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22 July 2008
[Federal Register: July 22, 2008 (Volume 73, Number 141)]
[Notices]
[Page 42601-42626]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jy08-86]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 08-07]
Notice of Entering Into a Compact With the Government of Burkina
Faso
AGENCY: Millennium Challenge Corporation.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: In accordance with Section 610(b)(2) of the Millennium
Challenge Act of 2003 (Pub. L. 108-199, Division D), the Millennium
Challenge Corporation (MCC) is publishing a summary and the complete
text of the Millennium Challenge Compact between the United States of
America, acting through the Millennium Challenge Corporation, and the
Government of Burkina Faso. Representatives of the United States
Government and the Government of Burkina Faso executed the Compact
documents on July 14, 2008.
Dated: July 17, 2008.
William G. Anderson Jr.,
Vice President & General Counsel, Millennium Challenge Corporation.
Summary of Millennium Challenge Compact With the Government of Burkina
Faso
A. Introduction
Burkina Faso is a landlocked country in Africa's Sahel region,
bordering Benin, Cote d'Ivoire, Ghana, Mali, Niger, and Togo, with a
population of approximately 15.26 million people. It is one of the
poorest countries in the world, ranking 176 out of 177 countries as
surveyed by the United Nations Development Program's 2007 Human
Development Index. In an effort to address constraints to investment,
Burkina Faso has undertaken several broad macroeconomic reforms since
the mid-1990s, including market-oriented reforms, decentralization of
power from the central government to local governments, adoption of a
new labor code, and business climate improvements. In light of these
efforts, in 2007, the International Finance Corporation named Burkina
Faso one of the top reformers in West Africa. In January 2008, Burkina
Faso began a two-year term on the United Nations Security Council.
Despite these reforms, recognitions, and moderate economic gains,
Burkina Faso continues to face severe constraints to growth and poverty
reduction.
B. Program Overview, Budget, and Impact
Constraints are particularly acute in rural areas. Agricultural
activities involve 85 percent of the country's active population and
contribute to approximately 36 percent of GDP and 88 percent of export
earnings. Rural populations in Burkina Faso currently lack access to
basic inputs needed to improve agricultural and livestock productivity,
including secure land, skilled labor, adequate water resources,
sufficient volumes of credit, and adequate access to markets. To
address these constraints, the government of Burkina Faso (``GoBF'')
has proposed a US$480,943,569, five-year Millennium Challenge Compact
(``Compact'') that will consist of four interdependent projects:
Rural Land Governance Project--designed to increase
investment in land and rural productivity through improved land tenure
security and land management;
Agriculture Development Project--designed to expand the
productive use of land in order to increase the volume
[[Page 42602]]
and value of agricultural production in project zones;
Roads Project--designed to enhance access to markets
through investments in the road network; and
BRIGHT 2 Schools Project--designed to increase primary
school completion rates for girls (each of the four projects is
referred to herein as a ``Project'').
Table 1 below sets forth the Compact program (``Program'') budget
at the Project level.
Table 1.--Program Budget by Project
[US$ millions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Component CIF\*\ Year 1 Year 2 Year 3 Year 4 Year 5 Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rural Land Governance Project................................ 1.10 7.21 13.00 15.60 14.08 8.94 59.93
Agriculture Development Project.............................. 4.77 17.91 40.95 44.03 25.28 8.97 141.91
Roads Project................................................ 0.34 3.05 32.97 93.23 58.60 5.94 194.13
Bright 2 Schools Project..................................... 3.00 25.83 ........... ........... ........... ........... 28.83
Monitoring & Evaluation...................................... 0.45 1.72 1.21 1.46 1.36 1.68 7.88
Program Administration and Oversight......................... 6.44 7.95 8.17 8.87 8.45 8.38 48.26
------------------------------------------------------------------------------------------
Total MCC Funding........................................ $16.10 $63.67 $96.30 $163.19 $107.77 $33.91 $480.94
--------------------------------------------------------------------------------------------------------------------------------------------------------
\*\ Compact Implementation Funds (CIF) refer to funding available before the entry-into-force of the Compact.
Important synergies exist among the four Projects. The Agriculture
Development Project will alleviate the constraint of poor water
availability with investments in irrigation infrastructure and water
management. This Project also will increase the availability of rural
credit and provide technical assistance to farmers' groups and
individual households, improving their ability to produce higher-value
agricultural and livestock products. Complementary Rural Land
Governance activities will secure land in the Agricultural Development
Project areas and other areas, reducing economic losses due to land
conflict or risk of conflict and encouraging productive investment in
land. The Roads Project will rehabilitate rural and primary roads near
the production zones, increasing opportunities for farmers to sell
agricultural products and livestock, as well as to buy the necessary
inputs. Finally, the BRIGHT 2 Schools Project will improve girls'
literacy and numeracy skills, which will improve capacity for
productive employment opportunities in the longer term.
1. Rural Land Governance Project ($59.93 million)
The Rural Land Governance Project will assist the GoBF to fulfill
its commitment to achieve a new rural land tenure framework by
addressing the three constraints to rural economic activity, as
identified by the GoBF through a consultative process: (a) Difficult
access to formal land use rights; (b) unclear land rights leading to
endemic and sometimes violent conflict; and (c) poor use of land
resources resulting in land degradation.
A new rural land law is expected to be adopted prior to entry into
force of the Compact, and will be based on the existing, stakeholder-
driven 2007 rural land policy. The Project also will support the GoBF's
implementation of the 2004 decentralization law that authorizes
transfer of key aspects of land governance to municipal governments.
The Project consists of the following three mutually reinforcing
activities:
(a) Legal and Procedural Change and Communication to support the
GoBF's effort to develop and implement improved rural land legislation
and to develop, revise and implement other legal and procedural
frameworks;
(b) Institutional Development and Capacity Building which, in
conjunction with the previous activity, is expected to improve
institutional capacity to deliver land services in rural areas; and
(c) Site-Specific Land Tenure Interventions to ensure that the
previous two activities yield their intended benefits across
municipalities and in targeted agricultural development zones.
Most of the Project's site specific interventions will be scalable
through a phased approach, thus enabling the expected returns on an
initial share of the investments to be tested before the Project is
expanded. Phase one will target 17 municipalities with a complete
package of technical assistance and infrastructure construction, and a
set of up-front investments that are not municipality-specific. The
decision to move forward with phase two will be subject to the
Project's satisfactory performance on specific economic, legal and
policy indicators. Phase two will include the balance of the Compact's
term and target up to 30 additional municipalities for technical
assistance and infrastructure, and expand investments associated with
other sub-activities.
2. Agriculture Development Project ($141.91 million)
The Agriculture Development Project is designed to address core
constraints typical of rural Burkina Faso: (a) Poor water resource
availability and management; (b) weak beneficiary capacity; (c) lack of
access to pricing information, markets, and inputs; and (d) lack of
access to credit. This Project has synergies with MCC's other
investments in rural land governance and roads infrastructure.
Improvements in the road network will reduce constraints that producers
face in terms of isolation from markets and high transport costs, while
investments in land tenure security will be an important factor in
motivating producers to invest time and capital in their operations.
The Project consists of the following three activities:
(a) Water Management and Irrigation to ensure adequate water
availability, water delivery, flood control, and dam safety to support
and protect investments in the Sourou Valley and to ensure better water
resource management in the Como[eacute] Basin;
(b) Diversified Agriculture to build on the delivery of water in
the Project zones by supporting on-farm production and related
activities throughout the agricultural value chain; and
(c) Access to Rural Finance to increase medium- and long-term
credit in the four western regions of Sud-Ouest, Hauts Bassins,
Cascades, and Boucle du Mouhoun.
3. Roads Project ($194.13 million)
Burkina Faso's Poverty Reduction Strategy Paper identifies
infrastructure development as a critical priority for increased
economic growth. For a
[[Page 42603]]
landlocked country, the road transport network is an important asset
for economic development to facilitate trade and communications with
regional and international markets and to improve local connectivity of
farms to markets. Road network investments also improve access to
social services in rural communities, such as those in western Burkina
Faso, which currently are underserved due to an inadequate transport
system.
The Project is designed to (a) improve access to agricultural
markets by upgrading primary and rural road segments serving the Sourou
Valley and the Como[eacute] Basin; (b) reduce travel time to markets
and vehicle operating costs; and (c) ensure sustainability of the road
network by strengthening road maintenance. Benefits are expected to
result primarily from increasing the year-round accessibility to
markets of agriculturally productive regions that are typically cut off
during the rainy season.
The Project consists of the following four activities:
(a) Development of Primary Roads to support the improvements of
three primary road segments in western Burkina Faso currently projected
to total 271 kilometers;
(b) Development of Rural Roads to support the improvement of 151
kilometers of road segments located in three rural areas in the
Como[eacute] Basin of southwestern Burkina Faso. These roads currently
exist as rural tracks and improvements will include upgrading to a
fully engineered rural road standard;
(c) Capacity Building and Technical Assistance to reinforce the
effectiveness of existing government agencies and private sector
institutions involved in road maintenance planning and implementation;
and
(d) Incentive Matching Fund for Periodic Road Maintenance to set
the GoBF on a path toward long-term, sustainable funding of periodic,
or major, maintenance on the full road network in Burkina Faso.
4. Bright 2 Schools Project ($28.83 million)
The BRIGHT 2 Schools Project extends the successful threshold
program that focused on improving primary school completion rates for
girls. The Project will consist of two phases. Phase one, scheduled for
September 2008 to December 2009, will be an interim phase to provide
temporary classroom solutions, maintain community interest at the
Project schools, and prepare for the construction phase. Phase two,
scheduled from the date the Compact enters into force and for the three
consecutive years thereafter, will consist of construction work and
other activities. The Project includes the construction of: (a) Up to
50 additional boreholes; (b) an additional classroom block of three
classrooms for grades 4-6 at each of the 132 locations (for a total of
396 additional classrooms); and (c) of 122 bisongos (kindergartens),
including playground and equipment. The Project will also provide daily
meals (take-home rations) during all nine months of the school year for
the approximately 100 children estimated to be enrolled at each of the
132 bisongos (including ten bisongos financed under the threshold
program), and will fund a social mobilization campaign and an adult
literacy/management of micro-projects activity.
The BRIGHT 2 Schools Project will be administered by the United
States Agency for International Development (USAID) pursuant to an
interagency agreement under Section 632(b) of the Foreign Assistance
Act of 1961, as amended. MCC funds will cover direct and indirect costs
incurred by USAID for the implementation of this Project.
C. Program Management
The GoBF, by a decree of the Council of Ministers dated April 18,
2008, established MCA-Burkina Faso to serve as the accountable entity
for implementation of the Compact. MCA-Burkina Faso will be
administered and managed by an independent board of directors
(``Board'') that will make strategic decisions and provide oversight.
The Board will be comprised of eleven voting members, including six
government officials. The Board also will benefit from the
participation of a stakeholders committee consisting of up to 28
members including government officials, and representatives from the
private sector and civil society. In addition to the Board, a
management unit, led by a national coordinator, will manage the day-to-
day activities of MCA-Burkina Faso and will be supported by key
officers, technical staff, and administrative personnel.
MCA-Burkina Faso will engage line ministries and public
institutions to serve as implementing entities. However, as the
accountable entity, MCA-Burkina Faso will remain responsible for the
successful implementation of the Compact. In addition, the GoBF has
appointed, through competitive processes approved by MCC, third-party
fiscal and procurement agents. As a government entity, MCA-Burkina Faso
will be subject to GoBF audit requirements as well as audits required
by the Compact.
D. Assessment
1. Economic and Beneficiary Analysis
Many of the Compact investments are focused in the Boucle de
Mouhoun region, the third poorest of Burkina Faso's 13 regions.
Approximately 80 percent of the region's 1.4 million people live on
less than $1 per day. A smaller number of investments will be made in
the Como[eacute] region with an estimated population of 490,000. The
table below summarizes the economic and beneficiary analysis for each
Project.
Table 2.--Projected Beneficiaries and Economic Rates of Return
----------------------------------------------------------------------------------------------------------------
Project Beneficiaries ERR Description
----------------------------------------------------------------------------------------------------------------
Rural Land Governance............ Up to 415,200 TBD (based on assessment The project is
households, comprising of pilot investment). predicated on the
up to 2,490,000 benefits of reducing
individuals, from 47 of land conflict. This
Burkina Faso's 302 assumption will be
rural communes will tested during a pilot
have access to local phase and will inform
land registration and an ERR-based decision
titling services, on scaling up the
including up to 138,000 project.
individuals who will
benefit from up to
23,000 land titles
expected to be
delivered.
Agricultural Development......... Up to 150,000 farmers, 7%....................... ERRs for the irrigation
herders, members of works are especially
producers groups and sensitive to crop
other traders, many of prices. To be
whom currently live on conservative, MCC used
less than $2 per day, a composite of
will benefit from historical averages for
improved agricultural key crops instead of
and livestock current prices. Today's
production conditions, prices would result in
better water a higher overall
managements, and Project ERR.
improved access to
credit.
[[Page 42604]]
Roads............................ A portion of the 2.4 2%....................... In spite of low ERRs for
million inhabitants of the three primary
the nine provinces roads, these are
surrounding the primary critical links to MCC-
roads and up to 65,000 funded agricultural
inhabitants of the 30 zones, allowing
villages serviced by producers better access
rural roads. Many of to markets, health and
these beneficiaries are education facilities,
likely to be farmers and facilitating trade
buying and selling with neighboring
agricultural produce. countries.
BRIGHT 2 Schools................. Up to 19,800 children, Not applicable........... This project is an
including 9,900 girls. extension of a
successful threshold
program and will be
administered by USAID.
As such, it was not
subjected to MCC due
diligence standards,
including ERR
calculations.
----------------------------------------------------------------------------------------------------------------
In addition to the beneficiaries identified above, national-level
benefits are expected to result from the new land law associated with
the Rural Land Governance Project and from the Roads Project's support
of systemic improvements in the GoBF's long-term road maintenance
strategy. Because the Projects are overlapping and there are synergies
among projects, numerous individuals will benefit from more than one
project. Drawing on lessons learned from previous Compacts, the cost
estimates for Burkina Faso's large-scale infrastructure projects are
conservative. For the Roads Project, base costs were derived from full
feasibility-level studies and then doubled during due diligence, as MCC
accounted for contingencies, environmental and social costs, and the
higher costs of construction in a landlocked West Africa country. On
the benefit side, MCC has generally not included benefits that cannot
be quantified, a particular problem in a data-poor environment like
Burkina Faso. In evaluating the Roads Project investment, MCC took into
account the linkages between MCC-funded agricultural investments and
markets, both national and regional. In particular, one road segment in
the Boucle de Mouhoun region provides a critical link to the Mali
border and is likely to reduce travel times and costs between Bamako
and Ouagadougou. Another road segment in the Como[eacute] Region
provides an important link to Banfora, a regional market town that is
frequented by traders from Ivory Coast and Ghana, which is likely to
facilitate trade opportunities for local farmers.
2. Consultative Process
In connection with the proposal submitted to MCC, the GoBF
conducted a robust consultative process in May and June of 2006,
building on the success and lessons learned from the process used to
prepare its Poverty Reduction Strategy Paper. The GoBF also engaged the
media to inform the public about the proposal for MCA assistance with a
series of press releases, television interviews and press conferences.
Consultations took place in all thirteen regions of the country and
included representatives of civil society, the private sector,
traditional authorities, farmers' and women's groups and local GoBF
officials. Of the 3,115 participants, 87 percent came from civil
society, and 18 percent were women. Overwhelmingly, input focused on
improving the rural economy including ways to secure land tenure,
intensify and modernize agricultural production, and improve the road
network. Following the consultations, the GoBF distributed a summary
document to partners in civil society and the donor community that
resulted, after further revisions, in the proposal for funding
submitted to MCC in October 2006. The Compact is designed specifically
to address the core constraints to economic growth identified during
the consultative process.
3. GoBF Commitment and Contribution to Development of the Compact
The GoBF has demonstrated substantial commitment to the Compact
development process since becoming eligible for MCA assistance in
November 2005. In February 2006, the GoBF carefully followed MCC
guidance and established a full-time compact development unit at an
operational cost of $3.11 million. It financed an extensive
consultation process throughout the country's 13 regions, at a total
cost of $0.33 million, and commissioned a $2.36 million set of
feasibility studies for the Roads Project. In setting up the
accountable entity, the GoBF hired a recruitment firm to undertake the
recruitment process for the key directors, at a cost of $64,000. The
estimated monetary value of these contributions together is $5.86
million. For a country with a 2006 GNI per capita of $460, this
contribution demonstrates the high national priority placed on the
successful negotiation and implementation of this Compact. GoBF also
has demonstrated its commitment through its effort to maintain
eligibility on MCC indicators, and through its decision to establish
the accountable entity under the auspices of the Office of the Prime
Minister. In addition, the GoBF has committed to funding access roads
and health infrastructure in the Sourou Valley agricultural zone as a
complementary investment to MCC-financed activities.
4. Sustainability
(a) Rural Land Governance Project. The foundation of this Project
is a reformed legal, policy and procedural framework for land tenure,
which will ensure an enabling environment for sustainability of the MCC
investment. All site-specific sub-activities will be based on new legal
frameworks, ensuring their support in law. Most of the Project's site-
specific interventions will be scalable through the phased approach,
thus enabling the expected returns on an initial share of the
investment to be tested before the Project is expanded. By requiring
that phase two be based on demonstrated performance, the Project design
stands as an innovative approach to ensuring results and investment
sustainability. All training and equipment investments, particularly
those associated with strengthening regional and provincial
registration and mapping services, will be designed specifically for
the Burkina Faso context.
(b) Agriculture Development Project. The overall sustainability of
the Project lies with: (i) The strengthened capacity of the Direction
G[eacute]n[eacute]rale des Ressources en Eau (``DGRE'') to better
manage and maintain water storage in the Sourou reservoir; (ii) the
strengthened capacity of the Autorit[eacute] de Mise en Valeur du
Sourou (``AMVS'') within the Ministry of Agriculture, through its
operation and maintenance contractors to provide a
[[Page 42605]]
reliable supply of water to farmers as specified in the by-laws of the
project (Cahier de Charges); (iii) the capacity of beneficiaries,
through their water user associations (``WUA'') to pay for operations
and maintenance to ensure the provision of irrigation water; (iv) the
establishment of an operations and maintenance fund managed and
overseen by AMVS and the WUAs; and (v) the GoBF to ensure that the
Cahier de Charges is respected by the parties to it. Disbursement of
MCC funding will depend on the GoBF strengthening capacity to MCC's
satisfaction.
(c) Roads Project. Road maintenance is crucial for the long-term
functioning of the Roads Project investment. The continuation of
efforts to mobilize resources for road maintenance is essential to
ensure sustainability of the road investments. The provision by MCC of
matching funds to annual increases in GoBF spending on periodic (major)
maintenance is an innovative mechanism to ensure roads are adequately
maintained and an adequate long-term road maintenance system is in
place.
(d) BRIGHT 2 Schools Project. The sustainability of MCC investments
in this Project is contingent upon the GoBF providing trained teachers
and school books for 396 classrooms. The GoBF has committed to
providing these teachers and books and met similar requirements during
the threshold phase. In addition, the GoBF will be obligated to
nominate a BRIGHT 2 Schools Project coordinator and coordination team,
and to provide an annual budget allocation to the Ministry of Basic
Education and Literacy for teacher salaries and other recurrent costs
for the existing 132 BRIGHT schools (including classrooms and other
facilities funded under the BRIGHT 2 Schools Project).
5. Environment and Social Impacts
MCC will require that all Projects comply with national laws and
regulations, MCC's environmental guidelines and gender policy, and the
World Bank's Operational Policy on Involuntary Resettlement (``OP
4.12''). None of the Projects is likely to generate significant adverse
environmental, health, or safety impacts, and all expected impacts can
be mitigated. The environmental and social sustainability of the
Compact will be enhanced through oversight, ongoing public
consultation, and institutional capacity building.
The Rural Land Governance Project is classified as Category B under
MCC's environmental guidelines due to potential site-specific
environmental and social impacts anticipated to result from the
construction of municipal buildings and field-level activities
clarifying local land uses and land rights. While these impacts are not
anticipated to be significant in nature, they will require mitigation
through implementation of measures identified in an Environmental and
Social Management Framework. Resettlement Action Plans (``RAPs'') also
will be developed to adequately plan for and mitigate the resettlement
impacts at building sites.
The Agriculture Development Project is classified as Category A
under MCC's environmental guidelines due to large-scale agriculture
development activities involving intensification or conversion of
natural habitats, with potential for significant impacts on sensitive
locations as well as the potential for increased use of pesticides and
increased surface water pollution. Given the potential for these
significant social and environmental impacts, detailed assessments and
mitigation plans will be required, including an environmental impact
assessment (``EIA'') and RAP for the water management and irrigation
activities, and EIAs for the agricultural activities.
The Roads Project is classified as Category B under MCC's
environmental guidelines as the potential environmental and social
impacts related to upgrading and rehabilitating existing roads and
supporting road maintenance are likely to be site-specific and
mitigable. As a result, EIAs will be completed for each set of roads to
be rehabilitated or upgraded, and each EIA will include gender
analysis, environmental management plans and HIV/AIDS prevention plans.
For the BRIGHT 2 Schools Project, MCC and USAID have agreed that
USAID Regulation 216 will be followed in lieu of MCC's Environmental
Guidelines and Gender Policy.
6. Donor, Multilateral, and Interagency Coordination
MCC has consulted extensively on each of the proposed Projects with
the major donors in Burkina Faso, including, the World Bank, the
European Union (``EU''), the French Development Agency (Agence
Fran[ccedil]aise de D[eacute]veloppement, or ``AFD''), the Danish
International Development Agency (``DANIDA''), the German Agency for
Technical Cooperation (Deutsche Gesellschaft f[uuml]r Technische
Zusammenarbeit GmbH, or ``GTZ''), the Austrian Development Corporation,
the Luxembourg Agency for Development Cooperation, the International
Fund for Agricultural Development (``IFAD''), the International Finance
Corporation (``IFC''), the African Development Bank (``AfDB''), the
United Nations Food and Agriculture Organization (``FAO''), the Swedish
International Development Agency (``SIDA''), the United Nations
Development Program (``UNDP''), and USAID.
In several cases, MCC-funded activities complement or directly
build on initiatives by other donors. For example, as part of the
Agriculture Development Project, the market information system will
continue work begun under a USAID project, and the improvements to
district markets will draw on the experience of the Swiss Development
Agency. Synergies will also be gained in the implementation of the
Access to Rural Finance activity through close coordination with the
IFC's micro-, small- and medium-sized enterprise credit program, the
World Bank's Projet d'Appui aux Fili[egrave]res Agro-Sylvo-Pastoral
Project (``PAFASP''), and the World Bank and EU-funded Maison de
l'Enterprise which provides business support services.
In addition, technical assistance under the Roads Project has been
structured to complement ongoing technical assistance programs, to
build on the World Bank's assistance that resulted in the establishment
of the Road Fund, and to strengthen work initiated by the AfDB and the
EU on road maintenance. Design of the Incentive Matching Fund for
Periodic Maintenance (``IMFP''), in particular, was developed in
collaboration with the World Bank and the EU.
Finally, the BRIGHT 2 Schools Project, to be administered by USAID,
is a model of interagency coordination and the first time MCC and USAID
have partnered directly in connection with the implementation of a
compact-funded project.
Millennium Challenge Compact Between the United States of America
Acting Through the Millennium Challenge Corporation and the Government
of Burkina Faso
Table of Contents
Article 1. Goal and Objectives
Section 1.1 Compact Goal
Section 1.2 Project Objectives
Article 2. Funding and Resources
Section 2.1 Program Funding
Section 2.2 Compact Implementation Funding
Section 2.3 MCC Funding
Section 2.4 Disbursement
Section 2.5 Interest
Section 2.6 Government Resources; Budget
Section 2.7 Limitations on the Use of MCC Funding
Section 2.8 Taxes
Article 3. Implementation
[[Page 42606]]
Section 3.1 Program Implementation Agreement
Section 3.2 Government Responsibilities
Section 3.3 Policy Performance
Section 3.4 Government Assurances
Section 3.5 Implementation Letters
Section 3.6 Procurement
Section 3.7 Records; Accounting; Covered Providers; Access
Section 3.8 Audits; Reviews
Article 4. Communications
Section 4.1 Communications
Section 4.2 Representatives
Section 4.3 Signatures
Article 5. Termination; Suspension; Refunds
Section 5.1 Termination; Suspension
Section 5.2 Refunds; Violation
Section 5.3 Survival
Article 6. Compact Annexes; Amendments; Governing Law
Section 6.1 Annexes
Section 6.2 Amendments
Section 6.3 Inconsistencies
Section 6.4 Governing Law
Section 6.5 Additional Instruments
Section 6.6 References to MCC Web site
Section 6.7 References to Laws, Regulations, Policies and
Guidelines
Section 6.8 MCC Status
Article 7. Entry Into Force
Section 7.1 Domestic Requirements
Section 7.2 Conditions Precedent to Entry into Force
Section 7.3 Date of Entry into Force
Section 7.4 Compact Term
Section 7.5 Provisional Application
Annex I: Program Description
Annex II: Summary of the Multi-Year Financial Plan
Annex III: Description of the Monitoring and Evaluation Plan
Annex IV: Conditions to CIF Disbursement
Millennium Challenge Compact
Preamble
This Millennium Challenge Compact (this ``Compact'') is between the
United States of America, acting through the Millennium Challenge
Corporation, a United States government corporation (``MCC''), and the
Government of Burkina Faso (the ``Government'') (individually, each of
MCC and the Government, a ``Party,'' and collectively, the
``Parties'').
Recalling that the Government consulted with the private sector and
civil society of Burkina Faso to determine the priorities for the use
of Millennium Challenge Account assistance and developed and submitted
to MCC a proposal for such assistance; and
Recognizing that MCC wishes to help Burkina Faso implement a
program to achieve the Compact Goal and Project Objectives described
herein (the ``Program''),
The Parties hereby agree as follows:
Article 1. Goal and Objectives
Section 1.1 Compact Goal
The goal of this Compact is to reduce poverty in Burkina Faso
through economic growth (the ``Compact Goal'').
Section 1.2 Project Objective
The objectives of the Projects (as further described in Annex I)
(each, a ``Project Objective'') are:
(a) To increase investment in land and rural productivity through
improved land tenure security and land management;
(b) To expand the productive use of land in order to increase the
volume and value of agricultural production in Project zones;
(c) To enhance access to markets through investments in the road
network; and
(d) To increase primary school completion rates for girls.
Article 2. Funding and Resources
Section 2.1 Program Funding
MCC hereby grants to the Government, under the terms of this
Compact, an amount not to exceed Four Hundred Sixty-Four Million Eight
Hundred Forty-Two Thousand Five Hundred and Four United States Dollars
(US$464,842,504) (``Program Funding'') for use by the Government to
implement the Program. The allocation of Program Funding uses is
generally described in Annex II to this Compact.
Section 2.2 Compact Implementation Funding
(a) MCC hereby grants to the Government, under the terms of this
Compact, in addition to the Program Funding described in Section 2.1,
an amount not to exceed Sixteen Million One Hundred One Thousand and
Sixty-Five United States Dollars (US$16,101,065) (``Compact
Implementation Funding'' or ``CIF'') under Section 609(g) of the
Millennium Challenge Act of 2003, as amended (the ``MCA Act''), for use
by the Government for the following purposes:
(i) Feasibility and design studies, strategic environmental (and
social) assessments, environmental impact assessments, environmental
assessments, environmental management plans and resettlement action
plans for projects and activities included in the Program;
(ii) Financial management and procurement activities;
(iii) Monitoring and evaluation activities;
(iv) Administration activities, including salaries, benefits, and
administrative support expenses such as rent, information technology,
and other capital expenditures; and
(v) Other Compact implementation activities approved by MCC.
The allocation of Compact Implementation Funding uses is generally
described in Annex II to this Compact.
(b) Notwithstanding the provisions of Section 7.3 of this Compact,
this Section 2.2, together with any other provisions of this Compact
applicable to Compact Implementation Funding, shall be effective as of
the date this Compact is signed by MCC and the Government.
(c) Each Disbursement of Compact Implementation Funding shall be
subject to satisfaction of the conditions to such Disbursement as set
forth in Annex IV.
(d) If MCC determines that the full amount of Compact
Implementation Funding under Section 2.2(a) of this Compact exceeds the
amount which reasonably can be utilized for the purposes and uses set
forth in Section 2.2(a) of this Compact within one year after this
Compact enters into force, MCC, by written notice to the Government,
may withdraw the excess amount, thereby reducing the amount of the
Compact Implementation Funding as set forth in Section 2.2(a) (such
excess, the ``Excess CIF Amount''). In such event, the amount of
Compact Implementation Funding granted to the Government under Section
2.2(a) will be reduced by the Excess CIF Amount, and MCC will have no
further obligations with respect to such Excess CIF Amount.
(e) MCC, at MCC's option by written notice to the Government, may
elect to grant to the Government an amount equal to all or a portion of
such Excess CIF Amount as an increase in the Program Funding, and such
additional Program Funding will be subject to the terms and conditions
of this Compact applicable to Program Funding.
Section 2.3 MCC Funding
Program Funding and Compact Implementation Funding are collectively
referred to in this Compact as ``MCC Funding.''
Section 2.4 Disbursement
In accordance with this Compact and the Program Implementation
Agreement, MCC will disburse MCC Funding for expenditures incurred in
furtherance of the Program (each instance, a ``Disbursement''). Subject
to the satisfaction of all applicable conditions, the proceeds of such
Disbursements will be made available to the Government, at MCC's sole
election, by (a) deposit to one or more bank
[[Page 42607]]
accounts established by the Government and acceptable to MCC (each, a
``Permitted Account''), or (b) direct payment to the relevant provider
of goods, works or services in connection with the implementation of
the Program. MCC Funding may be expended only to cover Program
expenditures as provided in this Compact and the Program Implementation
Agreement.
Section 2.5 Interest
The Government will pay to MCC any interest or other earnings that
accrue on MCC Funding in accordance with the Program Implementation
Agreement (whether by directing such payments to a bank account outside
Burkina Faso that MCC may from time to time indicate or as otherwise
directed by MCC).
Section 2.6 Government Resources; Budget
(a) The Government will provide all funds and other resources, and
will take all actions, that are necessary to carry out the Government's
responsibilities and obligations under this Compact.
(b) The Government will use its best efforts to ensure that all MCC
Funding it receives or is projected to receive in each of its fiscal
years is fully accounted for in its annual budget on a multi-year
basis.
(c) The Government will not reduce the normal and expected
resources that it would otherwise receive or budget from sources other
than MCC for the activities contemplated under this Compact and the
Program.
(d) Unless the Government discloses otherwise to MCC in writing,
MCC Funding will be in addition to the resources that the Government
would otherwise receive or budget for the activities contemplated under
this Compact and the Program.
Section 2.7 Limitations on the Use of MCC Funding
The Government will ensure that MCC Funding will not be used for
any purpose that would violate United States law or policy, as
specified in this Compact or as further notified to the Government in
writing or by posting from time to time on the MCC Web site at
www.mcc.gov (the ``MCC Web site''), including but not limited to the
following purposes:
(a) For assistance to, or training of, the military, police,
militia, national guard or other quasi-military organization or unit;
(b) For any activity that is likely to cause a substantial loss of
United States jobs or a substantial displacement of United States
production;
(c) To undertake, fund or otherwise support any activity that is
likely to cause a significant environmental, health, or safety hazard,
as further described in MCC's Environmental Guidelines posted from time
to time on the MCC Web site (the ``MCC Environmental Guidelines''); or
(d) To pay for the performance of abortions as a method of family
planning or to motivate or coerce any person to practice abortions, to
pay for the performance of involuntary sterilizations as a method of
family planning or to coerce or provide any financial incentive to any
person to undergo sterilizations or to pay for any biomedical research
which relates, in whole or in part, to methods of, or the performance
of, abortions or involuntary sterilization as a means of family
planning.
Section 2.8 Taxes
(a) Unless the Parties otherwise specifically agree in writing, and
subject to the provisions of Sections 2.8(b)(ii) and (iii) and 2.8(c),
the Government will ensure that each of the following is free from the
payment of any existing or future taxes, duties, levies, contributions
or other similar charges (``Taxes'') of or in Burkina Faso (including
any such Taxes imposed by a national, regional, local or other
governmental or taxing authority of or in Burkina Faso): (i) The
Program; (ii) MCC Funding; (iii) interest or earnings on MCC Funding;
(iv) any Project or activity implemented under the Program; (v) the
Accountable Entity (as defined below); (vi) goods, works, services,
technology and other assets and activities under the Program or any
Project; (vii) persons and entities that provide such goods, works,
services, technology and assets or perform such activities; and (viii)
income, profits and payments with respect thereto. The Parties
acknowledge and agree that the foregoing includes, inter alia, value
added and other transfer taxes, profit and income taxes, property and
ad valorem taxes, import and export duties and taxes (including for
goods imported and re-exported for personal use), withholding taxes,
payroll taxes, and social security and social insurance contributions.
(b) The Government and MCC may, at MCC's discretion, enter into one
or more agreements setting forth the mechanisms for implementing this
Section 2.8, including, but not limited to (i) waivers of certain
filing and compliance requirements relating to Taxes; (ii) an agreement
on exceptions to Section 2.8(a) above for fees or charges for services
that are generally applicable in Burkina Faso, reasonable in amount and
imposed on a non-discriminatory basis; and (iii) one or more mechanisms
to implement the provisions of Section 2.8(a) with respect to all or
any of the Taxes that would otherwise be applicable, which may include
exemptions from payment of such Taxes that have been granted in
accordance with applicable law, refund or reimbursement of such Taxes
by the Government to MCC or to the taxpayer, or payment by the
Government to the Accountable Entity or MCC, for the benefit of the
Program, an agreed amount in respect of any Taxes collected on the
items described in Section 2.8(a).
(c) Unless otherwise specified in an agreement entered into
pursuant to Section 2.8(b), the provisions of Section 2.8(a) shall not
apply to income Taxes on and contributions with respect to individuals
who are nationals of Burkina Faso; provided, that such Taxes and
contributions are not discriminatory and are generally applicable to
all nationals in Burkina Faso; and provided, further, that in any event
Section 2.8(a) shall apply to Millennium Challenge Account--Burkina
Faso, an independent entity established under the office of the Prime
Minister by Decree No. 2008-185/PRES/PM dated April 18, 2008 (``MCA--
Burkina Faso''), or any other entity established by the Government
solely for purposes of managing or overseeing implementation of the
Program (MCA--Burkina Faso and any such other entity, each, an
``Accountable Entity'').
(d) If a Tax has been paid contrary to the requirements of this
Section 2.8 or any agreement entered into pursuant to this Section 2.8,
the Government will refund promptly to MCC (or to another party as
designated by MCC) the amount of such Tax in United States Dollars
(``US$'') or CFA Francs (as elected by MCC) within thirty (30) days (or
such other period as may be agreed in writing by the Parties) after the
Government is notified in writing (whether by MCC or otherwise) that
such Tax has been paid.
(e) No MCC Funding, proceeds thereof or Program assets may be
applied by the Government in satisfaction of its obligations under this
Section 2.8.
Article 3. Implementation
Section 3.1 Program Implementation Agreement
The Government will implement the Program in accordance with this
Compact and as further specified in an agreement to be entered into by
MCC,
[[Page 42608]]
the Government and the Accountable Entity and relating to, among other
matters, implementation arrangements, fiscal accountability and
disbursement and use of MCC Funding (the ``Program Implementation
Agreement'' or ``PIA'').
Section 3.2 Government Responsibilities
(a) The Government has principal responsibility for overseeing and
managing the implementation of the Program.
(b) With the prior written consent of MCC, the Government may
designate an entity to implement some or all of the Government's
obligations or to exercise any rights of the Government under this
Compact or the Program Implementation Agreement. Such a designation
will not relieve the Government of any designated obligations and
rights, for which the Government will retain full responsibility.
(c) The Government will ensure that no law or regulation in Burkina
Faso now or hereinafter in effect makes or will make unlawful or
otherwise prevent or hinder the performance of any of the Government's
obligations under this Compact, the Program Implementation Agreement or
any other related agreement or any transaction contemplated hereby or
thereby.
(d) The Government will ensure that any assets or services funded
in whole or in part (directly or indirectly) by MCC Funding will be
used solely in furtherance of this Compact and the Program unless
otherwise agreed by MCC in writing.
(e) The Government will take all necessary or appropriate steps to
achieve the Compact Goal and the Project Objectives during the Compact
Term (as defined in Section 7.4).
Section 3.3 Policy Performance
In addition to undertaking the specific policy, legal and
regulatory reform commitments identified in Annex I (if any), the
Government will seek to maintain and to improve its level of
performance under the policy criteria identified in Section 607 of the
MCA Act, and the selection criteria and methodology used by MCC.
Section 3.4 Government Assurances
The Government assures MCC that:
(a) As of the date this Compact is signed by the Government, the
information provided to MCC by or on behalf of the Government in the
course of reaching agreement with MCC on this Compact is true, correct
and complete in all material respects;
(b) This Compact does not, and will not, conflict with any other
international agreement or obligation of the Government or any of the
laws of Burkina Faso; and
(c) The Government will not invoke any of the provisions of its
internal law to justify or excuse a failure to perform its duties or
responsibilities under this Compact.
Section 3.5 Implementation Letters
From time to time, MCC may provide guidance to the Government in
writing on any matters relating to this Compact, MCC Funding, or
implementation of the Program (each, an ``Implementation Letter''). The
Government will apply such guidance in implementing the Program.
Section 3.6 Procurement
The Government will ensure that the procurement of all goods, works
and services by the Government or any Provider (as defined in Section
3.7(c)) to implement the Program will be consistent with the program
procurement guidelines posted from time to time on the MCC Web site
(the ``MCC Program Procurement Guidelines''). The MCC Program
Procurement Guidelines will include, among others, the following
requirements:
(a) Open, fair, and competitive procedures must be used in a
transparent manner to solicit, award and administer contracts and to
procure goods, works and services;
(b) Solicitations for goods, works and services must be based upon
a clear and accurate description of the goods, works and services to be
acquired;
(c) Contracts must be awarded only to qualified contractors that
have the capability and willingness to perform the contracts in
accordance with their terms on a cost effective and timely basis; and
(d) No more than a commercially reasonable price, as determined,
for example, by a comparison of price quotations and market prices,
will be paid to procure goods, works and services.
Section 3.7 Records; Accounting; Covered Providers; Access
(a) Government Books and Records. The Government will maintain, and
will use its best efforts to ensure that all Covered Providers (as
defined in Section 3.7(c)) maintain, accounting books, records,
documents and other evidence relating to the Program adequate to show
to MCC's satisfaction the use of all MCC Funding (``Compact Records'').
In addition, the Government will furnish or cause to be furnished to
MCC, upon its request, all such Compact Records.
(b) Accounting. The Government will maintain, and will use its best
efforts to ensure that all Covered Providers maintain, Compact Records
in accordance with generally accepted accounting principles prevailing
in the United States, or at the Government's option and with MCC's
prior written approval, other accounting principles, such as those (i)
prescribed by the International Accounting Standards Board, or (ii)
then prevailing in Burkina Faso. Compact Records must be maintained for
at least five (5) years after the end of the Compact Term or for such
longer period, if any, required to resolve any litigation, claims or
audit findings or any statutory requirements.
(c) Providers and Covered Providers. Unless the Parties agree
otherwise in writing, a ``Provider'' is (i) any entity of the
Government that receives or uses MCC Funding or any other Program asset
in carrying out activities in furtherance of this Compact, or (ii) any
third party that receives at least US$50,000 in the aggregate of MCC
Funding (other than as salary or compensation as an employee of an
entity of the Government) during the Compact Term. A ``Covered
Provider'' is (i) a non-United States Provider that receives (other
than pursuant to a direct contract or agreement with MCC) US$300,000 or
more of MCC Funding in any Government fiscal year or any other non-
United States person or entity that receives, directly or indirectly,
US$300,000 or more of MCC Funding from any Provider in such fiscal
year, or (ii) any United States Provider that receives (other than
pursuant to a direct contract or agreement with MCC) US$500,000 or more
of MCC Funding in any Government fiscal year or any other United States
person or entity that receives, directly or indirectly, US$500,000 or
more of MCC Funding from any Provider in such fiscal year.
(d) Access. Upon MCC's request, the Government, at all reasonable
times, will permit, or cause to be permitted, authorized
representatives of MCC, an authorized United States inspector general,
the United States Government Accountability Office, any auditor
responsible for an audit contemplated herein or otherwise conducted in
furtherance of this Compact, and any agents or representatives engaged
by MCC or the Government to conduct any assessment, review or
evaluation of the Program, the opportunity to audit, review, evaluate
or inspect facilities and activities funded in whole or in part by MCC
Funding.
[[Page 42609]]
Section 3.8 Audits; Reviews
(a) Government Audits. Except as the Parties may otherwise agree in
writing, the Government will, on at least a semi-annual basis, conduct,
or cause to be conducted, financial audits of all disbursements of MCC
Funding covering the period from signing of this Compact until the
earlier of the following December 31 or June 30 and covering each six-
month period thereafter ending December 31 and June 30, through the end
of the Compact Term, in accordance with the terms of the Program
Implementation Agreement. In addition, upon MCC's request, the
Government will ensure that such audits are conducted by an independent
auditor approved by MCC and named on the list of local auditors
approved by the Inspector General of MCC (the ``Inspector General'') or
a United States-based certified public accounting firm selected in
accordance with the Guidelines for Financial Audits Contracted by MCA
(the ``Audit Guidelines'') issued and revised from time to time by the
Inspector General, which are posted on the MCC Web site. Audits will be
performed in accordance with the Audit Guidelines and be subject to
quality assurance oversight by the Inspector General. Each audit must
be completed and the audit report delivered to MCC no later than 90
days after the first period to be audited and no later than 90 days
after each June 30 and December 31 thereafter, or such other period as
the Parties may otherwise agree in writing.
(b) Audits of United States Entities. The Government will ensure
that agreements between the Government or any Provider, on the one
hand, and a United States nonprofit organization, on the other hand,
that are financed with MCC Funding state that the United States
nonprofit organization is subject to the applicable audit requirements
contained in OMB Circular A-133 issued by the United States Government
Office of Management and Budget (``OMB''). The Government will ensure
that agreements between the Government or any Provider, on the one
hand, and a United States for-profit Covered Provider, on the other
hand, that are financed with MCC Funding state that the United States
for-profit organization is subject to audit by the applicable United
States Government agency, unless the Government and MCC agree otherwise
in writing.
(c) Corrective Actions. The Government will use its best efforts to
ensure that Covered Providers take, where necessary, appropriate and
timely corrective actions in response to audits, consider whether a
Covered Provider's audit necessitates adjustment of the Government's
records, and require each such Covered Provider to permit independent
auditors to have access to its records and financial statements as
necessary.
(d) Audit by MCC. MCC will have the right to arrange for audits of
the Government's use of MCC Funding.
(e) Cost of Audits, Reviews or Evaluations. MCC Funding may be used
to fund the costs of any audits, reviews or evaluations required under
this Compact.
Article 4. Communications
Section 4.1 Communications
Any document or communication required or submitted by either Party
to the other under this Compact must be in writing and, except as
otherwise agreed with MCC, in English. For this purpose, the address of
each Party is set forth below.
To MCC:
Millennium Challenge Corporation, Attention: (a) Before this
Compact enters into force, Vice President, Compact Development; and (b)
after this Compact enters into force, Vice President, Compact
Implementation, (in each case, with a copy to the Vice President and
General Counsel), 875 Fifteenth Street, NW., Washington, DC 20005,
United States of America, Facsimile: (202) 521-3700, Telephone: (202)
521-3600, E-mail: VPDevelopment@mcc.gov (Vice President, Compact
Development), VPImplementation@mcc.gov (Vice President, Compact
Implementation), VPGeneralCounsel@mcc.gov (Vice President and General
Counsel).
To the Government:
Minist[egrave]re de l'Economie et des Finances, Attention: Minister
of Economy and Finance, Ministre de l'Economie et des Finances, Avenue
du G[eacute]n[eacute]ral Bila Jean G[eacute]rard ZAGRE, 01 BP: 7012
Ouagadougou 01, Burkina Faso, Facsimile: +226 50 31 27 15, Telephone:
226 50 32 42 11.
Section 4.2 Representatives
For all purposes of this Compact, the Government will be
represented by the individual holding the position of, or acting as,
the Minister of Economy and Finance, and MCC will be represented by (a)
before this Compact enters into force, the individual holding the
position of, or acting as, Vice President, Compact Development, and (b)
after this Compact enters into force, the individual holding the
position of, or acting as, Vice President, Compact Implementation (each
of the foregoing, a ``Principal Representative''). Each Party, by
written notice to the other Party, may designate one or more additional
representatives for all purposes other than signing amendments to this
Compact. A Party may change its Principal Representative to a new
representative that holds a position of equal or higher rank upon
written notice to the other Party.
Section 4.3 Signatures
With respect to all documents other than this Compact or an
amendment to this Compact, a signature delivered by facsimile or
electronic mail will be binding on the Party delivering such signature
to the same extent as an original signature would be.
Article 5. Termination; Suspension; Refunds
Section 5.1 Termination; Suspension
(a) Either Party may terminate this Compact in its entirety by
giving the other Party thirty (30) days' written notice.
(b) MCC may, immediately, upon written notice to the Government,
suspend or terminate this Compact or MCC Funding, in whole or in part,
and any obligation related thereto, if MCC determines that any
circumstance identified by MCC as a basis for suspension or termination
(whether in writing to the Government or by posting on the MCC Web
site) has occurred, which circumstances include but are not limited to
the following:
(i) The Government fails to comply with its obligations under this
Compact, the Program Implementation Agreement or any other agreement or
arrangement entered into by the Government in connection with this
Compact or the Program;
(ii) An event or series of events has occurred that MCC determines
makes it probable that any of the Project Objectives will not be
achieved during the Compact Term or that the Government will not be
able to perform its obligations under this Compact;
(iii) A use of MCC Funding or continued implementation of the
Program violates or would violate applicable law or United States
Government policy, whether now or hereafter in effect;
(iv) The Government or any other person or entity receiving MCC
Funding or using assets acquired in whole or in part with MCC Funding
is engaged in activities that are contrary to the national security
interests of the United States;
(v) An act has been committed or an omission or an event has
occurred that
[[Page 42610]]
would render Burkina Faso ineligible to receive United States economic
assistance under Part I of the Foreign Assistance Act of 1961, as
amended (22 U.S.C. 2151 et seq.), by reason of the application of any
provision of the Foreign Assistance Act of 1961 or any other provision
of law;
(vi) The Government has engaged in a pattern of actions
inconsistent with the criteria used to determine the eligibility of
Burkina Faso for assistance under the MCA Act; and
(vii) The Government or another person or entity receiving MCC
Funding or using assets acquired in whole or in part with MCC Funding
is found to have been convicted of a narcotics offense or to have been
engaged in drug trafficking.
(c) All Disbursements will cease upon expiration, suspension, or
termination of this Compact; provided, however, MCC Funding may be
used, in compliance with this Compact and the Program Implementation
Agreement, to pay for (i) reasonable expenditures for goods, works or
services that are properly incurred under or in furtherance of the
Program before expiration, suspension or termination of this Compact,
and (ii) reasonable expenditures (including administrative expenses)
properly incurred in connection with the winding up of the Program
within 120 days after the expiration, suspension or termination of this
Compact, so long as the request for such expenditures is submitted
within ninety (90) days after such expiration, suspension or
termination.
(d) Subject to Section 5.1(c), upon the expiration, suspension or
termination of this Compact, (i) any amounts of MCC Funding not
disbursed by MCC to the Government will be automatically released from
any obligation in connection with this Compact, and (ii) any amounts of
MCC Funding disbursed by MCC but not expended under Section 2.4 before
the expiration, suspension or termination of this Compact, plus accrued
interest thereon will be returned to MCC within thirty (30) days after
the Government receives MCC's request for such return; provided,
however, that if this Compact is suspended or terminated in part, MCC
may request a refund for only the amount of MCC Funding allocated to
the suspended or terminated portion.
(e) MCC may reinstate any suspended or terminated MCC Funding under
this Compact if MCC determines that the Government or other relevant
person or entity has committed to correct each condition for which MCC
Funding was suspended or terminated.
Section 5.2 Refunds; Violation
(a) If any MCC Funding, any interest or earnings thereon, or any
asset acquired in whole or in part with MCC Funding is used for any
purpose in violation of the terms of this Compact, then MCC may require
the Government to repay to MCC in United States Dollars the value of
the misused MCC Funding, interest, earnings, or asset, plus interest
within thirty (30) days after the Government's receipt of MCC's request
for repayment. The Government will not use MCC Funding, proceeds
thereof or Program assets to make such payment.
(b) Notwithstanding any other provision in this Compact or any
other agreement to the contrary, MCC's right under this Section 5.2 for
a refund will continue during the Compact Term and for a period of (i)
five years thereafter, or (ii) one year after MCC receives actual
knowledge of such violation, whichever is later.
Section 5.3 Survival
The Government's responsibilities under Sections 2.5, 2.6, 2.7,
2.8, 3.7, 3.8, 5.1(c), 5.1(d), 5.2, 5.3 and 6.4 of this Compact will
survive the expiration, suspension or termination of this Compact.
Article 6. Compact Annexes; Amendments; Governing Law
Section 6.1 Annexes
Each annex to this Compact constitutes an integral part hereof, and
references to ``Annex'' mean an annex to this Compact unless otherwise
expressly stated.
Section 6.2 Amendments
(a) The Parties may amend this Compact only by a written agreement
signed by the Principal Representatives.
(b) Without formally amending the Compact, the Parties may agree in
writing, signed by the Principal Representatives, to modify any Annex
to this Compact to, among others (i) suspend, modify or terminate any
project described in Annex I (each, a ``Project'' and collectively, the
``Projects'') or to create a new project; (ii) change the designations
and allocations of funds among the Projects, the Project activities, or
any activity under Program administration or monitoring and evaluation,
or between a Project identified as of the entry into force of this
Compact and a new project; or (iii) add or delete any condition
precedent described in Annex IV, provided that any such modification
(A) is consistent in all material respects with the Compact Goal and
the Project Objectives, (B) does not cause the amount of Program
Funding to exceed the aggregate amount specified in Section 2.1 of this
Compact (as may be modified by operation of Section 2.2(e) of this
Compact), (C) does not cause the amount of Compact Implementation
Funding to exceed the aggregate amount specified in Section 2.2(a) of
this Compact, (D) does not cause the Government's responsibilities or
contribution of resources to be less than specified in this Compact,
(E) does not extend the Compact Term, and (F) in the case of a
modification to change the designations or allocations of funds among
Projects, does not materially adversely affect any activity under
Program administration or monitoring and evaluation.
Section 6.3 Inconsistencies
In the event of any conflict or inconsistency between:
(a) Any Annex to this Compact and any of Articles 1 through 7, such
Articles 1 through 7 will prevail; or
(b) This Compact and any other agreement between the Parties
regarding the Program, this Compact will prevail.
Section 6.4 Governing Law
This Compact is an international agreement and as such is governed
by the principles of international law.
Section 6.5 Additional Instruments
Any reference to activities, obligations or rights undertaken or
existing under or in furtherance of this Compact or similar language
will include activities, obligations and rights undertaken by, existing
under or in furtherance of any agreement, document or instrument
related to this Compact and the Program.
Section 6.6 References to MCC Web Site
Any reference in this Compact, the Program Implementation Agreement
or any other agreement entered into in connection with this Compact, to
a document or information available on, or notified by posting on the
MCC Web site will be deemed a reference to such document or information
as updated or substituted on the MCC Web site from time to time.
Section 6.7 References to Laws, Regulations, Policies and Guidelines
Each reference in this Compact, the Program Implementation
Agreement or any other agreement entered into in connection with this
Compact, to a law, regulation, policy, guideline or similar document
will be construed as a reference to such law, regulation, policy,
guideline or similar document as
[[Page 42611]]
it may, from time to time, be amended, revised, replaced, or extended
and will include any law, regulation, policy, guideline or similar
document issued under or otherwise applicable or related to such law,
regulation, policy, guideline or similar document.
Section 6.8 MCC Status
MCC is a United States Government corporation acting on behalf of
the United States Government in the implementation of this Compact. MCC
and the United States Government have no liability under this Compact,
are immune from any action or proceeding arising under or relating to
this Compact, and the Government hereby waives and releases all claims
related to any such liability. In matters arising under or relating to
this Compact, neither MCC nor the United States Government will be
subject to the jurisdiction of the courts or any other body of Burkina
Faso.
Article 7. Entry Into Force
Section 7.1 Domestic Requirements
The Government shall take all steps necessary to ensure that (a)
this Compact and the Program Implementation Agreement and all of the
provisions of this Compact and the Program Implementation Agreement are
valid and binding and are in full force and effect in Burkina Faso; (b)
this Compact, the Program Implementation Agreement and any other
agreement entered into in connection with this Compact to which the
Government and MCC are parties will be given the status of an
international agreement if so stipulated therein; and (c) no laws of
Burkina Faso (other than the constitution of Burkina Faso), whether now
or hereafter in effect, will take precedence or prevail over the terms
of this Compact or the Program Implementation Agreement.
Section 7.2 Conditions Precedent to Entry Into Force
Before this Compact enters into force:
(a) The Program Implementation Agreement must have been executed by
the Government and MCC and have become effective;
(b) The Government must have delivered to MCC:
(i) A certificate signed and dated by the Principal Representative
of the Government, or such other duly authorized representative of the
Government acceptable to MCC, certifying that the Government has
satisfied the requirements of Section 7.1;
(ii) A legal opinion from the Minister of Justice of Burkina Faso
(or such other legal representative of the Government acceptable to
MCC), in form and substance satisfactory to MCC; and
(iii) Complete, certified copies of all decrees, legislation,
regulations or other governmental documents relating to the
Government's domestic requirements for this Compact to enter into force
and the satisfaction of Section 7.1, which MCC may post on its Web site
or otherwise make publicly available; and
(c) MCC must determine that after signature of this Compact, the
Government has not engaged in any action or omission that is
inconsistent with the eligibility criteria for MCC Funding.
Section 7.3 Date of Entry Into Force
This Compact will enter into force on the later of (a) the date of
the last letter in an exchange of letters between the Principal
Representatives confirming that each Party has completed its domestic
requirements for entry into force of this Compact and (b) the date that
all conditions set forth in Section 7.2 have been satisfied.
Section 7.4 Compact Term
This Compact will remain in force for five years after its entry
into force, unless terminated earlier under Section 5.1 (the ``Compact
Term'').
Section 7.5 Provisional Application
Upon signature of this Compact and until it has entered into force
in accordance with Section 7.3, the Parties will provisionally apply
the terms of this Compact; provided, that no MCC Funding, other than
Compact Implementation Funding, will be made available or disbursed
before this Compact enters into force.
In Witness Whereof, the undersigned, duly authorized by their
respective governments, have signed this Compact this 14th day of
July, 2008.
Done at Washington, D.C.
For Millennium Challenge Corporation, on behalf of the United
States of America.
John J. Danilovich,
Chief Executive Officer.
For the Government of Burkina Faso,
Name: Jean Baptiste Marie Compaor[eacute], Title: Ministre de
l'Economie et des Finances.
Annex I Program Description
A. Program Overview
This Annex I describes the Program that MCC Funding will support in
Burkina Faso during the Compact Term.
1. Background and Consultative Process
Burkina Faso is a landlocked country in Africa's Sahel region,
bordering Benin, Cote d'Ivoire, Ghana, Mali, Niger, and Togo and with a
population of approximately 15.26 million people. Burkina Faso is
predominantly a rural country, with 95 percent of the poor residing in
rural areas. It also is one of the poorest countries in the world,
ranking 176 out of 177 countries surveyed by the United Nations
Development Program's 2007 Human Development Index. In an effort to
address constraints to investment, Burkina Faso has undertaken several
broad macroeconomic reforms since the mid-1990s, including market-
oriented reforms, decentralization of power from the central government
to local governments, adoption of a new labor code and business climate
improvements. Despite these reforms and moderate economic growth,
Burkina Faso continues to face severe constraints to reducing poverty.
In connection with the proposal submitted to MCC, the Government
conducted a robust consultative process in May and June of 2006,
building on the success and lessons learned from the process used to
prepare its Poverty Reduction Strategy Paper. The Government also
engaged the media to inform the public about the proposal for
Millennium Challenge Account assistance with a series of press
releases, television interviews and press conferences. Consultations
took place in all thirteen regions of the country and included
representatives of civil society, the private sector, traditional
authorities, farmers' and women's groups and local government
officials. Of the 3,115 participants, 87 percent came from civil
society, and 18 percent were women. Overwhelmingly, input focused on
improving the rural economy including ways to secure land tenure,
intensify and modernize agricultural production, and improve the road
network. The Program is designed specifically to address these
constraints.
2. Program Description
The Compact Goal is to reduce poverty through economic growth in
Burkina Faso. The Program consists of the following Projects: the Rural
Land Governance Project described in Part B of this Annex I (the
``Rural Land Governance Project''), the Agriculture Development Project
described in Part C of this Annex I (the ``Agriculture Development
Project''), the Roads Project described in Part D of this Annex I (the
``Roads Project'') and the BRIGHT 2 Schools Project described in Part E
of this Annex I (the ``BRIGHT 2 Schools Project''). Each activity to be
funded by MCC as part of a Project is referred to herein, individually,
as a
[[Page 42612]]
``Project Activity,'' or collectively, as the ``Project Activities''.
3. Environmental and Social Accountability
All of the Projects will be implemented in compliance with the MCC
Environmental Guidelines, MCC's Guidance on the Integration of Gender
in Program Implementation delivered by MCC to the Government or posted
on the MCC Web site (the ``MCC Gender Policy'') and the World Bank's
Operational Policy on Involuntary Resettlement in effect as of July
2007 (``OP 4.12''). The Government also will ensure that the Projects
comply with all national environmental laws and regulations, licenses
and permits, except to the extent such compliance would be inconsistent
with this Compact. The Government will: (a) Undertake and complete any
environmental impact assessments (``EIA''), environmental assessments
(``EA''), environmental management plans (``EMP''), resettlement action
plans (``RAP'') and any other such assessments or plans, in form and
substance satisfactory to MCC, and as required under the laws of
Burkina Faso, the MCC Environmental Guidelines, this Compact, the
Program Implementation Agreement, other supplemental agreements or as
otherwise required by MCC; (b) implement to MCC's satisfaction
environmental and social mitigation measures identified in such
assessments or plans; and (c) commit to fund, or ensure the funding of,
any environmental mitigation (including costs of resettlement) in
excess of MCC Funding not specifically provided for in the budget for
any Project.
B. Rural Land Governance Project
1. Background
Inclusion of the Rural Land Governance Project in the Program
reflects an understanding of the importance of sound property rights to
economic growth and to social stability in Burkina Faso. The Project
Objective of the Rural Land Governance Project is to increase
investment in land and rural productivity through improved land tenure
security and land management. Expected results include greater security
of land rights and improved access to more efficient land institutions,
which together contribute to economic growth and poverty reduction in
rural areas.
The Government has demonstrated a commitment to adopting improved
laws, regulations and administrative processes to meet its ambitious
rural land tenure vision. The Rural Land Governance Project seeks to
assist the Government in fulfilling this commitment. A new rural land
law is expected to be adopted prior to Entry into Force of the Compact,
and will be based on the existing, stakeholder-driven 2007 Rural Land
Policy (the ``Rural Land Policy''). The Rural Land Governance Project
also will support the Government's implementation of the 2004
Decentralization Law (Loi de 2004 portant Code G[eacute]n[eacute]ral
des Collectivit[eacute]s Territoriales, or the ``Decentralization
Law''), which authorizes transfer of key aspects of land governance to
municipal governments.
2. Summary of Project and Activities
The Rural Land Governance Project consists of the following
mutually reinforcing Project Activities:
(a) Legal and Procedural Change and Communication.
This Project Activity will support the Government's effort to
develop and implement improved rural land legislation and to develop,
revise and implement other legal and procedural frameworks.
Specifically, MCC Funding will support:
(i) the Government's finalization of the rural land law's
implementing regulations and revisions of relevant elements of the
Agrarian and Land Reorganization (R[eacute]organisation Agraire et
Fonci[egrave]re or ``RAF'') legislation, together with other legal
reform support, including technical advisory services related to the
rural land tenure law and support for participatory stakeholder
processes and validation; and
(ii) Finalization of communications and outreach tools to ensure
national awareness and practical applicability of the Government's
policy and legal reforms, including, but not limited to, the
implementation of a stakeholder communications strategy and the
development of manuals for local-level application of new legal
provisions and tools.
(b) Institutional Development and Capacity Building.
This Project Activity, in conjunction with the Legal and Procedural
Change and Communication Project Activity, will improve institutional
capacity to deliver land services in rural areas. Specifically, MCC
Funding will support:
(i) Improved land registration and mapping services, including
institutional modernization analyses, training and capacity building,
the purchase of equipment, imagery products, and surveying technology;
(ii) Decentralization of land tenure services, including training
and support for new local land services personnel and the construction
and basic equipping of up to 47 municipal buildings to provide offices
for the decentralized municipal land services while also serving as
offices for other key local government functions; and
(iii) Capacity building to mediate land conflicts, including (A)
capacity building within the justice sector through training for judges
and associated personnel and practicing lawyers; (B) new law school
curriculum modules focusing on land law and land conflict; (C) training
of municipal officials, local village councils and local land services
personnel on land conflict mediation; and (D) support for mobile land
conflict tribunals.
MCC Funding also will support implementation of environmental and
social mitigation measures as identified in the Environmental and
Social Management Framework, or as otherwise may be appropriate,
consistent with MCC Environmental Guidelines and OP 4.12.
(c) Site-Specific Land Tenure Interventions.
This Project Activity will ensure that both the Legal and
Procedural Change and Communication Project Activity and the
Institutional Development and Capacity Building Project Activity yield
their intended benefits across municipalities and in targeted
agricultural development zones. The Site-Specific Land Tenure
Interventions Project Activity employs a cluster approach to project
design, based around 15 clusters, each containing up to three to four
municipalities. Specifically, MCC Funding will support:
(i) Participatory land use management planning in up to 47 rural
municipalities, including training, mapping, operational costs, and
necessary assistance by regional and provincial institutions; and
(ii) Clarifying and securing rights in developed zones, including
in up to eight existing agricultural schemes subject to the phasing
approach, in the new MCC-funded irrigation scheme, and associated with
approximately 14,500 parcels in Ganzourgou province.
MCC Funding also will support implementation of environmental and
social mitigation measures as identified in the Environmental and
Social Management Framework, or as otherwise may be appropriate,
consistent with MCC Environmental Guidelines and OP 4.12.
Certain of the activities enumerated in Sections 2(b)(i), (b)(ii),
(c)(i) and (c)(ii) above will be subject to a phased approach. Unless
MCC otherwise agrees, phase one includes years one and two of the
Compact Term. Phase one will target 17 municipalities with a complete
package of technical assistance and
[[Page 42613]]
infrastructure construction, and also will include a set of up-front
investments that are not municipality-specific. Phase two will include
the balance of the Compact Term, and will target up to 30 additional
municipalities for technical assistance and infrastructure as well as
expand investment associated with the other sub-activities. MCC's
decision to initiate phase two investments is subject to satisfaction
of: (A) The achievement of an economic rate of return target; (B)
achievement of legal and policy change targets, including (1) passage
of the rural land law, (2) passage of the implementing regulations for
the rural land law, (3) passage of relevant revisions as may be
necessary or appropriate to the RAF legislation and (4) revision of the
regulations or bylaws for managed agricultural zones (Cahier de Charges
G[eacute]n[eacute]ral); (C) satisfactory progress on applicable
performance indicators specified in the M&E Plan; and (D) sufficient
progress toward milestones set in the Implementation Plan. In the event
that MCC determines, in its sole discretion, that phase one fails to
achieve the performance criteria outlined above, the MCC Funding
associated with phase two may be reallocated to other Project
Activities, consistent with Section 6.2(b) of the Compact.
3. Beneficiaries
The Rural Land Governance Project is expected to affect households
and businesses nationally, primarily through the Legal and Procedural
Change and Communication Project Activity, creating a better investment
climate for existing and prospective rural producers.
The Institutional Development and Capacity Building Project
Activity and the Site-Specific Land Tenure Interventions Project
Activity additionally will benefit rural producers located in the
targeted sites. These direct beneficiaries include producers in up to
47 of the country's 302 rural municipalities and in the targeted
agricultural development zones. Targeted sites will be organized in 15
clusters of contiguous municipalities with the expectation that
outcomes and impacts achieved by the cluster municipalities eventually
will extend to other neighboring municipalities that are not targeted
in this project, particularly as the clusters are allocated across all
13 administrative regions of the country. Several of the municipalities
will overlap with the Agricultural Development Project and others will
be along road segments to be supported under the Roads Project.
Improved land registration and mapping services at national, regional
or provincial levels may also benefit other public or private users who
are not located in target municipalities or managed scheme areas.
4. Sustainability
The foundation of this Project is a reformed legal, policy and
procedural framework for land tenure, which will ensure an enabling
environment for sustainability of the MCC investment. All site-specific
sub-activities will be based on new legal tools, assuring their support
in law. Training will target the range of local stakeholders to assure
buy-in. Most of the Project's site-specific interventions will be
scalable through the phased approach, thus enabling the expected
returns on an initial share of the investment to be tested before the
Project is expanded. By requiring that phase two be based on
demonstrated performance, the Project design stands as an innovative
approach to ensuring results and investment sustainability. All
training and equipment investments, particularly those associated with
strengthening regional and provincial registration and mapping
services, will reflect analysis of appropriate and sustainable capacity
building and technology choices.
The sustainability of the municipal buildings investment for each
beneficiary municipal government in phase one and phase two will be
supported by the requirement that municipal budgets contain sufficient
resources for building operation and maintenance, consistent with
Burkina Faso's current municipal government financing frameworks and
procedures associated with the decentralization law. All participating
municipal governments, or the Ministry of Economy and Finance on their
behalf, will be required to submit for MCA-Burkina Faso and MCC
approval a plan that details the operational arrangements for the
finished building as a condition on the launch of the associated works
procurements. These plans will include identification of the specific
local services planned to operate out of each building as well as
specific plans for building operations and maintenance.
5. Environmental and Social Mitigation Measures
The implementation of environmental management and gender
integration plans will ensure the sustainability of the Rural Land
Governance Project by mitigating potential impacts and strengthening
Project design. An environmental and social management framework
(``ESMF'') will be used to conduct the required environmental and
social impact analysis of the municipal buildings. The ESMF will
identify impacts as well as develop site-specific EMPs for each
building site. RAPs will also be developed to adequately plan for and
mitigate the resettlement impacts at building sites.
In addition, environmental and social safeguards consistent with
applicable rules, regulations and best practices in Burkina Faso will
be incorporated into all land use decision-making processes funded
through the Site-Specific Land Tenure Interventions Project Activity.
These safeguards will ensure the sustainable implementation of
interventions in existing protected areas. Furthermore, the ESMF will
develop a process to ensure community decision-making regarding
restricting access to natural resources and establish measures to
mitigate adverse impacts on livelihoods, such as the creation of a
compensation fund to register and improve land to allow for successful
realization of livelihood activities outside of protected areas.
Finally, the implementation of the Rural Land Governance Project will
be structured to ensure that women can benefit from the MCC-funded
investments, through the integration of appropriate mechanisms into the
new land law and into the overall implementation of the Project.
6. Donor Coordination
The Rural Land Governance Project builds on land tenure, rural
development and decentralization efforts supported by the World Bank,
the French Development Agency (Agence Fran[ccedil]aise de
D[eacute]veloppement or ``AFD''), the Danish International Development
Agency (``DANIDA''), the German Agency for Technical Cooperation
(Deutsche Gesellschaft f[uuml]r Technische Zusammenarbeit GmbH, or
``GTZ''), the Austrian Development Corporation, the Luxembourg Agency
for Development Cooperation, the International Fund for Agricultural
Development (``IFAD''), the International Finance Corporation
(``IFC''), the African Development Bank (``AfDB''), the United Nations
Food and Agriculture Organization (``FAO''), the Swedish International
Development Agency (``SIDA''), and the United Nations Development
Program (``UNDP''). MCC funding will co-finance, with the World Bank,
support for stakeholder consultation, legal drafting, and passage of
the new land law and application texts, as well as outreach and
dissemination once the new law is passed.
[[Page 42614]]
7. United States Agency for International Development
The United States Agency for International Development (``USAID'')
currently does not focus specifically on the land tenure sector in
Burkina Faso. However, the Government will work with USAID, as
appropriate, to identify potential opportunities for coordination with
respect to the Rural Land Governance Project.
C. Agriculture Development Project
1. Background
The Project Objective of the Agriculture Development Project is to
expand the productive use of land in order to increase the volume and
value of agricultural production in Project zones. In that regard, the
Agriculture Development Project is designed to increase rural incomes
and employment and to enhance the competitiveness of the rural
economies in the Sourou Valley and the Como[eacute] Basin by addressing
core constraints typical of rural Burkina Faso: poor water resource
availability and management; weak beneficiary capacity; lack of access
to information, markets, and inputs; and lack of access to credit.
Expected results include increased agricultural production and
productivity in Project zones, increased total area of land under
irrigation in Di, and increased availability of rural credit in the
Project's intervention zones.
2. Summary of Project and Activities
The Agriculture Development Project consists of the following
mutually reinforcing Project Activities:
(a) Water Management and Irrigation.
The Water Management and Irrigation Project Activity is designed to
ensure adequate water availability, water delivery, flood control, and
dam safety to support and protect investments in the Sourou Valley and
Como[eacute] Basin. Specifically, MCC Funding will support:
(i) Preparation and implementation of Integrated Water Resources
Management (``IWRM'') plans for the Sourou Valley and Como[eacute]
Basin in conformity with Burkina Faso's integrated water resources
management action plan (Plan d'Action de la Gestion
Int[eacute]gr[eacute]e des Ressources en Eau du Burkina Faso)
(``PAGIRE'');
(ii) Rehabilitation of the L[eacute]ry dam and associated
infrastructure (the ``L[eacute]ry Dam'');
(iii) Development of the Di irrigation scheme in the Sourou Valley;
(iv) Development of EIAs, EMPs, and RAPs for the respective
investments and implementation of mitigation measures as identified in
these assessments, or as otherwise may be appropriate, to include
compensation for physical and economic displacement of individuals,
residences and businesses affected by such rehabilitation and
construction, consistent with OP 4.12; and
(v) Provision of capacity building and technical assistance to
establish the institutional framework and financial capacity for
sustainable operation and maintenance of the water and irrigation
infrastructure, including, but not limited to, capacity building and
technical assistance to the Autorit[eacute] de Mise en Valeur de la
Vall[eacute]e du Sourou (``AMVS'') consistent with the recommendations
of the AMVS Management Audit (as defined in sub-section (b) below).
(b) Diversified Agriculture.
The Diversified Agriculture Project Activity will build on the
delivery of water in the Project zones by supporting on-farm production
and related activities throughout the agricultural value chain.
Specifically, MCC Funding will support:
(i) Extension services, demonstration farms and technical
assistance services, assisting beneficiaries in irrigated and rain-fed
areas;
(ii) Business development services, including transaction
brokering, technology transfer, and links to the Access to Rural
Finance Activity;
(iii) Expansion of market information systems and rehabilitation of
district markets;
(iv) Improvement of the quality and accessibility of private animal
health services and increasing the capacity of public agencies to
provide technical support and professional training to veterinary
practitioners; and
(v) Development of EIAs and EMPs for the respective investments and
implementation of mitigation measures as identified in these
assessments, or as otherwise may be appropriate.
A management audit of AMVS (the ``AMVS Management Audit'') will be
conducted prior to Entry into Force of the Compact to assess the
efficacy and efficiency of AMVS, including, but not limited to, its
strategic planning, organization, operating systems, resources, and
personnel and management systems. Following discussion of the
recommendations of the AMVS Management Audit with key stakeholders, an
action plan agreed by the Parties (the ``AMVS Action Plan'') will be
implemented by AMVS.
(c) Access to Rural Finance.
This Project activity will increase medium- and long-term credit in
the four western regions of Sud-Ouest, Hauts Bassins, Cascades, and
Boucle du Mouhoun. Specifically, MCC Funding will support:
(i) An on-lending facility to provide medium-to long-term loans,
particularly to farmers and small- and medium-sized, rural and
agricultural enterprises;
(ii) Improvement of the capacity of participating financial
institutions to profitably and securely expand rural lending; and
(iii) Increasing the ability of creditworthy enterprises in the
region to access credit, including women-owned enterprises.
3. Beneficiaries
The principal beneficiaries of the irrigation investments will be
people with some farming experience with dry-land crops who receive
irrigated land. Many beneficiaries are expected to be those people who
are earning less than US$2/day and selection criteria for land
allocation are designed to serve this category of beneficiaries. The
farmers on the existing irrigation perimeters who will benefit from the
technical assistance activities more likely fall into a slightly higher
income category. Beneficiaries of the livestock, L[eacute]ry Dam, and
market investments are more likely to be like the relatively poor dry
land farmers. Beneficiaries of the investments in the Water Management
and Irrigation Project Activity and the Access to Rural Finance Project
Activity will be widely distributed in Sourou, Hauts Basins, Sud Ouest,
and Cascades Regions.
4. Sustainability
The ability of farmers to adapt to new irrigation and agricultural
methods, and the executing agencies to complete the project within the
Compact Term, will be crucial for a successful and sustainable outcome.
Availability of sufficient water resources and fertile soils, and the
capacity for implementing proper operation and maintenance of
facilities and infrastructure, are limiting factors to sustainable
development in Burkina Faso. The Agriculture Development Project is
designed to address these key constraints in partnership with the
Government and with the commitment of beneficiaries. To achieve the
Project's goals, MCC Funding will strengthen the capacity of key
stakeholders through training and technical assistance, and will create
the enabling environment that ensures proper levying of water fees and
adequate operation and maintenance of the infrastructure and
facilities.
The overall sustainability of the Project lies with: (a) The
strengthened capacity of the Direction G[eacute]n[eacute]rale des
Ressources en Eau (``DGRE'') to better manage and maintain water
storage in
[[Page 42615]]
the Sourou reservoir; (b) the strengthened capacity of AMVS through its
operation and maintenance contractors to provide a reliable supply of
water to farmers as specified in the by-laws of the project (Cahier de
Charges); (c) the capacity of beneficiaries, through their Water User
Associations (``WUA'') to pay for operations and maintenance to ensure
the provision of irrigation water; (d) the establishment of an
operations and maintenance fund managed and overseen by AMVS and the
WUAs; and (e) the Government to ensure that the Cahier de Charges is
respected by the parties to it. Contingent upon full continuing
execution of the operations and maintenance action plan pursuant to the
AMVS Management Audit, a deposit of MCC Funding equal to approximately
1.5 times the estimated cost of operations and maintenance of the Di
irrigation infrastructure for one year, may be made into the operations
and maintenance fund, unless otherwise agreed by the Parties.
Notwithstanding such deposits, MCC anticipates that farmers will, from
the outset, pay water charges incrementally toward the full cost of
operations and maintenance within the first two years of operation.
With respect to the L[eacute]ry Dam, the Government will ensure that a
plan and adequate resources are in place to cover yearly operation and
maintenance costs associated with the L[eacute]ry Dam. Land allocation
and future land management within the scheme area will be supported by
general and specific by-laws (Cahier de Charges), whose content will be
approved by MCC. The Rural Land Governance Project will support land
use planning and management and capacity-building to the municipalities
overlapping with targeted areas, and will support registration of
rights in the targeted scheme areas.
Projects with similar objectives have failed in the past because of
the failure of public and private entities to consistently deliver on
their commitments to growers. The focus of this Project is not on
building a particular service capacity for which external funding will
always be needed. It rather will foster relationships between producers
and commercial suppliers of the goods and services they need and
between AMVS and the WUAs, so that mutual interest is served by each
continuing to perform his or her part. The objective is to ensure that
producers acquire the knowledge and the ability to recognize their
needs for information, and to develop the network and capacity to meet
that need, through more diverse and direct sources than a conventional,
pubic sector agent.
5. Environmental and Social Mitigation Measures
Environmental sustainability of the Agriculture Development Project
will be promoted through the implementation of site-specific
interventions to reduce the potential for downstream surface water
contamination, reforestation actions to address fuel-wood shortages,
and use of pest management plans. Additionally, training and capacity
building for the AMVS and Ministry of Environment officials will help
ensure that environmental and social issues will be adequately managed.
Social sustainability will be promoted by the integration of completed
gender analysis into final Project design and terms of reference for
implementation to ensure women and families benefit from Project
investments, targeted training and through a transparent parcel
allocation scheme. Thorough resettlement analysis will also contribute
to social sustainability through the identification of mitigation and
compensation measures that will factor into the Resettlement Action
Plans.
Detailed assessments and mitigation plans will be developed for the
Agriculture Development Project as follows: (a) EIAs, EMPs and RAPs for
the water management and irrigation activities at Di and L[eacute]ry,
focusing on environmental, social, and resettlement impacts of the
creation of the Di irrigated perimeter as well as the rehabilitation of
the L[eacute]ry Dam; (b) in connection with the Diversified Agriculture
Project Activity, an EIA, EMP, and RAP for the market rehabilitation
component, focusing on the environmental, social, and resettlement
impacts of rehabilitating up to eight district markets; (c) an EIA and
EMP of the diversified agriculture activities, focusing on the
environmental impacts of agricultural intensification in the region and
its aquatic ecosystems; (d) a plan to build environmental and social
capacity for the AMVS to ensure that minimum capacity is present for
monitoring impacts and monitoring compliance with MCC's Environmental
Guidelines and the MCC Gender Policy; and (e) appropriate guidelines
and requirements for the Access to Rural Finance Project Activity to
ensure that end-borrowers implement projects in compliance with the
Government's environmental regulations and MCC's Environmental
Guidelines.
6. Donor Coordination
The Project design draws extensively on the work of other donors.
MCC consulted with the EU on the IWRM, and with the World Bank and AfDB
on irrigation and agriculture. Lessons learned, particularly with
regard to including supporting technical assistance for farmers, have
been incorporated to improve the design of this project and foster its
sustainability. A number of other donors have been active in the target
rural areas of the Project, including the World Bank, AfDB, USAID, the
Fonds Europ[eacute]en De D[eacute]veloppement (``FED'') as well as
Swiss and Belgian bilateral aid agencies. In several cases, the actions
to be taken under the Project complement other initiatives. For
example, the market information system will continue work begun under a
USAID project, and the improvements to district markets will draw on
the experience of the Swiss Development Agency. In addition, the Access
to Rural Finance Project Activity has been designed in consultation
with other donor funded micro, small and medium sized rural enterprise
(``MSME'') activities in Burkina Faso. In particular, synergies will be
gained in implementation through close coordination with the
International Finance Corporation's MSME credit program, the World
Bank's Projet d'Appui aux Fili[egrave]res Agro-Sylvo-Pastoral Project
(``PAFASP''), and the World Bank and EU-funded Maison de l'Enterprise
which provides business support services. MCC anticipates that
consultations will continue with these donors and with others who may
develop interventions within the Project zones.
7. United States Agency for International Development
USAID currently does not focus specifically on the agriculture
sector in Burkina Faso. However, the Government will work with USAID,
as appropriate, to identify potential opportunities for coordination
with respect to the Agriculture Development Project.
8. Policy, Legal and Regulatory Reforms
The Government will continue institutional reforms and initiatives
aimed at sustainable water resource management that would support the
development of the Integrated Water Resource Management plans prepared
and financed pursuant to this Compact.
The Government will exercise its best efforts to ensure compliance
of all stakeholders with their obligations as set out in the various
Cahier de Charges relevant to the Di irrigation perimeter. If
[[Page 42616]]
such stakeholders fail to fulfill those obligations with respect to
operation and maintenance of the irrigation system, the Government
shall ensure that such operation and maintenance is performed in any
event.
The Government will put in place in the Sourou Valley region
adequate health infrastructure, and will deploy the necessary staff to
ensure proper functioning of this infrastructure, in conformity with
the standards of the National Health Service Plan (Plan de
Developpement Sanitaire) in use in Burkina Faso.
In addition, the implementation by the Government, to the
satisfaction of MCC in its discretion, of the policy, legal and
regulatory reform described below shall be conditions precedent to
specified Disbursements: the Government will ensure the availability of
funds and provide a timeline acceptable to MCC for the construction of
identified agriculture access roads in the vicinity of the Di
perimeter: (a) Di--Poura--Ourokou--Poro--Dono, and (b) Dono--Niassari--
Bouna.
D. Roads Project
1. Background
Burkina Faso's Poverty Reduction Strategy Paper identifies
infrastructure development as a critical priority for increased
economic growth. For a landlocked country, the road transport network
is an important asset for economic development. Such a network
facilitates trade and communications with regional and international
markets and improves local connectivity of farms to markets. Road
network investments also improve access to social services in rural
communities, such as those in western Burkina Faso, which currently are
underserved by an adequate transport system.
The Project Objective of the Roads Project is to enhance access to
markets through investments in the road network. More specifically, the
Roads Project is designed to: (a) Improve access to agricultural
markets by upgrading primary and rural road segments serving the Sourou
Valley and the Como[eacute] Basin; (b) reduce travel time to markets
and reduce vehicle operating costs; and (c) ensure the sustainability
of the road network by strengthening road maintenance. Expected results
include increased volume of freight and passenger traffic on
rehabilitated roads, reduced travel times and costs, and improved road
maintenance. The Project includes a set of primary and rural roads
projects for upgrading to appropriate functional standards and designed
to carry projected traffic for a 15 to 20 year horizon. Benefits are
expected to result primarily from increasing the year-round
accessibility to markets of agriculturally productive regions that are
typically cut off during the rainy season.
2. Summary of Project and Activities
The Roads Project consists of the following Project Activities:
(a) Development of Primary Roads.
The Development of Primary Roads Project Activity will support the
improvements of three primary road segments in western Burkina Faso
currently projected to total 271 kilometers. The segments to be
financed using MCC Funding include the development of a 145 kilometer
segment from Dedougou--Nouna--Mali border, the development of a 76
kilometer segment from Sabou--Koudougou--Didyr, and a 50 kilometer
segment from Banfora--Sindou (collectively, the ``Primary Roads'').
Specifically, MCC Funding will support:
(i) Implementation of construction activities for the opening,
improvement, or rehabilitation of the Primary Roads;
(ii) Implementation of environmental and social mitigation measures
as identified in the EIA and the RAP, or as otherwise may be
appropriate, to include compensation for physical and economic
displacement of individuals, residences and businesses affected by such
rehabilitation and construction, consistent with OP 4.12; and
(iii) Project management, supervision and auditing of such
improvements and upgrades.
(b) Development of Rural Roads.
The Development of Rural Roads Project Activity will support the
improvements of rural road segments currently projected to total 151
kilometers located in three rural areas in the Como[eacute] Basin of
southwestern Burkina Faso, including the Provinces of Leraba, Comoe,
and Kenedougou (collectively, the ``Rural Roads''). These roads
currently exist as rural tracks and improvements will include upgrading
to a fully engineered rural road standard. Specifically, MCC Funding
will support:
(i) Implementation of construction activities for the opening,
improvement, or rehabilitation of the Rural Roads;
(ii) Implementation of environmental and social mitigation measures
as identified in the EIA and the RAP, or as otherwise may be
appropriate, to include compensation for physical and economic
displacement of individuals, residences and businesses affected by such
rehabilitation and construction, consistent with OP 4.12; and
(iii) Project management, supervision and auditing of such
improvements and upgrades.
(c) Capacity Building and Technical Assistance for Road
Maintenance.
The Capacity Building and Technical Assistance Project Activity
will provide capacity building and technical assistance to existing
government agencies and private sector institutions involved with road
maintenance activities to improve the planning and implementation of
road maintenance. Specifically, MCC Funding will support:
(i) Assistance in developing a five-year road maintenance plan;
(ii) Training on procurement processes, contract management, and
financial accounting systems;
(iii) Support for development of administrative framework of the
IMFP (as defined below);
(iv) Support for public outreach programs for improving safety and
protection of road infrastructure; and
(v) Any other related activities as may be approved by MCC.
MCC Funding will also be used for environmental and social capacity
building of the Ministry of Environment and Ministry of Infrastructure.
(d) Incentive Matching Fund for Periodic Road Maintenance.
The Incentive Matching Fund for Periodic Road Maintenance
(``IMFP'') Project Activity is designed to set the Government on a path
toward long-term, sustainable funding of periodic maintenance on the
full road network in Burkina Faso. MCC Funding will be used to finance
periodic road maintenance works through an incentive matching fund that
will match annual increases in the Government's dedicated funding for
periodic maintenance, subject to measurable indicators of performance
on maintenance planning, capacity, and implementation. MCC and the
Government envision that the IMFP will be administered by the Road
Maintenance Fund of Burkina (Fonds d'Entretien Routier du Burkina--FER-
B), an institution established by the Government in cooperation with
the World Bank (the ``Road Fund''). MCC Funding of the IMFP is subject
to the fulfillment of the following conditions, as such conditions are
further specified in the Program Implementation Agreement: (i) The
preparation and delivery by the Government of a five-year road
maintenance plan that will be updated annually; (ii) the presentation
by the Government of evidence, satisfactory to MCC, that Direction
G[eacute]n[eacute]rale des Routes (``DGR'') and Direction
G[eacute]n[eacute]rale des Pistes Rurales (``DGPR'') have improved
procurement,
[[Page 42617]]
contract management and implementation oversight capacities; (iii) the
presentation by the Government of evidence, satisfactory to MCC, that
the Road Fund has adopted appropriate financial controls (including
cash management and accounting controls) and operational systems
(including with respect to contract management), and such mechanisms
are formalized, implemented and verified pursuant to technical and
financial audits conducted in accordance with the by-laws (Cahier de
Charges) of the Road Fund approved by MCC; and (iv) the establishment
of the relative contributions of the Government and MCC to the IMFP, as
agreed upon between MCC and the Government, and the provision by the
Government of evidence of financing sufficient to meet the Government's
share of such contributions. In connection with this sub-section (d),
the Parties shall use their best efforts to consult with other donors
where appropriate.
3. Beneficiaries
Key beneficiaries of the Roads Project will include the population
in the areas serviced by the roads as well as those who transship goods
through the region using the roads. Anticipated benefits include
increased production (for both inputs such as fertilizer, and outputs
such as farm produce) due to improved access to markets resulting from
reduced travel time and reduced vehicle operating costs. In addition,
reducing the isolation of these communities may increase access to
health and education services.
4. Sustainability
Road maintenance is crucial for the long term function and benefit
of the Roads Project investment. The continuation of efforts to
mobilize resources for road maintenance is essential to ensure
sustainability of the road investments. In support of road maintenance,
the provision by MCC of matching funds to annual increases in
Government spending on periodic maintenance is an innovative mechanism
to ensure roads are adequately maintained and continue to stimulate
access into the long-term.
5. Environmental and Social Mitigation Measures
Environmental sustainability of the Roads Project will be promoted
through the conduct of comprehensive environmental and social impact
assessments that will build upon the environmental and social work
already completed. In addition, the Roads Project will include a series
of training and short-term educational seminars that will include
coverage of sound environmental and social performance for existing
contractors active in the road maintenance industry.
EIAs will be completed for each set of roads to be rehabilitated or
upgraded, and each EIA will include gender analysis, EMPs and HIV/AIDS
prevention plans. In addition, RAPs will be developed and implemented
for each road segment. While environmental and social impacts related
to the IMFP Project Activity are not expected to be significant,
requirements will be incorporated into the design of the IMFP. Further,
annual technical audits will include consideration of environmental and
social performance.
6. Donor Coordination
Throughout due diligence, MCC has consulted with major donors
involved in funding road construction and capacity building/
institutional strengthening projects in Burkina Faso. MCC has been
particularly active in coordinating its approach to road maintenance,
an increasingly important collective concern among the major donors.
Technical assistance under the Capacity Building and Technical
Assistance for Road Maintenance Project Activity has been structured to
complement ongoing technical assistance programs, to build on the World
Bank's assistance that resulted in the establishment of the Road Fund,
and to strengthen work initiated by the AfDB and the EU on road
maintenance. Design of the IMFP, in particular, was developed in
collaboration with the World Bank and the EU.
The road segments selected for MCC Funding provide connections with
current road construction activities funded by other donors. The
Koudougou to Dedougou road segment, funded by the Islamic Development
Bank (``BID''), Arab Bank for Economic Development in Africa
(``BADEA''), Arab Development Fund (``FAD''), Kuwait Fund for Arab
Economic Development, Saudi Fund for Development, OPEC Fund for
International Development and the Government, lies in between the
Dedougou-Mali border road and the Sabou-Koudougou-Didyr road. The Sabou
to Koudougou road segment intersects with the EU-funded periodic
maintenance on the Sabou to Bobo-Dioulasso road and works on the Sabou
to Ouagadougou road anticipated to be funded by the World Bank.
7. United States Agency for International Development
USAID currently does not focus specifically on the roads and
transport sectors in Burkina Faso. However, the Government will work
with USAID, as appropriate, to identify potential opportunities for
coordination with respect to the Roads Project.
8. Policy, Legal and Regulatory Reforms
The implementation by the Government, to the satisfaction of MCC in
its discretion, of the policy, legal and regulatory reforms described
below shall be conditions precedent to the specified Disbursements:
(a) The Government will ensure that the Road Fund is fully
operational in accordance with Burkina Faso law with all staff,
management, and financial systems in place for efficient execution of
the road maintenance works including contract management, performance
monitoring and works verification.
(b) The Government will ensure that DGR and DGPR have improved
operational processes to conduct procurement, contract management, and
monitoring of road maintenance works, as measured by mutually agreed
targets, to facilitate the implementation of the Road Fund.
(c) The Government will ensure that a transparent method of funding
periodic maintenance is established to support the Road Fund.
In addition, the Government will actively pursue participation of
the private sector in maintenance work through a series of training
seminars and outreach activities to improve private sector
understanding of procurement processes, contracting requirements, road
maintenance methods/best practices, and maintenance standards.
E. Bright 2 Schools Project
1. Background
The Project Objective of the BRIGHT 2 Schools Project is to
increase primary school completion rate for girls and builds upon the
successes of the Burkinab[eacute] Response to Improve Girls' Chances to
Succeed (``BRIGHT'') funded under the MCC Threshold Program. In
addition, the BRIGHT 2 Schools Project will further support the efforts
of the Ministry of Basic Education and Literacy (Minist[egrave]re de
l'Enseignement de Base et de l'Alphab[eacute]tisation or ``MEBA'') to
increase girls'' primary education completion rate. The Project focuses
on maintaining high levels of girls' enrollment and retention as they
move on to the higher grades (4-6) in
[[Page 42618]]
their new classrooms. Specific objectives of the Project are to: (a)
Maintain the high enrollment rates; (b) anchor the girls' education
principles in the respective communities for the benefit of future
generations of school-aged girls; and (c) start a program for school
maintenance.
The BRIGHT 2 Schools Project will consist of two phases. Phase one,
scheduled from September 2008 to December 2009, will be an interim
phase to provide temporary classroom solutions and to maintain
community interest at the respective schools to be supported by Compact
Implementation Funding. Phase two, scheduled from the date the Compact
enters into force and for the three consecutive years thereafter, will
consist of construction work in addition to all other Project
Activities. Several months of anticipated overlap between phase one and
phase two will allow for a smooth transition between the two stages.
The BRIGHT 2 Schools Project will be administered by USAID pursuant
to an agreement between USAID and MCC (the ``Administration
Agreement''). Accordingly, the Government will not be responsible for
Project Activities for which USAID has sole responsibility under the
Administration Agreement (including with respect to applicable
Disbursements to USAID). Notwithstanding the foregoing, the Government
will cooperate with USAID and perform its obligations to achieve the
BRIGHT 2 Schools Project Objective consistent with this Compact, the
Program Implementation Agreement and any other Supplemental Agreement.
2. Summary of Project and Activities
The BRIGHT 2 Schools Project consists of the following mutually
reinforcing Project Activities:
(a) Borehole Construction/Rehabilitation and/or Water Catchment
Systems.
MCC Funding will support some or all of the following:
(i) The construction of up to 50 additional boreholes for the
exclusive use of the school complex;
(ii) The purchase and installation of pipe and water catchments,
where technically feasible, in accordance with environmental
regulations, and budget permitting; and
(iii) Such other activities as may be determined by MCC in
consultation with USAID.
(b) Construction of Schools Complexes.
MCC Funding will support the identification, in consultation with
respective communities, of the exact location for expansion of existing
schools and their construction. It also will support the construction
of an additional classroom block of three classrooms at each of the 132
locations, for a total of 396 additional classrooms (including
equipment), 396 teacher housing units, (including latrine, bathing
space and kitchen), two blocks of three latrines (for a total of 792
latrines), sports grounds and sports equipment.
(c) Bisongos (Kindergartens)
MCC Funding will support the construction of 122 bisongos,
including playground and equipment. Such construction will utilize
existing designs prepared by Catholic Relief Services and made
available to the Ministry of Social Action and National Solidarity.
(d) Take-Home Rations.
This Project Activity will provide food for daily meals (``Take-
Home Rations'') during the nine months of the school year for
approximately 100 children estimated to be enrolled at each of the 132
bisongos. The Project also will provide monthly Take-Home Rations for
girls demonstrating 90 percent monthly attendance in grades 1-4 (CP1-
CE2) during the nine-month school year. Forty-five girls per grade are
estimated to be able to benefit from Take-Home Rations, which consist
of approximately eight kilograms of rice or other dry foods. Take-Home
Rations will be provided based on studies showing that school meals are
an effective way of ensuring attendance and improving academic
performance. Implementers will be encouraged to work with teachers and
parents to create school gardens to enhance participation in canteen
planning and management for nutritious meals. The initiative supports
MEBA's strategic plan, and anticipates training sessions for teachers
in the school garden concept and nutrition.
(e) Social Mobilization Campaign.
This Project Activity will build community ownership around the
school and the value of education through social mobilization, literacy
training, and other efforts in the 132 rural communities. Specifically,
MCC Funding will support:
(i) Well-targeted social mobilization campaigns on topics to serve
as content for literacy training, school director and teacher training,
and as the basis for community discussion groups, including messages on
gender parity, the lifelong value of education and literacy, school
maintenance, canteen and bisongo management;
(ii) Assistance to the Associations des M[egrave]res Educatrices
(``AME'') to mentor girls;
(iii) Training teachers in sensitivity to gender issues; and
(iv) An incentive program for female teachers.
(f) Adult Literacy/Management of Micro-Projects.
MCC Funding will support the training of trainers, delivery of
literacy courses, and training in micro-project management for women
and mothers in the 132 communities. This Project Activity will build on
existing literacy programs and lead to the development of training
materials that respond to the needs of the communities and enhance the
women's understanding of the benefits of their own education as well as
their role in supporting their daughters' and the school in general.
Specifically, MCC Funding will support:
(i) Training in management of micro-projects for income generation
to help boost community development; and
(ii) Literacy training for mothers.
(g) Program Support.
MCC Funding will be used for direct and indirect costs incurred by
USAID in the implementation of this Project.
3. Beneficiaries
Approximately 19,800 children, including approximately 9,900 girls,
will benefit from the construction of the remaining classrooms for
BRIGHT schools in 132 communities in 9 provinces. In addition, it is
estimated that 13,200 children will benefit from the bisongos
(kindergartens), 39,600 children will benefit from the meals provided
in schools, and 13,200 girls and their families will benefit from the
Take-Home Rations.
4. United States Agency for International Development
USAID will serve as the administrator for the BRIGHT 2 Schools
Project pursuant to the Administration Agreement.
5. Policy, Legal and Regulatory Reforms
The Government will implement the policy, legal and regulatory
reforms described below.
(a) The Government will ensure the nomination by MEBA of a BRIGHT 2
Schools Project Coordinator and Coordination Team, and shall ensure
that a BRIGHT 2 Schools Project Coordinator and Coordination Team are
in place for the duration of the Project.
(b) The Government will provide an annual budget allocation, in
accordance with Section 2.6(c) of the Compact, to MEBA for teacher
salaries and other recurrent costs for the existing 132 BRIGHT schools
(including classrooms and other facilities funded under the BRIGHT 2
Schools Project).
[[Page 42619]]
F. Implementation Framework
1. Overview
The implementation framework and the plan for ensuring adequate
governance, oversight, management, monitoring and evaluation, and
fiscal accountability for the use of MCC Funding are summarized below.
MCC and the Government shall enter into the Program Implementation
Agreement, and any other agreements in furtherance of this Compact, all
of which, together with this Compact, shall set out certain rights,
responsibilities, duties and other terms relating to the implementation
of the Program.
2. MCC
MCC will take all appropriate actions to carry out its
responsibilities in connection with this Compact and the Program
Implementation Agreement, including the exercise of its approval rights
in connection with the implementation of the Program.
3. MCA-Burkina Faso
The Government, by Decree No. 2008-185/PRES/PM dated April 18,
2008, of the Council of Ministers of Burkina Faso (the ``Decree''),
established MCA-Burkina Faso as an independent legal entity empowered
to carry out the Government's obligations and to implement the Program
under this Compact. The Government shall ensure that MCA-Burkina Faso
takes all appropriate actions to implement the Program, including the
performance of the rights and responsibilities designated to it by the
Government pursuant to this Compact and the Program Implementation
Agreement. The Government also shall ensure that MCA-Burkina Faso has
full decision-making autonomy, including, inter alia, the ability,
without consultation with, or the consent or approval of, any other
party, to (a) enter into contracts in its own name, (b) sue and be
sued, (c) establish an account in a financial institution in the name
of MCA-Burkina Faso and hold MCC Funding in that account, (d) expend
MCC Funding, (e) engage one or more fiscal agents who will act on
behalf of MCA-Burkina Faso on terms acceptable to MCC, (f) engage one
or more procurement agents who will act on behalf of MCA-Burkina Faso,
on terms acceptable to MCC, to manage the acquisition of the goods,
works and services requested by MCA-Burkina Faso to implement the
activities funded by this Compact, and (g) competitively engage one or
more auditors to conduct audits of its accounts.
MCA-Burkina Faso will be administered and managed by the following
bodies: (a) Le Comit[eacute] d'Orientation et de Suivi, acting as its
Board of Directors (the ``Board''); (b) L'Unit[eacute] de Coordination,
acting as its management unit (the ``Management Unit''); and (c) Le
Conseil National, acting as its stakeholders committee (the
``Stakeholders Committee''). The governance of MCA-Burkina Faso will be
set forth in more detail in the Program Implementation Agreement, the
constitutive documents and internal regulations of MCA-Burkina Faso
(``MCA-Burkina Faso Bylaws'') laying out the responsibilities of the
Board, the Management Unit, and the Stakeholders Committee. The MCA-
Burkina Faso Bylaws will be in accordance with MCC's Guidelines for
Accountable Entities and Implementation Structures, published on the
MCC Web site (the ``Governance Guidelines'').
(a) Board of Directors (Le Comit[eacute] d'Orientation et de
Suivi).
(i) Composition. Consistent with the Decree and the Governance
Guidelines, MCA-Burkina Faso shall be governed by the Board, which
shall consist of those voting and non-voting members set forth in the
Decree. Any alteration of the composition of the Board shall be subject
to MCC approval.
(ii) Roles and Responsibilities. The Board will be responsible for
overseeing the implementation of the Program, including making major
decisions, such as approving annual implementation plans, disbursement
requests, annual progress reports, key contracts, and reporting on
policy reforms, as well as other responsibilities defined in the MCA-
Burkina Faso Bylaws. The Board will have final decision-making
authority over the implementation of the Program. It will meet
regularly; the frequency of meetings will be set forth in the MCA-
Burkina Faso Bylaws and will be in accordance with the Governance
Guidelines. The specific roles of the voting and non-voting members
will be set forth in the MCA-Burkina Faso Bylaws.
(b) Management Unit (L'Unit[eacute] de Coordination).
(i) Composition. The Management Unit, which will be led by a
competitively selected National Coordinator, also will be composed of
competitively recruited Directors with expertise in the key components
of the Program, a Legal Counsel, and other key Directors, including
Directors of Environmental and Social Assessment, Procurement,
Administration and Finance, and Monitoring and Evaluation, together
with such other managers and officers as may be agreed by the
Government and MCC. The Directors will be supported by appropriate
staff to enable the Management Unit to execute its roles and
responsibilities.
(ii) Roles and Responsibilities. The Management Unit will be based
in Ouagadougou, Burkina Faso, and will be responsible for managing the
day-to-day implementation of the Program with oversight from the Board.
It will serve as the principal link between MCC and the Government and
will be accountable for the successful execution of the Program, each
Project and each Project Activity. As an administrative structure of
the Government, MCA-Burkina Faso will be subject to Government audit
requirements. As a recipient of MCC Funding, it will also be subject to
MCC audit requirements.
4. Stakeholders Committee (Le Conseil National)
(a) Composition. The Government has established a strategic
Stakeholders Committee, in conformity with the Governance Guidelines,
to ensure the continuation of the consultative process throughout the
implementation of the Program. The Stakeholders Committee shall consist
of up to 28 members (or such other number as may be selected by the
Government and approved by MCC), including deputies, mayors, regional
government counselors, and representatives from banks in the project
intervention zone, the private sector, environmental NGOs, women's
associations, fruits and vegetable exporters, farmers' associations in
the Sourou and Como[eacute], and religious and customary authorities.
The Government also will establish, in the project intervention and
project-affected areas, informal stakeholders' committees whose size
and composition will reflect the sectors, activities and concerns of
the Program, and include key NGOs, the private sector, civil society,
and decentralized regional and local government bodies.
(b) Location. The strategic Stakeholders Committee and the informal
stakeholders' committees will convene where appropriate to ensure
maximum participation in providing feedback on Program and Project
implementation.
(c) Roles and Responsibilities. The strategic Stakeholders
Committee will serve as a feedback and accountability mechanism for
MCA-Burkina Faso throughout the Program's implementation. It will be
responsible for continuing the consultative process throughout Program
implementation and will consult with the informal stakeholders'
committees on a regular basis or at the request of an informal
stakeholders' committee as set forth in
[[Page 42620]]
the MCA-Burkina Faso Bylaws. The informal stakeholders' committees will
not have decision-making authority but, at the request of the strategic
Stakeholders Committee, will review certain reports, agreements and
documents, including implementation documents to the extent
appropriate, and provide advice and feedback regarding the Program's
implementation.
5. Implementing Entities
(a) Composition. The Government and MCC have identified the
principal ministries and public institutions that may or will serve as
implementing entities (each, an ``Implementing Entity''). Such
Implementing Entities include, but are not limited to, (i) the AMVS,
within the Ministry of Agriculture; (ii) the Direction
G[eacute]n[eacute]rale des Routes, within the Ministry of
Infrastructure; (iii) the Direction G[eacute]n[eacute]rale des Pistes
Rurales, within the Ministry of Infrastructure; (iv) the Road Fund; (v)
the Ministry of Environment (Minist[egrave]re de l'Environnement et du
Cadre de Vie); and (vi) appropriate Directions of the Ministry of
Economic and Finance (Minist[egrave]re de l'Economie et des Finances)
for the Rural Land Governance Project. MCA-Burkina Faso will enter into
agreements with the Implementing Entities that set forth their roles
and responsibilities in connection with Program implementation.
(b) Location. The Implementing Entities will be based where
appropriate to ensure maximum effectiveness in Program and Project
implementation. Additional personnel to be based within the
Implementing Entities may be contracted by MCA-Burkina Faso where
appropriate.
(c) Roles and Responsibilities. The Implementing Entities will be
responsible for the coordination of the Project Activities and of
various contractors, the achievement of Project Objectives and
timelines, development of Compact-related requirements (work plans,
detailed financial plans, and quarterly reports), procurement (where
MCC has determined that procurement tasks may be performed by the
Implementing Entity), performance monitoring of contractors and such
other Program-related activities as may be agreed by MCA-Burkina Faso
and an Implementing Entity with the prior written approval of MCC.
6. Fiscal Agent
Through a competitive process approved by MCC, the Government has
appointed a fiscal agent (the ``Fiscal Agent'') to provide fiscal agent
services to MCA-Burkina Faso. The Fiscal Agent will provide a broad
range of financial management services required by MCA-Burkina Faso to
implement the Program, including funds control, disbursement
documentation and management, cash management and accounting, as set
forth in the Fiscal Agent Agreement. The Government shall take all
appropriate actions to ensure that the Fiscal Agent performs these
services in accordance with the terms of this Compact, the Program
Implementation Agreement, and any other agreement to which the Fiscal
Agent is a party and that all accounting in connection with the Program
is in accordance with International Accounting Standards (IAS) as
contemplated by Section 3.7(b)(i) of the Compact.
7. Procurement Agent
Through a competitive process approved by MCC, the Government has
appointed a procurement agent (the ``Procurement Agent'') to provide
procurement agent services to MCA-Burkina Faso. The Procurement Agent
will administer all Program and administrative procurements, and
provide specified procurement appropriate activities required by MCA-
Burkina Faso to implement the Program, as set forth in the Procurement
Agent Agreement; provided, however, that the Procurement Agent shall
not be responsible for those procurements administered pursuant to the
Administration Agreement. The Government shall take all appropriate
actions to ensure that the Procurement Agent performs these services in
accordance with the terms of this Compact, the Program Implementation
Agreement, and any other agreement to which the Procurement Agent is a
party and in accordance with the MCC Program Procurement Guidelines.
Annex II Summary of the Multi-Year Financial Plan
1. General
This Annex II to this Compact (the ``Financial Plan Annex'')
summarizes the Multi-Year Financial Plan for the Program. Each
capitalized term in this Financial Plan Annex shall have the same
meaning given such term elsewhere in this Compact. Unless otherwise
expressly stated, each Section reference herein is to the relevant
Section of the main body of this Compact.
The Multi-Year Financial Plan Summary below sets forth the
estimated annual contribution of MCC Funding for Program
administration, Program monitoring and evaluation, and implementing
each Project. The Government's contribution of resources will consist
of in-kind contributions and amounts required effectively to satisfy
the requirements of Section 2.6(a) of this Compact. In accordance with
the Program Implementation Agreement, the Government will develop and
adopt on a quarterly basis a detailed financial plan (as approved by
MCC) setting forth annual and quarterly funding requirements for the
Program (including administrative costs) and for each Project,
projected both on a commitment and cash requirement basis.
2. Modifications
Consistent with Section 6.2(b) of this Compact, to preserve
administrative flexibility, the Parties may by written agreement (or as
otherwise provided in the Program Implementation Agreement), without
amending this Compact, change the designations and allocations of MCC
Funding among the Projects, the Project Activities, or any activity
under Program administration or monitoring and evaluation, or between a
Project identified as of the entry into force of this Compact and a new
project.
[[Page 42621]]
Multi-Year Financial Plan Summary (US$)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Project CIF Year 1 Year 2 Year 3 Year 4 Year 5 Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. Rural Land Governance Project:
Legal and Procedural Change and 144,667 943,916 366,792 240,422 240,422 75,592 2,011,811
Communication......................
Institutional Development and 54,667 2,394,586 8,975,304 10,370,277 9,278,614 6,934,211 38,007,659
Capacity Building..................
Site-Specific Land Tenure 906,078 3,871,586 3,654,951 4,992,964 4,560,964 1,928,602 19,915,145
Interventions......................
---------------------------------------------------------------------------------------------------------------
Sub-Total....................... 1,105,412 7,210,088 12,997,047 15,603,663 14,080,000 8,938,405 59,934,615
2. Agriculture Development Project:
Water Management and Irrigation..... 3,838,844 6,761,835 26,576,645 34,497,680 15,805,924 3,957,941 91,438,869
Diversified Agriculture............. 932,758 8,349,515 11,599,192 6,685,782 6,936,923 2,001,462 36,505,632
Access to Rural Finance............. - 2,798,084 2,773,453 2,845,349 2,539,336 3,009,336 13,965,558
---------------------------------------------------------------------------------------------------------------
Sub-Total....................... 4,771,602 17,909,434 40,949,290 44,028,811 25,282,183 8,968,739 141,910,059
3. Roads Project:
Development of Primary Roads........ 300,756 1,516,858 28,241,321 69,106,730 42,638,082 422,561 142,226,308
Development of Rural Roads.......... 37,227 74,452 4,268,032 7,665,973 5,499,910 58,779 17,604,373
Capacity Building and Technical - 1,460,000 460,000 460,000 460,000 460,000 3,300,000
Assistance for Road Maintenance....
Incentive Matching Fund for Periodic - - - 16,000,000 10,000,000 5,000,000 31,000,000
Road Maintenance (IMFP)............
---------------------------------------------------------------------------------------------------------------
Sub-Total....................... 337,983 3,051,310 32,969,353 93,232,703 58,597,992 5,941,340 194,130,681
4. BRIGHT 2 Schools Project:
BRIGHT 2 Schools Activity........... 3,000,000 25,829,669 - - - - 28,829,669
---------------------------------------------------------------------------------------------------------------
Sub-Total....................... 3,000,000 25,829,669 - - - - 28,829,669
5. Monitoring & Evaluation (M&E):
Monitoring & Evaluation............. 450,000 1,720,000 1,210,000 1,460,000 1,360,000 1,680,000 7,880,000
---------------------------------------------------------------------------------------------------------------
Sub-Total....................... 450,000 1,720,000 1,210,000 1,460,000 1,360,000 1,680,000 7,880,000
6. Program Administration & Oversight:
MCA-Burkina Faso Program 5,827,998 5,122,627 5,337,718 6,035,248 5,615,847 5,549,637 33,489,075
Administration.....................
Fiscal Agent / Procurement Agent.... 608,070 2,432,280 2,432,280 2,432,280 2,432,280 2,432,280 12,769,470
Audit............................... - 400,000 400,000 400,000 400,000 400,000 2,000,000
---------------------------------------------------------------------------------------------------------------
Sub-Total....................... 6,436,068 7,954,907 8,169,998 8,867,528 8,448,127 8,381,917 48,258,545
===============================================================================================================
Total Estimated MCC 16,101,065 63,675,408 96,295,688 163,192,705 107,768,302 33,910,401 480,943,569
Contribution...............
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 42622]]
Annex III Description of Monitoring and Evaluation Plan
This Annex III (the ``M&E Annex'') generally describes the
components of the Monitoring and Evaluation Plan (``M&E Plan'') for the
Program.
1. Overview
MCC and the Government (or a mutually acceptable Government
affiliate) will formulate, agree to and the Government will implement,
or cause to be implemented, an M&E Plan that specifies (a) how progress
toward the Program goal and objectives will be monitored, (``Monitoring
Component''), (b) process and timeline for the monitoring of planned,
ongoing, or completed project activities to determine their efficiency
and effectiveness, and (c) a methodology for assessment and rigorous
evaluation of the outcomes and impact of the Program (``Evaluation
Component''). Information regarding the Program's performance,
including the M&E Plan, and any amendments or modifications thereto, as
well as progress and other reports, will be made publicly available on
the Web site of MCA-Burkina Faso and elsewhere.
2. Program Logic
The M&E Plan will be built on a logic model which illustrates how
the Program, Projects and Project activities contribute to poverty
reduction and economic growth in Burkina Faso. The logic model below
provides a visual representation of each Project's activities and the
channels through which the activities lead to higher level outcomes and
objectives. In sum, the goal of the Program is to contribute to rural
economic growth and poverty reduction among targeted beneficiaries.
[GRAPHIC] [TIFF OMITTED] TN22JY08.003
3. Monitoring Component
To monitor progress toward the achievement of the impact and
outcomes, the Monitoring Component of the M&E Plan will identify (a)
the indicators, (b) the definitions of the indicators, (c) the sources
and methods for data collection, (d) the frequency for data collection,
(e) the party or parties responsible, and (f) the timeline for
reporting on each indicator to MCC.
(a) Indicators. The M&E Plan will measure the results of the
Program using quantitative, objective and reliable data
(``Indicators''). Each indicator will have benchmarks that specify the
expected value and the expected time by which that result will be
achieved (``Target''). The M&E Plan will be based on a logical
framework approach that classifies indicators as goal, objective,
outcome, and output. The Compact Goal indicators (``Goal Indicators'')
will measure the poverty reduction goal for each Project. Second, the
Objective Indicator (``Project Objective Indicators'') will measure the
final result of each Project. Third, Outcome and Output Indicators
(``Project Outcome Indicators'') will measure the early and
intermediate results of the Project activities. For each Project
Outcome Indicator, Project Objective Indicator, and Goal Indicator, the
M&E Plan will define a strategy for obtaining and verifying the value
of such indicator prior to undertaking any activity that affects the
value of such Indicator (such value, a ``Baseline''). All indicators
will be disaggregated by gender, income level and age, and beneficiary
types to the extent practicable. Subject to prior written approval from
MCC, MCA-Burkina Faso may add indicators or refine the definitions and
Targets of existing indicators.
(i) Goal and Project Objectives. The M&E Plan will contain the Goal
and Objective Indicators listed in the table below specifying the
definition, unit of measurement, baseline, and end of Compact Target
for each.
(ii) Project Outcome Indicators. The M&E Plan will contain Project
Outcome Indicators which will measure the results for the 4 main
Projects and are listed below with their definitions, units of
observation, baseline and end of Compact Target. Prior to the
disbursement of MCC Funding for any Project activity, the Implementing
Entity of that Project activity must propose a final set of Activity
Indicators that is approved in writing by its Project Manager, MCA-
Burkina Faso and MCC. The M&E Plan will be amended to reflect the
addition of such indicators.
----------------------------------------------------------------------------------------------------------------
Overall goal: reduce poverty through
economic growth by increasing rural Unit of measurement Baseline value Year 5 target
incomes
----------------------------------------------------------------------------------------------------------------
Increased income resulting from US$/year............... 0 US$12,777,574.
primary roads rehabilitation.
[[Page 42623]]
Increased income resulting from US$/year............... 0 US$2,750,000.
irrigation and agricultural
investments.
----------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rural land governance project Indicator Definition Unit of measurement Baseline value Year 5 target
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rural Land Governance Project
--------------------------------------------------------------------------------------------------------------------------------------------------------
Project Objective: Increase Trend in incidence of Annual rate of Percent................... TBD *............... Annual rate of
investment in land and rural conflicts over land increase of increase in land
productivity through improved rights. conflicts over land disputes in Project
land tenure security and land rights.\1\ areas falls by 25%
management. (from the baseline
rate of increase).
Conflicts resolved... Proportion of all Percent Prefectures....... TBD *............... 50.
reported land CVDs...................... .................... ....................
conflicts resolved TBD *............... 60.
by prefectures and
Comit[eacute]s
Villageois de
Developpement
(``CVDs'').\2\
``Chartes Number of new social Number.................... 0................... 47.
Fonci[egrave]res'' pacts (commune-level
(Social pacts) land use and land
completed per the management norms and
new land law. procedures)
completed.
Communal land use Number of new Number.................... 0................... 47.
plans completed. communal land use
plans (maps)
completed.
Land planning and Total targeted Hectares.................. Existing 10,000.
registration. hectares or parcels .......................... agricultural ....................
registered at the Hectares.................. development 2037.
``Division Fiscale'' zones.\3\
(deconcentrated tax New zones (targeted
office). under the
Agriculture
Development
Project).
Parcels................... Ganzourgou pilot.... 14,500 parcels.
Increased confidence in land Extent of confidence Percent of survey Percent................... TBD *............... To 50 percent.
tenure. in land tenure respondents
security. perceiving their
land as secure.
Extent of confidence Percent of survey Percent................... TBD *............... To 50 percent.
in land conflict respondents
resolution. perceiving
confidence in
conflict resolution
mechanisms.
Increased efficiency of land Average time required Number of days Days...................... TBD *............... TBD.**
institutions. to obtain a title to required to obtain a
land in rural areas. land title in rural
areas.
Average cost required Cost required to US$....................... TBD *............... TBD.**
to register property. register land as
property in rural
areas.
--------------------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Agriculture development Baseline Year 5
project Indicator Definition Unit of measurement value target
----------------------------------------------------------------------------------------------------------------
Agriculture Development Project
----------------------------------------------------------------------------------------------------------------
Project Objective: To expand Volume of Total volume of
productive use of land in production of key .................... ........... ...........
order to increase the volume selected agricultural .................... ........... ...........
and value of agricultural products in the production in Tons................ 15,571 20,000
production in the Project Sourou valley the perimeters Tons................ 56,485 113,000
zones. \4\ in the dry
................ season and
Rainfed......... rainy season.
Irrigated \5\... ...............
...............
Dry-season Average yield Tons/ha............. 15 25
productivity in of selected
the Sourou crops.
valley.
Onion on newly
irrigated
perimeters.
Tomato and Average yield Tons/ha............. 10 25
potato on newly of selected
irrigated crops.
perimeters.
Rice on newly Average yield Tons/ha............. 4 6
irrigated of selected
perimeters. crops.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Baseline Year 5
Outcomes Indicator Definition Unit of measurement value target
----------------------------------------------------------------------------------------------------------------
Agriculture Development Project
----------------------------------------------------------------------------------------------------------------
Increased irrigated area..... New area under Total new Hectares............ 3,818 \6\ 5,855
irrigation. irrigated area
productively
exploited in
the Sourou
valley
(hectares).
Improved water infrastructure Overall Ratio of volume Percent............. N/A 75
and management in the Di conveyance of water
perimeter. efficiency. delivered to a
field as a
fraction of
volume taken
from the
Sourou river.
Water use Ratio of the Percent............. N/A 70
efficiency. volume of crop
water required
to the volume
of water
delivered to
the field.
[[Page 42624]]
Water fee Percent of Percent............. N/A 100
recovery rate. annual
targeted water
fees collected
from
beneficiaries
in new
perimeters.
Improved livestock management Bovine weight Average bovine Kg/head/year........ 39 70
techniques. gain .\7\ weight gain/
head/year in
participating
herds.
Vaccine coverage Percent of Percent............. 29 65
against the bovines
contagious vaccinated
bovine against the
p[eacute]ripneu bovine
monia. p[eacute]ripne
umonia in
participating
herds.
Increased availability of Loan provision Total number of Number.............. 0 1,000
credit in project areas. by the rural loans provided
finance by the rural
facility. finance
facility.
----------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Roads project Indicator Definition Unit of measurement Baseline value Year 5 target
--------------------------------------------------------------------------------------------------------------------------------------------------------
Roads Project
--------------------------------------------------------------------------------------------------------------------------------------------------------
Project Objective: Enhance access Average Annual Daily Traffic Counts Number................
to markets through investments in Traffic. (numbers of
the road network. vehicles).
Segment 1............
Sabou--Koudougou..... ..................... ...................... 148................... 230.
Koudougou--Perkoa.... ..................... ...................... 212................... 330.
Perkoa--Didyr........ ..................... ...................... 164................... 195.\8\
Segment 2............
Dedougou--Nouna...... ..................... ...................... 203................... 330.
Nouna--Bomborukuy.... ..................... ...................... 118................... 190.
Bomborukuy--Frt. Mali ..................... ...................... 62.................... 110.
Segment 3............
Banfora--Sindou...... ..................... ...................... 126................... 215.
Volume of goods Volume of products Tons.................. TBD \9\............... Doubling
transported. transported to and
from the production
zones.
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Outcomes Indicator Definition Unit of measurement Baseline value Year 5 target
--------------------------------------------------------------------------------------------------------------------------------------------------------
Roads Project
--------------------------------------------------------------------------------------------------------------------------------------------------------
Improved road quality and reduced International Degree of road Number................ 12-22 for relevant 3.5.
travel times. Roughness Index. roughness. roads.
Access time (in Accessibility to the Minutes............... TBD \10\.............. Reduced by half.
minutes) to the markets.
closest market on
paved roads.
Improved access to basic health Visits to basic Percent of population Percent............... 34.08 \11\............ 46.10.
infrastructure via rural roads. health center visiting health
infrastructure. centers (annual).
Improved capacity to manage and Road Maintenance Percent of required Percent............... 100................... 100.
fund road maintenance. coverage. routine maintenance
completed.
Percent of required Percent............... TBD................... TBD.\12\
periodic maintenance
completed.
--------------------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Unit of Baseline Year 5
BRIGHT 2 schools project Indicator Definition measurement value target
----------------------------------------------------------------------------------------------------------------
BRIGHT 2 Schools Project
----------------------------------------------------------------------------------------------------------------
Project Objective: Increase National girls' The number of Percent.......... 26.20 60
primary school completion primary female students
rates for girls. education that have
completion. successfully
completed their
last year of
primary school,
minus the
number of
repeaters in
that grade,
divided by the
total number of
female children
of official
graduation age.
----------------------------------------------------------------------------------------------------------------
Outcomes
----------------------------------------------------------------------------------------------------------------
Improve access to basic Girls' The number of Number........... 0 9,900
education for girls. enrollment rate girls enrolled
in BRIGHT in BRIGHT
schools. schools.
Improve quality of basic Girls' Percent of girls Percent.......... 0 97
education for girls. attendance who attend
rates at BRIGHT BRIGHT school
schools. 90% of the time.
(disaggregated (Numerator:
by school and girls who
by grade). regularly
attend BRIGHT
schools).
(Denominator:
Total number of
girls enrolled
in BRIGHT
schools) x100.
Girls' promotion The percentage Percent.......... 0 90
rates at BRIGHT of girls
schools enrolled in one
(disaggregated grade that
by school and continue to be
by grade). enrolled in the
following grade
in a BRIGHT
school.
----------------------------------------------------------------------------------------------------------------
\1\ Targeted Project areas will be compared to non-Project areas.
*Baseline data collection will be conducted during the CIF period.
\2\ This will be disaggregated between conflicts resolved and conflicts reported.
\3\ Existing Zones: (a) irrigated zones: Vall[eacute]e du Kou, Banzon, Savili, Lac Bam, Sourou, Como[eacute];
(b) pastoral zones: Nouaho and Sondr[eacute] Est.
** Target will be set as result of baseline.
\4\ Rainy season products: rice, corn, banana, papaya; Dry season products: rice, corn, wheat, banana, papaya,
onion, watermelon, green bean, potato and tomato.
\5\ This will be disaggregated between old and new perimeters.
[[Page 42625]]
\6\ 2,037 additional hectares in Di.
\7\ These two livestock indicator baselines are national estimates, which will be updated when participating
herds are identified.
\8\ The traffic growth target for the Perkoa--Didyr segment includes annual normal traffic growth only and does
not include generated traffic growth that would be added if this road segment were to be extended.
\9\ Baseline data collection will be conducted in the roads design studies.
\10\ Baseline data collection will be conducted in the roads design studies.
\11\ This baseline represents the national value.
\12\ To be determined based upon results of technical assistance studies.
(b) Data Collection and Reporting. The M&E Plan will establish
guidelines for data collection and a reporting framework, including a
schedule of MCC's Program reporting requirements and an identification
of responsible parties. Compliance with data collection and reporting
timelines will be conditions for disbursements for the relevant Project
activities as set forth in the Program Implementation Agreement. The
M&E Plan will specify the data collection methodologies, procedures,
and analysis required for reporting on results at all levels. The M&E
Plan will also describe any interim MCC approvals for data collection,
analysis, and reporting plans.
(c) Data Quality Reviews. As determined in the M&E Plan or as
otherwise requested by MCC, the quality of the data gathered through
the M&E Plan will be reviewed to ensure that data reported are as
valid, reliable, and timely as resources will allow. The objective of
any data quality review will be to verify the quality and the
consistency of performance data, across different implementation units
and reporting institutions. Such data quality reviews also will serve
to identify where those levels of quality are not possible, given the
realities of data collection.
(d) Management Information System. The M&E Plan will describe the
information system that will be used to collect data, store, process
and deliver information to relevant stakeholders in such a way that the
Program information collected and verified pursuant to the M&E Plan is
at all times accessible and useful to those who wish to use it. The
system development will take into consideration the requirements and
data needs of the components of the Program, and will be aligned with
MCC existing systems, other service providers, and government
ministries.
(e) Role of MCA-Burkina Faso. The monitoring and evaluation of this
Compact spans across 4 discrete Projects and will involve a variety of
governmental, non-governmental, and private sector institutions. Except
for that portion of the M&E Plan to be implemented pursuant to the
Administration Agreement (relating to the BRIGHT 2 Schools Project),
MCA-Burkina Faso holds full responsibility for implementation of the
M&E Plan, and MCA-Burkina Faso will oversee all Compact-related
monitoring and evaluation activities conducted by each of the Projects,
ensuring that data from all implementing entities is consistent, and
accurately reported and aggregated into regular Compact performance
reports as described in the M&E Plan.
4. Evaluation Component
The Evaluation Component of the M&E Plan will contain two types of
evaluations: Impact Evaluations, and Project Performance Evaluations.
Plans for each type of evaluation will be finalized before MCC
Disbursement for specific Program or Project activities. The Evaluation
Component of the M&E Plan will describe the purpose of the evaluation,
methodology, timeline, required MCC approvals, as well as the process
for collection and analysis of data for each evaluation. The results of
all evaluations will be made publicly available in accordance with
MCC's Monitoring & Evaluation Guidelines (``M&E Guidelines'').
(a) Impact Evaluation. The M&E Plan will include a description of
the methods to be used for impact evaluations and plans for integrating
the evaluation method into project design. Based on in-country
consultation with stakeholders, the following activities outlined below
were determined as having the strongest potential for rigorous impact
evaluation. The M&E Plan will further outline in detail these
methodologies. Final impact evaluation strategies are to be jointly
determined before the approval of the M&E Plan and before entry into
force of this Compact. The following are a summary of the potential
impact evaluations:
(i) Rural Land Governance Project. A difference in difference
evaluation will be used to make project scaling decisions. Surveys will
be conducted in project and control communes on perceptions of
conflict, before and after implementation of the project's pilot phase.
In the event that randomized roll-out of some commune-level
interventions is possible, their impact could be tested over time. An
evaluation may also test spillover of impacts between communes targeted
under the project and neighboring communes.
(ii) Agriculture Development Project. Randomized type and level of
extension/training support to various groups, and testing spillover
effects beyond the directly targeted beneficiaries. Evaluations will
test impacts of combined and isolated interventions, as some producers
will be receiving credit and/or irrigation as well as the technical
assistance support.
(iii) Roads Project. An evaluation will be conducted to test
whether the improved roads lead to greater and easier access to markets
for goods and services (both sale and purchase), and whether road
rehabilitation is associated with an increase in incomes for road users
and/or communities surrounding rehabilitated roads, in each case
pursuant to a methodology approved by MCC.
(iv) BRIGHT 2 Schools Project. A continuation of the current BRIGHT
impact evaluation, using a regression discontinuity methodology to
measure the program's effects on the school enrollment, attendance and
performance of children.
5. Other Components of the M&E Plan
In addition to the Monitoring and Evaluation Components, the M&E
Plan will include the following components for the Program, Projects
and Project Activities, including, where appropriate, roles and
responsibilities of the relevant parties and providers:
(a) Costs. A detailed cost estimate for all components of the M&E
Plan.
(b) Assumptions and Risks. Any assumptions and risks external to
the Program that underlie the accomplishment of the Project Objectives
and Project Activity Outcomes. However, such assumptions and risks will
not excuse Parties' performance unless otherwise expressly agreed to in
writing by all Parties.
6. Implementation of the M&E Plan
(a) Approval and Implementation. The approval and implementation of
the M&E Plan, as amended from time to time, will be in accordance with
this M&E Annex, Program Implementation Agreement, and any other
relevant supplemental agreement.
Annex IV Conditions to CIF Disbursements
1. Applicability
The satisfaction of the conditions precedent set forth in this
Annex IV, in form and substance satisfactory to MCC, shall be
conditions to Disbursements of
[[Page 42626]]
Compact Implementation Funding, provided that the following conditions
precedent shall not apply to CIF Disbursements made or to be made
pursuant to the Administration Agreement.
2. Conditions to Initial CIF Disbursement
(a) Delivery of an Interim Fiscal Accountability Plan acceptable to
MCC.
(b) Delivery of a CIF Procurement Plan acceptable to MCC.
3. Conditions to All CIF Disbursements (Including Initial CIF
Disbursement)
(a) Delivery of a complete, correct and fully executed CIF
Disbursement request for the relevant CIF Disbursement period.
(b) MCC is satisfied, in its sole discretion, that (i) the activity
being funded by such CIF Disbursement is necessary, advisable or is
otherwise consistent with the goal of facilitating the implementation
of the Compact, (ii) there has been no violation of, and the use of
requested funds for purposes requested will not violate, the
limitations on use or treatment of Compact Implementation Funding, and
(iii) the Government will have substantially complied with its
obligations as set forth in the Compact.
(c) Each of the Fiscal Agent Agreement, the Procurement Agent
Agreement, and the applicable Bank Agreement is in full force and
effect without modification, alteration, rescission or suspension of
any kind, unless otherwise agreed by MCC, and no material default has
occurred or is continuing thereunder.
(d) Prior to any CIF Disbursement for a procurement, MCA-Burkina
Faso will have established a bid challenge system acceptable to MCC;
provided, that, this condition shall be deemed satisfied if MCA-Burkina
Faso has adopted the interim bid challenge system set forth in the MCC
Program Procurement Guidance on the Bid Challenge System available at
http://www.mcc.gov/documents/mcc-ppg-bidchallengesystem.pdf.
(e) Prior to any CIF Disbursement related to the preparation of
EIAs, EAs or RAPs, MCA-Burkina Faso shall ensure each of a resettlement
specialist and a project management specialist has been selected and
remains engaged with expertise and scope of responsibility satisfactory
to MCC.
(f) MCA-Burkina shall ensure that each of its key officers,
including, without limitation, its Environmental and Social Impact
(ESI) director, has been selected and remains engaged, or is actively
being recruited.
[FR Doc. E8-16755 Filed 7-21-08; 8:45 am]
BILLING CODE 9211-03-P