitted Designee or any of their
received by any official of the services and works; respective directors, officers, employees,
Government or any other government (ii) Solicitations for goods, services, Affiliates, contractors, sub-contractors,
body in connection with the and works shall be based upon a clear grantees, sub-grantees, representatives
procurement of goods, services or works and accurate description of the goods, or agents, on the one hand, and a
to be undertaken or funded in whole or services or works to be acquired; Provider, on the other hand.
in part (directly or indirectly) by MCC (iii) Contracts shall be awarded only
Funding, except fees, taxes, or similar to qualified and capable contractors that Section 3.7 Policy Performance; Policy
payments legally established in Ghana have the capability and willingness to Reforms
(subject to Section 2.3(e)) and consistent perform the contracts in accordance In addition to the specific policy and
with the applicable requirement of the with the terms and conditions of the legal reform commitments identified in
laws of Ghana or (ii) made to any third applicable contracts and on a cost Annex I and the Schedules thereto, the
party, in connection with or in effective and timely basis; and Government shall seek to maintain and
to improve its level of performance after the end of the Compact Term or for Inspector General in accordance with
under the policy criteria identified in such longer period, if any, required to such Audit Guidelines. An audit shall
section 607 of the Act, and the MCA resolve any then pending litigation, be completed and delivered to MCC no
selection criteria and methodology claims or audit findings or any statutory later than ninety (90) days after the first
published by MCC pursuant to section requirements. period to be audited and no later than
607 of the Act from time to time (‘‘MCA (c) Access. Upon the request of MCC, ninety (90) days after each anniversary
Eligibility Criteria’’). the Government, at all reasonable times, of the Entry into Force thereafter, or
shall permit, or cause to be permitted, such other period as the Parties may
Section 3.8 Records and Information; authorized representatives of MCC, the otherwise agree in writing.
Access; Audits; Reviews Inspector General, the United States (ii) Audits of U.S. Entities. The
(a) Reports and Information. The Government Accountability Office, any Government shall ensure that
Government shall furnish to MCC, and auditor responsible for an audit Supplemental Agreements between the
shall use its best efforts to ensure that contemplated herein or otherwise Government or any Provider, on the one
all Providers and any other third party conducted in furtherance of this hand, and a United States non-profit
receiving MCC Funding, as appropriate, Compact, and any agents or organization, on the other hand, state
furnish to the Government (and the representatives engaged by MCC or a that the United States organization is
Government shall provide to MCC), any Permitted Designee to conduct any subject to the applicable audit
records and other information required assessment, review or evaluation of the requirements contained in OMB
to be maintained under this Section 3.8 Program, the opportunity to audit, Circular A–133, notwithstanding any
and such other information, documents review, evaluate or inspect activities other provision of this Compact to the
and reports as may be necessary or funded in whole or in part (directly or contrary. The Government shall ensure
appropriate for the Government to carry indirectly) by MCC Funding or that Supplemental Agreements between
out effectively its obligations under this undertaken in connection with the the Government or any Provider, on the
Compact, including under section 3.12. Program, the utilization of goods and one hand, and a United States for-profit
(b) Government Books and Records. services purchased or funded in whole Covered Provider, on the other hand,
The Government shall maintain, and or in part (directly or indirectly) by state that the United States organization
shall use its best efforts to ensure that MCC Funding, and Compact Records, is subject to audit by the cognizant
all Providers maintain, accounting including of the Government or any United States Government agency,
books, records, documents and other Provider, relating to activities funded or unless the Government and MCC agree
evidence relating to this Compact undertaken in furtherance of, or otherwise in writing.
adequate to show, to the satisfaction of otherwise relating to, this Compact, and (iii) Audit Plan. The Government
MCC, without limitation, the use of all shall use its best efforts to ensure access shall submit, or cause to be submitted,
MCC Funding, including all costs by MCC, the Inspector General, the to MCC no later than twenty (20) days
incurred by the Government and the United States Government prior to the date of its adoption a plan,
Providers in furtherance of this Accountability Office or relevant in accordance with the Audit
Compact, the receipt, acceptance and auditor, reviewer or evaluator or their Guidelines, for the audit of the
use of goods, services and works respective representatives or agents to expenditures of any Covered Providers,
acquired in furtherance of this Compact all relevant directors, officers, which audit plan, in the form and
by the Government and the Providers, employees, Affiliates, contractors, substance as approved by MCC, the
agreed-upon cost sharing requirements, representatives and agents of the Government shall adopt, or cause to be
the nature and extent of solicitations of Government or any Provider. adopted, no later than sixty (60) days
prospective suppliers of goods, services (d) Audits. prior to the end of the first period to be
and works acquired by the Government (i) Government Audits. The audited (such plan, the ‘‘Audit Plan’’).
and the Providers in furtherance of this Government shall, on at least an annual (iv) Covered Provider. A ‘‘Covered
Compact, the basis of award of basis and as the Parties may otherwise Provider’’ is (A) a non-United States
Government and other contracts and agree in writing, conduct, or cause to be Provider that receives (other than
orders in furtherance of this Compact, conducted, financial audits of all MCC pursuant to a direct contract or
the overall progress of the Disbursements and Re-Disbursements agreement with MCC) US$ 300,000 or
implementation of the Program, and any during the year since the Entry into more of MCC Funding in any MiDA
documents required by this Compact or Force or since the prior anniversary of fiscal year or any other non-United
any Supplemental Agreement between the Entry into Force in accordance with States person or entity that receives,
the Parties or reasonably requested by the following terms, except as the directly or indirectly, US$ 300,000 or
MCC upon reasonable notice (‘‘Compact Parties may otherwise agree in writing. more of MCC Funding from any
Records’’). The Government shall As requested by MCC in writing, the Provider in such fiscal year or (B) any
maintain, and shall use its best efforts Government shall use, or cause to be United States Provider that receives
to ensure that all Covered Providers used, or select or cause to be selected, (other than pursuant to a direct contract
maintain, Compact Records in an auditor named on the approved list or agreement with MCC) US$ 500,000 or
accordance with generally accepted of auditors in accordance with the more of MCC Funding in any MiDA
accounting principles prevailing in the ‘‘Guidelines for Financial Audits fiscal year or any other United States
United States, or at the Government’s Contracted by Foreign Recipients’’ (the person or entity that receives, directly or
option and with the prior written ‘‘Audit Guidelines’’) issued by the indirectly, US$ 500,000 or more of MCC
approval by MCC, other accounting Inspector General of the United States Funding from any Provider in such
principles, such as those (i) prescribed Agency for International Development fiscal year.
by the International Accounting (the ‘‘Inspector General’’), and as (v) Corrective Actions. The
Standards Committee (an affiliate of the approved by MCC, to conduct such Government shall use its best efforts to
International Federation of annual audits. Such audits shall be ensure that Covered Providers take,
Accountants) or (ii) then prevailing in performed in accordance with such where necessary, appropriate and timely
Ghana. Compact Records shall be Audit Guidelines and be subject to corrective actions in response to audits,
maintained for at least five (5) years quality assurance oversight by the consider whether a Covered Provider’s
audit necessitates adjustment of its own (f) Reviews or Evaluations. The Section 3.9 and no MCC Funding,
records, and require each such Covered Government shall conduct, or cause to Accrued Interest, or Program Asset may
Provider to permit independent auditors be conducted, such performance be applied by the Government in
to have access to its records and reviews, data quality reviews, satisfaction of its obligations under this
financial statements as necessary. environmental and social audits, or Section 3.9.
(vi) Audit Reports. The Government program evaluations during the
Compact Term or otherwise and in Section 3.10 Domestic Requirements
shall furnish, or use its best efforts to
cause to be furnished, to MCC an audit accordance with the M&E Plan or as The Government shall proceed in a
report in a form satisfactory to MCC for otherwise agreed in writing by the timely manner to seek ratification of this
each audit required by this Section 3.8, Parties. Compact as necessary or required by the
other than audits arranged for by MCC, (g) Cost of Audits, Reviews or laws of Ghana, or similar domestic
no later than ninety (90) days after the Evaluations. MCC Funding may be used requirement, in order that (a) this
end of the period under audit, or such to fund the costs of any audits, reviews Compact (and any Supplemental
other time as may be agreed by the or evaluations required under this Agreement to which MCC is a party)
Parties from time to time. Compact, including as reflected on shall be given the status of an
(vii) Other Providers. For Providers Exhibit A to Annex II, and in no event international agreement, (b) no laws of
who receive MCC Funding under this shall the Government be responsible for Ghana (other than the Constitution of
Compact pursuant to direct contracts or the costs of any such audits, reviews or Ghana) now or hereafter in effect shall
agreements with MCC, MCC shall evaluations from financial sources other take precedence or prevail over this
include appropriate audit requirements than MCC Funding. Compact (or any Supplemental
in such contracts or agreements and Section 3.9 Insurance; Performance Agreement to which MCC is a party)
shall, on behalf of the Government, Guarantees during the Compact Term (or a longer
unless otherwise agreed by the Parties, period to the extent provisions of this
The Government shall, to MCC’s Compact remain in force following the
conduct the follow-up activities with
satisfaction, insure or cause to be expiration of the Compact Term
regard to the audit reports furnished insured all Program Assets and shall
pursuant to such requirements. pursuant to Section 5.13) and (c) each
obtain or cause to be obtained such
(viii) Audit by MCC. MCC retains the of the provisions of this Compact (and
other appropriate insurance and other
right to perform, or cause to be each of the provisions of any
protections to cover against risks or
performed, the audits required under Supplemental Agreement to which MCC
liabilities associated with the operations
this Section 3.8 by utilizing MCC is a party) is valid, binding and in full
of the Program, including by requiring
Funding or other resources available to force and effect under the laws of
Providers to obtain adequate insurance
MCC for this purpose, and to audit, Ghana. The Government shall initiate
and post adequate performance bonds or
conduct a financial review, or otherwise such process promptly after the
other guarantees. MiDA or the
ensure accountability of any Provider or conclusion of this Compact.
Implementing Entity, as applicable,
any other third party receiving MCC shall be named as the payee on any such Notwithstanding anything to the
Funding, regardless of the requirements insurance and the beneficiary of any contrary in this Compact, this Section
of this Section 3.8. such guarantee, including performance 3.10 shall provisionally apply prior to
(e) Application to Providers. The bonds, to the extent permissible under Entry into Force.
Government shall include, or ensure the applicable laws unless otherwise agreed Section 3.11 No Conflict
inclusion of, at a minimum, the by the Parties. MCC, and to the extent
requirements of: it is not named as the insured party, The Government shall undertake not
(i) Paragraphs (a), (b), (c), (d)(ii), MiDA shall be named as additional to enter into any agreement in conflict
(d)(iii), (d)(v), (d)(vi), and (d)(viii) of this insureds on any such insurance or other with this Compact or any Supplemental
Section 3.8 into all Supplemental guarantee, to the extent permissible Agreement during the Compact Term.
Agreements between the Government, under applicable laws unless otherwise Section 3.12 Reports
any Government Affiliate, any Permitted agreed by the Parties. The Government
Designee or any of their respective shall ensure that any proceeds from The Government shall provide, or
directors, officers, employees, Affiliates, claims paid under such insurance or cause to be provided, to MCC at least on
contractors, sub-contractors, grantees, any other form of guarantee shall be each anniversary of the Entry into Force
sub-grantees, representatives or agents used to replace or repair any loss of (or such other anniversary agreed by the
(each, a ‘‘Government Party’’), on the Program Assets or to pursue the Parties in writing) and otherwise within
one hand, and a Covered Provider that procurement of the covered goods, thirty (30) days of any written request
is not a non-profit organization services, works, or otherwise; provided, by MCC, or as otherwise agreed in
domiciled in the United States, on the however, at MCC’s election, such writing by the Parties, the following
other hand; proceeds shall be deposited in a information:
(ii) Paragraphs (a), (b), (c), (d)(ii), and Permitted Account as designated by (a) The name of each entity to which
(d)(viii) of this Section 3.8 into all MiDA and acceptable to MCC or as MCC Funding has been provided;
Supplemental Agreements between a otherwise directed by MCC. To the (b) The amount of MCC Funding
Government Party and a Provider that extent MiDA is held liable under any provided to such entity;
does not meet the definition of a indemnification or other similar (c) A description of the Program and
Covered Provider; and provision of any agreement between each Project funded in furtherance of
(iii) Paragraphs (a), (b), (c), (d)(ii), MiDA, on the one hand, and any other this Compact, including:
(d)(v) and (d)(viii) of this Section 3.8 Provider or other third party, on the (i) A statement of whether the
into all Supplemental Agreements other hand, the Government shall pay in Program or any Project was solicited or
between a Government Party and a full on behalf of MiDA any such unsolicited; and
Covered Provider that is a non-profit obligation; provided, further, the (ii) A detailed description of the
organization domiciled in the United Government shall apply national funds objectives and measures for results of
States. to satisfy its obligations under this the Program or Project;
(d) The progress made by Ghana and conditions that will be included in the Principal Representative or any such
toward achieving the Compact Goal and any such Supplemental Agreement or Additional Representative.
Objectives; other documents that have not been (h) The Government has not engaged
(e) A description of the extent to entered into or effective as of the Entry subsequent to the conclusion of this
which MCC Funding has been effective into Force (the ‘‘Supplemental Compact in any action or omission
in helping Ghana to achieve the Agreement Term Sheets’’). inconsistent with the MCA Eligibility
Compact Goal and Objectives; (e) The Government shall deliver a Criteria, as determined by MCC in its
(f) A description of the coordination written statement as to the incumbency sole discretion.
of MCC Funding with other United and specimen signature of the Principal
Section 4.2 Conditions Precedent to
States foreign assistance and other Representative and each Additional
MCC Disbursements or Re-
related trade policies; Representative of the Government
Disbursements
(g) A description of the coordination executing any document under this
of MCC Funding with assistance Compact, such written statement to be Prior to, and as condition precedent
provided by other donor countries; signed by a duly authorized official of to, any MCC Disbursement or Re-
(h) Any report, document or filing the Government other than the Principal Disbursement, the Government shall
that the Government, any Government Representative or any such Additional satisfy, or ensure the satisfaction of, all
Affiliate or any Permitted Designee Representative. applicable conditions precedent in the
submits to any government body in (f) The Government shall deliver a Disbursement Agreement.
connection with this Compact; certificate signed and dated by the Article V. Final Clauses
(i) Any report or document required Principal Representative of the
to be delivered to MCC under the Government, or such other duly Section 5.1 Communications
Environmental Guidelines, any Audit authorized representative of the Unless otherwise expressly stated in
Plan, or any Implementation Document; Government acceptable to MCC, that: this Compact or otherwise agreed in
and (i) Certifies the Government has writing by the Parties, any notice,
(j) Any other report, document or completed all of its domestic certificate, request, report, document or
information requested by MCC or requirements in order that (1) this other communication required,
required by this Compact or any Compact (and any Supplemental permitted, or submitted by either Party
Supplemental Agreement between the Agreement to which MCC is a party) to the other under this Compact shall be
Parties. shall be given the status of an (a) in writing, (b) in English and (c)
international agreement, (2) no laws of deemed duly given: (i) upon personal
Article IV. Conditions Precedent; Ghana (other than the Constitution of delivery to the Party to be notified; (ii)
Deliveries Ghana) now or hereafter in effect shall when sent by confirmed facsimile or
Section 4.1 Conditions Prior to the take precedence or prevail over this electronic mail, if sent during normal
Entry into Force and Deliveries Compact (or any Supplemental business hours of the recipient Party, if
Agreement to which MCC is a party) not, then on the next business day; or
As conditions precedent to the Entry during the Compact Term (or a longer (iii) three (3) business days after deposit
Into Force, the Parties shall satisfy the period to the extent provisions of this with an internationally recognized
conditions set forth in this Section 4.1. Compact remain in force following the overnight courier, specifying next day
(a) The Government (or a mutually Compact Term pursuant to Section 5.13) delivery, with written verification of
acceptable Government Affiliate), a and (3) each of the provisions of this receipt to the Party to be notified at the
Permitted Designee, and MCC shall Compact (and each of the provisions of address indicated below, or at such
excute a Disbursement Agreement, any Supplemental Agreement to which other address as such Party may
which agreement shall be in full force MCC is a party) shall be valid, binding designate:
and effects as of the Entry into Force. and in full force and effect under the
(b) The Government (or a mutually To MCC:
laws of Ghana; and
acceptable Government Affiliate), a (ii) Attaches thereto, and certifies that Millennium Challenge Corporation,
Permitted Designee, and MCC shall such attachments are, true, correct and Attention: Vice President for Operations
execute a Procurement Agreement, complete copies of all decrees, (with a copy to the Vice President and
which agreement shall be in full force legislation, regulations or other General Counsel), 875 Fifteenth Street,
and effect as of the Entry into Force. governmental documents relating to its NW., Washington, DC 20005, United
(c) The Government (or a mutually domestic requirements for this Compact States of America, Facsimile: (202) 521–
acceptable Government Affiliate), a to enter into force and the satisfaction 3700, Phone: (202) 521–3600, E-mail:
Permitted Designee, and MCC shall of Section 3.10 (including any VPOperations@mcc.gov (Vice President
execute a governance agreement (the requirements under section 96 of the for Operations);
‘‘Governance Agreement’’), which Ghana Public Procurement Act, 2003 VPGeneralCounsel@mcc.gov (Vice
agreement shall be in full force and (Act 663) to cause the Procurement President and General Counsel).
effects as of the Entry into Force. Guidelines (as defined in Section 3.6(a)) To the Government:
(d)(i) The Government shall deliver to apply to the transactions Ministry of Public Sector Reform,
one or more of the Supplement contemplated by this Compact, which Attention: Minister of Public Sector
Agreements or other documents MCC may post on its website or Reform, Private Mail Bag, Stadium Post
identified on Exhibit B attached hereto, otherwise make publicly available. Office, Accra, Ghana, Facsimile: (233–
which agreements or other documents (g) MCC shall deliver a written 21) 670295, Phone: (233–21) 684086, E-
shall be fully executed by the parties statement as to the incumbency and mail: nduom@africaonline.com.gh.
thereto and in full force and effect, or specimen signature of the Principal With a copy to MiDA:
(ii) the Government (or a mutually Representative and each Additional At an address, and to the attention of
acceptable Government Affiliate), a Representative of MCC executing any the person, to be designated in writing
Permitted Designee, and MCC shall document under this Compact such to MCC by the Government.
execute one or more term sheets that set written statement to be signed by a duly Notwithstanding the foregoing, any
forth the material and principal terms authorized official of MCC other than audit report delivered pursuant to
Section 3.8, if delivered by facsimile or be in violation of applicable law or Funding or using Program Assets, or any
electronic mail, shall be followed by an United States Government policy, of their respective directors, officers,
original in overnight express mail. This whether now or hereafter in effect; employees, Affiliates, contractors, sub-
Section 5.1 shall not apply to the (ii) The Government, any Provider, or contractors, grantee, sub-grantee,
exchange of letters contemplated in any other third party receiving MCC representatives or agents, is found to
Section 1.3 or any amendments under Funding or using Program Assets is have been convicted of a narcotics
Section 5.3. engaged in activities that are contrary to offense or to have been engaged in drug
the national security interests of the trafficking;
Section 5.2 Representatives United States; (ix) Any MCC Funding or Program
Unless otherwise agreed in writing by (iii) The Government or any Permitted Assets are applied, directly or
the Parties, for all purposes relevant to Designee has committed an act or indirectly, to the provision of resources
this Compact, the Government shall be omission or an event has occurred that and support to, individuals and
represented by the individual holding would render Ghana ineligible to organizations associated with terrorism,
the position of, or acting as, Minister of receive United States economic sex trafficking or prostitution;
Public Sector Reform of Ghana, and assistance under Part I of the Foreign (x) An event or condition of any
MCC shall be represented by the Assistance Act of 1961, as amended (22 character has occurred that: (A)
individual holding the position of, or U.S.C 2151 et seq.), by reason of the Materially and adversely affects, or is
acting as, Vice President for Operations application of any provision of the likely to materially and adversely affect,
(each, a ‘‘Principal Representative’’), Foreign Assistance Act of 1961 or any the ability of the Government or any
each of whom, by written notice to the other provision of law; other party to effectively implement, or
other Party, may designate one or more (iv) The Government or any Permitted ensure the effective implementation of,
additional representatives (each, an Designee has engaged in a pattern of the Program or any Project or otherwise
‘‘Additional Representative’’) for all actions or omissions inconsistent with to carry out its responsibilities or
purposes other than signing the MCA Eligibility Criteria, or there has obligations under or in furtherance of
amendments to this Compact. The occurred a significant decline in the this Compact or any Supplemental
names of the Principal Representative performance of Ghana on one or more Agreement or to perform its obligations
and any Additional Representative of of the eligibility indicators contained under or in furtherance of this Compact
each of the Parties shall be provided, therein; or any Supplemental Agreement or to
with specimen signatures, to the other (v) The Government or any Provider exercise its rights thereunder; (B) makes
Party, and the Parties may accept as has materially breached one or more of it improbable that the Objectives will be
duly authorized any instrument signed its assurances or any covenants, achieved during the Compact Term; (C)
by such representatives relating to the obligations or responsibilities under this materially and adversely affects the
implementation of this Compact, until Compact or any Supplemental Program Assets or any Permitted
receipt of written notice of revocation of Agreement; Account; or (D) constitutes misconduct
their authority. A Party may change its (vi) An audit, review, report or any injurious to MCC, or constitutes a fraud
Principal Representative to a new other document delivered in furtherance or a felony, by the Government, any
representative of equivalent or higher of the Compact or any Supplemental Government Affiliate, Permitted
rank upon written notice to the other Agreement or any other evidence Designee or Provider, or any officer,
Party, which notice shall include the reveals that actual expenditures for the director, employee, agent,
specimen signature of the new Principal Program, any Project or any Project representative, Affiliate, contractor,
Representative. Activity were greater than the projected grantee, subcontractor or sub-grantee of
expenditure for such activities any of the foregoing;
Section 5.3 Amendments identified in the applicable Detailed (xi) The Government, any Permitted
The Parties may amend this Compact Budget or are projected to be greater Designee or Provider has taken any
only by a written agreement signed by than projected expenditures for such action or omission or engaged in any
the Principal Representatives of the activities; activity in violation of, or inconsistent
Parties and subject to the respective (vii) If the Government (A) materially with, the requirements of this Compact
domestic approval requirements to reallocates or reduces the allocation in or any Supplemental Agreement to
which this Compact was subject. its national budget or any other which the Government or any Permitted
Government budget of the normal and Designee or Provider is a party;
Section 5.4 Termination; Suspension expected resources that the Government (xii) There has occurred a failure to
(a) Subject to Section 2.5, either Party would have otherwise received or meet a condition precedent or series of
may terminate this Compact in its budgeted, from external or domestic conditions precedent or any other
entirety by giving the other Party thirty sources, for the activities contemplated requirements or conditions in
(30) days’ written notice. herein, (B) fails to contribute or provide connection with MCC Disbursement as
(b) Notwithstanding any other the amount, level, type and quality of set out in and in accordance with any
provision of this Compact, including resources required to carry out Supplemental Agreement between the
Section 2.1, or any Supplemental effectively the Government Parties; or
Agreement between the Parties, subject Responsibilities or any other (xiii) Any MCC Funding, Accrued
to Section 2.5, MCC may suspend or responsibilities or obligations of the Interest or Program Asset becomes
terminate this Compact or MCC Government under or in furtherance of subject to a Lien without the prior
Funding, in whole or in part, and any this Compact, or (C) fails to pay any of approval of MCC, and the Government
obligation or sub-obligation related its obligations as required under this fails to obtain the release of such Lien
thereto, upon giving the Government Compact or any Supplemental (at its own expense and not with MCC
written notice, if MCC determines, in its Agreement, including such obligations Funding, Accrued Interest, or Program
sole discretion, that: which shall be paid solely out of Assets) within thirty (30) days after the
(i) Any use or proposed use of MCC national funds; imposition of such Lien.
Funding or Program Assets or continued (viii) If the Government, any Provider, (c) MCC may reinstate any suspended
implementation of the Compact would or any other third party receiving MCC or terminated MCC Funding under this
Compact or any Supplemental (g) Upon the full or partial suspension (ii) Any Attachments.
Agreement if MCC determines, in its or termination of this Compact or any (b) In the event of any conflict or
sole discretion, that the Government or MCC Funding, MCC may, at its expense, inconsistency between this Compact
other relevant party has demonstrated a direct that title to Program Assets be and any Supplemental Agreement
commitment to correcting each transferred to MCC if such Program between the Parties, the terms of this
condition for which MCC Funding was Assets are in a deliverable state; Compact shall prevail. In the event of
suspended or terminated. provided, for any Program Asset(s) any conflict or inconsistency between
(d) The authority to suspend or partially purchased or funded (directly any Supplemental Agreement between
terminate this Compact or any MCC or indirectly) by MCC Funding, the the Parties and any other Supplemental
Funding under this Section 5.4 includes Government shall reimburse to a United Agreement, the terms of the
the authority to suspend or terminate States Government account designated Supplemental Agreement between the
any obligations or sub-obligations by MCC the cash equivalent of the Parties shall prevail. In the event of any
relating to MCC Funding under any portion of the value of such Program conflict or inconsistency between
Supplemental Agreement without any Asset(s), such value as determined by Supplemental Agreements between any
liability to MCC whatsoever. MCC. parties, the terms of a more recently
(e) All MCC Disbursements and Re- (h) Prior to the expiration of this executed Supplemental Agreement
Disbursements shall cease upon Compact or upon termination of this between such parties shall take
expiration, suspension, or termination Compact, the Parties shall consult in precedence over a previously executed
of this Compact; provided, however, (i) good faith with a view to reaching an Supplemental Agreement between such
reasonable expenditures for goods, agreement in writing on (i) the post- parties. In the event of any
services and works that are properly Compact Term treatment of MiDA, (ii) inconsistency between a Supplemental
incurred under or in furtherance of this the process for ensuring the refunds of Agreement between the Parties and any
Compact before such expiration, MCC Disbursements that have not yet Implementation Document, the terms of
suspension or termination of this been released from a Permitted Account the relevant Supplemental Agreement
Compact and (ii) reasonable through a valid Re-Disbursement or shall prevail.
expenditures for goods and services otherwise committed in accordance
(including certain administrative Section 5.8 Indemnification
with Section 5.4(e), or (iii) any other
expenses) properly incurred within one matter related to the winding up of the The Government shall indemnify and
hundred and twenty (120) days after Program and this Compact. hold MCC and any MCC officer,
such expiration, suspension or director, employee, Affiliate, contractor,
termination of the Compact in Section 5.5 Privileges and Immunities agent or representative (each of MCC
connection with the winding up of the MCC is an agency of the Government and any such persons, an ‘‘MCC
Program may be paid from MCC of the United States of America and its Indemnified Party’’) harmless from and
Funding, provided, further, that, in personnel assigned to Ghana will be against, and shall compensate,
cases described in clauses (i) and (ii), notified pursuant to the Vienna reimburse and pay such MCC
the request for such payment shall be Convention on Diplomatic Relations as Indemnified Party for, any liability or
(A) properly submitted within ninety members of the mission of the Embassy other damages which (a) are directly or
(90) days after such expiration, of the United States of America. The indirectly suffered or incurred by such
suspension or termination of the Government shall ensure that any MCC Indemnified Party, or to which any
Compact and (B) subject to the prior personnel of MCC so notified, including MCC Indemnified Party may otherwise
written consent of MCC. individuals detailed to or contracted by become subject, regardless of whether or
(f) Other than the payments permitted MCC, and the members of the families not such damages relate to any third-
pursuant to Section 5.4(e), in the event of such personnel, while such personnel party claim, and (b) arise from or as a
of the suspension or termination of this are performing duties in Ghana, shall result of the negligence or willful
Compact or any Supplemental enjoy the privileges and immunities that misconduct of the Government, any
Agreement, in whole or in part, the are enjoyed by a member of the United Government Affiliate, MiDA or any
Government, at MCC’s sole discretion, States Foreign Service, or the family of Permitted Designee, directly or
shall suspend, for the period of the a member of the United States Foreign indirectly connected with, any activities
suspension, or terminate, or ensure the Service so notified, as appropriate, of (including acts or omissions)
suspension or termination of, as comparable rank and salary of such undertaken in furtherance of this
applicable, any obligation or sub- personnel, if such personnel or the Compact; provided, however, the
obligation of the Parties to provide members of the families of such Government shall apply national funds
financial or other resources under this personnel are not a national of, or to satisfy its obligations under this
Compact or any Supplemental permanently resident in, Ghana. Section 5.8 and no MCC Funding,
Agreement, or to the suspended or Accrued Interest, or Program Asset may
terminated portion of this Compact or Section 5.6 Attachments be applied by the Government in
such Supplemental Agreement, as Any annex, schedule, exhibit, table, satisfaction of its obligations under this
applicable. In the event of such appendix or other attachment expressly Section 5.8.
suspension or termination, the attached hereto (collectively, the
Government shall use its best efforts to ‘‘Attachments’’) is incorporated herein Section 5.9 Headings
suspend or terminate, or ensure the by reference and shall constitute an The Section and Subsection headings
suspension or termination of, as integral part of this Compact. used in this Compact are included for
applicable, all such noncancelable convenience only and are not to be
commitments related to the suspended Section 5.7 Inconsistencies
considered in construing or interpreting

or terminated MCC Funding. Any (a) Conflicts or inconsistencies this Compact.
portion of this Compact or any such between any parts of this Compact shall
Supplemental Agreement that is not be resolved by applying the following Section 5.10 Interpretation
suspended or terminated shall remain in descending order of precedence: (a) Any reference to the term
full force and effect. (i) Articles I through V, and ‘‘including’’ in this Compact shall be
deemed to mean ‘‘including without Government after the Compact Term Section 5.16 Language
limitation’’ except as expressly provided shall survive the termination or This Compact is prepared in English
otherwise. expiration of this Compact and expire in and in the event of any ambiguity or
(b) Any reference to activities accordance with their respective terms. conflict between this official English
undertaken ‘‘in furtherance of this Notwithstanding the termination or version and any other version translated
Compact’’ or similar language shall expiration of this Compact, the into any language for the convenience of
include activities undertaken by the following provisions shall remain in the Parties, this official English version
Government, any Government Affiliate, force: Sections 2.2, 2.3, 2.5, 3.2, 3.3, 3.4, shall prevail.
any Permitted Designee, any Provider or 3.5, 3.8, 3.9 (for one year), 3.12, 5.1, 5.2,
any other third party receiving MCC 5.4(d), 5.4(e) (for one hundred and Section 5.17 Publicity; Information
Funding involved in carrying out the twenty (120) days), 5.4(f), 5.4(g), 5.4(h), and Marking
purposes of this Compact or any 5.5, 5.6, 5.7, 5.8, 5.9, 5.10, 5.11, 5.12, The Government shall give
Supplemental Agreement, including this Section 5.13, 5.14, and 5.15. appropriate publicity to this Compact as
their respective directors, officers, Section 5.14 Consultation a program to which the United States,
employees, Affiliates, contractors, sub- through MCC, has contributed,
contractors, grantees, sub-grantees, Either Party may, at any time, request
including by posting this Compact, and
representatives or agents, whether consultations relating to the
any amendments thereto, on the Web
pursuant to the terms of this Compact, interpretation or implementation of this
site operated by MiDA (‘‘MiDA Web
any Supplemental Agreement or Compact or any Supplemental
Agreement between the Parties. Such site’’), identifying Program activity sites,
otherwise. and marking Program Assets; provided,
(c) References to ‘‘day’’ or ‘‘days’’ consultations shall begin at the earliest
possible date. The request for any announcement, press release or
shall be calendar days unless provided statement regarding MCC or the fact that
otherwise. consultations shall designate a
representative for the requesting Party MCC is funding the Program or any
(d) Defined terms importing the other publicity materials referencing
singular also include the plural, and with the authority to enter consultations
and the other Party shall endeavor to MCC, including the publicity described
vice versa. in this Section 5.17, shall be subject to
designate a representative of equal or
Section 5.11 Signatures comparable rank. If such representatives prior approval by MCC and shall be
A signature to this Compact or an are unable to resolve the matter within consistent with any instructions
amendment to this Compact pursuant to twenty (20) days from the provided by MCC from time to time in
Section 5.3 shall be delivered only as an commencement of the consultations, relevant Implementation Letters. Upon
original signature. With respect to all then each Party shall forward the the termination or expiration of this
other signatures, a signature delivered consultation to the Principal Compact, MCC may request the removal
by facsimile or electronic mail in Representative or such other of, and the Government shall, upon
accordance with Section 5.1 shall be representative of comparable or higher such request, remove, or cause the
deemed an original signature, and the rank. The consultations shall last no removal of, any such markings and any
Parties hereby waive any objection to longer than forty five (45) days from references to MCC in any publicity
such signature or to the validity of the date of commencement. If the matter is materials or on the MiDA Web site.
underlying document, certificate, not resolved within such time period, MCC may post this Compact, and any
notice, instrument or agreement on the either Party may terminate this Compact amendments thereto, on the Web site of
basis of the signature’s legal effect, pursuant to Section 5.4(a). The Parties MCC. MCC shall have the right to use
validity or enforceability solely because shall enter any such consultations any information or data provided in any
it is in facsimile or electronic form. guided by the principle of achieving the report or document provided to MCC for
Without limiting the foregoing, a Compact Goal in a timely and cost- the purpose of satisfying MCC reporting
signature on an audit report or a effective manner and by the principles requirements or in any other manner.
signature evidencing any modification of international law. Any dispute arising In Witness Whereof, the undersigned,
identified in Sections 2(b) and (4)(a)(iv) under or related to this Compact shall duly authorized by their respective
of Annex I, Section 4 of Annex II or be determined exclusively through the governments, have signed this Compact
Section 5(c) Annex III shall be followed consultation mechanism set forth in this this 1st day of August, 2006 and this
by an original in overnight express mail. Section 5.14. Compact shall enter into force in
Such signature shall be accepted by the accordance with Section 1.3.
Section 5.15 MCC Status
receiving Party as an original signature Done at Washington, DC, in English.
and shall be binding on the Party MCC is a United States Government For the United States of America, acting
delivering such signature. corporation acting on behalf of the through the Millennium Challenge
United States Government in the Corporation,
Section 5.12 Designation implementation of this Compact. As Name: John J. Danilovich,
MCC may designate any Affiliate, such, MCC has no liability under this Title: Chief Executive Officer.
agent, or representative to implement, in Compact, is immune from any action or For the Government of the Republic of
whole or in part, its obligations, and proceeding arising under or relating to Ghana,
exercise any of its rights, under this this Compact and the Government Name: Dr. P. Kwesi Nduom,
Compact or any Supplemental hereby waives and releases all claims Title: Minister of Public Sector Reform.
Agreement between the Parties. MCC related to any such liability. In matters
arising under or relating to this Exhibit A—Definitions
shall inform the Government of any
Compact, MCC is not subject to the The following compendium of
such designation.
jurisdiction of the courts or other body capitalized terms that are used herein is
Section 5.13 Survival of Ghana or any other jurisdiction and provided for the convenience of the
Any Government Responsibilities, all disputes arising under or relating to reader. To the extent that there is a
covenants, or obligations or other this Compact shall be determined in conflict or inconsistency between the
responsibilities to be performed by the accordance with Section 5.14. definitions in this Exhibit A and the
definitions elsewhere in the text of this Community Services Activity shall Final Evaluation shall have the
Compact, the definition elsewhere in have the meaning set forth in Section meaning set forth in Section 3(a) of
this Compact shall prevail over the 2(b) of Schedule 3 to Annex I. Annex III.
definition in this Exhibit A. Compact shall have the meaning set Financial Plan Annex shall have the
Accrued Interest shall have the forth in the Preamble. meaning set forth in the Preamble to
meaning set forth in Section 2.1(c). Compact Goal shall have the meaning Annex II.
Act shall have the meaning set forth set forth in Section 1.1. Financial Services Activity shall have
in Section 2.1(a)(iii). Compact Goal Indicator shall have the the meaning set forth in Section 2(c) of
Additional Representative shall have meaning set forth in Section 2(a) of Schedule 3 to Annex I.
the meaning set forth in Section 5.2. Annex III. Fiscal Accountability Plan shall have
ADR shall have the meaning set forth Compact Implementation Funding the meaning set forth in Section 4(c) of
in Section 2(c)(ii) of Schedule 1 to shall have the meaning set forth in Annex I.
Annex I. Section 2.1(a)(iii). Fiscal Agent shall have the meaning
Affiliate means the affiliate of a party, Compact Records shall have the set forth in Section 3(g) of Annex I.
which is a person or entity that controls, meaning set forth in Section 3.8(b). Fiscal Agent Agreement shall have the
is controlled by, or is under the same Compact Reports shall have the meaning set forth in Section 3(g) of
control as the party in question, whether meaning set forth in Section Annex I.
by ownership or by voting, financial or 3(d)(ii)(3)(C) of Annex I. GDP shall have the meaning set forth
other power or means of influence. Compact Term shall have the in Section 1(a) of Annex I.
References to Affiliate herein shall meaning set forth in Section 1.3. GHA shall have the meaning set forth
include any of their respective directors, Covered Provider shall have the in Section 6 of Schedule 2 to Annex I.
officers, employees, affiliates, meaning set forth in Section 3.8(d)(iv). Ghana means the Republic of Ghana.
contractors, sub-contractors, grantees, Credit Activity shall have the meaning Governance Agreement shall have the
sub-grantees, representatives, and set forth in Section 2(e) of Schedule 1 meaning set forth in Section 4.1(c).
agents. to Annex I. Governing Document shall have the
Afram Basin Zone shall have the DACF shall have the meaning set forth meaning set forth in Section 3(c)(i)(9) of
meaning set forth in Section 1(a) of in Section 2(b)(ii) of Schedule 3 to Annex I.
Annex I. Annex I. Government shall have the meaning
Agriculture Project shall have the Designated Rights and set forth in the Preamble.
meaning set forth in the Preamble to Responsibilities shall have the meaning Government Affiliate means an
Schedule 1 to Annex I. set forth in Section 3.2(c). Affiliate, ministry, bureau, department,
Agriculture Project Objective shall Detailed Budget shall have the agency, government, corporation or any
have the meaning set forth in Section meaning set forth in Section 4(a)(ii) of other entity chartered or established by
1.1(a). Annex I. the Government. References to
Attachments shall have the meaning DFID shall have the meaning set forth Government Affiliate shall include any
set forth in Section 5.6. in Section 4 of Schedule 2 to Annex I. of their respective directors, officers,
Audit Guidelines shall have the DFR shall have the meaning set forth employees, affiliates, contractors, sub-
meaning set forth in Section 3.8(d)(i). in Section 6 of Schedule 2 to Annex I. contractors, grantees, sub-grantees,
Audit Plan shall have the meaning set Disbursement Agreement shall have representatives, and agents.
forth in Section 3.8(d)(iii). the meaning set forth in the Preamble to Government Member shall have the
Auditor shall have the meaning set Annex I. meaning set forth in Section
forth in Section 3(h) of Annex I. DUR shall have the meaning set forth 3(d)(ii)(2)(A) of Annex I.
Auditor/Reviewer Agreement shall in Section 6 of Schedule 2 to Annex I. Government Party shall have the
have the meaning set forth in Section EIA shall have the meaning set forth meaning set forth in Section 3.8(e)(i).
3(h) of Annex I. in Section 6(b) of Annex I. Government Responsibilities shall
Bank(s) means any bank holding a EMP shall have the meaning set forth have the meaning set forth in Section
Permitted Account. in Section 6(b) of Annex I. 3.2(a).
Bank Agreement shall have the eNGO Invitee shall have the meaning GPRS shall have the meaning set forth
meaning set forth in Section 4(d) of set forth in Section 3(d)(ii)(2)(F) of in Section 1(a) of Annex I.
Annex I. Annex I. GRF shall have the meaning set forth
Beneficiaries shall have the meaning Entry into Force shall have the in Section 6 of Schedule 2 to Annex I.
set forth in Section 2(a) of Annex III. meaning set forth in Section 1.3. Implementation Document shall have
Bilateral Agreement shall have the Environmental Guidelines shall have the meaning set forth in Section 3(a) of
meaning set forth in Section 2.6. the meaning set forth in Section 2.3(d). Annex I.
Board shall have the meaning set forth EU shall have the meaning set forth in Implementation Letter shall have the
in Section 3(d)(i)(2) of Annex I. Section 1 of Schedule 1 to Annex I. meaning set forth in Section 3.5(a).
CEO shall have the meaning set forth Evaluation Component shall have the Implementing Entity shall have the
in Section 3(d)(iii)(2) of Annex I. meaning set forth in Section 1 of Annex meaning set forth in Section 3(f) of
Chair shall have the meaning set forth III. Annex I.
in Section 3(d)(ii)(2)(A)(i) of Annex I. Exempt Uses shall have the meaning Implementing Entity Agreement shall
Civil Member shall have the meaning set forth in Section 2.3(e)(ii). have the meaning set forth in Section
set forth in Section 3(d)(ii)(2)(A) of FBOs shall have the meaning set forth 3(f) of Annex I.
Annex I. in Section 2 of Schedule 1 to Annex I. Indicators shall have the meaning set
Civil Society Stakeholders shall have Feeder Roads Activity shall have the forth in Section 2(a) of Annex III.
the meaning set forth in Section 3(e)(iv) meaning set forth in Section 2(f) of Inspector General shall have the
of Annex I. Schedule 1 to Annex I. meaning set forth in Section 3.8(d)(i).
Commercial Training Activity shall Ferry Activity shall have the meaning Interim Evaluations shall have the
have the meaning set forth in Section set forth in Section 2(c) of Schedule 2 meaning set forth in Section 3(b) of
2(a) of Schedule 1 to Annex I. to Annex I. Annex III.
Intervention Zone shall have the N1 Activity shall have the meaning set Project shall have the meaning set
meaning set forth in Section 1(a) of forth in Section 2(a) of Schedule 2 to forth in Section 1.2.
Annex I. Annex I. Project Activity shall have the
IPPC shall have the meaning set forth N1 Highway shall have the meaning meaning set forth in Section 2(b) of
in Section 2(d) of Schedule 1 to Annex set forth in Section 2 of Schedule 2 to Annex I.
I. Annex I. Project Objective shall have the
Irrigation Activity shall have the NGOs shall have the meaning set forth meaning set forth in Section 1.1.
meaning set forth in Section 2(b) of in Section 1(b) of Annex I. Proposal shall have the meaning set
Schedule 1 to Annex I. Northern Zone shall have the meaning forth in the Recitals.
Land Activity shall have the meaning set forth in Section 1(a) of Annex I. Provider shall have the meaning set
set forth in Section 2(c) of Schedule 1 Objective(s) shall have the meaning forth in Section 2.4(b).
to Annex I. set forth in Section 1.1. RAP shall have the meaning set forth
LAP shall have the meaning set forth Objective Indicator shall have the in Section 6(b) of Annex I.
in Section 2(c) of Schedule 1 to Annex meaning set forth in Section 2(a) of Re-Disbursement shall have the
I. Annex III. meaning set forth in Section 2.1(b)(ii).
Lien shall have the meaning set forth Observer shall have the meaning set Reviewer shall have the meaning set
in Section 2.3(g). forth in Section 3(d)(ii)(2)(B) of Annex forth in Section 3(h) of Annex I.
Local Account shall have the meaning I. RICU shall have the meaning set forth
set forth in Section 4(d)(ii) of Annex I. Officer shall have the meaning set
M&E shall have the meaning set forth in Section 2(b)(i) of Schedule 3 to
forth in Section 3(d)(iii)(1) of Annex I. Annex I.
in Section 3 of Annex I. Outcome shall have the meaning set
M&E Annex shall have the meaning RSDP shall have the meaning set forth
forth in Section 2(a) of Annex III. in Section 1 of Schedule 2 to Annex I.
set forth in the Preamble to Annex III. Outcome Indicator shall have the
M&E Plan shall have the meaning set Rural Development Project shall have
meaning set forth in Section 2(a) of the meaning set forth in the Preamble to
forth in Section 2(e) of Annex I. Annex III.
Management shall have the meaning Schedule 3 to Annex I.
Party or Parties shall have the Rural Development Project Objective
set forth in Section 3(d)(i)(2) of Annex meaning set forth in the Preamble.
I. shall have the meaning set forth in
Permitted Account(s) shall have the Section 1.1(c).
Material Agreement shall have the meaning set forth in Section 4(d) of
meaning set forth in Section 3(c)(i)(4) of SEA shall have the meaning set forth
Annex I. in Section 6(a) of Annex I.
Annex I. Permitted Designee shall have the
Material Re-Disbursement shall have SMEs shall have the meaning set forth
meaning set forth in Section 3.2(c).
the meaning set forth in Section in Section 2(a)(ii) of Schedule 1 of
Pledge shall have the meaning set
3(c)(i)(7) of Annex I. Annex I.
forth in Section 3(c)(i)(8) of Annex I.
MCA shall have the meaning set forth Southern Zone shall have the
Post-Harvest Activity shall have the
in the Recitals. meaning set forth in Section 1(a) of
MCA Eligibility Criteria shall have the meaning set forth in Section 2(d) of
Schedule 1 to Annex I. Annex I.
meaning set forth in Section 3.7. Special Account shall have the
MCC shall have the meaning set forth PPB shall have the meaning set forth
in Section 4 of Schedule 3 to Annex I. meaning set forth in Section 4(d)(i) of
in the Preamble. Annex I.
MCC Disbursement shall have the PRDs shall have the meaning set forth
in Section 2(c)(ii) of Schedule 1 to Supplemental Agreement shall have
meaning set forth in Section 2.1(b)(i). the meaning set forth in Section 3.5(b).
MCC Disbursement Request shall have Annex I.
Principal Representative shall have Supplemental Agreement between the
the meaning set forth in Section 4(b) of Parties means any agreement between
Annex I. the meaning set forth in Section 5.2.
Procurement Agent shall have the MCC on the one hand, and the
MCC Funding shall have the meaning Government, any Government Affiliate
set forth in Section 2.1(a). meaning set forth in Section 3(i) of
Annex I. or Permitted Designee on the other
MCC Indemnified Party shall have the
Procurement Agent Agreement shall hand.
meaning set forth in Section 5.8.
MCC Representative shall have the have the meaning set forth in Section Supplemental Agreement Term
meaning set forth in Section 3(i) of Annex I. Sheets shall have the meaning set forth
3(d)(ii)(2)(B)(i) of Annex I. Procurement Agreement shall have in Section 4.1(d).
MiDA shall have the meaning set forth the meaning set forth in Section 3.6(a). Target shall have the meaning set
the Preamble to Annex I. Procurement Capacity Activity shall forth in Section 2(a) of Annex III.
MiDA Web site shall have the have the meaning set forth in Section Tax(es) shall have the meaning set
meaning set forth in Section 5.17. 2(a) of Schedule 3 to Annex I. forth in Section 2.3(e)(i).
MOFA shall have the meaning set Procurement Guidelines shall have TIPCEE shall have the meaning set
forth in Section 2(a)(i) of Schedule 1 to the meaning set forth in Section 3.6(a). forth in Section 5 of Schedule 1 to
Annex I. Procurement Plan shall have the Annex I.
Monitoring Component shall have the meaning set forth in Section 3(i) of TQM shall have the meaning set forth
meaning set forth in Section 1 of Annex Annex I. in Section 2 of Schedule 2 to Annex I.
III. Program shall have the meaning set Transportation Project shall have the
MoT shall have the meaning set forth forth in the Recitals. meaning set forth in the Preamble to
in Section 6 of Schedule 2 to Annex I. Program Annex shall have the Schedule 2 to Annex I.
Multi-Year Financial Plan shall have meaning set forth in the Preamble to Transportation Project Objective shall
the meaning set forth in Section 4(a)(i) Annex I. have the meaning set forth in Section
of Annex I. Program Assets shall have the 1.1(b).
Multi-Year Financial Plan Summary meaning set forth in Section 2.3(e)(iii). Trunk Roads Activity shall have the
shall have the meaning set forth in Program Objective shall have the meaning set forth in Section 2(b) of
Section 1 to Annex II. meaning set forth in Section 1.1. Schedule 2 to Annex I.
United States Dollars, US$ or $ shall necessary, and design, in connection third of its population lives in poverty.
have the meaning set forth in Section with the N1 Activity under Section Its gross domestic product (‘‘GDP’’) is
2.1(d). 2(a)(ii)(1) of Schedule 2 of Annex I. growing at about 6% per year. Ghana’s
United States Government means any (f) A feasibility study; and an EIA, an agricultural sector, the backbone of its
branch, agency, bureau, government EMP and a RAP, each as may be economy, plays an important role in the
corporation, government chartered necessary, and design, in connection socio-economic development of the
entity or other body of the Federal with the Trunk Roads Activity under country by ensuring food security for its
government of the United States. Section 2(b)(ii)(2) of Schedule 2 of people, providing raw material for local
USAID shall have the meaning set Annex I. industries and offering employment and
forth in Section 5 of Schedule 1 to (g) A feasibility study; and an EIA, an income for a large portion of its
Annex I. EMP and a RAP, each as may be population.
VLTC shall have the meaning set forth necessary, and design, in connection In 2003, the Government developed,
in Section 2 of Schedule 2 to Annex I. with the Ferry Activity under Section through a broad consultative process,
Work Plan shall have the meaning set 2(c)(vii)(1) of Schedule 2 of Annex I. the Ghana Poverty Reduction Strategy
forth in Section 3(a) of Annex I. (h) Start-up costs such as staff salaries
Zonal Advisory Committee shall have (the ‘‘GPRS’’), a comprehensive
and administrative support expenses of development policy framework to
the meaning set forth in Section 3(e)(i) MiDA (or mutually acceptable
of Annex I. support poverty reduction in Ghana
Government Affiliate) such as rent, over a three-year period from 2003 to
Exhibit B—List of Certain Supplemental computers and other information 2005. The GPRS identified, as one of the
Agreements technology or capital equipment. key strategies for poverty reduction,
The total amount of funds disbursed increasing the production from, and
1. Fiscal Agent Agreement. in accordance with Section 2.1(a)(iii)
2. Procurement Agent Agreement. employment in, the agricultural sector.
3. Bank Agreement. shall not exceed the amount set forth in Specifically, the strategy entailed,
4. Implementing Entity Agreement. Section 2.1(a)(iii). among others, modernizing the
Annex I—Program Description agricultural practices so as to increase
Schedule 2.1(a)(iii)—Compact
Implementation Funding This Annex I to the Compact (the the production of staple crops and to
‘‘Program Annex’’) generally describes encourage additional agro-processing
The Compact Implementation and value-added production of high-
Funding provided pursuant to Section the Program that MCC Funding will
support in Ghana during the Compact value agricultural crops, while at the
2.1(a)(iii) of this Compact shall support same time reforming the land
the following activities: Term and the results to be achieved
from the investment of MCC Funding. acquisition process. The GPRS indicated
(a) Three strategic environmental that such modernization efforts should
assessments, one for each Intervention Prior to any MCC Disbursement or Re-
Disbursement, including for the Projects be supported by developing both
Zone in connection with the transportation and social infrastructure
requirements of Section 6 of Annex I. described herein, MCC, the Government
(or a mutually acceptable Government targeted on certain areas of the country
(b) Development or refinement of FBO
Affiliate) and Millennium Development in order to ensure the enhanced delivery
and staple food and horticulture crop
Authority (‘‘MiDA’’) shall enter into a of educational, health and other social
curriculum (including production of
Supplemental Agreement that (i) further services to such areas.
materials) and related training and
certification of MOFA and private sector specifies the terms and conditions of Consistent with the aims of the GPRS,
extension agents, training in set-up and such MCC Disbursements and Re- the Program consists of a series of
launching of effective technology Disbursements, (ii) is in a form and strategic investments in an effort to
demonstrations, and related substance mutually satisfactory to the modernize Ghana’s agricultural sector,
international tours, all in connection Parties and (iii) is signed by the together with investments in developing
with the Commercial Training Activity Principal Representative of each Party transportation infrastructure and rural
under Section 2(a) of Schedule 1 of (or in the case of a Government Affiliate, institutions in the following three areas
Annex I. the principal representative of such of the country (each, an ‘‘Intervention
(c) Community sensitization and Government Affiliate) and of MiDA (the Zone’’): 1
information gathering, inventorying of ‘‘Disbursement Agreement’’). • The Northern area consisting of the
land rights, and production of Except as specifically provided following five districts: Savelugu
composite maps of community herein, the Parties may amend this Nanton, Tolon Kumbungu, Tamale,
boundaries and parcels in the rural Program Annex only by written West Mamprusi and Karaga (the
areas of Awutu Efutu Senya to pre-test agreement signed by the Principal ‘‘Northern Zone’’);
the first steps in the pilot land Representative of each Party. Each • The Afram Basin area consisting of
registration activity, accompanied by a capitalized term in this Program Annex the following six districts: Ejura
gender consultant to provide guidance shall have the same meaning given such Sekyedumasi, Kwahu South,
on gender issues and women’s term elsewhere in this Compact. Unless Fanteakwa, Afram Plains, Sekyere East
participation, and coordinated by a otherwise expressly stated, each Section and Sekyere West (the ‘‘Afram Basin
supervisory consultant, in connection reference herein is to the relevant Zone’’); and
with the Land Activity under Section Section of the main body of the • The Southern Horticultural Belt
2(c) of Schedule 1 of Annex I. Compact. area consisting of the following twelve
(d) A feasibility study; and an EIA, an districts: Gomoa, Awutu Efutu Senya,
EMP and a RAP, each as may be 1. Background and Ghana Development Akuapim South, Manya Krobo, Dangme
necessary, and design, in connection Strategy; Consultative Process West, Yilo Krobo, North Dayi, Hohoe,
with the Feeder Roads Activity under (a) Background; Ghana Development Ketu, Keta, South Tongu and Akatsi (the
Section 2(f)(ii)(1) of Schedule 1 of Strategy. Bordering the Gulf of Guinea ‘‘Southern Zone’’).
Annex I. and located between Côte d’Ivoire and
(e) A feasibility study; and an EIA, an Togo, Ghana is a West African country 1 Some of the N1 Activity will take place in the
EMP and a RAP, each as may be of 22 million people. Approximately a district of Ga West.
(b) Consultative Process. In order to contribution of other agricultural sub- 3(e), respectively, of this Program
develop the Proposal, beginning in sectors to the growth of the economy Annex. In addition, ongoing
2004, the Government held a series of and to reduce, through diversification, consultations with the civil society
consultations with various stakeholders risks of not achieving consistently regarding the manner in which each
at both the national and local levels, in strong agricultural performance. As Project is being implemented will take
which numerous policymakers, farmers, such, the Program Objective is fully place throughout the Compact Term.
FBOs, exporters, industry associations, consistent with, and directly supports, (e) Monitoring and Evaluation. Annex
environmental organizations, gender the GPRS. III of this Compact generally describes
organizations, the media, and other civil (b) Projects. The Parties have the plan to measure and evaluate
society groups participated. The identified the Projects that the progress toward achievement of the
objective of the consultations was the Government will implement, or cause to Compact Goal and Objectives (the ‘‘M&E
selection, as well as the prioritization, of be implemented, using MCC Funding to Plan’’). As outlined in the Disbursement
the proposed interventions under the advance each Project Objective. Each Agreement and other Supplemental
MCA assistance that are consistent with Project is described in the Schedules to Agreements, continued disbursement of
the GPRS and complement existing this Program Annex. The Schedules to MCC Funding under this Compact
donor-supported and government- this Program Annex also identify one or (whether as MCC Disbursements and
funded programs for poverty reduction more of the activities that will be Re-Disbursements) shall be contingent,
in Ghana. undertaken in furtherance of each among others, on successful
These consultations revealed that the Project (each, a ‘‘Project Activity’’) as achievement of certain targets as set
proposed interventions should well as the various activities within forth in the M&E Plan.
primarily target the agricultural sector, each Project Activity. Notwithstanding
3. Implementation Framework
with a special focus on the production anything to the contrary in this
of high-value crops for exports. Compact, the Parties may agree to The implementation framework and
Subsequently, the Government formed a modify, amend, terminate or suspend the plan for ensuring adequate
team of managers and sector experts to these Projects or to create a new project governance, oversight, management,
develop further the details of the by written agreement signed by the monitoring and evaluation (‘‘M&E’’) and
proposed interventions. Principal Representative of each Party fiscal accountability for the use of MCC
As the proposed interventions became without amending this Compact; Funding is summarized below and in
better defined, additional consultations provided, however, any such the Schedules attached to this Program
with the stakeholders were held in each modification or amendment of a Project Annex, and as may otherwise be agreed
district within each Intervention Zone or creation of a new project is (i) in writing by the Parties.
to discuss the exact type of the consistent with the Objectives; (ii) does (a) General. The elements of the
interventions, their locations, the not cause the amount of MCC Funding implementation framework will be
arrangements for their implementations to exceed the aggregate amount further described in the relevant
as well as the ownership structure for specified in Section 2.1(a) of this Supplemental Agreements and in a set
certain infrastructure resulting from the Compact; (iii) does not cause the of detailed documents for the
interventions. The non-governmental Government’s responsibilities or implementation of the Program,
organizations (‘‘NGOs’’) representing the contribution of resources to be less than consisting of (i) a Multi-Year Financial
environmental and social sector specified in Section 2.2 of this Compact Plan, (ii) a Fiscal Accountability Plan,
participated in the early rounds of these or elsewhere in this Compact; and (iv) (iii) a Procurement Plan, (iv) an M&E
additional consultations and influenced does not extend the Compact Term. Plan and (v) a Work Plan (each, an
the design of the interventions (c) Beneficiaries. The intended ‘‘Implementation Document’’). MiDA
eventually included in the Proposal. beneficiaries of each Project are shall adopt each Implementation
During MCC’s due diligence of the described in the respective Schedule to Document in accordance with the
Proposal, the Government made this Program Annex and Annex III to the requirements and timeframe as may be
additional efforts to consult the various extent identified as of the date hereof. specified in this Program Annex, the
NGOs representing the environment and The intended beneficiaries shall be Disbursement Agreement or as may
social sector as well as the farmers and identified more precisely during the otherwise be agreed by the Parties from
FBOs. MCC observed the consultations initial phases of implementation of the time to time. MiDA may amend any
both at the local level and the national Program. The Government shall provide Implementation Document without
level. This consultative process is still to MCC information on the population amending this Compact, provided that
ongoing, and is expected to continue of the areas in which the Projects will any material amendment of such
through the Compact Term. be active, disaggregated by gender, Implementation Document has been
income level and age. The Parties shall approved by MCC and is otherwise
2. Overview agree upon the description of the consistent with the requirements of this
(a) Program Objective. The Program intended beneficiaries and the Parties Compact and any relevant
consists of a series of specific and will make publicly available a more Supplemental Agreement. By such time
complementary Projects that the Parties detailed description of the intended as may be specified in the Disbursement
expect will achieve the two-fold beneficiaries of the Program, including Agreement, or as may otherwise be
Program Objective, thus advancing the publishing such description on the agreed by the Parties from time to time,
Compact Goal. Specifically, the two-fold MiDA Web site. MiDA shall adopt a work plan for the
Program Objective is, first, to increase (d) Civil Society. Civil society shall overall administration of the Program
the production and productivity of high- participate in overseeing the (the ‘‘Work Plan’’). The Work Plan shall
value cash and food staple crops in the implementation of the Program through set forth, with respect to (i) the
three Intervention Zones and, second, to its representation on the Board and the administration of the Program, (ii) the
enhance the competitiveness of Ghana’s three Zonal Advisory Committees monitoring and evaluation of the
agricultural products in both regional (which will include representatives Program, and (iii) the implementation of
and international markets. To this end, from NGOs and private sector entities), each Project: (1) Each activity to be
the Program aims to strengthen the as provided in Section 3(d) and Section undertaken or funded by MCC Funding
(to the level of detail mutually Program Annex to the contrary, and Governance Agreement and the
acceptable to MiDA and MCC), (2) the except as may be otherwise agreed upon Millennium Development Authority Act
Detailed Budget, and (3) where by the Parties from time to time, MCC of 2006 (Act 702)), or other charter
appropriate, the allocation of roles and must approve in writing each of the document establishing or governing
responsibilities for specific activities, following transactions, activities, MiDA (each, a ‘‘Governing Document’’);
other programmatic guidelines, agreements and documents prior to the (10) Any disposition, in whole or in
performance requirements, targets, and execution or carrying out of such part, liquidation, dissolution, winding
other expectations related thereto. transaction, activity, agreement or up, reorganization or other change of (A)
(b) Government. document and prior to MCC MiDA, including any revocation or
(i) The Government shall promptly Disbursements or Re-Disbursements in modification of or supplement to any
take all necessary and appropriate connection therewith: Governing Document related thereto, or
actions to carry out the Government (1) MCC Disbursements; (B) any subsidiary or Affiliate of MiDA;
Responsibilities and other obligations or (2) Each Implementation Document (11) Any change in character or
responsibilities of the Government (including each component thereto) and location of any Permitted Account;
under and in furtherance of this any material amendments and (12) Formation or acquisition of any
Compact, including undertaking or supplements thereto; direct or indirect subsidiary, or other
pursuing such legal, legislative or (3) Any Audit Plan; Affiliate, of MiDA;
regulatory actions or procedural changes (4) Agreements (i) between the (13)(A) Any change of any member of
and contractual arrangements as may be Government and MiDA, (ii) between the the Board (including any Observer), of
necessary or appropriate to achieve the Government, a Government Affiliate, the member serving as the Chair or in
Objectives, to successfully implement MiDA or any other Permitted Designee, the composition or size of the Board,
the Program, to designate any rights or on the one hand, and any Provider or and the filling of any vacant seat of any
responsibilities to any Permitted Affiliate of a Provider, on the other member of the Board (including any
Designee, and to establish MiDA, which hand, which require such MCC approval Observer), (B) any change of any Officer
shall be a Permitted Designee and shall under applicable law, the Procurement or other key employee of MiDA or in the
be responsible for the oversight and Agreement, any Governing Document, composition or size of the Management,
management of the implementation of or any other Supplemental Agreement and the filling of any vacant position of
this Compact on behalf of the or (iii) in which the Government, a any Officer or other key employee of
Government. The Government shall Government Affiliate, MiDA or any MiDA, and (C) any material change in
promptly deliver to MCC certified other Permitted Designee appoints, the composition or size of any Zonal
copies of any documents, orders, hires, or engages any of the following in Advisory Committee;
decrees, laws or regulations evidencing furtherance of this Compact: (14) Any decision by MiDA to engage,
such legal, legislative, regulatory, (A) Auditor; to accept or to manage any funds from
procedural, contractual or other actions. (B) Reviewer; any donor agencies or organizations in
(ii) The Government shall ensure that (C) Fiscal Agent; addition to MCC Funding during the
MiDA is duly authorized and organized, (D) Procurement Agent; Compact Term;
sufficiently staffed and empowered to (E) Bank; (15) Any decision to amend,
carry out fully the Designated Rights (F) Implementing Entity; and supplement, replace, terminate, or
and Responsibilities. Without limiting (G) A member of the Board (including otherwise change any of the foregoing;
the generality of the preceding sentence, any Observer), any Officer or any other and
MiDA shall be organized, and have such key employee of MiDA (including (16) Any other activity, agreement,
roles and responsibilities, as described agreements involving the terms of any document or transaction requiring the
in Section 3(d) of this Program Annex compensation for any such person). approval of MCC in this Compact,
and as provided in any Governing (Any agreement described in clause (i) applicable law, any Governing
Documents; provided, however, the through (iii) of this Section 3(c)(i)(4) of Document, the Procurement Agreement,
Government or another Permitted this Program Annex and any the Disbursement Agreement, or any
Designee may, subject to MCC approval, amendments and supplements thereto, other Supplemental Agreement between
carry out any of the roles and each, a ‘‘Material Agreement’’); the Parties.
responsibilities designated to be carried (5) Any modification, termination or (ii) MCC shall have the authority to
out by MiDA and described in Section suspension of a Material Agreement, or exercise its approval rights set forth in
3(d) of this Program Annex or elsewhere any action that would have the effect of this Section 3(c) of this Program Annex
in this Program Annex, any Governing such a modification, termination or in its sole discretion and independent of
Document or any other Supplemental suspension of a Material Agreement; any participation or position taken by
Agreement prior to and during the (6) Any agreement that is (A) not at the MCC Representative at a meeting of
initial period of the establishment and arm’s length or (B) with a party related the Board. MCC retains the right to
staffing and operational formation of to the Government, MiDA or any of their revoke its approval of any matter,
MiDA, but in no event longer than the respective Affiliates; agreement, or action if MCC concludes,
earlier of (1) the formation and (7) Any Re-Disbursement (each, a in its sole discretion, that its approval
convening of organizational meetings of ‘‘Material Re-Disbursement’’) that was issued on the basis of incomplete,
the Board and the formation and requires such MCC approval under inaccurate or misleading information
operational establishment of MiDA applicable law, any Governing furnished by the Government, any
(including the selection and engagement Document, or any other Supplemental Government Affiliate, MiDA or any
of Officers and other key employees) Agreement; other Permitted Designee.
and (2) three months from the Entry into (8) Any pledge of any MCC Funding Notwithstanding any provision in this
Force, unless otherwise agreed by the or any Program Assets, or any guarantee, Compact or any Supplemental
Parties in writing. directly or indirectly, of any Agreement to the contrary, the exercise
(c) MCC. indebtedness (each, a ‘‘Pledge’’); by MCC of its approval rights under this
(i) Notwithstanding Section 3.1 of this (9) Any decree, legislation, regulation, Compact or any Supplemental
Compact or any provision in this contractual arrangement (including the Agreement shall not (1) diminish or
otherwise affect the Government (i) Dr. P. Kwesi Nduom, the representative selected by the registered
Responsibilities or any other obligations incumbent Minister of the Ministry of NGOs representing the environmental
or responsibilities of the Government Public Sector Reform, appointed as the community (the ‘‘eNGO Invitee’’) to all
under this Compact or any chair (‘‘Chair’’) as provided in the meetings of the Board, and the eNGO
Supplemental Agreement, (2) transfer Governing Documents; Invitee shall receive all information and
any such obligations or responsibilities (ii) The Minister, or any other documents provided to the Board as
of the Government, or (3) otherwise government official of the rank of more specifically provided in the
subject MCC to any liability. director or higher, from the Ministry of Governance Agreement.
(d) MiDA. Food and Agriculture, initially to be the (G) The voting members identified in
(i) General. Unless otherwise agreed Minister of Food and Agriculture; Section 3(d)(ii)(2)(A) of this Program
by the Parties in writing, MiDA shall, as (iii) The Minister, or any other official Annex shall exercise their duties solely
a Permitted Designee, be responsible for of the rank of director or higher, from in accordance with the best interests of
the oversight and management of the the Ministry of Trade, Industry, Private MiDA, the Program and the Objectives,
implementation of this Compact. MiDA Sector and Presidential Special and shall not undertake any action that
shall be governed by applicable law and Initiatives, initially to be the Minister of is contrary to those interests or would
the Governing Documents, each such Trade, Industry, Private Sector and result in personal gain or a conflict of
Governing Document to be in form and Presidential Special Initiatives; interest.
substance satisfactory to MCC and (iv) The Minister, or any other official (3) Roles and Responsibilities.
effective on or before the time specified of the rank of director or higher, from (A) The Board shall oversee the
in the Disbursement Agreement, and the Ministry of Local Government, Rural Management, the overall
based on the following principles: Development and Environment, initially implementation of the Program, and the
(1) The Government shall ensure that to be the Minister of Local Government, performance of the Designated Rights
MiDA shall not assign, delegate or Rural Development and Environment; and Responsibilities.
contract any of the Designated Rights (v) The Minister, or any other official (B) Certain actions may be taken and
and Responsibilities without the prior of the rank of director or higher, from certain agreements, documents or
written consent of the Government and the Ministry of Finance and Economic instruments executed and delivered, as
MCC. MiDA shall not establish any Planning, initially to be the Minister of the case may be, by MiDA only upon the
Affiliates or subsidiaries (direct or Finance and Economic Planning; approval and authorization of the Board
indirect) without the prior written (vi) The CEO; as provided under applicable law or as
consent of the Government and MCC. (vii) Two representatives, each set forth in any Governing Document,
(2) Unless otherwise agreed by the selected by the Private Enterprise including each MCC Disbursement
Parties in writing, MiDA shall consist of Foundation; and (viii) A representative, Request, selection or termination of
(A) an independent board of directors selected by the Ghana Association of certain Providers and any
(the ‘‘Board’’) to oversee MiDA’s Private Voluntary Organizations in Implementation Document.
responsibilities and obligations under Development. (C) The Chair, unless otherwise
this Compact (including any Designated (B) The non-voting observers of the provided in the applicable Governing
Rights and Responsibilities) and (B) a Board (each, an ‘‘Observer’’) shall be: Documents, shall certify any documents
management unit (the ‘‘Management’’) (i) A representative designated by or reports delivered to MCC in
to have overall management MCC (the ‘‘MCC Representative’’); and satisfaction of the Government’s
responsibility for the implementation of (ii) Three representatives, each reporting requirements under this
this Compact. selected by lot by the district assemblies Compact or any Supplemental
(ii) Board. within each Intervention Zone. Agreement between the Parties (the
(1) Formation. The Government shall (C) Each Government Member ‘‘Compact Reports’’) or any other
ensure that the Board shall be formed, position (other than the Chair) shall be documents or reports from time to time
constituted, governed and operated in filled by the individual, during the delivered to MCC by MiDA (whether or
accordance with the terms and Compact Term, holding the office not such documents or reports are
conditions set forth in the Governing identified and all Government Members required to be delivered to MCC), and
Documents and any Supplemental (including the Chair) shall serve in their that such documents or reports are true,
Agreement. capacity as the applicable Government correct and complete.
(2) Composition. Unless otherwise officials and not in their personal (D) Without limiting the generality of
agreed by the Parties in writing, the capacity. the Designated Rights and
Board shall consist of at least nine (9) (D) The voting members identified in Responsibilities that the Government
but no more than eleven (11) voting Section 3(d)(ii)(2)(A) of this Program may designate to MiDA, and subject to
members and four (4) non-voting Annex, by majority vote, may alter the MCC’s contractual rights of approval as
observers identified below. size of the Board in accordance with the set forth in Section 3(c) of this Program
(A) The Board shall initially be Governing Documents so long as the Annex, elsewhere in this Compact or
composed of nine (9) voting members as total does not exceed eleven (11) any Supplemental Agreement, the Board
follows, provided that the members members. shall have the exclusive authority as
identified in subsections (i)–(vi) below (E) Each Observer shall have rights to between the Board and the Management
(each, a ‘‘Government Member,’’ and attend all meetings of the Board, for all actions defined for the Board in
each of the other voting members, a participate in the discussions of the any Governing Document and which are
‘‘Civil Member’’) may be replaced by Board, and receive all information and expressly designated therein as
another government official from a documents provided to the Board, responsibilities that cannot be delegated
ministry or other government body together with any other rights of access further.
relevant to the Program activities to records, employees or facilities as (4) Indemnification of Civil Members,
pursuant to the Governing Documents, would be granted to a member of the Observers, and Officers. The
subject to approval by MCC (such Board under the Governing Documents. Government shall ensure, at the
replacement to be referred to thereafter (F) The Board shall, pursuant to the Government’s sole cost and expense,
as a Government Member): Governing Documents, invite a that appropriate insurance is obtained
and appropriate indemnifications and Director of Agricultural Transformation the authority to contract on behalf of
other protections are provided, Program and (N) Agricultural Financial MiDA under any procurement
acceptable to MCC and to the fullest Services and Bank Capacity Building undertaken in accordance with the
extent permitted under the laws of Manager, who shall report to the Procurement Agreement (including the
Ghana, to ensure that (A) Civil Members Commercialization of Agriculture Procurement Guidelines) in furtherance
and Observers shall not be held Project Manager. Each person holding of the Program.
personally liable for the actions or the position in any of the sub-clauses (D) Management shall have the
omissions of the Board or MiDA and (B) (A) through (N), and such other offices obligation and right to approve certain
Officers shall not be held personally as may be created and designated in actions and documents or agreements,
liable for the actions or omissions of the accordance with any Governing including certain Re-Disbursements,
Board, MiDA or actions or omissions of Document and any Supplemental MCC Disbursement Requests, Compact
the Officer so long as properly within Agreement, shall be referred to as an Reports, certain human resources
the scope of Officer’s authority. ‘‘Officer.’’ The Management shall be decisions and certain other actions, as
Pursuant to Section 5.5 and Section 5.8 supported by appropriate administrative provided in the Governing Documents.
of this Compact, the Government and and support personnel consistent with (e) Zonal Advisory Committees.
MiDA shall hold harmless the MCC the Detailed Budget for Program (i) Formation. The Government shall
Representative for any liability or action administration and any Implementation ensure the establishment of three (3)
arising out of the MCC Representative’s Document. zonal advisory committees with
role as an Observer on the Board. The (2) Appointment of Officers. The governmental representatives (each, a
Government hereby waives and releases Chief Executive Officer (‘‘CEO’’) of ‘‘Zonal Advisory Committee’’), each
all claims related to any such liability MiDA shall be selected after an open representing one of the three
and acknowledges that the MCC and competitive recruitment and Intervention Zones.
Representative has no fiduciary duty to selection process, and appointed in (ii) Composition. Each Zonal Advisory
MiDA. In matters arising under or accordance with the Governing Committee shall be comprised, unless
relating to the Compact, the MCC Documents, which appointment shall be otherwise agreed by the Parties, of the
Representative is not subject to the subject to MCC approval. Such following members: (A) A district
jurisdiction of the courts or any other appointment shall be further evidenced planning officer from each district
body of Ghana. MiDA shall provide a by such document as the Parties may within the applicable Intervention Zone;
written waiver and acknowledgement agree. Unless otherwise specified in the (B) a district director of agriculture from
that no fiduciary duty to MiDA is owed Governing Documents, the Officers of each district within the applicable
by the MCC Representative. MiDA other than the CEO shall be Intervention Zone; (C) a district chief
(iii) Management. Unless otherwise selected and hired by the Board after an executive from each district within the
agreed in writing by the Parties, the open and competitive recruitment and applicable Intervention Zone; (D) an
Management shall report, through the selection process, and appointed in elected representative from each district
CEO or other Officer as designated in accordance with the Governing assembly from the applicable
any Governing Document, directly to Documents, which appointment shall be Intervention Zone; and (E) a regional
the Board and shall have the subject to MCC approval. Such environmental officer from each region
composition, roles and responsibilities appointment shall be further evidenced within the applicable Intervention Zone.
described below and set forth more by such document as the Parties may The Government shall take all actions
particularly in the Governing agree. necessary and appropriate to ensure that
Documents. (3) Roles and Responsibilities. each Zonal Advisory Committee is
(1) Composition. The Government (A) Management shall assist the Board established consistent with this Section
shall ensure that the Management shall in overseeing the implementation of the 3(e) of this Program Annex and as
be composed of qualified experts from Program and shall have principal otherwise specified in the Governing
the public or private sectors, including responsibility (subject to the direction Documents or otherwise agreed in
such offices and staff as may be and oversight of the Board and subject writing by the Parties. The composition
necessary to carry out effectively its to MCC’s contractual rights of approval of each Zonal Advisory Committee may
responsibilities, each with such powers as set forth in Section 3(c) of this be adjusted by agreement of the Parties
and responsibilities as set forth in the Program Annex or elsewhere in this from time to time to ensure, among
Governing Documents, and from time to Compact or any Supplemental others, an adequate representation of the
time in any Supplemental Agreement Agreement) for the overall management intended beneficiaries of the Program.
between the Parties, including without of the implementation of the Program. Each member position identified in this
limitation the following: (A) CEO; (B) (B) Without limiting the foregoing Section 3(e)(ii) of this Program Annex
Internal Auditor; (C) Legal Counsel; (D) general responsibilities or the generality shall be filled by the individual, during
Director of the Agricultural of Designated Rights and the Compact Term, holding the office
Transformation Program; (E) Director of Responsibilities that the Government identified and such individual shall
Procurement; (F) Director of Monitoring may designate to MiDA, Management serve in his capacity as the applicable
and Evaluation; (G) Director of Finance shall develop each Implementation Government official and not in his
and Administration; (H) Director of Document, oversee the implementation personal capacity. In the event that such
Environmental and Social Impact; and of the Projects, manage and coordinate member is unable to participate in a
(I) Director of Community and Public monitoring and evaluation, ensure meeting of the respective Zonal
Outreach. The Management shall also compliance with the Fiscal Advisory Committee, such member’s
include: (J) Commercialization of Accountability Plan, and such other deputy may participate in the member’s
Agriculture Project Manager, (K) responsibilities as set out in the stead.
Community Services Project Manager, Governing Documents or otherwise (iii) Roles and Responsibilities. Each
(L) Transportation and Agricultural delegated to Management by the Board Zonal Advisory Committee shall be a
Infrastructure Project Manager, and (M) from time to time. mechanism to provide representatives of
Land Administration Project Manager, (C) Appropriate Officers as designated the private sector, civil society and local
each of whom shall report to the in the Governing Documents shall have and regional governments the
opportunity to provide advice and input may provide MCC Funding, directly or operations. Upon the written request of
to MiDA regarding the implementation indirectly through MiDA, to one or more MCC, the Government shall ensure that
of the Compact. At the request of each (i) pre-determined ministries, bureaus or MiDA terminates the Fiscal Agent,
Zonal Advisory Committee, MiDA shall agencies of the Government based on without any liability to MCC, and the
provide such information and their sector expertise or (ii) government Government shall ensure that MiDA
documents as it deems advisable, bodies, businesses, NGOs, vendors or engages a new Fiscal Agent, subject to
subject to appropriate treatment of such contractors, selected according to the the approval by the Board and MCC.
information and documents by the Procurement Guidelines, to implement The Government shall ensure that MiDA
members of each Zonal Advisory and carry out any Project, Project enters into an agreement with each
Committee. Specifically, during each Activity (or a component thereof), or Fiscal Agent, in form and substance
meeting of each Zonal Advisory any other activities to be carried out in satisfactory to MCC, that sets forth the
Committee, MiDA shall present an furtherance of this Compact (each, an roles and responsibilities of the Fiscal
update on the implementation of this ‘‘Implementing Entity’’). The Agent and other appropriate terms and
Compact and progress towards Government shall ensure that MiDA conditions, such as payment of the
achievement of the Objectives. Each enters into an agreement with each Fiscal Agent (each, a ‘‘Fiscal Agent
Zonal Advisory Committee shall have Implementing Entity, in form and Agreement’’), such Fiscal Agent
an opportunity to provide regularly to substance satisfactory to MCC, that sets Agreement shall not be terminated until
MiDA its views or recommendations on forth the roles and responsibilities of MiDA has engaged a successor Fiscal
the performance and progress on the such Implementing Entity and other Agent or as otherwise agreed by MCC in
Projects and Project Activities, any appropriate terms and conditions writing.
Implementation Document, (including the payment of the (h) Auditors and Reviewers. The
procurement, financial management or Implementing Entity, if any) (the Government shall ensure that MiDA
such other issues as may be presented ‘‘Implementing Entity Agreement’’). An carries out the Government’s audit
from time to time to each Zonal Implementing Entity shall report responsibilities as provided in Sections
Advisory Committee or as otherwise directly to the relevant Officer, as 3.8(d), (e) and (f) of this Compact,
raised by each Zonal Advisory designated in the applicable including engaging one or more auditors
Committee. Implementing Entity Agreement or as (each, an ‘‘Auditor’’) required by
(iv) Meetings. Each Zonal Advisory otherwise agreed by the Parties. Section 3.8(d) of this Compact. As
Committee shall hold at least two
meetings per year as well as such other (g) Fiscal Agent. The Government requested by MCC in writing from time
periodic meetings of the Zonal Advisory shall ensure that MiDA engages one to time, the Government shall ensure
Committee or the respective fiscal agent following an international that MiDA also engages (i) an
subcommittees thereof, designated along competitive process (a ‘‘Fiscal Agent’’) independent reviewer to conduct
sectoral, regional, or other lines, as may who shall be responsible for, among reviews of performance and compliance
be necessary or appropriate from time to others: (i) Assisting MiDA in preparing under this Compact pursuant to Section
time. Representatives of the FBOs, the Fiscal Accountability Plan; (ii) 3.8(f) of this Compact, which reviewer
banking organizations, microfinance ensuring and certifying that Re- shall have the capacity to (1) conduct
institutions, farmer associations, Disbursements are properly authorized general reviews of performance or
horticultural product associations, and documented in accordance with compliance, (2) conduct environmental
women’s associations, chambers of established control procedures set forth audits and (3) conduct data quality
commerce, anti-corruption associations, in the Disbursement Agreement, the assessments in accordance with the
environmental and social organizations Fiscal Agent Agreement and other M&E Plan, as described more fully in
(‘‘Civil Society Stakeholders’’), among relevant Supplemental Agreements; (iii) Annex III, and/or (ii) an independent
others, shall be provided timely advance Re-Disbursement from, and cash evaluator to assess performance as
notice of all such meetings, invited to management and account reconciliation required under the M&E Plan (each, a
participate in all such meetings and of, any Permitted Account established ‘‘Reviewer’’). MiDA shall select the
afforded an opportunity during each and maintained for the purpose of Auditor(s) or Reviewer(s) in accordance
such meeting to present their views or receiving MCC Disbursements and with any Governing Document or other
recommendations to the Zonal Advisory making Re-Disbursements (to which relevant Supplemental Agreement. The
Committee. Fiscal Agent has sole signature Government shall ensure that MiDA
(v) Accessibility; Transparency. The authority); (iv) providing applicable enters into an agreement with each
members of each Zonal Advisory certifications for MCC Disbursement Auditor or Reviewer, in form and
Committee shall be accessible to the Requests; (v) maintaining and retaining substance satisfactory to MCC, that sets
beneficiaries they represent to receive proper accounting, records and forth the roles and responsibilities of the
the beneficiaries’ comments or document disaster recovery system of Auditor or Reviewer with respect to the
suggestions regarding the Program. The all MCC funded financial transactions audit, review or evaluation, including
notices for, and the minutes (including and certain other accounting functions; access rights, required form and content
the views or recommendations of the (vi) producing reports on MCC of the applicable audit, review or
Civil Society Stakeholders expressed) of Disbursements and Re-Disbursements evaluation and other appropriate terms
all meetings of, each Zonal Advisory (including any requests therefore) in and conditions such as payment of the
Committee and any respective accordance with established procedures Auditor or Reviewer (the ‘‘Auditor/
subcommittees shall be made public on set forth in the Disbursement Reviewer Agreement’’). In the case of a
the MiDA Web site or otherwise Agreement, the Fiscal Agent Agreement, financial audit required by Section 3.8(f)
(including television, radio and print) in the Fiscal Accountability Plan, or any of this Compact, such Auditor/Reviewer
a timely manner. other relevant Supplemental Agreement shall be effective no later

(f) Implementing Entities. Subject to Agreements; (vii) assisting in the than one hundred and twenty (120) days
the terms and conditions of this preparation of budget development prior to the end of the relevant period
Compact and any other Supplemental procedures; and (viii) internal to be audited; provided, however, if
Agreement between the Parties, MiDA management of the Fiscal Agent MCC requires concurrent audits of
financial information or reviews of in the Disbursement Agreement, or as Disbursements and Re-Disbursements

performance and compliance under this may otherwise be agreed by the Parties. shall be made. The obligation of MCC to
Compact, then such Auditor/Reviewer (iii) Expenditures. Unless the Parties make MCC Disbursements or approve
Agreement shall be effective no later otherwise agree in writing, no financial Re-Disbursements is subject to the
than the date agreed by the Parties in commitment involving MCC Funding fulfillment, waiver or deferral of any
writing. shall be made, no obligation of MCC such terms and conditions. The
(i) Procurement Agent. The Funding shall be incurred, and no Re- Government and MiDA shall jointly
Government shall ensure that MiDA Disbursement shall be made or MCC submit the applicable request for an
engages one or more procurement agents Disbursement Request shall be MCC Disbursement (the ‘‘MCC
through an international competitive submitted, for any activity or Disbursement Request’’) as may be
process (each, a ‘‘Procurement Agent’’) expenditure unless the expense for such specified in the Disbursement
to carry out and certify specified activity or expenditure is provided for Agreement. MCC will make MCC
procurement activities in furtherance of in the Detailed Budget, and unless Disbursements in tranches to a
this Compact on behalf of the uncommitted funds exist in the balance Permitted Account from time to time as
Government, MiDA, or Implementing of the Detailed Budget for the relevant provided in the Disbursement
Entity. The roles and responsibilities of period. Agreement or as may otherwise be
such Procurement Agent and the criteria (iv) Modifications to Multi-Year agreed by the Parties, subject to Program
for selection of a Procurement Agent Financial Plan or Detailed Budget. requirements and performance by the
shall be as set forth in the applicable Notwithstanding anything to the Government, MiDA and other relevant
Implementation Letter or Supplemental contrary in this Compact, MiDA may parties in furtherance of this Compact.
Agreement. The Government shall amend or supplement the Multi-Year Re-Disbursements will be made from
ensure that MiDA enters into an Financial Plan, the Detailed Budget, or time to time based on requests by an
agreement with the Procurement Agent, any component thereof, without authorized representative of the
in form and substance satisfactory to amending this Compact so long as appropriate party designated for the size
MCC, that sets forth the roles and MiDA requests and receives the and type of Re-Disbursement in
responsibilities of the Procurement approval of MCC for such amendment accordance with any Governing
Agent with respect to the conduct, or supplement and such amendment or Document and Disbursement
monitoring and review of procurements supplement is consistent with the Agreement; provided, however, unless
and other appropriate terms and requirements of this Compact (including otherwise agreed by the Parties in
conditions, such as payment of the Section 4 of Annex II) and any relevant writing, no Re-Disbursement shall be
Procurement Agent (the ‘‘Procurement Supplemental Agreement between the made unless and until the written
Agent Agreement’’). Any Procurement Parties. If such amendment or approvals specified herein or in any
Agent shall adhere to the procurement supplement, if adopted, would
Governing Document and Disbursement
standards set forth in the Procurement reallocate the funds among the Projects,
Agreement for such Re-Disbursement
Agreement and Procurement Guidelines the Project Activities, or any activity
have been obtained and delivered to the
and ensure procurements are consistent under Program administration or M&E
Fiscal Agent.
with the procurement plan adopted by as shown in Annex II, MiDA shall
MiDA pursuant to the Procurement submit a written request for approval by (c) Fiscal Accountability Plan. By
Agreement (the ‘‘Procurement Plan’’) MCC of such amendment or such time as specified in the
unless MiDA and MCC otherwise agree supplement. Any such amendment or Disbursement Agreement or as
in writing. supplement shall (1) be consistent with otherwise agreed by the Parties, MiDA
the Objectives and the Implementation shall adopt, as part of the
4. Finances and Fiscal Accountability Documents; (2) shall not materially Implementation Documents, a plan that
(a) Multi-Year Financial Plan; adversely impact the applicable Project, identifies the principles, mechanisms
Detailed Budget. Project Activity (or any component and procedures to ensure appropriate
(i) Multi-Year Financial Plan. The thereof), or any activity under Program fiscal accountability for the use of MCC
multi-year financial plan for the administration or M&E as shown in Funding provided under this Compact,
Program, showing the estimated amount Annex II; (3) shall not cause the amount including the process to ensure that
of MCC Funding allocable to each of MCC Funding to exceed the aggregate open, fair, and competitive procedures
Project (and related Project Activities), amount specified in Section 2.1(a) of will be used in a transparent manner in
the administration of the Program (and this Compact; and (4) shall not cause the the administration of grants or
its components) and the monitoring and Government’s obligations or cooperative agreements and the
evaluation of the Program (the ‘‘Multi- responsibilities or overall contribution procurement of goods, works and
Year Financial Plan’’) over the Compact of resources to be less than as specified services for the accomplishment of the
Term on an annual basis, is summarized in Section 2.2(a) of this Compact, this Objectives (the ‘‘Fiscal Accountability
in Annex II to this Compact. Annex I or elsewhere in this Compact. Plan’’). The Fiscal Accountability Plan
(ii) Detailed Budget. During the Upon any such amendment or shall set forth, among others,
Compact Term, the Government shall supplement, MiDA shall deliver to MCC requirements with respect to the
ensure that MiDA timely delivers to a revised Detailed Budget, together with following matters: (i) Re-Disbursement,
MCC a detailed budget, at a level of a revised Multi-Year Financial Plan, timely payment to vendors, cash
detail and in a format mutually reflecting such amendment or management and account reconciliation;
acceptable to MiDA and MCC, for the supplement, along with the next MCC (ii) funds control and documentation;
administration of the Program, Disbursement Request. (iii) accounting standards and systems;
monitoring and evaluation of the (b) Disbursement and Re- (iv) content and timing of reports; (v)
Program, and the implementation of Disbursement. The Disbursement preparing budget development
each Project (the ‘‘Detailed Budget’’). Agreement (and any schedules thereto), procedures and the Compact
The Detailed Budget shall be a as amended from time to time, shall implementation budget; (vi) policies
component of the Work Plan and shall specify the terms, conditions and concerning records, document disaster
be delivered by such time as specified procedures on which MCC recovery, public availability of all
financial information and asset the Projects. Without limiting the 6. Environmental Accountability
management; (vii) procurement and generality of the foregoing, and in an (a) The Government shall ensure that
contracting practices; (viii) inventory effort to achieve the goals of MiDA (or any other Permitted Designee)
control; (ix) the role of independent transparency and accountability, the undertakes and completes three
auditors; (x) the roles of fiscal agents Government shall ensure that MiDA: strategic environmental assessments
and procurement agents; (xi) separation (a) Establishes an e-mail suggestion (each, an ‘‘SEA’’), each as a condition
of duties and internal controls; and (xii) box as well as a means for other written precedent to certain MCC
certifications, powers, authorities and comments that interested persons may Disbursements as described in the
delegations. use to communicate ideas, suggestions
(d) Permitted Accounts. The Schedules to this Program Annex and
or feedback to MiDA; further specified in the Disbursement
Government shall establish, or cause to (b) Considers as a factor in its
be established, such accounts (each, a Agreement, and in form and substance
decision-making the recommendations satisfactory to MCC, covering,
‘‘Permitted Account,’’ and collectively of the Zonal Advisory Committees;
‘‘Permitted Accounts’’) as may be agreed respectively, the Northern Zone, the
(c) Develops and maintains, in a Afram Basin Zone and the Southern
by the Parties in writing from time to timely, accurate and appropriately
time, including: Zone.
comprehensive manner, the MiDA Web (b) The Government shall ensure that
(i) A single, completely separate
site that includes postings of MiDA (or any other Permitted Designee)
United States Dollar interest-bearing
information and documents in English (i) undertakes and completes any
account (the ‘‘Special Account’’) at the
(and other languages where relevant); environmental impact assessments
Bank of Ghana to receive MCC
Disbursements; (d) Posts on the MiDA Web site, and (each, an ‘‘EIA’’), environmental
(ii) If necessary, a local currency of otherwise makes publicly available via management plans (each, an ‘‘EMP’’)
Ghana account (interest-bearing as appropriate means (including television, and resettlement action plans (each, a
appropriate and as further specified in radio and print), in the appropriate ‘‘RAP’’), each in form and substance
the relevant Supplemental Agreement) language the following documents or satisfactory to MCC, and as required
(the ‘‘Local Account’’) at the Bank of information from time to time: under the laws of Ghana, the
Ghana to which the Fiscal Agent may (i) The Compact; Environmental Guidelines, this
authorize transfer from any United (ii) All minutes of the meetings of the Compact or any Supplemental
States Dollar Permitted Account for the Board and the meetings of each Zonal Agreement or as otherwise required by
purpose of making Re-Disbursements Advisory Committee unless otherwise MCC and (ii) undertakes to implement
payable in local currency; and agreed by the Parties; any environmental and social mitigation
(iii) Such other interest-bearing (iii) The M&E Plan, as amended from measures identified in such assessments
accounts to receive MCC Disbursements time to time, along with periodic reports or plans to MCC’s satisfaction.
in such banks as the Parties mutually on Program performance; (c) Government shall commit to fund
agree upon in writing. (iv) Such financial information as may all necessary costs of environmental
No other funds shall be commingled be required by this Compact, the mitigation (including costs of
in a Permitted Account other than MCC Disbursement Agreement or any other resettlement) not specifically provided
Funding and Accrued Interest thereon. Supplemental Agreement, or as may for in the budget for any Project.
All MCC Funding held in an interest- otherwise be agreed from time to time Schedule 1 to Annex I—Agriculture
bearing Permitted Account shall earn by the Parties; Project
interest at a rate of no less than such (v) All Compact Reports;
amount as the Parties may agree in the This Schedule 1 generally describes
(vi) All audit reports by an Auditor
Bank Agreement or otherwise. MCC and summarizes the key elements of the
and any periodic reports or evaluations
shall have the right, among others, to Agricultural Productivity and Value-
by a Reviewer;
view any Permitted Account statements Added Development Project (the
(vii) All relevant environmental ‘‘Agriculture Project’’) that the Parties
and activity directly on-line, where impact assessments and supporting
feasible, or at such other frequency as intend to implement in furtherance of
documents, and such other the Agriculture Project Objective.
the Parties may otherwise agree. By environmental documentation as MCC
such time as shall be specified in the Additional details regarding the
may request; implementation of the Agriculture
Disbursement Agreement or as
(viii) A copy of the Disbursement Project will be included in the
otherwise agreed by the Parties, the
Agreement, as amended from time to Implementation Documents and in the
Government shall ensure that MiDA
time; relevant Supplemental Agreements.
enters into an agreement with the Bank,
satisfactory to MCC, that sets forth the (ix) A copy of any document relating
to the formation, organization and 1. Background
signatory authority, access rights, anti-
money laundering and anti-terrorist governance of MiDA, including all Owing to its ability to grow
financing provisions, and other terms Governing Documents, together with successfully a wide diversity of tropical
related to the Permitted Account (the any amendments thereto; and sub-tropical crops, Ghana has the
‘‘Bank Agreement’’). (x) A copy of the Procurement potential to become the leading West
(e) Currency Exchange. The Bank Agreement (including the Procurement African supplier of horticultural
shall convert MCC Funding to the Guidelines), as amended from time to products into the markets in
currency of Ghana at a rate to which the time, and any procurement policies or neighboring African countries and the
parties to the Bank Agreement mutually procedures and standard documents; European Union (‘‘EU’’) where the
and demand for tropical, organic and
agree, subject to MCC approval.

(xi) A copy of certain information conventional fruits and vegetables is
5. Transparency; Accountability derived from each Procurement Plan, as experiencing strong growth. In addition,
Transparency and accountability to specified in the Procurement domestic food security can be
MCC and to the beneficiaries are Agreement, and all bid requests and significantly enhanced by expanding the
important aspects of the Program and notifications of awarded contracts. country’s utilization of arable land
dedicated to maize, yams, cassava and 2. Summary of the Agriculture Project additional indicators will be identified
other traditional food crops. and Related Projects Activities during implementation of the
Agriculture is the backbone of Agriculture Project. The expected
The Agriculture Project is designed to
Ghana’s economy: it accounts for results from, and the key benchmarks to
enhance the profitability of staple food
approximately 40% of the country’s measure progress on, the Agriculture
and horticulture crops and to improve
GDP, directly employs more than 60% Project, as well as the Project Activities
delivery of business and technical
of the labor force and generates more undertaken or funded thereunder, are
services to support the expansion of
than 55% of the foreign exchange set forth in Annex III.
commercial agriculture among farmer-
earnings. The agricultural sector Estimated amounts of MCC Funding
based organizations (‘‘FBOs’’), which
consists of five sub-sectors: crops (other for each Project Activity for the
are groups of eligible farmers, input
than cocoa) and livestock account for Agriculture Project are identified in
suppliers selling to such farmers, or
58% of the GDP attributable to the Annex II. Conditions precedent to each
agricultural sector, cocoa for 20%, output processors buying from such Project Activity under the Agriculture
fisheries for 11% and forestry for the farmers. MCC Funding will support the Project, and the sequencing of such
remaining 11%. following Project Activities: Project Activities, shall be set forth in
Ghana’s current agricultural • Farmer and Enterprise Training in the Disbursement Agreement, any other
production is largely dominated by rain- Commercial Agriculture: To accelerate Supplemental Agreements and the
fed production of crops for local the development of commercial skills relevant Implementation Documents.
consumption by smallholder farmers and capacity among FBOs and their The following summarizes each
using rudimentary technology. business partners (including service Project Activity under the Agriculture
Furthermore, inconsistency in both the providers to FBOs and other entities Project:
supply and the quality of agriculture adding value to agricultural crops such
as processors); (a) Project Activity: Farmer and
crops hampers Ghana’s ability to
compete against other countries • Irrigation Development: To Enterprise Training in Commercial
establish a limited number of retention Agriculture (‘‘Commercial Training
supplying the same to the regional and
ponds and weirs requested by the FBOs Activity’’)
EU markets. Despite non-traditional
horticultural crops’ potential for earning and FBO partnerships for whom access Successful FBOs are critical to the
foreign exchange, the agricultural sector to water is critical to the success of their development of Ghana’s agricultural
currently produces mostly traditional business objectives; potential. The Program will support
crops under sub-optimal conditions, • Land Tenure Facilitation: To FBOs by providing training in business
including lack of interconnectivity improve tenure security for existing management, planning and finance
between production areas and markets land users and to facilitate access to practices, market analyses and
and limited access to credit. land for commercial crops in the marketing, customer service and pricing
Furthermore, insecure land access and Intervention Zones; mechanisms. By achieving critical mass,
inefficient land registration processes • Improvement of Post-Harvest FBOs can exercise bargaining power in
are key risks to the successful expansion Handling and Value Chain Services: To purchasing quality inputs and
of higher-value agribusiness. facilitate strategic investments by FBOs processing, transport, marketing and
Fortunately, a number of concrete in post-harvest infrastructure other services at lower prices, and
steps can set the stage for significant improvements and to build the capacity consistently provide sufficient
increases in food security, household of the public sector to introduce and quantities of quality produce and crops
income, profitable agribusinesses, jobs monitor compliance with international in the necessary volume, as well as add
creation and capital investment in plant protection standards; value to these services, all necessary to
Ghana’s agricultural sector. Specifically, • Improvement of Credit Services for enter the commercial markets with
in order to exploit fully its agricultural On-Farm and Value Chain Investments: competitive products. The continued
potential, Ghana must improve its To augment the supply of, and access to, viability of the FBOs after the Compact
yields of high quality product, increase credit provided by financial institutions Term will be a key to the Ghanaian
the acreage devoted to commercial, operating in the Intervention Zones; and farmers’ continued economic growth,
high-value horticultural crops, and • Rehabilitation of Feeder Roads: To improved farming practices, ability to
consistently meet the international rehabilitate up to 950 km of feeder roads secure best prices for inputs, access to
export market standards. Inefficiencies in eight (8) districts in the Intervention credit and building of strong farmer
in the value chain will be remedied by Zones in order to reduce transportation communities.
improving entrepreneurial and technical costs and time, to increase access to The Commercial Training Activity
skills among farmers and businesses to major domestic and international seeks to strengthen and support both
maximize their output and sales by markets, and to facilitate transportation FBOs and certain agribusiness service
building a post-harvest infrastructure for linkages from rural areas to social providers who offer various value-
preserving the quality of crops during service networks (including, for adding services to the FBOs that meet a
their transportation from the production instance, hospitals, clinics and schools). pre-determined set of criteria to be
site to final market destination. The M&E Plan (described in Annex adopted by MiDA with the approval of
A number of mutually reinforcing III) will set forth anticipated results and, MCC.
activities has been identified to address where appropriate, regular benchmarks Specifically, MCC Funding will
the above-described constraints that that may be used to monitor the support the following:
Ghana is facing in achieving the progress of the implementation of the (i) Extension activities by the Ministry
Agriculture Project Objective within the Agriculture Project. Performance against of Food and Agriculture (‘‘MOFA’’).
Intervention Zones. In addition, the these benchmarks, as well as the overall MOFA will be responsible for providing
participation in, and benefits from, the impact of the Agriculture Project, will preliminary organizational and
Agriculture Project may extend to those be assessed and reported at the intervals technical support to FBOs seeking
farmers in nearby districts who operate to be specified in the M&E Plan, or as eligibility to participate in the
or trade within, or provide supplies to, otherwise agreed by the Parties, from commercial training program. MCC
the Intervention Zones. time to time. The Parties expect that Funding will be used for the
mobilization of MOFA’s district level preservation, packaging and Annex I, or as otherwise may be
extension agents to identify nascent and transportation), as well as on improving appropriate, including compensation of
existing FBOs, as well as farmers and the linkages with processors and traders individuals, residences and businesses
suppliers who are good candidates to and facilitating their access to market affected by such rehabilitation and
organize new FBOs in collaboration through branding, advertising, upgrades, consistent with the World
with the district assemblies. information services and promotion of Bank’s Operational Policy on
(ii) Commercial training program for agricultural crops. Involuntary Resettlement (OP 4.12).
FBOs. An intensive, multi-phase
commercial training program will be (b) Project Activity: Irrigation (c) Project Activity: Land Tenure
offered to the FBOs to improve Development (‘‘Irrigation Activity’’) Facilitation (‘‘Land Activity’’)
significantly their skills in management, In order to combat the frequent crop Ghana currently suffers from an
business planning, technology failure and food shortage due to inadequate land policy and regulatory
applications and marketing. Such FBOs variation in the amount and intensity of framework, fragmented institutional
will include small and medium-sized rain, along with intermittent droughts, arrangements, and an underdeveloped
enterprises (‘‘SMEs’’) that provide the Government has begun to encourage land registration system. For instance,
agribusiness-related, value-adding improved management of water six separate public agencies operate in
services to farmers. Each phase of the resources by farmers and to support loose coordination under two different
program will incorporate training to irrigation development programs. For ministries, and each has a role in land
improve business literacy and numeracy instance, the Government, through the administration. In part as a result of this
of the members of the FBOs. A priority Ghana Irrigation Development institutional fragmentation, land
will be placed on attracting significant Authority, has constructed 22 public transactions are costly and not
participation of women and young irrigation schemes with a combined area transparent, and produce numerous
adults and on encouraging their of 8,745 hectares designed to grow rice, tenure disputes. Other problems in land
engagement in agriculture business either double cropped or in rotation administration in Ghana include a lack
opportunities in the target districts in with vegetables. of formal documentation of customary
each Intervention Zone. Specifically, the Nonetheless, Ghana’s water resources, holdings, indeterminate boundaries of
commercial training program will composed of Lake Volta, formed by the private and other land holdings,
consist of the following three phases: Akosombo Dam and the many conflicting records of land rights and
(1) Phase One: To strengthen the tributaries of the Volta River, have been delays in negotiating and registering
business capacity of FBOs, this phase only lightly exploited to irrigate the acquisition and transfer of land rights.
will provide intensive training in country’s vast tracts of unused land. The Currently, there are approximately
strengthening the organization, Irrigation Activity aims to support the 40,000 land tenure disputes pending
developing a business vision, and expansion of fruit and vegetable before the courts.
learning to use realistic planning tools production by smallholder farmers, as In Ghana, customary rights in land are
towards commercialization and well as the various farmer groups, by prevalent and are offered strong legal
profitability will be provided. providing irrigated water to them. protections by Ghanaian legislation. In
Participants will be required to prepare Specifically, subject to the completion
addition, investors and local farmers
a long-term business plan for approval of the relevant SEAs to MCC’s
access land use rights by long-term lease
in accordance with evaluation criteria, satisfaction, MCC Funding will support
arrangements or other tenancy
adopted by MiDA with the approval of the following:
MCC, before moving on to Phase Two of (i) The construction of small retention arrangements, and in some cases by
the program. An organization-building ponds in all three Intervention Zones, as purchases negotiated directly with the
incentive in the form of business and well as weirs in the Northern Zone, relevant community or the Government
communication technology will be upon approval by MiDA of proposals for on behalf of the community. Sound
available to each participating entity, such ponds and weirs submitted by the agricultural development in Ghana
whether an FBO or an SME, that FBOs. The proposals will be evaluated would be greatly strengthened by
completes and begins implementing the for funding based on a pre-determined making access to land more efficient
approved business plan. set of criteria to be adopted by MiDA and secure while preserving secure
(2) Phase Two: The business plans with the approval of MCC, which will tenure for local communities.
developed in Phase One will determine include, among others, appropriate The Government is in the process of
the specific technical training, assessment of the environmental and implementing, with support from
infrastructure support and inputs to be social impact of, approved permits for, multiple donors, the Land
provided to the participating entities and the appropriate screening for the Administration Project (‘‘LAP’’) that
during Phase Two. The focus during economic effects of, the proposed seeks to remedy these problems through
Phase Two will be to enable the construction. a systematic reform of the policy and
participating entities to transition into (ii) With respect to each construction institutional framework governing land
new agricultural crop varieties and to described in Section 2(b)(i) of this tenure. Consistent with the overall
adopt and fully integrate good Schedule 1 to Annex I, the following policy and methodological framework of
agricultural practices into their activities: LAP, the Land Activity seeks to
commercial operations. (1) Feasibility and design studies (that contribute to an environment of more
(3) Phase Three: The assistance include an assessment of the economic secure land tenure and more efficient
during Phase Three will focus on rates of return and poverty reduction land access in the three Intervention
helping FBOs to maximize sales impacts of the relevant irrigation Zones.
volumes in the commercial agriculture infrastructure), an EIA, an EMP and a Specifically, MCC Funding will
markets (domestic, regional or export), RAP, each as may be necessary; and support the following:
with consistent, competitive products (2) Implementation of environmental (i) Facilitation of land transactions by
and services. Training will focus on and social mitigation measures, as providing on-demand services. To
quality assurance management identified in the studies described in facilitate land transactions on an on-
(including product handling and Section 2(b)(ii)(1) of this Schedule 1 to demand basis in all the districts within
the Intervention Zones, MCC Funding include the development and Nucleus farmers that procure products
will be used to support: implementation of (1) a training action from small outgrowers, or are willing to
(1) Assessment of the demand for plan to build capacity for public and procure outgrower-grown product in the
assistance with land transactions and private sector land administration future, will be eligible to obtain such
registration, as well as the potential services; (2) an assessment and analysis improvements. Eligibility requirements
risks to vulnerable people in land of the legal and administrative aspects will also include, among others,
transactions, in each district within the of compensation resulting from ADRs; membership in an agricultural export
Intervention Zones; (3) a small grants program, in association that will facilitate the
(2) Expansion of access to local coordination with LAP, designed to collection of the full repayment of the
services, such as information provision, encourage constructive debate on land cost of such improvements, with
legal services, valuation, land surveying issues; (4) workshops and other forums interest at market rate comparable to
and mediation of land disputes, in for dialogue; and (5) development and that charged borrowers under the Credit
collaboration with the Lands adoption of a gender strategy for Activity, from the nucleus farmer in
Commission, based on the assessment implementation of the Land Activity. accordance with guidelines on
described in Section 2(c)(i)(1) of this (iv) Improvement of the courts’ ability provision of credit adopted by MiDA
Schedule 1 to Annex I; to process land disputes. To establish with the approval of MCC. Such
(3) Development and management of, expeditious and inexpensive ways to repayments will be deposited in a
and creation of awareness for, a land resolve land disputes and to reduce the special account established by MiDA for
market information database, outreach backlog of land dispute cases in certain reinvestment into activities with the
about the process of land registration circuit courts, MiDA will collaborate export associations that are consistent
and production and circulation, as with the Judicial Service to refine their with the Program Objective selected by
necessary, of information regarding understanding of the nature and scope MiDA based on a pre-determined set of
formal and customary rules and of existing land disputes and the criteria adopted by MiDA with the
administrative practices on land access prospective dispute resolution approval of MCC.
and registration; and mechanisms to resolve such disputes; to
(4) Strengthening the capacity of the (ii) Construction of packhouses and
finalize and implement an action plan other post-harvest infrastructure for
Lands Commission, and other land identifying the most appropriate
sector agencies as appropriate, for more eligible FBOs located in target districts
approach; to remove the identified within the Intervention Zones to serve
efficient processing of land registration backlog of land disputes in each
requests, including, subject to approval the needs of disadvantaged smallholder
participating court; to automate the
by MiDA and MCC, supplementing the farmers growing pineapple, papaya,
records relating to the resolution of the
staffing and providing equipment to mango, and certain vegetable and staple
land disputes; and to develop a practice
automate the processing of land crops. The eligibility requirements will
manual on the use of various ADR
registration requests. include, among others, a plan for full
procedures for use by various members
(ii) A pilot program for area-wide recovery of the operation and
of the circuit courts in the Intervention
registration of rural land rights maintenance costs of such packhouses
Zones involved in handling land
involving, among others, certain in accordance with guidelines on
disputes.
preparatory tasks (including, among provision of credit adopted by MiDA
others, community sensitization, (d) Project Activity: Improvement of with the approval of MCC. Any required
composite maps and inventory of land Post-Harvest Handling and Value Chain permits, including environmental
rights) and the formalization of land Services (‘‘Post-Harvest Activity’’) permits, will be obtained prior to
rights consistent with the methodology A number of post-harvest construction. The ownership of the
developed under LAP (including, infrastructure improvements are packhouses will be transferred from
among others, resolution of land necessary for the Ghanaian horticulture MiDA before the expiration of the
disputes via alternative dispute export industry to become a significant Compact Term to the relevant FBOs that
resolution (‘‘ADR’’) mechanisms, formal supplier of fruits and vegetables to the demonstrate sustained commercial
demarcation of parcel boundaries and EU and other export markets. Therefore, operations.
issuance of registered land titles). The MCC Funding will be used to develop (iii) Construction of infrastructure for
pilot program for registration of land post-harvest handling capacity that packing and cooling at the Kotoka
rights will take place in two phases. In maintains the quality of product from International Airport that meets
Phase One, the rural areas of the the farm to the market. In addition, the international standards, which will be
districts of Awutu Efutu Senya, capacity of the public sector will be completed in two phases. The first
Savalugu-Nanton and Afram Plains will improved to meet International Plant phase will include the construction of
be declared pilot registration districts Protection Convention (‘‘IPPC’’) basic infrastructure to facilitate packing
(‘‘PRDs’’). In Phase Two, a similar set of standards. In order to ensure the long- and storage of fresh agriculture produce,
activities, revised to incorporate the term growth and sustainability of the with provision for future installation of
lessons learned in Phase One, will be post-harvest infrastructure, the cooling facilities. The installation of
carried out in six additional PRDs ownership and operation of such cooling facilities in the second phase
selected by MiDA based upon a pre- infrastructure will be privatized during will be triggered by a demonstrated
determined set of criteria adopted by the Compact Term based on a need for such capacity and a plan for
MiDA with the approval of MCC, privatization plan adopted by MiDA the full recovery of the cost of
incorporating the lessons learned in with the approval of MCC. installation, operations and
Phase One. Specifically, MCC Funding will maintenance of such capacity, in
(iii) Development of innovative support the following: accordance with guidelines on
solutions to the land tenure problems (i) Improvements to existing nucleus provision of credit adopted by MiDA
and the fostering of informed farm packhouses in the form of forced- with the approval of MCC. Any required
stakeholder dialogue on technical, air cooling and temporary cold storage permits, including environmental
social or policy issues relevant to land units, to be owned and operated by the permits, will be obtained prior to
tenure and access. This activity will current owners of such packhouses. construction.
(iv) Upgrade of Ghana’s capacity to with the approval of MCC to provide identified in the studies described in
meet IPPC standards. Equipment access to credit and financial services in Section 2(f)(ii)(1) of this Schedule 1 to
installation, systems improvement and unserved areas. Annex I, or as otherwise may be
staff training of the Plant Protection and (iii) Training for rural banks and appropriate, including compensation of
Regulatory Services Directorate within financial NGOs on credit and individuals, residences and businesses
MOFA, the Ghana Standards Board and management skills consisting of affected by such rehabilitation and
the Water Resource Institute, will be classroom and on-site training upgrades, consistent with the World
implemented to improve service throughout the Compact Term, Bank’s Operational Policy on
delivery to the private sector. including the purchase of a mobile Involuntary Resettlement (OP 4.12);
training center for use in the rural areas (3) Posting of signage and making
(e) Project Activity: Improvement of other safety improvements; and
Credit Services for On-Farm and Value for banking training classes and the
necessary technology. (4) Project management, supervision
Chain Investments (‘‘Credit Activity’’) and auditing of such rehabilitation and
(iv) Establishment of pilot programs
Financial service providers are few intended to speed the flow of credit upgrades.
and far between in most of the districts along the agriculture value chain, such 3. Beneficiaries
in the Intervention Zones and have as voucher programs with retail input
limited abilities to expand rapidly. Only providers. The Agriculture Project will directly
one commercial bank, the Agriculture benefit more than 100,000 farm and
Development Bank, is meaningfully (f) Project Activity: Rehabilitation of rural households, comprising an
engaged in making loans to agricultural Feeder Roads (‘‘Feeder Roads Activity’’) estimated 500,000 individuals, through
clients in the Northern Zone and the To improve transportation linkages the commercial activities of at least
Afram Basin Zone. Although there are and to reduce transport costs, MCC 1,200 FBOs and 120 service providers
37 privately-owned rural banks and Funding will support the rehabilitation located throughout the 23 target districts
seven financial NGOs that serve rural or upgrading of about 950 km of feeder in the three Intervention Zones. In
clients in the Intervention Zones, their roads in the Intervention Zones. The addition, the participation in, and
resources and capacity are very limited. extent to which the feeder roads are benefits from, the Agriculture Project
The Credit Activity will support the rehabilitated or upgraded will depend may extend to those farmers in nearby
other Project Activities under the upon, among others, their current districts who operate or trade within, or
Agriculture Project by facilitating access condition, the present and projected provide supplies to, the Intervention
to credit in the Intervention Zones and traffic volume as a result of increased Zones. In the Intervention Zones,
assisting the banks to improve their agricultural activity and productivity in farmers and others will also benefit
ability to assess, grant and manage those districts, and the results of an EIA, through more secure land tenure with
agriculture loans. if any, required under Section 2(f)(ii)(1) an estimated 5,000 tracts of land gaining
Specifically, MCC Funding will of this Schedule 1 to Annex I. registered rights, more efficient
support the following: Specifically, subject to the completion registration services and more efficient
(i) Provision of funds for banks, of the relevant SEAs to MCC’s circuit courts for resolution of land
financial NGOs and other eligible satisfaction, MCC Funding will support disputes. Over 50 commercial banks,
financial intermediaries for on-lending the following: rural banks and financial NGOs will
to borrowers in the agricultural sector in (i) Rehabilitation and upgrading of the benefit from access to new funding, new
the Intervention Zones. It is anticipated identified segments of feeder roads as banking capacity skills, and potentially
that rural banks and financial NGOs will follows: a permanent injection of new capital at
access the facility to make seasonal and (1) Approximately 205 km of feeder the expiration of the Compact Term to
other working capital loans with roads in Awutu Efutu Senya; improve seasonal and medium-term
maturities of less than 18 months, and (2) Approximately 181 km of feeder credits to rural households and other
commercial banks will access the roads in Akwapim South; enterprises engaged in commercial
facility to make medium-term loans. (3) Approximately 55 km of feeder agriculture activities. The rehabilitation
The financial intermediaries will roads in South Tongu; and upgrades to the feeder roads is
assume one-half of the credit risk on the (4) Approximately 7 km of feeder expected to benefit up to 95,000 farm
loans made using the facility. As an roads in Keta; households and agricultural producers
incentive to participate in granting and (5) Approximately 49 km of feeder by facilitating access to domestic and
effectively collecting the loans, the roads in Ketu; international markets, and to critical
highest-performing rural banks and (6) Approximately 44 km of feeder social services.
financial NGOs will be eligible at the roads in North Dayi;
end of the Compact Term to receive a 4. Donor Coordination; Role of Private
(7) Approximately 66 km of feeder
portion of the facility as a grant based Sector and Civil Society
roads in Hohoe; and
on a set of performance evaluation (8) Approximately 337 km of feeder Where a number of donors, trade
criteria adopted by MiDA with the roads in Savelugu Nanton. associations and agricultural lenders are
approval of MCC. This will strengthen (ii) With respect to each feeder road already supporting capacity building of
the capital base of successful banks, identified in Section 2(f)(i) of this the agriculture industry, the
enhancing their ability to sustain credit Schedule 1 to Annex I, the following Commercial Training Activity, the
to farmers and the agricultural value activities: Irrigation Activity and the Post-Harvest
chain. (1) Feasibility and design studies (that Activity will build upon, and
(ii) Establishment of new office include an assessment of the economic complement, these existing efforts. The
locations, branches or loan production rates of return and poverty reduction lessons learned from other donors’
offices, in all the Intervention Zones, impacts of the relevant feeder roads), an experiences, especially regarding the
with a special preference given to the EIA, an EMP and a RAP, each as may need to avoid narrowly targeted lending
Northern Zone and the Afram Basin be necessary; and over-subsidization of interest rates,
Zone for banks, selected based on (2) Implementation of environmental in order to encourage sustainability will
eligibility criteria adopted by MiDA and social mitigation measures, as be incorporated into the implementation
of the Credit Activity. The World Bank, the avoidance of subsidies as advocated ensure that HIV awareness and worker
Department for International by USAID. safety training will be included as well
Development of the United Kingdom, in the bidding documents for the
6. Sustainability
KfW Entwicklungsbank, Canadian construction firms. In addition, any
International Development Agency, Each Project Activity under the required EIAs, EMPs and RAPs, in form
Deutsche Gesellschaft für Technische Agriculture Project is designed to and substance satisfactory to MCC, will
Zusammenarbeit (GTZ) GmbH, and advance the food crop and horticulture be developed and implemented under
Nordic Development Fund all support industry in Ghana and to lay the the Agriculture Project and monitored
the LAP. The Land Activity has been foundation for substantial and
by MiDA as necessary during the
conceived within the framework of the sustainable economic growth. To that
implementation of the Agriculture
LAP and the various lessons learned end, the improvements in human
resource capacity under the Commercial Project. Any MCC Disbursements for
from the LAP to date will be considered construction will be contingent upon
in the implementation of the Land Training Activity, availability of water
resources under the Irrigation Activity, issuance of environmental permits, as
Activity. Selection of feeder roads for
land tenure security under the Land needed, or any Government statutory
inclusion under the Feeder Roads
Activity has been coordinated with Activity, production of exportable requirements. The Government will
those roads being funded by the EU produce under the Post-Harvest fund any project-related environmental
under its Feeder Roads Improvement Activity, the amount of available credit mitigation costs (including resettlement
Project. to farmers under the Credit Activity, costs) that are not already covered by
Ongoing consultations with private and efficiency gains in transportation of MCC Funding pursuant to Sections
sector representatives, as well as agricultural goods and access to inputs 2(b)(ii) and 2(f)(ii) of this Schedule 1 to
smallholder farmers, large farmers, under the Feeder Roads Activity, Annex I.
agricultural input suppliers, together, are expected to transform
subsistence and sub-scale cash framers 7. Policy; Legal and Regulatory Reform
development organizations,
microfinance institutions, processors, into commercially viable operations, to The Parties have identified the
traders, exporters and transporters of create new, as well as to strengthen following policy, legal and regulatory
agricultural products, agricultural existing, suppliers, processors and reforms and actions that the
industry associations, formal banking marketers on sound business bases and Government shall pursue in support,
institutions, research and higher to enhance a climate that attracts
and to reach the full benefits, of the
education institutions, and the additional outside investment in the
Agriculture Project, the satisfactory
representatives of women’s and food crop and horticulture sectors in
Ghana, thus leading to continued and implementation of which will be
environmental NGOs will be held by
sustainable growth of Ghana’s conditions precedent to certain MCC
MiDA throughout the implementation of
agricultural sector. Disbursements as provided in the
the Agriculture Project.
The environmental and social Disbursement Agreement:
5. U.S. Agency for International sustainability of the Agriculture Project (a) Government shall adopt an
Development (‘‘USAID’’) will be assured through ongoing amendment to cause the National Plant
In 2005, USAID initiated the Trade consultations with the public regarding Protection Organization to be in
and Investment Program for a the manner in which the Agriculture compliance with IPPC standards.
Competitive Export Economy Project is being implemented. SEAs will
(b) Government shall take effective
(‘‘TIPCEE’’) to achieve growth in be conducted in each Intervention Zone
Ghana’s sales of non-traditional exports. affected by the Agriculture Project and, measures to implement the
TIPCEE seeks to provide, among others, as necessary, environmental and social recommendations for legal and
certain targeted farmers with training in analyses (that include an analysis of the institutional reforms for land
improved agricultural practices and gender impacts of the Agriculture administration, land management and
access to new varieties of seeds and Project) will be conducted, as part of the land tenure as proposed in a
inputs. The Agriculture Project has been technical survey and design of major memorandum submitted by the Minister
designed with input from USAID so that investments in any physical of Lands, Forests and Mines to the
TIPCEE and the Agriculture Project will infrastructure under the Agriculture Cabinet and approved by the Cabinet on
mutually support each other. Project to determine the environmental February 9, 2006.
Furthermore, research on land issues by impacts and existence of economic and (c) Government shall harmonize the
the Institute of Statistical, Social and physical displacements, if any. relevant land legislation and regulations
Economic Research at the University of Furthermore, the Government will with the constitutional mandate related
Ghana will inform the implementation ensure, directly or through MiDA (or to public taking of land for the public
of the small grants program under any other Permitted Designee), that good.
Section 2(c)(iii)(3) of this Schedule 1 to environmental and social mitigation
Annex I. While USAID currently has no measures are developed and 8. Proposals
projects focusing on the rehabilitation or implemented for each Project Activity
upgrade of feeder roads in Ghana, the under the Agriculture Project in Public solicitations for proposals are
Government intends to continue accordance with the provisions of this anticipated to procure goods, works and
dialoguing with USAID to identify areas Compact and any relevant services, as appropriate, to implement
in which USAID’s activities may Supplemental Agreements. MiDA will all Project Activities under the
complement the Feeder Roads Activity. ensure that environmental and social Agriculture Project. MiDA will develop,
Finally, USAID has reviewed and assessment responsibilities will be subject to MCC approval, a process for
provided input into the designing of the included in the bidding documents for consideration of all such proposals.
Credit Activity, and the goals and the design or supervisory firms, the Notwithstanding the foregoing, MiDA
methods of the Credit Activity are construction firms, the independent may also consider, using a process
consistent with the practices in favor of technical auditing firms and any project developed subject to MCC approval, any
financial institution’s sustainability and management advisors. MiDA will unsolicited proposals it might receive.
Schedule 2 to Annex I—Transportation Government’s efforts to remove undertaken or funded thereunder, are
Project transport disparities between the rural set forth in Annex III.
This Schedule 2 generally describes and urban areas, to reduce vehicle Estimated amounts of MCC Funding
and summarizes the key elements of the operating and maintenance costs and to for each Project Activity for the
Transportation Infrastructure improve the competitiveness of Transportation Project are identified in
Development Project (the agricultural producers using these Annex II. Conditions precedent to each
‘‘Transportation Project’’) that the roads. In addition, MCC Funding will Project Activity under the
also be used to undertake improvements Transportation, and the sequencing of
Parties intend to implement in
to inland water transport to enhance the such Project Activities, shall be set forth
furtherance of the Transportation
transportation network in the Afram in the Disbursement Agreement, other
Project Objective. Additional details
Basin Zone. Supplemental Agreements or the
regarding the implementation of the
Transportation Project will be included 2. Summary of Transportation Project relevant Implementation Documents.
in the Implementation Documents and and Related Projects Activities The following summarizes each
in the relevant Supplemental Project Activity under the
The Transportation Project is Transportation Project:
Agreements. designed to reduce the transportation
1. Background costs affecting agricultural commerce at (a) Project Activity: Upgrades to
sub-regional and regional levels in Sections of N1 Highway (‘‘N1 Activity’’)
Agricultural development is critically Ghana, in support of the Agriculture
dependent on a sound transport The TQM runs in an East-West
Project. MCC Funding will support the direction, constitutes a part of the
network for access to inputs and following Project Activities:
markets. Ghana’s transport system Accra—Tema Motorway and functions
• Upgrades to Sections of N1
consists of four modes: Road, aviation, as a part of the larger Trans-West Africa
Highway: To reduce the bottleneck in
rail and maritime. Its national road Highway. It also supports the urban
accessing the International Airport and
network totals about 60,000 km while it traffic movement within the Greater
the Port of Tema and to support an
has one international airport and four Accra Metropolitan Area. The existing
expansion of Ghana’s export-directed
domestic airports. It has approximately TQM, a two lane road, is severely
horticulture base beyond current
945 km rail network currently serving congested during the greater part of the
production, by upgrading of 14 km of
the southern half of the country, and its the National Highway (‘‘N1 Highway’’) working day, with an estimated traffic
maritime infrastructure consists of 350 between Tema and Accra (specifically, flow of between 28,000 and 35,000
km of inland water transport over Lake the stretch of N1 Highway from Tetteh vehicles per day.
Volta, in addition to the two seaports at Quarshie Interchange to Mallam Road Since 1996, traffic has been growing
Tema and Takoradi. Junction, also known as ‘‘TQM’’) and by around Accra by approximately 7 to
Road transport is the dominant mode constructing two grade separation 7.5% each year. While overall traffic
of transport in Ghana, carrying almost interchanges at the Dimples-Achimota volumes in Accra continue to increase
95% of the passenger traffic and 97% of and Mallam Junctions to improve traffic at a relatively rapid rate, the rate of
all movable freight in the country. The management at these locations; increase observed on the TQM has been
Government has identified high • Improvements of Trunk Roads: To less, reflecting the degree of saturation
transport costs as a barrier to achieving facilitate the growth of agriculture and on the road and travelers’ decisions not
sustainable economic growth inhibiting access to social services by to use the route at congested times.
the expansion of agricultural rehabilitating or constructing up to 230 Observed ‘‘free-flow’’ travel speeds on
opportunities by restricting access and km of trunk roads in the Afram Basin improved sections of the N1 Highway
linkages to major domestic and Zone; and reach 50–70 km per hour; however, at
international agricultural markets. • Improvements of Lake Volta Ferry narrower sections including the TQM,
In order to address the problem of Services: To facilitate the growth of average speeds can drop to less than 10
high transport costs, the Government agriculture in the Afram Basin Zone by km per hour.
has developed a rolling five-year improving the ferry services of Volta As a result of this congestion and the
strategic plan, out of which the first Lake Transport Company (‘‘VLTC’’) that associated high vehicle operating costs,
three-year segment was used to prepare connect Adawso on the southern shore the Government and its development
the Road Sector Development Program to Ekye Amanfrom on the northern partners have undertaken to improve
(‘‘RSDP’’) for implementation over the shore. and widen sections of the N1 Highway,
period from 2002 through 2007. The The M&E Plan (described in Annex including those that are contiguous to
objective of the RSDP is to reduce III) will set forth anticipated results and, the TQM. Currently, the TQM acts as a
poverty and disparities in incomes, where appropriate, regular benchmarks bottleneck and negatively impacts the
improve the standard of living in both that may be used to monitor the returns to the investment on the
the rural and urban areas, and raise the progress of the implementation of the contiguous sections. MCC will fund
quality of life by improving access to Transportation Project. Performance rehabilitation to, and upgrades of,
social services, all through improved against these benchmarks, as well as the specific sections of the N1 Highway in
road infrastructure. In addition, under overall impact of the Transportation an effort to improve the efficiency of the
the GPRS, the Government is committed Project, will be assessed and reported at greater road network in and around
to providing a better distribution of the the intervals to be specified in the M&E Accra, including access to the key sea
road network and other transportation Plan, or as otherwise agreed by the and air export facilities.
linkages to reduce disparities between Parties, from time to time. The Parties Specifically, MCC Funding will
the urban and the rural communities. expect that additional indicators will be support the following:
MCC Funding will, therefore, be used identified during implementation of the (i) Improvement and upgrade to the
to undertake improvements to the road Transportation Project. The expected 14 km of N1 Highway between Tetteh
network with emphasis on primary and results from, and the key benchmarks to Quarshie and Mallam Junctions as a
secondary roads, principally in the measure progress on, the Transportation three lane dual carriageway (without
Intervention Zones, consistent with the Project, as well as the Project Activities service roads) and provision of grade
separation interchanges at the Dimples- (4) Nkawkaw-Mpraeso—Kwahu Tafo (v) Rehabilitation of ferry terminals at
Achimota and Mallam Junctions. Road (22 km). Rehabilitation and Adawso and Ekye Amanfrom, including
(ii) With respect to the improvements resurfacing of the bitumen surfaced road all-weather protection and adequate
and upgrades identified in Section from Nkawkaw through Mpraeso to sanitation facilities to accommodate
2(a)(i) of this Schedule 2 to Annex I, the Kwahu Tafo; and additional ferry and passenger traffic.
following activities: (5) Kwahu Tafo—Adawso (21 km). (vi) Extraction of tree-stumps from the
(1) Feasibility and design studies (that Completion of paving (into bitumen crossing route between Adawso and
include an assessment of the economic surfacing) of 21 km of road from Kwahu Ekye Amanfrom to eliminate
rates of return and poverty reduction Tafo to Adawso. navigational and safety hazards during
impacts of the relevant sections of the (ii) With respect to the improvements low water periods.
N1 Highway), an EIA, an EMP and a and upgrades identified in Section (vii) With respect to the
RAP; 2(b)(i) of this Schedule 2 to Annex I, the improvements and upgrades identified
(2) Implementation of the following activities: in Sections 2(c)(i)–(vi) of this Schedule
environmental and social mitigation (1) A technical and environmental 2 to Annex I, the following activities:
measures, as identified in the studies audit of the Agogo—Dome Road (77 km) (1) Feasibility and design studies (that
described in Section 2(a)(ii)(1) of this to assess the impact of recent include an assessment of the economic
Schedule 2 to Annex I, or as otherwise rehabilitation activities; rates of return and poverty reduction
may be appropriate, including (2) Feasibility and design studies (that impacts), an EIA, an EMP and a RAP,
compensation of individuals, residences include an assessment of the economic each as may be necessary;
and businesses affected by such (2) Implementation of the
rates of return and poverty reduction
improvements and upgrades, consistent environmental and social mitigation
impacts of the relevant trunk roads), an
with the World Bank’s Operational measures, as identified in the studies
EIA, an EMP and a RAP, each as may
Policy on Involuntary Resettlement (OP described in Section 2(c)(vii)(1) of this
be necessary;
4.12); Schedule 2 to Annex I, or as otherwise
(3) Implementation of the
(3) Utility relocations, as may be may be appropriate, including
environmental and social mitigation
necessary; and compensation of individuals, residences
measures, as identified in the studies
(4) Project management, supervision and businesses affected by such
described in Section 2(b)(ii)(2) of this
and auditing of such improvements and improvements and upgrades, consistent
Schedule 2 to Annex I, or as otherwise
upgrades. with the World Bank’s Operational
may be appropriate, including
(iii) Feasibility and design studies Policy on Involuntary Resettlement (OP
compensation of individuals, residences
(that include an assessment of the 4.12); and
and businesses affected by such (3) Project management, supervision
economic rates of return), an EIA, an
improvements and upgrades, consistent and auditing of such improvements and
EMP and a RAP, each as may be
with the World Bank’s Operational upgrades.
necessary for service roads and grade
Policy on Involuntary Resettlement (OP
separation at an additional six 3. Beneficiaries
4.12); and
interchanges along the TQM (the
(4) Project management, supervision The principal beneficiaries of the
construction of which shall not be
and auditing of such improvements and Transportation Project are expected to
funded by MCC Funding).
(b) Project Activity: Improvements of upgrades. be the users of the improved roads and
Trunk Roads (‘‘Trunk Roads Activity’’) (c) Project Activity: Improvements to ferry facilities since it decreases
MCC Funding will support the Lake Volta Ferry Service (‘‘Ferry transportation costs to markets and
assessment and subsequent Activity’’) social service delivery points and
improvements of up to 230 km of trunk To facilitate growth of the agricultural employees, in addition to the owners of
roads. Specifically, subject to the sector of the Afram Basin Zone, MCC urban and rural businesses that rely on
completion of the relevant SEAs to Funding will be used to support the Ghanaian road network.
MCC’s satisfaction, MCC Funding will improvements to ferry services of VLTC, More specifically, the N1 Highway
support the following: connecting Adawso on the southern upgrades are expected to benefit
(i) Improvements to the following five shore to Ekye Amanfrom on the approximately 150,000 daily users and
trunk roads: northern shore. should support a broader expansion of
(1) Agogo—Dome Road (77 km). Specifically, subject to the completion Ghana’s export-directed horticulture
Upgrading of 23 km of road between of the relevant SEAs to MCC’s beyond its current production base of
Agogo and Dukusen to bitumen satisfaction, MCC Funding will support less than 7,000 hectares. Improvements
surfacing and rehabilitation or the following: to the trunk roads are expected to open
construction of 54 km of road between (i) Construction of two double-ended new economic opportunities for
Dukusen and Dome to gravel surfacing vehicle/pedestrian ferries with approximately 25,000 agricultural
(including rehabilitation or construction hydraulic liftable propellers. households and users, spurring
of drainage culverts and bridges and (ii) Training of VLTC staff, including agricultural production in the Afram
contingent upon completion of an management and occupational safety Basin Zone, most of whom are
environmental audit); training for workshop foremen from considered poor or very poor. These
(2) Ejura—Domi Road (22 km). VLTC’s staff in Akosombo, VLTC’s improvements will also facilitate access
Upgrading from gravel to bitumen workshop staff, artisans, and ferry crew. to social services, including health and
surfacing of 22 km of road between (iii) Rehabilitation of the Akosombo education, for these poor households.
Ejura and Domi; floating dock to enhance VLTC’s The benefits from time savings by
(3) Ekye Amanfrom—Agordeke Road construction, repair and maintenance introducing additional ferries will
(85 km). Upgrading from gravel to capabilities. accrue to all users of the ferry. More
bitumen surfacing of about 46 km, and (iv) Civil works at the landing stages fundamentally, improved reliable ferry
rehabilitation of 39 km of existing at Adawso and Ekye Amanfrom to service in the district of Afram Plains
bitumen-surfaced sections, of the road increase the ferry and vehicle handling should generate improved access to
from Ekye Amanfrom and Agordeke; capacities at the same landing stages. inputs and markets for farmers and
increased competition among truckers, maintenance of the trunk road network, ensure, directly or through MiDA (or
which should in turn yield increased feeder roads and urban roads, any other Permitted Designee), that
farmgate prices and reduced operating respectively. environmental and social mitigation
costs. These benefits are likely to be Approximately 45% of the MoT’s measures are developed and
divided equally between farmer and annual budget is allocated to operation implemented for each Project Activity
users, on the one hand, and the vehicle and maintenance of the existing road under the Transportation Project in
owners, on the other hand, a great network. Currently, the maintenance of accordance with the provisions of this
majority of whom are poor. the roads is generally funded through Compact and any relevant
GRF, which provides a sustainable and Supplemental Agreements. MiDA will
4. Donor Coordination reliable source of funds to pay for ensure that environmental and social
Donor coordination in the transport maintenance of the road network. Its assessment responsibilities will be
sector in Ghana is organized through sources of revenue include fuel levies, included in the bidding documents for
RSDP, bringing together, among others, vehicle registration fees, road use fees, the design or supervisory firms, the
the World Bank, the African road tolls, bridge tolls, ferry tolls, and construction firms, the independent
Development Bank, Department for international transit fees (for foreign technical auditing firms and any project
International Development (‘‘DFID’’), vehicles entering Ghana). The MoT is management advisors. MiDA will
EU, Japan International Cooperation committed to maintaining this funding. ensure that HIV awareness and worker
Agency and the Arab Bank for Economic It has also developed a plan to increase safety training will be included as well
Development, for a multi-year integrated the total number of kilometers of in the bidding documents for the
funding program of approximately maintainable roads by about 3,600 km a construction firms. In addition, any
US$1.2 billion. The collaboration takes year, primarily though spot required EIAs, EMPs and RAPs, in form
place through the annual donor improvement and rehabilitation of roads and substance satisfactory to MCC, will
conference and in-country monthly previously considered as non- be developed and implemented under
meetings to review the performance of maintainable. GRF monies will be used the Transportation Project and
the sector. The road agencies in Ghana to maintain the roads constructed or monitored by MiDA as necessary during
have received substantial donor support improved under this Transportation the implementation of the
for construction, maintenance and Project. Transportation Project. Any MCC
institutional strengthening. While VLTC is financially self- Disbursements for construction will be
The Transportation Project sustaining based on current toll levels, contingent upon issuance of
coordinates with many ongoing and a lack of suitable equipment to environmental permits, as needed, or
planned donor activities, and has been accommodate an increasing number of any other Government statutory
structured to ensure complementarity. ferry passengers is a key constraint to requirements. The Government will
For instance, none of the selected roads consistent, economic service by VLTC. fund any project-related environmental
under the Trunk Roads Activity is Its severely limited maintenance mitigation costs (including resettlement
expected to benefit from other donor- capacity and, by extension, its costs) that are not already covered by
supported interventions. In addition, operational abilities endanger MCC Funding pursuant to Sections
there has been no material donor continuity and dependability of its 2(a)(ii), 2(b)(ii), and 2(c)(vii) of this
support to the VLTC in recent years service. Spare parts for the presently Schedule 2 to Annex I.
whereas the Ferry Activity is designed operating ferries are difficult to obtain
and the main auxiliary engines of the 7. Policy; Legal and Regulatory Reform
specifically to support this critical
transport link to one of the poorest current ferry are no longer in The Parties have identified the
districts in Ghana. production. MCC Funding is critical in following policy, legal and regulatory
ensuring efficient and timely services reforms and actions that the
5. U.S. Agency for International and meeting projected demand. MCC Government shall pursue in support,
Development Funding will expand VLTC’s service and to reach the full benefits, of the
USAID currently does not focus and maintenance capabilities and is Transportation Project, the satisfactory
specifically on the construction and expected simultaneously to reduce its implementation of which will be
rehabilitation of the transportation recurrent direct costs. conditions precedent to certain MCC
infrastructure in Ghana. However, The environmental and social Disbursements as provided in the
MiDA will continue to dialogue with sustainability of the Transportation Disbursement Agreement:
USAID to identify potential Project will be assured through ongoing (a) Government shall allocate
opportunities for coordination with consultations with the public regarding sufficient funds from GRF or other
respect to the Transportation Project. the manner in which the Transportation sources to ensure proper routine and
Project is being implemented. SEAs will periodic maintenance of the road
6. Sustainability be conducted in each Intervention Zone network through continuing to increase
The Ministry of Transportation affected by the Transportation Project GRF revenues (through fuel levies, tolls,
(‘‘MoT’’) is the principal institution (other than the district affected solely by vehicle registration/licensing fees,
responsible for the effective and the N1 Activity) and, as necessary, among others) and to ensure that GRF
sustainable management of the road environmental and social analyses (that revenues are used first for maintenance
network in Ghana. As such, it plays a include an analysis of the gender before any allocations are made for
central role in coordinating and impacts of the Transportation Project) other works (such as rehabilitation).
regulating activities of the road agencies will be conducted, as part of the (b) Government shall adhere to
(i.e., Department of Feeder Roads technical survey and design of major agreements reached with donors under
(‘‘DFR’’), the Department of Urban investments in any physical the RSDP and the upcoming Transport
Roads (‘‘DUR’’), the Ghana Highway infrastructure under the Transportation Sector Development Program.
Authority (‘‘GHA’’) and the Ghana Road Project to determine the environmental (c) Government shall develop a
Fund (‘‘GRF’’)). GHA, DFR and DUR are impacts and existence of economic and maritime framework governing access
responsible for the administration, physical displacements, if any. and operations on Lake Volta with
planning, control, development and Furthermore, the Government will respect to the Ferry Activity.
(d) Government shall develop and level to conduct public procurement electrification of the rural areas, and by
approve the emergency response plans results in leakage, misuse, and providing capacity building support to
of VLTC with respect to the Ferry suboptimal use of public resources. local government institutions; and
Activity. Therefore, the Government and the • Strengthening of Rural Financial
donors have increasingly provided Services: To automate and interconnect
8. Proposals
support to build the institutional the 121 rural banks and to provide other
Public solicitations for proposals are capacity of local government units and improvements in the national payments
anticipated to procure goods, works and to support the ability of rural systems that will draw a large number
services, as appropriate, to implement populations to influence more directly of people currently not served or under-
all Project Activities under the the provision of community services served into the financial system, and, if
Transportation Project. MiDA will that impact them. there is sufficient funding and
develop, subject to MCC approval, a In addition, currently in Ghana, there appropriate waivers are granted, to
process for consideration of all such is a shortage of credit, as well as interconnect the savings and loans
proposals. Notwithstanding the financial services, available in general to institutions to the national payments
foregoing, MiDA may also consider, a large portion of the rural populations, system.
using a process developed subject to and in particular to those engaged in The M&E Plan (described in Annex
MCC approval, any unsolicited agriculture. Much of the financial sector III) will set forth anticipated results and,
proposals it might receive. currently focuses on providing capital to where appropriate, regular benchmarks
people in the urban areas or on shorter- that may be used to monitor the
Schedule 3 to Annex I—Rural
term commercial activity rather than to progress of the implementation of the
Development Project
investments in agricultural production, Rural Development Project. Performance
This Schedule 3 generally describes partly owing to the high risks and against these benchmarks, as well as the
and summarizes the key elements of the transaction costs in making such loans. overall impact of the Rural Development
Rural Services Development Project (the Insufficiency of rural services has Project, will be assessed and reported at
‘‘Rural Development Project’’) that the constrained the growth of the private
the intervals to be specified in the M&E
Parties intend to implement in sector in rural areas. Ghana’s
Plan, or as otherwise agreed by the
furtherance of the Rural Development development plans, including the GPRS
Parties, from time to time. The Parties
Project Objective. Additional details and other strategies, have been designed
expect that additional indicators will be
regarding the implementation of the to foster private sector led growth and
identified during implementation of the
Rural Development Project will be development. However, the success of
Rural Development Project. The
included in the Implementation these programs has been constrained by
expected results from, and the key
Documents and in the relevant the lack of services in rural
benchmarks to measure progress on, the
Supplemental Agreements. communities. The Rural Development
Rural Development Project, as well as
Project is designed to address each of
1. Background the Project Activities undertaken or
these problems in a coordinated fashion
Residents of rural areas of Ghana have funded thereunder, are set forth in
by improving the design and delivery of
spotty and frequently poor access to Annex III.
community services through enhancing
basic community services such as Estimated amounts of MCC Funding
the capacity of the local government
potable water, community sanitation, for each Project Activity for the Rural
units, by allowing the beneficiaries to
schools at all levels and domestic Development Project are identified in
provide meaningful input on the
electricity. This has both limited the Annex II. Conditions precedent to each
decisions on investment in community
productivity of these people and made Project Activity under the Rural
infrastructure and by improving the
it difficult to attract or retain skilled Development Project, and the
efficiency of the rural financial
entrepreneurs or workers in the rural sequencing of such Project Activities,
institutions in order that they may serve
areas. In turn, this has limited Ghana’s shall be set forth in the Disbursement
the people in agriculture more
ability to realize the full potential of its Agreement, other Supplemental
effectively.
agricultural resources. Agreements or the relevant
In the past, the Government delivered 2. Summary of Rural Development Implementation Documents.
community services, such as schools Project and Related Projects Activities The following summarizes each
and water or sanitation facilities, with The Rural Development Project is Project Activity under the Rural
primary direction from the central designed to support agricultural and Development Project:
government and little input from the agri-business development under the (a) Project Activity: Strengthening of
local governments or the beneficiaries. Agriculture Project and to strengthen Public Sector Procurement Capacity
Consequently, decisions on the location the rural institutions that provide (‘‘Procurement Capacity Activity’’)
and the design of community resources complementary services. MCC Funding The Procurement Capacity Activity is
were frequently suboptimal, and the will support the following Project designed to strengthen the capacity of
resulting delivery of the related services Activities: the various procurement entities within
inefficient. During the past few years, • Strengthening of Public Sector the Government to procure necessary
however, the Government committed to Procurement Capacity: To support the goods, works and services with greater
a strategy of decentralization to development of procurement economy, efficiency and effectiveness. It
empower local governments and the professionals and reinforce the is also intended to allow such entities
beneficiaries in the hopes of more capabilities of the Government to to implement fully Ghana’s Public
efficient delivery of community procure goods and services; Procurement Act of 2003 (Act 663) by
services. • Support for Community Services: assisting the development of training
One of the major obstacles to To complement the Agriculture Project materials for the staff of such entities,
successful implementation of this by funding construction and the formation of a career path within the
strategy is the lack of adequately trained rehabilitation of educational facilities, Government, and the placement of
specialists in local governments. For construction and rehabilitation of water trainees in such procurement entities to
instance, the lack of capacity at the local and sanitation facilities and provide them with practical application.
Specifically, MCC Funding will governments to deliver the related MiDA with the approval of MCC;
support the following: services. These interventions are part of provided, further, that the foregoing may
(i) Development of the modules for a larger effort by the Government to be adjusted based on the results of the
training and certification that are expand the provision of basic relevant SEA upon its completion.
relevant to the public sector and community services throughout Ghana, (iii) Construction of water and
consistent with Ghana’s Public and are specifically expected to enhance sanitation facilities to achieve improved
Procurement Act of 2003 (Act 663), the sustainability of the Agriculture health, to reduce the incidence of illness
including consultation with educational Project by providing the necessary and loss of productivity due to unsafe
institutions to develop a standard infrastructure to improve health of drinking water and poor sanitation and
procurement curriculum for use in communities, to enhance skill hygiene, and to reduce the time required
formal procurement training programs, development through access to to procure potable water. MCC Funding
development of an internationally- education, and to facilitate small-scale will be used to fund boreholes (whether
accepted educational program in post-harvest processing of agricultural mechanized or using hand-pumps),
procurement in conjunction with other products. Availability of funding to the small town pipe systems and
international procurement bodies such districts in the Intervention Zones will community sanitary facilities; provided
as the Chartered Institute of Purchasing be a function of population, relative that, such construction (1) is consistent
and Supply of the United Kingdom, and poverty and actual investment with the agreed norms of the
introduction of such curriculum to the performance under the Agriculture Community Water and Sanitation
various institutions that will offer Project. Specific investments will be Authority, as well as of the Ministry of
courses in procurement. driven by the demands of local Water Resources, Works and Housing,
(ii) Establishment of procurement as a communities, prioritized through a and other parties as may be agreed from
career in public service with clear lines broad-based, inclusive process to time to time between MiDA and MCC,
of promotion and reporting by assisting enhance community ownership and (2) is included in the list of priorities of
the Government in attracting a cadre of strengthen sustainability. the relevant district’s ‘‘District
procurement professionals, in clearly Specifically, MCC Funding will Development Plan,’’ and reflected in the
defining the career paths as a support the following: annual budget and DACF plans, (3) is in
procurement professional in the (i) Capacity building by Rural a community that demonstrates
Government (including formulating the Infrastructure Coordinating Unit commitment to such construction
requirements for entry and promotion, (‘‘RICU’’) of the Ministry of Local through contributions of cash or other
defining a procurement career path with Government, Rural Development and property (including land or raw
clear job functions, grades, promotion Environment for the local government material) or labor, (4) is consistent with
rules and salary structure) and units in the Intervention Zones to the standards on adequacy of the
establishing a well-trained procurement strengthen their ability to deliver provision of operating costs (including
staff whose duties are institutionalized community services, to manage assets staffing, as well as the operation and
within the Government. and to ensure transparency and maintenance, of the facilities) and cost
(iii) Provision of procurement-related accountability in their operations. recovery mechanisms adopted by MiDA
training to potential procurement (ii) Rehabilitation and construction of with approval of MCC, (5) meets criteria
professionals by identifying a target educational facilities in the form of satisfying cost effectiveness, (6) is
group of professionals, students and primary, junior secondary and senior within a district in which the
public or civil service members secondary schools, as well as vocational Agriculture Project is being
qualified to enter into a structured and technical institutions; provided that implemented, (7) includes a hygiene
procurement training program, such rehabilitation or construction (1) is education module and (8) does not
establishing agreements, policies, consistent with the agreed norms of the create any adverse environmental or
procedures, and protocols with the Ministry of Education, Science and social impact under the standards
various public and civil service Sports, Ghana Educational Service, and adopted by MiDA with the approval of
organizations, educational institutions other parties as may be agreed from time MCC; provided, further, that the
and private sector businesses to identify to time between MiDA and MCC, (2) is foregoing may be adjusted based on the
and provide short term and interim included in the list of priorities of the results of the relevant SEA upon its
opportunities for procurement program relevant district’s ‘‘District Development completion.
participants to perform procurement Plan,’’ and reflected in the annual (iv) Expansion of rural electrification
and supply chain activities in both district budget and District Assembly to unserved and underserved areas for
public and private sectors and Common Fund (‘‘DACF’’) plans, (3) is in domestic uses as well as for use in
establishing a procurement internship a community that demonstrates irrigation, agricultural processing and
program that has entry requirements, commitment to such rehabilitation or education. MCC Funding will be used to
predetermined procurement training construction through contributions of fund both on-grid and off-grid
requirements, clear job functions for the cash or other property (including land (including photovoltaic, biofuel and
program, a stipend structure for and raw material) or labor, (4) is micro-hydro) rural electricity
internship assignments, and rules for consistent with the standards on investments; provided that, such
compliance and completion. adequacy of the provision of operating investment (1) is consistent with the
costs (including staffing, as well as the policy and strategic plans of the
(b) Project Activity: Support for operation and maintenance, of the Ministry of Energy, the Electric
Community Services (‘‘Community facilities) adopted by MiDA with the Corporation of Ghana, the Volta River
Services Activity’’) approval of MCC, (5) meets criteria Authority and other parties as may be
The Community Services Activity is satisfying cost effectiveness, (6) is agreed from time to time between MiDA
designed to complement the Agriculture within a district in which the and MCC, (2) is in a community that
Project by providing educational, water Agriculture Project is being demonstrates commitment to such
and sanitation and rural electrification implemented and (7) does not create construction through contributions of
infrastructure in the Intervention Zones any adverse environmental or social cash or other property (including land
and by enhancing the capacity of local impact under the standards adopted by or raw material) or labor, (3) is
consistent with the standards on (ii) Connection of the rural banks and 4. Donor Coordination; Role of Civil
adequacy of the provision of operating their branches to a wide area network. Society
costs (including staffing, as well as the The rural banks and their branches will The Procurement Capacity Activity
operation and maintenance, of the be connected through a grid to complements the activities of other
facilities) and cost recovery mechanisms transform their product offerings and to donors. DFID is actively supporting the
adopted by MiDA with approval of reduce their operating expenses. Public Procurement Board (‘‘PPB’’) in
MCC, (4) is within a district in which (iii) Support for the software to
Ghana with an interest in developing
the Agriculture Project is being introduce check truncation, hardware to
procurement capacity within existing
implemented, (5) meets criteria create a system for the automated
government bodies. The increased
satisfying cost effectiveness, and (6) clearing of electronic payments and
demand for public sector procurement
does not create any adverse technical assistance to review and
propose amendments to the existing capacity created by the recent
environmental or social impact under enactment of the Public Procurement
the standards adopted by MiDA with legal and regulatory structure for
payments under Ghana’s national Act of 2003 (Act 663) allows for
the approval of MCC; provided, further, multiple donors to be involved without
that the foregoing may be adjusted based payment system.
(iv) National campaign to educate duplication of efforts. In addition,
on the results of the relevant SEA upon policy and regulatory initiatives funded
its completion. businesses, banks, and consumers
regarding the benefits of the Financial under this Rural Development Project
(v) With respect to the activities will be designed to complement and
identified in Sections 2(b)(ii), (iii) and Services Activity to generate demand for
use of the electronic payment products. support the efforts of other donors
(iv) of this Schedule 3 to Annex I, the (including the World Bank) that are
implementation of the environmental A broad-based urban and rural
education campaign will demonstrate leading similar initiatives at the regional
and social mitigation measures and district levels.
including compensation of individuals, the benefits of these new products and
of the institutions that offer them. The Community Services Activity
residences and businesses affected by builds on the Community Based Rural
such improvements and upgrades, 3. Beneficiaries Development Program, funded by the
consistent with the World Bank’s The Procurement Capacity Activity World Bank and Agence Française de
Operational Policy on Involuntary will directly benefit Ghana as Développement, strengthening local
Resettlement (OP 4.12). approximately 11 to 15% of all goods government service delivery, providing
(c) Project Activity: Strengthening of and services produced in Ghana are capacity building to local government
Rural Financial Services (‘‘Financial consumed through public units and building substantial
Services Activity’’) procurements. The Community Services enhancements to the quality and
Activity will primarily benefit the same productivity of rural communities. The
The Financial Services Activity is populations as the Agriculture Project, Community Services Activity will also
designed to extend the depth and value that is, the residents of the districts in be in line with efforts of the
of financial services provided to rural the Intervention Zones. Institutional Government and other donors to
populations including farmers by beneficiaries will also include the local strengthen local government institutions
reinforcing their integration into the government institutions (e.g., the in order to facilitate the delivery of
cash economy, as well as widening their district assemblies and their area education and water and sanitation
access to savings, credit and cash councils). Finally, rural inhabitants will infrastructure. The district assemblies
transfer services. It will build on the benefit from the continuing devolution and area councils are assuming
capabilities of the rural banks that are and decentralization of provision of a increasing responsibility for planning,
privately-owned generally by members full range of community services, thus coordinating and executing donor
of the local communities. These projects increasing community empowerment. activities in their respective areas.
will connect the rural banks into the The beneficiaries of the Financial The efforts to automate the rural
national payments systems of Ghana, Services Activity will include the banks and to connect them through a
and will also facilitate internal and economically active population in rural wide-area-network under the Financial
international remittance flows. In areas as actual or potential clients of the Services Activity are extensions and
addition, if there is sufficient MCC rural banks, and more broadly, all users intensifications of the efforts of the
Funding, and if Ghana Microfinance of financial services. The outreach of World Bank, African Development Bank
Network lacks other financial support to new financial services to rural and International Fund for Agricultural
maintain its microfinance institution communities and the poor should create Development, first, to create Apex Bank
data collection and performance incentives to de-emphasize cash to provide services to the rural banks
monitoring activities, MCC may, at its transactions in favor of checks and other and, second, to begin the process of
option, provide financial support to payment instruments, and the direct automation using a common software.
Ghana Microfinance Network for such savings from such changeover will Finally, the civil society will play a
maintenance. include, among others, a reduction in key role in community by overseeing
Specifically, MCC Funding will the national currency printing bill, the the organization, information
support the following: very substantial costs of secure currency dissemination, project implementation,
(i) Extension and intensification of the transport, and the material interest and monitoring and evaluation with
program initiated under the World Bank expense that the Bank of Ghana incurs respect to the Rural Development
Rural Financial Strengthening Project to in issuing securities to absorb excess Project.
automate the accounting systems of liquidity at the end of the cocoa season.
substantially all of the 121 rural banks The automation of the rural banks will 5. U.S. Agency for International
(and their branches) using a common also improve and streamline the Development
software platform. Priority will be given supervision of these institutions by the USAID has supported a number of
to automating those rural banks and Bank of Ghana, and otherwise improve programs in the education sector which
their branches located in the the breadth and speed of management led to the construction of classrooms,
Intervention Zones. reporting systems. staff houses and latrines, in addition to
a program entitled Strategies for relevant Supplemental Agreements. proposals. Notwithstanding the
Advancing Girls’ Education. USAID has MiDA will ensure that environmental foregoing, MiDA may also consider,
also undertaken projects in community and social assessment responsibilities using a process developed subject to
water and sanitation, including will be included in the bidding MCC approval, any unsolicited
provision of hygiene education. The documents for the design or supervisory proposals it might receive.
Rural Development Project will firms, the construction firms, the
Annex II—Summary of Multi-Year
continue to advance the objectives of independent technical auditing firms
Financial Plan
these USAID programs while also and any project management advisors.
greatly expanding on them to MiDA will ensure that HIV awareness This Annex II to the Compact (the
complement the Agriculture Project. and worker safety training will be ‘‘Financial Plan Annex’’) summarizes
included as well in the bidding the Multi-Year Financial Plan for the
6. Sustainability Program. Each capitalized term in this
documents for the construction firms. In
The Procurement Capacity Activity addition, EMPs and RAPs, in form and Financial Plan Annex shall have the
will create ‘‘educational capital,’’ in the substance satisfactory to MCC, will be same meaning given such term
form of curricula and diploma developed and implemented under the elsewhere in this Compact. Unless
programs, which will serve a longer- Rural Development Project and otherwise expressly stated, each Section
term goal of capacity building within monitored by MiDA as necessary during reference herein is to the relevant
the Government. The Procurement the implementation of the Rural Section of the main body of the
Capacity Activity is designed to Development Project. Any MCC Compact.
continue as an institutional capacity Disbursements for construction will be
program after the expiration of the 1. General
contingent upon issuance of
Compact Term, under the direction of environmental permits, as needed, or A multi-year financial plan summary
the PPB. During the Compact Term, the any other Government statutory (‘‘Multi-Year Financial Plan Summary’’)
various ministries of the Government requirements. The Government will is attached hereto as Exhibit A. By such
will be required to present sustainable fund any project-related environmental time as specified in the Disbursement
and economically viable plans to mitigation costs (including resettlement Agreement, MiDA will adopt, subject to
maintain and provide continuing costs) that are not already covered by MCC approval, a Multi-Year Financial
education for their respective MCC Funding pursuant to Section Plan that includes, in addition to the
procurement staff. The Community 2(b)(v) of this Schedule 3 to Annex I. multi-year summary of estimated MCC
Services Activity will ensure Funding and the Government’s
appropriate measures for adequate cost 7. Policy; Legal Reform; and Procedural contribution of funds and resources, an
recovery and continuing operation and Changes estimated draw-down rate for the first
maintenance as a condition precedent to The Parties have identified the year of the Compact Term based on the
approval of investments, providing a following policy, legal and regulatory achievement of performance milestones,
basis to ensure sustainability after reforms and actions that the as appropriate, and the satisfaction or
construction. Rural banks participate Government shall pursue in support, waiver of conditions precedent. Each
voluntarily in the wide area network and to reach the full benefits, of the year, at least thirty (30) days prior to the
activity, subject to a commitment to Rural Development Project, the anniversary of the Entry into Force, the
maintain equipment and service from satisfactory implementation of which Parties shall mutually agree in writing
their operating budgets beyond the will be conditions precedent to certain to a Detailed Budget for the upcoming
Compact Term. MCC Disbursements as provided in the year of the Program, which shall include
The environmental and social Disbursement Agreement: a more detailed budget for such year,
sustainability of the Rural Development (a) The PPB shall develop a funding taking into account the status of the
Project will be assured through ongoing and sustainability plan for Procurement Program at such time and making any
consultations with the public regarding Capacity Activity (including the amount necessary adjustments to the Multi-Year
the manner in which the Rural of such funding) in form and substance Financial Plan.
Development Project is being satisfactory to MCC.
implemented. SEAs will be conducted (b) Service norms defining expected 2. Implementation and Oversight
in each Intervention Zone affected by provision of relevant services to rural The Multi-Year Financial Plan and
the Rural Development Project and, as communities, and standards for each Detailed Budget shall be
necessary, environmental and social appropriate designs, including initial implemented by MiDA, consistent with
analyses (that include an analysis of the capital cost and estimated continuing the approval and oversight rights of
gender impacts of the Rural operating and maintenance costs, will MCC and the Government as provided
Development Project) will be be agreed among the various in this Compact, the Governing
conducted, as part of the technical Government Affiliates, including the Documents and the Disbursement
survey and design of major investments relevant ministries, departments and Agreement.
in any physical infrastructure under the agencies, and adopted by MiDA, subject
Rural Development Project to determine 3. Estimated Contributions of the Parties
to approval of MCC, for all investments
the environmental impacts and to be undertaken under the Community The Multi-Year Financial Plan
existence of economic and physical Services Activity. Summary identifies the estimated
displacements, if any. Furthermore, the annual contribution of MCC Funding for
Government will ensure, directly or 8. Proposals Program administration, M&E and each
through MiDA (or any other Permitted Public solicitations for proposals are Project. The Government’s contribution
Designee), that environmental and anticipated to procure goods, works and of resources to Program administration,
social mitigation measures are services, as appropriate, to implement M&E and each Project shall consist of (a)
developed and implemented for each all Project Activities under the Rural ‘‘in-kind’’ contributions in the form of
Project Activity under the Rural Development Project. MiDA will Government Responsibilities and any
Development Project in accordance with develop, subject to MCC approval, a other obligations and responsibilities of
the provisions of this Compact and any process for consideration of all such the Government identified in this
Compact, and (b) such other provided in Section 4(a)(iv) of Annex I, Section 2.2(a) of this Compact, this
contributions or amounts as may be the Parties may, upon agreement of the Annex II or elsewhere in the Compact.
identified in relevant Supplemental Parties in writing and without amending
Agreements between the Parties or as the Compact, change the designations 5. Conditions Precedent; Sequencing
may otherwise be agreed by the Parties; and allocations of funds among the MCC Funding will be disbursed in
provided, in no event shall the Projects, the Project Activities, or any tranches. The obligation of MCC to
Government’s contribution of resources activity under Program administration approve MCC Disbursements and
be less than the amount, level, type and or M&E, or between a Project identified
Material Re-Disbursements for the
quality of resources required effectively as of the Entry into Force and a new
Program is subject to satisfactory
to carry out the Government project, without amending this
Compact; provided, however, that such progress in achieving the Objectives and
Responsibilities or any other
reallocation (a) is consistent with the on the fulfillment, deferral or waiver of
responsibilities or obligations of the
Objectives and the Implementation any conditions precedent specified in
Government under or in furtherance of
this Compact. Documents, (b) shall not materially the Disbursement Agreement for the
adversely impact the applicable Project, relevant activity under the Program. The
4. Modifications Project Activity (or any component sequencing of Project Activities or sub-
The Parties recognize that the thereof), or any activity under Program activities and other aspects of how the
anticipated distribution of MCC administration or M&E as specified in Parties intend the Program to be
Funding among the various activities for this Annex II, (c) shall not cause the implemented will be set forth in the
Program administration, M&E, the amount of MCC Funding to exceed the Implementation Documents, including
Projects and the Project Activities will aggregate amount specified in Section the Work Plan for the Program (and each
likely require adjustment from time to 2.1(a) of this Compact, and (d) shall not component thereof), and MCC
time during the Compact Term. In order cause the Government’s obligations or Disbursements and Re-Disbursements
to preserve flexibility in the responsibilities or overall contribution will be made consistent with such
administration of the Program, as of resources to be less than specified in sequencing.
EXHIBIT A.—MULTI-YEAR FINANCIAL PLAN SUMMARY

(US $ ’000)
Project
Year 1 Year 2 Year 3 Year 4 Year 5 Total
1. Agriculture Project:
(a) Commercial Training Activity ...................................................... 9,542 14,081 17,511 15,946 8,935 66,015
(b) Irrigation Activity .......................................................................... ................ 942 8,679 11,378 6,609 27,608
(c) Land Activity ................................................................................ 2,790 2,698 2,343 1,705 1,152 10,688
(d) Post-Harvest Activity ................................................................... 3,641 6,504 6,747 2,782 702 20,376
(e) Credit Activity .............................................................................. 14,300 12,200 13,100 10,300 8,500 58,400
(f) Feeder Roads Activity .................................................................. 2,344 10,644 21,955 22,954 ................ 57,897
Sub-Total ................................................................................... 32,617 47,069 70,335 65,065 25,898 240,984
2. Transportation Project:
(a) N1 Activity ................................................................................... 13,099 11,200 18,576 28,752 29,669 101,296
(b) Trunk Roads Activity ................................................................... 1,484 6,739 13,900 14,331 ................ 36,454
(c) Ferry Activity ................................................................................ 263 2,141 2,950 ................ ................ 5,354
Sub-Total ................................................................................... 14,846 20,080 35,426 43,083 29,669 143,104
3. Rural Development Project:

(a) Procurement Capacity Activity .................................................... 447 921 950 ................ ................ 2,318
(b) Community Services Activity ....................................................... 7,500 15,000 22,500 30,000 ................ 75,000
(c) Financial Services Activity ........................................................... 7,576 5,189 7,078 4,127 ................ 23,970
Sub-Total ................................................................................... 15,523 21,110 30,528 34,127 ................ 101,288
4. Monitoring and Evaluation 3,000 3,000 3,000 3,000 3,000 15,000
Sub-Total ................................................................................... 3,000 3,000 3,000 3,000 3,000 15,000
5. Program Administration and Audits:

(a) Program Administration (MiDA) .................................................. 4,915 5,188 5,326 5,573 5,852 26,854
(b) Fiscal Agent ................................................................................ 300 1,073 1,608 1,678 716 5,375
(c) Procurement Agent ..................................................................... 310 1,013 1,519 1,585 677 5,104
(d) Audit ............................................................................................ 1,500 1,500 1,500 1,500 1,500 7,500
(e) Strategic Environmental Assessments ....................................... 1,800 ................ ................ ................ ................ 1,800
Sub-Total ................................................................................... 8,825 8,774 9,953 10,336 8,745 46,633
Total Estimated MCC Contribution ............................................ 74,811 100,033 149,242 155,611 67,312 547,009
Annex III—Description of the M&E Plan the Program and the timeline for Projects and Project Activities to
achieving them. determine their impact and likely
This Annex III to the Compact (the sustainability (the ‘‘Evaluation
‘‘M&E Annex’’) generally describes the 1. Overview
Component’’) and (c) other components
components of the Monitoring and As a condition precedent to certain of the M&E Plan described below.
Evaluation Plan for the Program, and MCC Disbursements as provided in the Information regarding the Program’s
how the progress toward the Compact Disbursement Agreement, the parties performance, including the M&E Plan,
Goal will be measured. Each capitalized shall formulate an M&E Plan that and any amendments or modifications
term in this M&E Annex shall have the specifies (a) how the implementation of thereto, as well as periodically-
same meaning given such term the Program and progress toward the generated reports, will be made publicly
elsewhere in this Compact. This M&E Compact Goal and Objectives will be available on the MiDA Web site and
Annex represents the agreement monitored (the ‘‘Monitoring elsewhere. The Compact Goal, the
between the Government and MCC on Component’’), (b) a methodology, Program Objective and the Project
the Compact Goal and the Objectives of process and timeline for the evaluation Objectives are summarized in the
of planned, ongoing, or completed following diagram:
2. Monitoring Component process for measuring, and reporting on, each of the Project Activities (each, an
To monitor progress toward the the Indicators at several levels. First, the ‘‘Outcome’’) in order to provide early
achievement of the Compact Goal and indicators for the Compact Goal (each, measures of progress towards the
the Objectives, the Monitoring a ‘‘Compact Goal Indicator’’) will accomplishment of the Project
Component of the M&E Plan shall measure the results for the overall Objective. Further, other indicators will
contain the following elements: Program on the intended beneficiaries be included in the M&E Plan to measure
(a) Indicators. The M&E Plan shall (collectively, the ‘‘Beneficiaries’’). the delivery of goods and services under
measure the results of the Program using Second, the indicators for the Program the Project Activities.
quantitative, objective and reliable data Objective (each, an ‘‘Objective (i) Compact Goal Indicators. The M&E
(‘‘Indicators’’). Each Indicator will have Indicator’’) will measure the ultimate Plan shall contain the Compact Goal
one or more targets that quantify the result for the Program. Third, Indicators and their definitions, as listed
result and the expected time by which intermediate indicators (each, an in the table below. The corresponding
that result will be achieved (each, a ‘‘Outcome Indicator’’) will measure the Targets to be achieved are in the
‘‘Target’’). The M&E Plan will detail the intermediate results achieved under following tables:
COMPACT GOAL INDICATORS: DEFINITIONS

[Compact Goal: Reduce poverty through economic growth]
Indicator Definition
Crop income (Northern Zone) (US$) ................................. Net income per household from growing yams, sorghum and groundnuts (as proxies
of the most likely crops grown).2 Northern Zone is comprised of the following five
districts: Savelugu Nanton, Tolon Kumbungu, Tamale, West Mamprusi and
Karaga.
EN21AU06.012</GPH>
COMPACT GOAL INDICATORS: DEFINITIONS—Continued

Crop income (Afram Basin Zone—East) (US$) ................. Net income per household from growing maize, yams and cassava (as proxies of the
most likely crops grown). Afram Basin Zone—East is comprised of the following
two districts: Fanteakwa and Kwahu South.
Crop income (Afram Basin Zone—West) (US$) ................ Net income per household from growing maize, yams and cassava (as proxies of the
most likely crops grown). Afram Basin Zone—West is comprised of the following
four districts: Ejura Sekyedumasi, Afram Plains, Sekyere East and Sekyere West.
Crop income (Southern Zone) (US$) ................................. Net income per household from growing pineapples and vegetables (as proxies of
the most likely crops grown). Southern Zone is comprised of the following twelve
districts: Gomoa, Awutu Efutu Senya, Akuapim South, Manya Krobo, Dangme
West, Yilo Krobo, North Dayi, Hohoe, Ketu, Keta, South Tongu and Akatsi.
Aggregate poverty gap of beneficiaries (US$) .................. Income value at the poverty line minus average income of beneficiaries, multiplied by
the number of beneficiaries, disaggregated by each Intervention Zone. Income
value at the poverty line is defined by the Ghana Statistical Service’s Ghana Living
Standards Survey. The fifth round of this survey was conducted in 2006.
2 Data will be reported on actual crops grown in all Intervention Zones. Proxies were used to estimate baseline and target values.
COMPACT GOAL INDICATORS: BASELINES AND TARGETS

Targets/Year
Indicator
Baseline 1 2 3 4 5
Crop income (Northern Zone) (US$) ............................ 3 $700 ................ ................ ................ ................ 4 135%
increase over
baseline.
Crop income (Afram Basin Zone—East) (US$) ........... 5 820 ................ ................ ................ ................ 6 55% increase over base-
line.
Crop income (Afram Basin Zone—West) (US$) .......... 7 540 ................ ................ ................ ................ 8 42% increase over base-
line.
Crop income (Southern Zone) (US$) ........................... 9 1,860 ................ ................ ................ ................ 10 33% increase over
baseline.
Aggregate poverty gap of beneficiaries (US$) ............. TBD TBD (during the second quarter of 2007)
3 Baselineassumes that 2 hectares are cultivated.
4 Target assumes that 2.2 hectares are cultivated.
5 Baseline assumes that 1 hectare is cultivated.
7 Baseline assumes that 1 hectare is cultivated.
9 Baseline assumes that 2 hectares are cultivated.
10 Target assumes that farmers transition from maize, yam and cassava production to 2 hectares of pineapple and 1 hectare of vegetable
cultivation.
(ii) Objective Indicators and Outcome Indicators and their definitions, as listed Targets to be achieved are in the tables
Indicators. The M&E Plan shall contain in the tables below. The corresponding following the definitions.
the Objective Indicators and Outcome
OBJECTIVE INDICATORS: DEFINITIONS

Objective: Increase production and productivity of high-value cash and food crops in the Intervention Zones in Ghana.
Production of staple crops (metric tons) ............................ Metric tons of maize, yams, cassava and groundnuts (as proxies of most likely crops
grown) grown and produced by the FBOs participating in the Program.
Production of high-value crops (metric tons) ..................... Metric tons of pineapple (as proxy of most likely crop grown) grown and produced by
the FBOs participating in the Program, of which 60% are for export markets and
40% for domestic markets.
Productivity of land (metric tons/hectare): maize .............. Metric tons/hectare of maize (as proxy of most likely crop grown) grown and pro-
duced.
Productivity of land in the Northern Zone (metric tons/ Metric tons/hectare of yam (as proxy of most likely crop grown) grown and produced.
hectare): yams.
Productivity of land (metric tons/hectare): export-grade Metric tons/hectare of pineapple (as proxy of most likely crop grown) grown and pro-
pineapple. duced.
Objective: Enhance the competitiveness of high-value cash and food crops in local and international markets.
Additional Ghanaian agriculture exports (metric tons): Additional metric tons of pineapple (as proxy of most likely crop exported) exported.
pineapple.
OBJECTIVE INDICATORS: DEFINITIONS—Continued

Additional Ghanaian agriculture exports (metric tons): Additional metric tons of Asian vegetables (as proxy of most likely crop exported) ex-
Asian vegetables. ported.
The ratio of (i) price of Ghanaian imported into European Price (including cost of Cargo, Insurance and Freight) of pineapple (as proxy of most
markets (Euro/kg) to (ii) price of non-Ghanaian im- likely crop exported), imports into the European markets from Ghana, divided by
ported into European market (Euro/kg). price (including cost of Cargo, Insurance and Freight) of pineapple imported into
the European markets from countries other than Ghana. Import data will be based
on information published by Eurostat.
OBJECTIVE INDICATORS: BASELINES AND TARGETS

Year
Indicator
Baseline 1 2 3 4 5
Objective: Increase production and productivity of high-value cash and food crops in the Intervention Zones in Ghana.
Production of staple crops (metric 430,000 ........ ............................... 1% increase over 4% increase over 11% increase over
tons). baseline. baseline. baseline.
Production of high-value crops (metric 225,000 ........ 2% increase over 5% increase over 16% increase over 50% increase over
tons). baseline. baseline. baseline. baseline.
Productivity of land (metric tons/hec- 1.9 ........ ............................... 1% increase over 4% increase over 12% increase over
tare): maize. baseline. baseline. baseline.
Productivity of land in the Northern 7 ........ ............................... 61% increase over 65% increase over 75% increase over
Zone (metric tons/hectare): yams. baseline. baseline. baseline.
Productivity of land (metric tons/hec- 8 ........ ............................... 1% increase over 8% increase over 26% increase over
tare): export-grade pineapple. baseline. baseline. baseline.
Objective: Enhance the competitiveness of high-value cash and food crops in local and international markets.
Additional Ghanaian agriculture ex- 0 ........ ............................... 8,300 ..................... 14,500 ................... 21,700.
ports (metric tons): pineapple.
Additional Ghanaian agriculture ex- 0 ........ ............................... 1,344 ..................... 2,192 ..................... 3,178.
ports (metric tons): Asian vegetables.
The ratio of (i) price of Ghanaian im- 0.75 ........ ............................... 0.75 ....................... 0.78–0.81 .............. 0.81–0.88.
ports into European markets (Euro/
kg) to (ii) price of non-Ghanaian im-
ports into European market (Euro/
kg).
OUTCOME INDICATORS: DEFINITIONS

[Agriculture Project]
Number of farmers adopting new technologies and farm- Number of farmers in the FBOs participating in the Program that adopt new tech-
ing methods. nologies methods and farming methods, assuming an 85% adoption rate.
Percentage of post harvest loss at farmgate (metric lost/ (i) Metric tons of post harvest lost, divided by (ii) metric tons of total harvest tons pro-
metric tons produced). duced at the farmgate.
SMEs processing products and/or providing inputs to TBD.
farmers.
Irrigation Activity:
Number of hectares irrigated ...................................... Number of hectares irrigated as a result of the Program.
Land Activity:
Number of days to conduct a land transaction .......... Number of days to purchase, rent or sell a parcel of land from initiation of negotiation
with current landowner to registration in title or deeds registry of the property right
acquired.
Number of land disputes in the pilot registration dis- Number of land disputes encountered during inventory of land rights for the pilot reg-
tricts. istration districts and on record at the relevant district courts as of Entry into Force,
disaggregated by region.
Registration of land rights in the pilot registration dis- Percentage of targeted parcels registered in the title registry.
tricts.
Post-Harvest Activity:
Volume of products passing through post-harvest Metric tons of pineapple, among other crops, passing through small-scale storage fa-
treatment (metric tons). cilities, packhouse pre- coolers or packhouses.
Credit Activity:
Portfolio-at-risk of agricultural loan fund ..................... Share of value of all loans disbursed from the agricultural loan that have one or more
fund installments of principal or interest past due over thirty (30) days,
disaggregated by short-term and medium-term loans.
OUTCOME INDICATORS: DEFINITIONS—Continued

Value of loans disbursed to clients from agricultural Value of loans disbursed from the agricultural loan fund for on-farm and off-farm in-
loan fund (US$). vestment by institutions (including financial institutions, input suppliers, etc.),
Number of additional loans ......................................... Number of loans disbursed from the agricultural loan fund for on-farm and off-farm
investment by institutions (including financial institutions, input suppliers, etc.),
Feeder Roads Activity:
Vehicle operating costs (on roads requiring minor re- Vehicle operating costs including both operation and maintenance costs and travel
habilitation). time, disaggregated by road segment. Minor rehabilitation consists of re- gravelling
(i.e., change from poor gravel to improved gravel surface).
Vehicle operating costs (on roads requiring medium Vehicle operating costs including both operation and maintenance costs and travel
rehabilitation). time, disaggregated by road segment. Medium rehabilitation consists of upgrading
road surface from average gravel to bitumen surface.
Vehicle operating costs (on roads requiring major re- Vehicle operating costs including both operation and maintenance costs and travel
habilitation). time, disaggregated by road segment. Major rehabilitation consists of upgrading
road surface from poor gravel to bitumen surface.

[Transportation Project]
N–1 Activity:

Volume capacity ratio ........... Number of vehicles on road divided by the number of vehicles at road capacity.
Vehicles per hour at peak Number of vehicles on road, disaggregated by vehicle type, at peak traffic hour.
hour.
Travel time at peak hour ...... Travel time in minutes to traverse the 14 kilometers of road upgraded at peak traffic hour.
International roughness Road-surface quality measure (meters in height per kilometers distance).
index.
Trunk Roads Activity:
Annual average daily Number of vehicles per day adjusted for time-of-day and seasonal differences for each road, disaggregated by
traffic. vehicle type. Rate of increase in traffic volume is in addition to the estimated growth rate in traffic of 6%.
International roughness Road-surface quality measure (meters in height per kilometers distance) for each road. Minor rehabilitation con-
index (of roads requir- sists of re-gravelling (i.e., change from poor gravel to improved gravel surface).
ing minor rehabilita-
tion).
International roughness Road-surface quality measure (meters in height per kilometers distance) for each road. Major rehabilitation con-
index (of road requir- sists of upgrading road surface from poor gravel to bitumen surface.
ing major rehabilita-
tion).
Ferry Activity:
Travel time for walk-on Average time spent by walk-on passengers and small vehicles to cross Volta River, including time spent waiting
passengers and small to board ferry and to on- and off-load.
vehicles.
Travel time for trucks .... Average time spent by trucks to cross Lake Volta, including time spent waiting to board ferry and to on- and off-
load.
Annual average daily Number of vehicles per day, adjusted for time-of-day and seasonal differences, disaggregated by vehicles type.
traffic (vehicle).
Annual average daily Number of passengers per day, adjusted for time-of-day and seasonal differences.
traffic (passengers).

[Rural Development Project]
Procurement Capacity Activ-

ity:
Time per procurement .. Amount of time to execute contract award from the point of receiving a requirement for processing to contract
award, disaggregated by the size of each award as follows: (i) US$ 2,500 and below, (ii) US$ 2,501–US$
10,000, (iii) US$ 10,001–US$ 100,000, (iv) US$ 100,001–US$ 500,000 and (v) US$ 500,001 and above.
OUTCOME INDICATORS: DEFINITIONS—Continued

Quality of procurement A randomly-selected sample of procurements will be evaluated each year to assess the outcomes of the procure-
ments as compared to the outcomes of similar procurements in the districts not participating in the Program.
Community Services Activity:
Local Government Service
Delivery Sub-Activity:
Score card of citizen TBD.
satisfaction with serv-
ices.
Education Facilities Sub-Ac-
tivity:
Gross enrollment rates Number of students enrolled in school divided by the number of individuals of appropriate school age, in the rel-
evant district (or other area).
Gender parity in school Number of females enrolled in school divided by the number of males enrolled in school.
enrollment.
Water and Sanitation Facili-
ties Sub-Activity:
Distance to collect water Distance between house and water source in kilometers.
Time to collect water ..... Time spent collecting water, including travel and waiting time.
Distance to sanitation Distance between house and sanitation facility in kilometers.
facility.
Travel time to sanitation Time spent traveling to and waiting at sanitation facility.
facility.
Incidence of guinea Number of individuals suffering from illness attributed to guinea worm, diarrhea and bilharzia divided by the num-
worm, diarrhea or ber of individuals, in the relevant district (or other area).
bilharzia.
Average number of days Number of days spent accessing treatment and recovering from illness attributed to guinea worm, diarrhea or
lost due guinea worm, bilharzia.
diarrhea or bilharzia.
Rural Electrification Sub-Ac-
tivity:
Percentage of house- Number of houses, schools and agricultural processing plants with electricity connections divided by the total
holds, schools and number of households, schools, and agricultural processing plants in the relevant district (or other processing
agricultural processing area).
plants in target dis-
tricts with electricity.
Financial Services Activity:
Number of inter-bank Number of checks received by rural banks plus number of remittances received by rural banks.
transactions.
Value of deposit ac- Cedi value of total deposits in rural banks.
counts in rural banks.
OUTCOME INDICATORS: BASELINES AND TARGETS

Targets / year
Indicator
Baseline 1 2 3 4 5
Commercial Training Activity:

Number of farmers adopting new 0 ........ 5,100 ..................... 12,750 ................... 15,300 ................... 17,850.
technologies and farming meth-
ods.
Percentage of post harvest lost at 20% ........ 10–14% ................ 10–14% ................ 10–14% ................ 10–14%.
farmgate (metric tones lost/met-
ric tons produced).
SMEs processing products and/or TBD TBD
providing inputs to farmers.
Irrigation Activity:
Number of hectares irrigated ........ 0 0 280 ........................ 1,100 ..................... 1,720 ..................... 1,960.
Land Activity:
Number of days to conduct a land TBD ........ 50% decrease 67% decrease
transaction. from baseline. from baseline.

Number of land disputes in the TBD ........ ............................... 30% decrease ............................... 50% decrease
pilot registration districts. from baseline. from baseline.
Registration of land rights in the TBD ........ ............................... 30% increase from ............................... 100% increase
pilot registration districts. baseline. from baseline.
Post-Harvest Activity:
OUTCOME INDICATORS: BASELINES AND TARGETS—Continued

Targets / year
Indicator
Baseline 1 2 3 4 5
Volume of products passing 0 ........ 111,820 ................. 129,900 ................. 143,400..

through post-harvest treatment
(metric tons).
Credit Activity:
Portfolio-at-risk of agricultural loan 0% ........ 20% ...................... 20% ...................... 20% ...................... 20%.
fund.
Value of loans disbursed to clients 0 ........ 4,500 ..................... 12,000 ................... 14,500 ................... 17,000.
from agricultural loan fund(US$).
Number of additional loans .......... 0 ........ 5,000 ..................... 13,000 ................... 15,500 ................... 18,000.
Feeder Roads Activity:
Vehicle operating costs (on roads TBD ........ ............................... 20% decrease 20% decrease 20% decrease
requiring minor rehabilitation). from baseline. from baseline. from baseline.
requiring medium rehabilitation). from baseline. from baseline. from baseline.
requiring major rehabilitation). from baseline. from baseline. from baseline.

Targets / year
Indicator
Baseline 1 2 3 4 5
N–1 Activity:
Volume capacity ratio ......................... 0.85–1 ..................... ........ ................ ................ .................................. 0.26.
Vehicles per hour at peak hour .......... >2000 ...................... ........ ................ ................ .................................. 3,120.
Travel time at peak hour ..................... 60 minutes ............... ........ ................ ................ .................................. 20 minutes.
International roughness index ............. TBD ......................... ........ ................ ................ .................................. 2.5.
Trunk Roads Activity:
Annual average daily traffic ................ 570 .......................... ........ ................ ................ 35% increase in traf- 35% increase in traf-
fic volume. fic volume.
International roughness index (of 9–12 ........................ ........ ................ 6.0 6.0 ........................... 6.0.
roads requiring minor rehabilitation).
International roughness index (of 9–12 ........................ ........ ................ 3.5 3.5 ........................... 3.5.
roads requiring major rehabilitation).
Ferry Activity:
Travel time for walk-on passengers 150 minutes ............. TBD
and small vehicles.
Travel time for trucks .......................... 370 minutes ............. TBD
Annual average daily traffic (vehicle) 53 ............................ TBD
Annual average daily traffic (pas- 541 .......................... TBD
senger).

Targets/years
Indicator Baseline
1 2 3 4 5
Procurement Capacity Activity:
Time per procurement ............................................................ TBD ................. TBD

Quality of procurement
Community Services Activity:
Local Government Service Delivery Sub-Activity:
Score card of citizen satisfaction with services ...................... TBD ................. TBD
Education Facilities Sub-Activity:
Gross enrollment rates ........................................................... TBD ................. TBD (during the second quarter of 2007)
Gender parity in school enrollment
OUTCOME INDICATORS: BASELINES AND TARGETS—Continued

Targets/years
Indicator Baseline
1 2 3 4 5
Water and Sanitation Facilities Sub-Activity:
Distance to collect water ........................................................ TBD ................. TBD (during the second quarter of 2007)
Time to collect water
Distance to sanitation facility
Travel time to sanitation facility
Incidence of guinea worm, diarrhea or bilharzia
Average number of days lost due guinea worm, diarrhea or
bilharzia
Rural Electrification Sub-Activity:
Percentage of households, schools and agricultural proc- TBD ................. TBD (during the second quarter of 2007)
essing plants in target districts with electricity.
Financial Services Activity:
Number of inter-bank transactions ......................................... 210,000 ............ TBD (during the second quarter of 2007)
Value of deposit accounts in rural banks ............................... 1,680 billion
Cedis.
(iii) The M&E Plan will also include these assessments available to the and in a statistically valid way, the
a number of activity-level measures that public on their Web site. causal relationship between the
will track progress toward realizing the (d) Data Quality Reviews. As Compact Goal (to the extent possible),
direct outputs of the Projects and Project determined in the M&E Plan or as the Objectives and Outcomes; (ii)
Activities. Examples of the indicators otherwise requested by MCC, the quality determine if, and analyze the reasons
likely to be included in the M&E Plan of the data gathered through the M&E why, the Compact Goal, Objectives and
are: Plan shall be reviewed to ensure that Outcomes were or were not achieved;
(1) Number of farmers receiving data reported are as reliable, timely and and (iii) assess the overlapping benefits
commercial training; valid as resources will allow. The of the Projects.
(2) Number of irrigation facilities objective of any data quality review will (b) Project, Project Activity or Interim
built; and be to verify the quality and the Evaluations. The Evaluation Component
consistency of performance data, across in the M&E Plan will also describe other
(3) Kilometers of road upgraded.
different implementation units and individual Project, Project Activity, or
(b) Beneficiaries. The M&E Plan shall reporting institutions. Such data quality interim evaluations (‘‘Interim
describe the Beneficiaries in detail, reviews also will serve to identify where Evaluations’’). The evaluation
including the expected number of consistent levels of quality are not methodology, timeline, data collection,
beneficiaries, their income, gender and possible, given in-country capacity or and analysis requirements will be
other general demographic other constraints. finalized and detailed in the M&E Plan.
characteristics. Determination of the evaluation
(c) Data Collection and Reporting. 3. Evaluation Component methodologies will be condition
The M&E Plan shall establish guidelines The Program shall be evaluated on the precedent for certain MCC
for data collection and a reporting extent to which the Projects contribute Disbursements as provided in the
framework, including a schedule of to the Compact Goal and Objectives. Disbursement Agreement.
Program reporting and responsible The Evaluation Component shall (c) Ad Hoc Evaluations or Special
parties. In addition, MiDA shall conduct contain the methodology for conducting Studies. In addition to the evaluations
regular assessments of Program the most rigorous impact evaluations described in the M&E Plan, MCC may
performance to measure progress on the feasible and cost-effective, as well as the require ad hoc evaluations or special
Compact Goal and the Objectives, and to process and timeline for analyzing data. studies prior to the expiration of the
alert all Parties to any problems in The Evaluation Component shall Compact Term. If MiDA engages an
implementation of the Program. These contain two types of reports: a Final evaluator, the evaluator shall be an
assessments will report actual results Evaluation and Project, Project Activity, externally contracted independent
compared to the Targets on the or Interim Evaluations. source, subject to the prior written
Indicators referenced in the Monitoring (a) Final Evaluation. MCC will engage approval of MCC, for terms of reference
Component, explain deviations between an independent evaluator to conduct an and final selection, following a tender in
these actual results and Targets, and evaluation of the Program at the accordance with the Procurement
describe any planned actions to address expiration or early termination of the Guidelines, and otherwise in
performance problems. MiDA shall Program (‘‘Final Evaluation’’). The accordance with any relevant
promptly deliver any data or reports it evaluation methodology, timeline, data Implementation Letter or Supplemental
receives to MCC along with any other collection, and analysis requirements Agreement. The cost of an independent
related documents, as specified in the will be finalized and detailed in the evaluation or special study may be paid
M&E Plan or as may be requested from M&E Plan. The Final Evaluation shall, at from MCC Funding. If MiDA requires an
time to time by MCC, and will make a minimum, (i) estimate quantitatively ad hoc independent evaluation or
special study at the request of the Outcomes; provided such assumptions for the relevant Project or Project
Government for any reason, including and risks shall not excuse performance Activity, and substantial compliance
for the purpose of contesting an MCC of the Parties, unless otherwise with the M&E Plan, including any
determination with respect to a Project expressly agreed to in writing by the reporting requirements. In addition, for
or Project Activity or to seek funding Parties. certain activities, collection of baseline
from other donors, no MCC Funding or data will be condition precedent for
MiDA resources may be applied to such 5. Implementation of the M&E Plan certain MCC Disbursements as provided
evaluation or special study without (a) Approval and Implementation. in the Disbursement Agreement.
MCC’s prior written approval. The approval and implementation of the (c) Modifications. Notwithstanding
M&E Plan, as amended from time to anything to the contrary in the Compact,
4. Other Components of the M&E Plan
time, shall be in accordance with this including the requirements of this M&E
In addition to the Monitoring M&E Annex, and any other relevant Annex, the Parties may modify or
Component and the Evaluation Supplemental Agreement or amend the M&E Plan or any component
Component, the M&E Plan shall include Implementation Document. A review of thereof, including those elements
the following components for the the completed portions of the M&E Plan described herein, without amending this
Program, Projects and Project Activities, by the Board of MiDA shall be required Compact; provided, any such
including, where appropriate, roles and prior to the expiration of the first year modification or amendment of the M&E
responsibilities of the relevant parties of the Program. Review and approval of Plan shall be reviewed by the Board of
and Providers: the M&E Plan shall be completed by MiDA and approved by MCC in writing,
(a) Costs. A detailed annual budget time specified in the Disbursement and is otherwise consistent with the
estimate for all components of the M&E Agreement. requirements of this Compact and its
Plan. (b) MCC Disbursement for a Project Objectives, and any relevant
(b) Assumptions and Risks. Any Activity. As a condition to certain MCC Supplemental Agreement between the
assumptions and risks external to the Disbursements as provided in the Parties.
Program that underlie the Disbursement Agreement, there shall be [FR Doc. 06–6914 Filed 8–18–06; 8:45 am]
accomplishment of the Objectives and satisfactory progress on the M&E Plan BILLING CODE 9210–01–P

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Monday,

August 21, 2006

Description Year 1 Year 2 Year 3 Year 4 Year 5 Total

Agriculture Project .................................................................................... 32.6 47.1 70.3 65.1 25.9 241.0

Description Year 1 Year 2 Year 3 Year 4 Year 5 Total

Total .................................................................................................. 74.8 100.1 149.2 155.6 67.3 547.0

Section 5.1 Communications

considered in construing or interpreting

a timely manner. other relevant Supplemental Agreement shall be effective no later

financial information or reviews of in the Disbursement Agreement, or as Disbursements and Re-Disbursements

agree, subject to MCC approval.

EXHIBIT A.—MULTI-YEAR FINANCIAL PLAN SUMMARY

Sub-Total ................................................................................... 32,617 47,069 70,335 65,065 25,898 240,984

Sub-Total ................................................................................... 14,846 20,080 35,426 43,083 29,669 143,104

3. Rural Development Project:

Sub-Total ................................................................................... 15,523 21,110 30,528 34,127 ................ 101,288

4. Monitoring and Evaluation 3,000 3,000 3,000 3,000 3,000 15,000

Sub-Total ................................................................................... 3,000 3,000 3,000 3,000 3,000 15,000

5. Program Administration and Audits:

Sub-Total ................................................................................... 8,825 8,774 9,953 10,336 8,745 46,633

COMPACT GOAL INDICATORS: DEFINITIONS

COMPACT GOAL INDICATORS: DEFINITIONS—Continued

COMPACT GOAL INDICATORS: BASELINES AND TARGETS

OBJECTIVE INDICATORS: DEFINITIONS

OBJECTIVE INDICATORS: DEFINITIONS—Continued

OBJECTIVE INDICATORS: BASELINES AND TARGETS

OUTCOME INDICATORS: DEFINITIONS

OUTCOME INDICATORS: DEFINITIONS—Continued

OUTCOME INDICATORS: DEFINITIONS

OUTCOME INDICATORS: DEFINITIONS

OUTCOME INDICATORS: DEFINITIONS

Procurement Capacity Activ-

OUTCOME INDICATORS: DEFINITIONS—Continued

OUTCOME INDICATORS: BASELINES AND TARGETS

Commercial Training Activity:

transaction. from baseline. from baseline.

OUTCOME INDICATORS: BASELINES AND TARGETS—Continued

Volume of products passing 0 ........ 111,820 ................. 129,900 ................. 143,400..

OUTCOME INDICATORS: BASELINES AND TARGETS

OUTCOME INDICATORS: BASELINES AND TARGETS

Procurement Capacity Activity:

Time per procurement ............................................................ TBD ................. TBD

Community Services Activity:

Local Government Service Delivery Sub-Activity:

Education Facilities Sub-Activity:

OUTCOME INDICATORS: BASELINES AND TARGETS—Continued

Water and Sanitation Facilities Sub-Activity:

Rural Electrification Sub-Activity:

Financial Services Activity:

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