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Notice of Entering Into a Compact With the Government of the Republic of Ghana
Note: EPA no longer updates this information, but it may be useful as a reference or resource.
[Federal Register: August 21, 2006 (Volume 71, Number 161)]
[Notices]
[Page 48647-48693]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21au06-106]
[[Page 48648]]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 06-11]
Notice of Entering Into a Compact With the Government of the
Republic of Ghana
AGENCY: Millennium Challenge Corporation.
ACTION: Notice.
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SUMMARY: In accordance with section 610(b)(2) of the Millennium
Challenge Act of 2003 (Pub. L. 108-199, Division D), the Millennium
Challenge Corporation (MCC) is publishing a summary and the complete
text of the Millennium Challenge Compact between the United States of
America, acting through the Millennium Challenge Corporation, and the
Government of the Republic of Ghana. Representatives of the United
States Government and the Government of the Republic of Ghana executed
the Compact documents on August 1, 2006.
Dated: August 9, 2006.
William G. Anderson Jr.,
Vice President & General Counsel (Acting).
Summary of Millennium Challenge Compact With the Government of the
Republic of Ghana
I. Introduction
The five-year, approximately $547 million Millennium Challenge
Compact aims at reducing poverty by raising farmer incomes through
private sector-led, agribusiness development. To this end, the program
focuses on increasing the production and productivity of high-value
cash and food staple crops in certain areas of Ghana, and on enhancing
the competitiveness of Ghana's export base in horticultural and other
traditional crops.
Agriculture is the backbone of Ghana's economy; it accounts for
approximately 40 percent of the country's gross domestic product,
directly employs approximately 60-70 percent of the labor force, and
generates more than 55 percent of foreign exchange earnings.
The program will operate in 23 districts in the northern region,
the central Afram Basin region and the southern horticultural belt in
the southeastern region (each region, an Intervention Zone), where
poverty rates are generally above 40 percent. In fact, in the northern
region and parts of the Afram Basin region, the incidence of poverty in
the rural population is as high as 90 percent, with incomes below $2 a day.
II. Program
The program consists of three projects: (i) Agriculture Project;
(ii) Transportation Project; and (iii) Rural Services Project.
Agriculture Project
? Farmer and Enterprise Training in Commercial Agriculture:
Accelerate the development of commercial skills and capacity among
Farmer-Based Organizations (FBOs) and their business partners,
including entities adding value to agricultural crops such as
processors and marketers.
? Irrigation Development: Establish a limited number of
retention ponds and weirs requested by the FBOs and FBO partnerships
for whom access to water is critical to the success of their businesses.
? Land Tenure Facilitation: Improve tenure security for
existing land users and facilitate access to land for higher value
agricultural crops in the Intervention Zones.
? Improvement of Post Harvest Handling and Value Chain
Services: Facilitate strategic investments by FBOs and FBO partnerships
in post-harvest infrastructure improvements and build the capacity of
the public sector to introduce and monitor compliance with
international plant protection standards.
? Improvement of Credit Services for On-Farm and Value Chain
Investments: Augment the supply of, and access to, credit provided by
financial institutions operating in the Intervention Zones, providing
seasonal credit to FBOs through commercial and rural banks, as well as
through non-traditional channels such as input suppliers, and medium-
term credit through banks to finance capital goods such as irrigation
and post-harvest processing and storage facilities.
? Rehabilitation of Feeder Roads: Rehabilitate up to 950
kilometers of feeder roads in eight districts in the Intervention Zones
to reduce transportation costs and time, to increase access to major
domestic and international markets, and to facilitate transportation
linkages from rural areas to social service networks (including, for
instance, hospitals, clinics and schools).
Transportation Project
? Upgrades to Sections of N1 Highway: Reduce the bottleneck
in accessing the International Airport and the Port of Tema and support
an expansion of Ghana's export-directed horticulture base beyond
current production, by upgrading of 14 kilometers of the National
Highway (N1 Highway) between Tema and Accra.
? Improvements of Trunk Roads: Facilitate the growth of
agriculture and access to social services by rehabilitating or
constructing up to 230 kilometers of trunk roads in the Afram Basin region.
? Improvements of Lake Volta Ferry Services: Facilitate the
growth of agriculture in the Afram Basin region by improving the ferry
service of Volta Lake Transport Company that connects Adawso on the
southern shore to Ekye Amanfrom on the northern shore.
Rural Services Project
? Strengthening of Public Sector Procurement Capacity:
Support the development of procurement professionals and reinforce the
capabilities of the Government of Ghana (GoG) to procure goods and
services, reinforcing execution of the overall program and, in
particular, the community services.
? Support for Community Services: Complement the Agriculture
Project by funding construction and rehabilitation of educational
facilities, construction and rehabilitation of water and sanitation
facilities and electrification of rural areas, and by providing
capacity building support to local government institutions.
? Strengthening of Rural Financial Services: Automate and
interconnect 121 rural banks that are private, community-owned banks,
and provide other improvements in the national payments systems that
will draw a large number of people currently not served or under-served
into the financial system.
The table below outlines the estimated MCC contribution to the
program by year and category over the term of the Compact.
[US $ million]
----------------------------------------------------------------------------------------------------------------
Description Year 1 Year 2 Year 3 Year 4 Year 5 Total
----------------------------------------------------------------------------------------------------------------
Agriculture Project........................... 32.6 47.1 70.3 65.1 25.9 241.0
Transportation Project........................ 14.8 20.1 35.4 43.1 29.7 143.1
Rural Services Project........................ 15.6 21.1 30.5 34.1 ......... 101.3
[[Page 48649]]
Administration of Program & Audits............ 8.8 8.8 10.0 10.3 8.7 46.6
Monitoring & Evaluation of Program............ 3.0 3.0 3.0 3.0 3.0 15.0
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Total..................................... 74.8 100.1 149.2 155.6 67.3 547.0
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III. Impacts
Under the Agriculture Project, approximately 51,000 farm households
are expected to complete a comprehensive program in agronomic,
organizational and business skills training as members of FBOs. These
households with five members on average comprise over 250,000 people.
Less directly, the improvement of the GoG's Ministry of Food and
Agriculture's extension services and the agents' work with FBOs will
have collateral spillover benefits for a large number of farmers which
are not quantified.
The Agriculture Project will also support the development and
improved operations of approximately 120 small- and medium-size
enterprises providing services to agriculture where concentrations of
farmer and FBO training will have taken place. Increased access to
credit will finance a majority of these changes, including irrigation
and post-harvest infrastructure. Its support to facilitate the formal
acquisition of land will decrease the transaction costs associated with
negotiating and formalizing land leases with traditional land
custodians, enhancing the willingness and ability of farmers to invest
in on-farm improvements. As a further measure to improve the local
profitability of agriculture, the Agriculture Project will finance the
improvement of over 950 kilometers of feeder roads, which, along with
the trunk roads below, will benefit a total population of more than
120,000 farming households with over 600,000 members. These activities
will increase farm incomes from cultivation by U.S. $450 to about U.S.
$1,000. For many of the poor, the compact intervention will represent
an increase of one dollar or more in average income per person per day.
The Transportation Project is expected to open new economic
opportunities for rural households by lowering transportation costs,
including travel times, for both individuals and cargo, to markets and
social service delivery points. Because the N1 Highway is a principal
route from the south to the Port of Tema, widening the N1 Highway
should benefit approximately 150,000 daily users. Upwards of 500,000
people in the surrounding area of Accra, including consumers and
agricultural export producers and other users of the highway in the
Greater Accra Metropolitan Area, would benefit from the improved
operation of the N1 Highway. Rehabilitation and upgrading of trunk
roads and expansion of the ferry service in the Afram Basin region are
expected to benefit up to 100,000 farm households, most of which are
among the rural poor.
By improving both the community-service infrastructure and
enhancing local government capacity to provide, operate and maintain
community services related to this infrastructure, the Rural Services
Project should benefit several tens of thousands of households,
decrease the incidence of disease and the time spent collecting water
and fuel, and increase school attendance, which in turn should lead to
greater productivity. Linking banks and their branches nationwide via a
wide-area network should increase access to financial services for the
entire population of Ghana, especially in remote rural areas, in the
form of savings, credit or cash transfers and remittances. Finally,
strengthening of public sector procurement capacity will improve
execution of the Support for Community Services activity directly and,
more generally, all citizens of Ghana with material improvements in
performance of the entire public sector.
In conclusion, as a first approximation, the program is anticipated
to help directly alleviate the poverty of over 230,000 Ghanaians, and
to substantially enhance the livelihoods and welfare of over one
million Ghanaians in the aggregate.
IV. Program Management
Through an act of its Parliament, the GoG has created the
Millennium Development Authority (MiDA) that will serve as the entity
accountable for the implementation of the program under the Compact.
MiDA will be governed by a Board of Directors comprised of members of
GoG, the private sector, and the non-governmental organization (NGO)
community. A chief executive officer will manage the day-to-day
activities of MiDA and will be supported by key officers in the areas
of operations, agriculture, infrastructure, financial services, land,
and administration. MiDA will remain accountable for the successful
execution of the program while working through project implementers,
whose interaction will be facilitated by a fiscal and procurement
agent. As an organ of the GoG, MiDA will be subject to GoG audit
requirements alongside those audit requirements of MCC under the Compact.
V. Other Highlights
A. Consultative Process
Ghana's Poverty Reduction Strategy process provided the basis for
its process of consultation regarding the development of its proposal
for the program. Specifically, in 2004, the GoG held the first of a
series of Compact-related consultations with civil society members of
the Ghanaian Association of Private and Voluntary Organizations in
Development. Subsequent consultations included: (i) Initial
consultations with stakeholders at both the national and local levels
to focus the program's objectives; (ii) consultations with stakeholders
in each district within each Intervention Zone throughout the design of
the program regarding the exact type of interventions, proposed
locations, arrangements for implementation, as well as the ownership
structure for certain infrastructure investments; (iii) consultations
with NGOs representing the environmental and social sector (including
women and youth), local agribusinesses and farmers. MCC observed a
number of the consultations, both local and national. The consultative
process is ongoing and is expected to continue through the term of the
Compact.
B. GoG Commitment and Effectiveness
The GoG is committed to assembling a capable team to staff MiDA.
Recruitment is underway currently for the chief executive officer of
MiDA and 13 other key officers who will directly support the
implementation of the program. The incumbent Minister of Public Sector
Reform, who led the GoG's team to develop the Compact, will become the
chair of the board of
[[Page 48650]]
directors of MiDA. Other members of the board will come from line
ministries directly relevant to the program, and the private sector and
NGOs as a means to provide feedback on the implementation of the
program. One advisory committee for each Intervention Zone will be
formed to bring the on-the-ground perspective back to the MiDA.
President Kufuor remains engaged, providing leadership and ensuring
that MiDA will have the inter-ministerial cooperation necessary for the
success of the program. In addition, the GoG will undertake to make up
eventual shortfalls in funding, if any, necessary to sustain the
program in such areas as road maintenance, community services recurrent
costs, and environmental mitigation.
C. Sustainability
The activities under the Agriculture Project will create new and
strengthen existing input suppliers, processors and marketers and
enhance a climate that attracts additional outside investment in the
agriculture sector, thus leading to its continued growth. The GoG has
affirmed that it will maintain the rehabilitated roads in accordance
with standards that have been agreed with the broad donor community and
will increase funding commitment to the road sector accordingly. MCC is
requiring from GoG that it will provide for the staffing, equipping,
and other recurrent costs of new (and some existing) infrastructure
investments. Selection criteria for community services infrastructure
will also stipulate a minimum level of community contribution to
investment and participation in upkeep of new facilities. Environmental
and social sustainability of the program will be enhanced through
oversight and ongoing public consultation. The Rural Services Project
will include a capacity building component to reinforce participatory
planning, procurement, financial management, maintenance planning and
budgeting, operations and maintenance of physical infrastructure. MCC
investments in secure land access will emphasize community consultation
and resolution of disputes, important for durable secure tenure.
D. Environment and Social Assessments
According to MCC's environmental guidelines, the Agriculture
Project is classified as ``Category A'' (with the exception of the
credit-related activity that is classified as a ``Category D'' and
requires lending guidelines that stipulate environmental requirements).
Specifically, potentially adverse environmental impacts may result from
the irrigation retention ponds and weirs, the feeder roads, and large-
scale agricultural intensification and conversion (e.g., deforestation,
monoculture). The Transportation Project is classified as ``Category
A'' due to potentially adverse site-specific impacts resulting from
improvements to the N1 Highway and select trunk roads, including the
acquisition of, or compensation for, approximately 800 permanent and
temporary structures (e.g., containers and kiosks) on the N1 Highway's
right of way. Furthermore, there will be both induced and cumulative
impacts on the Afram Basin region resulting from increased access
provided by the trunk roads and ferries. The Rural Services Project is
classified as ``Category B'' and will require selection criteria for
provision of community services that take into account environmental
and social impacts.
Overall, because of the breadth and scope of the proposed program,
strategic environmental assessments and baseline studies will be
required for each Intervention Zone prior to initiating any required
project-specific environmental impact assessments and substantial
investment in physical infrastructure. Environmental management plans
and resettlement action plans will be developed for all Projects as
necessary. The environmental and social benefits expected from the
Compact include enhanced livelihoods, greater access to social
services, and more sustainable agricultural practices, ultimately
leading to reduced slash and burn agriculture and improved soil quality.
E. Donor Coordination
The $547 million Compact will place the U.S. among the top three
donors to Ghana. As such, donor coordination is particularly important
to ensure that MCC's investment is building upon and complementing the
work of other donors.
There are significant complementarities between the program and
current donor activity in Ghana. The Agriculture Project, for instance,
will build upon activities pioneered by U.S. Agency for International
Development's Trade and Investment Program for a Competitive Export
Economy (TIPCEE), and those developed under the Agricultural Services
Sub-Sector Investment Project supported by the World Bank, the UK's
Department for International Development (DfID), African Development
Bank, the International Fund for Agricultural Development and others.
TIPCEE activities are expected to continue during the course of the
Compact.
In implementing the Transportation Project, MCC is working
alongside several other donors active in the sector, namely the World
Bank, European Union, Danish International Development Agency and DfID
to avoid duplication and to ensure policy coordination.
MCC is basing its investments under the Rural Services Project on
an existing Community Based Rural Development Project (CBRDP) financed
by the World Bank and Agence Francaise de D[eacute]veloppement. The MCC
investments will extend the services of the program implementation unit
developed under the CBRDP and the capacity building activities financed
in the project will use the existing training program piloted by CBRDP.
Millennium Challenge Compact Between the United States of America
Acting Through the Millennium Challenge Corporation and the Government
of the Republic of Ghana
Table of Contents
Article I. Purpose and Term
Section 1.1 Compact Goal; Objectives
Section 1.2 Projects
Section 1.3 Entry into Force; Compact Term
Article II. Funding and Resources
Section 2.1 MCC Funding
Section 2.2 Government Resources
Section 2.3 Limitations on the Use or Treatment of MCC Funding
Section 2.4 Incorporation; Notice; Clarification
Section 2.5 Refunds; Violation
Section 2.6 Bilateral Agreement
Article III. Implementation
Section 3.1 Implementation Framework
Section 3.2 Government Responsibilities
Section 3.3 Government Deliveries
Section 3.4 Government Assurances
Section 3.5 Implementation Letters; Supplemental Agreements
Section 3.6 Procurement; Awards of Assistance
Section 3.7 Policy Performance; Policy Reforms
Section 3.8 Records and Information; Access; Audits; Reviews
Section 3.9 Insurance; Performance Guarantees
Section 3.10 Domestice Requirements
Section 3.11 No Conflict
Section 3.12 Reports
Article IV. Conditions Precedent; Deliveries
Section 4.1 Conditions Prior to the Entry into Force and Deliveries
Section 4.2 Conditions Precedent to MCC Disbursements or Re-
Disbursements
Article V. Final Clauses
Section 5.1 Communications
Section 5.2 Representatives
Section 5.3 Amendments
Section 5.4 Termination; Suspension
Section 5.5 Privileges and Immunities
Section 5.6 Attachments
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Section 5.7 Inconsistenecies
Section 5.8 Indemnification
Section 5.9 Headings
Section 5.10 Interpretation
Section 5.11 Signatures
Section 5.12 Designation
Section 5.13 Survival
Section 5.14 Consultation
Section 5.15 MCC Status
Section 5.16 Language
Section 5.17 Publicity; Information and Marking
Exhibit A: Definitions
Exhibit B: List of Certain Supplemental Agreements
Schedule 2.1(a)(iii): Compact Implementation Funding
Annex I: Program Description
Schedule 1: Agriculture Project
Schedule 2: Transportation Project
Schedule 3: Rural Development Project
Annex II: Summary of Multi-Year Financial Plan
Exhibit A: Multi-Year Financial Plan Summary
Annex III: Description of the M&E Plan
Millennium Challenge Compact
This Millennium Challenge Compact (the ``Compact'') is made between
the United States of America, acting through the Millennium Challenge
Corporation, a United States Government corporation (``MCC'') and the
Government of the Republic of Ghana (the ``Government'') (referred to
herein individually as a ``Party'' and collectively, the ``Parties'').
A compendium of capitalized terms defined herein is included in Exhibit
A attached hereto.
Recitals
Whereas, MCC, acting through its Board of Directors, has selected
Ghana as eligible to present to MCC a proposal for the use of
Millennium Challenge Account (``MCA'') assistance to help facilitate
poverty reduction through economic growth in Ghana;
Whereas, the Government has carried out a consultative process with
the country's private sector and civil society to outline the country's
priorities for the use of MCA assistance and developed a proposal,
which final proposal was submitted to MCC on October 28, 2005 (the
``Proposal'');
Whereas, the Proposal focused on, among others, increasing farmer
incomes through modernizing Ghana's agricultural sector, together with
investments in developing transportation infrastructure and rural
institutions, all designed to dismantle obstacles to realizing Ghana's
agricultural potential as an engine of economic growth;
Whereas, MCC has evaluated the Proposal and related documents to
determine whether the Proposal is consistent with core MCA principles
and includes projects and related activities that will advance the
progress of Ghana towards achieving poverty reduction through economic
growth; and
Whereas, based on MCC's evaluation of the Proposal and related
documents and subsequent discussions and negotiations between the
Parties, the Government and MCC determined to enter into this Compact
to implement a program using MCC Funding to advance Ghana's progress
towards poverty reduction through economic growth (the ``Program'');
Now, therefore, in consideration of the foregoing and the mutual
covenants and agreements set forth herein, the Parties hereby agree as
follows:
Article I. Purpose and Term
Section 1.1 Compact Goal; Objectives
The goal of this Compact is poverty reduction through economic
growth in Ghana (the ``Compact Goal''). The key to advancing the
Compact Goal is the two-fold objective of the Program, first, to
increase the production and productivity of high-value cash and food
staple crops in the Intervention Zones in Ghana and, second, to enhance
the competitiveness of Ghana's high-value cash and food crops in both
local and international markets (collectively, the ``Program
Objective''). The Parties have identified the following project-level
objectives (each, a ``Project Objective'') of this Compact to advance
the Program Objective, and thus the Compact Goal, each of which is
described in more detail in the Annexes attached hereto:
(a) Enhance the profitability of cultivation, services to
agriculture and product handling in support of the expansion of
commercial agriculture among groups of smallholder farmers (the
``Agriculture Project Objective'');
(b) Reduce the transportation costs affecting agricultural commerce
at sub-regional and regional levels (the ``Transportation Project
Objective''); and
(c) Strengthen the rural institutions that provide services
complementary to, and supportive of, agricultural and agri-business
development (the ``Rural Development Project Objective'').
The Government expects to achieve, and shall use its best efforts
to ensure the achievement of, the Compact Goal, Program Objective and
Project Objectives during the Compact Term. The Program Objective and
the individual Project Objectives are collectively referred to herein
as ``Objectives'' and each individually as an ``Objective.''
Section 1.2 Projects
The Annexes attached hereto describe the specific projects, the
policy reforms and other activities related thereto (each, a
``Project'') that the Government will carry out, or cause to be carried
out, in furtherance of this Compact to achieve the Objectives and the
Compact Goal.
Section 1.3 Entry into Force; Compact Term
This Compact shall enter into force on the date of the last letter
in an exchange of letters between the Principal Representatives of each
Party confirming that each Party has completed its domestic
requirements for entry into force of this Compact (including as set
forth in Section 3.10) and that all conditions set forth in Section 4.1
have been satisfied by the Government and MCC (the ``Entry into
Force''). This Compact shall remain in force for five (5) years from
the Entry into Force, unless earlier terminated in accordance with
Section 5.4 (the ``Compact Term'').
Article II. Funding and Resources
Section 2.1 MCC Funding
(a) MCC's Contribution. MCC hereby grants to the Government,
subject to the terms and conditions of this Compact, an amount not to
exceed Five Hundred Forty Seven Million and Nine Thousand United States
Dollars (US$ 547,009,000) (``MCC Funding'') during the Compact Term to
enable the Government to implement the Program and achieve the Objectives.
(i) Subject to Sections 2.1(a)(ii), 2.2(b) and 5.4(b), the
allocation of the MCC Funding within the Program and among and within
the Projects shall be as generally described in Annex II or as
otherwise agreed upon by the Parties from time to time.
(ii) If at any time MCC determines that a condition precedent to an
MCC Disbursement has not been satisfied, MCC may, upon written notice
to the Government, reduce the total amount of MCC Funding by an amount
equal to the amount estimated in the applicable Detailed Budget for the
Program, Project, Project Activity or sub-activity for which such
condition precedent has not been met. Upon the expiration or
termination of this Compact, (A) any amounts of MCC Funding not
disbursed by MCC to the Government shall be automatically released from
any obligation in connection with this Compact and (B) any amounts of
MCC Funding disbursed by MCC to the Government as provided in Section
2.1(b)(i), but not re-disbursed as
[[Page 48652]]
provided in Section 2.1(b)(ii) or otherwise incurred as permitted
pursuant to Section 5.4(e) prior to the expiration or termination of this
Compact, shall be returned to MCC in accordance with Section 2.5(a)(ii).
(iii) Notwithstanding any other provision of this Compact and
pursuant to the authority of Section 609(g) of the Millennium Challenge
Act of 2003, as amended (the ``Act''), upon the conclusion of this
Compact (and without regard to the satisfaction of all of the
conditions for Entry into Force required under Section 1.3), MCC shall
make available Ten Million and Three Hundred Seventy One Thousand
United States Dollars (US$ 10,371,000) (``Compact Implementation
Funding'') to facilitate certain aspects of Compact implementation as
described in Schedule 2.1(a)(iii) attached hereto; provided, such
Compact Implementation Funding shall be subject to (A) the limitations
on the use or treatment of MCC Funding set forth in Section 2.3, as if
such provision were in full force and effect, and (B) any other
requirements for, and limitations on the use of, such Compact
Implementation Funding as may be required by MCC in writing; provided,
further, that any Compact Implementation Funding granted in accordance
with this Section 2.1(a)(iii) shall be included in, and not additional
to, the total amount of MCC Funding; and provided further, any
obligation to provide such Compact Implementation Funding shall expire
upon the expiration or termination of this Compact or five (5) years
from the conclusion of this Compact, whichever occurs sooner, and in
accordance with Section 5.4(e). Notwithstanding anything to the
contrary in this Compact, this Section 2.1(a)(iii) shall provisionally
apply prior to Entry into Force.
(b) Disbursements.
(i) Disbursements of MCC Funding. MCC shall from time to time make
disbursements of MCC Funding (each such disbursement, an ``MCC
Disbursement'') to a Permitted Account or through such other mechanism
agreed by the Parties under and in accordance with the procedures and
requirements set forth in Annex I, the Disbursement Agreement or as
otherwise provided in any other Supplemental Agreement.
(ii) Re-Disbursements of MCC Funding. The release of MCC Funding
from a Permitted Account (each such release, a ``Re-Disbursement'')
shall be made in accordance with the procedures and requirements set
forth in Annex I, the Disbursement Agreement or as otherwise provided
in any other Supplemental Agreement.
(c) Interest. Unless the Parties agree otherwise in writing, any
interest or other earnings on MCC Funding that accrue (collectively,
``Accrued Interest'') shall be held in a Permitted Account and accrue
in accordance with the requirements for the accrual and treatment of
Accrued Interest as specified in Annex I or any Supplemental Agreement.
On a quarterly basis and upon the termination or expiration of this
Compact, the Government shall return, or ensure the return of, all
Accrued Interest to any United States Government account designated by MCC.
(d) Conversion; Exchange Rate. The Government shall ensure that all
MCC Funding that is held in any Permitted Account shall be denominated
in the currency of the United States of America (``United States
Dollars,'' ``US$'' or ``$'') prior to Re-Disbursement; provided, that a
certain portion of MCC Funding may be transferred to a Local Account
and may be held in such Local Account in the currency of the Ghana
prior to Re-Disbursement in accordance with the requirements of Annex I
and any Supplemental Agreement. To the extent that any amount of MCC
Funding held in United States Dollars must be converted into the
currency of Ghana for any purpose, including for any Re-Disbursement or
any transfer of MCC Funding into a Local Account, the Government shall
ensure that such amount is converted consistent with Annex I, including
the rate and manner set forth in Annex I, and the requirements of the
Disbursement Agreement or any other Supplemental Agreement between the
Parties.
(e) Guidance. From time to time, MCC may provide guidance to the
Government through Implementation Letters on the frequency, form and
content of requests for MCC Disbursements and Re-Disbursements or any
other matter relating to MCC Funding. The Government shall apply such
guidance in implementing this Compact.
Section 2.2 Government Resources
(a) The Government shall provide or cause to be provided such
Government funds and other resources, and shall take or cause to be
taken such actions, including obtaining all necessary approvals and
consents, as are specified in this Compact or in any Supplemental
Agreement to which the Government is a party or as are otherwise
necessary and appropriate effectively to carry out the Government
Responsibilities or other responsibilities or obligations of the
Government under or in furtherance of this Compact during the Compact
Term and through the completion of any post-Compact Term activities,
audits or other responsibilities.
(b) If at any time during the Compact Term, the Government
materially reallocates or reduces the allocation in its national budget
or any other governmental authority of Ghana at a departmental,
municipal, regional or other jurisdictional level materially
reallocates or reduces the allocation in its respective budget of the
normal and expected resources that the Government or such other
governmental authority, as applicable, would have otherwise received or
budgeted, from external or domestic sources, for the activities
contemplated herein, the Government shall notify MCC in writing within
fifteen (15) days of such reallocation or reduction, such notification
to contain information regarding the amount of the reallocation or
reduction, the affected activities, and an explanation for the
reallocation or reduction. In the event that MCC independently
determines, upon review of the executed national annual budget that
such a material reallocation or reduction of resources has occurred,
MCC shall notify the Government and, following such notification, the
Government shall provide a written explanation for such reallocation or
reduction and MCC may (i) reduce, in its sole discretion, the total
amount of MCC Funding or any MCC Disbursement by an amount equal to the
amount estimated in the applicable Detailed Budget for the activity for
which funds were reduced or reallocated or (ii) otherwise suspend or
terminate MCC Funding in accordance with Section 5.4(b).
(c) The Government shall use its best efforts to ensure that all
MCC Funding is fully reflected and accounted for in the annual budget
of Ghana on a multi-year basis.
Section 2.3 Limitations on the Use or Treatment of MCC Funding
(a) Abortions and Involuntary Sterilizations. The Government shall
ensure that MCC Funding shall not be used to undertake, fund or
otherwise support any activity that is subject to prohibitions on use
of funds contained in (i) paragraphs (1) through (3) of section 104(f)
of the Foreign Assistance Act of 1961 (22 U.S.C. 2151b(f)(1)-(3)), a
United States statute, which prohibitions shall apply to the same
extent and in the same manner as such prohibitions apply to funds made
available to carry out Part I of such Act; or (ii) any provision of law
comparable
[[Page 48653]]
to the eleventh and fourteenth provisos under the heading ``Child
Survival and Health Programs Fund'' of division E of Public Law 108-7
(117 Stat. 162), a United States statute.
(b) United States Job Loss or Displacement of Production. The
Government shall ensure that MCC Funding shall not be used to
undertake, fund or otherwise support any activity that is likely to
cause a substantial loss of United States jobs or a substantial
displacement of United States production, including:
(i) Providing financial incentives to relocate a substantial number
of United States jobs or cause a substantial displacement of production
outside the United States;
(ii) Supporting investment promotion missions or other travel to
the United States with the intention of inducing United States firms to
relocate a substantial number of United States jobs or a substantial
amount of production outside the United States;
(iii) Conducting feasibility studies, research services, studies,
travel to or from the United States, or providing insurance or
technical and management assistance, with the intention of inducing
United States firms to relocate a substantial number of United States
jobs or cause a substantial displacement of production outside the
United States;
(iv) Advertising in the United States to encourage United States
firms to relocate a substantial number of United States jobs or cause a
substantial displacement of production outside the United States;
(v) Training workers for firms that intend to relocate a
substantial number of United States jobs or cause a substantial
displacement of production outside the United States;
(vi) Supporting a United States office of an organization that
offers incentives for United States firms to relocate a substantial
number of United States jobs or cause a substantial displacement of
production outside the United States; or
(vii) Providing general budget support for an organization that
engages in any activity prohibited above.
(c) Military Assistance and Training. The Government shall ensure
that MCC Funding shall not be used to undertake, fund or otherwise
support the purchase or use of goods or services for military purposes,
including military training, or to provide any assistance to the
military, police, militia, national guard or other quasi-military
organization or unit.
(d) Prohibition of Assistance Relating to Environmental, Health or
Safety Hazards. The Government shall ensure that MCC Funding shall not
be used to undertake, fund or otherwise support any activity that is
likely to cause a significant environmental, health, or safety hazard.
Unless MCC and the Government agree otherwise in writing, the
Government shall ensure that activities undertaken, funded or otherwise
supported in whole or in part (directly or indirectly) by MCC Funding
comply with environmental guidelines delivered by MCC to the Government
or posted by MCC on its website or otherwise publicly made available,
as such guidelines may be amended from time to time (the
``Environmental Guidelines''), including any definition of ``likely to
cause a significant environmental, health, or safety hazard'' as may be
set forth in such Environmental Guidelines.
(e) Taxation.
(i) Taxes. The Government shall ensure that the Program, any
Program Assets, MCC Funding and Accrued Interest shall be free from any
taxes imposed under the laws currently or hereafter in effect in Ghana
during the Compact Term. This exemption shall apply to any use of any
Program Asset, MCC Funding and Accrued Interest, including any Exempt
Uses, and to any work performed under or activities undertaken in
furtherance of this Compact by any person or entity (including
contractors and grantees) funded by MCC Funding, and shall apply to all
taxes, tariffs, duties, and other levies (each a ``Tax'' and
collectively, ``Taxes''), including:
(1) To the extent attributable to MCC Funding, income taxes and
other taxes on profit or businesses imposed on organizations or
entities, other than nationals of Ghana, receiving MCC Funding,
including taxes on the acquisition, ownership, rental, disposition or
other use of real or personal property, taxes on investment or deposit
requirements and currency controls in Ghana, or any other tax, duty,
charge or fee of whatever nature, except fees for specific services
rendered; for purposes of this Section 2.3(e), the term ``national''
refers to organizations established under the laws currently or
hereafter in effect in Ghana, other than MiDA or any other entity
established solely for purposes of managing or overseeing the
implementation of the Program or any wholly-owned subsidiaries,
divisions, or Affiliates of entities not registered or established
under the laws currently or hereafter in effect in Ghana;
(2) Customs duties, tariffs, import and export taxes, or other
levies on the importation, use and re-exportation of goods, services,
or the personal belongings and effects, including personally-owned
automobiles, for Program use or the personal use of individuals who are
neither citizens nor permanent residents of Ghana and who are present
in Ghana for purposes of carrying out the Program or their family
members, including all charges based on the value of such imported goods;
(3) Taxes on the income or personal property of all individuals who
are neither citizens nor permanent residents of Ghana, including income
and social security taxes of all types and all taxes on the personal
property owned by such individuals, to the extent such income or
property are attributable to MCC Funding; and
(4) Taxes or duties levied on the last transaction for the purchase
of goods or services funded by MCC Funding, including sales taxes,
tourism taxes, value-added taxes or other similar charges; for purposes
of this Section 2.3(e)(i)(4), the term ``last transaction'' refers to
the last transaction by which the goods or services were purchased for
use in the activities funded by MCC Funding.
(ii) This Section 2.3(e) shall apply, but is not limited to (A) any
transaction, service, activity, contract, grant or other implementing
agreement funded in whole or in part by MCC Funding; (B) any supplies,
equipment, materials, property or other goods (referred to collectively
in this Section 2.3(e) as ``goods'') or funds introduced into, acquired
in, used or disposed of in, or imported into or exported from, Ghana by
MCC, or by any person or entity (including contractors and grantees) as
part of, or in conjunction with, MCC Funding or the Program; (C) any
contractor, grantee, or other organization carrying out activities
funded in whole or in part by MCC Funding; and (D) any employee of such
organizations (the uses set forth in clauses (A) through (D) are
collectively referred to herein as ``Exempt Uses'').
(iii) If a Tax has been levied and paid contrary to the
requirements of this Section 2.3(e), whether inadvertently, due to the
impracticality of implementation of this provision with respect to
certain types or amounts of taxes, or otherwise, the Government shall
refund promptly to an account designated by MCC the amount of such Tax
in the currency of Ghana, within thirty (30) days (or such other period
as may be agreed in writing by the Parties) after the Government is
notified in writing of such levy and tax payment, in accordance with
procedures agreed by the Parties, whether by MCC or otherwise;
provided, however, the Government shall apply national funds to satisfy
its obligations under this paragraph and no MCC Funding,
[[Page 48654]]
Accrued Interest, or any assets, goods, or property (real, tangible, or
intangible) purchased or financed in whole or in part (directly or
indirectly) by MCC Funding (``Program Assets'') may be applied by the
Government in satisfaction of its obligations under this paragraph.
(iv) At MCC's request, the Parties shall memorialize in a mutually
acceptable Supplemental Agreement, Implementation Letter or other
suitable document the mechanisms for implementing this Section 2.3(e),
including (A) a formula for determining refunds for Taxes paid, the
amount of which is not susceptible to precise determination, (B) a
mechanism for ensuring the tax-free importation, use, and re-
exportation of goods, services, or the personal belongings of
individuals (including all Providers) described in Section 2.3(e)(i)(2)
above, (C) a requirement for the provision by the Government of a tax-
exemption certificate which expressly includes, inter alia, the thirty
(30) day refund requirement of Section 2.3(e)(iii) above, and (D) any
other appropriate Government action to facilitate the administration of
this Section 2.3(e).
(f) Alteration. The Government shall ensure that no MCC Funding,
Accrued Interest or Program Assets shall be subject to any impoundment,
rescission, sequestration or any provision of law now or hereafter in
effect in Ghana that would have the effect of requiring or allowing any
impoundment, rescission or sequestration of any MCC Funding, Accrued
Interest or Program Asset.
(g) Liens or Encumbrances. The Government shall ensure that no MCC
Funding, Accrued Interest, or Program Assets shall be subject to any
lien, attachment, enforcement of judgment, pledge, or encumbrance of
any kind (each a ``Lien''), except with the prior approval of MCC in
accordance with Section 3(c) of Annex I, and in the event of the
imposition of any Lien not so approved, the Government shall promptly
seek the release of such Lien and if required by final non-appealable
order, shall pay any amounts owed to obtain such release; provided,
however, the Government shall apply national funds to satisfy its
obligations under this Section 2.3(g) and no MCC Funding, Accrued
Interest, or Program Assets may be applied by the Government in
satisfaction of its obligations under this Section 2.3(g).
(h) Other Limitations. The Government shall ensure that the use or
treatment of MCC Funding, Accrued Interest, and Program Assets shall be
subject to and in conformity with such other limitations (i) as
required by the applicable law of the United States of America now or
hereafter in effect during the Compact Term, (ii) as advisable under or
required by applicable United States Government policies now or
hereafter in effect during the Compact Term, or (iii) to which the
Parties may otherwise agree in writing.
(i) Utilization of Goods, Services and Works. The Government shall
ensure that any Program Assets, services, facilities or works funded in
whole or in part (directly or indirectly) by MCC Funding, unless
otherwise agreed by the Parties in writing, shall be used solely in
furtherance of this Compact.
(j) Notification of Applicable Laws and Policies. MCC shall notify
the Government of any applicable United States law or policy affecting
the use or treatment of MCC Funding, whether or not specifically
identified in this Section 2.3, and shall provide to the Government a
copy of the text of any such applicable law and a written explanation
of any such applicable policy.
Section 2.4 Incorporation; Notice; Clarification
(a) The Government shall include, or ensure the inclusion of, all
of the requirements set forth in Section 2.3 in all Supplemental
Agreements to which MCC is not a party and shall use its best efforts
to ensure that no such Supplemental Agreement is implemented in
violation of the prohibitions set forth in Section 2.3.
(b) The Government shall ensure notification of all of the
requirements set forth in Section 2.3 to any Provider and all relevant
officers, directors, employees, agents, representatives, Affiliates,
contractors, sub-contractors, grantees and sub-grantees of any
Provider. The term ``Provider'' shall mean (i) MiDA and any Government
Affiliate or Permitted Designee involved in any activities in
furtherance of this Compact or (ii) any third party who receives at
least US$ 50,000 in the aggregate of MCC Funding (other than employees
of MiDA) during the Compact Term or such other amount as the Parties
may agree in writing, whether directly from MCC, indirectly through Re-
Disbursements, or otherwise.
(c) In the event the Government or any Provider requires
clarification from MCC as to whether an activity contemplated to be
undertaken in furtherance of this Compact violates or may violate any
provision of Section 2.3, the Government shall notify MCC in writing
and provide in such notification a detailed description of the activity
in question. In such event, the Government shall not proceed, and shall
use its best efforts to ensure that no relevant Provider proceeds, with
such activity, and the Government shall ensure that no Re-Disbursements
shall be made for such activity, until MCC advises the Government or
such Provider in writing that the activity is permissible. MCC shall
use good faith efforts to respond timely to such notification for
clarification.
Section 2.5 Refunds; Violation
(a) Notwithstanding the availability to MCC, or exercise by MCC, of
any other remedies, including under international law, this Compact or
any Supplemental Agreement:
(i) If any amount of MCC Funding, Accrued Interest or any other
Program Asset is used for any purpose prohibited under this Article II
or otherwise in violation of any of the terms and conditions of this
Compact, any guidance in any Implementation Letter, or any Supplemental
Agreement between the Parties, MCC may, upon written notice, require
the Government to repay promptly to MCC to an account designated by
MCC, or to others as MCC may direct, the amount of such misused MCC
Funding or Accrued Interest, or the cash equivalent of the value of any
other misused Program Asset, in United States Dollars, plus any
interest that accrued or would have accrued thereon, within thirty (30)
days after the Government is notified, whether by MCC or other duly
authorized representative of the United States Government, of such
prohibited use; provided, however, the Government shall apply national
funds to satisfy its obligations under this Section 2.5(a)(i) and no
MCC Funding, Accrued Interest, or any other Program Assets may be
applied by the Government in satisfaction of its obligations under this
Section 2.5(a)(i); and
(ii) If all or any portion of this Compact is terminated or
suspended and upon the expiration of this Compact, the Government
shall, subject to the requirements of Sections 5.4(e) and 5.4(f),
refund, or ensure the refund of, to such account designated by MCC the
amount of any MCC Funding, plus any Accrued Interest, promptly, but in
no event later than thirty (30) days after the Government receives
MCC's request for such refund; provided, that if this Compact is
terminated or suspended in part, MCC may request a refund for only the
amount of MCC Funding, plus any Accrued Interest, then allocated to the
terminated or suspended portion; provided, further, that any refund of
MCC Funding or Accrued Interest shall
[[Page 48655]]
be to such account(s) as designated by MCC.
(b) Notwithstanding any other provision in this Compact or any
other agreement to the contrary, MCC's right under this Section 2.5 for
a refund shall continue during the Compact Term and for a period of (i)
five (5) years thereafter or (ii) one (1) year after MCC receives
actual knowledge of such violation, whichever is later.
(c) If MCC determines that any activity or failure to act violates,
or may violate, any Section in this Article II, MCC may refuse any
further MCC Disbursements for or conditioned upon such activity, and may
take any action to prevent any Re-Disbursement related to such activity.
Section 2.6 Bilateral Agreement
All MCC Funding shall be considered United States assistance under
the General Agreement for a Programme of Technical Co-operation by and
between the Government of the United States of America and the
Government, dated June 3, 1957, as amended from time to time (the
``Bilateral Agreement''). If there are conflicts or inconsistencies
between any parts of this Compact and the Bilateral Agreement, as
either may be amended from time to time, the provisions of this Compact
shall prevail over those of the Bilateral Agreement.
Article III. Implementation
Section 3.1 Implementation Framework
This Compact shall be implemented by the Parties in accordance with
this Article III and as further specified in the Annexes and in
relevant Supplemental Agreements.
Section 3.2 Government Responsibilities
(a) The Government shall have principal responsibility for
oversight and management of the implementation of the Program (i) in
accordance with the terms and conditions specified in this Compact and
relevant Supplemental Agreements, (ii) in accordance with all
applicable laws then in effect in Ghana, and (iii) in a timely and
cost-effective manner and in conformity with sound technical, financial
and management practices (collectively, the ``Government
Responsibilities''). Unless otherwise expressly provided, any reference
to the Government Responsibilities or any other responsibilities or
obligations of the Government herein shall be deemed to apply to any
Government Affiliate and any of their respective directors, officers,
employees, contractors, sub-contractors, grantees, sub-grantees, agents
or representatives.
(b) The Government shall ensure that no person or entity shall
participate in the selection, award, administration, or oversight of a
contract, grant or other benefit or transaction funded in whole or in
part (directly or indirectly) by MCC Funding, in which (i) the entity,
the person, members of the person's immediate family or household or
his or her business partners, or organizations controlled by or
substantially involving such person or entity, has or have a direct or
indirect financial or other interest or (ii) the person or entity is
negotiating or has any arrangement concerning prospective employment,
unless such person or entity has first disclosed in writing to the
Government the conflict of interest and, following such disclosure, the
Parties agree in writing to proceed notwithstanding such conflict. The
Government shall ensure that no person or entity involved in the
selection, award, administration, oversight or implementation of any
contract, grant or other benefit or transaction funded in whole or in
part (directly or indirectly) by MCC Funding shall solicit or accept
from or offer to a third party or seek or be promised directly or
indirectly for itself or for another person or entity any gift,
gratuity, favor or benefit, other than items of de minimis value and
otherwise consistent with such guidance as MCC may provide from time to
time.
(c) The Government shall not designate any person or entity,
including any Government Affiliate, to implement, in whole or in part,
this Compact or any Supplemental Agreement between the Parties
(including any Government Responsibilities or any other
responsibilities or obligations of the Government under this Compact or
any Supplemental Agreement between the Parties) or to exercise any
rights of the Government under this Compact or any Supplemental
Agreement between the Parties, except as expressly provided herein or
with the prior written consent of MCC; provided, however, the
Government may designate MiDA or, with the prior written consent of
MCC, such other mutually acceptable persons or entities (each, a
``Permitted Designee'') to implement some or all of the Government
Responsibilities or any other responsibilities or obligations of the
Government or to exercise any rights of the Government under this
Compact or any Supplemental Agreement between the Parties each in
accordance with the terms and conditions set forth in this Compact or
such Supplemental Agreement (referred to herein collectively as
``Designated Rights and Responsibilities''). Notwithstanding any
provision herein or any other agreement to the contrary, no such
designation shall relieve the Government of such Designated Rights and
Responsibilities, for which the Government shall retain ultimate
responsibility. In the event that the Government designates any person
or entity, including any Government Affiliate, to implement any portion
of the Government Responsibilities or other responsibilities or
obligations of the Government, or to exercise any rights of the
Government under this Compact or any Supplemental Agreement between the
Parties, in accordance with this section 3.2(c), then the Government
shall (i) cause such person or entity to perform such Designated Rights
and Responsibilities in the same manner and to the full extent to which
the Government is obligated to perform such Designated Rights and
Responsibilities, (ii) ensure that such person or entity does not
assign, delegate or contract (or otherwise transfer) any of such
Designated Rights and Responsibilities to any person or entity and
(iii) cause such person or entity to certify to MCC in writing that it
will so perform such Designated Rights and Responsibilities and will
not assign, delegate, or contract (or otherwise transfer) any of such
Designated Rights and Responsibilities to any person or entity without
the prior written consent of MCC.
(d) The Government shall, upon a request from MCC, execute, or
ensure the execution of, an assignment to MCC of any cause of action
which may accrue to the benefit of the Government, a Government
Affiliate or any Permitted Designee, including MiDA, in connection with
or arising out of any activities funded in whole or in part (directly
or indirectly) by MCC Funding.
(e) The Government shall ensure that (i) no decision of MiDA is
modified, supplemented, unduly influenced or rescinded by any
governmental authority, except by a non-appealable judicial decision,
and (ii) the authority of MiDA shall not be expanded, restricted, or
otherwise modified, except in accordance with this Compact, the
Governance Agreement, any other Governing Document or any other
Supplemental Agreement between the Parties.
(f) The Government shall ensure that all persons and individuals
that enter into agreements to provide goods, services or works under
the Program or in furtherance of this Compact shall do so in accordance
with the Procurement Guidelines and shall obtain all necessary
immigration, business and
[[Page 48656]]
other permits, licenses, consents and approvals to enable them and
their personnel to fully perform under such agreements.
Section 3.3 Government Deliveries
The Government shall proceed, and cause others to proceed, in a
timely manner to deliver to MCC all reports, notices, certificates,
documents or other deliveries required to be delivered by the
Government under this Compact or any Supplemental Agreement between the
Parties, in form and substance as set forth in this Compact or in any
such Supplemental Agreement.
Section 3.4 Government Assurances
The Government hereby provides the following assurances to MCC that
as of the date this Compact is signed:
(a) The information contained in the Proposal and any agreement,
report, statement, communication, document or otherwise delivered or
communicated to MCC by or on behalf of the Government on or after the
date of the submission of the Proposal (i) are true, correct and
complete in all material respects and (ii) do not omit any fact known
to the Government that if disclosed would (A) alter in any material
respect the information delivered, (B) likely have a material adverse
effect on the Government's ability to implement effectively, or ensure
the effective implementation of, the Program or any Project or
otherwise to carry out its responsibilities or obligations under or in
furtherance of this Compact, or (C) have likely adversely affected
MCC's determination to enter into this Compact or any Supplemental
Agreement between the Parties.
(b) Unless otherwise disclosed in writing to MCC, the MCC Funding
made available hereunder is in addition to the normal and expected
resources that the Government usually receives or budgets for the
activities contemplated herein from external or domestic sources.
(c) This Compact does not conflict and will not conflict with any
international agreement or obligation to which the Government is a
party or by which it is bound.
(d) No payments have been (i) received by any official of the
Government or any other government body in connection with the
procurement of goods, services or works to be undertaken or funded in
whole or in part (directly or indirectly) by MCC Funding, except fees,
taxes, or similar payments legally established in Ghana (subject to
Section 2.3(e)) and consistent with the applicable requirement of the
laws of Ghana or (ii) made to any third party, in connection with or in
furtherance of this Compact, in violation of the United States Foreign
Corrupt Practices Act of 1977, as amended (15 U.S.C. 78a et seq.).
Section 3.5 Implementation Letters; Supplemental Agreements
(a) MCC may, from time to time, issue one or more letters to
furnish additional information or guidance to assist the Government in
the implementation of this Compact (each, an ``Implementation
Letter''). The Government shall apply such guidance in implementing
this Compact.
(b) The details of any funding, implementing and other arrangements
in furtherance of this Compact may be memorialized in one or more
agreements between (i) the Government (or any Government Affiliate or
Permitted Designee) and MCC, (ii) MCC or the Government (or any
Government Affiliate or Permitted Designee) and any third party,
including any of the Providers or Permitted Designee or (iii) any third
parties where neither MCC nor the Government is a party, before, on or
after the Entry into Force (each, a ``Supplemental Agreement''). The
Government shall deliver, or cause to be delivered, to MCC within five
(5) days of its execution a copy of any Supplemental Agreement to which
MCC is not a party.
Section 3.6 Procurement; Awards of Assistance
(a) The Government shall ensure that the procurement of all goods,
services and works by the Government or any Provider in furtherance of
this Compact shall be consistent with the procurement guidelines (the
``Procurement Guidelines'') reflected in a Supplemental Agreement
between the Government (and a mutually acceptable Government Affiliate
or MiDA) and MCC (the ``Procurement Agreement''), which Procurement
Guidelines shall include the following requirements:
(i) Internationally accepted procurement rules with open, fair and
competitive procedures are used in a transparent manner to solicit,
award and administer contracts, grants, and other agreements and to
procure goods, services and works;
(ii) Solicitations for goods, services, and works shall be based
upon a clear and accurate description of the goods, services or works
to be acquired;
(iii) Contracts shall be awarded only to qualified and capable
contractors that have the capability and willingness to perform the
contracts in accordance with the terms and conditions of the applicable
contracts and on a cost effective and timely basis; and
(iv) No more than a commercially reasonable price, as determined,
for example, by a comparison of price quotations and market prices,
shall be paid to procure goods, services, and works.
(b) The Government shall maintain, and shall use its best efforts
to ensure that all Providers maintain, records regarding the receipt
and use of goods, services and works acquired in furtherance of this
Compact, the nature and extent of solicitations of prospective
suppliers of goods, services and works acquired in furtherance of this
Compact, and the basis of award of contracts, grants and other
agreements in furtherance of this Compact.
(c) The Government shall use its best efforts to ensure that
information, including solicitations, regarding procurement, grant and
other agreement actions funded (or to be funded) in whole or in part
(directly or indirectly) by MCC Funding shall be made publicly
available in the manner outlined in the Procurement Guidelines or in
any other manner agreed upon by the Parties in writing.
(d) The Government shall ensure that no goods, services or works
may be funded in whole or in part (directly or indirectly) by MCC
Funding which are procured pursuant to orders or contracts firmly
placed or entered into prior to the Entry into Force, except as the
Parties may otherwise agree in writing.
(e) The Government shall ensure that MiDA and any other Permitted
Designee follows, and uses its best efforts to ensure that all
Providers follow, the Procurement Guidelines in procuring (including
soliciting) goods, services and works and in awarding and administering
contracts, grants and other agreements in furtherance of this Compact,
and shall furnish MCC evidence of the adoption of the Procurement
Guidelines by MiDA no later than the time specified in the Disbursement
Agreement.
(f) The Government shall include, or ensure the inclusion of, the
requirements of this section 3.6 into all Supplemental Agreements
between the Government, any Government Affiliate or Permitted Designee
or any of their respective directors, officers, employees, Affiliates,
contractors, sub-contractors, grantees, sub-grantees, representatives
or agents, on the one hand, and a Provider, on the other hand.
Section 3.7 Policy Performance; Policy Reforms
In addition to the specific policy and legal reform commitments
identified in Annex I and the Schedules thereto, the Government shall
seek to maintain and
[[Page 48657]]
to improve its level of performance under the policy criteria
identified in section 607 of the Act, and the MCA selection criteria
and methodology published by MCC pursuant to section 607 of the Act
from time to time (``MCA Eligibility Criteria'').
Section 3.8 Records and Information; Access; Audits; Reviews
(a) Reports and Information. The Government shall furnish to MCC,
and shall use its best efforts to ensure that all Providers and any
other third party receiving MCC Funding, as appropriate, furnish to the
Government (and the Government shall provide to MCC), any records and
other information required to be maintained under this Section 3.8 and
such other information, documents and reports as may be necessary or
appropriate for the Government to carry out effectively its obligations
under this Compact, including under section 3.12.
(b) Government Books and Records. The Government shall maintain,
and shall use its best efforts to ensure that all Providers maintain,
accounting books, records, documents and other evidence relating to
this Compact adequate to show, to the satisfaction of MCC, without
limitation, the use of all MCC Funding, including all costs incurred by
the Government and the Providers in furtherance of this Compact, the
receipt, acceptance and use of goods, services and works acquired in
furtherance of this Compact by the Government and the Providers,
agreed-upon cost sharing requirements, the nature and extent of
solicitations of prospective suppliers of goods, services and works
acquired by the Government and the Providers in furtherance of this
Compact, the basis of award of Government and other contracts and
orders in furtherance of this Compact, the overall progress of the
implementation of the Program, and any documents required by this
Compact or any Supplemental Agreement between the Parties or reasonably
requested by MCC upon reasonable notice (``Compact Records''). The
Government shall maintain, and shall use its best efforts to ensure
that all Covered Providers maintain, Compact Records in accordance with
generally accepted accounting principles prevailing in the United
States, or at the Government's option and with the prior written
approval by MCC, other accounting principles, such as those (i)
prescribed by the International Accounting Standards Committee (an
affiliate of the International Federation of Accountants) or (ii) then
prevailing in Ghana. Compact Records shall be maintained for at least
five (5) years after the end of the Compact Term or for such longer
period, if any, required to resolve any then pending litigation, claims
or audit findings or any statutory requirements.
(c) Access. Upon the request of MCC, the Government, at all
reasonable times, shall permit, or cause to be permitted, authorized
representatives of MCC, the Inspector General, the United States
Government Accountability Office, any auditor responsible for an audit
contemplated herein or otherwise conducted in furtherance of this
Compact, and any agents or representatives engaged by MCC or a
Permitted Designee to conduct any assessment, review or evaluation of
the Program, the opportunity to audit, review, evaluate or inspect
activities funded in whole or in part (directly or indirectly) by MCC
Funding or undertaken in connection with the Program, the utilization
of goods and services purchased or funded in whole or in part (directly
or indirectly) by MCC Funding, and Compact Records, including of the
Government or any Provider, relating to activities funded or undertaken
in furtherance of, or otherwise relating to, this Compact, and shall
use its best efforts to ensure access by MCC, the Inspector General,
the United States Government Accountability Office or relevant auditor,
reviewer or evaluator or their respective representatives or agents to
all relevant directors, officers, employees, Affiliates, contractors,
representatives and agents of the Government or any Provider.
(d) Audits.
(i) Government Audits. The Government shall, on at least an annual
basis and as the Parties may otherwise agree in writing, conduct, or
cause to be conducted, financial audits of all MCC Disbursements and
Re-Disbursements during the year since the Entry into Force or since
the prior anniversary of the Entry into Force in accordance with the
following terms, except as the Parties may otherwise agree in writing.
As requested by MCC in writing, the Government shall use, or cause to
be used, or select or cause to be selected, an auditor named on the
approved list of auditors in accordance with the ``Guidelines for
Financial Audits Contracted by Foreign Recipients'' (the ``Audit
Guidelines'') issued by the Inspector General of the United States
Agency for International Development (the ``Inspector General''), and
as approved by MCC, to conduct such annual audits. Such audits shall be
performed in accordance with such Audit Guidelines and be subject to
quality assurance oversight by the Inspector General in accordance with
such Audit Guidelines. An audit shall be completed and delivered to MCC
no later than ninety (90) days after the first period to be audited and
no later than ninety (90) days after each anniversary of the Entry into
Force thereafter, or such other period as the Parties may otherwise
agree in writing.
(ii) Audits of U.S. Entities. The Government shall ensure that
Supplemental Agreements between the Government or any Provider, on the
one hand, and a United States non-profit organization, on the other
hand, state that the United States organization is subject to the
applicable audit requirements contained in OMB Circular A-133,
notwithstanding any other provision of this Compact to the contrary.
The Government shall ensure that Supplemental Agreements between the
Government or any Provider, on the one hand, and a United States for-
profit Covered Provider, on the other hand, state that the United
States organization is subject to audit by the cognizant United States
Government agency, unless the Government and MCC agree otherwise in
writing.
(iii) Audit Plan. The Government shall submit, or cause to be
submitted, to MCC no later than twenty (20) days prior to the date of
its adoption a plan, in accordance with the Audit Guidelines, for the
audit of the expenditures of any Covered Providers, which audit plan,
in the form and substance as approved by MCC, the Government shall
adopt, or cause to be adopted, no later than sixty (60) days prior to
the end of the first period to be audited (such plan, the ``Audit Plan'').
(iv) Covered Provider. A ``Covered Provider'' is (A) 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 MiDA
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 (B) 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 MiDA fiscal year or
any other United States person or entity that receives, directly or
indirectly, US$ 500,000 or more of MCC Funding from any Provider in
such fiscal year.
(v) Corrective Actions. The Government shall use its best efforts
to ensure that Covered Providers take, where necessary, appropriate and
timely corrective actions in response to audits, consider whether a
Covered Provider's
[[Page 48658]]
audit necessitates adjustment of its own records, and require each such
Covered Provider to permit independent auditors to have access to its
records and financial statements as necessary.
(vi) Audit Reports. The Government shall furnish, or use its best
efforts to cause to be furnished, to MCC an audit report in a form
satisfactory to MCC for each audit required by this Section 3.8, other
than audits arranged for by MCC, no later than ninety (90) days after
the end of the period under audit, or such other time as may be agreed
by the Parties from time to time.
(vii) Other Providers. For Providers who receive MCC Funding under
this Compact pursuant to direct contracts or agreements with MCC, MCC
shall include appropriate audit requirements in such contracts or
agreements and shall, on behalf of the Government, unless otherwise
agreed by the Parties, conduct the follow-up activities with regard to
the audit reports furnished pursuant to such requirements.
(viii) Audit by MCC. MCC retains the right to perform, or cause to
be performed, the audits required under this Section 3.8 by utilizing
MCC Funding or other resources available to MCC for this purpose, and
to audit, conduct a financial review, or otherwise ensure
accountability of any Provider or any other third party receiving MCC
Funding, regardless of the requirements of this Section 3.8.
(e) Application to Providers. The Government shall include, or
ensure the inclusion of, at a minimum, the requirements of:
(i) Paragraphs (a), (b), (c), (d)(ii), (d)(iii), (d)(v), (d)(vi),
and (d)(viii) of this Section 3.8 into all Supplemental Agreements
between the Government, any Government Affiliate, any Permitted
Designee or any of their respective directors, officers, employees,
Affiliates, contractors, sub-contractors, grantees, sub-grantees,
representatives or agents (each, a ``Government Party''), on the one
hand, and a Covered Provider that is not a non-profit organization
domiciled in the United States, on the other hand;
(ii) Paragraphs (a), (b), (c), (d)(ii), and (d)(viii) of this
Section 3.8 into all Supplemental Agreements between a Government Party
and a Provider that does not meet the definition of a Covered Provider;
and
(iii) Paragraphs (a), (b), (c), (d)(ii), (d)(v) and (d)(viii) of
this Section 3.8 into all Supplemental Agreements between a Government
Party and a Covered Provider that is a non-profit organization
domiciled in the United States.
(f) Reviews or Evaluations. The Government shall conduct, or cause
to be conducted, such performance reviews, data quality reviews,
environmental and social audits, or program evaluations during the
Compact Term or otherwise and in accordance with the M&E Plan or as
otherwise agreed in writing by the Parties.
(g) Cost of Audits, Reviews or Evaluations. MCC Funding may be used
to fund the costs of any audits, reviews or evaluations required under
this Compact, including as reflected on Exhibit A to Annex II, and in
no event shall the Government be responsible for the costs of any such
audits, reviews or evaluations from financial sources other than MCC
Funding.
Section 3.9 Insurance; Performance Guarantees
The Government shall, to MCC's satisfaction, insure or cause to be
insured all Program Assets and shall obtain or cause to be obtained
such other appropriate insurance and other protections to cover against
risks or liabilities associated with the operations of the Program,
including by requiring Providers to obtain adequate insurance and post
adequate performance bonds or other guarantees. MiDA or the
Implementing Entity, as applicable, shall be named as the payee on any
such insurance and the beneficiary of any such guarantee, including
performance bonds, to the extent permissible under applicable laws
unless otherwise agreed by the Parties. MCC, and to the extent it is
not named as the insured party, MiDA shall be named as additional
insureds on any such insurance or other guarantee, to the extent
permissible under applicable laws unless otherwise agreed by the
Parties. The Government shall ensure that any proceeds from claims paid
under such insurance or any other form of guarantee shall be used to
replace or repair any loss of Program Assets or to pursue the
procurement of the covered goods, services, works, or otherwise;
provided, however, at MCC's election, such proceeds shall be deposited
in a Permitted Account as designated by MiDA and acceptable to MCC or
as otherwise directed by MCC. To the extent MiDA is held liable under
any indemnification or other similar provision of any agreement between
MiDA, on the one hand, and any other Provider or other third party, on
the other hand, the Government shall pay in full on behalf of MiDA any
such obligation; provided, further, the Government shall apply national
funds to satisfy its obligations under this Section 3.9 and no MCC
Funding, Accrued Interest, or Program Asset may be applied by the
Government in satisfaction of its obligations under this Section 3.9.
Section 3.10 Domestic Requirements
The Government shall proceed in a timely manner to seek
ratification of this Compact as necessary or required by the laws of
Ghana, or similar domestic requirement, in order that (a) this Compact
(and any Supplemental Agreement to which MCC is a party) shall be given
the status of an international agreement, (b) no laws of Ghana (other
than the Constitution of Ghana) now or hereafter in effect shall take
precedence or prevail over this Compact (or any Supplemental Agreement
to which MCC is a party) during the Compact Term (or a longer period to
the extent provisions of this Compact remain in force following the
expiration of the Compact Term pursuant to Section 5.13) and (c) each
of the provisions of this Compact (and each of the provisions of any
Supplemental Agreement to which MCC is a party) is valid, binding and
in full force and effect under the laws of Ghana. The Government shall
initiate such process promptly after the conclusion of this Compact.
Notwithstanding anything to the contrary in this Compact, this Section
3.10 shall provisionally apply prior to Entry into Force.
Section 3.11 No Conflict
The Government shall undertake not to enter into any agreement in
conflict with this Compact or any Supplemental Agreement during the
Compact Term.
Section 3.12 Reports
The Government shall provide, or cause to be provided, to MCC at
least on each anniversary of the Entry into Force (or such other
anniversary agreed by the Parties in writing) and otherwise within
thirty (30) days of any written request by MCC, or as otherwise agreed
in writing by the Parties, the following information:
(a) The name of each entity to which MCC Funding has been provided;
(b) The amount of MCC Funding provided to such entity;
(c) A description of the Program and each Project funded in
furtherance of this Compact, including:
(i) A statement of whether the Program or any Project was solicited
or unsolicited; and
(ii) A detailed description of the objectives and measures for
results of the Program or Project;
[[Page 48659]]
(d) The progress made by Ghana toward achieving the Compact Goal
and Objectives;
(e) A description of the extent to which MCC Funding has been
effective in helping Ghana to achieve the Compact Goal and Objectives;
(f) A description of the coordination of MCC Funding with other
United States foreign assistance and other related trade policies;
(g) A description of the coordination of MCC Funding with
assistance provided by other donor countries;
(h) Any report, document or filing that the Government, any
Government Affiliate or any Permitted Designee submits to any
government body in connection with this Compact;
(i) Any report or document required to be delivered to MCC under
the Environmental Guidelines, any Audit Plan, or any Implementation
Document; and
(j) Any other report, document or information requested by MCC or
required by this Compact or any Supplemental Agreement between the Parties.
Article IV. Conditions Precedent; Deliveries
Section 4.1 Conditions Prior to the Entry into Force and Deliveries
As conditions precedent to the Entry Into Force, the Parties shall
satisfy the conditions set forth in this Section 4.1.
(a) The Government (or a mutually acceptable Government Affiliate),
a Permitted Designee, and MCC shall excute a Disbursement Agreement, which
agreement shall be in full force and effects as of the Entry into Force.
(b) The Government (or a mutually acceptable Government Affiliate),
a Permitted Designee, and MCC shall execute a Procurement Agreement, which
agreement shall be in full force and effect as of the Entry into Force.
(c) The Government (or a mutually acceptable Government Affiliate),
a Permitted Designee, and MCC shall execute a governance agreement (the
``Governance Agreement''), which agreement shall be in full force and
effects as of the Entry into Force.
(d)(i) The Government shall deliver one or more of the Supplement
Agreements or other documents identified on Exhibit B attached hereto,
which agreements or other documents shall be fully executed by the
parties thereto and in full force and effect, or (ii) the Government
(or a mutually acceptable Government Affiliate), a Permitted Designee,
and MCC shall execute one or more term sheets that set forth the
material and principal terms and conditions that will be included in
any such Supplemental Agreement or other documents that have not been
entered into or effective as of the Entry into Force (the
``Supplemental Agreement Term Sheets'').
(e) The Government shall deliver a written statement as to the
incumbency and specimen signature of the Principal Representative and
each Additional Representative of the Government executing any document
under this Compact, such written statement to be signed by a duly
authorized official of the Government other than the Principal
Representative or any such Additional Representative.
(f) The Government shall deliver a certificate signed and dated by
the Principal Representative of the Government, or such other duly
authorized representative of the Government acceptable to MCC, that:
(i) Certifies the Government has completed all of its domestic
requirements in order that (1) this Compact (and any Supplemental
Agreement to which MCC is a party) shall be given the status of an
international agreement, (2) no laws of Ghana (other than the
Constitution of Ghana) now or hereafter in effect shall take precedence
or prevail over this Compact (or any Supplemental Agreement to which
MCC is a party) during the Compact Term (or a longer period to the
extent provisions of this Compact remain in force following the Compact
Term pursuant to Section 5.13) and (3) each of the provisions of this
Compact (and each of the provisions of any Supplemental Agreement to
which MCC is a party) shall be valid, binding and in full force and
effect under the laws of Ghana; and
(ii) Attaches thereto, and certifies that such attachments are,
true, correct and complete copies of all decrees, legislation,
regulations or other governmental documents relating to its domestic
requirements for this Compact to enter into force and the satisfaction
of Section 3.10 (including any requirements under section 96 of the
Ghana Public Procurement Act, 2003 (Act 663) to cause the Procurement
Guidelines (as defined in Section 3.6(a)) to apply to the transactions
contemplated by this Compact, which MCC may post on its website or
otherwise make publicly available.
(g) MCC shall deliver a written statement as to the incumbency and
specimen signature of the Principal Representative and each Additional
Representative of MCC executing any document under this Compact such
written statement to be signed by a duly authorized official of MCC other
than the Principal Representative or any such Additional Representative.
(h) The Government has not engaged subsequent to the conclusion of
this Compact in any action or omission inconsistent with the MCA
Eligibility Criteria, as determined by MCC in its sole discretion.
Section 4.2 Conditions Precedent to MCC Disbursements or Re-Disbursements
Prior to, and as condition precedent to, any MCC Disbursement or
Re-Disbursement, the Government shall satisfy, or ensure the
satisfaction of, all applicable conditions precedent in the
Disbursement Agreement.
Article V. Final Clauses
Section 5.1 Communications
Unless otherwise expressly stated in this Compact or otherwise
agreed in writing by the Parties, any notice, certificate, request,
report, document or other communication required, permitted, or
submitted by either Party to the other under this Compact shall be (a)
in writing, (b) in English and (c) deemed duly given: (i) upon personal
delivery to the Party to be notified; (ii) when sent by confirmed
facsimile or electronic mail, if sent during normal business hours of
the recipient Party, if not, then on the next business day; or (iii)
three (3) business days after deposit with an internationally
recognized overnight courier, specifying next day delivery, with written
verification of receipt to the Party to be notified at the address
indicated below, or at such other address as such Party may designate:
To MCC:
Millennium Challenge Corporation, Attention: Vice President for
Operations (with a copy to the Vice President and General Counsel), 875
Fifteenth Street, NW., Washington, DC 20005, United States of America,
Facsimile: (202) 521-3700, Phone: (202) 521-3600, E-mail:
VPOperations@mcc.gov (Vice President for Operations);
VPGeneralCounsel@mcc.gov (Vice President and General Counsel).
To the Government:
Ministry of Public Sector Reform, Attention: Minister of Public
Sector Reform, Private Mail Bag, Stadium Post Office, Accra, Ghana,
Facsimile: (233-21) 670295, Phone: (233-21) 684086, E-mail:
nduom@africaonline.com.gh.
With a copy to MiDA:
At an address, and to the attention of the person, to be designated
in writing to MCC by the Government.
Notwithstanding the foregoing, any audit report delivered pursuant to
[[Page 48660]]
Section 3.8, if delivered by facsimile or electronic mail, shall be
followed by an original in overnight express mail. This Section 5.1
shall not apply to the exchange of letters contemplated in Section 1.3
or any amendments under Section 5.3.
Section 5.2 Representatives
Unless otherwise agreed in writing by the Parties, for all purposes
relevant to this Compact, the Government shall be represented by the
individual holding the position of, or acting as, Minister of Public
Sector Reform of Ghana, and MCC shall be represented by the individual
holding the position of, or acting as, Vice President for Operations
(each, a ``Principal Representative''), each of whom, by written notice
to the other Party, may designate one or more additional
representatives (each, an ``Additional Representative'') for all
purposes other than signing amendments to this Compact. The names of
the Principal Representative and any Additional Representative of each
of the Parties shall be provided, with specimen signatures, to the
other Party, and the Parties may accept as duly authorized any
instrument signed by such representatives relating to the
implementation of this Compact, until receipt of written notice of
revocation of their authority. A Party may change its Principal
Representative to a new representative of equivalent or higher rank
upon written notice to the other Party, which notice shall include the
specimen signature of the new Principal Representative.
Section 5.3 Amendments
The Parties may amend this Compact only by a written agreement
signed by the Principal Representatives of the Parties and subject to
the respective domestic approval requirements to which this Compact was
subject.
Section 5.4 Termination; Suspension
(a) Subject to Section 2.5, either Party may terminate this Compact
in its entirety by giving the other Party thirty (30) days' written notice.
(b) Notwithstanding any other provision of this Compact, including
Section 2.1, or any Supplemental Agreement between the Parties, subject
to Section 2.5, MCC may suspend or terminate this Compact or MCC
Funding, in whole or in part, and any obligation or sub-obligation
related thereto, upon giving the Government written notice, if MCC
determines, in its sole discretion, that:
(i) Any use or proposed use of MCC Funding or Program Assets or
continued implementation of the Compact would be in violation of
applicable law or United States Government policy, whether now or
hereafter in effect;
(ii) The Government, any Provider, or any other third party
receiving MCC Funding or using Program Assets is engaged in activities
that are contrary to the national security interests of the United States;
(iii) The Government or any Permitted Designee has committed an act
or omission or an event has occurred that would render Ghana ineligible
to receive United States economic assistance under Part I of the
Foreign Assistance Act of 1961, as amended (22 U.S.C 2151 et seq.), by
reason of the application of any provision of the Foreign Assistance
Act of 1961 or any other provision of law;
(iv) The Government or any Permitted Designee has engaged in a
pattern of actions or omissions inconsistent with the MCA Eligibility
Criteria, or there has occurred a significant decline in the
performance of Ghana on one or more of the eligibility indicators
contained therein;
(v) The Government or any Provider has materially breached one or
more of its assurances or any covenants, obligations or
responsibilities under this Compact or any Supplemental Agreement;
(vi) An audit, review, report or any other document delivered in
furtherance of the Compact or any Supplemental Agreement or any other
evidence reveals that actual expenditures for the Program, any Project
or any Project Activity were greater than the projected expenditure for
such activities identified in the applicable Detailed Budget or are
projected to be greater than projected expenditures for such activities;
(vii) If the Government (A) materially reallocates or reduces the
allocation in its national budget or any other Government budget of the
normal and expected resources that the Government would have otherwise
received or budgeted, from external or domestic sources, for the
activities contemplated herein, (B) fails to contribute or provide the
amount, level, type and quality of resources required to carry out
effectively the Government Responsibilities or any other
responsibilities or obligations of the Government under or in
furtherance of this Compact, or (C) fails to pay any of its obligations
as required under this Compact or any Supplemental Agreement, including
such obligations which shall be paid solely out of national funds;
(viii) If the Government, any Provider, or any other third party
receiving MCC Funding or using Program Assets, or any of their
respective directors, officers, employees, Affiliates, contractors,
sub-contractors, grantee, sub-grantee, representatives or agents, is
found to have been convicted of a narcotics offense or to have been
engaged in drug trafficking;
(ix) Any MCC Funding or Program Assets are applied, directly or
indirectly, to the provision of resources and support to, individuals and
organizations associated with terrorism, sex trafficking or prostitution;
(x) An event or condition of any character has occurred that: (A)
Materially and adversely affects, or is likely to materially and
adversely affect, the ability of the Government or any other party to
effectively implement, or ensure the effective implementation of, the
Program or any Project or otherwise to carry out its responsibilities
or obligations under or in furtherance of this Compact or any
Supplemental Agreement or to perform its obligations under or in
furtherance of this Compact or any Supplemental Agreement or to
exercise its rights thereunder; (B) makes it improbable that the
Objectives will be achieved during the Compact Term; (C) materially and
adversely affects the Program Assets or any Permitted Account; or (D)
constitutes misconduct injurious to MCC, or constitutes a fraud or a
felony, by the Government, any Government Affiliate, Permitted Designee
or Provider, or any officer, director, employee, agent, representative,
Affiliate, contractor, grantee, subcontractor or sub-grantee of any of
the foregoing;
(xi) The Government, any Permitted Designee or Provider has taken
any action or omission or engaged in any activity in violation of, or
inconsistent with, the requirements of this Compact or any Supplemental
Agreement to which the Government or any Permitted Designee or Provider
is a party;
(xii) There has occurred a failure to meet a condition precedent or
series of conditions precedent or any other requirements or conditions
in connection with MCC Disbursement as set out in and in accordance
with any Supplemental Agreement between the Parties; or
(xiii) Any MCC Funding, Accrued Interest or Program Asset becomes
subject to a Lien without the prior approval of MCC, and the Government
fails to obtain the release of such Lien (at its own expense and not
with MCC Funding, Accrued Interest, or Program Assets) within thirty
(30) days after the imposition of such Lien.
(c) MCC may reinstate any suspended or terminated MCC Funding under
this
[[Page 48661]]
Compact or any Supplemental Agreement if MCC determines, in its sole
discretion, that the Government or other relevant party has
demonstrated a commitment to correcting each condition for which MCC
Funding was suspended or terminated.
(d) The authority to suspend or terminate this Compact or any MCC
Funding under this Section 5.4 includes the authority to suspend or
terminate any obligations or sub-obligations relating to MCC Funding
under any Supplemental Agreement without any liability to MCC whatsoever.
(e) All MCC Disbursements and Re-Disbursements shall cease upon
expiration, suspension, or termination of this Compact; provided,
however, (i) reasonable expenditures for goods, services and works that
are properly incurred under or in furtherance of this Compact before
such expiration, suspension or termination of this Compact and (ii)
reasonable expenditures for goods and services (including certain
administrative expenses) properly incurred within one hundred and
twenty (120) days after such expiration, suspension or termination of
the Compact in connection with the winding up of the Program may be
paid from MCC Funding, provided, further, that, in cases described in
clauses (i) and (ii), the request for such payment shall be (A)
properly submitted within ninety (90) days after such expiration,
suspension or termination of the Compact and (B) subject to the prior
written consent of MCC.
(f) Other than the payments permitted pursuant to Section 5.4(e),
in the event of the suspension or termination of this Compact or any
Supplemental Agreement, in whole or in part, the Government, at MCC's
sole discretion, shall suspend, for the period of the suspension, or
terminate, or ensure the suspension or termination of, as applicable,
any obligation or sub-obligation of the Parties to provide financial or
other resources under this Compact or any Supplemental Agreement, or to
the suspended or terminated portion of this Compact or such
Supplemental Agreement, as applicable. In the event of such suspension
or termination, the Government shall use its best efforts to suspend or
terminate, or ensure the suspension or termination of, as applicable,
all such noncancelable commitments related to the suspended or
terminated MCC Funding. Any portion of this Compact or any such
Supplemental Agreement that is not suspended or terminated shall remain
in full force and effect.
(g) Upon the full or partial suspension or termination of this
Compact or any MCC Funding, MCC may, at its expense, direct that title
to Program Assets be transferred to MCC if such Program Assets are in a
deliverable state; provided, for any Program Asset(s) partially
purchased or funded (directly or indirectly) by MCC Funding, the
Government shall reimburse to a United States Government account
designated by MCC the cash equivalent of the portion of the value of
such Program Asset(s), such value as determined by MCC.
(h) Prior to the expiration of this Compact or upon termination of
this Compact, the Parties shall consult in good faith with a view to
reaching an agreement in writing on (i) the post-Compact Term treatment
of MiDA, (ii) the process for ensuring the refunds of MCC Disbursements
that have not yet been released from a Permitted Account through a
valid Re-Disbursement or otherwise committed in accordance with Section
5.4(e), or (iii) any other matter related to the winding up of the
Program and this Compact.
Section 5.5 Privileges and Immunities
MCC is an agency of the Government of the United States of America
and its personnel assigned to Ghana will be notified pursuant to the
Vienna Convention on Diplomatic Relations as members of the mission of
the Embassy of the United States of America. The Government shall
ensure that any personnel of MCC so notified, including individuals
detailed to or contracted by MCC, and the members of the families of
such personnel, while such personnel are performing duties in Ghana,
shall enjoy the privileges and immunities that are enjoyed by a member
of the United States Foreign Service, or the family of a member of the
United States Foreign Service so notified, as appropriate, of
comparable rank and salary of such personnel, if such personnel or the
members of the families of such personnel are not a national of, or
permanently resident in, Ghana.
Section 5.6 Attachments
Any annex, schedule, exhibit, table, appendix or other attachment
expressly attached hereto (collectively, the ``Attachments'') is
incorporated herein by reference and shall constitute an integral part
of this Compact.
Section 5.7 Inconsistencies
(a) Conflicts or inconsistencies between any parts of this Compact
shall be resolved by applying the following descending order of precedence:
(i) Articles I through V, and
(ii) Any Attachments.
(b) In the event of any conflict or inconsistency between this
Compact and any Supplemental Agreement between the Parties, the terms
of this Compact shall prevail. In the event of any conflict or
inconsistency between any Supplemental Agreement between the Parties
and any other Supplemental Agreement, the terms of the Supplemental
Agreement between the Parties shall prevail. In the event of any
conflict or inconsistency between Supplemental Agreements between any
parties, the terms of a more recently executed Supplemental Agreement
between such parties shall take precedence over a previously executed
Supplemental Agreement between such parties. In the event of any
inconsistency between a Supplemental Agreement between the Parties and
any Implementation Document, the terms of the relevant Supplemental
Agreement shall prevail.
Section 5.8 Indemnification
The Government shall indemnify and hold MCC and any MCC officer,
director, employee, Affiliate, contractor, agent or representative
(each of MCC and any such persons, an ``MCC Indemnified Party'')
harmless from and against, and shall compensate, reimburse and pay such
MCC Indemnified Party for, any liability or other damages which (a) are
directly or indirectly suffered or incurred by such MCC Indemnified
Party, or to which any MCC Indemnified Party may otherwise become
subject, regardless of whether or not such damages relate to any third-
party claim, and (b) arise from or as a result of the negligence or
willful misconduct of the Government, any Government Affiliate, MiDA or
any Permitted Designee, directly or indirectly connected with, any
activities (including acts or omissions) undertaken in furtherance of
this Compact; provided, however, the Government shall apply national
funds to satisfy its obligations under this Section 5.8 and no MCC
Funding, Accrued Interest, or Program Asset may be applied by the
Government in satisfaction of its obligations under this Section 5.8.
Section 5.9 Headings
The Section and Subsection headings used in this Compact are
included for convenience only and are not to be considered in
construing or interpreting this Compact.
Section 5.10 Interpretation
(a) Any reference to the term ``including'' in this Compact shall be
[[Page 48662]]
deemed to mean ``including without limitation'' except as expressly
provided otherwise.
(b) Any reference to activities undertaken ``in furtherance of this
Compact'' or similar language shall include activities undertaken by
the Government, any Government Affiliate, any Permitted Designee, any
Provider or any other third party receiving MCC Funding involved in
carrying out the purposes of this Compact or any Supplemental
Agreement, including their respective directors, officers, employees,
Affiliates, contractors, sub-contractors, grantees, sub-grantees,
representatives or agents, whether pursuant to the terms of this
Compact, any Supplemental Agreement or otherwise.
(c) References to ``day'' or ``days'' shall be calendar days unless
provided otherwise.
(d) Defined terms importing the singular also include the plural,
and vice versa.
Section 5.11 Signatures
A signature to this Compact or an amendment to this Compact
pursuant to Section 5.3 shall be delivered only as an original
signature. With respect to all other signatures, a signature delivered
by facsimile or electronic mail in accordance with Section 5.1 shall be
deemed an original signature, and the Parties hereby waive any
objection to such signature or to the validity of the underlying
document, certificate, notice, instrument or agreement on the basis of
the signature's legal effect, validity or enforceability solely because
it is in facsimile or electronic form. Without limiting the foregoing,
a signature on an audit report or a signature evidencing any
modification identified in Sections 2(b) and (4)(a)(iv) of Annex I,
Section 4 of Annex II or Section 5(c) Annex III shall be followed by an
original in overnight express mail. Such signature shall be accepted by
the receiving Party as an original signature and shall be binding on
the Party delivering such signature.
Section 5.12 Designation
MCC may designate any Affiliate, agent, or representative to
implement, in whole or in part, its obligations, and exercise any of
its rights, under this Compact or any Supplemental Agreement between
the Parties. MCC shall inform the Government of any such designation.
Section 5.13 Survival
Any Government Responsibilities, covenants, or obligations or other
responsibilities to be performed by the Government after the Compact
Term shall survive the termination or expiration of this Compact and
expire in accordance with their respective terms. Notwithstanding the
termination or expiration of this Compact, the following provisions
shall remain in force: Sections 2.2, 2.3, 2.5, 3.2, 3.3, 3.4, 3.5, 3.8,
3.9 (for one year), 3.12, 5.1, 5.2, 5.4(d), 5.4(e) (for one hundred and
twenty (120) days), 5.4(f), 5.4(g), 5.4(h), 5.5, 5.6, 5.7, 5.8, 5.9,
5.10, 5.11, 5.12, this Section 5.13, 5.14, and 5.15.
Section 5.14 Consultation
Either Party may, at any time, request consultations relating to
the interpretation or implementation of this Compact or any
Supplemental Agreement between the Parties. Such consultations shall
begin at the earliest possible date. The request for consultations
shall designate a representative for the requesting Party with the
authority to enter consultations and the other Party shall endeavor to
designate a representative of equal or comparable rank. If such
representatives are unable to resolve the matter within twenty (20)
days from the commencement of the consultations, then each Party shall
forward the consultation to the Principal Representative or such other
representative of comparable or higher rank. The consultations shall
last no longer than forty five (45) days from date of commencement. If
the matter is not resolved within such time period, either Party may
terminate this Compact pursuant to Section 5.4(a). The Parties shall
enter any such consultations guided by the principle of achieving the
Compact Goal in a timely and cost-effective manner and by the
principles of international law. Any dispute arising under or related
to this Compact shall be determined exclusively through the
consultation mechanism set forth in this Section 5.14.
Section 5.15 MCC Status
MCC is a United States Government corporation acting on behalf of
the United States Government in the implementation of this Compact. As
such, MCC has no liability under this Compact, is immune from any
action or proceeding arising under or relating to this Compact and the
Government hereby waives and releases all claims related to any such
liability. In matters arising under or relating to this Compact, MCC is
not subject to the jurisdiction of the courts or other body of Ghana or
any other jurisdiction and all disputes arising under or relating to
this Compact shall be determined in accordance with Section 5.14.
Section 5.16 Language
This Compact is prepared in English and in the event of any
ambiguity or conflict between this official English version and any
other version translated into any language for the convenience of the
Parties, this official English version shall prevail.
Section 5.17 Publicity; Information and Marking
The Government shall give appropriate publicity to this Compact as
a program to which the United States, through MCC, has contributed,
including by posting this Compact, and any amendments thereto, on the
Web site operated by MiDA (``MiDA Web site''), identifying Program
activity sites, and marking Program Assets; provided, any announcement,
press release or statement regarding MCC or the fact that MCC is
funding the Program or any other publicity materials referencing MCC,
including the publicity described in this Section 5.17, shall be
subject to prior approval by MCC and shall be consistent with any
instructions provided by MCC from time to time in relevant
Implementation Letters. Upon the termination or expiration of this
Compact, MCC may request the removal of, and the Government shall, upon
such request, remove, or cause the removal of, any such markings and
any references to MCC in any publicity materials or on the MiDA Web
site. MCC may post this Compact, and any amendments thereto, on the Web
site of MCC. MCC shall have the right to use any information or data
provided in any report or document provided to MCC for the purpose of
satisfying MCC reporting requirements or in any other manner.
In Witness Whereof, the undersigned, duly authorized by their
respective governments, have signed this Compact this 1st day of
August, 2006 and this Compact shall enter into force in accordance with
Section 1.3.
Done at Washington, DC, in English.
For the United States of America, acting through the Millennium
Challenge Corporation,
Name: John J. Danilovich,
Title: Chief Executive Officer.
For the Government of the Republic of Ghana,
Name: Dr. P. Kwesi Nduom,
Title: Minister of Public Sector Reform.
Exhibit A--Definitions
The following compendium of capitalized terms that are used herein
is provided for the convenience of the reader. To the extent that there
is a conflict or inconsistency between the definitions in this Exhibit
A and the
[[Page 48663]]
definitions elsewhere in the text of this Compact, the definition elsewhere
in this Compact shall prevail over the definition in this Exhibit A.
Accrued Interest shall have the meaning set forth in Section 2.1(c).
Act shall have the meaning set forth in Section 2.1(a)(iii).
Additional Representative shall have the meaning set forth in
Section 5.2.
ADR shall have the meaning set forth in Section 2(c)(ii) of
Schedule 1 to Annex I.
Affiliate means the affiliate of a party, which is a person or
entity that controls, is controlled by, or is under the same control as
the party in question, whether by ownership or by voting, financial or
other power or means of influence. References to Affiliate herein shall
include any of their respective directors, officers, employees,
affiliates, contractors, sub-contractors, grantees, sub-grantees,
representatives, and agents.
Afram Basin Zone shall have the meaning set forth in Section 1(a)
of Annex I.
Agriculture Project shall have the meaning set forth in the
Preamble to Schedule 1 to Annex I.
Agriculture Project Objective shall have the meaning set forth in
Section 1.1(a).
Attachments shall have the meaning set forth in Section 5.6.
Audit Guidelines shall have the meaning set forth in Section
3.8(d)(i).
Audit Plan shall have the meaning set forth in Section 3.8(d)(iii).
Auditor shall have the meaning set forth in Section 3(h) of Annex I.
Auditor/Reviewer Agreement shall have the meaning set forth in
Section 3(h) of Annex I.
Bank(s) means any bank holding a Permitted Account.
Bank Agreement shall have the meaning set forth in Section 4(d) of
Annex I.
Beneficiaries shall have the meaning set forth in Section 2(a) of
Annex III.
Bilateral Agreement shall have the meaning set forth in Section 2.6.
Board shall have the meaning set forth in Section 3(d)(i)(2) of
Annex I.
CEO shall have the meaning set forth in Section 3(d)(iii)(2) of
Annex I.
Chair shall have the meaning set forth in Section 3(d)(ii)(2)(A)(i)
of Annex I.
Civil Member shall have the meaning set forth in Section
3(d)(ii)(2)(A) of Annex I.
Civil Society Stakeholders shall have the meaning set forth in
Section 3(e)(iv) of Annex I.
Commercial Training Activity shall have the meaning set forth in
Section 2(a) of Schedule 1 to Annex I.
Community Services Activity shall have the meaning set forth in
Section 2(b) of Schedule 3 to Annex I.
Compact shall have the meaning set forth in the Preamble.
Compact Goal shall have the meaning set forth in Section 1.1.
Compact Goal Indicator shall have the meaning set forth in Section
2(a) of Annex III.
Compact Implementation Funding shall have the meaning set forth in
Section 2.1(a)(iii).
Compact Records shall have the meaning set forth in Section 3.8(b).
Compact Reports shall have the meaning set forth in Section
3(d)(ii)(3)(C) of Annex I.
Compact Term shall have the meaning set forth in Section 1.3.
Covered Provider shall have the meaning set forth in Section 3.8(d)(iv).
Credit Activity shall have the meaning set forth in Section 2(e) of
Schedule 1 to Annex I.
DACF shall have the meaning set forth in Section 2(b)(ii) of
Schedule 3 to Annex I.
Designated Rights and Responsibilities shall have the meaning set
forth in Section 3.2(c).
Detailed Budget shall have the meaning set forth in Section
4(a)(ii) of Annex I.
DFID shall have the meaning set forth in Section 4 of Schedule 2 to
Annex I.
DFR shall have the meaning set forth in Section 6 of Schedule 2 to
Annex I.
Disbursement Agreement shall have the meaning set forth in the
Preamble to Annex I.
DUR shall have the meaning set forth in Section 6 of Schedule 2 to
Annex I.
EIA shall have the meaning set forth in Section 6(b) of Annex I.
EMP shall have the meaning set forth in Section 6(b) of Annex I.
eNGO Invitee shall have the meaning set forth in Section
3(d)(ii)(2)(F) of Annex I.
Entry into Force shall have the meaning set forth in Section 1.3.
Environmental Guidelines shall have the meaning set forth in
Section 2.3(d).
EU shall have the meaning set forth in Section 1 of Schedule 1 to
Annex I.
Evaluation Component shall have the meaning set forth in Section 1
of Annex III.
Exempt Uses shall have the meaning set forth in Section 2.3(e)(ii).
FBOs shall have the meaning set forth in Section 2 of Schedule 1 to
Annex I.
Feeder Roads Activity shall have the meaning set forth in Section
2(f) of Schedule 1 to Annex I.
Ferry Activity shall have the meaning set forth in Section 2(c) of
Schedule 2 to Annex I.
Final Evaluation shall have the meaning set forth in Section 3(a)
of Annex III.
Financial Plan Annex shall have the meaning set forth in the
Preamble to Annex II.
Financial Services Activity shall have the meaning set forth in
Section 2(c) of Schedule 3 to Annex I.
Fiscal Accountability Plan shall have the meaning set forth in
Section 4(c) of Annex I.
Fiscal Agent shall have the meaning set forth in Section 3(g) of
Annex I.
Fiscal Agent Agreement shall have the meaning set forth in Section
3(g) of Annex I.
GDP shall have the meaning set forth in Section 1(a) of Annex I.
GHA shall have the meaning set forth in Section 6 of Schedule 2 to
Annex I.
Ghana means the Republic of Ghana.
Governance Agreement shall have the meaning set forth in Section 4.1(c).
Governing Document shall have the meaning set forth in Section
3(c)(i)(9) of Annex I.
Government shall have the meaning set forth in the Preamble.
Government Affiliate means an Affiliate, ministry, bureau,
department, agency, government, corporation or any other entity
chartered or established by the Government. References to Government
Affiliate shall include any of their respective directors, officers,
employees, affiliates, contractors, sub-contractors, grantees, sub-
grantees, representatives, and agents.
Government Member shall have the meaning set forth in Section
3(d)(ii)(2)(A) of Annex I.
Government Party shall have the meaning set forth in Section 3.8(e)(i).
Government Responsibilities shall have the meaning set forth in
Section 3.2(a).
GPRS shall have the meaning set forth in Section 1(a) of Annex I.
GRF shall have the meaning set forth in Section 6 of Schedule 2 to
Annex I.
Implementation Document shall have the meaning set forth in Section
3(a) of Annex I.
Implementation Letter shall have the meaning set forth in Section
3.5(a).
Implementing Entity shall have the meaning set forth in Section
3(f) of Annex I.
Implementing Entity Agreement shall have the meaning set forth in
Section 3(f) of Annex I.
Indicators shall have the meaning set forth in Section 2(a) of
Annex III.
Inspector General shall have the meaning set forth in Section
3.8(d)(i).
Interim Evaluations shall have the meaning set forth in Section
3(b) of Annex III.
[[Page 48664]]
Intervention Zone shall have the meaning set forth in Section 1(a)
of Annex I.
IPPC shall have the meaning set forth in Section 2(d) of Schedule 1
to Annex I.
Irrigation Activity shall have the meaning set forth in Section
2(b) of Schedule 1 to Annex I.
Land Activity shall have the meaning set forth in Section 2(c) of
Schedule 1 to Annex I.
LAP shall have the meaning set forth in Section 2(c) of Schedule 1
to Annex I.
Lien shall have the meaning set forth in Section 2.3(g).
Local Account shall have the meaning set forth in Section 4(d)(ii)
of Annex I.
M&E shall have the meaning set forth in Section 3 of Annex I.
M&E Annex shall have the meaning set forth in the Preamble to Annex III.
M&E Plan shall have the meaning set forth in Section 2(e) of Annex I.
Management shall have the meaning set forth in Section 3(d)(i)(2)
of Annex I.
Material Agreement shall have the meaning set forth in Section
3(c)(i)(4) of Annex I.
Material Re-Disbursement shall have the meaning set forth in
Section 3(c)(i)(7) of Annex I.
MCA shall have the meaning set forth in the Recitals.
MCA Eligibility Criteria shall have the meaning set forth in
Section 3.7.
MCC shall have the meaning set forth in the Preamble.
MCC Disbursement shall have the meaning set forth in Section 2.1(b)(i).
MCC Disbursement Request shall have the meaning set forth in
Section 4(b) of Annex I.
MCC Funding shall have the meaning set forth in Section 2.1(a).
MCC Indemnified Party shall have the meaning set forth in Section 5.8.
MCC Representative shall have the meaning set forth in Section
3(d)(ii)(2)(B)(i) of Annex I.
MiDA shall have the meaning set forth the Preamble to Annex I.
MiDA Web site shall have the meaning set forth in Section 5.17.
MOFA shall have the meaning set forth in Section 2(a)(i) of
Schedule 1 to Annex I.
Monitoring Component shall have the meaning set forth in Section 1
of Annex III.
MoT shall have the meaning set forth in Section 6 of Schedule 2 to
Annex I.
Multi-Year Financial Plan shall have the meaning set forth in
Section 4(a)(i) of Annex I.
Multi-Year Financial Plan Summary shall have the meaning set forth
in Section 1 to Annex II.
N1 Activity shall have the meaning set forth in Section 2(a) of
Schedule 2 to Annex I.
N1 Highway shall have the meaning set forth in Section 2 of
Schedule 2 to Annex I.
NGOs shall have the meaning set forth in Section 1(b) of Annex I.
Northern Zone shall have the meaning set forth in Section 1(a) of
Annex I.
Objective(s) shall have the meaning set forth in Section 1.1.
Objective Indicator shall have the meaning set forth in Section
2(a) of Annex III.
Observer shall have the meaning set forth in Section 3(d)(ii)(2)(B)
of Annex I.
Officer shall have the meaning set forth in Section 3(d)(iii)(1) of
Annex I.
Outcome shall have the meaning set forth in Section 2(a) of Annex III.
Outcome Indicator shall have the meaning set forth in Section 2(a)
of Annex III.
Party or Parties shall have the meaning set forth in the Preamble.
Permitted Account(s) shall have the meaning set forth in Section
4(d) of Annex I.
Permitted Designee shall have the meaning set forth in Section 3.2(c).
Pledge shall have the meaning set forth in Section 3(c)(i)(8) of
Annex I.
Post-Harvest Activity shall have the meaning set forth in Section
2(d) of Schedule 1 to Annex I.
PPB shall have the meaning set forth in Section 4 of Schedule 3 to
Annex I.
PRDs shall have the meaning set forth in Section 2(c)(ii) of
Schedule 1 to Annex I.
Principal Representative shall have the meaning set forth in
Section 5.2.
Procurement Agent shall have the meaning set forth in Section 3(i)
of Annex I.
Procurement Agent Agreement shall have the meaning set forth in
Section 3(i) of Annex I.
Procurement Agreement shall have the meaning set forth in Section
3.6(a).
Procurement Capacity Activity shall have the meaning set forth in
Section 2(a) of Schedule 3 to Annex I.
Procurement Guidelines shall have the meaning set forth in Section
3.6(a).
Procurement Plan shall have the meaning set forth in Section 3(i)
of Annex I.
Program shall have the meaning set forth in the Recitals.
Program Annex shall have the meaning set forth in the Preamble to
Annex I.
Program Assets shall have the meaning set forth in Section
2.3(e)(iii).
Program Objective shall have the meaning set forth in Section 1.1.
Project shall have the meaning set forth in Section 1.2.
Project Activity shall have the meaning set forth in Section 2(b)
of Annex I.
Project Objective shall have the meaning set forth in Section 1.1.
Proposal shall have the meaning set forth in the Recitals.
Provider shall have the meaning set forth in Section 2.4(b).
RAP shall have the meaning set forth in Section 6(b) of Annex I.
Re-Disbursement shall have the meaning set forth in Section 2.1(b)(ii).
Reviewer shall have the meaning set forth in Section 3(h) of Annex I.
RICU shall have the meaning set forth in Section 2(b)(i) of
Schedule 3 to Annex I.
RSDP shall have the meaning set forth in Section 1 of Schedule 2 to
Annex I.
Rural Development Project shall have the meaning set forth in the
Preamble to Schedule 3 to Annex I.
Rural Development Project Objective shall have the meaning set
forth in Section 1.1(c).
SEA shall have the meaning set forth in Section 6(a) of Annex I.
SMEs shall have the meaning set forth in Section 2(a)(ii) of
Schedule 1 of Annex I.
Southern Zone shall have the meaning set forth in Section 1(a) of
Annex I.
Special Account shall have the meaning set forth in Section 4(d)(i)
of Annex I.
Supplemental Agreement shall have the meaning set forth in Section
3.5(b).
Supplemental Agreement between the Parties means any agreement
between MCC on the one hand, and the Government, any Government
Affiliate or Permitted Designee on the other hand.
Supplemental Agreement Term Sheets shall have the meaning set forth
in Section 4.1(d).
Target shall have the meaning set forth in Section 2(a) of Annex III.
Tax(es) shall have the meaning set forth in Section 2.3(e)(i).
TIPCEE shall have the meaning set forth in Section 5 of Schedule 1
to Annex I.
TQM shall have the meaning set forth in Section 2 of Schedule 2 to
Annex I.
Transportation Project shall have the meaning set forth in the
Preamble to Schedule 2 to Annex I.
Transportation Project Objective shall have the meaning set forth
in Section 1.1(b).
Trunk Roads Activity shall have the meaning set forth in Section
2(b) of Schedule 2 to Annex I.
[[Page 48665]]
United States Dollars, US$ or $ shall have the meaning set forth in
Section 2.1(d).
United States Government means any branch, agency, bureau,
government corporation, government chartered entity or other body of
the Federal government of the United States.
USAID shall have the meaning set forth in Section 5 of Schedule 1
to Annex I.
VLTC shall have the meaning set forth in Section 2 of Schedule 2 to
Annex I.
Work Plan shall have the meaning set forth in Section 3(a) of Annex I.
Zonal Advisory Committee shall have the meaning set forth in
Section 3(e)(i) of Annex I.
Exhibit B--List of Certain Supplemental Agreements
1. Fiscal Agent Agreement.
2. Procurement Agent Agreement.
3. Bank Agreement.
4. Implementing Entity Agreement.
Schedule 2.1(a)(iii)--Compact Implementation Funding
The Compact Implementation Funding provided pursuant to Section
2.1(a)(iii) of this Compact shall support the following activities:
(a) Three strategic environmental assessments, one for each
Intervention Zone in connection with the requirements of Section 6 of
Annex I.
(b) Development or refinement of FBO and staple food and
horticulture crop curriculum (including production of materials) and
related training and certification of MOFA and private sector extension
agents, training in set-up and launching of effective technology
demonstrations, and related international tours, all in connection with
the Commercial Training Activity under Section 2(a) of Schedule 1 of
Annex I.
(c) Community sensitization and information gathering, inventorying
of land rights, and production of composite maps of community
boundaries and parcels in the rural areas of Awutu Efutu Senya to pre-
test the first steps in the pilot land registration activity,
accompanied by a gender consultant to provide guidance on gender issues
and women's participation, and coordinated by a supervisory consultant,
in connection with the Land Activity under Section 2(c) of Schedule 1
of Annex I.
(d) A feasibility study; and an EIA, an EMP and a RAP, each as may
be necessary, and design, in connection with the Feeder Roads Activity
under Section 2(f)(ii)(1) of Schedule 1 of Annex I.
(e) A feasibility study; and an EIA, an EMP and a RAP, each as may
be necessary, and design, in connection with the N1 Activity under
Section 2(a)(ii)(1) of Schedule 2 of Annex I.
(f) A feasibility study; and an EIA, an EMP and a RAP, each as may
be necessary, and design, in connection with the Trunk Roads Activity
under Section 2(b)(ii)(2) of Schedule 2 of Annex I.
(g) A feasibility study; and an EIA, an EMP and a RAP, each as may
be necessary, and design, in connection with the Ferry Activity under
Section 2(c)(vii)(1) of Schedule 2 of Annex I.
(h) Start-up costs such as staff salaries and administrative
support expenses of MiDA (or mutually acceptable Government Affiliate)
such as rent, computers and other information technology or capital
equipment.
The total amount of funds disbursed in accordance with Section
2.1(a)(iii) shall not exceed the amount set forth in Section 2.1(a)(iii).
Annex I--Program Description
This Annex I to the Compact (the ``Program Annex'') generally
describes the Program that MCC Funding will support in Ghana during the
Compact Term and the results to be achieved from the investment of MCC
Funding. Prior to any MCC Disbursement or Re-Disbursement, including
for the Projects described herein, MCC, the Government (or a mutually
acceptable Government Affiliate) and Millennium Development Authority
(``MiDA'') shall enter into a Supplemental Agreement that (i) further
specifies the terms and conditions of such MCC Disbursements and Re-
Disbursements, (ii) is in a form and substance mutually satisfactory to
the Parties and (iii) is signed by the Principal Representative of each
Party (or in the case of a Government Affiliate, the principal
representative of such Government Affiliate) and of MiDA (the
``Disbursement Agreement'').
Except as specifically provided herein, the Parties may amend this
Program Annex only by written agreement signed by the Principal
Representative of each Party. Each capitalized term in this Program
Annex shall have the same meaning given such term elsewhere in this
Compact. Unless otherwise expressly stated, each Section reference
herein is to the relevant Section of the main body of the Compact.
1. Background and Ghana Development Strategy; Consultative Process
(a) Background; Ghana Development Strategy. Bordering the Gulf of
Guinea and located between C[ocirc]te d'Ivoire and Togo, Ghana is a
West African country of 22 million people. Approximately a third of its
population lives in poverty. Its gross domestic product (``GDP'') is
growing at about 6% per year. Ghana's agricultural sector, the backbone
of its economy, plays an important role in the socio-economic
development of the country by ensuring food security for its people,
providing raw material for local industries and offering employment and
income for a large portion of its population.
In 2003, the Government developed, through a broad consultative
process, the Ghana Poverty Reduction Strategy (the ``GPRS''), a
comprehensive development policy framework to support poverty reduction
in Ghana over a three-year period from 2003 to 2005. The GPRS
identified, as one of the key strategies for poverty reduction,
increasing the production from, and employment in, the agricultural
sector. Specifically, the strategy entailed, among others, modernizing
the agricultural practices so as to increase the production of staple
crops and to encourage additional agro-processing and value-added
production of high-value agricultural crops, while at the same time
reforming the land acquisition process. The GPRS indicated that such
modernization efforts should be supported by developing both
transportation and social infrastructure targeted on certain areas of
the country in order to ensure the enhanced delivery of educational,
health and other social services to such areas.
Consistent with the aims of the GPRS, the Program consists of a
series of strategic investments in an effort to modernize Ghana's
agricultural sector, together with investments in developing
transportation infrastructure and rural institutions in the following
three areas of the country (each, an ``Intervention Zone''): \1\
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\1\ Some of the N1 Activity will take place in the district of Ga West.
---------------------------------------------------------------------------
? The Northern area consisting of the following five
districts: Savelugu Nanton, Tolon Kumbungu, Tamale, West Mamprusi and
Karaga (the ``Northern Zone'');
? The Afram Basin area consisting of the following six
districts: Ejura Sekyedumasi, Kwahu South, Fanteakwa, Afram Plains,
Sekyere East and Sekyere West (the ``Afram Basin Zone''); and
? The Southern Horticultural Belt area consisting of the
following twelve districts: Gomoa, Awutu Efutu Senya, Akuapim South,
Manya Krobo, Dangme West, Yilo Krobo, North Dayi, Hohoe, Ketu, Keta,
South Tongu and Akatsi (the ``Southern Zone'').
[[Page 48666]]
(b) Consultative Process. In order to develop the Proposal,
beginning in 2004, the Government held a series of consultations with
various stakeholders at both the national and local levels, in which
numerous policymakers, farmers, FBOs, exporters, industry associations,
environmental organizations, gender organizations, the media, and other
civil society groups participated. The objective of the consultations
was the selection, as well as the prioritization, of the proposed
interventions under the MCA assistance that are consistent with the
GPRS and complement existing donor-supported and government-funded
programs for poverty reduction in Ghana.
These consultations revealed that the proposed interventions should
primarily target the agricultural sector, with a special focus on the
production of high-value crops for exports. Subsequently, the
Government formed a team of managers and sector experts to develop
further the details of the proposed interventions.
As the proposed interventions became better defined, additional
consultations with the stakeholders were held in each district within
each Intervention Zone to discuss the exact type of the interventions,
their locations, the arrangements for their implementations as well as
the ownership structure for certain infrastructure resulting from the
interventions. The non-governmental organizations (``NGOs'')
representing the environmental and social sector participated in the
early rounds of these additional consultations and influenced the
design of the interventions eventually included in the Proposal. During
MCC's due diligence of the Proposal, the Government made additional
efforts to consult the various NGOs representing the environment and
social sector as well as the farmers and FBOs. MCC observed the
consultations both at the local level and the national level. This
consultative process is still ongoing, and is expected to continue
through the Compact Term.
2. Overview
(a) Program Objective. The Program consists of a series of specific
and complementary Projects that the Parties expect will achieve the
two-fold Program Objective, thus advancing the Compact Goal.
Specifically, the two-fold Program Objective is, first, to increase the
production and productivity of high-value cash and food staple crops in
the three Intervention Zones and, second, to enhance the
competitiveness of Ghana's agricultural products in both regional and
international markets. To this end, the Program aims to strengthen the
contribution of other agricultural sub-sectors to the growth of the
economy and to reduce, through diversification, risks of not achieving
consistently strong agricultural performance. As such, the Program
Objective is fully consistent with, and directly supports, the GPRS.
(b) Projects. The Parties have identified the Projects that the
Government will implement, or cause to be implemented, using MCC
Funding to advance each Project Objective. Each Project is described in
the Schedules to this Program Annex. The Schedules to this Program
Annex also identify one or more of the activities that will be
undertaken in furtherance of each Project (each, a ``Project
Activity'') as well as the various activities within each Project
Activity. Notwithstanding anything to the contrary in this Compact, the
Parties may agree to modify, amend, terminate or suspend these Projects
or to create a new project by written agreement signed by the Principal
Representative of each Party without amending this Compact; provided,
however, any such modification or amendment of a Project or creation of
a new project is (i) consistent with the Objectives; (ii) does not
cause the amount of MCC Funding to exceed the aggregate amount
specified in Section 2.1(a) of this Compact; (iii) does not cause the
Government's responsibilities or contribution of resources to be less
than specified in Section 2.2 of this Compact or elsewhere in this
Compact; and (iv) does not extend the Compact Term.
(c) Beneficiaries. The intended beneficiaries of each Project are
described in the respective Schedule to this Program Annex and Annex
III to the extent identified as of the date hereof. The intended
beneficiaries shall be identified more precisely during the initial
phases of implementation of the Program. The Government shall provide
to MCC information on the population of the areas in which the Projects
will be active, disaggregated by gender, income level and age. The
Parties shall agree upon the description of the intended beneficiaries
and the Parties will make publicly available a more detailed
description of the intended beneficiaries of the Program, including
publishing such description on the MiDA Web site.
(d) Civil Society. Civil society shall participate in overseeing
the implementation of the Program through its representation on the
Board and the three Zonal Advisory Committees (which will include
representatives from NGOs and private sector entities), as provided in
Section 3(d) and Section 3(e), respectively, of this Program Annex. In
addition, ongoing consultations with the civil society regarding the
manner in which each Project is being implemented will take place
throughout the Compact Term.
(e) Monitoring and Evaluation. Annex III of this Compact generally
describes the plan to measure and evaluate progress toward achievement
of the Compact Goal and Objectives (the ``M&E Plan''). As outlined in
the Disbursement Agreement and other Supplemental Agreements, continued
disbursement of MCC Funding under this Compact (whether as MCC
Disbursements and Re-Disbursements) shall be contingent, among others,
on successful achievement of certain targets as set forth in the M&E Plan.
3. Implementation Framework
The implementation framework and the plan for ensuring adequate
governance, oversight, management, monitoring and evaluation (``M&E'')
and fiscal accountability for the use of MCC Funding is summarized
below and in the Schedules attached to this Program Annex, and as may
otherwise be agreed in writing by the Parties.
(a) General. The elements of the implementation framework will be
further described in the relevant Supplemental Agreements and in a set
of detailed documents for the implementation of the Program, consisting
of (i) a Multi-Year Financial Plan, (ii) a Fiscal Accountability Plan,
(iii) a Procurement Plan, (iv) an M&E Plan and (v) a Work Plan (each,
an ``Implementation Document''). MiDA shall adopt each Implementation
Document in accordance with the requirements and timeframe as may be
specified in this Program Annex, the Disbursement Agreement or as may
otherwise be agreed by the Parties from time to time. MiDA may amend
any Implementation Document without amending this Compact, provided
that any material amendment of such Implementation Document has been
approved by MCC and is otherwise consistent with the requirements of
this Compact and any relevant Supplemental Agreement. By such time as
may be specified in the Disbursement Agreement, or as may otherwise be
agreed by the Parties from time to time, MiDA shall adopt a work plan
for the overall administration of the Program (the ``Work Plan''). The
Work Plan shall set forth, with respect to (i) the administration of
the Program, (ii) the monitoring and evaluation of the Program, and
(iii) the implementation of each Project: (1) Each activity to be
undertaken or funded by MCC Funding
[[Page 48667]]
(to the level of detail mutually acceptable to MiDA and MCC), (2) the
Detailed Budget, and (3) where appropriate, the allocation of roles and
responsibilities for specific activities, other programmatic
guidelines, performance requirements, targets, and other expectations
related thereto.
(b) Government.
(i) The Government shall promptly take all necessary and
appropriate actions to carry out the Government Responsibilities and
other obligations or responsibilities of the Government under and in
furtherance of this Compact, including undertaking or pursuing such
legal, legislative or regulatory actions or procedural changes and
contractual arrangements as may be necessary or appropriate to achieve
the Objectives, to successfully implement the Program, to designate any
rights or responsibilities to any Permitted Designee, and to establish
MiDA, which shall be a Permitted Designee and shall be responsible for
the oversight and management of the implementation of this Compact on
behalf of the Government. The Government shall promptly deliver to MCC
certified copies of any documents, orders, decrees, laws or regulations
evidencing such legal, legislative, regulatory, procedural, contractual
or other actions.
(ii) The Government shall ensure that MiDA is duly authorized and
organized, sufficiently staffed and empowered to carry out fully the
Designated Rights and Responsibilities. Without limiting the generality
of the preceding sentence, MiDA shall be organized, and have such roles
and responsibilities, as described in Section 3(d) of this Program
Annex and as provided in any Governing Documents; provided, however,
the Government or another Permitted Designee may, subject to MCC
approval, carry out any of the roles and responsibilities designated to
be carried out by MiDA and described in Section 3(d) of this Program
Annex or elsewhere in this Program Annex, any Governing Document or any
other Supplemental Agreement prior to and during the initial period of
the establishment and staffing and operational formation of MiDA, but
in no event longer than the earlier of (1) the formation and convening
of organizational meetings of the Board and the formation and
operational establishment of MiDA (including the selection and
engagement of Officers and other key employees) and (2) three months
from the Entry into Force, unless otherwise agreed by the Parties in
writing.
(c) MCC.
(i) Notwithstanding Section 3.1 of this Compact or any provision in
this Program Annex to the contrary, and except as may be otherwise
agreed upon by the Parties from time to time, MCC must approve in
writing each of the following transactions, activities, agreements and
documents prior to the execution or carrying out of such transaction,
activity, agreement or document and prior to MCC Disbursements or Re-
Disbursements in connection therewith:
(1) MCC Disbursements;
(2) Each Implementation Document (including each component thereto)
and any material amendments and supplements thereto;
(3) Any Audit Plan;
(4) Agreements (i) between the Government and MiDA, (ii) between
the Government, a Government Affiliate, MiDA or any other Permitted
Designee, on the one hand, and any Provider or Affiliate of a Provider,
on the other hand, which require such MCC approval under applicable
law, the Procurement Agreement, any Governing Document, or any other
Supplemental Agreement or (iii) in which the Government, a Government
Affiliate, MiDA or any other Permitted Designee appoints, hires, or
engages any of the following in furtherance of this Compact:
(A) Auditor;
(B) Reviewer;
(C) Fiscal Agent;
(D) Procurement Agent;
(E) Bank;
(F) Implementing Entity; and
(G) A member of the Board (including any Observer), any Officer or
any other key employee of MiDA (including agreements involving the
terms of any compensation for any such person). (Any agreement
described in clause (i) through (iii) of this Section 3(c)(i)(4) of
this Program Annex and any amendments and supplements thereto, each, a
``Material Agreement'');
(5) Any modification, termination or suspension of a Material
Agreement, or any action that would have the effect of such a
modification, termination or suspension of a Material Agreement;
(6) Any agreement that is (A) not at arm's length or (B) with a party
related to the Government, MiDA or any of their respective Affiliates;
(7) Any Re-Disbursement (each, a ``Material Re-Disbursement'') that
requires such MCC approval under applicable law, any Governing
Document, or any other Supplemental Agreement;
(8) Any pledge of any MCC Funding or any Program Assets, or any
guarantee, directly or indirectly, of any indebtedness (each, a ``Pledge'');
(9) Any decree, legislation, regulation, contractual arrangement
(including the Governance Agreement and the Millennium Development
Authority Act of 2006 (Act 702)), or other charter document
establishing or governing MiDA (each, a ``Governing Document'');
(10) Any disposition, in whole or in part, liquidation,
dissolution, winding up, reorganization or other change of (A) MiDA,
including any revocation or modification of or supplement to any
Governing Document related thereto, or (B) any subsidiary or Affiliate
of MiDA;
(11) Any change in character or location of any Permitted Account;
(12) Formation or acquisition of any direct or indirect subsidiary,
or other Affiliate, of MiDA;
(13)(A) Any change of any member of the Board (including any
Observer), of the member serving as the Chair or in the composition or
size of the Board, and the filling of any vacant seat of any member of
the Board (including any Observer), (B) any change of any Officer or
other key employee of MiDA or in the composition or size of the
Management, and the filling of any vacant position of any Officer or
other key employee of MiDA, and (C) any material change in the
composition or size of any Zonal Advisory Committee;
(14) Any decision by MiDA to engage, to accept or to manage any
funds from any donor agencies or organizations in addition to MCC
Funding during the Compact Term;
(15) Any decision to amend, supplement, replace, terminate, or
otherwise change any of the foregoing; and
(16) Any other activity, agreement, document or transaction
requiring the approval of MCC in this Compact, applicable law, any
Governing Document, the Procurement Agreement, the Disbursement
Agreement, or any other Supplemental Agreement between the Parties.
(ii) MCC shall have the authority to exercise its approval rights
set forth in this Section 3(c) of this Program Annex in its sole
discretion and independent of any participation or position taken by
the MCC Representative at a meeting of the Board. MCC retains the right
to revoke its approval of any matter, agreement, or action if MCC
concludes, in its sole discretion, that its approval was issued on the
basis of incomplete, inaccurate or misleading information furnished by
the Government, any Government Affiliate, MiDA or any other Permitted
Designee. Notwithstanding any provision in this Compact or any
Supplemental Agreement to the contrary, the exercise by MCC of its
approval rights under this Compact or any Supplemental Agreement shall
not (1) diminish or
[[Page 48668]]
otherwise affect the Government Responsibilities or any other
obligations or responsibilities of the Government under this Compact or
any Supplemental Agreement, (2) transfer any such obligations or
responsibilities of the Government, or (3) otherwise subject MCC to any
liability.
(d) MiDA.
(i) General. Unless otherwise agreed by the Parties in writing,
MiDA shall, as a Permitted Designee, be responsible for the oversight
and management of the implementation of this Compact. MiDA shall be
governed by applicable law and the Governing Documents, each such
Governing Document to be in form and substance satisfactory to MCC and
effective on or before the time specified in the Disbursement
Agreement, and based on the following principles:
(1) The Government shall ensure that MiDA shall not assign,
delegate or contract any of the Designated Rights and Responsibilities
without the prior written consent of the Government and MCC. MiDA shall
not establish any Affiliates or subsidiaries (direct or indirect)
without the prior written consent of the Government and MCC.
(2) Unless otherwise agreed by the Parties in writing, MiDA shall
consist of (A) an independent board of directors (the ``Board'') to
oversee MiDA's responsibilities and obligations under this Compact
(including any Designated Rights and Responsibilities) and (B) a
management unit (the ``Management'') to have overall management
responsibility for the implementation of this Compact.
(ii) Board.
(1) Formation. The Government shall ensure that the Board shall be
formed, constituted, governed and operated in accordance with the terms
and conditions set forth in the Governing Documents and any
Supplemental Agreement.
(2) Composition. Unless otherwise agreed by the Parties in writing,
the Board shall consist of at least nine (9) but no more than eleven
(11) voting members and four (4) non-voting observers identified below.
(A) The Board shall initially be composed of nine (9) voting
members as follows, provided that the members identified in subsections
(i)-(vi) below (each, a ``Government Member,'' and each of the other
voting members, a ``Civil Member'') may be replaced by another
government official from a ministry or other government body relevant
to the Program activities pursuant to the Governing Documents, subject
to approval by MCC (such replacement to be referred to thereafter as a
Government Member):
(i) Dr. P. Kwesi Nduom, the incumbent Minister of the Ministry of
Public Sector Reform, appointed as the chair (``Chair'') as provided in
the Governing Documents;
(ii) The Minister, or any other government official of the rank of
director or higher, from the Ministry of Food and Agriculture,
initially to be the Minister of Food and Agriculture;
(iii) The Minister, or any other official of the rank of director
or higher, from the Ministry of Trade, Industry, Private Sector and
Presidential Special Initiatives, initially to be the Minister of
Trade, Industry, Private Sector and Presidential Special Initiatives;
(iv) The Minister, or any other official of the rank of director or
higher, from the Ministry of Local Government, Rural Development and
Environment, initially to be the Minister of Local Government, Rural
Development and Environment;
(v) The Minister, or any other official of the rank of director or
higher, from the Ministry of Finance and Economic Planning, initially
to be the Minister of Finance and Economic Planning;
(vi) The CEO;
(vii) Two representatives, each selected by the Private Enterprise
Foundation; and (viii) A representative, selected by the Ghana
Association of Private Voluntary Organizations in Development.
(B) The non-voting observers of the Board (each, an ``Observer'')
shall be:
(i) A representative designated by MCC (the ``MCC
Representative''); and
(ii) Three representatives, each selected by lot by the district
assemblies within each Intervention Zone.
(C) Each Government Member position (other than the Chair) shall be
filled by the individual, during the Compact Term, holding the office
identified and all Government Members (including the Chair) shall serve
in their capacity as the applicable Government officials and not in
their personal capacity.
(D) The voting members identified in Section 3(d)(ii)(2)(A) of this
Program Annex, by majority vote, may alter the size of the Board in
accordance with the Governing Documents so long as the total does not
exceed eleven (11) members.
(E) Each Observer shall have rights to attend all meetings of the
Board, participate in the discussions of the Board, and receive all
information and documents provided to the Board, together with any
other rights of access to records, employees or facilities as would be
granted to a member of the Board under the Governing Documents.
(F) The Board shall, pursuant to the Governing Documents, invite a
representative selected by the registered NGOs representing the
environmental community (the ``eNGO Invitee'') to all meetings of the
Board, and the eNGO Invitee shall receive all information and documents
provided to the Board as more specifically provided in the Governance
Agreement.
(G) The voting members identified in Section 3(d)(ii)(2)(A) of this
Program Annex shall exercise their duties solely in accordance with the
best interests of MiDA, the Program and the Objectives, and shall not
undertake any action that is contrary to those interests or would
result in personal gain or a conflict of interest.
(3) Roles and Responsibilities.
(A) The Board shall oversee the Management, the overall
implementation of the Program, and the performance of the Designated
Rights and Responsibilities.
(B) Certain actions may be taken and certain agreements, documents
or instruments executed and delivered, as the case may be, by MiDA only
upon the approval and authorization of the Board as provided under
applicable law or as set forth in any Governing Document, including
each MCC Disbursement Request, selection or termination of certain
Providers and any Implementation Document.
(C) The Chair, unless otherwise provided in the applicable
Governing Documents, shall certify any documents or reports delivered
to MCC in satisfaction of the Government's reporting requirements under
this Compact or any Supplemental Agreement between the Parties (the
``Compact Reports'') or any other documents or reports from time to
time delivered to MCC by MiDA (whether or not such documents or reports
are required to be delivered to MCC), and that such documents or
reports are true, correct and complete.
(D) Without limiting the generality of the Designated Rights and
Responsibilities that the Government may designate to MiDA, and subject
to MCC's contractual rights of approval as set forth in Section 3(c) of
this Program Annex, elsewhere in this Compact or any Supplemental
Agreement, the Board shall have the exclusive authority as between the
Board and the Management for all actions defined for the Board in any
Governing Document and which are expressly designated therein as
responsibilities that cannot be delegated further.
(4) Indemnification of Civil Members, Observers, and Officers. The
Government shall ensure, at the Government's sole cost and expense,
that appropriate insurance is obtained
[[Page 48669]]
and appropriate indemnifications and other protections are provided,
acceptable to MCC and to the fullest extent permitted under the laws of
Ghana, to ensure that (A) Civil Members and Observers shall not be held
personally liable for the actions or omissions of the Board or MiDA and
(B) Officers shall not be held personally liable for the actions or
omissions of the Board, MiDA or actions or omissions of the Officer so
long as properly within the scope of Officer's authority. Pursuant to
Section 5.5 and Section 5.8 of this Compact, the Government and MiDA
shall hold harmless the MCC Representative for any liability or action
arising out of the MCC Representative's role as an Observer on the
Board. The Government hereby waives and releases all claims related to
any such liability and acknowledges that the MCC Representative has no
fiduciary duty to MiDA. In matters arising under or relating to the
Compact, the MCC Representative is not subject to the jurisdiction of
the courts or any other body of Ghana. MiDA shall provide a written
waiver and acknowledgement that no fiduciary duty to MiDA is owed by
the MCC Representative.
(iii) Management. Unless otherwise agreed in writing by the
Parties, the Management shall report, through the CEO or other Officer
as designated in any Governing Document, directly to the Board and
shall have the composition, roles and responsibilities described below
and set forth more particularly in the Governing Documents.
(1) Composition. The Government shall ensure that the Management
shall be composed of qualified experts from the public or private
sectors, including such offices and staff as may be necessary to carry
out effectively its responsibilities, each with such powers and
responsibilities as set forth in the Governing Documents, and from time
to time in any Supplemental Agreement between the Parties, including
without limitation the following: (A) CEO; (B) Internal Auditor; (C)
Legal Counsel; (D) Director of the Agricultural Transformation Program;
(E) Director of Procurement; (F) Director of Monitoring and Evaluation;
(G) Director of Finance and Administration; (H) Director of
Environmental and Social Impact; and (I) Director of Community and
Public Outreach. The Management shall also include: (J)
Commercialization of Agriculture Project Manager, (K) Community
Services Project Manager, (L) Transportation and Agricultural
Infrastructure Project Manager, and (M) Land Administration Project
Manager, each of whom shall report to the Director of Agricultural
Transformation Program and (N) Agricultural Financial Services and Bank
Capacity Building Manager, who shall report to the Commercialization of
Agriculture Project Manager. Each person holding the position in any of
the sub-clauses (A) through (N), and such other offices as may be
created and designated in accordance with any Governing Document and
any Supplemental Agreement, shall be referred to as an ``Officer.'' The
Management shall be supported by appropriate administrative and support
personnel consistent with the Detailed Budget for Program
administration and any Implementation Document.
(2) Appointment of Officers. The Chief Executive Officer (``CEO'')
of MiDA shall be selected after an open and competitive recruitment and
selection process, and appointed in accordance with the Governing
Documents, which appointment shall be subject to MCC approval. Such
appointment shall be further evidenced by such document as the Parties
may agree. Unless otherwise specified in the Governing Documents, the
Officers of MiDA other than the CEO shall be selected and hired by the
Board after an open and competitive recruitment and selection process,
and appointed in accordance with the Governing Documents, which
appointment shall be subject to MCC approval. Such appointment shall be
further evidenced by such document as the Parties may agree.
(3) Roles and Responsibilities.
(A) Management shall assist the Board in overseeing the
implementation of the Program and shall have principal responsibility
(subject to the direction and oversight of the Board and subject to
MCC's contractual rights of approval as set forth in Section 3(c) of
this Program Annex or elsewhere in this Compact or any Supplemental
Agreement) for the overall management of the implementation of the Program.
(B) Without limiting the foregoing general responsibilities or the
generality of Designated Rights and Responsibilities that the
Government may designate to MiDA, Management shall develop each
Implementation Document, oversee the implementation of the Projects,
manage and coordinate monitoring and evaluation, ensure compliance with
the Fiscal Accountability Plan, and such other responsibilities as set
out in the Governing Documents or otherwise delegated to Management by
the Board from time to time.
(C) Appropriate Officers as designated in the Governing Documents
shall have the authority to contract on behalf of MiDA under any
procurement undertaken in accordance with the Procurement Agreement
(including the Procurement Guidelines) in furtherance of the Program.
(D) Management shall have the obligation and right to approve
certain actions and documents or agreements, including certain Re-
Disbursements, MCC Disbursement Requests, Compact Reports, certain
human resources decisions and certain other actions, as provided in the
Governing Documents.
(e) Zonal Advisory Committees.
(i) Formation. The Government shall ensure the establishment of
three (3) zonal advisory committees with governmental representatives
(each, a ``Zonal Advisory Committee''), each representing one of the
three Intervention Zones.
(ii) Composition. Each Zonal Advisory Committee shall be comprised,
unless otherwise agreed by the Parties, of the following members: (A) A
district planning officer from each district within the applicable
Intervention Zone; (B) a district director of agriculture from each
district within the applicable Intervention Zone; (C) a district chief
executive from each district within the applicable Intervention Zone;
(D) an elected representative from each district assembly from the
applicable Intervention Zone; and (E) a regional environmental officer
from each region within the applicable Intervention Zone. The
Government shall take all actions necessary and appropriate to ensure
that each Zonal Advisory Committee is established consistent with this
Section 3(e) of this Program Annex and as otherwise specified in the
Governing Documents or otherwise agreed in writing by the Parties. The
composition of each Zonal Advisory Committee may be adjusted by
agreement of the Parties from time to time to ensure, among others, an
adequate representation of the intended beneficiaries of the Program.
Each member position identified in this Section 3(e)(ii) of this
Program Annex shall be filled by the individual, during the Compact
Term, holding the office identified and such individual shall serve in
his capacity as the applicable Government official and not in his
personal capacity. In the event that such member is unable to
participate in a meeting of the respective Zonal Advisory Committee,
such member's deputy may participate in the member's stead.
(iii) Roles and Responsibilities. Each Zonal Advisory Committee
shall be a mechanism to provide representatives of the private sector,
civil society and local and regional governments the
[[Page 48670]]
opportunity to provide advice and input to MiDA regarding the
implementation of the Compact. At the request of each Zonal Advisory
Committee, MiDA shall provide such information and documents as it
deems advisable, subject to appropriate treatment of such information
and documents by the members of each Zonal Advisory Committee.
Specifically, during each meeting of each Zonal Advisory Committee,
MiDA shall present an update on the implementation of this Compact and
progress towards achievement of the Objectives. Each Zonal Advisory
Committee shall have an opportunity to provide regularly to MiDA its
views or recommendations on the performance and progress on the
Projects and Project Activities, any Implementation Document,
procurement, financial management or such other issues as may be
presented from time to time to each Zonal Advisory Committee or as
otherwise raised by each Zonal Advisory Committee.
(iv) Meetings. Each Zonal Advisory Committee shall hold at least
two meetings per year as well as such other periodic meetings of the
Zonal Advisory Committee or the respective subcommittees thereof,
designated along sectoral, regional, or other lines, as may be
necessary or appropriate from time to time. Representatives of the
FBOs, banking organizations, microfinance institutions, farmer
associations, horticultural product associations, women's associations,
chambers of commerce, anti-corruption associations, environmental and
social organizations (``Civil Society Stakeholders''), among others,
shall be provided timely advance notice of all such meetings, invited
to participate in all such meetings and afforded an opportunity during
each such meeting to present their views or recommendations to the
Zonal Advisory Committee.
(v) Accessibility; Transparency. The members of each Zonal Advisory
Committee shall be accessible to the beneficiaries they represent to
receive the beneficiaries' comments or suggestions regarding the
Program. The notices for, and the minutes (including the views or
recommendations of the Civil Society Stakeholders expressed) of all
meetings of, each Zonal Advisory Committee and any respective
subcommittees shall be made public on the MiDA Web site or otherwise
(including television, radio and print) in a timely manner.
(f) Implementing Entities. Subject to the terms and conditions of
this Compact and any other Supplemental Agreement between the Parties,
MiDA may provide MCC Funding, directly or indirectly through MiDA, to
one or more (i) pre-determined ministries, bureaus or agencies of the
Government based on their sector expertise or (ii) government bodies,
businesses, NGOs, vendors or contractors, selected according to the
Procurement Guidelines, to implement and carry out any Project, Project
Activity (or a component thereof), or any other activities to be
carried out in furtherance of this Compact (each, an ``Implementing
Entity''). The Government shall ensure that MiDA enters into an
agreement with each Implementing Entity, in form and substance
satisfactory to MCC, that sets forth the roles and responsibilities of
such Implementing Entity and other appropriate terms and conditions
(including the payment of the Implementing Entity, if any) (the
``Implementing Entity Agreement''). An Implementing Entity shall report
directly to the relevant Officer, as designated in the applicable
Implementing Entity Agreement or as otherwise agreed by the Parties.
(g) Fiscal Agent. The Government shall ensure that MiDA engages one
fiscal agent following an international competitive process (a ``Fiscal
Agent'') who shall be responsible for, among others: (i) Assisting MiDA
in preparing the Fiscal Accountability Plan; (ii) ensuring and
certifying that Re-Disbursements are properly authorized and documented
in accordance with established control procedures set forth in the
Disbursement Agreement, the Fiscal Agent Agreement and other relevant
Supplemental Agreements; (iii) Re-Disbursement from, and cash
management and account reconciliation of, any Permitted Account
established and maintained for the purpose of receiving MCC
Disbursements and making Re-Disbursements (to which Fiscal Agent has
sole signature authority); (iv) providing applicable certifications for
MCC Disbursement Requests; (v) maintaining and retaining proper
accounting, records and document disaster recovery system of all MCC
funded financial transactions and certain other accounting functions;
(vi) producing reports on MCC Disbursements and Re-Disbursements
(including any requests therefore) in accordance with established
procedures set forth in the Disbursement Agreement, the Fiscal Agent
Agreement, the Fiscal Accountability Plan, or any other relevant
Supplemental Agreements; (vii) assisting in the preparation of budget
development procedures; and (viii) internal management of the Fiscal
Agent operations. Upon the written request of MCC, the Government shall
ensure that MiDA terminates the Fiscal Agent, without any liability to
MCC, and the Government shall ensure that MiDA engages a new Fiscal
Agent, subject to the approval by the Board and MCC. The Government
shall ensure that MiDA enters into an agreement with each Fiscal Agent,
in form and substance satisfactory to MCC, that sets forth the roles
and responsibilities of the Fiscal Agent and other appropriate terms
and conditions, such as payment of the Fiscal Agent (each, a ``Fiscal
Agent Agreement''), such Fiscal Agent Agreement shall not be terminated
until MiDA has engaged a successor Fiscal Agent or as otherwise agreed
by MCC in writing.
(h) Auditors and Reviewers. The Government shall ensure that MiDA
carries out the Government's audit responsibilities as provided in
Sections 3.8(d), (e) and (f) of this Compact, including engaging one or
more auditors (each, an ``Auditor'') required by Section 3.8(d) of this
Compact. As requested by MCC in writing from time to time, the
Government shall ensure that MiDA also engages (i) an independent
reviewer to conduct reviews of performance and compliance under this
Compact pursuant to Section 3.8(f) of this Compact, which reviewer
shall have the capacity to (1) conduct general reviews of performance
or compliance, (2) conduct environmental audits and (3) conduct data
quality assessments in accordance with the M&E Plan, as described more
fully in Annex III, and/or (ii) an independent evaluator to assess
performance as required under the M&E Plan (each, a ``Reviewer''). MiDA
shall select the Auditor(s) or Reviewer(s) in accordance with any
Governing Document or other relevant Supplemental Agreement. The
Government shall ensure that MiDA enters into an agreement with each
Auditor or Reviewer, in form and substance satisfactory to MCC, that
sets forth the roles and responsibilities of the Auditor or Reviewer
with respect to the audit, review or evaluation, including access
rights, required form and content of the applicable audit, review or
evaluation and other appropriate terms and conditions such as payment
of the Auditor or Reviewer (the ``Auditor/Reviewer Agreement''). In the
case of a financial audit required by Section 3.8(f) of this Compact,
such Auditor/Reviewer Agreement shall be effective no later than one
hundred and twenty (120) days prior to the end of the relevant period
to be audited; provided, however, if MCC requires concurrent audits of
[[Page 48671]]
financial information or reviews of performance and compliance under
this Compact, then such Auditor/Reviewer Agreement shall be effective
no later than the date agreed by the Parties in writing.
(i) Procurement Agent. The Government shall ensure that MiDA
engages one or more procurement agents through an international
competitive process (each, a ``Procurement Agent'') to carry out and
certify specified procurement activities in furtherance of this Compact
on behalf of the Government, MiDA, or Implementing Entity. The roles
and responsibilities of such Procurement Agent and the criteria for
selection of a Procurement Agent shall be as set forth in the
applicable Implementation Letter or Supplemental Agreement. The
Government shall ensure that MiDA enters into an agreement with the
Procurement Agent, in form and substance satisfactory to MCC, that sets
forth the roles and responsibilities of the Procurement Agent with
respect to the conduct, monitoring and review of procurements and other
appropriate terms and conditions, such as payment of the Procurement
Agent (the ``Procurement Agent Agreement''). Any Procurement Agent
shall adhere to the procurement standards set forth in the Procurement
Agreement and Procurement Guidelines and ensure procurements are
consistent with the procurement plan adopted by MiDA pursuant to the
Procurement Agreement (the ``Procurement Plan'') unless MiDA and MCC
otherwise agree in writing.
4. Finances and Fiscal Accountability
(a) Multi-Year Financial Plan; Detailed Budget.
(i) Multi-Year Financial Plan. The multi-year financial plan for
the Program, showing the estimated amount of MCC Funding allocable to
each Project (and related Project Activities), the administration of
the Program (and its components) and the monitoring and evaluation of
the Program (the ``Multi-Year Financial Plan'') over the Compact Term
on an annual basis, is summarized in Annex II to this Compact.
(ii) Detailed Budget. During the Compact Term, the Government shall
ensure that MiDA timely delivers to MCC a detailed budget, at a level
of detail and in a format mutually acceptable to MiDA and MCC, for the
administration of the Program, monitoring and evaluation of the
Program, and the implementation of each Project (the ``Detailed
Budget''). The Detailed Budget shall be a component of the Work Plan
and shall be delivered by such time as specified in the Disbursement
Agreement, or as may otherwise be agreed by the Parties.
(iii) Expenditures. Unless the Parties otherwise agree in writing,
no financial commitment involving MCC Funding shall be made, no
obligation of MCC Funding shall be incurred, and no Re-Disbursement
shall be made or MCC Disbursement Request shall be submitted, for any
activity or expenditure unless the expense for such activity or
expenditure is provided for in the Detailed Budget, and unless
uncommitted funds exist in the balance of the Detailed Budget for the
relevant period.
(iv) Modifications to Multi-Year Financial Plan or Detailed Budget.
Notwithstanding anything to the contrary in this Compact, MiDA may
amend or supplement the Multi-Year Financial Plan, the Detailed Budget,
or any component thereof, without amending this Compact so long as MiDA
requests and receives the approval of MCC for such amendment or
supplement and such amendment or supplement is consistent with the
requirements of this Compact (including Section 4 of Annex II) and any
relevant Supplemental Agreement between the Parties. If such amendment
or supplement, if adopted, would reallocate the funds among the
Projects, the Project Activities, or any activity under Program
administration or M&E as shown in Annex II, MiDA shall submit a written
request for approval by MCC of such amendment or supplement. Any such
amendment or supplement shall (1) be consistent with the Objectives and
the Implementation Documents; (2) shall not materially adversely impact
the applicable Project, Project Activity (or any component thereof), or
any activity under Program administration or M&E as shown in Annex II;
(3) shall not cause the amount of MCC Funding to exceed the aggregate
amount specified in Section 2.1(a) of this Compact; and (4) shall not
cause the Government's obligations or responsibilities or overall
contribution of resources to be less than as specified in Section
2.2(a) of this Compact, this Annex I or elsewhere in this Compact. Upon
any such amendment or supplement, MiDA shall deliver to MCC a revised
Detailed Budget, together with a revised Multi-Year Financial Plan,
reflecting such amendment or supplement, along with the next MCC
Disbursement Request.
(b) Disbursement and Re-Disbursement. The Disbursement Agreement
(and any schedules thereto), as amended from time to time, shall
specify the terms, conditions and procedures on which MCC Disbursements
and Re-Disbursements shall be made. The obligation of MCC to make MCC
Disbursements or approve Re-Disbursements is subject to the
fulfillment, waiver or deferral of any such terms and conditions. The
Government and MiDA shall jointly submit the applicable request for an
MCC Disbursement (the ``MCC Disbursement Request'') as may be specified
in the Disbursement Agreement. MCC will make MCC Disbursements in
tranches to a Permitted Account from time to time as provided in the
Disbursement Agreement or as may otherwise be agreed by the Parties,
subject to Program requirements and performance by the Government, MiDA
and other relevant parties in furtherance of this Compact. Re-
Disbursements will be made from time to time based on requests by an
authorized representative of the appropriate party designated for the
size and type of Re-Disbursement in accordance with any Governing
Document and Disbursement Agreement; provided, however, unless
otherwise agreed by the Parties in writing, no Re-Disbursement shall be
made unless and until the written approvals specified herein or in any
Governing Document and Disbursement Agreement for such Re-Disbursement
have been obtained and delivered to the Fiscal Agent.
(c) Fiscal Accountability Plan. By such time as specified in the
Disbursement Agreement or as otherwise agreed by the Parties, MiDA
shall adopt, as part of the Implementation Documents, a plan that
identifies the principles, mechanisms and procedures to ensure
appropriate fiscal accountability for the use of MCC Funding provided
under this Compact, including the process to ensure that open, fair,
and competitive procedures will be used in a transparent manner in the
administration of grants or cooperative agreements and the procurement
of goods, works and services for the accomplishment of the Objectives
(the ``Fiscal Accountability Plan''). The Fiscal Accountability Plan
shall set forth, among others, requirements with respect to the
following matters: (i) Re-Disbursement, timely payment to vendors, cash
management and account reconciliation; (ii) funds control and
documentation; (iii) accounting standards and systems; (iv) content and
timing of reports; (v) preparing budget development procedures and the
Compact implementation budget; (vi) policies concerning records,
document disaster recovery, public availability of all
[[Page 48672]]
financial information and asset management; (vii) procurement and
contracting practices; (viii) inventory control; (ix) the role of
independent auditors; (x) the roles of fiscal agents and procurement
agents; (xi) separation of duties and internal controls; and (xii)
certifications, powers, authorities and delegations.
(d) Permitted Accounts. The Government shall establish, or cause to
be established, such accounts (each, a ``Permitted Account,'' and
collectively ``Permitted Accounts'') as may be agreed by the Parties in
writing from time to time, including:
(i) A single, completely separate United States Dollar interest-
bearing account (the ``Special Account'') at the Bank of Ghana to
receive MCC Disbursements;
(ii) If necessary, a local currency of Ghana account (interest-
bearing as appropriate and as further specified in the relevant
Supplemental Agreement) (the ``Local Account'') at the Bank of Ghana to
which the Fiscal Agent may authorize transfer from any United States
Dollar Permitted Account for the purpose of making Re-Disbursements
payable in local currency; and
(iii) Such other interest-bearing accounts to receive MCC
Disbursements in such banks as the Parties mutually agree upon in writing.
No other funds shall be commingled in a Permitted Account other
than MCC Funding and Accrued Interest thereon. All MCC Funding held in
an interest-bearing Permitted Account shall earn interest at a rate of
no less than such amount as the Parties may agree in the Bank Agreement
or otherwise. MCC shall have the right, among others, to view any
Permitted Account statements and activity directly on-line, where
feasible, or at such other frequency as the Parties may otherwise
agree. By such time as shall be specified in the Disbursement Agreement
or as otherwise agreed by the Parties, the Government shall ensure that
MiDA enters into an agreement with the Bank, satisfactory to MCC, that
sets forth the signatory authority, access rights, anti-money
laundering and anti-terrorist financing provisions, and other terms
related to the Permitted Account (the ``Bank Agreement'').
(e) Currency Exchange. The Bank shall convert MCC Funding to the
currency of Ghana at a rate to which the parties to the Bank Agreement
mutually agree, subject to MCC approval.
5. Transparency; Accountability
Transparency and accountability to MCC and to the beneficiaries are
important aspects of the Program and the Projects. Without limiting the
generality of the foregoing, and in an effort to achieve the goals of
transparency and accountability, the Government shall ensure that MiDA:
(a) Establishes an e-mail suggestion box as well as a means for
other written comments that interested persons may use to communicate
ideas, suggestions or feedback to MiDA;
(b) Considers as a factor in its decision-making the
recommendations of the Zonal Advisory Committees;
(c) Develops and maintains, in a timely, accurate and appropriately
comprehensive manner, the MiDA Web site that includes postings of
information and documents in English (and other languages where relevant);
(d) Posts on the MiDA Web site, and otherwise makes publicly
available via appropriate means (including television, radio and
print), in the appropriate language the following documents or
information from time to time:
(i) The Compact;
(ii) All minutes of the meetings of the Board and the meetings of
each Zonal Advisory Committee unless otherwise agreed by the Parties;
(iii) The M&E Plan, as amended from time to time, along with
periodic reports on Program performance;
(iv) Such financial information as may be required by this Compact,
the Disbursement Agreement or any other Supplemental Agreement, or as
may otherwise be agreed from time to time by the Parties;
(v) All Compact Reports;
(vi) All audit reports by an Auditor and any periodic reports or
evaluations by a Reviewer;
(vii) All relevant environmental impact assessments and supporting
documents, and such other environmental documentation as MCC may request;
(viii) A copy of the Disbursement Agreement, as amended from time
to time;
(ix) A copy of any document relating to the formation, organization
and governance of MiDA, including all Governing Documents, together
with any amendments thereto;
(x) A copy of the Procurement Agreement (including the Procurement
Guidelines), as amended from time to time, and any procurement policies
or procedures and standard documents; and
(xi) A copy of certain information derived from each Procurement
Plan, as specified in the Procurement Agreement, and all bid requests
and notifications of awarded contracts.
6. Environmental Accountability
(a) The Government shall ensure that MiDA (or any other Permitted
Designee) undertakes and completes three strategic environmental
assessments (each, an ``SEA''), each as a condition precedent to
certain MCC Disbursements as described in the Schedules to this Program
Annex and further specified in the Disbursement Agreement, and in form
and substance satisfactory to MCC, covering, respectively, the Northern
Zone, the Afram Basin Zone and the Southern Zone.
(b) The Government shall ensure that MiDA (or any other Permitted
Designee) (i) undertakes and completes any environmental impact
assessments (each, an ``EIA''), environmental management plans (each,
an ``EMP'') and resettlement action plans (each, a ``RAP''), each in
form and substance satisfactory to MCC, and as required under the laws
of Ghana, the Environmental Guidelines, this Compact or any
Supplemental Agreement or as otherwise required by MCC and (ii)
undertakes to implement any environmental and social mitigation
measures identified in such assessments or plans to MCC's satisfaction.
(c) Government shall commit to fund all necessary costs of
environmental mitigation (including costs of resettlement) not
specifically provided for in the budget for any Project.
Schedule 1 to Annex I--Agriculture Project
This Schedule 1 generally describes and summarizes the key elements
of the Agricultural Productivity and Value-Added Development Project
(the ``Agriculture Project'') that the Parties intend to implement in
furtherance of the Agriculture Project Objective. Additional details
regarding the implementation of the Agriculture Project will be
included in the Implementation Documents and in the relevant
Supplemental Agreements.
1. Background
Owing to its ability to grow successfully a wide diversity of
tropical and sub-tropical crops, Ghana has the potential to become the
leading West African supplier of horticultural products into the
markets in neighboring African countries and the European Union
(``EU'') where the demand for tropical, organic and conventional fruits
and vegetables is experiencing strong growth. In addition, domestic
food security can be significantly enhanced by expanding the country's
utilization of arable land
[[Page 48673]]
dedicated to maize, yams, cassava and other traditional food crops.
Agriculture is the backbone of Ghana's economy: it accounts for
approximately 40% of the country's GDP, directly employs more than 60%
of the labor force and generates more than 55% of the foreign exchange
earnings. The agricultural sector consists of five sub-sectors: crops
(other than cocoa) and livestock account for 58% of the GDP
attributable to the agricultural sector, cocoa for 20%, fisheries for
11% and forestry for the remaining 11%.
Ghana's current agricultural production is largely dominated by
rain-fed production of crops for local consumption by smallholder
farmers using rudimentary technology. Furthermore, inconsistency in
both the supply and the quality of agriculture crops hampers Ghana's
ability to compete against other countries supplying the same to the
regional and EU markets. Despite non-traditional horticultural crops'
potential for earning foreign exchange, the agricultural sector
currently produces mostly traditional crops under sub-optimal
conditions, including lack of interconnectivity between production
areas and markets and limited access to credit. Furthermore, insecure
land access and inefficient land registration processes are key risks
to the successful expansion of higher-value agribusiness.
Fortunately, a number of concrete steps can set the stage for
significant increases in food security, household income, profitable
agribusinesses, jobs creation and capital investment in Ghana's
agricultural sector. Specifically, in order to exploit fully its
agricultural potential, Ghana must improve its yields of high quality
product, increase the acreage devoted to commercial, high-value
horticultural crops, and consistently meet the international export
market standards. Inefficiencies in the value chain will be remedied by
improving entrepreneurial and technical skills among farmers and
businesses to maximize their output and sales by building a post-
harvest infrastructure for preserving the quality of crops during their
transportation from the production site to final market destination.
A number of mutually reinforcing activities has been identified to
address the above-described constraints that Ghana is facing in
achieving the Agriculture Project Objective within the Intervention
Zones. In addition, the participation in, and benefits from, the
Agriculture Project may extend to those farmers in nearby districts who
operate or trade within, or provide supplies to, the Intervention Zones.
2. Summary of the Agriculture Project and Related Projects Activities
The Agriculture Project is designed to enhance the profitability of
staple food and horticulture crops and to improve delivery of business
and technical services to support the expansion of commercial
agriculture among farmer-based organizations (``FBOs''), which are
groups of eligible farmers, input suppliers selling to such farmers, or
output processors buying from such farmers. MCC Funding will support
the following Project Activities:
? Farmer and Enterprise Training in Commercial Agriculture:
To accelerate the development of commercial skills and capacity among
FBOs and their business partners (including service providers to FBOs
and other entities adding value to agricultural crops such as processors);
? Irrigation Development: To establish a limited number of
retention ponds and weirs requested by the FBOs and FBO partnerships
for whom access to water is critical to the success of their business
objectives;
? Land Tenure Facilitation: To improve tenure security for
existing land users and to facilitate access to land for commercial
crops in the Intervention Zones;
? Improvement of Post-Harvest Handling and Value Chain
Services: To facilitate strategic investments by FBOs in post-harvest
infrastructure improvements and to build the capacity of the public
sector to introduce and monitor compliance with international plant
protection standards;
? Improvement of Credit Services for On-Farm and Value Chain
Investments: To augment the supply of, and access to, credit provided
by financial institutions operating in the Intervention Zones; and
? Rehabilitation of Feeder Roads: To rehabilitate up to 950
km of feeder roads in eight (8) districts in the Intervention Zones in
order to reduce transportation costs and time, to increase access to
major domestic and international markets, and to facilitate
transportation linkages from rural areas to social service networks
(including, for instance, hospitals, clinics and schools).
The M&E Plan (described in Annex III) will set forth anticipated
results and, where appropriate, regular benchmarks that may be used to
monitor the progress of the implementation of the Agriculture Project.
Performance against these benchmarks, as well as the overall impact of
the Agriculture Project, will be assessed and reported at the intervals
to be specified in the M&E Plan, or as otherwise agreed by the Parties,
from time to time. The Parties expect that additional indicators will
be identified during implementation of the Agriculture Project. The
expected results from, and the key benchmarks to measure progress on,
the Agriculture Project, as well as the Project Activities undertaken
or funded thereunder, are set forth in Annex III.
Estimated amounts of MCC Funding for each Project Activity for the
Agriculture Project are identified in Annex II. Conditions precedent to
each Project Activity under the Agriculture Project, and the sequencing
of such Project Activities, shall be set forth in the Disbursement
Agreement, any other Supplemental Agreements and the relevant
Implementation Documents.
The following summarizes each Project Activity under the
Agriculture Project:
(a) Project Activity: Farmer and Enterprise Training in Commercial
Agriculture (``Commercial Training Activity'')
Successful FBOs are critical to the development of Ghana's
agricultural potential. The Program will support FBOs by providing
training in business management, planning and finance practices, market
analyses and marketing, customer service and pricing mechanisms. By
achieving critical mass, FBOs can exercise bargaining power in
purchasing quality inputs and processing, transport, marketing and
other services at lower prices, and consistently provide sufficient
quantities of quality produce and crops in the necessary volume, as
well as add value to these services, all necessary to enter the
commercial markets with competitive products. The continued viability
of the FBOs after the Compact Term will be a key to the Ghanaian
farmers' continued economic growth, improved farming practices, ability
to secure best prices for inputs, access to credit and building of
strong farmer communities.
The Commercial Training Activity seeks to strengthen and support
both FBOs and certain agribusiness service providers who offer various
value-adding services to the FBOs that meet a pre-determined set of
criteria to be adopted by MiDA with the approval of MCC.
Specifically, MCC Funding will support the following:
(i) Extension activities by the Ministry of Food and Agriculture
(``MOFA''). MOFA will be responsible for providing preliminary
organizational and technical support to FBOs seeking eligibility to
participate in the commercial training program. MCC Funding will be
used for the
[[Page 48674]]
mobilization of MOFA's district level extension agents to identify
nascent and existing FBOs, as well as farmers and suppliers who are
good candidates to organize new FBOs in collaboration with the district
assemblies.
(ii) Commercial training program for FBOs. An intensive, multi-
phase commercial training program will be offered to the FBOs to
improve significantly their skills in management, business planning,
technology applications and marketing. Such FBOs will include small and
medium-sized enterprises (``SMEs'') that provide agribusiness-related,
value-adding services to farmers. Each phase of the program will
incorporate training to improve business literacy and numeracy of the
members of the FBOs. A priority will be placed on attracting
significant participation of women and young adults and on encouraging
their engagement in agriculture business opportunities in the target
districts in each Intervention Zone. Specifically, the commercial
training program will consist of the following three phases:
(1) Phase One: To strengthen the business capacity of FBOs, this
phase will provide intensive training in strengthening the
organization, developing a business vision, and learning to use
realistic planning tools towards commercialization and profitability
will be provided. Participants will be required to prepare a long-term
business plan for approval in accordance with evaluation criteria,
adopted by MiDA with the approval of MCC, before moving on to Phase Two
of the program. An organization-building incentive in the form of
business and communication technology will be available to each
participating entity, whether an FBO or an SME, that completes and
begins implementing the approved business plan.
(2) Phase Two: The business plans developed in Phase One will
determine the specific technical training, infrastructure support and
inputs to be provided to the participating entities during Phase Two.
The focus during Phase Two will be to enable the participating entities
to transition into new agricultural crop varieties and to adopt and fully
integrate good agricultural practices into their commercial operations.
(3) Phase Three: The assistance during Phase Three will focus on
helping FBOs to maximize sales volumes in the commercial agriculture
markets (domestic, regional or export), with consistent, competitive
products and services. Training will focus on quality assurance
management (including product handling and preservation, packaging and
transportation), as well as on improving the linkages with processors
and traders and facilitating their access to market through branding,
advertising, information services and promotion of agricultural crops.
(b) Project Activity: Irrigation Development (``Irrigation Activity'')
In order to combat the frequent crop failure and food shortage due
to variation in the amount and intensity of rain, along with
intermittent droughts, the Government has begun to encourage improved
management of water resources by farmers and to support irrigation
development programs. For instance, the Government, through the Ghana
Irrigation Development Authority, has constructed 22 public irrigation
schemes with a combined area of 8,745 hectares designed to grow rice,
either double cropped or in rotation with vegetables.
Nonetheless, Ghana's water resources, composed of Lake Volta,
formed by the Akosombo Dam and the many tributaries of the Volta River,
have been only lightly exploited to irrigate the country's vast tracts
of unused land. The Irrigation Activity aims to support the expansion
of fruit and vegetable production by smallholder farmers, as well as
the various farmer groups, by providing irrigated water to them.
Specifically, subject to the completion of the relevant SEAs to
MCC's satisfaction, MCC Funding will support the following:
(i) The construction of small retention ponds in all three
Intervention Zones, as well as weirs in the Northern Zone, upon
approval by MiDA of proposals for such ponds and weirs submitted by the
FBOs. The proposals will be evaluated for funding based on a pre-
determined set of criteria to be adopted by MiDA with the approval of
MCC, which will include, among others, appropriate assessment of the
environmental and social impact of, approved permits for, and the
appropriate screening for the economic effects of, the proposed
construction.
(ii) With respect to each construction described in Section 2(b)(i)
of this Schedule 1 to Annex I, the following activities:
(1) Feasibility and design studies (that include an assessment of
the economic rates of return and poverty reduction impacts of the
relevant irrigation infrastructure), an EIA, an EMP and a RAP, each as
may be necessary; and
(2) Implementation of environmental and social mitigation measures,
as identified in the studies described in Section 2(b)(ii)(1) of this
Schedule 1 to Annex I, or as otherwise may be appropriate, including
compensation of individuals, residences and businesses affected by such
rehabilitation and upgrades, consistent with the World Bank's
Operational Policy on Involuntary Resettlement (OP 4.12).
(c) Project Activity: Land Tenure Facilitation (``Land Activity'')
Ghana currently suffers from an inadequate land policy and
regulatory framework, fragmented institutional arrangements, and an
underdeveloped land registration system. For instance, six separate
public agencies operate in loose coordination under two different
ministries, and each has a role in land administration. In part as a
result of this institutional fragmentation, land transactions are
costly and not transparent, and produce numerous tenure disputes. Other
problems in land administration in Ghana include a lack of formal
documentation of customary holdings, indeterminate boundaries of
private and other land holdings, conflicting records of land rights and
delays in negotiating and registering acquisition and transfer of land
rights. Currently, there are approximately 40,000 land tenure disputes
pending before the courts.
In Ghana, customary rights in land are prevalent and are offered
strong legal protections by Ghanaian legislation. In addition,
investors and local farmers access land use rights by long-term lease
arrangements or other tenancy arrangements, and in some cases by
purchases negotiated directly with the relevant community or the
Government on behalf of the community. Sound agricultural development
in Ghana would be greatly strengthened by making access to land more
efficient and secure while preserving secure tenure for local communities.
The Government is in the process of implementing, with support from
multiple donors, the Land Administration Project (``LAP'') that seeks
to remedy these problems through a systematic reform of the policy and
institutional framework governing land tenure. Consistent with the
overall policy and methodological framework of LAP, the Land Activity
seeks to contribute to an environment of more secure land tenure and
more efficient land access in the three Intervention Zones.
Specifically, MCC Funding will support the following:
(i) Facilitation of land transactions by providing on-demand
services. To facilitate land transactions on an on-demand basis in all
the districts within
[[Page 48675]]
the Intervention Zones, MCC Funding will be used to support:
(1) Assessment of the demand for assistance with land transactions
and registration, as well as the potential risks to vulnerable people
in land transactions, in each district within the Intervention Zones;
(2) Expansion of access to local services, such as information
provision, legal services, valuation, land surveying and mediation of
land disputes, in collaboration with the Lands Commission, based on the
assessment described in Section 2(c)(i)(1) of this Schedule 1 to Annex I;
(3) Development and management of, and creation of awareness for, a
land market information database, outreach about the process of land
registration and production and circulation, as necessary, of
information regarding formal and customary rules and administrative
practices on land access and registration; and
(4) Strengthening the capacity of the Lands Commission, and other
land sector agencies as appropriate, for more efficient processing of
land registration requests, including, subject to approval by MiDA and
MCC, supplementing the staffing and providing equipment to automate the
processing of land registration requests.
(ii) A pilot program for area-wide registration of rural land
rights involving, among others, certain preparatory tasks (including,
among others, community sensitization, composite maps and inventory of
land rights) and the formalization of land rights consistent with the
methodology developed under LAP (including, among others, resolution of
land disputes via alternative dispute resolution (``ADR'') mechanisms,
formal demarcation of parcel boundaries and issuance of registered land
titles). The pilot program for registration of land rights will take
place in two phases. In Phase One, the rural areas of the districts of
Awutu Efutu Senya, Savalugu-Nanton and Afram Plains will be declared
pilot registration districts (``PRDs''). In Phase Two, a similar set of
activities, revised to incorporate the lessons learned in Phase One,
will be carried out in six additional PRDs selected by MiDA based upon
a pre-determined set of criteria adopted by MiDA with the approval of
MCC, incorporating the lessons learned in Phase One.
(iii) Development of innovative solutions to the land tenure
problems and the fostering of informed stakeholder dialogue on
technical, social or policy issues relevant to land tenure and access.
This activity will include the development and implementation of (1) a
training action plan to build capacity for public and private sector
land administration services; (2) an assessment and analysis of the
legal and administrative aspects of compensation resulting from ADRs;
(3) a small grants program, in coordination with LAP, designed to
encourage constructive debate on land issues; (4) workshops and other
forums for dialogue; and (5) development and adoption of a gender
strategy for implementation of the Land Activity.
(iv) Improvement of the courts' ability to process land disputes.
To establish expeditious and inexpensive ways to resolve land disputes
and to reduce the backlog of land dispute cases in certain circuit
courts, MiDA will collaborate with the Judicial Service to refine their
understanding of the nature and scope of existing land disputes and the
prospective dispute resolution mechanisms to resolve such disputes; to
finalize and implement an action plan identifying the most appropriate
approach; to remove the identified backlog of land disputes in each
participating court; to automate the records relating to the resolution
of the land disputes; and to develop a practice manual on the use of
various ADR procedures for use by various members of the circuit courts
in the Intervention Zones involved in handling land disputes.
(d) Project Activity: Improvement of Post-Harvest Handling and Value
Chain Services (``Post-Harvest Activity'')
A number of post-harvest infrastructure improvements are necessary
for the Ghanaian horticulture export industry to become a significant
supplier of fruits and vegetables to the EU and other export markets.
Therefore, MCC Funding will be used to develop post-harvest handling
capacity that maintains the quality of product from the farm to the
market. In addition, the capacity of the public sector will be improved
to meet International Plant Protection Convention (``IPPC'') standards.
In order to ensure the long-term growth and sustainability of the post-
harvest infrastructure, the ownership and operation of such
infrastructure will be privatized during the Compact Term based on a
privatization plan adopted by MiDA with the approval of MCC.
Specifically, MCC Funding will support the following:
(i) Improvements to existing nucleus farm packhouses in the form of
forced-air cooling and temporary cold storage units, to be owned and
operated by the current owners of such packhouses. Nucleus farmers that
procure products from small outgrowers, or are willing to procure
outgrower-grown product in the future, will be eligible to obtain such
improvements. Eligibility requirements will also include, among others,
membership in an agricultural export association that will facilitate
the collection of the full repayment of the cost of such improvements,
with interest at market rate comparable to that charged borrowers under
the Credit Activity, from the nucleus farmer in accordance with
guidelines on provision of credit adopted by MiDA with the approval of
MCC. Such repayments will be deposited in a special account established
by MiDA for reinvestment into activities with the export associations
that are consistent with the Program Objective selected by MiDA based on a
pre-determined set of criteria adopted by MiDA with the approval of MCC.
(ii) Construction of packhouses and other post-harvest
infrastructure for eligible FBOs located in target districts within the
Intervention Zones to serve the needs of disadvantaged smallholder
farmers growing pineapple, papaya, mango, and certain vegetable and
staple crops. The eligibility requirements will include, among others,
a plan for full recovery of the operation and maintenance costs of such
packhouses in accordance with guidelines on provision of credit adopted
by MiDA with the approval of MCC. Any required permits, including
environmental permits, will be obtained prior to construction. The
ownership of the packhouses will be transferred from MiDA before the
expiration of the Compact Term to the relevant FBOs that demonstrate
sustained commercial operations.
(iii) Construction of infrastructure for packing and cooling at the
Kotoka International Airport that meets international standards, which
will be completed in two phases. The first phase will include the
construction of basic infrastructure to facilitate packing and storage
of fresh agriculture produce, with provision for future installation of
cooling facilities. The installation of cooling facilities in the
second phase will be triggered by a demonstrated need for such capacity
and a plan for the full recovery of the cost of installation,
operations and maintenance of such capacity, in accordance with
guidelines on provision of credit adopted by MiDA with the approval of
MCC. Any required permits, including environmental permits, will be
obtained prior to construction.
[[Page 48676]]
(iv) Upgrade of Ghana's capacity to meet IPPC standards. Equipment
installation, systems improvement and staff training of the Plant
Protection and Regulatory Services Directorate within MOFA, the Ghana
Standards Board and the Water Resource Institute, will be implemented
to improve service delivery to the private sector.
(e) Project Activity: Improvement of Credit Services for On-Farm and
Value Chain Investments (``Credit Activity'')
Financial service providers are few and far between in most of the
districts in the Intervention Zones and have limited abilities to
expand rapidly. Only one commercial bank, the Agriculture Development
Bank, is meaningfully engaged in making loans to agricultural clients
in the Northern Zone and the Afram Basin Zone. Although there are 37
privately-owned rural banks and seven financial NGOs that serve rural
clients in the Intervention Zones, their resources and capacity are
very limited. The Credit Activity will support the other Project
Activities under the Agriculture Project by facilitating access to
credit in the Intervention Zones and assisting the banks to improve
their ability to assess, grant and manage agriculture loans.
Specifically, MCC Funding will support the following:
(i) Provision of funds for banks, financial NGOs and other eligible
financial intermediaries for on-lending to borrowers in the
agricultural sector in the Intervention Zones. It is anticipated that
rural banks and financial NGOs will access the facility to make
seasonal and other working capital loans with maturities of less than
18 months, and commercial banks will access the facility to make
medium-term loans. The financial intermediaries will assume one-half of
the credit risk on the loans made using the facility. As an incentive
to participate in granting and effectively collecting the loans, the
highest-performing rural banks and financial NGOs will be eligible at
the end of the Compact Term to receive a portion of the facility as a
grant based on a set of performance evaluation criteria adopted by MiDA
with the approval of MCC. This will strengthen the capital base of
successful banks, enhancing their ability to sustain credit to farmers
and the agricultural value chain.
(ii) Establishment of new office locations, branches or loan
production offices, in all the Intervention Zones, with a special
preference given to the Northern Zone and the Afram Basin Zone for
banks, selected based on eligibility criteria adopted by MiDA with the
approval of MCC to provide access to credit and financial services in
unserved areas.
(iii) Training for rural banks and financial NGOs on credit and
management skills consisting of classroom and on-site training
throughout the Compact Term, including the purchase of a mobile
training center for use in the rural areas for banking training classes
and the necessary technology.
(iv) Establishment of pilot programs intended to speed the flow of
credit along the agriculture value chain, such as voucher programs with
retail input providers.
(f) Project Activity: Rehabilitation of Feeder Roads (``Feeder Roads
Activity'')
To improve transportation linkages and to reduce transport costs,
MCC Funding will support the rehabilitation or upgrading of about 950
km of feeder roads in the Intervention Zones. The extent to which the
feeder roads are rehabilitated or upgraded will depend upon, among
others, their current condition, the present and projected traffic
volume as a result of increased agricultural activity and productivity
in those districts, and the results of an EIA, if any, required under
Section 2(f)(ii)(1) of this Schedule 1 to Annex I.
Specifically, subject to the completion of the relevant SEAs to
MCC's satisfaction, MCC Funding will support the following:
(i) Rehabilitation and upgrading of the identified segments of
feeder roads as follows:
(1) Approximately 205 km of feeder roads in Awutu Efutu Senya;
(2) Approximately 181 km of feeder roads in Akwapim South;
(3) Approximately 55 km of feeder roads in South Tongu;
(4) Approximately 7 km of feeder roads in Keta;
(5) Approximately 49 km of feeder roads in Ketu;
(6) Approximately 44 km of feeder roads in North Dayi;
(7) Approximately 66 km of feeder roads in Hohoe; and
(8) Approximately 337 km of feeder roads in Savelugu Nanton.
(ii) With respect to each feeder road identified in Section 2(f)(i)
of this Schedule 1 to Annex I, the following activities:
(1) Feasibility and design studies (that include an assessment of
the economic rates of return and poverty reduction impacts of the
relevant feeder roads), an EIA, an EMP and a RAP, each as may be necessary;
(2) Implementation of environmental and social mitigation measures,
as identified in the studies described in Section 2(f)(ii)(1) of this
Schedule 1 to Annex I, or as otherwise may be appropriate, including
compensation of individuals, residences and businesses affected by such
rehabilitation and upgrades, consistent with the World Bank's
Operational Policy on Involuntary Resettlement (OP 4.12);
(3) Posting of signage and making other safety improvements; and
(4) Project management, supervision and auditing of such
rehabilitation and upgrades.
3. Beneficiaries
The Agriculture Project will directly benefit more than 100,000
farm and rural households, comprising an estimated 500,000 individuals,
through the commercial activities of at least 1,200 FBOs and 120
service providers located throughout the 23 target districts in the
three Intervention Zones. In addition, the participation in, and
benefits from, the Agriculture Project may extend to those farmers in
nearby districts who operate or trade within, or provide supplies to,
the Intervention Zones. In the Intervention Zones, farmers and others
will also benefit through more secure land tenure with an estimated
5,000 tracts of land gaining registered rights, more efficient
registration services and more efficient circuit courts for resolution
of land disputes. Over 50 commercial banks, rural banks and financial
NGOs will benefit from access to new funding, new banking capacity
skills, and potentially a permanent injection of new capital at the
expiration of the Compact Term to improve seasonal and medium-term
credits to rural households and other enterprises engaged in commercial
agriculture activities. The rehabilitation and upgrades to the feeder
roads is expected to benefit up to 95,000 farm households and
agricultural producers by facilitating access to domestic and
international markets, and to critical social services.
4. Donor Coordination; Role of Private Sector and Civil Society
Where a number of donors, trade associations and agricultural
lenders are already supporting capacity building of the agriculture
industry, the Commercial Training Activity, the Irrigation Activity and
the Post-Harvest Activity will build upon, and complement, these
existing efforts. The lessons learned from other donors' experiences,
especially regarding the need to avoid narrowly targeted lending and
over-subsidization of interest rates, in order to encourage
sustainability will be incorporated into the implementation
[[Page 48677]]
of the Credit Activity. The World Bank, Department for International
Development of the United Kingdom, KfW Entwicklungsbank, Canadian
International Development Agency, Deutsche Gesellschaft f[uuml]r
Technische Zusammenarbeit (GTZ) GmbH, and Nordic Development Fund all
support the LAP. The Land Activity has been conceived within the
framework of the LAP and the various lessons learned from the LAP to
date will be considered in the implementation of the Land Activity.
Selection of feeder roads for inclusion under the Feeder Roads Activity
has been coordinated with those roads being funded by the EU under its
Feeder Roads Improvement Project.
Ongoing consultations with private sector representatives, as well
as smallholder farmers, large farmers, agricultural input suppliers,
development organizations, microfinance institutions, processors,
traders, exporters and transporters of agricultural products,
agricultural industry associations, formal banking institutions,
research and higher education institutions, and the representatives of
women's and environmental NGOs will be held by MiDA throughout the
implementation of the Agriculture Project.
5. U.S. Agency for International Development (``USAID'')
In 2005, USAID initiated the Trade and Investment Program for a
Competitive Export Economy (``TIPCEE'') to achieve growth in Ghana's
sales of non-traditional exports. TIPCEE seeks to provide, among
others, certain targeted farmers with training in improved agricultural
practices and access to new varieties of seeds and inputs. The
Agriculture Project has been designed with input from USAID so that
TIPCEE and the Agriculture Project will mutually support each other.
Furthermore, research on land issues by the Institute of Statistical,
Social and Economic Research at the University of Ghana will inform the
implementation of the small grants program under Section 2(c)(iii)(3)
of this Schedule 1 to Annex I. While USAID currently has no projects
focusing on the rehabilitation or upgrade of feeder roads in Ghana, the
Government intends to continue dialoguing with USAID to identify areas
in which USAID's activities may complement the Feeder Roads Activity.
Finally, USAID has reviewed and provided input into the designing of
the Credit Activity, and the goals and methods of the Credit Activity
are consistent with the practices in favor of financial institution's
sustainability and the avoidance of subsidies as advocated by USAID.
6. Sustainability
Each Project Activity under the Agriculture Project is designed to
advance the food crop and horticulture industry in Ghana and to lay the
foundation for substantial and sustainable economic growth. To that
end, the improvements in human resource capacity under the Commercial
Training Activity, availability of water resources under the Irrigation
Activity, land tenure security under the Land Activity, production of
exportable produce under the Post-Harvest Activity, the amount of
available credit to farmers under the Credit Activity, and efficiency
gains in transportation of agricultural goods and access to inputs
under the Feeder Roads Activity, together, are expected to transform
subsistence and sub-scale cash framers into commercially viable
operations, to create new, as well as to strengthen existing,
suppliers, processors and marketers on sound business bases and to
enhance a climate that attracts additional outside investment in the
food crop and horticulture sectors in Ghana, thus leading to continued
and sustainable growth of Ghana's agricultural sector.
The environmental and social sustainability of the Agriculture
Project will be assured through ongoing consultations with the public
regarding the manner in which the Agriculture Project is being
implemented. SEAs will be conducted in each Intervention Zone affected
by the Agriculture Project and, as necessary, environmental and social
analyses (that include an analysis of the gender impacts of the
Agriculture Project) will be conducted, as part of the technical survey
and design of major investments in any physical infrastructure under
the Agriculture Project to determine the environmental impacts and
existence of economic and physical displacements, if any. Furthermore,
the Government will ensure, directly or through MiDA (or any other
Permitted Designee), that environmental and social mitigation measures
are developed and implemented for each Project Activity under the
Agriculture Project in accordance with the provisions of this Compact
and any relevant Supplemental Agreements. MiDA will ensure that
environmental and social assessment responsibilities will be included
in the bidding documents for the design or supervisory firms, the
construction firms, the independent technical auditing firms and any
project management advisors. MiDA will ensure that HIV awareness and
worker safety training will be included as well in the bidding
documents for the construction firms. In addition, any required EIAs,
EMPs and RAPs, in form and substance satisfactory to MCC, will be
developed and implemented under the Agriculture Project and monitored
by MiDA as necessary during the implementation of the Agriculture
Project. Any MCC Disbursements for construction will be contingent upon
issuance of environmental permits, as needed, or any Government
statutory requirements. The Government will fund any project-related
environmental mitigation costs (including resettlement costs) that are
not already covered by MCC Funding pursuant to Sections 2(b)(ii) and
2(f)(ii) of this Schedule 1 to Annex I.
7. Policy; Legal and Regulatory Reform
The Parties have identified the following policy, legal and
regulatory reforms and actions that the Government shall pursue in
support, and to reach the full benefits, of the Agriculture Project,
the satisfactory implementation of which will be conditions precedent
to certain MCC Disbursements as provided in the Disbursement Agreement:
(a) Government shall adopt an amendment to cause the National Plant
Protection Organization to be in compliance with IPPC standards.
(b) Government shall take effective measures to implement the
recommendations for legal and institutional reforms for land
administration, land management and land tenure as proposed in a
memorandum submitted by the Minister of Lands, Forests and Mines to the
Cabinet and approved by the Cabinet on February 9, 2006.
(c) Government shall harmonize the relevant land legislation and
regulations with the constitutional mandate related to public taking of
land for the public good.
8. Proposals
Public solicitations for proposals are anticipated to procure
goods, works and services, as appropriate, to implement all Project
Activities under the Agriculture Project. MiDA will develop, subject to
MCC approval, a process for consideration of all such proposals.
Notwithstanding the foregoing, MiDA may also consider, using a process
developed subject to MCC approval, any unsolicited proposals it might
receive.
[[Page 48678]]
Schedule 2 to Annex I--Transportation Project
This Schedule 2 generally describes and summarizes the key elements
of the Transportation Infrastructure Development Project (the
``Transportation Project'') that the Parties intend to implement in
furtherance of the Transportation Project Objective. Additional details
regarding the implementation of the Transportation Project will be
included in the Implementation Documents and in the relevant
Supplemental Agreements.
1. Background
Agricultural development is critically dependent on a sound
transport network for access to inputs and markets. Ghana's transport
system consists of four modes: Road, aviation, rail and maritime. Its
national road network totals about 60,000 km while it has one
international airport and four domestic airports. It has approximately
945 km rail network currently serving the southern half of the country,
and its maritime infrastructure consists of 350 km of inland water
transport over Lake Volta, in addition to the two seaports at Tema and
Takoradi.
Road transport is the dominant mode of transport in Ghana, carrying
almost 95% of the passenger traffic and 97% of all movable freight in
the country. The Government has identified high transport costs as a
barrier to achieving sustainable economic growth inhibiting the
expansion of agricultural opportunities by restricting access and
linkages to major domestic and international agricultural markets.
In order to address the problem of high transport costs, the
Government has developed a rolling five-year strategic plan, out of
which the first three-year segment was used to prepare the Road Sector
Development Program (``RSDP'') for implementation over the period from
2002 through 2007. The objective of the RSDP is to reduce poverty and
disparities in incomes, improve the standard of living in both the
rural and urban areas, and raise the quality of life by improving
access to social services, all through improved road infrastructure. In
addition, under the GPRS, the Government is committed to providing a
better distribution of the road network and other transportation
linkages to reduce disparities between the urban and the rural communities.
MCC Funding will, therefore, be used to undertake improvements to
the road network with emphasis on primary and secondary roads,
principally in the Intervention Zones, consistent with the Government's
efforts to remove transport disparities between the rural and urban
areas, to reduce vehicle operating and maintenance costs and to improve
the competitiveness of agricultural producers using these roads. In
addition, MCC Funding will also be used to undertake improvements to
inland water transport to enhance the transportation network in the
Afram Basin Zone.
2. Summary of Transportation Project and Related Projects Activities
The Transportation Project is designed to reduce the transportation
costs affecting agricultural commerce at sub-regional and regional
levels in Ghana, in support of the Agriculture Project. MCC Funding
will support the following Project Activities:
? Upgrades to Sections of N1 Highway: To reduce the
bottleneck in accessing the International Airport and the Port of Tema
and to support an expansion of Ghana's export-directed horticulture
base beyond current production, by upgrading of 14 km of the National
Highway (``N1 Highway'') between Tema and Accra (specifically, the
stretch of N1 Highway from Tetteh Quarshie Interchange to Mallam Road
Junction, also known as ``TQM'') and by constructing two grade
separation interchanges at the Dimples-Achimota and Mallam Junctions to
improve traffic management at these locations;
? Improvements of Trunk Roads: To facilitate the growth of
agriculture and access to social services by rehabilitating or
constructing up to 230 km of trunk roads in the Afram Basin Zone; and
? Improvements of Lake Volta Ferry Services: To facilitate
the growth of agriculture in the Afram Basin Zone by improving the
ferry services of Volta Lake Transport Company (``VLTC'') that connect
Adawso on the southern shore to Ekye Amanfrom on the northern shore.
The M&E Plan (described in Annex III) will set forth anticipated
results and, where appropriate, regular benchmarks that may be used to
monitor the progress of the implementation of the Transportation
Project. Performance against these benchmarks, as well as the overall
impact of the Transportation Project, will be assessed and reported at
the intervals to be specified in the M&E Plan, or as otherwise agreed
by the Parties, from time to time. The Parties expect that additional
indicators will be identified during implementation of the
Transportation Project. The expected results from, and the key
benchmarks to measure progress on, the Transportation Project, as well
as the Project Activities undertaken or funded thereunder, are set
forth in Annex III.
Estimated amounts of MCC Funding for each Project Activity for the
Transportation Project are identified in Annex II. Conditions precedent
to each Project Activity under the Transportation, and the sequencing
of such Project Activities, shall be set forth in the Disbursement
Agreement, other Supplemental Agreements or the relevant Implementation
Documents.
The following summarizes each Project Activity under the
Transportation Project:
(a) Project Activity: Upgrades to Sections of N1 Highway (``N1 Activity'')
The TQM runs in an East-West direction, constitutes a part of the
Accra--Tema Motorway and functions as a part of the larger Trans-West
Africa Highway. It also supports the urban traffic movement within the
Greater Accra Metropolitan Area. The existing TQM, a two lane road, is
severely congested during the greater part of the working day, with an
estimated traffic flow of between 28,000 and 35,000 vehicles per day.
Since 1996, traffic has been growing around Accra by approximately
7 to 7.5% each year. While overall traffic volumes in Accra continue to
increase at a relatively rapid rate, the rate of increase observed on
the TQM has been less, reflecting the degree of saturation on the road
and travelers' decisions not to use the route at congested times.
Observed ``free-flow'' travel speeds on improved sections of the N1
Highway reach 50-70 km per hour; however, at narrower sections
including the TQM, average speeds can drop to less than 10 km per hour.
As a result of this congestion and the associated high vehicle
operating costs, the Government and its development partners have
undertaken to improve and widen sections of the N1 Highway, including
those that are contiguous to the TQM. Currently, the TQM acts as a
bottleneck and negatively impacts the returns to the investment on the
contiguous sections. MCC will fund rehabilitation to, and upgrades of,
specific sections of the N1 Highway in an effort to improve the
efficiency of the greater road network in and around Accra, including
access to the key sea and air export facilities.
Specifically, MCC Funding will support the following:
(i) Improvement and upgrade to the 14 km of N1 Highway between
Tetteh Quarshie and Mallam Junctions as a three lane dual carriageway
(without service roads) and provision of grade
[[Page 48679]]
separation interchanges at the Dimples-Achimota and Mallam Junctions.
(ii) With respect to the improvements and upgrades identified in
Section 2(a)(i) of this Schedule 2 to Annex I, the following activities:
(1) Feasibility and design studies (that include an assessment of
the economic rates of return and poverty reduction impacts of the
relevant sections of the N1 Highway), an EIA, an EMP and a RAP;
(2) Implementation of the environmental and social mitigation
measures, as identified in the studies described in Section 2(a)(ii)(1)
of this Schedule 2 to Annex I, or as otherwise may be appropriate,
including compensation of individuals, residences and businesses
affected by such improvements and upgrades, consistent with the World
Bank's Operational Policy on Involuntary Resettlement (OP 4.12);
(3) Utility relocations, as may be necessary; and
(4) Project management, supervision and auditing of such
improvements and upgrades.
(iii) Feasibility and design studies (that include an assessment of
the economic rates of return), an EIA, an EMP and a RAP, each as may be
necessary for service roads and grade separation at an additional six
interchanges along the TQM (the construction of which shall not be
funded by MCC Funding).
(b) Project Activity: Improvements of Trunk Roads (``Trunk Roads
Activity'')
MCC Funding will support the assessment and subsequent improvements
of up to 230 km of trunk roads. Specifically, subject to the completion
of the relevant SEAs to MCC's satisfaction, MCC Funding will support
the following:
(i) Improvements to the following five trunk roads:
(1) Agogo--Dome Road (77 km). Upgrading of 23 km of road between
Agogo and Dukusen to bitumen surfacing and rehabilitation or
construction of 54 km of road between Dukusen and Dome to gravel
surfacing (including rehabilitation or construction of drainage culverts
and bridges and contingent upon completion of an environmental audit);
(2) Ejura--Domi Road (22 km). Upgrading from gravel to bitumen
surfacing of 22 km of road between Ejura and Domi;
(3) Ekye Amanfrom--Agordeke Road (85 km). Upgrading from gravel to
bitumen surfacing of about 46 km, and rehabilitation of 39 km of existing
bitumen-surfaced sections, of the road from Ekye Amanfrom and Agordeke;
(4) Nkawkaw-Mpraeso--Kwahu Tafo Road (22 km). Rehabilitation and
resurfacing of the bitumen surfaced road from Nkawkaw through Mpraeso
to Kwahu Tafo; and
(5) Kwahu Tafo--Adawso (21 km). Completion of paving (into bitumen
surfacing) of 21 km of road from Kwahu Tafo to Adawso.
(ii) With respect to the improvements and upgrades identified in
Section 2(b)(i) of this Schedule 2 to Annex I, the following activities:
(1) A technical and environmental audit of the Agogo--Dome Road (77
km) to assess the impact of recent rehabilitation activities;
(2) Feasibility and design studies (that include an assessment of
the economic rates of return and poverty reduction impacts of the
relevant trunk roads), an EIA, an EMP and a RAP, each as may be necessary;
(3) Implementation of the environmental and social mitigation
measures, as identified in the studies described in Section 2(b)(ii)(2)
of this Schedule 2 to Annex I, or as otherwise may be appropriate,
including compensation of individuals, residences and businesses
affected by such improvements and upgrades, consistent with the World
Bank's Operational Policy on Involuntary Resettlement (OP 4.12); and
(4) Project management, supervision and auditing of such
improvements and upgrades.
(c) Project Activity: Improvements to Lake Volta Ferry Service
(``Ferry Activity'')
To facilitate growth of the agricultural sector of the Afram Basin
Zone, MCC Funding will be used to support improvements to ferry
services of VLTC, connecting Adawso on the southern shore to Ekye
Amanfrom on the northern shore.
Specifically, subject to the completion of the relevant SEAs to
MCC's satisfaction, MCC Funding will support the following:
(i) Construction of two double-ended vehicle/pedestrian ferries
with hydraulic liftable propellers.
(ii) Training of VLTC staff, including management and occupational
safety training for workshop foremen from VLTC's staff in Akosombo,
VLTC's workshop staff, artisans, and ferry crew.
(iii) Rehabilitation of the Akosombo floating dock to enhance
VLTC's construction, repair and maintenance capabilities.
(iv) Civil works at the landing stages at Adawso and Ekye Amanfrom
to increase the ferry and vehicle handling capacities at the same
landing stages.
(v) Rehabilitation of ferry terminals at Adawso and Ekye Amanfrom,
including all-weather protection and adequate sanitation facilities to
accommodate additional ferry and passenger traffic.
(vi) Extraction of tree-stumps from the crossing route between
Adawso and Ekye Amanfrom to eliminate navigational and safety hazards
during low water periods.
(vii) With respect to the improvements and upgrades identified in
Sections 2(c)(i)-(vi) of this Schedule 2 to Annex I, the following
activities:
(1) Feasibility and design studies (that include an assessment of
the economic rates of return and poverty reduction impacts), an EIA, an
EMP and a RAP, each as may be necessary;
(2) Implementation of the environmental and social mitigation
measures, as identified in the studies described in Section
2(c)(vii)(1) of this Schedule 2 to Annex I, or as otherwise may be
appropriate, including compensation of individuals, residences and
businesses affected by such improvements and upgrades, consistent with
the World Bank's Operational Policy on Involuntary Resettlement (OP
4.12); and
(3) Project management, supervision and auditing of such
improvements and upgrades.
3. Beneficiaries
The principal beneficiaries of the Transportation Project are
expected to be the users of the improved roads and ferry facilities
since it decreases transportation costs to markets and social service
delivery points and employees, in addition to the owners of urban and
rural businesses that rely on the Ghanaian road network.
More specifically, the N1 Highway upgrades are expected to benefit
approximately 150,000 daily users and should support a broader
expansion of Ghana's export-directed horticulture beyond its current
production base of less than 7,000 hectares. Improvements to the trunk
roads are expected to open new economic opportunities for approximately
25,000 agricultural households and users, spurring agricultural
production in the Afram Basin Zone, most of whom are considered poor or
very poor. These improvements will also facilitate access to social
services, including health and education, for these poor households.
The benefits from time savings by introducing additional ferries will
accrue to all users of the ferry. More fundamentally, improved reliable
ferry service in the district of Afram Plains should generate improved
access to inputs and markets for farmers and
[[Page 48680]]
increased competition among truckers, which should in turn yield
increased farmgate prices and reduced operating costs. These benefits
are likely to be divided equally between farmer and users, on the one
hand, and the vehicle owners, on the other hand, a great majority of
whom are poor.
4. Donor Coordination
Donor coordination in the transport sector in Ghana is organized
through RSDP, bringing together, among others, the World Bank, the
African Development Bank, Department for International Development
(``DFID''), EU, Japan International Cooperation Agency and the Arab
Bank for Economic Development, for a multi-year integrated funding
program of approximately US$1.2 billion. The collaboration takes place
through the annual donor conference and in-country monthly meetings to
review the performance of the sector. The road agencies in Ghana have
received substantial donor support for construction, maintenance and
institutional strengthening.
The Transportation Project coordinates with many ongoing and
planned donor activities, and has been structured to ensure
complementarity. For instance, none of the selected roads under the
Trunk Roads Activity is expected to benefit from other donor-supported
interventions. In addition, there has been no material donor support to
the VLTC in recent years whereas the Ferry Activity is designed
specifically to support this critical transport link to one of the
poorest districts in Ghana.
5. U.S. Agency for International Development
USAID currently does not focus specifically on the construction and
rehabilitation of the transportation infrastructure in Ghana. However,
MiDA will continue to dialogue with USAID to identify potential
opportunities for coordination with respect to the Transportation Project.
6. Sustainability
The Ministry of Transportation (``MoT'') is the principal
institution responsible for the effective and sustainable management of
the road network in Ghana. As such, it plays a central role in
coordinating and regulating activities of the road agencies (i.e.,
Department of Feeder Roads (``DFR''), the Department of Urban Roads
(``DUR''), the Ghana Highway Authority (``GHA'') and the Ghana Road
Fund (``GRF'')). GHA, DFR and DUR are responsible for the
administration, planning, control, development and maintenance of the
trunk road network, feeder roads and urban roads, respectively.
Approximately 45% of the MoT's annual budget is allocated to
operation and maintenance of the existing road network. Currently, the
maintenance of the roads is generally funded through GRF, which
provides a sustainable and reliable source of funds to pay for
maintenance of the road network. Its sources of revenue include fuel
levies, vehicle registration fees, road use fees, road tolls, bridge
tolls, ferry tolls, and international transit fees (for foreign
vehicles entering Ghana). The MoT is committed to maintaining this
funding. It has also developed a plan to increase the total number of
kilometers of maintainable roads by about 3,600 km a year, primarily
though spot improvement and rehabilitation of roads previously
considered as non-maintainable. GRF monies will be used to maintain the
roads constructed or improved under this Transportation Project.
While VLTC is financially self-sustaining based on current toll
levels, a lack of suitable equipment to accommodate an increasing
number of ferry passengers is a key constraint to consistent, economic
service by VLTC. Its severely limited maintenance capacity and, by
extension, its operational abilities endanger continuity and
dependability of its service. Spare parts for the presently operating
ferries are difficult to obtain and the main auxiliary engines of the
current ferry are no longer in production. MCC Funding is critical in
ensuring efficient and timely services and meeting projected demand.
MCC Funding will expand VLTC's service and maintenance capabilities and
is expected simultaneously to reduce its recurrent direct costs.
The environmental and social sustainability of the Transportation
Project will be assured through ongoing consultations with the public
regarding the manner in which the Transportation Project is being
implemented. SEAs will be conducted in each Intervention Zone affected
by the Transportation Project (other than the district affected solely
by the N1 Activity) and, as necessary, environmental and social
analyses (that include an analysis of the gender impacts of the
Transportation Project) will be conducted, as part of the technical
survey and design of major investments in any physical infrastructure
under the Transportation Project to determine the environmental impacts
and existence of economic and physical displacements, if any.
Furthermore, the Government will ensure, directly or through MiDA (or
any other Permitted Designee), that environmental and social mitigation
measures are developed and implemented for each Project Activity under
the Transportation Project in accordance with the provisions of this
Compact and any relevant Supplemental Agreements. MiDA will ensure that
environmental and social assessment responsibilities will be included
in the bidding documents for the design or supervisory firms, the
construction firms, the independent technical auditing firms and any
project management advisors. MiDA will ensure that HIV awareness and
worker safety training will be included as well in the bidding
documents for the construction firms. In addition, any required EIAs,
EMPs and RAPs, in form and substance satisfactory to MCC, will be
developed and implemented under the Transportation Project and
monitored by MiDA as necessary during the implementation of the
Transportation Project. Any MCC Disbursements for construction will be
contingent upon issuance of environmental permits, as needed, or any
other Government statutory requirements. The Government will fund any
project-related environmental mitigation costs (including resettlement
costs) that are not already covered by MCC Funding pursuant to Sections
2(a)(ii), 2(b)(ii), and 2(c)(vii) of this Schedule 2 to Annex I.
7. Policy; Legal and Regulatory Reform
The Parties have identified the following policy, legal and
regulatory reforms and actions that the Government shall pursue in
support, and to reach the full benefits, of the Transportation Project,
the satisfactory implementation of which will be conditions precedent
to certain MCC Disbursements as provided in the Disbursement Agreement:
(a) Government shall allocate sufficient funds from GRF or other
sources to ensure proper routine and periodic maintenance of the road
network through continuing to increase GRF revenues (through fuel
levies, tolls, vehicle registration/licensing fees, among others) and
to ensure that GRF revenues are used first for maintenance before any
allocations are made for other works (such as rehabilitation).
(b) Government shall adhere to agreements reached with donors under
the RSDP and the upcoming Transport Sector Development Program.
(c) Government shall develop a maritime framework governing access
and operations on Lake Volta with respect to the Ferry Activity.
[[Page 48681]]
(d) Government shall develop and approve the emergency response
plans of VLTC with respect to the Ferry Activity.
8. Proposals
Public solicitations for proposals are anticipated to procure
goods, works and services, as appropriate, to implement all Project
Activities under the Transportation Project. MiDA will develop, subject
to MCC approval, a process for consideration of all such proposals.
Notwithstanding the foregoing, MiDA may also consider, using a process
developed subject to MCC approval, any unsolicited proposals it might
receive.
Schedule 3 to Annex I--Rural Development Project
This Schedule 3 generally describes and summarizes the key elements
of the Rural Services Development Project (the ``Rural Development
Project'') that the Parties intend to implement in furtherance of the
Rural Development Project Objective. Additional details regarding the
implementation of the Rural Development Project will be included in the
Implementation Documents and in the relevant Supplemental Agreements.
1. Background
Residents of rural areas of Ghana have spotty and frequently poor
access to basic community services such as potable water, community
sanitation, schools at all levels and domestic electricity. This has
both limited the productivity of these people and made it difficult to
attract or retain skilled entrepreneurs or workers in the rural areas.
In turn, this has limited Ghana's ability to realize the full potential
of its agricultural resources.
In the past, the Government delivered community services, such as
schools and water or sanitation facilities, with primary direction from
the central government and little input from the local governments or
the beneficiaries. Consequently, decisions on the location and the
design of community resources were frequently suboptimal, and the
resulting delivery of the related services inefficient. During the past
few years, however, the Government committed to a strategy of
decentralization to empower local governments and the beneficiaries in
the hopes of more efficient delivery of community services.
One of the major obstacles to successful implementation of this
strategy is the lack of adequately trained specialists in local
governments. For instance, the lack of capacity at the local level to
conduct public procurement results in leakage, misuse, and suboptimal
use of public resources. Therefore, the Government and the donors have
increasingly provided support to build the institutional capacity of
local government units and to support the ability of rural populations
to influence more directly the provision of community services that
impact them.
In addition, currently in Ghana, there is a shortage of credit, as
well as financial services, available in general to a large portion of
the rural populations, and in particular to those engaged in
agriculture. Much of the financial sector currently focuses on
providing capital to people in the urban areas or on shorter-term
commercial activity rather than to investments in agricultural
production, partly owing to the high risks and transaction costs in
making such loans.
Insufficiency of rural services has constrained the growth of the
private sector in rural areas. Ghana's development plans, including the
GPRS and other strategies, have been designed to foster private sector
led growth and development. However, the success of these programs has
been constrained by the lack of services in rural communities. The
Rural Development Project is designed to address each of these problems
in a coordinated fashion by improving the design and delivery of
community services through enhancing the capacity of the local
government units, by allowing the beneficiaries to provide meaningful
input on the decisions on investment in community infrastructure and by
improving the efficiency of the rural financial institutions in order
that they may serve the people in agriculture more effectively.
2. Summary of Rural Development Project and Related Projects Activities
The Rural Development Project is designed to support agricultural
and agri-business development under the Agriculture Project and to
strengthen the rural institutions that provide complementary services.
MCC Funding will support the following Project Activities:
? Strengthening of Public Sector Procurement Capacity: To
support the development of procurement professionals and reinforce the
capabilities of the Government to procure goods and services;
? Support for Community Services: To complement the
Agriculture Project by funding construction and rehabilitation of
educational facilities, construction and rehabilitation of water and
sanitation facilities and electrification of the rural areas, and by
providing capacity building support to local government institutions;
and
? Strengthening of Rural Financial Services: To automate and
interconnect the 121 rural banks and to provide other improvements in
the national payments systems that will draw a large number of people
currently not served or under-served into the financial system, and, if
there is sufficient funding and appropriate waivers are granted, to
interconnect the savings and loans institutions to the national
payments system.
The M&E Plan (described in Annex III) will set forth anticipated
results and, where appropriate, regular benchmarks that may be used to
monitor the progress of the implementation of the Rural Development
Project. Performance against these benchmarks, as well as the overall
impact of the Rural Development Project, will be assessed and reported
at the intervals to be specified in the M&E Plan, or as otherwise
agreed by the Parties, from time to time. The Parties expect that
additional indicators will be identified during implementation of the
Rural Development Project. The expected results from, and the key
benchmarks to measure progress on, the Rural Development Project, as
well as the Project Activities undertaken or funded thereunder, are set
forth in Annex III.
Estimated amounts of MCC Funding for each Project Activity for the
Rural Development Project are identified in Annex II. Conditions
precedent to each Project Activity under the Rural Development Project,
and the sequencing of such Project Activities, shall be set forth in
the Disbursement Agreement, other Supplemental Agreements or the
relevant Implementation Documents.
The following summarizes each Project Activity under the Rural
Development Project:
(a) Project Activity: Strengthening of Public Sector Procurement
Capacity (``Procurement Capacity Activity'')
The Procurement Capacity Activity is designed to strengthen the
capacity of the various procurement entities within the Government to
procure necessary goods, works and services with greater economy,
efficiency and effectiveness. It is also intended to allow such
entities to implement fully Ghana's Public Procurement Act of 2003 (Act
663) by assisting the development of training materials for the staff
of such entities, the formation of a career path within the Government,
and the placement of trainees in such procurement entities to provide
them with practical application.
[[Page 48682]]
Specifically, MCC Funding will support the following:
(i) Development of the modules for training and certification that
are relevant to the public sector and consistent with Ghana's Public
Procurement Act of 2003 (Act 663), including consultation with
educational institutions to develop a standard procurement curriculum
for use in formal procurement training programs, development of an
internationally-accepted educational program in procurement in
conjunction with other international procurement bodies such as the
Chartered Institute of Purchasing and Supply of the United Kingdom, and
introduction of such curriculum to the various institutions that will
offer courses in procurement.
(ii) Establishment of procurement as a career in public service
with clear lines of promotion and reporting by assisting the Government
in attracting a cadre of procurement professionals, in clearly defining
the career paths as a procurement professional in the Government
(including formulating the requirements for entry and promotion,
defining a procurement career path with clear job functions, grades,
promotion rules and salary structure) and establishing a well-trained
procurement staff whose duties are institutionalized within the Government.
(iii) Provision of procurement-related training to potential
procurement professionals by identifying a target group of
professionals, students and public or civil service members qualified
to enter into a structured procurement training program, establishing
agreements, policies, procedures, and protocols with the various public
and civil service organizations, educational institutions and private
sector businesses to identify and provide short term and interim
opportunities for procurement program participants to perform
procurement and supply chain activities in both public and private
sectors and establishing a procurement internship program that has
entry requirements, predetermined procurement training requirements,
clear job functions for the program, a stipend structure for internship
assignments, and rules for compliance and completion.
(b) Project Activity: Support for Community Services (``Community
Services Activity'')
The Community Services Activity is designed to complement the
Agriculture Project by providing educational, water and sanitation and
rural electrification infrastructure in the Intervention Zones and by
enhancing the capacity of local governments to deliver the related
services. These interventions are part of a larger effort by the
Government to expand the provision of basic community services
throughout Ghana, and are specifically expected to enhance the
sustainability of the Agriculture Project by providing the necessary
infrastructure to improve health of communities, to enhance skill
development through access to education, and to facilitate small-scale
post-harvest processing of agricultural products. Availability of
funding to the districts in the Intervention Zones will be a function
of population, relative poverty and actual investment performance under
the Agriculture Project. Specific investments will be driven by the
demands of local communities, prioritized through a broad-based, inclusive
process to enhance community ownership and strengthen sustainability.
Specifically, MCC Funding will support the following:
(i) Capacity building by Rural Infrastructure Coordinating Unit
(``RICU'') of the Ministry of Local Government, Rural Development and
Environment for the local government units in the Intervention Zones to
strengthen their ability to deliver community services, to manage
assets and to ensure transparency and accountability in their operations.
(ii) Rehabilitation and construction of educational facilities in
the form of primary, junior secondary and senior secondary schools, as
well as vocational and technical institutions; provided that such
rehabilitation or construction (1) is consistent with the agreed norms
of the Ministry of Education, Science and Sports, Ghana Educational
Service, and other parties as may be agreed from time to time between
MiDA and MCC, (2) is included in the list of priorities of the relevant
district's ``District Development Plan,'' and reflected in the annual
district budget and District Assembly Common Fund (``DACF'') plans, (3)
is in a community that demonstrates commitment to such rehabilitation
or construction through contributions of cash or other property
(including land and raw material) or labor, (4) is consistent with the
standards on adequacy of the provision of operating costs (including
staffing, as well as the operation and maintenance, of the facilities)
adopted by MiDA with the approval of MCC, (5) meets criteria satisfying
cost effectiveness, (6) is within a district in which the Agriculture
Project is being implemented and (7) does not create any adverse
environmental or social impact under the standards adopted by MiDA with
the approval of MCC; provided, further, that the foregoing may be
adjusted based on the results of the relevant SEA upon its completion.
(iii) Construction of water and sanitation facilities to achieve
improved health, to reduce the incidence of illness and loss of
productivity due to unsafe drinking water and poor sanitation and
hygiene, and to reduce the time required to procure potable water. MCC
Funding will be used to fund boreholes (whether mechanized or using
hand-pumps), small town pipe systems and community sanitary facilities;
provided that, such construction (1) is consistent with the agreed
norms of the Community Water and Sanitation Authority, as well as of
the Ministry of Water Resources, Works and Housing, and other parties
as may be agreed from time to time between MiDA and MCC, (2) is
included in the list of priorities of the relevant district's
``District Development Plan,'' and reflected in the annual budget and
DACF plans, (3) is in a community that demonstrates commitment to such
construction through contributions of cash or other property (including
land or raw material) or labor, (4) is consistent with the standards on
adequacy of the provision of operating costs (including staffing, as
well as the operation and maintenance, of the facilities) and cost
recovery mechanisms adopted by MiDA with approval of MCC, (5) meets
criteria satisfying cost effectiveness, (6) is within a district in
which the Agriculture Project is being implemented, (7) includes a
hygiene education module and (8) does not create any adverse
environmental or social impact under the standards adopted by MiDA with
the approval of MCC; provided, further, that the foregoing may be
adjusted based on the results of the relevant SEA upon its completion.
(iv) Expansion of rural electrification to unserved and underserved
areas for domestic uses as well as for use in irrigation, agricultural
processing and education. MCC Funding will be used to fund both on-grid
and off-grid (including photovoltaic, biofuel and micro-hydro) rural
electricity investments; provided that, such investment (1) is
consistent with the policy and strategic plans of the Ministry of
Energy, the Electric Corporation of Ghana, the Volta River Authority
and other parties as may be agreed from time to time between MiDA and
MCC, (2) is in a community that demonstrates commitment to such
construction through contributions of cash or other property (including
land or raw material) or labor, (3) is
[[Page 48683]]
consistent with the standards on adequacy of the provision of operating
costs (including staffing, as well as the operation and maintenance, of
the facilities) and cost recovery mechanisms adopted by MiDA with
approval of MCC, (4) is within a district in which the Agriculture
Project is being implemented, (5) meets criteria satisfying cost
effectiveness, and (6) does not create any adverse environmental or
social impact under the standards adopted by MiDA with the approval of
MCC; provided, further, that the foregoing may be adjusted based on the
results of the relevant SEA upon its completion.
(v) With respect to the activities identified in Sections 2(b)(ii),
(iii) and (iv) of this Schedule 3 to Annex I, the implementation of the
environmental and social mitigation measures including compensation of
individuals, residences and businesses affected by such improvements
and upgrades, consistent with the World Bank's Operational Policy on
Involuntary Resettlement (OP 4.12).
(c) Project Activity: Strengthening of Rural Financial Services
(``Financial Services Activity'')
The Financial Services Activity is designed to extend the depth and
value of financial services provided to rural populations including
farmers by reinforcing their integration into the cash economy, as well
as widening their access to savings, credit and cash transfer services.
It will build on the capabilities of the rural banks that are
privately-owned generally by members of the local communities. These
projects will connect the rural banks into the national payments
systems of Ghana, and will also facilitate internal and international
remittance flows. In addition, if there is sufficient MCC Funding, and
if Ghana Microfinance Network lacks other financial support to maintain
its microfinance institution data collection and performance monitoring
activities, MCC may, at its option, provide financial support to Ghana
Microfinance Network for such maintenance.
Specifically, MCC Funding will support the following:
(i) Extension and intensification of the program initiated under
the World Bank Rural Financial Strengthening Project to automate the
accounting systems of substantially all of the 121 rural banks (and
their branches) using a common software platform. Priority will be
given to automating those rural banks and their branches located in the
Intervention Zones.
(ii) Connection of the rural banks and their branches to a wide
area network. The rural banks and their branches will be connected
through a grid to transform their product offerings and to reduce their
operating expenses.
(iii) Support for the software to introduce check truncation,
hardware to create a system for the automated clearing of electronic
payments and technical assistance to review and propose amendments to
the existing legal and regulatory structure for payments under Ghana's
national payment system.
(iv) National campaign to educate businesses, banks, and consumers
regarding the benefits of the Financial Services Activity to generate
demand for use of the electronic payment products. A broad-based urban
and rural education campaign will demonstrate the benefits of these new
products and of the institutions that offer them.
3. Beneficiaries
The Procurement Capacity Activity will directly benefit Ghana as
approximately 11 to 15% of all goods and services produced in Ghana are
consumed through public procurements. The Community Services Activity
will primarily benefit the same populations as the Agriculture Project,
that is, the residents of the districts in the Intervention Zones.
Institutional beneficiaries will also include the local government
institutions (e.g., the district assemblies and their area councils).
Finally, rural inhabitants will benefit from the continuing devolution
and decentralization of provision of a full range of community
services, thus increasing community empowerment. The beneficiaries of
the Financial Services Activity will include the economically active
population in rural areas as actual or potential clients of the rural
banks, and more broadly, all users of financial services. The outreach
of new financial services to rural communities and the poor should
create incentives to de-emphasize cash transactions in favor of checks
and other payment instruments, and the direct savings from such
changeover will include, among others, a reduction in the national
currency printing bill, the very substantial costs of secure currency
transport, and the material interest expense that the Bank of Ghana
incurs in issuing securities to absorb excess liquidity at the end of
the cocoa season. The automation of the rural banks will also improve
and streamline the supervision of these institutions by the Bank of
Ghana, and otherwise improve the breadth and speed of management
reporting systems.
4. Donor Coordination; Role of Civil Society
The Procurement Capacity Activity complements the activities of
other donors. DFID is actively supporting the Public Procurement Board
(``PPB'') in Ghana with an interest in developing procurement capacity
within existing government bodies. The increased demand for public
sector procurement capacity created by the recent enactment of the
Public Procurement Act of 2003 (Act 663) allows for multiple donors to
be involved without duplication of efforts. In addition, policy and
regulatory initiatives funded under this Rural Development Project will
be designed to complement and support the efforts of other donors
(including the World Bank) that are leading similar initiatives at the
regional and district levels.
The Community Services Activity builds on the Community Based Rural
Development Program, funded by the World Bank and Agence
Fran[ccedil]aise de D[eacute]veloppement, strengthening local
government service delivery, providing capacity building to local
government units and building substantial enhancements to the quality
and productivity of rural communities. The Community Services Activity
will also be in line with efforts of the Government and other donors to
strengthen local government institutions in order to facilitate the
delivery of education and water and sanitation infrastructure. The
district assemblies and area councils are assuming increasing
responsibility for planning, coordinating and executing donor
activities in their respective areas.
The efforts to automate the rural banks and to connect them through
a wide-area-network under the Financial Services Activity are
extensions and intensifications of the efforts of the World Bank,
African Development Bank and International Fund for Agricultural
Development, first, to create Apex Bank to provide services to the
rural banks and, second, to begin the process of automation using a
common software.
Finally, the civil society will play a key role in community by
overseeing the organization, information dissemination, project
implementation, and monitoring and evaluation with respect to the Rural
Development Project.
5. U.S. Agency for International Development
USAID has supported a number of programs in the education sector
which led to the construction of classrooms, staff houses and latrines,
in addition to
[[Page 48684]]
a program entitled Strategies for Advancing Girls' Education. USAID has
also undertaken projects in community water and sanitation, including
provision of hygiene education. The Rural Development Project will
continue to advance the objectives of these USAID programs while also
greatly expanding on them to complement the Agriculture Project.
6. Sustainability
The Procurement Capacity Activity will create ``educational
capital,'' in the form of curricula and diploma programs, which will
serve a longer-term goal of capacity building within the Government.
The Procurement Capacity Activity is designed to continue as an
institutional capacity program after the expiration of the Compact
Term, under the direction of the PPB. During the Compact Term, the
various ministries of the Government will be required to present
sustainable and economically viable plans to maintain and provide
continuing education for their respective procurement staff. The
Community Services Activity will ensure appropriate measures for
adequate cost recovery and continuing operation and maintenance as a
condition precedent to approval of investments, providing a basis to
ensure sustainability after construction. Rural banks participate
voluntarily in the wide area network activity, subject to a commitment
to maintain equipment and service from their operating budgets beyond
the Compact Term.
The environmental and social sustainability of the Rural
Development Project will be assured through ongoing consultations with
the public regarding the manner in which the Rural Development Project
is being implemented. SEAs will be conducted in each Intervention Zone
affected by the Rural Development Project and, as necessary,
environmental and social analyses (that include an analysis of the
gender impacts of the Rural Development Project) will be conducted, as
part of the technical survey and design of major investments in any
physical infrastructure under the Rural Development Project to
determine the environmental impacts and existence of economic and
physical displacements, if any. Furthermore, the Government will
ensure, directly or through MiDA (or any other Permitted Designee),
that environmental and social mitigation measures are developed and
implemented for each Project Activity under the Rural Development
Project in accordance with the provisions of this Compact and any
relevant Supplemental Agreements. MiDA will ensure that environmental
and social assessment responsibilities will be included in the bidding
documents for the design or supervisory firms, the construction firms,
the independent technical auditing firms and any project management
advisors. MiDA will ensure that HIV awareness and worker safety
training will be included as well in the bidding documents for the
construction firms. In addition, EMPs and RAPs, in form and substance
satisfactory to MCC, will be developed and implemented under the Rural
Development Project and monitored by MiDA as necessary during the
implementation of the Rural Development Project. Any MCC Disbursements
for construction will be contingent upon issuance of environmental
permits, as needed, or any other Government statutory requirements. The
Government will fund any project-related environmental mitigation costs
(including resettlement costs) that are not already covered by MCC
Funding pursuant to Section 2(b)(v) of this Schedule 3 to Annex I.
7. Policy; Legal Reform; and Procedural Changes
The Parties have identified the following policy, legal and
regulatory reforms and actions that the Government shall pursue in
support, and to reach the full benefits, of the Rural Development
Project, the satisfactory implementation of which will be conditions
precedent to certain MCC Disbursements as provided in the Disbursement
Agreement:
(a) The PPB shall develop a funding and sustainability plan for
Procurement Capacity Activity (including the amount of such funding) in
form and substance satisfactory to MCC.
(b) Service norms defining expected provision of relevant services
to rural communities, and standards for appropriate designs, including
initial capital cost and estimated continuing operating and maintenance
costs, will be agreed among the various Government Affiliates,
including the relevant ministries, departments and agencies, and
adopted by MiDA, subject to approval of MCC, for all investments to be
undertaken under the Community Services Activity.
8. Proposals
Public solicitations for proposals are anticipated to procure
goods, works and services, as appropriate, to implement all Project
Activities under the Rural Development Project. MiDA will develop,
subject to MCC approval, a process for consideration of all such
proposals. Notwithstanding the foregoing, MiDA may also consider, using
a process developed subject to MCC approval, any unsolicited proposals
it might receive.
Annex II--Summary of Multi-Year Financial Plan
This Annex II to the Compact (the ``Financial Plan Annex'')
summarizes the Multi-Year Financial Plan for the Program. Each
capitalized term in this Financial Plan Annex shall have the same
meaning given such term elsewhere in this Compact. Unless otherwise
expressly stated, each Section reference herein is to the relevant
Section of the main body of the Compact.
1. General
A multi-year financial plan summary (``Multi-Year Financial Plan
Summary'') is attached hereto as Exhibit A. By such time as specified
in the Disbursement Agreement, MiDA will adopt, subject to MCC
approval, a Multi-Year Financial Plan that includes, in addition to the
multi-year summary of estimated MCC Funding and the Government's
contribution of funds and resources, an estimated draw-down rate for
the first year of the Compact Term based on the achievement of
performance milestones, as appropriate, and the satisfaction or waiver
of conditions precedent. Each year, at least thirty (30) days prior to
the anniversary of the Entry into Force, the Parties shall mutually
agree in writing to a Detailed Budget for the upcoming year of the
Program, which shall include a more detailed budget for such year,
taking into account the status of the Program at such time and making
any necessary adjustments to the Multi-Year Financial Plan.
2. Implementation and Oversight
The Multi-Year Financial Plan and each Detailed Budget shall be
implemented by MiDA, consistent with the approval and oversight rights
of MCC and the Government as provided in this Compact, the Governing
Documents and the Disbursement Agreement.
3. Estimated Contributions of the Parties
The Multi-Year Financial Plan Summary identifies the estimated
annual contribution of MCC Funding for Program administration, M&E and
each Project. The Government's contribution of resources to Program
administration, M&E and each Project shall consist of (a) ``in-kind''
contributions in the form of Government Responsibilities and any other
obligations and responsibilities of the Government identified in this
[[Page 48685]]
Compact, and (b) such other contributions or amounts as may be
identified in relevant Supplemental Agreements between the Parties or
as may otherwise be agreed by the Parties; provided, in no event shall
the Government's contribution of resources be less than the amount,
level, type and quality of resources required effectively to carry out
the Government Responsibilities or any other responsibilities or
obligations of the Government under or in furtherance of this Compact.
4. Modifications
The Parties recognize that the anticipated distribution of MCC
Funding among the various activities for Program administration, M&E,
the Projects and the Project Activities will likely require adjustment
from time to time during the Compact Term. In order to preserve
flexibility in the administration of the Program, as provided in
Section 4(a)(iv) of Annex I, the Parties may, upon agreement of the
Parties in writing and without amending the Compact, change the
designations and allocations of funds among the Projects, the Project
Activities, or any activity under Program administration or M&E, or
between a Project identified as of the Entry into Force and a new
project, without amending this Compact; provided, however, that such
reallocation (a) is consistent with the Objectives and the
Implementation Documents, (b) shall not materially adversely impact the
applicable Project, Project Activity (or any component thereof), or any
activity under Program administration or M&E as specified in this Annex
II, (c) shall not cause the amount of MCC Funding to exceed the
aggregate amount specified in Section 2.1(a) of this Compact, and (d)
shall not cause the Government's obligations or responsibilities or
overall contribution of resources to be less than specified in Section
2.2(a) of this Compact, this Annex II or elsewhere in the Compact.
5. Conditions Precedent; Sequencing
MCC Funding will be disbursed in tranches. The obligation of MCC to
approve MCC Disbursements and Material Re-Disbursements for the Program
is subject to satisfactory progress in achieving the Objectives and on
the fulfillment, deferral or waiver of any conditions precedent
specified in the Disbursement Agreement for the relevant activity under
the Program. The sequencing of Project Activities or sub-activities and
other aspects of how the Parties intend the Program to be implemented
will be set forth in the Implementation Documents, including the Work
Plan for the Program (and each component thereof), and MCC
Disbursements and Re-Disbursements will be made consistent with such
sequencing.
Exhibit A.--Multi-Year Financial Plan Summary
----------------------------------------------------------------------------------------------------------------
(US $ '000)
Project -----------------------------------------------------------------
Year 1 Year 2 Year 3 Year 4 Year 5 Total
----------------------------------------------------------------------------------------------------------------
1. Agriculture Project:
(a) Commercial Training Activity.......... 9,542 14,081 17,511 15,946 8,935 66,015
(b) Irrigation Activity................... ......... 942 8,679 11,378 6,609 27,608
(c) Land Activity......................... 2,790 2,698 2,343 1,705 1,152 10,688
(d) Post-Harvest Activity................. 3,641 6,504 6,747 2,782 702 20,376
(e) Credit Activity....................... 14,300 12,200 13,100 10,300 8,500 58,400
(f) Feeder Roads Activity................. 2,344 10,644 21,955 22,954 ......... 57,897
-----------------------------------------------------------------
Sub-Total............................. 32,617 47,069 70,335 65,065 25,898 240,984
-----------------------------------------------------------------
2. Transportation Project:
(a) N1 Activity........................... 13,099 11,200 18,576 28,752 29,669 101,296
(b) Trunk Roads Activity.................. 1,484 6,739 13,900 14,331 ......... 36,454
(c) Ferry Activity........................ 263 2,141 2,950 ......... ......... 5,354
-----------------------------------------------------------------
Sub-Total............................. 14,846 20,080 35,426 43,083 29,669 143,104
-----------------------------------------------------------------
3. Rural Development Project:
(a) Procurement Capacity Activity......... 447 921 950 ......... ......... 2,318
(b) Community Services Activity........... 7,500 15,000 22,500 30,000 ......... 75,000
(c) Financial Services Activity........... 7,576 5,189 7,078 4,127 ......... 23,970
-----------------------------------------------------------------
Sub-Total............................. 15,523 21,110 30,528 34,127 ......... 101,288
-----------------------------------------------------------------
4. Monitoring and Evaluation 3,000 3,000 3,000 3,000 3,000 15,000
-----------------------------------------------------------------
Sub-Total............................. 3,000 3,000 3,000 3,000 3,000 15,000
-----------------------------------------------------------------
5. Program Administration and Audits:
(a) Program Administration (MiDA)......... 4,915 5,188 5,326 5,573 5,852 26,854
(b) Fiscal Agent.......................... 300 1,073 1,608 1,678 716 5,375
(c) Procurement Agent..................... 310 1,013 1,519 1,585 677 5,104
(d) Audit................................. 1,500 1,500 1,500 1,500 1,500 7,500
(e) Strategic Environmental Assessments... 1,800 ......... ......... ......... ......... 1,800
-----------------------------------------------------------------
Sub-Total............................. 8,825 8,774 9,953 10,336 8,745 46,633
=================================================================
Total Estimated MCC Contribution...... 74,811 100,033 149,242 155,611 67,312 547,009
----------------------------------------------------------------------------------------------------------------
[[Page 48686]]
Annex III--Description of the M&E Plan
This Annex III to the Compact (the ``M&E Annex'') generally
describes the components of the Monitoring and Evaluation Plan for the
Program, and how the progress toward the Compact Goal will be measured.
Each capitalized term in this M&E Annex shall have the same meaning
given such term elsewhere in this Compact. This M&E Annex represents
the agreement between the Government and MCC on the Compact Goal and
the Objectives of the Program and the timeline for achieving them.
1. Overview
As a condition precedent to certain MCC Disbursements as provided
in the Disbursement Agreement, the parties shall formulate an M&E Plan
that specifies (a) how the implementation of the Program and progress
toward the Compact Goal and Objectives will be monitored (the
``Monitoring Component''), (b) a methodology, process and timeline for
the evaluation of planned, ongoing, or completed Projects and Project
Activities to determine their impact and likely sustainability (the
``Evaluation Component'') and (c) other components of the M&E Plan
described below. Information regarding the Program's performance,
including the M&E Plan, and any amendments or modifications thereto, as
well as periodically-generated reports, will be made publicly available
on the MiDA Web site and elsewhere. The Compact Goal, the Program
Objective and the Project Objectives are summarized in the following
diagram:
[GRAPHIC]
[TIFF OMITTED]
TN21AU06.012
2. Monitoring Component
To monitor progress toward the achievement of the Compact Goal and
the Objectives, the Monitoring Component of the M&E Plan shall contain
the following elements:
(a) Indicators. The M&E Plan shall measure the results of the
Program using quantitative, objective and reliable data
(``Indicators''). Each Indicator will have one or more targets that
quantify the result and the expected time by which that result will be
achieved (each, a ``Target''). The M&E Plan will detail the process for
measuring, and reporting on, the Indicators at several levels. First,
the indicators for the Compact Goal (each, a ``Compact Goal
Indicator'') will measure the results for the overall Program on the
intended beneficiaries (collectively, the ``Beneficiaries''). Second,
the indicators for the Program Objective (each, an ``Objective
Indicator'') will measure the ultimate result for the Program. Third,
intermediate indicators (each, an ``Outcome Indicator'') will measure
the intermediate results achieved under each of the Project Activities
(each, an ``Outcome'') in order to provide early measures of progress
towards the accomplishment of the Project Objective. Further, other
indicators will be included in the M&E Plan to measure the delivery of
goods and services under the Project Activities.
(i) Compact Goal Indicators. The M&E Plan shall contain the Compact
Goal Indicators and their definitions, as listed in the table below.
The corresponding Targets to be achieved are in the following tables:
Compact Goal Indicators: Definitions
[Compact Goal: Reduce poverty through economic growth]
------------------------------------------------------------------------
Indicator Definition
------------------------------------------------------------------------
Crop income (Northern Zone) (US$). Net income per household from
growing yams, sorghum and
groundnuts (as proxies of the most
likely crops grown).\2\ Northern
Zone is comprised of the following
five districts: Savelugu Nanton,
Tolon Kumbungu, Tamale, West
Mamprusi and Karaga.
[[Page 48687]]
Crop income (Afram Basin Zone-- Net income per household from
East) (US$). growing maize, yams and cassava (as
proxies of the most likely crops
grown). Afram Basin Zone--East is
comprised of the following two
districts: Fanteakwa and Kwahu
South.
Crop income (Afram Basin Zone-- Net income per household from
West) (US$). growing maize, yams and cassava (as
proxies of the most likely crops
grown). Afram Basin Zone--West is
comprised of the following four
districts: Ejura Sekyedumasi, Afram
Plains, Sekyere East and Sekyere
West.
Crop income (Southern Zone) (US$). Net income per household from
growing pineapples and vegetables
(as proxies of the most likely
crops grown). Southern Zone is
comprised of the following twelve
districts: Gomoa, Awutu Efutu
Senya, Akuapim South, Manya Krobo,
Dangme West, Yilo Krobo, North
Dayi, Hohoe, Ketu, Keta, South
Tongu and Akatsi.
Aggregate poverty gap of Income value at the poverty line
beneficiaries (US$). minus average income of
beneficiaries, multiplied by the
number of beneficiaries,
disaggregated by each Intervention
Zone. Income value at the poverty
line is defined by the Ghana
Statistical Service's Ghana Living
Standards Survey. The fifth round
of this survey was conducted in
2006.
------------------------------------------------------------------------
\2\ Data will be reported on actual crops grown in all Intervention
Zones. Proxies were used to estimate baseline and target values.
Compact Goal Indicators: Baselines and Targets
[Compact Goal: Reduce poverty through economic growth]
----------------------------------------------------------------------------------------------------------------
Targets/Year
Indicator -----------------------------------------------------------------------------
Baseline 1 2 3 4 5
----------------------------------------------------------------------------------------------------------------
Crop income (Northern Zone) (US$). \3\ $700 ......... ......... ......... ......... \4\ 135% increase
over baseline.
Crop income (Afram Basin Zone-- \5\ 820 ......... ......... ......... ......... \6\ 55% increase over
East) (US$). baseline.
Crop income (Afram Basin Zone-- \7\ 540 ......... ......... ......... ......... \8\ 42% increase
West) (US$). over baseline.
Crop income (Southern Zone) (US$). \9\ ......... ......... ......... ......... \10\ 33% increase
1,860 over baseline.
Aggregate poverty gap of TBD TBD (during the second quarter of 2007)
beneficiaries (US$).
----------------------------------------------------------------------------------------------------------------
\3\ Baseline assumes that 2 hectares are cultivated.
\4\ Target assumes that 2.2 hectares are cultivated.
\5\ Baseline assumes that 1 hectare is cultivated.
\6\ Target assumes that 1.1 hectares are cultivated.
\7\ Baseline assumes that 1 hectare is cultivated.
\8\ Target assumes that 1.1 hectares are cultivated.
\9\ Baseline assumes that 2 hectares are cultivated.
\10\ Target assumes that farmers transition from maize, yam and cassava production to 2 hectares of pineapple
and 1 hectare of vegetable cultivation.
(ii) Objective Indicators and Outcome Indicators. The M&E Plan
shall contain the Objective Indicators and Outcome Indicators and their
definitions, as listed in the tables below. The corresponding Targets
to be achieved are in the tables following the definitions.
Objective Indicators: Definitions
------------------------------------------------------------------------
Indicator Definition
------------------------------------------------------------------------
Objective: Increase production and productivity of high-value cash and
food crops in the Intervention Zones in Ghana..
------------------------------------------------------------------------
Production of staple crops (metric Metric tons of maize, yams, cassava
tons). and groundnuts (as proxies of most
likely crops grown) grown and
produced by the FBOs participating
in the Program.
Production of high-value crops Metric tons of pineapple (as proxy
(metric tons). of most likely crop grown) grown
and produced by the FBOs
participating in the Program, of
which 60% are for export markets
and 40% for domestic markets.
Productivity of land (metric tons/ Metric tons/hectare of maize (as
hectare): maize. proxy of most likely crop grown)
grown and produced.
Productivity of land in the Metric tons/hectare of yam (as proxy
Northern Zone (metric tons/ of most likely crop grown) grown
hectare): yams. and produced.
Productivity of land (metric tons/ Metric tons/hectare of pineapple (as
hectare): export-grade pineapple. proxy of most likely crop grown)
grown and produced.
------------------------------------------------------------------------
Objective: Enhance the competitiveness of high-value cash and food crops
in local and international markets.
------------------------------------------------------------------------
Additional Ghanaian agriculture Additional metric tons of pineapple
exports (metric tons): pineapple. (as proxy of most likely crop
exported) exported.
[[Page 48688]]
Additional Ghanaian agriculture Additional metric tons of Asian
exports (metric tons): Asian vegetables (as proxy of most likely
vegetables. crop exported) exported.
The ratio of (i) price of Ghanaian Price (including cost of Cargo,
imported into European markets Insurance and Freight) of pineapple
(Euro/kg) to (ii) price of non- (as proxy of most likely crop
Ghanaian imported into European exported), imports into the
market (Euro/kg). European markets from Ghana,
divided by price (including cost of
Cargo, Insurance and Freight) of
pineapple imported into the
European markets from countries
other than Ghana. Import data will
be based on information published
by Eurostat.
------------------------------------------------------------------------
Objective Indicators: Baselines and Targets
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year
Indicator -------------------------------------------------------------------------------------------------------------------
Baseline 1 2 3 4 5
--------------------------------------------------------------------------------------------------------------------------------------------------------
Objective: Increase production and productivity of high-value cash and food crops in the Intervention Zones in Ghana.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Production of staple crops (metric 430,000 ..... ....................... 1% increase over 4% increase over 11% increase over
tons). baseline. baseline. baseline.
Production of high-value crops 225,000 ..... 2% increase over 5% increase over 16% increase over 50% increase over
(metric tons). baseline. baseline. baseline. baseline.
Productivity of land (metric tons/ 1.9 ..... ....................... 1% increase over 4% increase over 12% increase over
hectare): maize. baseline. baseline. baseline.
Productivity of land in the Northern 7 ..... ....................... 61% increase over 65% increase over 75% increase over
Zone (metric tons/hectare): yams. baseline. baseline. baseline.
Productivity of land (metric tons/ 8 ..... ....................... 1% increase over 8% increase over 26% increase over
hectare): export-grade pineapple. baseline. baseline. baseline.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Objective: Enhance the competitiveness of high-value cash and food crops in local and international markets.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Additional Ghanaian agriculture 0 ..... ....................... 8,300.................. 14,500................ 21,700.
exports (metric tons): pineapple.
Additional Ghanaian agriculture 0 ..... ....................... 1,344.................. 2,192................. 3,178.
exports (metric tons): Asian
vegetables.
The ratio of (i) price of Ghanaian 0.75 ..... ....................... 0.75................... 0.78-0.81............. 0.81-0.88.
imports into European markets (Euro/
kg) to (ii) price of non-Ghanaian
imports into European market (Euro/
kg).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Outcome Indicators: Definitions
[Agriculture Project]
------------------------------------------------------------------------
Indicator Definition
------------------------------------------------------------------------
Number of farmers adopting new Number of farmers in the FBOs
technologies and farming methods. participating in the Program that
adopt new technologies methods and
farming methods, assuming an 85%
adoption rate.
Percentage of post harvest loss at (i) Metric tons of post harvest
farmgate (metric lost/metric tons lost, divided by (ii) metric tons
produced). of total harvest tons produced at
the farmgate.
SMEs processing products and/or TBD.
providing inputs to farmers.
Irrigation Activity:
Number of hectares irrigated.. Number of hectares irrigated as a
result of the Program.
Land Activity:
Number of days to conduct a Number of days to purchase, rent or
land transaction. sell a parcel of land from
initiation of negotiation with
current landowner to registration
in title or deeds registry of the
property right acquired.
Number of land disputes in the Number of land disputes encountered
pilot registration districts. during inventory of land rights for
the pilot registration districts
and on record at the relevant
district courts as of Entry into
Force, disaggregated by region.
Registration of land rights in Percentage of targeted parcels
the pilot registration registered in the title registry.
districts.
Post-Harvest Activity:
Volume of products passing Metric tons of pineapple, among
through post-harvest other crops, passing through small-
treatment (metric tons). scale storage facilities, packhouse
pre- coolers or packhouses.
Credit Activity:
Portfolio-at-risk of Share of value of all loans
agricultural loan fund. disbursed from the agricultural
loan that have one or more fund
installments of principal or
interest past due over thirty (30)
days, disaggregated by short-term
and medium-term loans.
[[Page 48689]]
Value of loans disbursed to Value of loans disbursed from the
clients from agricultural agricultural loan fund for on-farm
loan fund (US$). and off-farm investment by
institutions (including financial
institutions, input suppliers,
etc.), disaggregated by short-term
and medium-term loans.
Number of additional loans.... Number of loans disbursed from the
agricultural loan fund for on-farm
and off-farm investment by
institutions (including financial
institutions, input suppliers,
etc.), disaggregated by short-term
and medium-term loans.
Feeder Roads Activity:
Vehicle operating costs (on Vehicle operating costs including
roads requiring minor both operation and maintenance
rehabilitation). costs and travel time,
disaggregated by road segment.
Minor rehabilitation consists of re-
gravelling (i.e., change from poor
gravel to improved gravel surface).
Vehicle operating costs (on Vehicle operating costs including
roads requiring medium both operation and maintenance
rehabilitation). costs and travel time,
disaggregated by road segment.
Medium rehabilitation consists of
upgrading road surface from average
gravel to bitumen surface.
Vehicle operating costs (on Vehicle operating costs including
roads requiring major both operation and maintenance
rehabilitation). costs and travel time,
disaggregated by road segment.
Major rehabilitation consists of
upgrading road surface from poor
gravel to bitumen surface.
------------------------------------------------------------------------
Outcome Indicators: Definitions
[Transportation Project]
------------------------------------------------------------------------
Indicator Definition
------------------------------------------------------------------------
N-1 Activity:
------------------------------------------------------------------------
Outcome Indicators: Definitions
[Transportation Project]
------------------------------------------------------------------------
Indicator Definition
------------------------------------------------------------------------
Volume capacity ratio........ Number of vehicles on road divided by the
number of vehicles at road capacity.
Vehicles per hour at peak Number of vehicles on road, disaggregated
hour. by vehicle type, at peak traffic hour.
Travel time at peak hour..... Travel time in minutes to traverse the 14
kilometers of road upgraded at peak
traffic hour.
International roughness index Road-surface quality measure (meters in
height per kilometers distance).
Trunk Roads Activity:
Annual average daily Number of vehicles per day adjusted for
traffic. time-of-day and seasonal differences for
each road, disaggregated by vehicle
type. Rate of increase in traffic volume
is in addition to the estimated growth
rate in traffic of 6%.
International roughness Road-surface quality measure (meters in
index (of roads height per kilometers distance) for each
requiring minor road. Minor rehabilitation consists of
rehabilitation). re-gravelling (i.e., change from poor
gravel to improved gravel surface).
International roughness Road-surface quality measure (meters in
index (of road requiring height per kilometers distance) for each
major rehabilitation). road. Major rehabilitation consists of
upgrading road surface from poor gravel
to bitumen surface.
Ferry Activity:
Travel time for walk-on Average time spent by walk-on passengers
passengers and small and small vehicles to cross Volta River,
vehicles. including time spent waiting to board
ferry and to on- and off-load.
Travel time for trucks... Average time spent by trucks to cross
Lake Volta, including time spent waiting
to board ferry and to on- and off-load.
Annual average daily Number of vehicles per day, adjusted for
traffic (vehicle). time-of-day and seasonal differences,
disaggregated by vehicles type.
Annual average daily Number of passengers per day, adjusted
traffic (passengers). for time-of-day and seasonal
differences.
------------------------------------------------------------------------
Outcome Indicators: Definitions
[Rural Development Project]
------------------------------------------------------------------------
Indicator Definition
------------------------------------------------------------------------
Procurement Capacity
Activity:
Time per procurement..... Amount of time to execute contract award
from the point of receiving a
requirement for processing to contract
award, disaggregated by the size of each
award as follows: (i) US$ 2,500 and
below, (ii) US$ 2,501-US$ 10,000, (iii)
US$ 10,001-US$ 100,000, (iv) US$ 100,001-
US$ 500,000 and (v) US$ 500,001 and
above.
[[Page 48690]]
Quality of procurement... A randomly-selected sample of
procurements will be evaluated each year
to assess the outcomes of the
procurements as compared to the outcomes
of similar procurements in the districts
not participating in the Program.
Community Services Activity:
Local Government Service
Delivery Sub-Activity:
Score card of citizen TBD.
satisfaction with
services.
Education Facilities Sub-
Activity:
Gross enrollment rates... Number of students enrolled in school
divided by the number of individuals of
appropriate school age, in the relevant
district (or other area).
Gender parity in school Number of females enrolled in school
enrollment. divided by the number of males enrolled
in school.
Water and Sanitation
Facilities Sub-Activity:
Distance to collect water Distance between house and water source
in kilometers.
Time to collect water.... Time spent collecting water, including
travel and waiting time.
Distance to sanitation Distance between house and sanitation
facility. facility in kilometers.
Travel time to sanitation Time spent traveling to and waiting at
facility. sanitation facility.
Incidence of guinea worm, Number of individuals suffering from
diarrhea or bilharzia. illness attributed to guinea worm,
diarrhea and bilharzia divided by the
number of individuals, in the relevant
district (or other area).
Average number of days Number of days spent accessing treatment
lost due guinea worm, and recovering from illness attributed
diarrhea or bilharzia. to guinea worm, diarrhea or bilharzia.
Rural Electrification Sub-
Activity:
Percentage of households, Number of houses, schools and
schools and agricultural agricultural processing plants with
processing plants in electricity connections divided by the
target districts with total number of households, schools, and
electricity. agricultural processing plants in the
relevant district (or other processing
area).
Financial Services Activity:
Number of inter-bank Number of checks received by rural banks
transactions. plus number of remittances received by
rural banks.
Value of deposit accounts Cedi value of total deposits in rural
in rural banks. banks.
------------------------------------------------------------------------
Outcome Indicators: Baselines and Targets
[Agriculture Project]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Targets / year
Indicator -------------------------------------------------------------------------------------------------------------------
Baseline 1 2 3 4 5
--------------------------------------------------------------------------------------------------------------------------------------------------------
Commercial Training Activity:
Number of farmers adopting new 0 ..... 5,100.................. 12,750................. 15,300................ 17,850.
technologies and farming
methods.
Percentage of post harvest lost 20% ..... 10-14%................. 10-14%................. 10-14%................ 10-14%.
at farmgate (metric tones lost/
metric tons produced).
SMEs processing products and/or TBD TBD
providing inputs to farmers.
Irrigation Activity:
Number of hectares irrigated.... 0 0 280.................... 1,100.................. 1,720................. 1,960.
Land Activity:
Number of days to conduct a land TBD ..... 50% decrease from 67% decrease from
transaction. baseline. baseline.
Number of land disputes in the TBD ..... ....................... 30% decrease from ...................... 50% decrease from
pilot registration districts. baseline. baseline.
Registration of land rights in TBD ..... ....................... 30% increase from ...................... 100% increase from
the pilot registration baseline. baseline.
districts.
Post-Harvest Activity:
[[Page 48691]]
Volume of products passing 0 ..... 111,820................ 129,900................ 143,400...............
through post-harvest treatment
(metric tons).
Credit Activity:
Portfolio-at-risk of 0% ..... 20%.................... 20%.................... 20%................... 20%.
agricultural loan fund.
Value of loans disbursed to 0 ..... 4,500.................. 12,000................. 14,500................ 17,000.
clients from agricultural loan
fund(US$).
Number of additional loans...... 0 ..... 5,000.................. 13,000................. 15,500................ 18,000.
Feeder Roads Activity:
Vehicle operating costs (on TBD ..... ....................... 20% decrease from 20% decrease from 20% decrease from
roads requiring minor baseline. baseline. baseline.
rehabilitation).
Vehicle operating costs (on TBD ..... ....................... 30% decrease from 30% decrease from 30% decrease from
roads requiring medium baseline. baseline. baseline.
rehabilitation).
Vehicle operating costs (on TBD ..... ....................... 40% decrease from 40% decrease from 40% decrease from
roads requiring major baseline. baseline. baseline.
rehabilitation).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Outcome Indicators: Baselines and Targets
[Transportation Project]
----------------------------------------------------------------------------------------------------------------
Targets / year
Indicator ----------------------------------------------------------------------------------
Baseline 1 2 3 4 5
----------------------------------------------------------------------------------------------------------------
N-1 Activity:
Volume capacity ratio.... 0.85-1.......... ..... ......... ......... ................ 0.26.
Vehicles per hour at peak >2000........... ..... ......... ......... ................ 3,120.
hour.
Travel time at peak hour. 60 minutes...... ..... ......... ......... ................ 20 minutes.
International roughness TBD............. ..... ......... ......... ................ 2.5.
index.
Trunk Roads Activity:
Annual average daily 570............. ..... ......... ......... 35% increase in 35% increase in
traffic. traffic volume. traffic volume.
International roughness 9-12............ ..... ......... 6.0 6.0............. 6.0.
index (of roads
requiring minor
rehabilitation).
International roughness 9-12............ ..... ......... 3.5 3.5............. 3.5.
index (of roads
requiring major
rehabilitation).
Ferry Activity:
Travel time for walk-on 150 minutes..... TBD
passengers and small
vehicles.
Travel time for trucks... 370 minutes..... TBD
Annual average daily 53.............. TBD
traffic (vehicle).
Annual average daily 541............. TBD
traffic (passenger).
----------------------------------------------------------------------------------------------------------------
Outcome Indicators: Baselines and Targets
[Rural Development Project]
----------------------------------------------------------------------------------------------------------------
Targets/years
Indicator Baseline ------------------------------------------------------
1 2 3 4 5
----------------------------------------------------------------------------------------------------------------
Procurement Capacity Activity:
================================================================================================================
Time per procurement........................................................................................
Quality of procurement......................................................................................
================================================================================================================
Community Services Activity:
================================================================================================================
Score card of citizen satisfaction with services............................................................
================================================================================================================
Education Facilities Sub-Activity:
================================================================================================================
Gross enrollment rates......................................................................................
Gender parity in school enrollment..........................................................................
================================================================================================================
[[Page 48692]]
Water and Sanitation Facilities Sub-Activity:
================================================================================================================
Distance to collect water...................................................................................
Time to collect water.......................................................................................
Distance to sanitation facility.............................................................................
Travel time to sanitation facility..........................................................................
Incidence of guinea worm, diarrhea or bilharzia.............................................................
Average number of days lost due guinea worm, diarrhea or bilharzia..........................................
================================================================================================================
Rural Electrification Sub-Activity:
================================================================================================================
Percentage of households, schools and agricultural processing plants in target districts with electricity...
================================================================================================================
Financial Services Activity:
================================================================================================================
Number of inter-bank transactions...........................................................................
Value of deposit accounts in rural banks....................................................................
----------------------------------------------------------------------------------------------------------------
(iii) The M&E Plan will also include a number of activity-level
measures that will track progress toward realizing the direct outputs
of the Projects and Project Activities. Examples of the indicators
likely to be included in the M&E Plan are:
(1) Number of farmers receiving commercial training;
(2) Number of irrigation facilities built; and
(3) Kilometers of road upgraded.
(b) Beneficiaries. The M&E Plan shall describe the Beneficiaries in
detail, including the expected number of beneficiaries, their income,
gender and other general demographic characteristics.
(c) Data Collection and Reporting. The M&E Plan shall establish
guidelines for data collection and a reporting framework, including a
schedule of Program reporting and responsible parties. In addition,
MiDA shall conduct regular assessments of Program performance to
measure progress on the Compact Goal and the Objectives, and to alert
all Parties to any problems in implementation of the Program. These
assessments will report actual results compared to the Targets on the
Indicators referenced in the Monitoring Component, explain deviations
between these actual results and Targets, and describe any planned
actions to address performance problems. MiDA shall promptly deliver
any data or reports it receives to MCC along with any other related
documents, as specified in the M&E Plan or as may be requested from
time to time by MCC, and will make these assessments available to the
public on their Web site.
(d) Data Quality Reviews. As determined in the M&E Plan or as
otherwise requested by MCC, the quality of the data gathered through
the M&E Plan shall be reviewed to ensure that data reported are as
reliable, timely and valid as resources will allow. The objective of
any data quality review will be to verify the quality and the
consistency of performance data, across different implementation units
and reporting institutions. Such data quality reviews also will serve
to identify where consistent levels of quality are not possible, given
in-country capacity or other constraints.
3. Evaluation Component
The Program shall be evaluated on the extent to which the Projects
contribute to the Compact Goal and Objectives. The Evaluation Component
shall contain the methodology for conducting the most rigorous impact
evaluations feasible and cost-effective, as well as the process and
timeline for analyzing data. The Evaluation Component shall contain two
types of reports: a Final Evaluation and Project, Project Activity, or
Interim Evaluations.
(a) Final Evaluation. MCC will engage an independent evaluator to
conduct an evaluation of the Program at the expiration or early
termination of the Program (``Final Evaluation''). The evaluation
methodology, timeline, data collection, and analysis requirements will
be finalized and detailed in the M&E Plan. The Final Evaluation shall,
at a minimum, (i) estimate quantitatively and in a statistically valid
way, the causal relationship between the Compact Goal (to the extent
possible), the Objectives and Outcomes; (ii) determine if, and analyze
the reasons why, the Compact Goal, Objectives and Outcomes were or were
not achieved; and (iii) assess the overlapping benefits of the Projects.
(b) Project, Project Activity or Interim Evaluations. The
Evaluation Component in the M&E Plan will also describe other
individual Project, Project Activity, or interim evaluations (``Interim
Evaluations''). The evaluation methodology, timeline, data collection,
and analysis requirements will be finalized and detailed in the M&E
Plan. Determination of the evaluation methodologies will be condition
precedent for certain MCC Disbursements as provided in the Disbursement
Agreement.
(c) Ad Hoc Evaluations or Special Studies. In addition to the
evaluations described in the M&E Plan, MCC may require ad hoc
evaluations or special studies prior to the expiration of the Compact
Term. If MiDA engages an evaluator, the evaluator shall be an
externally contracted independent source, subject to the prior written
approval of MCC, for terms of reference and final selection, following
a tender in accordance with the Procurement Guidelines, and otherwise
in accordance with any relevant Implementation Letter or Supplemental
Agreement. The cost of an independent evaluation or special study may
be paid from MCC Funding. If MiDA requires an ad hoc independent
evaluation or
[[Page 48693]]
special study at the request of the Government for any reason,
including for the purpose of contesting an MCC determination with
respect to a Project or Project Activity or to seek funding from other
donors, no MCC Funding or MiDA resources may be applied to such
evaluation or special study without MCC's prior written approval.
4. Other Components of the M&E Plan
In addition to the Monitoring Component and the Evaluation
Component, the M&E Plan shall include the following components for the
Program, Projects and Project Activities, including, where appropriate,
roles and responsibilities of the relevant parties and Providers:
(a) Costs. A detailed annual budget 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 Objectives and
Outcomes; provided such assumptions and risks shall not excuse
performance of the Parties, unless otherwise expressly agreed to in
writing by the Parties.
5. Implementation of the M&E Plan
(a) Approval and Implementation. The approval and implementation of
the M&E Plan, as amended from time to time, shall be in accordance with
this M&E Annex, and any other relevant Supplemental Agreement or
Implementation Document. A review of the completed portions of the M&E
Plan by the Board of MiDA shall be required prior to the expiration of
the first year of the Program. Review and approval of the M&E Plan
shall be completed by time specified in the Disbursement Agreement.
(b) MCC Disbursement for a Project Activity. As a condition to
certain MCC Disbursements as provided in the Disbursement Agreement,
there shall be satisfactory progress on the M&E Plan for the relevant
Project or Project Activity, and substantial compliance with the M&E
Plan, including any reporting requirements. In addition, for certain
activities, collection of baseline data will be condition precedent for
certain MCC Disbursements as provided in the Disbursement Agreement.
(c) Modifications. Notwithstanding anything to the contrary in the
Compact, including the requirements of this M&E Annex, the Parties may
modify or amend the M&E Plan or any component thereof, including those
elements described herein, without amending this Compact; provided, any
such modification or amendment of the M&E Plan shall be reviewed by the
Board of MiDA and approved by MCC in writing, and is otherwise
consistent with the requirements of this Compact and its Objectives,
and any relevant Supplemental Agreement between the Parties.
[FR Doc. 06-6914 Filed 8-18-06; 8:45 am]
BILLING CODE 9210-01-P