TREATIES AND OTHER INTERNATIONAL ACTS SERIES 17-630

________________________________________________________________________

FOREIGN ASSISTANCE

Millennium Challenge Compact 

Between the 

UNITED STATES OF AMERICA

and MOROCCO

Signed at Rabat November 30, 2015

with

Annexes 
 NOTE BY THE DEPARTMENT OF STATE

 Pursuant to Public Law 89—497, approved July 8, 1966

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued

under the authority of the Secretary of State shall be competent

evidence . . . of the treaties, international agreements other than

treaties, and proclamations by the President of such treaties and

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime

jurisdiction, and in all the tribunals and public offices of the

United States, and of the several States, without any further proof

or authentication thereof.”
 MOROCCO

 Foreign Assistance

 Millennium Challenge Compact

 signed at Rabat November 30, 2015;

 Entered into force June 30, 2017.

 With annexes.
MILLENNIUM CHALLENGE COMPACT 


BETWEEN 


THE UNITED STATES OF AMERICA 


ACTING THROUGH 


THE MILLENNIUM CHALLENGE CORPORATION 


AND 


THE KINGDOM OF MOROCCO 


'l 
Article I. 
 Goal and Objectives .......................................................................................... 1 


Section 1.1 
 Compact Goal ............................................................................................. 1 


Section 1.2 
 Project Objectives ....................................................................................... I


Article 2. 
 Funding and Resources ..................................................................................... 2 


Section 2.1 
 Program Funding ........................................................................................ 2 


............................................................. 2 


............................................................................................. 3 


.............................................................................................. 3 


........................................................................................................ 3 


................................................................. 3 


................................................... 4 


........................................................................................................... 4 


................................................................ 5 


Section 2.2 
 Compact Implementation Funding 

Section 2.3 
 MCC Funding 

Section 2.4 
 Disbursement 

Section 2.5 
 Interest. 

Section 2.6 
 Government Resources; Budget 

Section 2.7 
 Limitations on the Use of MCC Funding 

Section 2.8 
 Taxes 

Section 2.9 
 Lower Middle Income Countries 

Article 3. 
 Implementation ................................................................................................. 5 


Section 3.1 
 Program Implementation Agreement.. ........................................................ 5 


...................................................................... 5 


..................................................................................... 6 


............................................................................. 6 


............................................................................... 6 


.............................................................................. 6 


..................................... 7 


.......................................................................................... 7 


Section 3.2 
 Government Responsibilities 

Section 3.3 
 Policy Performance 

Section 3.4 
 Accuracy of Information 

Section 3.5 
 Implementation Letters 

Section 3.6 
 Procurement and Grants 

Section 3.7 
 Records; Accounting; Covered Providers; Access 

Section 3.8 
 Audits; Reviews 

Article 4. 
 Communications ............................................................................................... 8 


Section 4.1 


Section 4.2 
 Representatives ........................................................................................... 9 


Section 4.3 
 Signatures .................................................................................................. 10


Article 5. 

Section 5.1 
 Termination; Suspension .......................................................................... 10 


........................ 11 


.................................................................................... 11 


............................................................................... 11 


..................................................................................................... 11 


Section 5.2 
 Consequences of Termination, Suspension or Expiration 

Section 5.3 
 Refunds; Violation 

Section 5.4 
 Late Payment Interest 

Section 5.5 
 Survival 

Article 6. 
 Compact Annexes; Amendments; Governing Law ........................................ 11 


Section 6.1 
 Annexes..................................................................................................... 11 


............................................................... 12 


.......................................................................................... 12 


Section 6.2 
 Amendments and Modifications 

Section 6.3 
 Inconsistencies 

MILLENNIUM CHALLENGE COMPACT 


TABLE OF CONTENTS 


' . ·. . . '" 8 
 Communications ........................................................................................ . 


Termination; Suspension; Expiration ............................................................. I 0 

Section 6.4 Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 


Section 6.5 Additional Instruments .............................................................................. 12 


Section 6.6 References to MCC Website..................................................................... 12 


Section 6.7 References to Laws, Regulations, Policies and Guidelines; 


References to Compact Expiration and Termination ................................ 12 


Section 6.8 MCC Status ............................................................................................... 13 


Article 7. Entry Into Force .............................................................................................. 13 


Section 7.1 Domestic Procedures ................................................................................ 13 


Section 7.2 Conditions Precedent to Entry into Force ................................................. 13 


Section 7.3 Date of Entry into Force ........................................................................... 14 


Section 7.4 Co1npact Tenn .......................................................................................... 14 


Section 7.5 Provisional Application ............................................................................ 14 


Article 8. Additional Government Covenants................................................................. 14 


Section 8.1 Project Covenants ..................................................................................... 14 


Annex I: Program Description 

Annex II: Multi-Year Financial Plan Summary 

Annex III: Compact Monitoring and Evaluation Summary 

Annex IV: Conditions Precedent to Disbursement of Compact Implementation Funding 

Annex V: Definitions 

II 
MILLENNIUM CHALLENGE COMPACT 

PREAMBLE 

This MILLENNIUM CHALLENGE COMPACT (this "Compact") is between the United 

States of America, acting through the Millennium Challenge Corporation, a United States 

government corporation ("MCC'), and the Kingdom of Morocco ("Morocco"), acting through 

its government (the "Government") (individually, a "Party" and collectively, the "Parties"). 

Capitalized terms used in this Compact will have the meanings provided in Annex V. 

Recalling that the Parties successfully concluded an initial Millennium Challenge 

Compact that advanced the progress of Morocco in achieving lasting economic growth and 

poverty reduction, demonstrated the strong partnership between the Parties, and was 

implemented in accordance with MCC's core policies and standards; 

Recognizing that the Parties are committed to the shared goals of promoting economic 

growth and the elimination of extreme poverty in Morocco, and that MCC assistance under this 

Compact supports Morocco's demonstrated commitment to strengthening good governance, 

economic freedom and investments in people; 

Recalling that the Government consulted with the private sector and civil society of 

Morocco to determine the priorities for the use of MCC assistance, and developed and submitted 

to MCC a proposal for such assistance to achieve lasting economic growth and poverty 

reduction; and 

Recognizing that MCC wishes to help Morocco implement the program described herein 

to achieve the goal and objectives described herein (as such program description and objectives 

may be amended from time to time in accordance with the terms hereof, the "Program"); 

The Parties hereby agree as follows: 

ARTICLE 1. 

GOAL AND OBJECTIVES 

Section 1.1 Compact Goal. The goal of this Compact is to reduce poverty through economic 

growth in Morocco (the "Compact Goar'). MCC's assistance will be provided in a manner that 

strengthens good governance, economic freedom, and investments in the people of Morocco. 

Section 1.2 Project Objectives. The Program consists of the projects described in Annex I 

(each a "Project" and collectively, the "Projects''). The objective of each of the Projects (each a 

"Project Objective" and collectively, the "Project Objectives") is to: 

(a) increase the employability and employment rate of Moroccans by improving the 

quality and relevance of, and equitable access to, secondary education and workforce 

development programs in response to private sector needs (the "Employability Project 

Objective"); and 

(b) increase land productivity in Morocco by enabling land markets to better respond 

to investor demand and by strengthening the enabling environment for investment (the "Land 

Project Objective"). 
ARTICLE2. 


FUNDING AND RESOURCES 


Section 2.1 Program Funding. 

Upon entry into force of this Compact in accordance with Section 7.3, MCC will grant to the 

Government, under the terms of this Compact, an amount not to exceed Four Hundred TwentyEight Million Six Hundred Forty-Eight Thousand United States Dollars (US$428,648,000) 

("Program Funding") for use by the Government to implement the Program. The allocation of 

Program Funding is generally described in Annex II. 

Section 2.2 Compact Implementation Funding. 

(a) Upon the signing of this Compact, MCC will grant to the Government, under the 

terms of this Compact and in addition to the Program Funding described in Section 2.1, an 

amount not to exceed Twenty-One Million Three Hundred Fifty-Two Thousand United States 

Dollars (US$21,352,000) ("Compact Implementation Funding") under Section 609(g) of the 

Millennium Challenge Act of 2003, as amended (the "MCA Act"), for use by the Government to 

facilitate implementation of this Compact, including for the following purposes: 

(i) financial management and procurement activities; 

(ii) administrative activities (including start-up costs such as staff salaries) and 

administrative support expenses such as rent, computers, and other information technology or 

capital equipment; 

(iii) monitoring and evaluation activities; · 

(iv) feasibility, design, and other project preparatory studies and activities; and 

(v) other activities to facilitate Compact implementation as approved by 

MCC. 

The allocation of Compact Implementation Funding is generally described in Annex II. 

(b) In accordance with Section 7.5, this Section 2.2 and other provisions of this 

Compact applicable to Compact Implementation Funding will be effective, for purposes of 

Compact Implementation Funding only, as of the date this Compact is signed by MCC and the 

Government. 

(c) Each Disbursement of Compact Implementation Funding is subject to satisfaction 

of the conditions precedent to such Disbursement as set forth in Annex IV. 

(d) IfMCC determines that the full amount of Compact Implementation Funding 

available under Section 2.2(a) exceeds the amount that reasonably can be utilized for the 

purposes set forth in Section 2.2(a), MCC, by written notice to the Government, may withdraw 

the excess amount, thereby reducing the amount of the Compact Implementation Funding 

available under Section 2.2(a) (such excess, the "Excess CIFAmount"). In such event, the 

amount of Compact Implementation Funding granted to the Government under Section 2.2(a) 

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will be reduced by the Excess CIF Amount, and MCC will have no further obligations with 

respect to such Excess CIF Amount. 

(e) MCC, at its option by written notice to the Government, may elect to grant to the 

Government an amount equal to all or a portion of such Excess CIF Amount as an increase in the 

Program Funding, and such additional Program Funding will be subject to the terms and 

conditions of this Compact applicable to Program Funding. 

Section 2.3 MCC Funding. 

Program Funding and Compact Implementation Funding are collectively refetTed to in this 

Compact as "MCC Funding," and includes any refunds or reimbursements of Program Funding 

or Compact Implementation Funding paid by the Government in accordance with this Compact. 

Section 2.4 Disbursement. 

In accordance with this Compact and the Program Implementation Agreement, MCC will 

disburse MCC Funding for expenditures incurred in furtherance of the Program (each instance, a 

"Disbursement"). Subject to the satisfaction of all applicable conditions precedent, the proceeds 

of Disbursements will be made available to the Government, at MCC's sole election, by (a) 

deposit to one or more bank accounts established by the Government and acceptable to MCC 

(each, a "Permitted Account") or (b) direct payment to the relevant provider of goods, works or 

services for the implementation of the Program. MCC Funding may be expended only for 

Program expenditures. 

Section 2.5 Interest. The Government will pay or transfer to MCC, in accordance with the 

Program Implementation Agreement, any interest or other earnings that accrue on MCC Funding 

prior to such funding being used for a Program purpose. 

Section 2.6 Government Resources; Budget. 

(a) Consistent with Section 609(b)(2) of the MCA Act, the Government will make a 

contribution towards meeting the Project Objectives of this Compact. Annex II describes such 

contribution in more detail. In addition, the Government will provide all funds and other 

resources, and ·will take all other actions, that are necessary to carry out the Government's 

responsibilities under this Compact. 

(b) The Government will use its best efforts to ensure that all MCC Funding it 

receives or is projected to receive in each of its fiscal years is accounted for in its annual budget 

for the duration of the Program. 

(c) The Government will not reduce the normal and expected resources that it would 

otherwise receive or budget from sources other than MCC for the activities contemplated under 

this Compact and the Program. 

(d) Unless the Government discloses otherwise to MCC in writing, MCC Funding 

will be in addition to the resources that the Government would otherwise receive or budget for 

the activities contemplated under this Compact and the Program. 

3 
Section 2.7 Limitations on the Use of MCC Funding. The Government will ensure that MCC 

Funding is not used for any purpose that would violate United States law or policy, as specified 

in this Compact or as further notified to the Government in writing, including but not limited to 

the following purposes: 

(a) for assistance to, or training of, the military, police, militia, national guard or 

other quasi-military organization or unit; 

(b) for any activity that is likely to cause a substantial loss of United States jobs or a 

substantial displacement of United States production; 

(c) to undertake, fund or otherwise support any activity that is likely to cause a 

significant environmental, health, or safety hazard, as further described in MCC's Environmental 

Guidelines and any guidance documents issued in connection with such guidelines (collectively, 

the "MCC Environmental Guidelines"); or 

(d) to pay for the performance of abortions as a method of family planning or to 

motivate or coerce any person to practice abortions, to pay for the performance of involuntary 

sterilizations as a method of family planning or to coerce or provide any financial incentive to 

any person to undergo sterilizations or to pay for any biomedical research which relates, in whole 

or in part, to methods of, or the performance of, abortions or involuntary sterilization as a means 

of family planning. 

Section 2.8 Taxes. 

(a) Unless the Parties specifically agree otherwise in writing, the Government will 

ensure that all MCC Funding is free from the payment or imposition of any existing or future 

taxes, duties, levies, contributions or other similar charges (but not fees or charges for services 

that are generally applicable in Morocco, reasonable in amount and imposed on a nondiscriminatory basis) ("Taxes") of or in Morocco (including any such Taxes imposed by a 

national, regional, local or other governmental or taxing authority of or in Morocco). 

Specifically, and without limiting the generality of the foregoing, MCC Funding will be free 

from the payment of (i) any tariffs, customs duties, import taxes, export taxes, and other similar 

charges on any goods, works or services introduced into Morocco in connection with the 

Program; (ii) sales tax, value'~dded tax, excise tax, property transfer tax, and other similar 

charges on any transactions involving goods, works or services in connection with the Program, 

(iii) taxes and other similar charges on ownership, possession or use of any property in 

connection with the Program, and (iv) taxes and other similar charges on income, profits or gross 

receipts attributable to work performed in connection with the Program and related social 

security taxes and other similar charges on all natural or legal persons performing work in 

connection with the Program except (1) natural persons who are citizens or permanent residents 

of Morocco and (2) legal persons formed under the laws of Morocco (but excluding MCAMorocco II and any other entity formed for the purpose of implementing the Government's 

obligations hereunder). 

(b) The mechanisms that the Government will use to implement the tax exemption 

required by Section 2.8(a) for certain principal taxes are set forth in the Program Implementation 

Agreement (as defined below). Such mechanisms may include exemptions from the payment of 

4 
Taxes that have been granted in accordance with applicable law, refund or reimbursement of 

Taxes by the Government to MCC, MCA-Morocco II or to the taxpayer. 

(c) If a Tax has been paid contrary to the requirements of Section 2.8(a) or the 

Program Implementation Agreement, the Government will refund promptly to MCC (or to 

another pmty as designated by MCC) the amount of such Tax in United States dollars or the 

currency of Morocco within thirty (30) days (or such other period as may be agreed in writing by 

the Parties) after the Government is notified in writing (whether by MCC or MCA-Morocco II) 

that such Tax has been paid. Failure to refund such amount within the specified time will result 

in interest accruing on the unpaid amount in accordance with Section 5.4. 

(d) No MCC Funding, proceeds thereof or Program Assets may be applied by the 

Government in satisfaction of its obligations under Section 2.8( c ). 

Section 2.9 Lower Middle Income Countries. Section 606(b) of the MCA Act restricts the 

amount of assistance that MCC may provide to "lower middle income countries," a term that is 

defined in the MCA Act and includes Morocco. To the extent that MCC determines, in MCC's 

reasonable discretion, that the amount of Program Funding granted to the Government in this 

Compact may exceed the limit stipulated in Section 606(b) of the MCA Act, MCC, at any time 

and from time to time upon written notice to the Government, may reduce the amount of 

Program Funding, or withhold any Disbursement of Program Funding. 

ARTICLE3. 

IMPLEMENTATION 

Section 3.1 Program Implementation Agreement. The Parties will enter into an agreement 

providing further detail on the implementation arrangements, fiscal accountability, and 

disbursement and use of MCC Funding, among other matters (the "Program Implementation 

Agreement" or "PIA"); and the Government will implement the Program in accordance with this 

Compact, the PIA, any other Supplemental Agreement and any Implementation Letter. 

Section 3.2 Government Responsibilities. 

(a) The Government has principal responsibility for overseeing and managing the 

implementation of the Program. 

(b) With the prior written consent ofMCC, the Government may designate an entity, 

to be established through passage of a law, as the accountable entity to implement the Program 

and to exercise and perform the Government's right and obligation to oversee, manage and 

implement the Program, including without limitation, managing the implementation of Projects 

and their Activities, allocating resources and managing procurements. This designation also 

includes the right and authority to exercise and perform the Government's rights and obligations 

under that certain Grant and Implementation Agreement by and between MCC and the 

Government dated as of May 5, 2015. Such entity will be referred to herein as "MCA-Morocco 

II," and will have the authority to bind the Government with regard to all Program activities. 

The designation contemplated by this Section 3.2(b) will not relieve the Government of any 

obligations or responsibilities hereunder or under any related agreement, for which the 

Government remains fully responsible. MCC hereby acknowledges and consents to the 

designation in this Section 3.2(b ). 

5 
(c) The Government will ensure that any Program Assets or services funded in whole 

or in part (directly or indirectly) by MCC Funding are used solely in furtherance of this Compact 

and the Program unless MCC agrees otherwise in writing. 

(d) The Government will take all necessary or appropriate steps to achieve the Project 

Objectives during the Compact Term (including, without limiting Section 2.6(a), funding all 

costs that exceed MCC Funding and are required to carry out the terms hereof and achieve such 

objectives, unless MCC agrees otherwise in writing). 

(e) The Government will ensure that the Program is implemented and that the 

Government carries out its obligations hereunder with due care, efficiency and diligence in 

conformity with sound technical, financial, and management practices, and in conformity with 

this Compact, the Program Implementation Agreement, each other Supplemental Agreement and 

the Program Guidelines. 

(t) The Government grants to MCC a perpetual, irrevocable, royalty-free, worldwide, 

fully paid, assignable right and license to practice or have practiced on its behalf (including the 

right to produce, reproduce, publish, repurpose, use, store, modify, or make available) any 

portion or portions of Intellectual Property as MCC sees fit in any medium, now known or 

hereafter developed, for any purpose whatsoever. 

Section 3.3 Policy Performance. In addition to undertaking the specific policy, legal and 

regulatory reform commitments identified in Annex I (if any), the Government will seek to 

maintain and to improve its level of performance under the policy criteria identified in Section 

607 of the MCA Act, and the selection criteria and methodology used by MCC. 

Section 3.4 Accuracy of Information. The Government assures MCC that, as of the date this 

Compact is signed by the Government, the information provided to MCC by or on behalf of the 

Government in the course of reaching agreement with MCC on this Compact is true, correct and 

complete in all material respects. 

Section 3.5 Implementation Letters. From time to time, MCC may provide guidance to the 

Government in writing on any matters relating to this Compact, MCC Funding or 

implementation of the Program. The Government will use such guidance in implementing the 

Program. The Parties may also issue jointly agreed upon writings to confirm and record their 

mutual understanding on aspects related to the implementation ofthis Compact, the PIA or other 

related agreements. Such writings are referred to herein as "Implementation Letters." 

Section 3.6 Procurement and Grants. 

(a) The Government will ensure that the procurement of all goods, works and 

services by the Government or any Provider to implement the Program will be in accordance 

with MCC's Program Procurement Guidelines (the "MCC Program Procurement Guidelines"). 

The MCC Program Procurement Guidelines include the following requirements, among others: 

(i) open, fair, and competitive procedures must be used in a transparent 

manner to solicit, award, and administer contracts and to procure goods, works and services; 

(ii) solicitations for goods, works and services must be based upon a clear and 

accurate description of the goods, works and services to be acquired; 

6 

(iii) contracts must be awarded only to qualified contractors that have the 

capability and willingness to perform the contracts in accordance with their terms on a cost 

effective and timely basis; and 

(iv) no more than a commercially reasonable price, as determined, for 

example, by a comparison of price quo· ations and market prices, will be paid to procure goods, 

works and services. 

(b) Unless MCC otherwise consents in writing, the Government will ensure that any 

grant issued in furtherance ofthe Program (each, a "Grant") is awarded, implemented and 

managed pursuant to open, fair and competitive procedures administered in a transparent manner 

acceptable to MCC. Jn furtherance of this requirement, and prior to the issuance of any Grant, 

the Government and MCC will agree upon written procedures to govern the identification of 

potential Grant recipients, including, without limitation, appropriate eligibility and selection 

criteria and award procedures. Such agreed procedures will be posted on the MCA-Morocco II 

website. 

Section 3.7 Records; Accounting; Covered Providers; Access. 

(a) Government Books and Records. The Government will maintain, and will use its 

best efforts to ensure that all Covered Providers maintain, accounting books, records, documents 

and other evidence relating to the Program adequate to show, to MCC's satisfaction, the use of 

all MCC Funding and the implementation and results ofthe Program ("Compact Records"). In 

addition, the Government will furnish or cause to be furnished to MCC, upon its request, 

originals or copies of such Compact Records. 

(b) Accounting. The Government will maintain and will use its best efforts to ensure 

that all Covered Providers maintain Compact Records in accordance with generally accepted 

accounting principles prevailing in the United States, or at the Government's option and with 

MCC's prior written approval, other accounting principles, such as those (i) prescribed by the 

International Accounting Standards Board, or (ii) then prevailing in Morocco. Compact Records 

must be maintained for at least five (5) years after the end of the Compact Term or for such 

longer period, if any, required to resolve any litigation, claims or audit findings or any applicable 

legal requirements. 

(c) Access. Upon MCC's request, the Government, at all reasonable times, will 

permit, or cause to be permitted, authorized representatives of MCC, the Inspector General of 

MCC ("Inspector Generaf'), the United States Government Accountability Office, any auditor 

responsible for an audit contemplated herein or otherwise conducted in furtherance of this 

Compact, and any agents or representatives engaged by MCC or the Government to conduct any 

assessment, review or evaluation ofthe Program, the opportunity to audit, review, evaluate or 

inspect facilities, assets and activities funded in whole or in part by MCC Funding. 

Section 3.8 Audits; Reviews. 

(a) Government Audits. Except as the Parties may agree otherwise in writing, the 

Government will, on an annual basis (or on a more frequent basis if requested by MCC in 

writing), conduct, or cause to be conducted, financial audits of all Disbursements of MCC 

Funding covering the period from signing of this Compact until the following March 31 and 

covering each twelve-month period thereafter ending March 31, through the end ofthe Compact 

7 
Term. In addition, upon MCC's request, the Government will ensure that such audits are 

conducted by an independent auditor approved by MCC and named on the list of local auditors 

approved by the Inspector General or a United States-based certified public accounting firm 

selected in accordance with MCC's Gu;delinesfor Finandal Audits Contracted by the 

MWennium Challenge Corporation's Accountable Entities issued and revised from time to time 

by the Inspector General (the "Audit Guidelines"). Audits will be performed in accordance with 

the Audit Guidelines and be subject to quality assurance oversight by the Inspector General. 

Each audit must be completed and the audit report delivered to MCC no later than 90 days after 

the applicable audit period, or such other period as the Parties may otherwise agree in writing. 

(b) Audits of Other Entities. The Government will ensure that MCC financed 

agreements between the Government or any Provider, on the one hand, and (i) a United States 

nonprofit organization, on the other hand, state that the United States nonprofit organization is 

subject to the applicable audit requirements contained in OMB Circular A-133, Audits o.fStates, 

Local Governments, and Non-Profit Organizations, issued by the United States Office of 

Management and Budget; (ii) a United States for-profit Covered Provider, on the other hand, 

state that the United States for-profit organization is subject to audit by the applicable United 

States government agency, unless the Government and MCC agree otherwise in writing; and (iii) 

a non-US Covered Provider, on the other hand, state that the non-US Covered Provider is subject 

to audit in accordance with the Audit Guidelines. 

(c) Corrective Actions. The Government will use its best efforts to ensure that each 

Covered Provider (i) takes, where necessary, appropriate and timely corrective actions in 

response to audits, (ii) considers whether the results of the Covered Provider's audit necessitates 

adjustment ofthe Government's records, and (iii) permits independent auditors to have access to 

its records and financial statements as necessary. 

(d) Audit by MCC. MCC will have the right to arrange for audits ofthe 

Government's use of MCC Funding. 

(e) Cost of Audits, Reviews or Evaluations. MCC Funding may be used to fund the 

costs of any audits, reviews or evaluations required under this Compact. 

ARTICLE4. 'J 

COMMUNICATIONS 

Section 4.1 Communications. Any document or communication required or submitted by 

either Party to the other under this Compact must be in writing and, except as otherwise agreed 

with MCC, in English. All such documents or communication must be submitted to the address 

of each Party set forth below or to such other address as may be designated by any Party in a 

written notice to the other Party. 

8 

ToMCC: 

Millennium Challenge Corporation 

Attention: Vice President, Compact Operations 

(with a copy to the Vice President and General Counsel) 

875 Fifteenth Street, N.W. 

Washington, DC 20005 

United States of America 

Facsimile: + 1 (202) 521-3 700 

Telephone: + 1 (202) 521-3600 

Email: VPOperations@mcc.gov (Vice President, Compact Operations) 

VPGeneralCounsel@mcc.gov (Vice President and General Counsel) 

To the Government: 

Government of the Kingdom of Morocco 

Attention: Head of Government 

Presidence du Gouvernement 

Palais Royal, Touarga, Rabat 

Royaume du Maroc 

Facsimile: +(212) 0537 768 656 

Telephone: + (212) 0537 219 400 

Email: cg@cg.gov.ma 

Wit!:! a copy to: 

Ministry of Economy and Finance 

Attention: Minister of Economy and Finance 

Bd. Med V. Quartier AdministratifRabat- Chellah 

Royaume du Maroc 

Facsimile: . +(212) 0537 674 081 

Telephone: +(212) 053 7 677 200 

Email: ministre@finances.gov.ma 

Section 4.2 Representatives. For all purposes relevant to implementation of this Compact, the 

Government will be represented by the individual holding the position of, or acting as, Minister 

of Economy and Finance of the Kingdom of Morocco, and MCC will be represented by the 

individual holding the position of, or acting as, Vice President, Compact Operations (each of the 

foregoing, a "Principal Representative"). Each Party, by written notice to the other Party, may 

designate one or more additional representatives of the Government or MCC, as appropriate 

(each, an "Additional Representative") for all purposes relevant to implementation of this 

Compact except Section 6.2(a). The Government hereby designates the Director General of 

MCA-Morocco JI as an Additional Representative. MCC hereby designates the Deputy Vice 

President, Department of Compact Operations Africa as an Additional Representative. A Party 

may change its Principal Representative to a new representative that holds a position of equal or 

higher authority upon written notice to the other Party. 

9 
Section 4.3 Signatures. Signatures to this Compact and to any amendment to this Compact 

will be original signatures appearing on the same page or in an exchange of letters or diplomatic 

notes. 

ARTICLE 5. 

TERMINATION; SUSPENSION; EXPIRATION 

Section 5.1 Termination; Suspension. 

(a) Either Party may terminate this Compact without cause in its entirety by giving 

the other Party thirty (30) days' prior written notice. MCC may also terminate this Compact or 

MCC Funding without cause in part by giving the Government thirty (30) days' prior written 

notice. 

(b) MCC may, immediately, upon written notice to the Government, suspend or 

terminate this Compact or MCC Funding, in whole or in part, and any obligation related thereto, 

if MCC determines that any circumstance identified by MCC as a basis for suspension or 

termination (as notified to the Government in writing) has occurred, which circumstances 

include but are not limited to the following: 

(i) the Government fails to comply with its obligations under this Compact or 

any other agreement or arrangement entered into by the Government in connection with this 

Compact or the Program; 

(ii) an event or series of events has occurred that makes it probable that any of 

the Project Objectives will not be achieved during the Compact Term or that the Government 

will not be able to perform its obligations under this Compact; 

(iii) a use of MCC Funding or continued implementation of this Compact or 

the Program violates applicable law or United States Government policy, whether now or 

hereafter in effect; 

(iv) the Government or any other person or entity receiving MCC Funding or 

using Pmgram Assets is engaged in activities that are contrary to the national security interests of 

the United States; 

(v) an act has been committed or an omission or an event has occurred that 

would render Morocco 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 such act or any other provision of law; 

(vi) the Government has engaged in a pattern of actions inconsistent with the 

criteria used to determine the eligibility of Morocco for assistance under the MCA Act; 

(vii) Morocco is classified as a Tier 3 country in the United States Department 

of State's annual Trafficking in Persons Report; and 

10 

(viii) the Government or another person or entity receiving MCC Funding or 


using Program Assets is found to have been convicted of a narcotics offense or to have been 


engaged in drug trafficking. 


Section 5.2 Consequences of Termination, Suspension or Expiration. 

(a) Upon the suspension or termination, in whole or in part, of this Compact or any 

MCC Funding, or upon the expiration of this Compact, the provisions of Section 4.2 of the 

Program Implementation Agreement will govern the post-suspension, post-termination or postexpiration treatment of MCC Funding, any related Disbursements and Program Assets. Any 

portion of this Compact, MCC Funding, the Program Implementation Agreement or any other 

Supplemental Agreement that is not suspended or terminated will remain in full force and effect. 

(b) MCC may reinstate any suspended or terminated MCC Funding under this 


Compact if MCC determines that the Government or other relevant person or entity has 


committed to correct each condition for which MCC Funding was suspended or terminated. 


Section 5.3 Refunds; Violation. 

(a) If any MCC Funding, any interest or earnings thereon, or any Program Asset is 

used for any purpose in violation of the terms of this Compact, then MCC may require the 

Government to repay to MCC in United States Dollars the value of the misused MCC Funding, 

interest, earnings, or asset, plus interest within thirty (30) days after the Government's receipt of 

MCC's request for repayment. The Government will not use MCC Funding, proceeds thereof or 

Program Assets to make such payment. 

(b) Notwithstanding any other provision in this Compact or any other agreement to 


the contrary, MCC's right under Section 5.3(a) to obtain a refund will continue during the 


Compact Term and for a period of (i) five (5) years thereafter or (ii) one (I) year after MCC 


receives actual knowledge of such violation, whichever is later. 


Section 5.4 Late Payment Interest. If the Government fails to pay any amount under this 


Compact or the Program Implementation Agreement when due (including amounts under 


Section 2.8(c) and 5.3(a)), interest will be paid on such unpaid amount. Interest will accrue on 


· such unpaid amount at a rate equal to the then current· US Treasury Current Value of Funds Rate, 

calculated on a daily basis and a 360-day year from the due date of such payment until such 

amount is paid in full. Any such payment will first be credited against interest due, and once the 

interest due amount is extinguished, then payments will be credited against outstanding principal. 

Section 5.5 Survival. The Government's responsibilities under this Section and Sections 2.7, 

2.8, 3.2(f), 3.7, 3.8, 5.2, 5.3, 5.4 and 6.4 will survive the expiration, suspension or termination of 

this Compact, provided that the terms of Section 2.8 shall survive for only 120 days following 

this Compact's expiration. 

ARTICLE6. 

COMPACT ANNEXES; AMENDMENTS; GOVERNING LAW 

Section 6.1 Annexes. Each annex to this Compact constitutes an integral part hereof, and 


references to "Annex" mean an annex to this Compact unless otherwise expressly stated. 


11 

Section 6.2 Amendments and Modifications. 

(a) The Parties may amend this Compact only by a written agreement. Such 

agreement will specify how it enters into force. 

(b) Notwithstanding subsection (a), the Parties agree that the Government and MCC 

may by written agreement, which will enter into force upon signature, modify any Annex to (i) 

suspend, terminate or modify any Project or Activity, (ii) change the allocations of funds as set 

forth in Annex II as of the date hereof, (iii) modify the implementation framework described in 

Annex I, (iv) add, change or delete any indicator, baseline or target or other infonnation set forth 

in Annex III as of the date hereof in accordance with the MCC M&E Policy, or (v) add, modify 

or delete any condition precedent described in Annex IV; provided that, in each case, any such 

modification (1) is consistent in all material respects with the Project Objectives, (2) does not 

cause the amount of Program Funding to exceed the aggregate amount specified in Section 2.1 

(as may be modified by operation of Section 2.2(e)), (3) does not cause the amount of Compact 

Implementation Funding to exceed the aggregate amount specified in Section 2.2(a), (4) does not 

reduce the Government's responsibilities or contribution of resources required under Section 

2.6(a), and (5) does not extend the Compact Term. 

(c) The Parties understand that any modification of any Annex pursuant to this 

Section 6.2 may be entered into by the Parties without the need for any additional domestic 

requirements of either Party. 

Section 6.3 Inconsistencies. In the event ofany conflict or inconsistency between: 

(a) any Annex and any of Articles I through 8, such Articles 1 through 8, as 

applicable, will prevail; or 

(b) this Compact and any other agreement between the Parties regarding the Program, 

this Compact will prevail. 

Section 6.4 Governing Law. This Compact is an international agreement and as such will be 

governed by the principles of international law. 

Section 6.5 Additional Instruments. Any .reforence to activities, obligations or rights l ~ I 

undertaken or existing under or in furtherance of this Compact or similar language will include 

activities, obligations and rights undertaken by, or existing under or in furtherance of any 

agreement, document or instrument related to this Compact and the Program. 

Section 6.6 References to MCC Website. Any reference in this Compact, the PIA or any 

other agreement entered into in connection with this Compact, to a document or information 

available on, or notified by posting on the MCC Website, will be deemed a reference to such 

document or information as updated or substituted on the MCC Website from time to time. 

Section 6.7 References to Laws, Regulations, Policies and Guidelines; References to Compact 

Expiration and Termination. 

(a) Each reference in this Compact, the PIA or any other agreement entered into in 

connection with this Compact, to a law, regulation, policy, guideline or similar document will be 

construed as a reference to such law, regulation, policy, guideline or similar document as it may, 

12 
from time to time, be amended, revised, replaced, or extended and will include any law, 

regulation, policy, guideline or similar document issued under or otherwise applicable or related 

to such law, regulation, policy, guideline or similar document. 

(b) Each reference in this Compact, the PIA or any other agreement entered into in 

connection with this Compact, to the Compact's "expiration" refers to the date on which the 

Compact Term ends if the Compact is not terminated earlier, which in accordance with Section 

7.4 is five (5) years after its entry into force. Each reference in any ofthe aforementioned 

documents to the Compact's "termination" refers to the Compact ceasing to be in force prior to 

its expiration in accordance with Section 5.1. 

Section 6.8 MCC Status. MCC is a United States government corporation acting on behalf of 

the United States Government in the implementation of this Compact. MCC and the United 

States Government assume no liability for any claims or loss arising out of activities or 

omissions under this Compact. The Government waives any and all claims against MCC or the 

United States Government or any current or former officer or employee of MCC or the United 

States Government for all loss, damage, injury, or death arising out of activities or omissions 

under this Compact, and agrees that it will not bring any claim or legal proceeding of any kind 

against any of the above entities or persons for any such loss, damage, injury, or death. The 

Government agrees that MCC and the United States Government or any current or former officer 

or employee ofMCC or the United States Government will be immune from the jurisdiction of 

all courts and tribunals of Morocco for any claim or loss arising out of activities or omissions 

under this Compact. 

ARTICLE 7. 

ENTRY INTO FORCE 

Section 7.1 Domestic Procedures. The Government will proceed in a timely manner to 

complete all of its domestic requirements for this Compact to enter into force. The Parties 

understand that this Compact, upon entry into force, will prevail over the domestic laws of 

Morocco. 

Section 7.2 Conditions Precedent to Entry into Force. Before this Compact enters into f.orce: .,. 

(a) the Program Implementation Agreement must have been signed by the parties 

thereto; 

(b) The Government must have delivered to MCC: 

(i) a letter signed and dated by the Principal Representative of the 

Government, or such other duly authorized representative ofthe Government acceptable to 

MCC, confirming that the Government has completed its domestic requirements necessary for 

this Compact to enter into force and that the other conditions precedent to entry into force in this 

Section 7 .2 have been met; 

(ii) a signed legal opinion from Secretariat General du Gouvernement of 

Morocco (or such other legal representative ofthe Government acceptable to MCC), in form and 

substance satisfactory to MCC; 

13 
(iii) complete, certified copies of all decrees, legislation, regulations or other 

governmental documents relating to the Government's domestic requirements necessary for this 

Compact to enter into force, which MCC may post on its website or otherwise make publicly 

available; and 

(c) MCC shall not have determined, at the time of this Compact's entry into force, 

that the Government has engaged in a pattern of actions inconsistent with the eligibility criteria 

for MCC Funding. 

Section 7.3 Date of Entry into Force. This Compact will enter into force on the date of the 

Jetter from MCC to the Government in an exchange of letters confirming that MCC and the 

Government have completed their respective domestic requirements for entry into force of this 

Compact and that the conditions precedent to entry into force in Section 7 .2 have been met to 

MCC's satisfaction. 

Section 7.4 Compact Term. This Compact will remain in force for five (5) years after its 

entry into force, unless terminated earlier under Section 5.1 (the "Compact Term"). 

Section 7.5 Provisional Application. Upon signature of this Compact, and until this Compact 

has entered into force in accordance with Section 7.3, the Parties will provisionally apply the 

terms of this Compact; provided that, no MCC Funding, other than Compact Implementation 

Funding, will be made available or disbursed before this Compact enters into force. 

ARTICLES. 

ADDITIONAL GOVERNMENT COVENANTS 

Section 8.1 Project Covenants. 

(a) Education and Training for Employability Project. With regard to the Education 

and Training for Employability Project, the Government agrees that: 

(i) The Government will safely maintain Project-supported secondary schools 

before deployment of the new infrastructure and equipment operations and maintenance 

(entretien et rnaintehance) ("O&M') system (as described in Annex l(B)(l)(a)(i)(C)); 

(ii) The Government will pilot and implement the new infrastructure and 

equipment O&M system which will be supported through Project-funded technical assistance (as 

described in Annex I(B)(l)(a)(i)(C)); 

(iii) The Government will maintain compliance with its commitment, as shall 

be agreed with MCC, to provide annual progressive contributions for discretionary school 

budgets to support the School Improvement Plan for each school supported through the 

Secondary Education Activity; 

(iv) The Higher Council on Education, Training, and Scientific Research and 

the Ministry of National Education and Vocational Training will prepare for, finance, execute, 

and publicly disseminate the results of two national education assessments (the Programme 

National d' Evaluation des Acquis or PNEA) to be supported through Project-funded technical 

assistance (as described in Annex I(B)(l)(a)(i)(B)); and 

14 
(v) The Higher Council on Education, Training, and Scientific Research and 

the Ministry ofNational Education and Vocational Training will prepare for, finance, execute, 

and publicly disseminate the results ofthe 2018 round of the Organization for Economic Cooperation and Development's Programme for lnternational Student Assessment (PISA) the 

preparation of which will be supported through Project-funded technical assistance (as described 

in Annex I(B)(l)(a)(i)(B)). 

(b) Land Productivity Project. With regard to the Land Productivity Project, the 

Government agrees that: 

(i) It will provide adequate funding for the CEILD (as described in Annex 

l(B)(2)(a)(iii)(A)); 

(ii) With regard to each demonstration site supported by the Industrial Land 

Activity: 

(A) Based on technical support provided by the Land Productivity 

Project, the Government will establish a special purpose vehicle to participate in public-private 

partnership investments in such demonstration site and will make operational a one-stop-shop for 

such demonstration site for services, including, but not limited to, building permits and 

certificates of compliance; and 

(B) The Government will not grant exemptions or subsidies for the 

benefit of industrial land projects that may constitute unfair competition with projects initiated 

by a special purpose vehicle. The Government will take appropriate regulatory measures to this 

end. The criteria for defining exemptions or subsidies that would constitute unfair competition 

shall be determined by agreement between the Parties; 

(C) The Government will commit to co-financing at least 20 percent of 

the joint Government and Compact investment in the public-private partnership or infrastructure 

for such demonstration site; and 

(iii) The Government will take the measures that are necessary to assure that 

registration taxes and titling fees related to the privatization process are not an obstacle to the 

completit>n of this process both within areas targeted by the Land.Productivity Project and for 

privatization which may be subsequently conducted on remaining collective lands in Morocco. 

Such measures must be satisfactory to MCC and must be taken prior to financing of privatization 

activities funded by the Rural Land Activity. 

SIGNATURE PAGE FOLLOWS ON THE NEXT PAGE 

15 
IN WITNESS WHEREOF, each Party, by its duly authorized representative, has signed 

this Compact. 

Done at Rabat, Morocco, this 30th day ofNovember, 2015 in the English language. The English 

language text is the only authentic text ofthis Compact. 

FOR THE UNITED STATES OF 

AMERICA, acting through THE 

MILLENNIUM CHALLENGE 

CORPORATION 

FOR THE KINGDOM OF MOROCCO 


Name: Moi,.ammed Boussaid 

Title: Minister ofEconomy and Finance 

SIGNATURE PAGE TO MILLENNIUM CHALLENGE COMPACT 


BETWEEN THE UNITED STA TES OF AMERICA 


ACTING THROUGH THE MILLENNIUM CHALLENGE CORPORATION 


AND THE KINGDOM OF MOROCCO 

ANNEX I 

PROGRAM DESCRIPTION 

This Annex I describes the Program that MCC Funding will support in Morocco during the 

Compact Term. 

A. PROGRAM OVERVIEW 

1. Background and Consultative Process. 

(a) Background. 

Morocco was selected as eligible to develop this second Compact in fiscal year 2013 after 

successful completion of a $698 million compact which entered into force in September 2008 

and was completed in September 2013. In the first compact, the Government collaborated with 

key stakeholders at the national and regional level to identify country-led priorities for MCC 

investments and country-specific constraints to poverty reduction through economic growth. As 

a result, and in accordance with Morocco's national growth strategy, the Government developed 

a compact with five projects aimed at increasing productivity and improving employment in 

high-potential sectors. 

Morocco was reselected by MCC in fiscal years 2014 and 2015. A constraints analysis 

conducted by the Government and MCC in partnership with the African Development Bank 

identified: (i) education quality; (ii) land policy and implementation (with qualitatively different 

issues for rural areas and industrial land); and (iii) governance, notably labor market regulations, 

taxes, and the commercial judiciary system, as binding constraints to economic growth and 

investment. These findings were complemented by social/gender and private sector analyses 

completed by the Government. 

As described below, the Government engaged in a consultative process to inform project focus 

and design. As a result, the Government, in consultation with MCC, selected the education and 

land sectors as focus areas, in particular focusing on vocational training, secondary education, 

rural land and industrial land. 

(b) Consultative Process. 

Throughout the compact development process, the Government engaged in an inclusive and 

strategic consultative process to inform project focus and design. During the preliminary analysis 

phase, national government, local administrations, civil society and private sector in several 

regions were engaged in multiple stages, and contributed to the identification of binding 

constraints and an understanding of how these constraints impact different populations and 

sectors in Morocco. 

Consultations continued throughout project definition and design, as the Government worked in 

partnership with these stakeholders to refine projects and develop compact approaches that 

integrate partnerships as a core implementing model for the Program. The Private Sector-Driven 

TVET sub-Activity conducted a call for ideas to solicit proposals directly from government 

training institutes, private sector companies and associations, and non-governmental 

organizations, which shaped the parameters of this sub-Activity and validated a strong interest in 
program participation from these parties. MCC and the Government also conducted outreach in 

Washington for US-based entities. 

Active consultation to mitigate project risk and maximize program impacts will continue as a 

critical element of Program execution. Private sector participation is central to the Program, in 

particular direct partnerships within technical and vocational education and training, and 

bringing in private management models for industrial land. 

2. Description of Program and Beneficiaries. 

(a) Program Description. 

The Program addresses two key binding constraints, education quality and land productivity, 

with an approach and methodology that incorporates the core issues of government and publicprivate coordination. The Program directly addresses the root causes of these binding constraints, 

which are: (i) secondary education and workforce development systems that produce a supply of 

workers that do not adequately meet private sector skills demand; and (ii) land policy and 

implementation that inhibit access to and productive uses of rural and industrial land, thus 

diminishing investment and the consequent demand for labor. 

To that end, the Program is comprised of two Projects: the Education and Training for 

Employability Project; and the Land Productivity Project. 

By improving the policy and institutional environment and creating models to engage the private 

sector, the two Projects will address both the supply and demand sides ofthe labor market. Both 

Projects support the shift from static, state-led systems to competitive, dynamic systems that 

engage the private sector and respond to market needs. Further, both Projects take a targeted 

approach to developing and demonstrating new models and to building capacity so that those 

models can be replicated and scaled-up after the Compact expires. 

(b) Beneficiaries. 

Over a twenty year period commencing at entry into force, more than 490 thousand households 

(approximately 2.2 million people) are expected to benefit from the Program, as detailed below: 

Project/ Activity Estimated Beneficiaries 

' 1.1 Secondary Education 1,744,100 

1.2 Workforce Development 275,000 

Governance N/A· 

2.2 Rural Land 81,500 

2.3 Industrial land -· 

96,300 

ANNEX I -2 
B. DESCRIPTION OF PROJECTS 

Set forth below is a description of each of the Projects that the Government will implement, or 

cause to be implemented, using MCC Funding to advance the applicable Project Objective. In 

addition, specific activities that will be undertaken within each Project (each, an "Activity"), 

including sub-Activities, are also described. 

l. Education and Training for Employability Project. 

(a) Summary of Project and Activities. 

The objective of the Education and Training for Employability Project (the "Employability 

Project") is stated in Section 1.2 of the Compact, To achieve the Employability Project 

Objective, MCC Funding will support: direct quality improvements to secondary schools, and 

improved maintenance and assessment systems; and private sector-driven technical training, the 

use of innovative, results-based financing mechanisms to promote inclusive employment, and 

improved system performance management through policy reform and information systems. 

(i) Secondary Education Activity. 

The Secondary Education Activity aims to demonstrate a new, cost-effective, sustainable, and 

scalable model of public secondary schools (the "Integrated School Improvement Modef') for 

delivering quality secondary education focused on employability competencies needed for the 

modern workforce. The Integrated School Improvement Model will be described in Morocco 

under an agreed upon name. MCC Funding will support: 

(A) Integrated School Improvement Model. Piloting the new model in 

approximately 90 to 110 schools across three regions to be selected through balancing strong 

economic growth and employment potential, high poverty rates, and including varying levels of 

education performance, and then recorded in an Implementation Letter. In the event of costsavings, MCC Funding may be used to expand the sub-Activity to additional schools in the same 

regions. In order to enable a rigorous impact evaluation, schools participating in the sub-Activity 

will be chosen at random from a set of eligible schools in the targeted regions. Specific 

interventions will include targeted regulatory reform, technical assistance, training, infrastructure 

improvements (which includes rehabilitation and limited expansion), and new equipment The 

Integrated School Improvement Model will be launched first in one region, and approximately 

one year later, will be extended to the other two regions. Before beginning with regions 2 and 3 

and annually thereafter, the Government will conduct an interim performance review of the 

implementation of the Integrated School Improvement Model. This sub-Activity will include the 

following actions: 

Participatory Diagnostic, School Improvement Plans, and Performance 

Contracts. The development of school improvement plans ("School 

Improvement Plans") that will identify local needs and bring local 

stakeholders together. The School improvement Plans will establish 

appropriate solutions to the causes of poor performance and 

inequitable access at individual schools. School Improvement Plans 

will include specific and measurable outcomes and targets and will be 

linked to performance contracts between schools and regional or 

provincial authorities. 

ANNEX 1-3 
Integrated Support for Management, Pedagogy, and Infrastructure. 

Supporting School Improvement Plans by providing funding for an 

integrated package of interventions to implement the Integrated School 

Improvement Model. The interventions will include targeted 

improvements in three key areas: school leadership and management, 

pedagogical improvements and innovation for student-centered 

learning, and school infrastructure improvement. 

Regional Project Management, Capacity Building, and Learning. 

Providing targeted project management technical assistance to regional 

and provincial education authorities to implement the sub-Activity and 

facilitate learning and sharing across schools. 

(B) Student Assessment and Education Management Information 

Systems. Development, planning, and implementation of rigorous international and national 

assessments of student learning, using sex- and cohort-disaggregated data, and the utilization of 

that data to inform decisions for improvement. The sub-Activity will also enhance the 

capabilities of Morocco's existing education management information system, moving it towards 

a complete school management system. 

(C) School Infrastructure and Equipment Operations and Maintenance. 

Development of a new approach to school infrastructure and information technology O&M. 

Technical assistance will be provided to develop the new O&M system including defining the 

new roles and responsibilities of local, provincial, and regional actors regarding infrastructure 

and information technology O&M, and designing the procedures and contracts to be used. 

Local, provincial, and regional actors in the regions supported through the Integrated School 

Improvement Model sub-Activity will also receive capacity building in managing the new 

system. Limited MCC Funding may also be contributed to such O&M contracts. 

(ii) Workforce Development Activity. 

The Workforce Development Activity aims to increase the employability of Moroccans by: 

improving the quality and relevance of, and equitable access to, private sector-driven technical 

and vocational education and training ("TVET') programs that respond to private sector needs; .·: ,,,. providing technical assistance to develop and implement demand-driven TVET sector policy; 

providing effective employment services to help unemployed or economically inactive women 

and unemployed, at-risk urban and peri-urban youth obtain quality jobs; and supporting the 

operationalization of a labor market observatory (the "Labor Market Observatory") to provide 

a broad range of stakeholders with dynamic labor market information to improve decisionmaking for public policy and private investment. MCC Funding will support the following 

sub-Activities: 

(A) Private Sector-Driven TVET. A Private Sector-Driven TVET 

grant facility will be used to support selected private sector-driven training centers. Grants will 

support: (I) establishing new TVET centers run by public-private partnerships ("PPPs"), or 

expanding existing TVET centers currently managed through PPPs; and (2) transforming 

existing public TVET centers from a traditional government-driven model to a private sectordriven model. Eligibility requirements, and the operational processes for administering this grant 

facility, will be set forth in an operations manual approved by MCC. Among other requirements, 

ANNEXl-4 
potential grantees must agree to participate in the Ministry ofNational Education and Vocational 

Training's monitoring and evaluation systems. The Government will directly contribute to the 

Private Sector-Driven TVET grant facility and take steps to ensure that such grant facility will 

survive the Compact Term, using Government funds. MCC Funding will finance the majority of 

the first round, and the minority ofthe second round, of grants issued by the Private SectorDriven TVET grant facility. 

(B) Operationalizing TVET Sector Policy Refonn. Technical 

assistance and limited material support will be provided to the Ministry ofNational Education 

and Vocational Training and related agencies to develop and implement private sector demanddriven TVET sector policy. 

(C) Results-Based Financing for Inclusive Employment. In order to 

catalyze a market for improved employment outcomes, results-based financing mechanisms, 

such as Social Impact Bonds (each a "Social Impact Bond") or performance-based contracting, 

will be used to replicate or expand proven programs that provide integrated job placement 

services. The services for job placement will target unemployed or economically inactive 

women and unemployed, at-risk urban and peri-urban youth. MCC Funding will also support the 

development and implementation of rigorous impact evaluations to test promising labor market 

interventions, not limited to those interventions funded by this sub-Activity. 

(D) Labor Market Observatory. Technical assistance will be provided 

to strengthen the Labor Market Observatory to ensure coordinated policy and promote joint 

activities among relevant Government agencies for analyzing the labor market. MCC Funding 

will also support the development and rollout of an information dissemination platform. Finally, 

MCC Funding will support the development and implementation of key labor market studies. 

(b) Beneficiaries. 

The Secondary Education Activity is expected to benefit all graduates of Activity-supported 

secondary schools and their families over a twenty year period commencing at entry into force. 

The number of secondary students expected to graduate by year 20 is 376,600. Assuming an 

average family size of 4.63, the total number of beneficiaries is approximately 1.7 million. 

The Workforce Development Activity is expected to benefit all graduates of Activity-supported 

TVET centers and their families over a twenty year period commencing at entry into force. The 

number of workforce development students expected to graduate by year 20 is 59,400. 

Assuming an average family size of 4.63, the total number of beneficiaries is approximately 

275,000. 

(c) Environmental and Social Mitigation Measures. 

The two Activities of the Employability Project have different environmental and social 

classifications according toMCC's Environmental Guidelines. The school infrastructure 

improvement component ofthe Secondary Education Activity has been classified as a "Category 

B" activity according to the MCC Environmental Guidelines, in that it has been deemed unlikely 

to result in significant or adverse social or environmental impacts due to its small scale of 

potential environmental and social effects. 

ANNEX 1-5 
Given the range of small-scale infrastructure interventions planned, a project level programmatic 

Environmental and Social Impact Assessment ("ES/A") will be carried out for the Project. The 

programmatic ESIA will assess environmental and social risks, impacts and opportunities for the 

overall Project as well as those associated with site-specific infrastructure. It is also expected to 

include a stakeholder engagement framework and a template environmental and social 

management plan that will be adjusted as necessary to reflect actions and mitigation measures for 

specific sites. In addition, a resettlement policy framework will be developed for the Compact 

that will address appropriate elements of the Employability Project. Where resettlement cannot 

be avoided, site specific resettlement action plans and/or livelihood restoration plans will be 

developed and implemented on a site by site basis. 

The Workforce Development Activity has been classified as a "Category D" activity according 

to the MCC Environmental Guidelines, as it involves funding of sub-projects through a Private 

Sector-Driven TVET grant facility. All investments funded under the Workforce Development 

Activity grant facility will be screened for environmental and social risks and impacts and 

managed on a case by case basis commensurate with the nature and scale of the grant activities 

and in accordance with the operational procedures and institutional arrangements ofthe facility. 

The manager ofthe grant facility, either the Government or a contractor, will be required to 

develop and operate an Environmental and Social Management System ("ESMS'') with 

procedures that are consistent with IFC Performance Standard I and commensurate with the 

level of environmental and social risks in the portfolio of the grant facility. Depending on site 

specific circumstances, the manager ofthe grant facility may be required to engage a third party 

environmental and social compliance monitor to conduct performance audits. 

MCC Funding for this Activity is also expected to include support and technical assistance to the 

manager ofthe grant facility to establish appropriate systems and processes to effectively 

manage and oversee the grant making and implementation process. 

(d) Social Inclusion and Gender Integration. 

The Employability Project is designed to achieve the Employability Project Objective in a 

manner that promotes equitable outcomes for both girls and boys, and that reduces social, gender 

and geographically-based inequalities. 

Through the Secondary Education Activity, School Improvement Plans at Activity-supported 

schools will be developed through an inclusive and participatory analysis of the local causes of 

poor learning outcomes and dropout rates. Activity interventions will promote social and gender 

inclusion through school management, teacher training, mentoring and other interventions that 

incorporate gender-responsive approaches and counteract stereotypes. MCC Funding will 

support school infrastructure improvements that will incorporate gender-responsive and safe 

school design elements. 

To address the significant gender gap in the formal TVET sector and promote women's labor 

force participation, the Workforce Development Activity will set specific social and gender 

eligibility requirements for receiving grants and will include job-placement support for 

unemployed and economically inactive women and unemployed at-risk youth. Support will also 

be provided to build capacity within the Labor Market Observatory to collect, analyze and 

strategically use data that can promote women's employment. The Operationalizing TVET 

Sector Policy Reform sub-Activity will provide technical assistance to the Government to 

ANNEX 1-6 
develop and strengthen gender responsive and socially inclusive policies and practices in the 

TVET sector. 

(e) Donor Coordination. 

MCC and the Government engaged with a wide group of bilateral and multilateral donors 

investing in the education and training sector in Morocco to obtain lessons learned on prior 

sector engagement, as well as in defining appropriate sub-sector focus. The Project builds on 

pilots and programs sponsored by the World Bank, the African Development Bank, the Agence 

Frarn;aise de Developpement, the European Union and the Department of Foreign Affairs, Trade 

and Development Canada. 

(f) USAID. 

MCC worked closely with the United States Agency for International Development ("USAID") 

during Compact development, building upon the experience and lessons of the recent USA ID 

middle school-level teacher education and life/soft skills activity in the development of the 

Secondary Education Activity. USAID recently exited the secondary education space and is 

implementing a program focused on early grade (1-4) reading in Arabic language as well as 

activities in career development at the tertiary level. The Parties plan to continue to collaborate 

with USAID during implementation, given the complementary investments in the education 

sector, including carrying out a joint capacity assessment of the Ministry of National Education 

and Vocational Training. 

(g) Sustainability. 

The Project will support the creation of policies, systems, procedures, and financing mechanisms 

that will endure beyond the life of this Compact. The Secondary Education Activity will pilot an 

Integrated School Improvement Model that will demonstrate how to achieve cost-effective, 

quality education, and a plan will be developed during the Compact for expansion of this model 

post-Compact. The Private Sector-Driven TVET grant facility within the Workforce 

Development Activity is intended and designed to continue functioning after the Compact. 

Government co-financing during the Compact will continue afterward and enable the grant 

facility to continue. Independent interim evaluations during the Compact along with ex-post 

impact and performance evaluations will inform and provide the justification for sustaining and 

scaling up Compact investments by the Government post-Compact. The Government and MCC 

will collaborate to ensure that interventions aimed at mainstreaming social and gender inclusion 

will include mechanisms that promote sustainability beyond the Compact Term. 

(h) Policy, Legal and Regulatory Reforms. 

In addition to Section 8.1 (a), the Parties have identified the following policy, legal, regulatory 

and institutional reforms and actions that the Government will pursue in support of the Project: 

(i) The Government will, in form and substance satisfactory to MCC, enable 

autonomous school management for Activity-supported schools. MCC envisions that such 

autonomy will include: (A) enhanced transparency and improved representativeness of school 

management committees; (B) permission for each school to manage a discretionary budget to 

implement its School Improvement Plan; and (C) the ability of schools to enter into partnership 

agreements. 

ANNEX l- 7 
(ii) The Government will pass a law reforming continuing education and 

training (formation continue) including its financing and management. 

(iii) The Ministry of National Education and Vocational Training will conduct 

an annual TVET sector policy and performance review to: (A) discuss and publish sector-wide 

monitoring and evaluation reports; (B) discuss performance and lessons learned from Activity 

implementation; and (C) draw policy and financing recommendations. 

2. Land Productivity Project. 

(a) Summary of Project and Activities. 

The objective of the Land Productivity Project (the "Land Project") is stated in Section 1.2 of 

the Compact. To achieve the Land Project Objective, MCC Funding will support the following 

Activities: 

(i) Governance Activity. 

Building on work already undertaken by the Government, the Governance Activity aims to 

support the development and implementation of the Land Strategy to address governance and 

land market constraints to investment and productivity. The Land Strategy will be marketoriented, supporting increased productivity of private as well as public land. MCC Funding will 

support: 

(A) Strategy Development and Implementation. Technical assistance to 

develop a long-term land productivity strategy (the "Land Strategy") and a roadmap for 

implementation. Once the Land Strategy and roadmap are in place, MCC Funding will support 

implementation of selected elements of the roadmap, based on criteria to be agreed between 

MCC and the Government. 

(B) Strategic Coordination. The organizational design and 

establishment of a coordination mechanism, which, once established, will oversee and monitor 

the implementation of the Land Strategy and roadmap post-Compact (the "Land Coordination 

Mechanism"). 

(ii) Rural Land Activity. 

The Rural Land Activity aims to increase rural productivity by developing and piloting more 

efficient and inclusive procedures for privatization 1 of collective land that can be implemented 

within three years or less, and can be replicated by the Government in the privatization of the 

remaining arable collective land in Morocco. MCC Funding will support the development of 

these improved procedures and their application, starting with the privatization and titling of up 

to 46,000 hectares of collective land in Morocco's Gharb region. MCC Funding will also 

support development and testing of tools to address other land-related root causes of low 

productivity, including co-ownership and minimum parcel sizes. 

1 	In this context, privatization refers to a process known as "melkisation," which is the conversation of collective 

land to private ownership. 

ANNEX 1-8 
(iii) Industrial Land Activity. 

The Industrial Land Activity aims to transform the way the Government brings industrial land to 

market, from a state- to a market-driven approach through the development of a new model for 

industrial zone development. By developing Government expertise and using PPPs for industrial 

land development, the Activity seeks to foster private sector participation in the development and 

management of industrial zones to ensure that such development and management responds to 

private sector demand and meets the needs of enterprises in terms of location, land offering, 

infrastructure and services. MCC Funding will support: 

(A) Center of Expertise for Industrial Land Development. Creation of a 

Center of Expertise for Industrial Land Development ("CEILD"), which will lead the 

development and institutionalization of a new market-driven model for industrial zone 

development in Morocco that will stimulate investment and increased productivity, as well as 

involvement of the private sector in the rehabilitation and ongoing management and maintenance 

of industrial zones. MCC Funding will also support the study of sustainability after the 

Compact, including the institutional location, of the CEILD (the "CEILD Study"). The 

Government will provide office space, information technology equipment, and administrative 

staff for the CEILD. 

(B) Industrial Zone Demonstration Project and Transaction Financing. 

The testing of the market-driven model by preparing and bringing to market demonstration 

projects in approximately four sites, some revitalized and some newly developed, including 

providing financing to the extent necessary to enhance economic viability and to attract private 

investment. In addition, the Industrial Land Activity will establish a facility to finance marketdriven industrial zones to be identified through an open, competitive call for projects that will be 

selected according to criteria set forth in an operations manual to be agreed between MCC and 

the Government. 

(b) Beneficiaries. 

The Rural Land Activity beneficiaries are defined as all immediate family members of owners 

who receive a title to converted collective land as a result of the Rural Land Activity. The total 

number of beneficiaries is approximately 81,500. 

Beneficiaries for the Industrial Land Activity are defined as all employees, existing or potential, 

of the targeted industrial zones, and all members of their immediate families. The total number 

of beneficiaries is approximately 96,300. 

(c) Environmental and Social Mitigation Measures. 

The Rural Land Activity is categorized as a "Category B" activity according to the MCC 

Environmental Guidelines, because the environmental and social risks and impacts are expected 

to be relatively limited and can be readily addressed through mitigation measures. ESIA and 

management planning will be carried out for the Rural Land Activity per the MCC 

Environmental Guidelines. While the assessment will largely focus on social risks and impacts, 

it will also consider potential environmental impacts such as those associated with agricultural 

intensification. As appropriate, a livelihood restoration plan will be developed in conjunction 

with the environmental and social impact assessment in order to identify and compensate for any 

project-related economic displacement. 

ANNEX 1-9 
The Industrial Land Activity is categorized as a "Category A" activity according to the MCC 

Environmental Guidelines, due to potentially significant adverse environmental and social risks 

and impacts that are diverse, sensitive, and not readily reversible, with an area of influence that 

potentially extends beyond the sites. Environmental and social impact assessments and 

management plans will be required for each new or revitalized site. 

The resettlement policy framework developed for the Compact will address appropriate elements 

of the Land Project, with site-specific resettlement action plans and/or livelihood restoration 

plans developed for each revitalization site, as appropriate. A stakeholder engagement plan will 

also be developed at the activity level. 

The facility for market-driven industrial zones included in the Industrial Land Activity is 

categorized as a "Category D" activity. Consistent with the MCC Environmental Guidelines, 

environmental and social requirements for the facility for market-driven industrial zones will be 

commensurate with the nature and scale of the intermediary funding activity and will be set forth 

in the operations manual for such facility. The manager of the facility will be required to develop 

and operate an ESMS with procedures that are consistent with IFC Performance Standard I and 

commensurate with the level of environmental and social risks related to the development of 

industrial zones. Depending on site specific circumstances, the private developer may be 

required to engage a third party environmental and social compliance monitor to conduct 

performance audits. 

In addition, the Industrial Land Activity aims to improve zone planning and management, which 

will include improved waste and wastewater management, and the promotion of resource 

efficiency measures associated with cost-effective, cleaner production interventions. 

(d) Social Inclusion and Gender Integration. 

Social inclusion and gender integration within the Rural Land Activity includes the development 

of a more inclusive process for conversion of collective land that protects all rights holders and 

engages historically disadvantaged groups such as women. The Activity will include targeted 

communications, inclusive consultations and outreach, legal literacy and assistance, and gender 

responsive awareness campaigns. To help facilitate women's access to land and benefits from 

privatization, the Activity may also explore the feasibility of setting aside land for women's 

cooperatives or associations~ and linking women to existing support services for household 

gardening activities. 

Social inclusion and gender integration within the Industrial Land Activity includes 

dissemination of guidance on improved labor practices, promoting women's workforce 

participation, exploring social services that promote employee productivity, supporting 

approaches to assist small and medium enterprises, and providing technical support to ensure 

preparation of technical and financial documents that reflect best practices on social, gender, and 

environmental approaches. The implementation modalities for providing these measures wi II be 

adapted to the specific context and needs of Morocco, based on international best practice. 

(e) Donor Coordination. 

MCC and the Government engaged with donors who have invested in the land sector to build on 

prior experience and to inform project design and focus, including input from the World Bank, 

the European Bank for Reconstruction and Development, the African Development Bank, the 

ANNEX I - 10 
Deutsche Gesellschaft ftir Internationale Zusammenarbeit (GIZ) GmbH, and the Agence 

Frarn;aise de Developpement. The Land Project benefited from several World Bank studies, 

including a 2007 land markets study and a 2009 report on industrial land markets in the Middle 

East and North Africa region. The Project will seek to continue to involve these and other donors 

as appropriate. The Industrial Land Activity builds on and incorporates elements of successful 

models for industrial land development in Morocco. 

(f) USAID. 

USAID is not currently funding any programs in Morocco specifically targeting the land sector. 

Throughout the implementation of the Compact, MCC will coordinate with USAID on any land 

and governance related activities supported by USAID. 

(g) Sustainability. 

The Project will support the creation of policies, systems, procedures, and financing mechanisms 

that will endure beyond the life ofthis Compact. The Land Coordination Mechanism and the 

CEILD are intended to be sustained beyond the end ofthe Compact and to carry forward 

Compact-supported reforms. The Land Strategy developed as part ofthe Governance Activity 

will be accompanied by an action plan for addressing key themes and findings of the Land 

Strategy that will be implemented through MCC Funding and Government support. The Rural 

Land Activity is expected to design and demonstrate procedures for conversion of collective 

lands to private ownership in a way that such procedures can be replicated elsewhere in 

Morocco. Many ofthe elements of the new industrial development model are expected to be 

reflected in a new industrial law to institutionalize these approaches to be used in the future. The 

industrial zone demonstration projects supported by the Project will be based on PPP 

transactions designed to assure the long-term management and maintenance ofthe targeted 

industrial zones well into the future. The Government and MCC will collaborate to ensure that 

interventions aimed at mainstreaming social and gender inclusion will include mechanisms that 

promote sustainability beyond the Compact Term. 

(h) Policy, Legal and Regulatory Reforms. 

In addition to Section 8.1 (b ), the Parties have identified the following policy, legal, regulatory 

and institutional reforms and actions that the Government will purstte in support ofthe Project: 

(i) The Government will create the CEILD as part of MCA-Morocco II. 

Prior to the end of the Compact, the Government will take the necessary measures to ensure 

sustainability of the CEILD according to the results of the CEILD Study. 

(ii) The Government will formalize procedures for the conversion of 

collective land to private land that are acceptable to MCC and can be completed in three years or 

less. 

ANNEX I -11 

C. IMPLEMENTATION FRAMEWORK 

1. MCA-Morocco II. 

(a) Structure and Establishment. 

The Government, through passage of a law, will create an independent agency (an 

"etablissement public"), referred to herein as MCA-Morocco II, which will be authorized to act 

on behalf of the Government in order to manage and oversee the implementation of this Compact 

and the Program. MCA-Morocco II will have full decision-making autonomy, including, inter 

a!ia, the ability, without consultation with, or the consent or approval of, any other party, to: (i) 

enter into contracts in its own name, (ii) sue and be sued, (iii) establish an account in a financial 

institution in the name of MCA-Morocco II and hold MCC Funding in that account, (iv) expend 

MCC Funding, (v) engage contractors, consultants and/or grantees, including, without limitation, 

procurement and fiscal agents, and (vi) competitively engage one or more auditors to conduct 

audits of its accounts. The governance of MCA-Morocco II will be set forth in more detail in the 

PIA, the constitutive documents and internal regulations of MCA-Morocco II ("Internal 

Regulations") or as otherwise agreed in writing by the Parties. The Internal Regulations will be 

in accordance with MCC's Guidelines for Accountable Entities and Implementation Structures, 

published on the MCC Website. 

MCA-Morocco II will be administered, managed and supported by the following bodies: a board 

of directors (the "Board ofDirectors"); a management unit (the "Management Unit"); and one 

or more Stakeholders Committees. MCA-Morocco II will use various Government entities to 

help implement specific Projects. The CEILD will be created as part of MCA-Morocco II, as 

referenced above. 

(b) 	 Board of Directors. 

The Board of Directors will have ultimate responsibility for the oversight, direction, and 

decisions of MCA-Morocco II, as well as the overall implementation of the Compact. The 

Board of Directors will be comprised of eleven voting members. As of the date hereof, the 

voting members ofthe Board of Directors will include the following representatives: 

(i) The Head of Government; 

(ii) 	 A representative from the ministry responsible for education; 

(iii) 	 A representative from the ministry responsible for technical and vocational 

education and training; 

(iv) 	 A representative from the ministry responsible for agriculture; 

(v) A representative from the ministry responsible for the interior; 

(vi) 	 A representative from the ministry responsible for commerce and industry; 

(vii) 	 A representative from the ministry responsible for finance; 

(viii) A representative from the ministry responsible for labor; 

ANNEX I- 12 

(ix) A representative for the private sector; and 

(x) Two representatives for civil society. 

The number of voting members and their identity may be changed through amendments to the 

Internal Regulations with MCC's approval. The members of the Board of Directors may be 

represented by alternates appointed pursuant to MCA-Morocco II's Internal Regulations. In 

addition, MCA-Morocco ll's Director General and MCC's Resident Country Director in 

Morocco will serve as non-voting members of the Board. 

The process of selecting the Board members will be further stipulated in the Internal Regulations 

and will be consistent with the MCC's Guidelines for Accountable Entities and Implementation 

Structures. 

(c) Management Unit. 

The Management Unit, as defined below, will report to the Board of Directors and will have 

principal responsibility for the day-to-day operations and management of the Compact. 

The Management Unit will be led by a Director General and will be composed of the directors 

and officers as agreed between the Parties and consistent with the MCC's Guidelines for 

Accountable Entities and Implementation Structures. The Management Unit will be selected 

after an open, competitive, and non-discriminatory recruitment and selection process (or its 

equivalent), and the appointment of each member of the Management Unit is subject to MCC 

approval. The officers will be supported by appropriate additional staff to enable the 

Management Unit to execute its roles and responsibilities. Upon written notice by MCC to 

MCA-Morocco II, the selection of candidates for additional positions within MCA-Morocco II 

will be subject to MCC approval. 

(d) Stakeholders' Committee(s). 

(i) Composition. MCA-Morocco II will be assisted by one or more 

stakeholders' committees (each a "Stakeholders' Committee"), which will be created according 

to a process in accordance with MCC's Guidelines for Accountable Entities and Implementation 

.. '. Structures, as approved by MCC. Without limiting the foregoing, as required in MCC's 

Guidelines for Accountable Entities and Implementation Structures, each Stakeholders' 

Committee will be composed of inter alia, program beneficiaries, regional and local government 

representatives, entities with an interest or involvement in the implementation of the Compact, 

key NGOs, and any applicable civil society and private sector representatives. 

(ii) Roles and Responsibilities. The Stakeholders' Committee(s) will be 

responsible for continuing the consultative process throughout implementation of the Compact. 

While the Stakeholders' Committee(s) will not have any decision-making authority, the 

Stakeholders' Committee(s) will be responsible for reviewing, at the request of the Board or the 

Management Unit, certain reports, agreements, and documents related to the implementation of 

the Compact in order to provide advice and input to MCA-Morocco II regarding the 

implementation of the Program. 

ANNEX I -13 
2. Implementing Entities. 

Subject to the terms and conditions of this Compact, the Program Implementation Agreement 

and any other related agreement entered into in connection with this Compact, the Government 

may engage one or more entities of the Government to implement and carry out any Project or 

Activity (or a component thereof) under this Compact (each, an "Implementing Entity"). The 

appointment of any Implementing Entity will be subject to review and approval by MCC. The 

Government will ensure that the roles and responsibilities of each Implementing Entity and other 

appropriate terms are set forth in an agreement, in form and substance satisfactory to MCC (each 

an "Implementing Entity Agreement"). 

3. Fiscal Agent. 

Unless MCC agrees otherwise in writing, the Government will engage a fiscal agent (a "Fiscal 

Agent"), which will be responsible for assisting the Government with its fiscal management and 

assuring appropriate fiscal accountability of MCC Funding, and whose duties will include those 

set forth in the Program Implementation Agreement and such agreement as the Government 

enters into with the Fiscal Agent, which agreement will be in form and substance satisfactory to 

MCC. 

4. Procurement Agent. 

Unless MCC agrees otherwise in writing, the Government will engage one or more procurement 

agents (collectively, the "Procurement Agent") to carry out and certify specified procurement 

activities in furtherance ofthis Compact. The roles and responsibilities of the Procurement 

Agent will be set forth in the Program Implementation Agreement or such agreement as the 

Government enters into with the Procurement Agent, which agreement will be in form and 

substance satisfactory to MCC. The Procurement Agent will adhere to the procurement 

standards set forth in the MCC Program Procurement Guidelines and ensure procurements are 

consistent with the procurement plan adopted by the Government pursuant to the Program 

Implementation Agreement, unless MCC agrees otherwise in writing. 

ANNEX I - 14 

ANNEX II 

MULTI-YEAR FINANCIAL PLAN SUMMARY 

This Annex II summarizes the Multi-Year Financial Plan for the Program. 

A. General. 

A multi-year financial plan summary ("Multi-Year Financial Plan Summary") is attached 

hereto as Exhibit A to this Annex II. By such time as specified in the Program Implementation 

Agreement, the Government 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, the annual and quarterly funding 

requirements for the Program (including administrative costs) and for each Project, projected 

both on a commitment and cash requirement basis. 

B. Government LMIC Contribution. 

During the Compact Term, the Government will make contributions, relative to its national 

budget and taking into account prevailing economic conditions, as are necessary to carry out the 

Government's responsibilities under Section 2.6(a) of this Compact. These contributions may 

include in-kind and financial contributions (including obligations of Morocco on any debt 

incurred toward meeting these contribution obligations). In connection with this obligation, the 

Government will develop a contribution plan set forth in the Program Implementation 

Agreement to complement MCC Funding through allocations including but not limited to: I. a 

progressive increase in its funding for the Private Sector-Driven TVET grant facility such that 

the Government will fund a minority portion of the first round and the majority portion of the 

second round for the Private Sector-Driven TVET grant facility; 2. demonstration projects for the 

Industrial Land Activity; and 3. support for operations and maintenance and discretionary 

funding for the Secondary Education Activity. The Government commits to a minimum 

contribution of $67,500,000 over the Compact Term. Such contribution will be in addition to the 

Government's spending allocated toward such Project Objectives in its budget for the year 

immediately preceding the establishment of this Compact. The Government's contribution will 

be subject to any legal requirements in Morocco for the budgeting and appropriation of such 

contribution, including approval of the Government's annual budget by its legislature. The 

Parties may set forth in the Program Implementation Agreement or other appropriate 

Supplemental Agreements certain requirements regarding this Government contribution, which 

requirements may be conditions precedent to the Disbursement of MCC Funding. During 

implementation of the Program, the Government's contributions may be modified or new 

contributions added with MCC approval, provided that the modified or new contributions 

continue to advance the Project Objectives. 
EXHIBIT A TO ANNEX II 


MULTI-YEAR FINANCIAL PLAN SUMMARY 


(US$) 

Component CIF Year I Year2 Year3 Year 4 Years Total 

1. Education and Training for Employability 

Project 

I. I Secondmy Education Activity 

2,500,000 12,294,000 29,014,000 29,964,000 29, 114,000 9,694,000 112,580,000 

1.2 Workforce Development Activity 

2,150,000 5,450,000 19,600,000 37,900,000 30,850,000 11,470,000 107,420,000 

Subtotal 4,650,000 17,744,000 48,614,000 67,864,000 59,964,000 21, 164,000 220,000,000 

2. Land Productivity Project 

2.1 Governance Activity 

1,888,000 1,672,000 432,000 1,289,000 2,322,000 2,897,000 10,500,000 

2 2. Rural Land Activity 

0 3,136,000 7,578,000 6,625,000 9,570,000 6,091,000 33,000,000 

23 Industrial Land Activity 

7,866,000 7,689,000 11,099,000 22,201,000 33,967,000 44, 178,000 127,000,000 

Subtotal 

9,754,000 12,497,000 19,109,000 30,115,000 45,859,000 53,166,000 170,500,000 

3. Monitoring & Evaluation 

3 1 Monitoring and Evaluation (M&E) 300,000 920,000 1,120,000 2,170,000 2,870,000 2,620,000 10,000,000 

Subtotal 300,000 920,000 1,120,000 2,170,000 2,870,000 2,620,000 10,000,000 

4. Program Administration and Oversight 

4.1 MCA-Morocco II Program Administration 

3,973,000 5,813,000 5,813,000 5,813,000 5,813,000 7,720,000 34,945,000 

4.2 Fiscal and Procurement Agents 

2,600,000 2,000,000 2,070,000 2,070,000 2,070,000 3,070,000 13,880,000 

43 Audits and Compliance 75,000 100,000 100,000 125,000 125,000 150,000 675,000 

Subtotal 

6,648,000 7,913,000 7,983,000 8,008,000 8,008,000 10,940,000 49,500,000 

ANNEX II -2 

ANNEX III 

COMPACT MONITORING AND EVALUATION SUMMARY 

This Annex III summarizes the monitoring and evaluation plan for this Compact ("M&E Plan"). 

The actual structure and content of the M&E Plan, which may differ from those specified in this 

Annex III, will be agreed to by MCC and the Government in accordance with MCC's Policy for 

Monitoring and Evaluation o.fCompacts and Threshold Programs (the "MCC M&E Policy"). In 

addition, the M&E Plan may be modified from time to time as described in the MCC M&E 

Policy without requiring an amendment to this Annex III. The M&E Plan will be posted 

publicly on the MCC Website and updated as necessary. 

1. Objective. 

MCC and the Government will formulate and agree to, and the Government will implement or 

cause to be implemented, an M&E Plan that explains in detail how and what MCC and MCAMorocco II will (i) monitor to determine whether the Projects are on track to achieve their 

intended results ("Monitoring Component"), and (ii) evaluate to assess implementation 

strategies, provide lessons learned, determine cost effectiveness and estimate the impact of 

Compact interventions ("Evaluation Component"). The M&E Plan will summarize all 

indicators that must be reported to MCC on a regular basis, and describe any complementary 

data to be collected for evaluation of the Program. The M&E Plan will also include any 

monitoring and evaluation requirements that MCA-Morocco II must meet in order to receive 

Disbursements, and will serve as a communication tool so that MCA-Morocco II staff and other 

stakeholders clearly understand the objectives and targets MCA-Morocco II is responsible for 

achieving. The results of M&E activities, measured by monitoring data and independent 

evaluations, will be made publicly available on the website of MCA-Morocco II and on the MCC 

Website. 

2. Program Logic. 

The M&E Plan will summarize the clearly defined Compact-level logic model which illustrates 

how the Projects, Activities, and sub-Activities (as necessary) contribute to the Compact Goal, 

and Project Objectives. This Compact-level logic model will be complemented by lower level 

logic models at the Project, Activity, and/or sub-Activity levels (as necessary) depending on 

Compact design and implementation. All logic models will clearly summarize the outputs, 

outcomes, and goals expected to result from the Program. A description and visual 

representation of the logic underlying each Activity is included below: 

(a) Education and Training for Employability. 

(i) Secondary Education. The underlying cause of weak human capital in 

Morocco is a secondary education system with pedagogy insufficiently aligned with best 

practices, aging infrastructure, and lack of incentives for teachers and administrators to focus on 

student learning and the skills demanded by the labor market. The Activity will focus on (A) 

pedagogical improvement and innovation for improved teacher effectiveness; (B) improved 

school leadership and management for more accountablility through performance contracts, and 

more autonomous school management; and (C) school infrastructure improvements for a more 

conducive student learning environment. The Activity will also pilot new approaches to 

operations and maintenance of secondary school infrastructure. Additionally, the Activity will 
invest in improved student learning assessments and an enhanced education management 

information system. Together this Activity is expected to improve student educational 

achievement and learning outcomes, including skills required by employers, leading to better 

employment outcomes and household incomes in Morocco. 

(ii) Workforce Development. The Moroccan workforce development system 

is generally supply-side oriented and misaligned with private sector skills needs. There are few 

incentives for partnership between training providers and businesses and little labor market data 

to guide planning and career guidance for the emergent workforce. The Activity will stimulate 

private sector provision of skills training for growth sectors through a competitive grants facility 

with both existing and new providers. The Activity will provide technical assistance to the 

Government to operationalize its TVET sector policy reform as well as generating and using 

various student assessments more extensively and effectively. Results-based financing 

mechanisms will incentivize improved performance and innovation in job placement services for 

targeted populations. A labor market observatory will be implemented to help amplify labor 

market signals and enable analysis for decision-making. As a result of Compact investments, it 

is expected that the Moroccan workforce development system will become more agile and 

demand-responsive, and thus better able to provide skills leading to jobs, especially for girls and 

young women. 

ANNEXIIl-2 
Figure 1.b Education & Training for Employability Program Logic 

Education & Training For Employability 


More Women In 

Econcmlc:ally "1able 

Educational and 1'/ET 

,Trades 

ANNEXIII-3 

(b) Land Productivity. 

(i) Land Governance. The problems related to land governance are caused, to 

some extent, by the lack of a national land governance strategy, policy or sector-wide plan, poor 

coordination among government actors, and a legal-regulatory framework that is outdated or 

applied inconsistently. The proposed Activity will address these root causes by conducting an 

inventory of existing laws and necessary ongoing reforms, supporting a national land sector 

strategic dialogue, creating a national land policy and action plan, and creating a Land 

Coordination Mechanism to coordinate land-related policy development and implementation. 

(ii) Rural Land. The contributing causes to low agricultural productivity on 

collective lands include the obstacles to carrying out legal land transactions, the risks associated 

with investing in land over which the user holds tenuous rights, and inefficient and ineffective 

government policies to convert collective land to private ownership. Widespread rural land 

problems of co-ownership and fragmentation also contribute to low productivity. Jn improving 

procedures to convert collective land to private ownership and applying them in demonstration 

areas, the Activity will allow land transactions to occur, including the use of land as collateral, 

and will create incentives to invest through the formalization of secure rights. Further, the 

Activity will attempt to develop tools to address the problems of co-ownership and land 

fragmentation, which have the potential to be applied throughout Morocco, including on land 

that has always been held in private ownership. 

(iii) Industrial Land. The causes of the industrial land problem are myriad, 

including that industrial development is not demand-driven, there is not a level playing field for 

private developers, zones do not have systems in place for management and maintenance, returns 

on industrial development are low, and contractual requirements for the development of vacant 

land in existing zones are either poorly drafted or unenforced. The Industrial Land Activity will 

address these issues by putting in place a sector strategy that will carry out national demand 

studies; creating a more level playing field by requiring that the Government not engage in 

competitive zone development near demonstration sites; selecting private partners that will put in 

place systems for operations and maintenance; providing viability gap financing to make 

investments commercially viable; and strengthening contractual provisions and creating 

incentives to promote land recuperation and utilization. 

ANNEX III -4 

Figure 1.2: Land Productivity Program Logic 

Land Productivity Proiect 

,.. 

ANNEXIII-5 
2.1 	 Projected Economic Benefits and Beneficiaries. 

(a) 	 Economic Rates of Return 

(i) 	 Education and Training for Employability Project. 

(A) 	 Secondary Education Activity. 

The current economic analysis for the Secondary Education Activity foresees three distinct 

benefit streams supporting the investment: 

• 	 Improved test scores and higher future earnings due to 

improvements in classroom pedagogy; 

• 	 Improved test scores and higher future earnings resulting from 

the implementation of school based management; and 

• 	 Lower dropout rates due to infrastructure improvements. 

The estimated economic rate of return for this investment ranges from 12.4 percent to 15.1 

percent. 

(B) Workforce Development Activity. The current economic analysis 

for the Workforce Development Activity foresees the following benefit streams supporting the 

investment: higher future earnings and higher probabilities of employment due to improvements 

in the quality and relevance of existing and new training centers. 

The estimated economic rate of return for this investment is 13.2 percent. 

(ii) 	 Land Productivity Project. 

(A) Industrial Land Activity. For the Industrial Land Activity, the 

economic analysis measures the increase in value added from bringing unutilized land into 

industrial use as a result of the intervention. The value added comes from both bringing unused 

land into industrial use in existing industrial zones, and creating new industrial zones. 

Because of the preliminary nature of current cost estimates, the estimated economic rate of return 

for this investment ranges from 13.4 percent to 16.7 percent. 

(B) Rural Land Activity. The benefit stream for the Rural Land 

Activity is based on the assumption that improved land tenure security will lead to increased 

investments by farmers upon conversion of their land from collective to privately-owned. The 

economic rate of return compares the productivity of agricultural practices on collective land to 

that of owners of private lands. 

The estimated economic rate of return for this investment is 23.0 percent. 

ANNEX III-6 
(b) Beneficiary Analysis. 

The M&E Plan will also define in detail the persons or entities expected to benefit from the 

Compact. Beneficiary analysis is an extension of economic rate of return analysis that seeks to 

disaggregate the total increase in income to determine specifically which segments of society 

will be1 ,efit from the Compact Projects and Activities. Where relevant, the beneficiary analysis 

will disaggregate benefits by income category, sex, and geographic location. MCC considers 

beneficiaries 2 of Projects and Activities to be those people who experience better standards of 

living as a result of the Project or Activity (as the case may be) through higher real incomes. For 

this Compact: 

• 	 Beneficiaries for the Secondary Education Activity are defined as all graduates of 


Activity-supported secondary schools and their families, every year until year 20; 


• 	 Beneficiaries for the Workforce Development Activity are defined as all graduates of 

Activity-supported vocational training centers and their families, every year until year 20; 

• 	 Beneficiaries for the Industrial Land Activity are defined as all employees, existing or 

potential, of firms located in the targeted industrial zones, and all members oftheir 

immediate families; and 

• 	 Beneficiaries of the Rural Land Activity are defined as owners, and all members of their 

immediate families, of converted collective land who gain a title as a result of the 

Activity, make investments to adopt technological practices similar to that of farmers of 

privately-owned land, and consequently experience an increase in land-related income. 

The expected economic rates of return and beneficiaries of this Compact are shown in Table 2.1. 

Table 2.1: Estimated Economic Rates of Return and Beneficiaries 

. /A . . Economic Rate of Estimated Beneficiaries ProJect ct1v1ty Return {ERR) (long term - year 20) 

l 
 Education and Training for Employability Project 


: Secondary Education Activity r 	 lV'.l.%-15 1% 1,744,100 

!

[-Workforce Development Activity 13.2% 	 275,000 

~ Land Productivity Project 

- ·-·

Industrial Land Activity 

Land Governance Activity 

Rural Land Activity 

96,300 

N/A 

81,500 

2 As used in this Compact, the term "beneficiary" has the meaning described in MCC's Guidelines for Economic 

and Beneficiary Analysis. 

ANNEX III -7 
(c) Risks and Assumptions. 

The M&E Plan will also outline key assumptions and risks that underlie the accomplishment of 

the theory of change summarized in the program logic. However, such assumptions and risks will 

not excuse any Party's performance unless otherwise expressly agreed to in writing by the other 

Party. 

3. Monitoring Component. 

As defined in the MCC M&E Policy, monitoring is the continuous, systematic collection of data 

on specified indicators to provide indications of progress toward objectives and the achievement 

of intermediate results along the way. To monitor progress toward the achievement of results of 

this Compact, the Monitoring Component of the M&E Plan will identify (i) the Indicators (as 

defined below), (ii) the definitions of the Indicators, (iii) the sources and methods for data 

collection, (iv) the frequency for data collection, (v) the party or parties responsible for collecting 

and analyzing relevant data, and (vi) the timeline for reporting on each Indicator to MCC. It 

should be noted that some Indicators will continue to be tracked after the Compact Term as 

necessary. 

3.1 Indicators 

The M&E Plan will measure the results of the Program using quantitative, objective, and reliable 

data ("Indicators"). 

(a) The M&E Plan will establish baselines for every Indicator (each a, "Baseline"). 

An Indicator's Baseline should be established prior to the start of the corresponding Project, 

Activity and/or sub-Activity. Baselines demonstrate that the problem can be specified in 

measurable terms, and are thus a pre-requisite for adequate intervention design. The Government 

will collect Baselines on the selected Indicators or verify already collected Baselines where 

applicable. 

(b) The M&E Plan will establish a benchmark for each Indicator that specifies the 

expected value and the expected time by which the result will be achieved ("Target"). 

.. . , ·(~y,,..-'.~e-M&E Plan will indicate\vhich Iridicfil'&s wfiftreffi~~gated hy-sex: 

income level, age, and beneficiary types to the extent practical and applicable. 

(d) MCC's Common Indicators (as described in the MCC M&E Policy) will also be 

included as relevant. 

(e) Subject to prior written approval from MCC and in accordance with the MCC 

M&E Policy, the Government may add Indicators or refine the definitions and Targets of 

existing Indicators. 

(f) MCA-Morocco II must report to MCC on monitoring Indicators in the M&E Plan 

on a quarterly basis using an Indicator Tracking Table (ITT) in the form provided by MCC. No 

changes to Indicators, Baselines or Targets may be made in the ITT until the changes have been 

approved in the M&E Plan. Additional guidance on Indicator reporting is contained in the 

Reporting Guidelines. In the case that MCA-Morocco II submits a six-month disbursement 

request, the ITT must still be submitted quarterly. 

ANNEX III - 8 
Key Indicators that can be reported on at least an annual basis will be included in quarterly 

monitoring indicator reports, while Indicators that require survey data or a longer time period to 

track will be tracked for evaluation purposes. 

The M&E Plan is expected to contain the monitoring Indicators listed in the following tables: 

Graduates Ji-om The number ofstudents 

Compact-supported graduatingfrom the highest 

Lower Secondary grade (year) for that educational Number 0 17,937 /year 

Schools (Colleges/ level in Compact-supported 

education schoolin ro rams. 

Graduates from The number ofstudents 

Further Compact-supported graduating/ram the highest 

Education Upper Secondary grade (year) for that educational Number 0 8,969/year 

Schools (Lyceesl level in Compact-supported 

education schoolin ro rams. 

Students enrolled in The number ofstudents enrolled 

schools selected to or participating in Compact- Number 0 80,719 participate in participant schools (lower or 

Com act Activities u er secondar schools/ 

The number ofeducational 

School # ofschools with facilities constructed or 

Infrastructure completed physical rehabilitated according to Number 0 90 

Improvement rehabilitations standards stipulated in MCA 

contracts signed with 

im lementers 

Effective The number ofindividual School 

School # ofschools with Improvement Plans approved for 

Lea~~~~l.1JR" approved School implementation, as defined in Number 0 90 ' • : 4. • _,__ ~~,,.1(~ ~· tand- ... A Improvement Plans relevant 1mplementzng enrtty··· ... 

Management a reements 

3 Final target in the M&E Plan will be drawn from Ministry of National Education and Vocational Training data on 

student cohorts and an agreed Project workplan. This target will only count students who complete a full, threeyear cycle after initiation of school participation in the Employability Project. Final indicator and corresponding 

targets in the M&E Plan will be modified to apply to all selected schools, upon completion of regional selection 

and school selection. 

4 Ibid. 

5 Those upper secondary students already who attended a Compact-supported lower secondary school will imply a 

corresponding reduction in Compact year 5 and Compact year 10 targets. 

ANNEX III -9 
The number ofschool 

School administrators who complete 

administrators Compact-supported training Number 0 TBD 

trained focused on supporting teachers 

in implementing improved 

mana ement techni ues 

The number ofscience, math, 

Improved· Teachers trained in language, and JCT teachers who 

Teachers, pedagogical complete Compact-supported Number 0 TBD Teaching training focused on instructional 

Methods innovation quality as defined by the 

Secondar Education Activi 

' Private 'Sector Number of Number ofpartnerships with the 

private sector in Compact- Number 0 TBD Investment partnerships artici ant seconda schools 

National learning Date on which full national 

assessments reporting cycle is Date NIA TBD 

Improved assessments 

com feted 

Dataand International Date on which full PISA Date NIA TBD Policy learnin assessments re ortin c cle is com leted 

Feedback Educational 

Loops Management Date NIA TBD Information System 

(EMIS im rovements 

Out ut Indicators 

Acquisition of 

Private Sectorrelevant Skills 

Graduates from 

Compact-supported 

TVET centers 

The number ofstudents 

receiving a formal 

completion/graduation 

certificate in Compactsupported education schooling 

ro ams. 

Number 0 3,300lyear 

'Programs which 

Respond and Adapt 

to Private Sector 

Demand 

Existing TVET 

centers 

transformed to 

more Private 

Sector-linked 

models 

The number ofCompactsupported TVET centers which 

are operational and have 

officially enrolled students in 

classes 

Number 0 TBD 

New PPP TVET 

Centers 

The number ofnew, CompactSU orted TVET centers which Number 0 TBD 

ANNEX III - 10 

Greater Productivity 

ofFormerly 

Collective Rural 

Land 

Land rights 

formalized 

(households) 

Land rights 

formalized 

ectares 

are operational and have · 

officially enrolled students in 

classes 

Out ut Indicators 

The number ofhouseholds 

receiving private ownership 

rights through registered 

titles 

The number ofhectares 

converted to private 

ownershi 6 

Number 

Number 

0 NIA 

0 46,000 

More Strategic 


Coordination and 


Reform for Land 


Productivity 


Development and 

adoption ofa 

national land 

strategy 

Date on which a national 

Zana strategy is formally Date NIA TBD 

adopted by tke Government 

Amount of 

financing 

leveraged Private Sector throtf hPPPs Investment USD invested 

in Activity 

arks 

Total non-MCC, nonGovernment financing invested 

in industrial zone PPPs 

TBD 

us TBD TBD Dollars 

us TBD TBD Dollars 

6 This indicator will measure hectares under the private ownership ofindividuals rather than an alternative status 

known as "private ownership by a collective." 

ANNEX III - 11 
Higher Rates of Number ofhectares ofland Unutilized land .Industrial Land unutilized at baseline which recuperated in Number TBD TBD Occupancy/ are recuperated into existing existing zones Utilization zones 

Number of Industrial parks developed industrial utilizing a market-driven Number NIA TBD Greater Supply of parks approach7 

Market-driven develo ed 

Industrial Land Hectares ofindustrial land Industrial land developed utilizing a market­ Number NIA TBD developed driven a roach 

Process Indicators 

Capacity Building 

·fur Industrial Land 

Strategy and' 

Im lementation 

Official 

creation ofthe 

CEILD . 

Date on which the CEILD is 

created Date NIA Entry into Force 

of the Compact 

Capacity Building 

for Industrial Land 

Strategy and 

Im lementation 

Agreement on 

plan/or 

sustainability 

o CEILD 

Date on which the Parties 

agree on a plan for 

sustainability ofCEILD 

Date NIA TBD 

4. E':aluation Component. 

While good program monitoring is necessary for program management, it is not sufficient for 

assessing ultimate. results. M CC therefore advocates the use of different types of evaluations as 

complementary tools to better understand the effectiveness of its programs. As defined in the 

MCC M&E Policy, evaluation is the objective, systematic assessment of a program's design, 

·implementation and results. MCC is coμimitted to making its evaluatioqs as rigorouias 

warranted fa order to understand the causal impacts of its programs on the expected outcomes 

.and to assess c0st effectiveness. The Evaluation Component ofthe M&E Plan may contain three 

._...,.., ·:·, · ;' \, types..of.ev.aluati0~~~~~s-.oecessary:.. (i} indep.endenh~aluatians.,{impl!~~~m!~::~.-­

performance evaluations); (ii)rself-evaluation, and (iii) special studies, each ofwhich is further 


described in the MCC M&E Policy. 


(a) Independent Evaluations. Every Project must undergo a comprehensive, 

independent evaluation (impact and/or performance) in accordance with the MCC M&E Policy. 

The Evaluation Component efthe M&E Plan will describe the purpose ofthe evaluation, 

methodology, timeline, required MCC approvals, and the process for collection and analysis of 

· data for each evaluation. All independent evaluations must be designed and implemented by 

independent, third-party evaluators. Ifthe Government wishes to engage an evaluator, the 

.; engagement will be subject to the prior written approval ofMCC. Contract terms must be 

acceptable to MCC and ensure non-biased results and the publication ofresults. 

7 As described in Annex I. 

ANNEX III - 12 
For each independent evaluation, MCA-Morocco II is expected to review and provide 

feedback to independent evaluators on the evaluation design reports, evaluation materials 

(including questionnaires), baseline report (if applicable), and any interim/final reports in order 

to ensure proposed evaluation activities are feasible, and final evaluation products are technically 

and factually accurate. 

(i) Education and Training for Employability Project. 

(A) Secondary Education Activity. This Activity is expected to receive 

an independent impact evaluation in which outcomes ofthis Activity will be rigorously assessed 

and attributed to .Compact investments in secondary education. MCC and MCA-Morocco II 

have developed plans to employ a randomized control trial evaluation to assess the impact ofthis 

Activity. Schools participating in the Activity will be chosen at random from a set of eligible 

schools. The random assignment of schools in the treatment group (those who will participate in 

.the program) and the control group (those who do not participate during the evaluation period) 

allows for rigorous attribution of school-level impacts as a result ofCompact investments. 

To ensure the validity ofthe evaluation methodology, between the time of random selection and 

the conclusion of data collection (two to three years after the end ofthe Compact), the Ministry of 

National Education and Vocational Training will ensure that: 

• 	 No school designated as a "control" school in the context ofthe impact evaluation will 

receive funding and/or technical assistance on the part ofthe Government or donors 

beyond those necessary for continued operations related to the management, pedagogy 

and infrastructure of schools (i.e. "business as usual"); 

• • Schools designated as "control" will neither be systematically targeted nor systematically 

precluded from other Government activities, funding, or suppqrt; and 

I 

• 	 Schools selected as beneficiaries ofthe Secondary Educ~tion Activity will be neither 

systematically targeted nor systematically precluded from other Government activities, 

fonding, or support ~ 

In addition to rigorous impact evaluation methods, the ~econda~ Education Activity is expected 

~ ,... ,...fo ·enfP'IB1\itiWfttative met~odsand scnoof-1evel case·"'smtnes'fo·itmf~~~esiifts ofCompact· rl .t''· 

investments. 

The M&E Plan will contain the evaluation Indicators listed in the following tables: 

More 

Employable 

Workforce 

Student 

learning 

outcomes 

Outcome Indicators 

Specific evaluation strategies will 

be employed to track improvements 

in ·student learning outcomes on the Number 

PNEA (National Assessments) and 

other relevant learnin 

TBD .2SD 

increase Year 10 

ANNEX III - 13 

assessments, including measures of 

sot skills 

Percentage of 

high school 

graduates who 

ent~r tertiary 

Greater studies 

Employment Average 

length of 

unemployment 

qfter 

aduation 

Transition 

rate from 9th 

to 10th grade 

(TangerTetouan 

Percentage of 

1rJh grade 

Further 

Education 

entrants who 

graduate from 

)21h grade 

(TangerTetouan 

Time spent 

studying in 

and out of 

'sghool 

. "'-'1.t~J}et,t~.~'i.: ·..... ·~Mhll"itgement 

of Financial 

and 

Infrastructure 

Assets 

The number of12th grade students 

who are placed in a tertiary 

program divided by the number of 

12th grade students who take the 

12th ade exit exam 

Measure ofthe time, on· average, it 

takes graduates ofsecondary school 

to find full-time employment 

(among those who do n(}t pursue 

tertia education 

The number ofstudents who enter 

10th grade divided by number of' 

students who completed 9th grade 

The number of12th grade students 

who take andpass the 11th-12th 

grade exit examinations in math 

and science, divided by the number 

of10th grade entrants in same 

cohori 

Observation-based and/or selfreported measurements oftime on 

task in the classroom and time spent 

on schoolwork outside the 

classroom. 

Percentage NIA NIA NIA 

Number 

Percentage 

Percentage 

TBD 

TBD 

TBD 

TBD 

5% 

increase 

5% 

increase 

TBD 

TBD 

TBD 

Number TBD NIA NIA. 

'""Ev~luation. ~/th/d;gre~-;.?o~'&z1~ft--~ }'.~!,:;-·i.- ­

Improved Compact-funded secondary schools maintenance Number TBD TBD TBD implement more cost-effective practices maintenance practices 

(B) Workforce Development Activity. Specific evaluation plans for 

this Activity are.expected to be developed prior to entry into force ofthe Compact, though initial 

evaluation questions and expected results are listed below for reference. 

Rigorous impact evaluation methods are not expected to be·feasible due to limited student numbers 

in given grantee programs and a lack of a rigorous comparison group for any of the Activity's 

other components. Quantitative analysis of grantee and student results (e.g., tracer studies) and 

qualitative analysis of policy and program improvements will form the core of the Activity's 

·evaluation strategy. Note on Results-based Financing: Any results-based financing efforts as part 

ANNEX III - 14 

of the Activity will be subject to rigorous measurement of program results. Rigorous impact 

evaluations are considered a priority to eliminate any subjectivity from the measurement of the 

·results on which financing would be disbursed, though an ult_imate determination of impact 

evaluation feasibility will be made between MCC and MCA-Morocco IL 

The M&E Plan will contain the evaluation Indici;itors listed in the following tables: 

,-:. .-··Table 4.2: Ed1icati0n. and·Training-foi··_Eiuployabiliti' l~rojcct: Workforce)>evelopnient Activity·,·.. ·. · ·., ··.· ·.... ·; ..:~·< ·.·· _._ ...::....:.: .:>.._.:·:··:- ·.··.<, .. : _: · __ E-\,_a'huit.ioi{J11dicato~s · . , ··.:_'>· ..... ;_:::· :":" · .. :.:_·,: : ·· ... ···.. · · .. - - ,· ·. 

..: 

~~---- Outcome Indicators 

Employment rate 

ofgraduates of 

Compactsupported 

programs 

Employment rate 

ofgraduates of 

CompactGreater supported 

Employment programs (female) 

Results-based 

financing 

mechanisms for 

improved 

employment 

' .. ..,~'fr.' ... __ .ou,9cppes.. " ' ... r 1;•;-:').....,. 

Wage differential 

· ofgraduates of 

Productivity 

individual 

Compact­

'supported graniee 

programs 

(Earnings) 

Average post-graduation 

employment rate .of 

graduates ofCompactsupported grantee 

programs with respect to 

comparable TVET 

institutions (one year after 

aduation 

Average post-graduation 

employment rate offemale 

graduates ofCompactsupported grantee 

programs with respect to 

comparable TVET 

in_~titutions (one year after 

aduation 

The number~ofresultsbased financing 

mechanisms which target 

improved labor market 

outcomes for 

disadvantaged groups, 

such as at-risk, 

unemployed youth or 

- ·unemp1ofo"J.ftlr:.. · 

economically inac;tive 

women 

Average wage premium of 

graduates ofCompactsupported grantee 

programs compared to 

average wage ofstudents 

graduatingfrom a 

comparable public 

institution (one year after 

raduation 

ANNEX III - 15 

Percentage 

Percentage 

Number 

Percentage 

54.4 

TBD 

TBD 

.. ~ ....., ...

0 

69.4 TBD 

TBD TBD 

TBD TBD .­

...:.- .... ­ ... ?~"'.~,:~ ~ . -:-.· ... 

29.7% Years increase 
(ii) Land Productivity Project. 

(A) Land Governance Activity. Specific evaluation plans for this 

Activity are expected to be developed prior to entry into force ofthe Compact, though initial 

evaluation questions and expected results are listed below for reference. 

Independent evaluation of this Activity will largely focus on process evaluation and political 

economy analyses which assess the degree of success of governance reforms/improvements, and 

the explanations for the observed results. · 

The M&E Plan will contain the ev~luation Indicators listed in the following tables: 

More Strategic 

Coordination and 

Refonn for Land 

Prpductivi 

Land-related 

reforms adopted 

Outcome Indicators 

. TBD TBD TBD TBD TBD 

(B) Rural Land Activity. Specific evaluation plans for this Activity are 

expected to be developed prior to entry into force of the Compact. 

Rigorous impact evaluation methods are not expected to be feasible, as the Government has 

already targeted specific sites for Rural Land Activity interventions. Quasi-experimental 

matching of non-targeted perimeters to selected perimeters may be feasible, though data 

. 	 -availability may. reduce the utility of such an approach, in which case a quantitative performance 

evaluation will be undertaken, including qualitative studies at the level of relevant rural 

collectives. 

. , . . The M&E Plan will eontain the evaluation Indicators listed in the following tables: 

Outcome Indicators 

Great¥r 

Product1'vity 

ofFonnerlyIncrease in 

investment in 

targeted rural 

land 

Increase in farmrelated investment per 

hectare 

Percentage TBD8 

21% 

increase 

9 

Year 10 

8 Baseline value is expected to be established by quarter 2 ofCompact year 2. 

9 No change is expected as of Compact year 5, as changes in investment are expected to occur after the Compact 

Term. Target for Compact year 10 is drawn from 2015 economic modelling survey. 

ANNEX III - 16 
Change in returns to 

land (e.g. crop and 

Increase in 

agricultural 

productivity in 

targeted rural 

land 

livestock production) Percentage TBD10 

145% 

increase 

II 

Year 10 

as a result ofCompact 

investments 

(C) Industrial Land Activity. Specific evaluation plans for this 


Activity are expected to be developed prior to entry into force ofthe Compact. 


Rigorous impact evaluation methods are not expected to be feasible due·to the limited number of 

sites targeted by the Activity and the inability to construct an adequate comparison to specific 

industrial zones. Quantitative and qualitative performance1 evaluation using baseline and end-line 

'characteristics· ofthe selected sites/partners/firms will be the evaluation strategy applied to this 

Activity. 

Utilization 

rates within 

Increased CompactProd~ctivity supported 

industrial 

zones 

Jobs in 

Great~r CompactEmployment supported 

indl1Sttial 

zones 12 

' i •.J #'""E. ·-·-"!~ ... • ~ 

Outcome Indicators 

Percentage ofhectares in Compact-­

supported zones, which ~isibly 

demonstrate economic activity 

(Active Ha/Total Ha) 

Number ofjobs in enterprises in 

Compact zones, measured as the 

number offull-time employees in 

addition to t~e number ofemployees 

at the time of 

installation/rehabilitation in the 

zone. 

Percentage 0 80 

Numper TBD TBD 

.. . -

Year 12 

TBD 

(b) Self-Evaluation. Upon completion ofthe Compact Term, both MCC and MCAMorocco II will.comprehensively-assess three fundamental questions: {i) Did the Program meet 

the· Project Objectives; (ii) Why did the Program meet or not meet the Project Objectives; and 

(iii) What lessons can be learned from the implementation experience (both procedural and 

· substantive). The MCA-Morocco II staffwill draft the Compact completion report in the last 

year ofthe Compact Term to evaluate these fundamental questions and other aspects ofProgram 

10 Baseline value is expected to be established in Compact year 2. 

1.1 No change is expected as ofCompact year 5, as changes in investment are expected to occur after the Compact 

Term. Target for Compact year 10 is drawn from 2015 economic modelling' survey. 

12 While increases in jobs will not be fully attributed to Project interventions, tracking growth in employment is 


meant as a partial proxy ofthe general health offirms located in Activity-supported zones. 


ANNEX III - 17 
performance. Each MCA-Morocco II department will be responsible for drafting its own section 

to the Compact completion report for its own activities, subject to cross-departmental review. 

(c) Special Studies. Plans for conducting special studies will be determined jointly 

between the Government and MCC before the approval of the M&E Plan. The M&E Plan will 

identify and make provision for any special studies, ad hoc evaluations, and research that may be 

needed as part of the monitoring and evaluating of this Compact. Either MCC or the 

Government may request special studies or ad hoc evaluations of Projects, Activities, or the 

Program as a whole, prior to the end of the Compact. 

The results of all evaluations will be made publicly available in accordance with the MCC M&E 

Policy. 

5. Data Quality Reviews. 

Data Quality Reviews (DQRs) are a mechanism to review and analyze the utility, objectivity, 

and integrity of performance information. DQRs are to cover: (a) quality of data, (b) data 

collection instruments, (c) survey sampling methodology, (d) data collection procedures, (e) data 

entry, storage and retrieval processes, (f) data manipulation and analyses, and (g) data 

dissemination. MCC requires that an independent entity conduct the DQR, such as a local or 

international specialized firm or research organization, or an individual consultant, depending on 

the size of the Program or Project in review. The frequency and timing of data quality reviews 

must be set forth in the M&E Plan; however MCC may request a DQR at any time. DQRs should 

be timed to occur before or early enough in the Compact Term that meaningful remedial 

measures (if any) may be taken depending on the results of the review. The methodology for the 

review should include a mix of document and record reviews, site visits, key informant 

interviews, and focus groups. 

6. Other Components of the M&E Plan. 

In addition to the monitoring and evaluation components, the M&E Plan will include the 

following components: 

.. ,(a) , Management Inform~tion System. The M&E, ,P)~l),yvj~I describe the information 

system that will be used to collect data, store, process and deliver information to relevant 

stakeholders in such a way that the Program information collected and verified pursuant to the 

M&E Plan is at all times accessible and useful to those who wish to use it. The system 

development will take into consideration the requirement and data needs of the components of 

the Program, and will be aligned with existing MCC systems, other service providers, and 

ministries. 

(b) Budget. A detailed cost estimate for all components of the M&E Plan. 

7. Responsibility for Developing the M&E Plan. 

Primary responsibility for developing the M&E Plan lies with the monitoring and evaluation 

directorate of MCA-Morocco II with support and input from MCC's monitoring and evaluation 

and economic analysis staff. The M&E Plan must be developed in conjunction with key 

ANNEX III - 18 
stakeholders, including MCA-Morocco II leadership and sector leads, the MCC resident country 

mission, other MCC staff, and external stakeholders, as applicable. 

8. Approval and Implementation of the M&E Plan. 

The approval and implementation of the M&E Plan, as amended from time to time, will be in 

accordance with the Program Implementation Agreement, any other relevant Supplemental 

Agreement and the MCC M&E Policy. All M&E Plan modifications proposed by MCAMorocco II must be submitted to MCC for prior written approval. The M&E Plan may undergo 

peer review within MCC before the beginning of the formal approval process. 

9. Post Compact M&E Plan. 

As part of the planning process for Compact closure, MCC and MCA-Morocco II will develop a 

post-Compact M&E Plan designed to observe the persistence of benefits created under this 

Compact. This plan should describe future monitoring and evaluation activities, identify the 

individuals and organizations that will undertake these activities, and provide a budget 

framework for future monitoring and evaluation. The post-Compact M&E Plan should build 

directly off of the Compact M&E Plan. 

ANNEX III - 19 

ANNEX IV 


CONDITIONS PRECEDENT 


TO DISBURSEMENT OF COMPACT IMPLEMENTATION FUNDING 


This Annex IV sets forth the conditions precedent applicable to Disbursements of Compact 

Implementation Funding (each a "CJF Disbursement"). Upon execution of the Program 

Implementation Agreement, each CIF Disbursement will be subject to all of the terms of the 

Program Implementation Agreement, except that the conditions to each CIF Disbursement will 

continue to be those set forth in this Annex IV. 

1. Conditions Precedent to Initial CIF Disbursement. 


Each of the following must have occurred or been satisfied prior to the initial CIF Disbursement: 


(a) The Government (or MCA-Morocco II) has delivered to MCC: 

(i) an interim fiscal accountability plan acceptable to MCC; and 

(ii) a CIF procurement plan acceptable to MCC. 

(b) The Government will have enacted such regulations as necessary to implement 

Section 2.8 of this Compact. 

(c) The Government intends to develop the Land Strategy and implementation 

roadmap through a high-level, inclusive and participatory dialogue process, beginning with an 

assises. The Government will provide a Jetter to MCC's satisfaction describing how the process 

will be led and supervised. The letter will also summarize the measures referred to in Section 

8.1 (b )(iii) and the time by when such measures will be implemented. 

2. Conditions Precedent to all CIF Disbursements (Including Initial CIF 

Disbursement). 

E.ach of the following must have occurred or been satisfied priqr to ~~ch. CIF Disbursement: 

(a) The Government (or MCA-Morocco II) has delivered to MCC the following 

documents, in form and substance satisfactory to MCC: 

(i) a completed Disbursement Request, together with the applicable periodic 

reports, for the applicable Disbursement Period, all in accordance with the Reporting Guidelines; 

(ii) a certificate of the Government (or MCA-Morocco II), dated as of the date 

of the CIF Disbursement Request, in such form as provided by MCC; 

(iii) if a Fiscal Agent has been engaged, a Fiscal Agent Disbursement 

Certificate; and 

(iv) if a Procurement Agent has been engaged, a Procurement Agent 

Disbursement Certificate. 
(b) Ifany proceeds of the CIF Disbursement are to be deposited in a bank account, 

MCC has received satisfactory evidence that (i) the Bank Agreement has been executed and (ii) 

the Permitted Accounts have been established. 

(c) Appointment of an entity or individual to provide fiscal agent services, as 

approved by MCC, until such time as the Government provide:> to MCC a true and complete 

copy of a Fiscal Agent Agreement, duly executed and in full force and effect, and the Fiscal 

Agent engaged thereby is mobilized. 

(d) Appointment of an entity or individual to provide procurement agent services, as 

approved by MCC, until such time as the Government provides to MCC a true and complete 

copy of the Procurement Agent Agreement, duly executed and in full force and effect, and the 

Procurement Agent engaged thereby is mobilized. 

(e) MCC is satisfied, in its sole discretion, that (i) the activities being funded with 

such CIF Disbursement are necessary, advisable or otherwise consistent with the goal of 

facilitating the implementation of this Compact and will not violate any applicable law or 

regulation; (ii) no material default or breach of any covenant, obligation or responsibility by the 

Government, MCA-Morocco II or any Government entity has occurred and is continuing under 

this Compact or any Supplemental Agreement; (iii) there has been no violation of, and the use of 

requested funds for the purposes requested will not violate, the limitations on use or treatment of 

MCC Funding set forth in Section 2.7 of this Compact or in any applicable law or regulation; (iv) 

any Taxes paid with MCC Funding through the date 90 days prior to the start of the applicable 

Disbursement Period have been reimbursed by the Government in full in accordance with 

Section 2.8(c) of this Compact; and (v) the Government has satisfied all of its payment 

obligations, including any insurance, indemnification, tax payments or other obligations, and 

contributed all resources required from it, under this Compact and any Supplemental Agreement. 

(t) For any CIF Disbursement occurring after this Compact has entered into force in 

accordance with Article 7: MCC is satisfied, in its sole discretion, that (1) MCC has received 

copies of any reports due from any technical consultants (including environmental auditors 

engaged by MCA-Morocco 11) for any Activity since the previous Disbursement Request, and all 

such reports are in form and substance satisfactory to MCC; (2) the Implementation Plan 

Documents and Fiscal Accountability Plan are cvrrent and updated and are in form and substance 

satisfactory to MCC, and there has been progress satisfactory to MCC on the components of the 

Implementation Plan for any relevant Projects or Activities related to such CIF Disbursement; 

(3) there has been progress satisfactory to MCC on the M&E Plan and the Social and Gender 

Integration Plan (as will be defined in the PIA) for the Program or relevant Project or Activity 

and substantial compliance with the requirements of the M&E Plan and Social and Gender 

Integration Plan (including the targets set forth therein and any applicable reporting requirements 

set forth therein for the relevant Disbursement Period); (4) there has been no material negative 

finding in any financial audit report delivered in accordance with this Compact and the Audit 

Plan, for the prior two quarters (or such other period as the Audit Plan may require); (5) MCC 

does not have grounds for concluding that any matter certified to it in the related MCA 

Disbursement Certificate, the Fiscal Agent Disbursement Certificate or the Procurement Agent 

Disbursement Certificate is not as certified; and (vi) if any of the officers or key staff of MCAMorocco II have been removed or resigned and the position remains vacant, MCA-Morocco II is 

actively engaged in recruiting a replacement. 

ANNEXIV-2 
(g) MCC has not determined, in its sole discretion, that an act, omission, condition, or 

event has occurred that would be the basis for MCC to suspend or terminate, in whole or in part, 

this Compact or MCC Funding in accordance with Section 5.1 of this Compact. 

ANNEX IV-3 
ANNEXV 

DEFINITIONS 

Activity has the meaning provided in Part B ofAnnex I. 


Additional Representative has the meaning provided in Section 4.2. 


Audit Guidelines has the meaning provided in Section 3.8(a). 


Baseline has the meaning provided in paragraph 3.1 (a) ofAnnex III. 


Board ofDirectors has the meaning provided in paragraph (l)(a) ofPart C ofAnnex I. 


CEILD has the meaning provided in paragraph (2)(a)(iii)(A) ofPart B ofAnnex I. 


CEILD Study has the meaing provided in paragraph (2)(a)(iii)(A) ofPart B ofAnnex I. 


C/F Disbursement has the meaning provided in the preamble to Annex IV 


Compact has the meaning provided in the Preamble. 


Compact Goal has the meaning provided in Section 1.1. 


Compact Implementation Funding has the meaning provided in Section 2.2(a). 


Compact Records has the meaning provided in Section 3. 7(a). 


Compact Term has the meaning provided in Section 7.4. 


Covered Provider has the meaning provided in the Audit Guidelines. 


Disbursement has the meaning provided in Section 2.4. 


Employability Project has the meaning provided in paragraph (l)(a) ofPart B ofAnnex I. 


Employability Project Objective has the meaning provided in Section l.2(a) 


ES/A has the meaning provided in paragraph (l)(c) ofPart B ofAnnex I. 


ESMS has the meaning provided in paragraph (l)(c) ofPart B ofAnnex I. 


Evaluation Component has the meaning provided in paragraph I ofAnnex III. 


Excess CIFAmount has the meaning provided in Section 2.2(d). 


Fiscal Agent has the meaning provided in paragraph (3) ofPart C ofAnnex I. 


Government has the meaning provided in the Preamble. 


Grant has the meaning provided in Section 3.6(b). 

IFC Performance Standards means the Performance Standards on Environmental and Social 


Sustainability ofthe International Finance Corporation as such may be in force from time to 


time. 


Implementation Letters has the meaning provided in Section 3.5. 


Implementing Entity has the meaning provided in paragraph (2) ofPart C ofAnnex I. 


Implementing Entity Agreement has the meaning provided in paragraph (2) ofPart C ofAnnex 


J. 

Indicators has the meaning provided in paragraph 3. I ofAnnex III. 

Integrated School Improvement Model has the meaning provided in Part B(l)(a}(i} ofAnnex I. 

Internal Regulations has the meaning provided in paragraph (I)(a) ofPart C ofAnnex I. 

Inspector General has the meaning provided in Section 3. 7(c). 

Intellectual Property means all registered and unregistered trademarks, service marks, logos, 

names, trade names and all other trademark rights; all registered and unregistered copyrights; 

all patents, inventions, shop rights, know how, trade secrets, designs, drawings, art work, plans, 

prints, manuals, computer files, computer software, hard copy files, catalogues, specifications, 

and other proprietary technology and similar information; and all registrations for, and 

applications for registration of, any ofthe foregoing, that are financed, in whole or in part, using 

MCC Funding. 

Labor Market Observatory has the meaning provided in paragraph (l)(a)(ii) ofPart B ofAnnex 

J. 

Land Coordination Mechanism has the meaning provided in paragraph (2)(a)(i)(B) ofPar! B of 

Annex I. 

Land Project has the meaning provided in paragraph (2)(a) ofPart B ofAnnex I. 

· Land Project Objective has the meaning provided in Section l.2(b). ·· 

Land Strategy has the meaning provided in in paragraph (2)(a)(i)(A) ofPart B ofAnnex I. 

M&E Plan has the meaning provided in the first paragraph ofAnnex III. 

Management Unit has the meaning provided in paragraph (J)(a) ofPart C ofAnnex I. 

MCA Act has the meaning provided in Section 2.2(a). 

MCA-Morocco II has the meaning provided in Section 3.2(b). 


MCC has the meaning provided in the Preamble. 


MCC Environmental Guidelines has the meaning provided in Section 2. 7(c). 


ANNEX V-2 
MCC Funding has the meaning provided in Section 2.3. 

MCC Gender Policy means the MCC Gender Policy (including any guidance documents issued 

in connection with such policy). 

MCC M&E Policy has the meaning provided in the first paragraph ofAnnex III. 


MCC Program Closure Guidelines means the MCC Program Closure Guidelines (including any 


guidance documents issued in connection with such guidelines). 


MCC Program Procurement Guidelines has the meaning provided in Section 3. 6(a). 


MCC Website means the MCC website at www.mcc.gov. 


Monitoring Component has the meaning provided in paragraph 1 ofAnnex Ill. 


Morocco has the meaning provided in the Preamble. 


Multi-Year Financial Plan Summary has the meaning provided in Part A ofAnnex II. 


O&M has the meaning provided in Section 8.1 (a)(i). 


Party and Parties have the meaning provided in the Preamble. 


Permitted Account has the meaning provided in Section 2.4. 


PPPs has the meaning provided in paragraph (l)(a)(ii)(A) ofPart B ofAnnex I. 


Principal Representative has the meaning provided in Section 4.2. 


Procurement Agent has the meaning provided in paragraph (4) ofPart C ofAnnex I. 


Program has the meaning provided in the recitals to this Compact. 


Program Assets means any assets, goods or property (real, tangible or intangible) purchased or 


financed in whole or in part (directly or indirectly) by MCC Funding. 


Program Funding has the meaning provided in Section 2.1. 


Program Guidelines means collectively the Audit Guidelines, the MCC Environmental 


Guidelines, the MCC Guidelines for Accountable Entities and Implementation Structures, the 

MCC Program Procurement Guidelines, the Reporting Guidelines, the MCC M&E Policy, the 

MCC Cost Principles for Government Affiliates Involved in Compact Implementation, the MCC 

Program Closure Guidelines, the MCC Gender Policy, the MCC Gender Integration Guidelines, 

the MCC Guidelines for Economic and Beneficiary Analysis, the MCC Standards for Global 

Marking, and any other guidelines, policies or guidance papers relating to the administration of 

MCC-funded compact programs, in each case, as such may be posted from time to time on the 

MCC Website. 

Program Implementation Agreement and PIA have the meaning provided in Section 3.1. 

ANNEX V-3 
Project(s) has the meaning provided in Section 1.2. 

Project Objective(s) has the meaning provided in Section 1.2. 

Provider means (z) any entity ofthe Government that receives or uses MCC Funding or any 

other Program Asset in carrying out activities in furtherance ofthis Compact or (ii) any third 

party that receives at least US$50,000 in the aggregate ofMCC Funding (other than as salary or 

compensation as an employee ofan entity ofthe Government) during the Compact Term. 

Reporting Guidelines means the MCC Guidance on Quarterly MCA Disbursement Request and 

Reporting Package. 

School Improvement Plans has the meaning provided in paragraph (J)(a)(i)(A) ofPart B of 

Annex I. 

Social Impact Bond means, in summary, a contract signed among the Government, a social 

investor, and a service provider, where payments are based on achieving defined outcomes. 

Stakeholders Committee has the meaning provided in paragraph (l)(d)(i) ofPart C ofAnnex I. 

Supplemental Agreement means any agreement between (A) the Government (or any 

Government affiliate, including MCA-Morocco II) and MCC (including, but not limited to, the 

PIA), or (BJ MCC and/or the Government (or any Government affiliate, including MCAMorocco II), on the one hand, and any third party, on the other hand, including any ofthe 

Providers, in each case, setting forth the details ofany funding, implementing or other 

arrangements in furtherance of, and in compliance with, this Compact. 

Target has the meaning provided in paragraph 3.1 (b) ofAnnex Ill. 

Taxes has the meaning provided in Section 2.8(a). 

TVET has the meaning provided in paragraph 1 (a)(ii) ofPart B ofAnnex I. 

United States Dollars or USD or US$ means the lawful currency ofthe United States of 

America. 

USAID has the meaning provided in paragraph (1)(/) ofPart B ofAnnex I. 

ANNEX V-4