54350 Federal Register / Vol. 74, No. 202 / Wednesday, October 21, 2009 / Notices 

MILLENNIUM CHALLENGE 

CORPORATION 

[MCC FR 09–18] 

Notice of Entering Into a Compact With 

the Republic of Senegal 

AGENCY: Millennium Challenge 

Corporation. 

ACTION: Notice. 

SUMMARY: In accordance with Section 

610(b)(2) of the Millennium Challenge 

Act of 2003 (Pub. L. 108–199, Division 

D), the Millennium Challenge 

Corporation (MCC) is publishing a 

summary and the complete text of the 

Millennium Challenge Compact 

between the United States of America, 

acting through the Millennium 

Challenge Corporation, and the 

Republic of Senegal. Representatives of 

the United States Government and the 

Republic of Senegal executed the 

Compact documents on September 16, 

2009. 

Dated: September 23, 2009. 

Henry Pitney, 

Acting General Counsel, Millennium 

Challenge Corporation. 

Summary of Millennium Challenge 

Compact With the Republic of Senegal 

The five-year Millennium Challenge 

Compact with the Republic of Senegal 

(‘‘Compact’’) will provide up to $540 

million to reduce poverty and accelerate 

economic growth. The Compact aims to 

enable improved agricultural 

productivity and to expand access to 

markets and services through critical 

infrastructure investments in roads and 

irrigation sectors (‘‘Program’’). 

1. Roads Rehabilitation Project ($324 

million) 

The Roads Rehabilitation Project 

seeks to expand access to markets and 

services and reduce transportation time 

and costs by improving the condition of 

certain strategic roads. Specifically, the 

project will support the rehabilitation 

and upgrading of portions of National 

Road No. 2 (RN2), the northernmost 

road in Senegal, which borders the 

Senegal River, and National Road No. 6 

(RN6), located in Casamance, the 

poorest region of Senegal, in the south. 

The government of Senegal has 

prioritized both roads in its Road Sector 

Master Plan, and their rehabilitation is 

in line with the national policy of 

increasing growth through road 

creation, renovation, and maintenance. 

The RN2 serves as the primary road to 

transport and export products from 

irrigation areas along the Senegal River, 

thereby complementing the Compact’s 

Irrigation and Water Resources 

Management Project (described below). 

The RN2 is also a strategic road, 

connecting Dakar harbor to Mauritania 

and Mali, and to southern cities in 

Senegal. The RN6 is the only road 

available to transport local agricultural 

products from Casamance to the rest of 

Senegal. It is also a strategic road, 

connecting Senegal with Guinea Bissau, 

Guinea (Conakry), and Mali. The 

improvement of both roads is expected 

to stimulate domestic and trans-border 

traffic and commerce. The primary 

activities for the Roads Rehabilitation 

Project are as follows: 

• The RN2 activity will rehabilitate 

and upgrade approximately 120 

kilometers of road, from Richard Toll to 

Ndioum (a primarily agricultural and 

agricultural processing area of Senegal), 

and replace or upgrade associated 

structures, such as bridges and culverts, 

to eliminate flooding, improve road 

safety, and provide reliable, year-round 

access to markets, schools, and 

hospitals, including during the rainy 

seasons. 

• The RN6 activity will rehabilitate 

and upgrade approximately 256 

kilometers of road, from Ziguinchor to 

the crossroads at the town of Kounkane, 

and will replace or upgrade associated 

structures, resulting in reduced 

transport costs and time and improved 

access to markets and social services. 

2. Irrigation and Water Resources 

Management Project ($170 million) 

The Irrigation and Water Resources 

Management Project—comprising 

infrastructure investments in the 

Senegal River Delta and Department of 

Podor areas—seeks to improve the 

productivity of the agricultural sector by 

extending and improving the quality of 

the irrigation system in certain 

agriculture-dependent areas of northern 

Senegal. The Project conforms to 

Senegal’s 1998 Master Plan for poverty 

reduction and agricultural development 

in the Senegal River Valley and is 

designed to address the following three 

factors contributing to low agricultural 

yields: (i) Poor quality of the existing 

irrigation and drainage infrastructure; 

(ii) insufficient delivery of available 

water to agricultural areas; and (iii) lack 

of an appropriate drainage system, 

which leads to soil salinity. Specifically, 

the project will support investments in 

the Senegal River Valley intended to: (i) 

Increase the volume of irrigation water 

in the Senegal River Valley to develop 

approximately 8,500–10,500 hectares of 

additional irrigated land; (ii) eliminate 

the risk of abandonment of 

approximately 26,000 hectares of 

existing irrigable land; and (iii) provide 

additional supply of water for human 

and animal use in the project areas. The 

project will also support a land tenure 

security activity, to provide for, or 

maintain, a secure land tenure 

environment for all of the inhabitants of 

the region directly affected by the 

project. The project may also invest in 

complementary social safeguard 

measures, such as day care centers and 

multi-purpose livestock centers. 

3. Administration 

The Compact also includes program 

management and oversight costs 

estimated at $42 million over a five-year 

timeframe, including the costs of 

administration, management, auditing, 

fiscal and procurement agent services, 

environmental and social oversight, and 

funding to facilitate Compact 

implementation. In addition, the cost of 

monitoring and evaluation of the 

Compact is budgeted at approximately 

$4 million. 

4. Intended Beneficiaries and Expected 

Results 

Compact Program: 

• Approximately 138,600 

households, or approximately 1.66 

million individuals within those 

households, are estimated to benefit 

from the Compact Program within 

twenty years. These estimates assume 

some overlap among beneficiaries in the 

Senegal River Valley. 

• The largest number of 

beneficiaries—approximately 1.1 

million—would be located in the 

Casamance. About 75% of the Program 

beneficiaries in the Casamance are 

expected to come from households 

living on less than 2 dollars per person 

per day. An estimated 42% of total 

Program beneficiaries in the Casamance 

live on $1.25 per person per day, or less. 

Although Program activities in the 

Casamance are expected to cast a wider 

net over beneficiaries, about 38% of 

total benefits generated by the Program 

would accrue to beneficiaries in that 

region. The Program would be an 

important preliminary contribution to 

the development of the Casamance and 

greatly facilitate other future investment 

there. 

• Approximately 62% of Program 

benefits would accrue to beneficiaries in 

the Senegal River Valley. Here, 

approximately 45% of total beneficiaries 

are expected to be from households 

subsisting on less than $2 per person 

per day and 25% from households 

living on $1.25, or less. Whereas 

Program investments in the Senegal 

River Valley will affect the welfare of a 

smaller number of people than in the 

south, the investments are expected to 


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extend significantly and solidify gains 

in the reduction of poverty in the north. 

Roads Rehabilitation Project: 

• The RN2 Road Activity is expected 

to benefit approximately 21,000 

households or 250,000 individuals over 

the next 20 years. Over the life of the 

investment, total average benefits per 

beneficiary for the RN2 are 

approximately $870. 

• The RN6 Road Activity would 

benefit some 102,000 households or 

approximately 1.1 million people over 

the next 20 years. Over the life of the 

investment, total average benefits per 

beneficiary for the RN6 are 

approximately $530. 

Irrigation and Water Resources 

Management Project: 

• Beneficiaries of the Irrigation and 

Water Resources Management Project 

include households, owners or 

shareholders of farming enterprises, and 

households that have individuals 

employed in the operation of enterprise 

farms. 

• Over the course of the investment, 

the Project would benefit approximately 

22,390 households, or 268,700 

individuals, through participation in 

own agricultural production or 

employment in agriculture. 

• Assuming that households, on 

average, are comprised of twelve 

persons cultivating two hectares of 

irrigated land, the scale of net revenue 

from a holding would have a substantial 

impact on the welfare of poor 

households. Average future revenues of 

about purchasing power parity (‘‘PPP’’) 

$4,470 per two-hectare farm would 

increase household incomes by more 

than PPP $1 per person per day. For 

households subsisting with incomes of 

PPP $1.25 or less per person per day, 

this increment would move households 

from being extremely poor to being near 

poor (not far below or above PPP $2 per 

person per day). 

Millennium Challenge Compact 

Between The United States of America 

Acting Through the Millennium 

Challenge Corporation and the 

Republic of Senegal 

Table of Contents 

Article 1. Goal and Objectives 

Section 1.1 Compact Goal 

Section 1.2 Program Objective 

Section 1.3 Project Objectives 

Article 2. Funding and Resources 

Section 2.1 Program Funding 

Section 2.2 Compact Implementation 

Funding 

Section 2.3 MCC Funding 

Section 2.4 Disbursement 

Section 2.5 Interest 

Section 2.6 Government Resources; Budget 

Section 2.7 Limitations of the Use of MCC 

Funding 

Section 2.8 Taxes 

Article 3. Implementation 

Section 3.1 Program Implementation 

Agreement 

Section 3.2 Government Responsibilities 

Section 3.3 Policy Performance 

Section 3.4 Government Assurances 

Section 3.5 Implementation Letters 

Section 3.6 Procurement 

Section 3.7 Records; Accounting; Covered 

Providers; Access 

Section 3.8 Audits; Reviews 

Article 4. Communications 

Section 4.1 Communications 

Section 4.2 Representatives 

Section 4.3 Signatures 

Article 5. Termination; Suspension; Refunds 

Section 5.1 Termination; Suspension 

Section 5.2 Refunds; Violation 

Section 5.3 Survival 

Article 6. Compact Annexes; Amendments; 

Governing Law 

Section 6.1 Annexes 

Section 6.2 Amendments 

Section 6.3 Inconsistencies 

Section 6.4 Governing Law 

Section 6.5 Additional Instruments 

Section 6.6 References to MCC Web site 

Section 6.7 References to Laws, 

Regulations, Policies and Guidelines 

Section 6.8 MCC Status 

Section 6.9 English Language 

Section 6.10 Counterparts; Electronic 

Delivery 

Article 7. Entry Into Force 

Section 7.1 Domestic Requirements 

Section 7.2 Conditions Precedent to Entry 

Into Force 

Section 7.3 Date of Entry Into Force 

Section 7.4 Compact Term 

Section 7.5 Provisional Application 

Article 8. Additional Government Covenants 

Section 8.1 Additional Government 

Resources 

Section 8.2 Procurement 

Annex I: Program Description 

Schedule 1—Delta Activity Construction 

Activities 

Schedule 2—Form of MCA-Senegal Decree 

Annex II: Multi-Year Financial Plan 

Summary 

Annex III: Description of the Monitoring and 

Evaluation Plan 

Annex IV: Conditions to Disbursement of 

Compact Implementation Funding 

Annex V: Definitions 

Annex VI: Specific Tax Exemption 

Mechanisms 

Schedule A—Value Added Tax (VAT) 

Schedule B—Customs Duties 

Schedule C—Corporate Income Tax 

Schedule D—Individual Income Tax 

Schedule E—Fuel Tax 

Schedule F—Registration Tax, Registration 

Fees and Stamp Duty 

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 Republic of Senegal 

(‘‘Senegal’’), acting through its 

Government (the ‘‘Government’’) 

(individually a ‘‘Party’’ and collectively, 

the ‘‘Parties’’). 

Recalling that the Government 

consulted with the private sector and 

civil society of Senegal to determine the 

priorities for the use of Millennium 

Challenge Account assistance and 

developed and submitted to MCC a 

proposal for such assistance focused on 

poverty reduction; and 

Recognizing that MCC wishes to help 

Senegal implement a program to achieve 

the goal and objectives described herein 

(the ‘‘Program’’); 

Capitalized terms used herein shall 

have the meanings specified in Annex V 

hereto. 

The Parties hereby agree as follows: 

Article 1. Goal and Objectives 

Section 1.1 Compact Goal 

The goal of this Compact is to reduce 

poverty in Senegal through economic 

growth (the ‘‘Compact Goal’’). 

Section 1.2 Program Objective 

The objective of the Program (as 

further described in Annex I) (the 

‘‘Program Objective’’) is to enable 

improved agricultural productivity and 

to expand access to markets and 

services through critical infrastructure 

investments in roads and irrigation 

sectors. 

Section 1.3 Project Objectives 

The objectives of the Projects (as 

further described in Annex I) (each a 

‘‘Project Objective’’ and collectively, the 

‘‘Project Objectives’’) are as follows: 

(a) The objective of the Roads 

Rehabilitation Project is to expand 

access to markets and services by 

improving the condition of certain 

strategic roads and reducing 

transportation time and costs. 

(b) The objective of the Irrigation and 

Water Resources Management Project is 

to improve the productivity of the 

agricultural sector by extending and 

improving the quality of the irrigation 

system in certain agriculture-dependent 

areas of northern Senegal. 

Article 2. Funding and Resources 

Section 2.1 Program Funding 

MCC hereby grants to the 

Government, under the terms of this 

Compact, an amount not to exceed Five 

Hundred Thirty Five Million United 

States Dollars (US$535,000,000) 

(‘‘Program Funding’’) for use by the 

Government to implement the Program. 

The allocation of Program Funding uses 

is generally described in Annex II to this 

Compact. 


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Section 2.2 Compact Implementation 

Funding 

(a) MCC hereby grants to the 

Government, under the terms of this 

Compact, in addition to the Program 

Funding described in Section 2.1, an 

amount not to exceed Five Million 

United States Dollars (US$5,000,000) 

(‘‘Compact Implementation Funding’’) 

under Section 609(g) of the Millennium 

Challenge Act of 2003, as amended (the 

‘‘MCA Act’’), for use by the Government 

as agreed by the Parties, which may 

include use 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 

office equipment, and computers and 

other information technology or capital 

equipment; and 

(iii) other Compact implementation 

activities approved by MCC. 

The allocation of Compact 

Implementation Funding among uses is 

generally described in Annex II to this 

Compact. 

(b) Notwithstanding Section 7.3 of 

this Compact, this Section 2.2 and any 

other provisions of this Compact 

necessary to make use of Compact 

Implementation Funding for the 

purposes set forth herein, shall 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 to such 

disbursement as set forth in Annex IV. 

(d) If, after the first anniversary of this 

Compact entering into force, MCC 

determines that the full amount of 

Compact Implementation Funding 

under Section 2.2(a) of this Compact 

exceeds the amount which reasonably 

can be utilized for the purposes and 

uses set forth in Section 2.2(a) of this 

Compact, MCC, by written notice to the 

Government, may withdraw the excess 

amount, thereby reducing the amount of 

the Compact Implementation Funding 

as set forth in Section 2.2(a) (such 

excess, the ‘‘Excess CIF Amount’’). In 

such event, the amount of Compact 

Implementation Funding granted to the 

Government under Section 2.2(a) will be 

reduced by the Excess CIF Amount, and 

MCC will have no further obligations 

with respect to such Excess CIF 

Amount. 

(e) MCC, at 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 

and any relevant supplemental 

agreement applicable to Program 

Funding. 

Section 2.3 MCC Funding 

Program Funding and Compact 

Implementation Funding are 

collectively referred to in this Compact 

as ‘‘MCC Funding.’’ 

Section 2.4 Disbursement 

In accordance with this Compact and 

the Program Implementation 

Agreement, MCC will disburse MCC 

Funding for expenditures incurred in 

furtherance of the Program (each 

instance, a ‘‘Disbursement’’). Subject to 

the satisfaction of all applicable 

conditions, the proceeds of such 

Disbursements will be made available to 

the Government, at MCC’s sole election, 

by (a) deposit to one or more bank 

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 to cover 

Program expenditures as provided in 

this Compact and the Program 

Implementation Agreement. 

Section 2.5 Interest 

The Government will pay to MCC any 

interest or other earnings that accrue on 

MCC Funding (whether by directing 

such payments to a bank account 

outside Senegal that MCC may from 

time to time indicate or as otherwise 

directed by MCC). 

Section 2.6 Government Resources; 

Budget 

(a) The Government will provide all 

funds and other resources, and will take 

all actions, that are necessary to carry 

out the Government’s responsibilities 

and obligations under this Compact. 

(b) The Government will use its best 

efforts to ensure that all MCC Funding 

it receives or is projected to receive in 

each of its fiscal years is fully accounted 

for in its annual budget on a multi-year 

basis. 

(c) The Government will not reduce 

the normal and expected resources that 

it would otherwise receive or budget 

from sources other than MCC for the 

activities contemplated under this 

Compact and the Program. 

(d) Unless the Government discloses 

otherwise to MCC in writing, MCC 

Funding will be in addition to the 

resources that the Government would 

otherwise receive or budget for the 

activities contemplated under this 

Compact and the Program. 

Section 2.7 Limitations on the Use of 

MCC Funding 

The Government will ensure that 

MCC Funding (or any refunds or 

reimbursements of MCC Funding paid 

by the Government in accordance with 

this Compact that MCC permits to be 

used in connection with the Program) 

will not be used for any purpose that 

would violate United States law or 

policy, as specified in this Compact or 

as further notified to the Government in 

writing or by posting from time to time 

on the MCC Web site at http:// 

www.mcc.gov (the ‘‘MCC Web site’’), 

including but not limited to the 

following purposes: 

(a) for assistance to, or training of, the 

military, police, militia, national guard 

or other quasi-military organization or 

unit; 

(b) for any activity that is likely to 

cause a substantial loss of United States 

jobs or a substantial displacement of 

United States production; 

(c) to undertake, fund or otherwise 

support any activity that is likely to 

cause a significant environmental, 

health, or safety hazard, as further 

described in MCC’s environmental and 

social guidelines posted from time to 

time on the MCC Web site or otherwise 

made available to the Government by 

MCC (the ‘‘MCC Environmental 

Guidelines’’); or 

(d) to pay for the performance of 

abortions as a method of family 

planning or to motivate or coerce any 

person to practice abortions, to pay for 

the performance of involuntary 

sterilizations as a method of family 

planning or to coerce or provide any 

financial incentive to any person to 

undergo sterilizations or to pay for any 

biomedical research which relates, in 

whole or in part, to methods of, or the 

performance of, abortions or involuntary 

sterilization as a means of family 

planning. 

Section 2.8 Taxes 

(a) Unless the Parties otherwise 

specifically agree in writing, the 

Government will ensure that each of the 

following is free from the payment or 

imposition of any existing or future 

taxes, duties, levies, contributions, or 

other similar charges (‘‘Taxes’’) of or in 

Senegal (including any such Taxes 

imposed by a national, regional, local, 

or other governmental or taxing 

authority of or in Senegal) (i) the 

Program; (ii) MCC Funding; (iii) interest 

or earnings on MCC Funding; (iv) any 

Project or activity implemented under 

the Program; (v) MCA-Senegal (or MFG– 


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MCA prior to MCA-Senegal’s 

establishment); (vi) goods, works, 

services, technology, and other assets 

and activities under the Program or any 

Project; (vii) persons and entities that 

provide such goods, works, services, 

technology, and assets, or perform such 

activities; and (viii) income, profits, and 

payments with respect thereto. The 

Parties acknowledge and agree that 

‘‘Taxes’’ include, among other things, 

value added and other transfer taxes 

(including exemption therefrom with 

credit), profit and income taxes, 

property and ad valorem taxes, import 

and export duties and taxes (including 

for goods imported and re-exported for 

personal use), withholding taxes, 

payroll taxes, social security and social 

insurance contributions. 

(b) Without limiting the generality of 

the definition of Taxes as set forth in 

Section 2.8(a), the Parties hereby agree 

that the following taxes, duties, fees, 

and similar charges are also specifically 

included in the definition of ‘‘Taxes’’ 

requiring exemptions in accordance 

with this Compact: (i) Customs duties 

and associated fees (including 

redevances statistiques (RS, currently 

1%), droits de douanes (DD, currently 

0–20%), TVA (VAT, currently 18%), les 

droits des chargeurs (COSEC, currently 

0.20%), and les pre ́le`vements 

communautaires de l’UEMOA ou de la 

CEDEAO (for example, PCS, currently, 

1% and CEDEAO, currently 0.5%)); (ii) 

value added taxes (VAT); (iii) taxes on 

petroleum products, including but not 

limited to the tax speciale sur 

hydrocarbons; (iv) registration and 

stamp taxes; (v) taxes on the corporate 

income of professional, accounting or 

consulting firms (‘‘benefices non 

commerciaux’’) derived from Compactrelated work; (vi) taxes on the corporate 

income of companies or other legal 

persons (‘‘benefices industriels et 

commerciaux’’) derived from Compactrelated work; and (vii) taxes on the 

personal income of individuals working 

under the Compact. 

(c) Unless otherwise agreed by MCC 

in writing, set forth in Annex VI are 

procedures that the Government will 

implement to effectuate the exemption 

from Taxes required by Section 2.8(a) 

and Section 2.8(b) above with respect to 

each of the Taxes addressed therein. To 

the extent that there are Taxes not 

addressed in Annex VI, whether 

currently in force or established in the 

future, that MCC determines, in its sole 

discretion, are not being exempted by 

the Government in accordance with this 

Section 2.8, the Government hereby 

agrees that it will implement 

appropriate procedures (approved in 

writing by MCC) to ensure that such 

additional Taxes are exempted in 

accordance with this Section 2.8. For 

the avoidance of doubt, the 

identification (or lack of identification) 

of Taxes in Annex VI, or the description 

(or lack of description) of procedures to 

implement the required exemption from 

such Taxes in Annex VI, shall in no way 

limit the scope of the tax exemption 

required by this Section 2.8. 

(d) Unless otherwise agreed in writing 

by the Parties, the provisions of Section 

2.8(a) and 2.8(b) shall not apply to 

income Taxes on, and contributions 

with respect to, individuals or legal 

persons who are nationals of Senegal, 

provided that such Taxes and 

contributions are not discriminatory and 

are generally applicable to all nationals 

in Senegal. 

(e) In complying with the tax 

exemption obligations set forth herein, 

the Government will exempt MFG– 

MCA, MCA-Senegal, the Fiscal Agent, 

the Procurement Agent, and/or any 

other provider of goods, services, or 

works in connection with the Program 

from any obligation imposed by the 

laws of Senegal to withhold any Taxes 

from any payments made to any natural 

persons or legal persons working under 

the Program to the extent that such 

natural persons or legal persons are not 

nationals of Senegal. 

(f) For the purposes of Section 2.8(d) 

and 2.8(e), the term ‘‘national’’ means 

natural persons who are citizens or 

permanent residents of Senegal and 

legal persons who are formed under the 

laws of Senegal (excluding MCASenegal, MFG–MCA and any other 

entity formed for the purpose of 

implementing the Government’s 

obligations hereunder); provided that in 

determining if a natural person is a 

permanent resident of Senegal or if a 

legal person has been formed under the 

laws of Senegal, the taxable status of 

such individual or legal person shall be 

based on its status at the time it is 

awarded or executes a Compact-related 

agreement or contract, and such initial 

determination shall not change 

regardless of: (i) The type of agreement 

or contract used to employ or engage 

such individual, company, or other legal 

person, (ii) any laws of Senegal that 

purport to change such status based on 

period of contract performance or 

period of time residing and/or working 

in Senegal, and/or (iii) any requirement 

under the laws of Senegal that a 

company or other legal person must 

establish a branch office in Senegal, or 

otherwise register or organize itself 

under the laws of Senegal, in order to 

provide goods, services, or works in 

Senegal. 

(g) The Government will from time to 

time execute and deliver, or cause to be 

executed and delivered, such other 

instructions, instruments or documents, 

and to take or cause to be taken such 

other actions as may be necessary or 

appropriate in the determination of 

MCC in order to implement this Section 

2.8 of the Compact. Such further 

assurances may include, without 

limitation, (i) passage of an ‘‘arrete ́

d’application’’ (or such similar 

document (or documents) having the 

same legal effect), in form and substance 

satisfactory to MCC to provide specific 

instructions to Government agents with 

respect to their role in the 

implementation of the exemption from 

Taxes required by this Compact; or (ii) 

provision of an attestation d’exoneration 

to appropriate beneficiaries of the tax 

exemption described in this Compact. 

(h) If a Tax has been levied and paid 

contrary to the requirements of this 

Section 2.8, or any agreement entered 

into pursuant to this Section 2.8, the 

Government will refund promptly to 

MCC (or to another party as designated 

by MCC) the amount of such Tax in 

United States Dollars or the currency of 

Senegal 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, 

MFG–MCA, or MCA-Senegal) that such 

Tax has been paid. 

(i) No MCC Funding, proceeds 

thereof, or Program assets may be 

applied by the Government in 

satisfaction of its obligations under this 

Section 2.8. 

Article 3. Implementation 

Section 3.1 Program Implementation 

Agreement 

Prior to entry into force, the 

Government and MCC will enter into an 

agreement relating to, among other 

matters, implementation arrangements, 

fiscal accountability and disbursement, 

and use of MCC Funding (the ‘‘Program 

Implementation Agreement’’ or ‘‘PIA’’). 

The Government will implement the 

Program in accordance with the 

Compact and the PIA. 

Section 3.2 Government 

Responsibilities 

(a) The Government has principal 

responsibility for overseeing and 

managing the implementation of the 

Program. 

(b) The Government hereby designates 

MCA-Senegal, an entity to be 

established through passage of a decree 

substantially in the form and 

substantially on the terms of the form of 

decree set forth in Schedule 2 to Annex 


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I, as the accountable entity to 

implement the Program and to exercise 

and perform the Government’s rights 

and responsibilities with respect to the 

oversight, management, and 

implementation of the Program, 

including, without limitation, managing 

the implementation of Projects and their 

Activities, allocating resources, and 

managing procurements. Such entity 

will be referred to herein as ‘‘MCASenegal,’’ and will have the authority to 

bind the Government with regard to all 

Program activities. Prior to MCASenegal’s establishment, the 

Government hereby designates the 

Mission de Formulation et du Gestion 

du MCA Senegal (‘‘MFG–MCA’’), 

established by Decret No 2008–53 dated 

January 29, 2008, to act on behalf of the 

Government with respect to the 

Compact and the Program. For the 

avoidance of doubt, the designation of 

MCA-Senegal (and MFG–MCA prior to 

MCA-Senegal’s establishment) as set 

forth in this Section 3.2(b) will not 

relieve the Government of any of its 

obligations or responsibilities as set 

forth hereunder, under any related 

agreement (including, upon execution 

thereof, the PIA), or in the Program 

Guidelines, for which the Government 

remains fully responsible. MCC hereby 

acknowledges and consents to the 

designation in this Section 3.2(b). 

(c) The Government will ensure that 

no law or regulation in Senegal now or 

hereinafter in effect makes or will make 

unlawful or otherwise prevent or hinder 

the performance of any of the 

Government’s obligations under this 

Compact, the PIA, or any other related 

agreement or any transaction 

contemplated hereby or thereby. 

(d) The Government will ensure that 

any assets or services funded in whole 

or in part (directly or indirectly) by 

MCC Funding will be used solely in 

furtherance of this Compact and the 

Program unless otherwise agreed by 

MCC in writing. 

(e) The Government will take all 

necessary or appropriate steps to 

achieve the Program Objective and 

Project Objectives during the Compact 

Term. 

(f) The Government will fully comply 

with the Program Guidelines, as 

applicable, in its implementation of the 

Program. 

Section 3.3 Policy Performance 

In addition to undertaking the specific 

policy, legal, and regulatory reform 

commitments identified in Annex I (if 

any), the Government will seek to 

maintain and to improve its level of 

performance under the policy criteria 

identified in Section 607 of the MCA 

Act, and the selection criteria and 

methodology used by MCC. 

Section 3.4 Government Assurances 

The Government assures MCC that: 

(a) as of the date this Compact is 

signed by the Government, the 

information provided to MCC by or on 

behalf of the Government in the course 

of reaching agreement with MCC on this 

Compact is true, correct and complete in 

all material respects; 

(b) this Compact, upon its ratification 

by the Government, does not, and will 

not, conflict with any other 

international agreement or other 

obligation of the Government or any of 

the laws of Senegal; and 

(c) the Government will not invoke 

any of the provisions of its internal law 

to justify or excuse a failure to perform 

its duties or responsibilities under this 

Compact. 

Section 3.5 Implementation Letters 

From time to time, MCC may provide 

guidance to the Government in writing 

on any matters relating to this Compact, 

MCC Funding, or implementation of the 

Program (each, an ‘‘Implementation 

Letter’’). The Government will apply 

such guidance in implementing the 

Program. Without limiting the foregoing, 

either Party may, through its Principal 

Representative or any Additional 

Representative, as the case may be, 

initiate discussions that may result in a 

jointly agreed-upon Implementation 

Letter to confirm and record their 

mutual understanding on aspects 

related to the implementation of this 

Compact, the PIA, or other related 

agreements. 

Section 3.6 Procurement 

The Government will ensure that the 

procurement of all goods, works, and 

services by the Government, or any 

applicable provider providing goods, 

works, and services, to implement the 

Program will be consistent with the 

program procurement guidelines posted 

from time to time on the MCC Web site 

(the ‘‘MCC Program Procurement 

Guidelines’’). The MCC Program 

Procurement Guidelines include, among 

others, the following requirements: 

(a) open, fair, and competitive 

procedures must be used in a 

transparent manner to solicit, award and 

administer contracts and to procure 

goods, works, and services; 

(b) solicitations for goods, works, and 

services must be based upon a clear and 

accurate description of the goods, 

works, and services to be acquired; 

(c) contracts must be awarded only to 

qualified contractors that have the 

capability and willingness to perform 

the contracts in accordance with their 

terms on a cost effective and timely 

basis; and 

(d) no more than a commercially 

reasonable price, as determined, for 

example, by a comparison of price 

quotations and market prices, will be 

paid to procure goods, works, and 

services. 

Section 3.7 Records; Accounting; 

Covered Providers; Access 

(a) Government Books and Records. 

The Government will maintain, and will 

use its best efforts to ensure that all 

Covered Providers maintain accounting 

books, records, documents, and other 

evidence relating to the Program 

adequate to show, to MCC’s satisfaction, 

the use of all MCC Funding (‘‘Compact 

Records’’). In addition, the Government 

will furnish or cause to be furnished to 

MCC, upon its request, all such 

Compact Records. 

(b) Accounting. The Government will 

maintain and will use its best efforts to 

ensure that all Covered Providers 

maintain Compact Records in 

accordance with generally accepted 

accounting principles prevailing in the 

United States, or at the Government’s 

option and with MCC’s prior written 

approval, other accounting principles, 

such as those (i) prescribed by the 

International Accounting Standards 

Board, or (ii) then prevailing in Senegal. 

Compact Records must be maintained 

for at least five (5) years after the end 

of the Compact Term or for such longer 

period, if any, required to resolve any 

litigation, claims or audit findings or 

any statutory requirements. 

(c) Providers and Covered Providers. 

Unless the Parties agree otherwise in 

writing, a ‘‘Provider’’ is (i) any entity of 

the Government that receives or uses 

MCC Funding or any other Program 

asset in carrying out activities in 

furtherance of this Compact or (ii) any 

third party that receives at least 

US$50,000 in the aggregate of MCC 

Funding (other than as salary or 

compensation as an employee of an 

entity of the Government) during the 

Compact Term. A ‘‘Covered Provider’’ is 

(i) a non-United States Provider that 

receives (other than pursuant to a direct 

contract or agreement with MCC) 

US$300,000 or more of MCC Funding in 

any Government fiscal year or any other 

non-United States person or entity that 

receives, directly or indirectly, 

US$300,000 or more of MCC Funding 

from any Provider in such fiscal year, or 

(ii) any United States Provider that 

receives (other than pursuant to a direct 

contract or agreement with MCC) 

US$500,000 or more of MCC Funding in 

any Government fiscal year or any other 


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United States person or entity that 

receives, directly or indirectly, 

US$500,000 or more of MCC Funding 

from any Provider in such fiscal year. 

(d) Access. Upon MCC’s request, the 

Government, at all reasonable times, 

will permit, or cause to be permitted, 

authorized representatives of MCC, an 

authorized United States inspector 

general, the United States Government 

Accountability Office, any auditor 

responsible for an audit contemplated 

herein or otherwise conducted in 

furtherance of this Compact, and any 

agents or representatives engaged by 

MCC or the Government to conduct any 

assessment, review, or evaluation of the 

Program, the opportunity to audit, 

review, evaluate, or inspect facilities 

and activities funded in whole or in part 

by MCC Funding. 

Section 3.8 Audits; Reviews 

(a) Government Audits. Except as the 

Parties may otherwise agree in writing, 

the Government will, on at least a semiannual basis, conduct, or cause to be 

conducted, financial audits of all 

disbursements of MCC Funding 

covering the period from signing of this 

Compact until the earlier of the 

following December 31 or June 30 and 

covering each six-month period 

thereafter ending December 31 and June 

30, through the end of the Compact 

Term. In addition, upon MCC’s request, 

the Government will ensure that such 

audits are conducted by an independent 

auditor approved by MCC and named 

on the list of local auditors approved by 

the Inspector General of MCC (the 

‘‘Inspector General’’) or a United Statesbased certified public accounting firm 

selected in accordance with the 

‘‘Guidelines for Financial Audits 

Contracted by MCA’’ (the ‘‘Audit 

Guidelines’’) issued and revised from 

time to time by the Inspector General, 

which are posted on the MCC Web site. 

Audits will be performed in accordance 

with the Audit Guidelines and be 

subject to quality assurance oversight by 

the Inspector General. Each audit must 

be completed and the audit report 

delivered to MCC no later than ninety 

(90) days after the first period to be 

audited and no later than ninety (90) 

days after each June 30 and December 

31 thereafter, or such other period as the 

Parties may otherwise agree in writing. 

(b) Audits of United States Entities. 

The Government will ensure that 

agreements between the Government or 

any Provider, on the one hand, and a 

United States nonprofit organization, on 

the other hand, that are financed with 

MCC Funding state that the United 

States nonprofit organization is subject 

to the applicable audit requirements 

contained in OMB Circular A–133 

issued by the United States Government 

Office of Management and Budget 

(‘‘OMB’’). The Government will ensure 

that agreements between the 

Government or any Provider, on the one 

hand, and a United States for-profit 

Covered Provider, on the other hand, 

that are financed with MCC Funding 

state that the United States for-profit 

organization is subject to audit by the 

applicable United States Government 

agency, unless the Government and 

MCC agree otherwise in writing. 

(c) Corrective Actions. The 

Government will (i) use its best efforts 

to ensure that Covered Providers take, 

where necessary, appropriate and timely 

corrective actions in response to audits, 

(ii) consider whether a Covered 

Provider’s audit necessitates adjustment 

of the Government’s records, and (iii) 

require each such Covered Provider to 

permit independent auditors to have 

access to its records and financial 

statements as necessary. 

(d) Audit by MCC. MCC will have the 

right to arrange for audits of the 

Government’s use of MCC Funding. 

(e) Cost of Audits, Reviews or 

Evaluations. MCC Funding may be used 

to fund the costs of any audits, reviews, 

or evaluations required under this 

Compact. 

Article 4. Communications 

Section 4.1 Communications 

Any document or communication 

required or submitted by either Party to 

the other under this Compact must be in 

writing and, except as otherwise agreed 

with MCC, in English. For this purpose, 

the address of each Party is set forth 

below. 

To MCC: 

Millennium Challenge Corporation, 

Attention: Vice President, Compact 

Implementation, (in each case, with a 

copy to the Vice President and General 

Counsel), 875 Fifteenth Street, NW., 

Washington, DC 20005, United States of 

America, Facsimile: (202) 521–3700, 

Telephone: (202) 521–3600, E-mail: 

VPImplementation@mcc.gov (Vice 

President, Compact Implementation), 

VPGeneralCounsel@mcc.gov (Vice 

President and General Counsel). 

To the Government: 

Ministry of Economy and Finance, 

Rue Rene Ndiaye, BP 4017, Dakar, 

Senegal, Tel: +221 (33) 822 2899, Fax: 

+221 (33) 822 4195. 

with a copy to: 

To MFG–MCA (until MCA-Senegal’s 

establishment), Avenue Bourguiba, 

Immeuble Gamma, 3eme etage, Dakar, 

Senegal, Tel: +221 (33) 869 1665, Fax: 

+221 (33) 825 0887. 

Upon establishment of MCA-Senegal, 

MCA-Senegal will notify the Parties of 

its contact details. 

Section 4.2 Representatives 

For all purposes of this Compact, the 

Government will be represented by the 

individual holding the position of, or 

acting as, the Minister of Economy and 

Finance of Senegal, and MCC will be 

represented by the individual holding 

the position of, or acting as, Vice 

President, Compact Implementation 

(each of the foregoing, a ‘‘Principal 

Representative’’). Each Party, by written 

notice to the other Party, may designate 

one or more additional representatives 

(each, an ‘‘Additional Representative’’) 

for all purposes other than signing 

amendments to this Compact. The 

Government hereby irrevocably 

designates the Director General of MFG– 

MCA as an Additional Representative, 

to be replaced by the Director General 

of MCA-Senegal, upon the 

establishment of MCA-Senegal. A Party 

may change its Principal Representative 

to a new representative that holds a 

position of equal or higher rank upon 

written notice to the other Party. 

Section 4.3 Signatures 

With respect to all documents other 

than this Compact or an amendment to 

this Compact, a signature delivered by 

facsimile or electronic mail will be 

binding on the Party delivering such 

signature to the same extent as an 

original signature would be. 

Article 5. Termination; Suspension; 

Refunds 

Section 5.1 Termination; Suspension 

(a) Either Party may terminate this 

Compact without cause in whole by 

giving the other Party thirty (30) days’ 

written notice. MCC may also terminate 

this Compact without cause in part by 

giving the Government thirty (30) days’ 

written notice. 

(b) MCC may, immediately, upon 

written notice to the Government, 

suspend or terminate this Compact or 

MCC Funding, in whole or in part, and 

any obligation related thereto, if MCC 

determines that any circumstance 

identified by MCC as a basis for 

suspension or termination (whether in 

writing to the Government or by posting 

on the MCC Web site) has occurred, 

which circumstances include but are 

not limited to the following: 

(i) The Government fails to comply 

with its obligations under this Compact, 

the PIA, or any other agreement or 

arrangement entered into by the 

Government in connection with this 

Compact or the Program; 


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(ii) an event or series of events has 

occurred that MCC determines makes it 

probable that the Program Objective or 

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 or 

would violate applicable law or United 

States Government policy, whether now 

or hereafter in effect; 

(iv) the Government or any other 

person or entity receiving MCC Funding 

or using assets acquired in whole or in 

part with MCC Funding is engaged in 

activities that are contrary to the 

national security interests of the United 

States; 

(v) an act has been committed or an 

omission or an event has occurred that 

would render Senegal ineligible to 

receive United States economic 

assistance under Part I of the Foreign 

Assistance Act of 1961, as amended (22 

U.S.C. 2151 et seq.), by reason of the 

application of any provision of the 

Foreign Assistance Act of 1961 or any 

other provision of law; 

(vi) the Government has engaged in a 

pattern of actions inconsistent with the 

criteria used to determine the eligibility 

of Senegal for assistance under the MCA 

Act; or 

(vii) the Government or another 

person or entity receiving MCC Funding 

or using assets acquired in whole or in 

part with MCC Funding is found to have 

been convicted of a narcotics offense or 

to have been engaged in drug trafficking. 

(c) All Disbursements will cease upon 

expiration, suspension, or termination 

of this Compact; provided, however, 

MCC may permit MCC Funding to be 

used, in compliance with this Compact 

and the PIA, to pay for (i) reasonable 

expenditures for goods, works, or 

services that are properly incurred 

under or in furtherance of the Program 

before expiration, suspension, or 

termination of this Compact, and (ii) 

reasonable expenditures (including 

administrative expenses) properly 

incurred in connection with the 

winding up of the Program within one 

hundred twenty (120) days after the 

expiration, suspension, or termination 

of this Compact, so long as, with respect 

to (i) and (ii) herein, the request for such 

expenditures is submitted within ninety 

(90) days after such expiration, 

suspension, or termination. 

(d) Subject to Section 5.1(c), upon the 

expiration, suspension, or termination 

of this Compact, (i) any amounts of MCC 

Funding not disbursed by MCC in 

accordance with the Compact and the 

PIA will be automatically released from 

any obligation in connection with this 

Compact, and (ii) any amounts of MCC 

Funding disbursed to the Permitted 

Account by MCC but not expended 

before the expiration, suspension or 

termination of this Compact, plus 

accrued interest thereon will be 

returned to MCC within thirty (30) days 

after the Government receives MCC’s 

request for such return; provided, 

however, that if this Compact is 

suspended or terminated in part, MCC 

may request a refund for only the 

amount of MCC Funding allocated to 

the suspended or terminated portion. 

(e) MCC may reinstate any suspended 

or terminated MCC Funding under this 

Compact if MCC determines that the 

Government or other relevant person or 

entity has committed to correct each 

condition for which MCC Funding was 

suspended or terminated. 

Section 5.2 Refunds; Violation 

(a) If any MCC Funding, any interest 

or earnings thereon, or any asset 

acquired in whole or in part with MCC 

Funding is used for any purpose in 

violation of the terms of this Compact or 

the PIA, including but not limited to 

any violation of the Program Guidelines, 

then MCC may require the Government 

to repay to MCC in United States Dollars 

the value of the misused MCC Funding, 

interest, earnings, or asset, plus interest 

within thirty (30) days after the 

Government’s receipt of MCC’s request 

for repayment. The Government will not 

use MCC Funding, proceeds thereof or 

Program assets to make such payment. 

(b) Notwithstanding any other 

provision in this Compact or any other 

agreement to the contrary, MCC’s right 

under this Section 5.2 for a refund will 

continue during the Compact Term and 

for a period of (i) five years thereafter or 

(ii) one year after MCC receives actual 

knowledge of such violation, whichever 

is later. 

Section 5.3 Survival 

The Government’s responsibilities 

under Sections 2.4, 2.6, 2.7, 2.8, 3.7, 3.8, 

5.1(c), 5.1(d), 5.2, 5.3, 6.2, 6.4, 6.9, and 

8.1 of this Compact will survive the 

expiration, suspension or termination of 

this Compact. 

Article 6. Compact Annexes; 

Amendments; Governing Law 

Section 6.1 Annexes 

Each annex to this Compact 

constitutes an integral part hereof, and 

references to ‘‘Annex’’ mean an annex to 

this Compact unless otherwise expressly 

stated. 

Section 6.2 Amendments 

(a) The Parties may amend this 

Compact only by a written agreement 

signed by the Principal Representatives. 

(b) Without formally amending this 

Compact, the Government hereby 

acknowledges and agrees that the 

Parties, may, through the Principal 

Representatives or any Additional 

Representative, as the case may be, in 

writing, modify any Annex to this 

Compact to (i) suspend, terminate, or 

modify any project described in Annex 

I (each, a ‘‘Project’’ and collectively, the 

‘‘Projects’’) or to create a new project, 

(ii) change the allocations of funds 

among the Projects, the Project 

activities, or any activity under Program 

administration or monitoring and 

evaluation, or between a Project 

identified as of the signature of this 

Compact and a new project, (iii) modify 

the terms of Section B.3 of Annex I, or 

(iv) add, delete, or waive any condition 

precedent described in Annex IV, 

provided that any such modification 

described in (i) through (iv) (1) is 

consistent in all material respects with 

the Program Objective, (2) does not 

cause the amount of Program Funding to 

exceed the aggregate amount specified 

in Section 2.1 of this Compact (as may 

be modified by operation of Section 

2.2(e) of this Compact), (3) does not 

cause the amount of Compact 

Implementation Funding to exceed the 

aggregate amount specified in Section 

2.2(a) of this Compact, (4) does not 

cause the Government’s responsibilities 

or contribution of resources to be less 

than specified in this Compact, (5) does 

not extend the Compact Term, and (6) 

in the case of a modification to change 

allocations of funds among Projects or 

the creation of a new project, does not 

materially adversely affect any activity 

under Program administration or 

monitoring and evaluation. 

(c) Any modification of any annex to 

this Compact executed in accordance 

with Section 6.2(b), or any modification 

of any other provision of this Compact 

pursuant to Section 6.2(a), shall be 

binding on the Government without the 

need for further action by the 

Government, any further parliamentary 

action, or satisfaction of any additional 

domestic requirements of Senegal. 

Section 6.3 Inconsistencies 

In the event of any conflict or 

inconsistency between: 

(a) any annex to this Compact and any 

of Articles 1 through 8, such Articles 1 

through 8 will prevail; or 

(b) this Compact and any other 

agreement between the Parties regarding 

the Program, this Compact will prevail. 


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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 reference to activities, 

obligations, or rights undertaken or 

existing under or in furtherance of this 

Compact or similar language will 

include activities, obligations, and 

rights undertaken by 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 Web 

site 

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 Web 

site will be deemed a reference to such 

document or information as updated or 

substituted on the MCC Web site from 

time to time. 

Section 6.7 References to Laws, 

Regulations, Policies, and Guidelines 

Each reference in this Compact, the 

PIA, or any other agreement entered into 

in connection with this Compact, to a 

law, regulation, policy, guideline, or 

similar document (including but not 

limited to the Program Guidelines) will 

be construed as a reference to such law, 

regulation, policy, guideline, or similar 

document as it may, from time to time, 

be amended, revised, replaced, or 

extended and will include any law, 

regulation, policy, guideline, or similar 

document issued under or otherwise 

applicable or related to such law, 

regulation, policy, guideline, or similar 

document. 

Section 6.8 MCC Status 

MCC is a United States government 

corporation acting on behalf of the 

United States government in the 

implementation of this Compact. MCC 

and the United States government have 

no liability under this Compact, the 

Program Implementation Agreement, or 

any related agreement, are immune from 

any action or proceeding arising under 

or relating to any of the foregoing 

documents, and the Government hereby 

waives and releases all claims related to 

any such liability. In matters arising 

under or relating to this Compact, the 

Program Implementation Agreement, or 

any related agreement neither MCC nor 

the United States government will be 

subject to the jurisdiction of the courts 

of Senegal or of any other jurisdiction or 

of any other body. 

Section 6.9 English Language 

This Compact is executed in English 

and in the event of any ambiguity or 

conflict between this official English 

version and any translation prepared for 

the convenience of the Parties, this 

official English version will prevail. 

Section 6.10 Counterparts; Electronic 

Delivery 

(a) Counterparts. This Compact, and 

any amendment or other agreements 

arising out of this Compact, may be 

executed in one or more counterpart 

signatures, and each counterpart when 

so executed and delivered shall be an 

original instrument, but such 

counterparts together shall constitute a 

single agreement. 

(b) Electronic Delivery. A signature to 

this Compact shall be delivered only as 

an original signature. With respect to all 

other signatures, including for an 

amendment or any other agreements 

arising out of this Compact, a signature 

delivered by facsimile or electronic mail 

in accordance with Section 4.1 of this 

Compact shall be deemed an original 

signature and shall be binding on the 

Party delivering such signature, and the 

Parties hereby waive any objection to 

such signature or to the validity of the 

underlying document, certificate, 

notice, instrument, or agreement on the 

basis of the signature’s legal effect, 

validity or enforceability solely because 

it is in facsimile or electronic form. 

Article 7. Entry Into Force 

Section 7.1 Domestic Requirements 

Before this Compact enters into force, 

the Government will take all necessary 

steps to ensure that immediately upon 

this Compact entering into force (a) this 

Compact and the PIA and all of the 

provisions of this Compact and the PIA 

are valid and binding and are in full 

force and effect in Senegal, (b) this 

Compact, the PIA and any other 

agreement entered into in connection 

with this Compact to which the 

Government and MCC are parties are 

international agreements under 

international law such that the 

Government may not invoke the 

provisions of its internal law as 

justification for failure to perform its 

obligations thereunder, and (c) no laws 

of Senegal (other than the constitution 

of Senegal), whether now or hereafter in 

effect, will take precedence or prevail 

over the terms of this Compact or the 

PIA. 

Section 7.2 Conditions Precedent to 

Entry Into Force 

Before this Compact enters into force: 

(a) the PIA must have been executed 

by the parties thereto; 

(b) The Government must have 

delivered to MCC: 

(i) a certificate, in form and substance 

satisfactory to MCC, signed and dated 

by the Principal Representative of the 

Government, or such other duly 

authorized representative of the 

Government acceptable to MCC, 

certifying that the Government has 

satisfied the requirements of Section 

7.1; 

(ii) a legal opinion from the 

Secretariat General du Gouvernement of 

Senegal (or such other legal 

representative of the Government 

acceptable to MCC), in form and 

substance satisfactory to MCC; and 

(iii) complete, certified copies of all 

decrees, legislation, regulations, or other 

governmental documents relating to the 

Government’s domestic requirements 

for this Compact to enter into force and 

the satisfaction of Section 7.1, which 

MCC may post on its Web site or 

otherwise make publicly available; and 

(c) MCC must determine that after 

signature of this Compact, the 

Government has not engaged in any 

action or omission that is inconsistent 

with the eligibility criteria for MCC 

Funding. 

Section 7.3 Date of Entry Into Force 

This Compact will enter into force on 

the later of (a) the date of the last letter 

in an exchange of letters between the 

Principal Representatives confirming 

that each Party has completed its 

domestic requirements for entry into 

force of this Compact and (b) the date 

that all conditions set forth in Section 

7.2 have been satisfied. 

Section 7.4 Compact Term 

This Compact will remain in force for 

five years after its entry into force, 

unless terminated earlier under Section 

5.1 (the ‘‘Compact Term’’). 

Section 7.5 Provisional Application 

Upon signature of this Compact and 

until this Compact has entered into 

force in accordance with Section 7.3, 

the Parties will provisionally apply the 

terms of this Compact and the PIA; 

provided that, no Program Funding will 

be made available or disbursed before 

this Compact enters into force. 

Article 8. Additional Government 

Covenants 

Section 8.1 Additional Government 

Resources 

(a) Without limiting the generality of 

Section 2.6(a), the Government will 

contribute, through provision in the law 

containing the annual governmental 


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budget for Senegal, an amount necessary 

and adequate to cover all costs 

associated with the following (no MCC 

Funding, proceeds thereof, or Program 

assets may be applied by the 

Government in satisfaction of its 

obligations under this Section 8.1(a)): 

(i) The staffing and operations of a 

‘‘Cellule d’Appui au MCA-Senegal’’ (as 

further described in Annex I); 

(ii) consultant services, including but 

not limited to, any such services already 

contracted by MFG–MCA for the 

purpose of producing detailed designs 

in connection with the Roads 

Rehabilitation Project; the independent 

audit required in connection with the 

Irrigation and Water Resources 

Management Project as described in the 

PIA; and any other consultant services 

in connection with the Program that 

will not be financed with MCC Funding 

but are required for the successful 

implementation of the Program, as may 

be required by MCC from time to time; 

(iii) any incurred severance costs or 

other financial liabilities triggered by 

termination or expiration of the MFG– 

MCA or MCA-Senegal employee 

contracts, pursuant to the terms of such 

contracts; and 

(iv) required office space for MFG– 

MCA, MCA Senegal, the ‘‘Cellule 

d’Appui au MCA-Senegal,’’ and the 

MCC resident country mission. 

Section 8.2 Procurement 

The Government, including MCASenegal (and MFG–MCA prior to MCASenegal’s establishment), will 

exclusively use the MCC Program 

Procurement Guidelines in connection 

with Program procurements financed 

with MCC Funding. With respect to 

Program procurements financed by the 

Government, the Government, including 

MCA-Senegal (and MFG–MCA prior to 

MCA-Senegal’s establishment), will 

ensure that such procurements are 

consistent with the general principles 

set forth in Section 3.6 of this Compact. 

In Witness Whereof, the undersigned, 

duly authorized by their respective 

governments, have signed this Compact 

this 16th day of September 2009. 

Done at Washington, DC. 

For Millennium Challenge 

Corporation, on behalf of the United 

States of America, Name: Darius Mans, 

Title: Acting Chief Executive Officer. 

For the Republic of Senegal, Name: 

Abdoulaye Diop, Title: Minister of 

Economy and Finance. 

Annex I Program Description 

This Annex I describes the Program 

that MCC Funding will support in 

Senegal during the Compact Term. 

A. Program Overview 

1. Background and Consultative Process 

With a population of approximately 

12 million inhabitants, the west African 

nation of Senegal was originally 

declared eligible for MCC assistance in 

2004. Senegal shares borders in the 

north with Mauritania, in the east with 

Mali and in the south with Guinea and 

Guinea-Bissau, and the Gambia runs 

through its center, spatially separating 

its Casamance region (the ‘‘Casamance’’) 

from the rest of Senegal’s territory. 

Based on national poverty reduction 

and food security priorities contained in 

the Government’s 1998 Master Plan for 

agricultural development in the Senegal 

River Valley (the ‘‘Valley’’) and the 

Government’s Road Sector Master Plan, 

and confirmed in broad-based 

Government consultations that occurred 

from February through July 2008, the 

Program focuses on poverty reduction in 

the Valley in northern Senegal, and the 

Casamance in southern Senegal. 

The Valley has been targeted by the 

Government, numerous donors, and 

nongovernmental organizations 

(‘‘NGOs’’) for investment, both to 

encourage economic growth in this 

region and to increase Senegal’s food 

security in years to come. The Valley, 

like the Casamance, is rich in 

agricultural production, especially for 

rice, the principal staple of the 

Senegalese diet. The Valley benefits 

from a very favorable environment for 

intensive irrigation; however, low 

agricultural yields have been a 

persistent problem due to the poor 

quality of the existing irrigation and 

drainage infrastructure; insufficient 

delivery of available water to 

agricultural areas; and lack of an 

appropriate drainage system. The 

Irrigation and Water Resources 

Management Project will address these 

constraints. 

The Casamance is the poorest region 

of Senegal, but also has the highest 

potential for economic development 

after the Valley. The Casamance is rich 

in natural resources and has the 

potential for enormous agricultural 

productivity, which could contribute 

significantly both to national growth 

and food security in the entire country. 

The Government identified the 

Casamance’s poor road transport 

network, which leaves few means for 

goods and services currently produced 

in the region to be exported nationally 

or regionally, as a major constraint to 

economic development in the region. 

The Roads Rehabilitation Project will 

address this constraint. 

2. Description of Program and 

Beneficiaries 

The Program Objective is to enable 

improved agricultural productivity and 

to expand access to markets and 

services through critical infrastructure 

investments in the roads and irrigation 

sectors. The Program consists of the 

Roads Rehabilitation Project and the 

Irrigation and Water Resources 

Management Project as further 

described in this Annex I. 

By 2029, the Program is expected to 

benefit approximately 1.66 million 

individuals, or approximately 138,600 

households. The largest number of 

beneficiaries—approximately 1.1 

million—would be located in the 

Casamance. About 75% of the Program 

beneficiaries in the Casamance are 

expected to come from households 

living on less than 2 dollars per person 

per day. An estimated 42% of total 

Program beneficiaries in the Casamance 

live on US$1.25 per person per day, or 

less. Although Program activities in the 

Casamance are expected to cast a wider 

net over beneficiaries, about 38% of 

total benefits generated by the Program 

would accrue to beneficiaries in that 

region. Approximately 62% of Program 

benefits would accrue to beneficiaries in 

the Valley. Here, approximately 45% of 

total beneficiaries are expected to be 

from households subsisting on less than 

US$2 per person per day and 25% from 

households living on US$1.25, or less. 

Whereas Program investments in the 

Valley will affect the welfare of a 

smaller number of people than in the 

south, they together are expected to 

extend significantly and solidify gains 

in the reduction of poverty in the north. 

The Program would be an important 

preliminary contribution to the 

development of the Casamance and 

greatly facilitate other future investment 

there. 

3. Environmental and Social 

Accountability 

The two Projects, both of which are 

classified as Category A due to potential 

site-specific environmental and social 

impacts, will be implemented in 

compliance with the MCC 

Environmental Guidelines, MCC’s 

guidance on the integration of gender in 

program implementation delivered by 

MCC to the Government or posted on 

the MCC Web site (the ‘‘MCC Gender 

Policy’’), and the MCC Guidance on the 

Implementation of Resettlement 

Activities (or any other MCC policy 

comparable to the World Bank’s 

Operational Policy on Involuntary 

Resettlement in effect as of July 2007 

(‘‘OP 4.12’’) notified to the Government 


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from time to time) (the ‘‘MCC 

Resettlement Guidance’’). The 

Government will also ensure that the 

Projects comply with all national 

environmental laws and regulations, 

licenses and permits, except to the 

extent such compliance would be 

inconsistent with this Compact. The 

Government will: (a) Undertake and 

complete any environmental review 

required by MCC or under the laws of 

Senegal; (b) implement to MCC’s 

satisfaction environmental and social 

mitigation measures identified in such 

environmental review; and (c) commit 

to fund environmental mitigation, 

(including costs of resettlement) in 

excess of MCC Funding not specifically 

provided for in the budget for any 

Project. The Government will ensure 

that all construction contractors 

develop, implement and monitor an 

HIV/AIDS awareness program 

acceptable to MCC. 

B. Description of the 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. To the 

extent that there are cost savings with 

respect to a Project’s implementation, 

such savings, with express written 

approval by MCC, may be used to 

expand the scope of any activity 

undertaken as part of the Program, 

consistent with the Program Objective 

and subject to the limitations set forth 

in Section 6.2 of this Compact. 

1. Roads Rehabilitation Project 

(a) Summary of Project and Activities. 

The Roads Rehabilitation Project is 

designed to increase beneficiary access 

to domestic and international markets 

through improved road quality and a 

reduction in travel times and costs. The 

road sector plays a critical role in 

Senegal. About 99% of goods produced 

in Senegal are transported by roads, and 

95% of domestic travel is done by road. 

The roads addressed by the Roads 

Rehabilitation Project, national road no. 

2 (‘‘RN2’’) and national road no. 6 

(‘‘RN6’’), are prioritized in the 

Government’s Road Sector Master Plan, 

and their rehabilitation is in line with 

the national policy of increasing growth 

through road creation, renovation, and 

maintenance to facilitate transport of 

manufactured products, minerals, and 

agricultural production, and to 

encourage tourism throughout the 

country. 

The RN2 is the northernmost road of 

Senegal, bordering the Senegal River. It 

links the capital city of Dakar to St. 

Louis, the second largest city of Senegal, 

and continues toward the eastern region 

of Senegal to the city of Kidira, close to 

the border with Mali. The RN2 serves as 

the primary road to transport and export 

products from irrigation areas along the 

Senegal River. It is also a strategic 

connector road from Dakar Harbor to 

Mauritania and Mali and to southern 

cities in Senegal. The RN6 links Senegal 

with Guinea Bissau, Guinea (Conakry), 

and Mali. The RN6 is also a strategic 

road that allows transportation of local 

agricultural products and other goods 

and services from the Casamance to the 

rest of Senegal without having to travel 

through the Gambia. The RN6 provides 

the only domestic land access to and 

from the Casamance. For local 

agricultural producers to transport their 

products from the Casamance to the rest 

of Senegal, the only land alternative to 

the RN6 is a road through the Gambia 

and a ferry boat across the Gambia 

River. 

The Roads Rehabilitation Project 

consists of the following Activities: 

(i) RN2 Road Activity. 

MCC Funding will be used to 

rehabilitate and upgrade approximately 

120 kilometers of the RN2 road, from 

Richard Toll to Ndioum, and replace or 

upgrade associated structures, such as 

bridges and culverts, to eliminate 

flooding and improve road safety. The 

RN2’s improvement is expected to 

stimulate domestic and trans-border 

traffic and commerce generally as well 

as specifically provide reliable, yearround access to markets, schools, and 

hospitals, including during the rainy 

seasons, throughout the primarily 

agricultural and agricultural processing 

area where the Activity is focused. 

Specifically, MCC Funding will support: 

(1) Construction Costs. These costs 

include, without limitation, pavement 

strengthening, road widening, road 

safety improvements, replacement or 

upgrading of associated structures, such 

as bridges and culverts, and any activity 

associated with the environmental 

management plan developed with 

respect to the Activity. 

(2) Non-Construction Costs. These 

costs include, without limitation, 

studies, construction supervision, 

implementation of any resettlement 

action plan developed with respect to 

the Activity, and other project 

management costs to be incurred in 

connection with the RN2 Road Activity. 

(ii) RN6 Road Activity. 

MCC Funding will be used to 

rehabilitate and upgrade approximately 

256 kilometers of the RN6 road from 

Ziguinchor, and replace or upgrade 

associated structures of the RN6. 

Specifically, MCC Funding will support: 

(1) Construction Costs. These costs 

include, without limitation, pavement 

strengthening, road widening, road 

safety improvements, and replacement 

or upgrading of associated structures, 

such as bridges and culverts, and any 

activity associated with the 

environmental management plan 

developed with respect to the Activity. 

(2) Non-Construction Costs. These 

costs include, without limitation, 

studies, construction supervision, 

implementation of any resettlement 

action plan developed with respect to 

the Activity, and other project 

management costs to be incurred in 

connection with the RN6 Road Activity. 

(b) Beneficiaries. 

The RN2 Road Activity is expected to 

benefit approximately 21,000 

households or 250,000 individuals over 

the next 20 years. At present there are 

about 9,290 households, or 111,500 

beneficiaries residing along the RN2. 

The RN6 Road Activity would affect 

some 102,000 households or 

approximately 1.1 million people over 

the next 20 years. At present there is a 

population of about 44,000 households, 

or 474,000 people along the road; but 

about 15,600 households outside the 

road catchment would also initially 

benefit, as much traffic also originates 

and ends outside the particular 

segments of the RN6 being upgraded by 

the RN6 Road Activity. Over the life of 

the investment, total average benefits 

per beneficiary for the RN2 are 

approximately US$870. Similarly, total 

average benefits per beneficiary for the 

RN6 are approximately US$530. 

(c) Environmental and Social 

Mitigation Measures. 

The RN2 Road Activity and the RN6 

Road Activity are classified as ‘‘Category 

A.’’ The Activities will produce sitespecific and possibly cumulative 

environmental and social impacts. 

Environmental impact assessments have 

been initiated for both Activities; both 

will produce environmental 

management plans. The Roads Project 

will be implemented in accordance with 

MCC Environmental Guidelines, the 

MCC Gender Policy, and the MCC 

Resettlement Guidance, which will 

ensure that any necessary mitigation 

measures will be taken with respect to 

the issues identified in the 

environmental impact assessments and 

environmental management plans. 

(d) Donor Coordination. 

The Roads Rehabilitation Project 

conforms both to the Economic 

Community of West African States’ 

standards, as well as to standards used 


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by other donors in projects that link to 

Program investments. The two donor 

organizations also involved in road 

construction are the European Union 

(‘‘EU’’) for the RN2 and the African 

Development Bank for the RN6. The 

U.S. Agency for International 

Development (‘‘USAID’’) is not 

significantly involved in investments in 

the road sector in Senegal. 

(e) Sustainability. 

Senegal has appropriate laws, 

structures, capacity, systems, and 

governance to continually improve 

sustainability of the road sector. The 

Government has shown willingness to 

strengthen the maintenance funding 

regime, and the country has shown 

much progress in its maintenance 

funding performance. An autonomous 

agency, the Agence Autonome de 

Transports Routiers, or the Independent 

Agency for Road Transportation 

(‘‘AATR’’), was created with the 

assistance of other donors to take 

responsibility for road development and 

maintenance in Senegal. AATR has been 

the beneficiary of rapid capacity 

development measures with the support 

of other donors. As a result, the agency 

is now operating with technically 

capable staff within both its 

headquarters and its regional offices. 

Several institutional strengthening 

measures have been implemented by 

AATR, including the systemization of 

road inventory and road condition, and 

prioritization of maintenance activities 

based on traffic, condition, cost-benefit, 

and hydraulics. Maintenance funding 

has been increasing rapidly since 1989. 

The available road maintenance funds 

were 3 billion CFA in 1989; 15 billion 

CFA in 1995; 18 billion CFA in 2007; 

and 37 billion CFA in 2009. As a result 

of this increase in maintenance funding, 

road conditions have improved 

significantly: only 35% of paved roads 

were deemed to be in ‘‘good’’ or 

‘‘average’’ condition in 2000, but 60% 

were deemed to be in 2007. 

The Government has created a road 

fund managed by an autonomous unit 

and governed by a board of directors 

with members from the public and 

private sectors (the ‘‘Road Fund’’). In 

2008, the Road Fund was migrated to a 

second generation fund, whereby fuel 

levy collections were deposited directly 

through adoption of a funding law. The 

law allows for fuel levies of about 35 

CFA for super diesel, 32 CFA for diesel, 

and 16 CFA for gasoline. 

Nevertheless, there is a persistent gap 

between the need for maintenance and 

available funds. The 2009 budget gap is 

currently 26%; the 2009 available 

maintenance budget provides only 74% 

of the annual road maintenance funding 

actually required for 2009. As part of the 

Program, the Government has agreed on 

a schedule to reduce and eventually 

eliminate any annual funding gap by 

2015. Measurable progress monitors are 

set forth in the Program Implementation 

Agreement as conditions precedent to 

disbursement for the Roads 

Rehabilitation Project. 

(f) Policy, Legal and Regulatory 

Reforms. 

There are no policy, legal, or 

regulatory reforms required to 

implement the Roads Rehabilitation 

Project, other than those that may be 

required with respect to the 

Government’s need to satisfy conditions 

precedent in connection with reducing 

the funding gap with respect to the road 

maintenance fund. 

2. Irrigation and Water Resources 

Management Project 

(a) Summary of Project and Activities. 

The Valley, the other region in 

Senegal rich in agricultural production, 

benefits from a very favorable 

environment for intensive irrigation for 

several reasons. First, there is a long 

irrigation history and experience in the 

Valley (some irrigation schemes have 

existed for more than 30 years). Second, 

the region has strong Government 

support and a reliable institution for 

maintenance and technical support 

through the regional, semi-autonomous 

agency responsible for all aspects of 

agricultural development in the Valley, 

the Socie ́te ́ Nationale d’Ame ́nagement et 

d’Exploitation des Terres du Delta du 

fleuve Se ́ne ́gal et des Valle ́es du fleuve 

Se ́ne ́gal et de la Fale ́me ́ (‘‘SAED’’). 

Third, farmer associations, supported by 

SAED, have demonstrated their 

capability to manage and maintain large 

irrigation schemes. Finally, organized 

commercialization exists throughout the 

region, although improvements are still 

required along the value chain. 

Optimal agricultural production in 

the Valley could supply Senegal with 

more than a significant share of its 

agricultural products, especially rice, 

the principal staple of the Senegalese 

diet. However, low agricultural yields 

have resulted in several thousand 

hectares of abandoned land. Three 

factors contribute directly to low yields: 

(i) Poor quality of the existing irrigation 

and drainage infrastructure; (ii) 

insufficient delivery of available water 

to agricultural areas; and (iii) lack of an 

appropriate drainage system, which 

leads to soil salinity. 

The Irrigation and Water Resources 

Management Project—comprising 

infrastructure investments in the 

Senegal River Delta (the ‘‘Delta’’) and 

Department of Podor (the ‘‘Podor’’) 

areas—conforms to Senegal’s 1998 

Master Plan for poverty reduction and 

agricultural development in the Valley 

and is designed to address the factors 

contributing to low agricultural yields 

described above. The Project will: (1) 

Increase the volume of irrigation water 

in the Valley to develop approximately 

8,500–10,500 hectares of additional 

irrigated land; (2) eliminate the risk of 

abandonment of approximately 26,000 

hectares of existing irrigable land; and 

(3) provide additional supply of water 

for human and animal use in the Delta, 

Podor, and adjoining areas. The Project 

will also rehabilitate drainage canals, 

which will further eliminate the risk of 

abandonment of irrigated land, as well 

as increase crop yields. The Project will 

also support a land tenure security 

activity, to provide for, or maintain, a 

secure land tenure environment for all 

of inhabitants of the region directly 

affected by the Project. The Project may 

also invest in complementary social 

safeguard measures. 

The Irrigation and Water Resources 

Management Project consists of the 

following Activities: 

(i) Delta Activity. 

Irrigation in the Delta, situated in the 

northwestern section of Senegal, is 

heavily influenced by the operation 

level of the Diama Dam, situated at the 

mouth of the Senegal River. Currently, 

31,080 hectares represents the total 

theoretically irrigable land in the area of 

the Delta targeted by the Project. 

However, due to insufficient water 

delivery and poor drainage, only 11,800 

hectares are cultivated at any time over 

the year. MCC Funding will be used for 

improvements to the irrigation and 

drainage channels in the Delta. 

Specifically, MCC Funding will support: 

(1) Irrigation and Drainage 

Construction Activities. With respect to 

irrigation, these consist of weed 

removal, dredging, profiling of berms, 

and increasing levee heights, along with 

the rehabilitation or replacement of 

associated structures and pumping 

stations along eight irrigation sections. 

With respect to drainage, these consist 

of construction of a pump station, a 

bridge, a siphon, elevation of the levees 

and construction of compensatory 

channels. More details with respect to 

the Delta Activity construction activities 

are set forth in Schedule 1 attached to 

this Annex I. 

(2) Non-Construction Activities. 

These costs include, without limitation, 

studies, construction supervision, and 

other project management costs to be 

incurred in connection with the Delta 

Activity. 

(ii) Podor Activity. 


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Senegal’s 1998 Master Plan for 

poverty reduction and agricultural 

development in the Valley specifies the 

installation of 28 irrigation sites in the 

Podor, and one of these sites is at 

N’Gallenka. The Podor Activity, focused 

on the site of N’Gallenka, expands the 

Program’s irrigation investments east of 

the Delta, into an area that is far more 

economically depressed than the Delta. 

The N’Gallenka site was chosen because 

of its high potential for rice production, 

sufficiency of water resources, available 

population, cost of dikes per hectare, 

and existing irrigation facilities. 

Furthermore, demonstration of the costeffectiveness of irrigation expansion in 

Podor should attract other private sector 

and donor investment in this area of 

high potential returns. MCC Funding 

will be used for the development of 

primary and secondary irrigation and 

drainage channels, and associated 

structures at the N’Gallenka site. 

Specifically, MCC Funding will support 

the construction costs associated with 

the development of the primary and 

secondary irrigation and drainage 

channels and associated structures, as 

well as related non-construction costs 

(studies, construction supervision, and 

other project management costs). 

(iii) Social Safeguard Measures 

Activity. 

The Government is actively seeking 

support to strengthen irrigation 

investments in the Valley with social 

development activities designed to 

diversify current livelihood strategies, 

slow emigration from the Delta, link 

Podor to markets, and improve the 

ability of women and youth to take 

advantage of the economic 

opportunities presented by the 

improved prospects for agricultural 

production. The Program may support 

the Government’s efforts by financing 

certain social safeguard measures 

directly related to the Irrigation and 

Water Resources Management Project. 

Specifically, MCC Funding may be used 

for the construction of day care 

facilities, as well as the construction 

and initial operation of agricultural 

storage and information centers, and 

livestock multipurpose centers. In each 

case, these social safeguard measures 

are intended to complement the 

objectives of the Irrigation and Water 

Resources Management Project and/or 

to mitigate potential adverse impacts of 

the Project. For instance, the day care 

facilities should allow women to spend 

more time engaged in revenuegenerating activities on the newly 

irrigated lands that will be allocated 

through the Project, while still 

providing their children with quality 

care. The agricultural storage and 

information centers are intended to 

provide much-needed price information 

and technical resources to decrease crop 

loss due to poor storage conditions. 

Finally, the livestock multipurpose 

centers are intended to provide muchneeded technical resources and supplies 

to livestock owners, thereby reassuring 

pastoralists that might otherwise be 

marginalized by the Project because of 

the reduced amount of rangeland 

available for their herds. It should be 

noted that any use of MCC Funding for 

the Social Safeguard Measures Activity 

is entirely contingent upon the 

following three conditions being met: 

(1) Provision by the Government of any 

supplemental information required by 

MCC, in form and substance satisfactory 

to MCC, to enable MCC to make a 

funding decision with respect to this 

Activity (this may include, inter alia, a 

comprehensive operational plan for 

each measure that describes diligenced 

costs, staffing and equipment 

information and requirements, and 

information on day-to-day operations 

and maintenance of the centers, both 

during the Compact Term and 

afterwards); (2) a decision by MCC in 

writing agreeing to fund the Activity, in 

whole or in part, together with any 

conditions to such agreement; and (3) 

satisfaction of the first two conditions 

prior to the third anniversary of this 

Compact’s entry into force. 

(iv) Land Tenure Security Activity. 

To improve the investment climate in 

the Project area and to mitigate the 

potential for land conflict due to 

increased demand for irrigated land as 

a result of the Irrigation and Water 

Resources Management Project, the 

Land Tenure Security Activity will 

support development and 

implementation of transparent, fair, and 

efficient processes for land allocation to 

ensure equitable and secure access to 

land in the irrigated perimeters. It will 

also equip local authorities with tools, 

such as manuals of procedures and land 

registries, to improve land management, 

and reinforce capacity through 

communication and training on the 

newly provided tools as well as existing 

land management tools. The Land 

Tenure Security activity will primarily 

support the allocation and formalization 

of land use rights by local rural councils 

(‘‘CRs’’) and local communal councils 

(‘‘CCs’’) according to existing Senegalese 

land law. Specifically, MCC Funding 

will support: 

(1) Design and implementation of a 

participatory and multi-step process for 

allocation by the CRs and CCs to 

producer groups and individual 

producers of parcels in irrigated 

perimeters developed or improved 

through the Irrigation and Water 

Resources Management Project. Land 

allocations will be formalized according 

to Senegalese land law through award of 

titres d’affectation (land certificates) to 

all holders of land rights in the irrigated 

perimeters. The process will include 

documentation of existing rights, 

identification and mapping of improved 

parcels, development of criteria for 

selection of beneficiaries, and 

transparent selection followed by award 

of the titres d’affectation and 

recordation of all land allocations in 

registers to be maintained by the CRs 

and CCs. 

(2) Reinforcement of land 

management capacity of CRs (and CCs), 

producer groups (GIEs and GPFs), and 

selected government agencies 

responsible for supporting rural 

community land management. 

Activities will center on development of 

new tools designed to adapt and more 

efficiently apply Senegalese land law in 

the context of the Valley, including a 

land allocation manual and land 

registry, and training on existing tools 

such as land occupation and allocation 

plan (‘‘POAS’’) and the Charter for the 

Irrigated Domain (‘‘CDI’’). 

(b) Beneficiaries. 

Beneficiaries of the Irrigation and 

Water Resources Management Project 

include households, owners or 

shareholders of farming enterprises, and 

households that have individuals 

employed in the operation of enterprise 

farms. The Project would benefit 

approximately 22,390 households, or 

268,700 individuals, through 

participation in own agricultural 

production or employment in 

agriculture. Assuming that households 

would, on average, cultivate two 

hectares of irrigated area, the scale of 

net revenue from a holding would have 

a substantial impact on the welfare of 

poor households. Average household 

size is about twelve persons. Average 

future revenues of about purchasing 

power parity (PPP) US$4,470 per twohectare farm would increase household 

incomes by more than PPP US$1 per 

person per day. For households 

subsisting with incomes of PPP US$1.25 

or less per person per day, this 

increment would move households from 

being extremely poor to being near poor 

(not far below or above PPP US$2 per 

person per day). It is estimated that the 

full development of the irrigated areas 

targeted by the Project will provide 

employment for approximately 9,000 

households (benefits accruing to 

approximately 105,000 persons). 

(c) Environmental and Social 

Mitigation Measures. 


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The Irrigation and Water Resources 

Management Project is classified as 

‘‘Category A.’’ Environmental impact 

assessments have been initiated, and 

they will produce environmental 

management plans. The Project will be 

implemented in accordance with MCC 

Environmental Guidelines, the MCC 

Gender Policy, and the MCC 

Resettlement Guidance, which will 

ensure that any necessary mitigation 

measures will be taken with respect to 

the issues raised above. 

(d) Donor Coordination. 

The Government, from the earliest 

days of project identification and 

development, partnered and 

coordinated with all of the stakeholders 

in the Valley to ensure that (i) MCC’s 

investments would be complementary 

to other existing and planned 

investments throughout the region, and 

(ii) would be supported by Government 

agencies, donors, and NGOs. All donors 

have endorsed the Program investments 

in the Valley because they recognize the 

need for significant investment in the 

region’s infrastructure to complement 

their own investments. The current 

field-level focal points for donor 

coordination and collaboration are 

SAED and the Support Program for 

Local Development, respectively 

responsible for implementation of 

programs sponsored by the World Bank 

(‘‘PDMAS’’) and the Agence Franc ̧aise 

de De ́veloppement (the French 

Development Agency (‘‘AFD’’)). 

The principal donors investing in the 

region are USAID, the U.S. Department 

of Agriculture (‘‘USDA’’), the EU, AFD, 

the Japanese Development Agency, and 

the World Bank. USAID, for example, is 

increasing agricultural productivity 

through improvements to the 

agricultural value chain, including 

improving the quality and availability of 

inputs, cold storage and warehousing, 

and access to credit, and it is also 

implementing a natural resource 

management program that focuses on 

forest management for the production of 

select products (timber, resin, fruit, and 

crafts) for regional and international 

markets. The USDA, through its ‘‘Food 

for Progress’’ program, partners with 

NGOs such as Counterpart International 

to work directly with farmers and 

farmers’ associations to provide training 

in agricultural best practices. AFD’s 

‘‘Programme d’Appui aux 

Communaute ́s Rurales’’ (‘‘PACR’’), or 

‘‘Technical Assistance Program for 

Rural Communities,’’ shares common 

objectives and geographical focus with 

the Land Tenure Security Activity; 

accordingly, MCC and AFD expect to 

coordinate closely implementation of 

the respective initiatives and target 

opportunities for synergy. 

(e) Sustainability. 

SAED is responsible for maintaining 

primary and secondary irrigation 

systems throughout the Valley. SAED’s 

considerable human resources, 

technical capacity and experience have 

been enhanced in recent decades 

through the agency’s central role in 

implementation of several international 

donor-sponsored programs, such as the 

PDMAS project and specific activities of 

the PACR. It also provides technical 

assistance and training to farmers for 

them to maintain tertiary irrigation 

systems. 

However, project maintenance 

activities in the Delta are funded with 

fees collected from farmers, and with 

funds provided by the Government to 

cover the gap between annual 

maintenance costs and total fees 

collected. Fee collection from farmers in 

the Delta zone is poor, with a collection 

efficiency of only 30%. Poor collection 

is primarily attributable to unreliable 

water supply and inadequate water 

availability. A lack of transparency in 

collection is also a contributor to poor 

collection efficiency. In order to 

improve collection of water user fees 

and to make more maintenance funds 

available for SAED to undertake 

required, periodic maintenance work, 

the Government will take specific steps 

agreed by MCC to improve collection of 

water user fees; these include the 

Government conducting an independent 

audit of maintenance, including roles, 

responsibilities, current arrangements, 

service performance and collection 

performance, as well as a financial 

analysis of maintenance, with the 

objective of identifying principal issues 

and recommending an action plan to 

improve sustainability (the ‘‘Irrigation 

Maintenance Action Plan’’). The 

Irrigation Maintenance Action Plan 

must be approved by the Ministry of 

Agriculture and implementation of the 

action plan—with measurable targets 

and a progress monitoring mechanism 

to evaluate performance and outcomes 

of implementation—will be monitored 

throughout the Compact Term. 

(f) Policy, Legal and Regulatory 

Reforms. 

There are no policy, legal, or 

regulatory reforms required to 

implement the Irrigation and Water 

Resources Management Project other 

than those that may be required by the 

Irrigation Maintenance Action Plan and 

implementing measures arising out of 

the Land Tenure Security Activity, such 

as the passage of an arreˆte ́ by the 

appropriate administrative authorities 

establishing land allocation committees 

and describing land allocation 

principles. 

3. Implementation Framework 

(a) Overview. 

The implementation framework and 

the plan for ensuring adequate 

governance, oversight, management, 

monitoring and evaluation, and fiscal 

accountability for the use of MCC 

Funding are summarized below. MCC 

and the Government will enter into the 

Program Implementation Agreement, 

and any other agreements in furtherance 

of this Compact, all of which, together 

with this Compact, set out certain rights, 

responsibilities, duties and other terms 

relating to the implementation of the 

Program. 

(b) MCC. 

MCC will take all appropriate actions 

to carry out its responsibilities in 

connection with this Compact and the 

Program Implementation Agreement, 

including the exercise of its approval 

rights in connection with the 

implementation of the Program. 

(c) MCA-Senegal (and, prior to its 

establishment, MFG–MCA). 

The Government will establish MCASenegal through passage of a decree in 

substantially the form and on 

substantially the terms of the form of 

decree set forth in Schedule 2 to this 

Annex I (the ‘‘Establishment Decree’’). 

In accordance with Section 3.2(d) of this 

Compact, MCA-Senegal will act on the 

Government’s behalf to implement the 

Program and to exercise and perform the 

Government’s rights and responsibilities 

with respect to the oversight, 

management, and implementation of the 

Program, including, without limitation, 

managing the implementation of 

Projects and their Activities, allocating 

resources, and managing procurements. 

The Government will ensure that MCASenegal takes all appropriate actions to 

implement the Program, including the 

exercise and performance of the rights 

and responsibilities designated to it by 

the Government pursuant to this 

Compact and the Program 

Implementation Agreement. Without 

limiting the foregoing, the Government 

will also ensure that MCA-Senegal has 

full decision-making autonomy, 

including, inter alia, 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-Senegal and hold MCC Funding in 

that account, (iv) expend MCC Funding, 

(v) engage one or more fiscal agents who 

will act on behalf of MCA-Senegal on 

terms acceptable to MCC, (vi) engage 

one or more procurement agents who 


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will act on behalf of MCA-Senegal, on 

terms acceptable to MCC, to manage the 

acquisition of the goods, works, and 

services required by MCA-Senegal to 

implement the activities funded by this 

Compact, and (vii) competitively engage 

one or more auditors to conduct audits 

of its accounts. In accordance with 

Section 3.2(d) of this Compact, MFG– 

MCA, established by De ́cret Nß 2008–53 

dated January 29, 2008, will act on 

behalf of the Government with respect 

to the Compact and the Program until 

MCA-Senegal is established. For the 

avoidance of doubt, the Government 

will take all appropriate actions to 

ensure that MCA-Senegal is established 

as soon as possible after the ratification 

of this Compact, and, in any event, in 

accordance with the applicable 

condition precedent to the disbursement 

of Compact Implementation Funding set 

forth in Annex IV to this Compact. 

MCA-Senegal will be administered 

and managed by the following bodies: 

(1) Le Conseil de Surveillance, acting as 

its board of directors (the ‘‘Board’’); (2) 

la Direction Ge ́ne ́rale, acting as its 

management unit (the ‘‘Management 

Unit’’); and (3) le Comite ́ des Parties 

Prenantes, acting as its stakeholders 

committee (the ‘‘Stakeholders 

Committee’’). The governance of MCASenegal will be set forth in more detail 

in the Establishment Decree, the 

Program Implementation Agreement, 

and the internal regulations of MCASenegal (‘‘MCA-Senegal Bylaws’’), 

which will, collectively, set forth the 

responsibilities of the Board, the 

Management Unit, and the Stakeholders 

Committee. The MCA-Senegal Bylaws 

will be developed and adopted in 

accordance with MCC’s Guidelines for 

Accountable Entities and 

Implementation Structures, published 

on the MCC Web site (the ‘‘Governance 

Guidelines’’), and will be in form and 

substance satisfactory to MCC. 

(i) Board (le Conseil de Surveillance). 

(1) Composition. MCA-Senegal will be 

governed by the Board, which will 

consist of voting members representing 

those Government ministries and civil 

society and private sector organizations 

set forth in the Establishment Decree. 

The Board will also consist of those 

non-voting observers set forth in the 

Establishment Decree. All voting 

members will be named in writing by 

their respective Government ministries 

and civil society and private sector 

organizations, as applicable, and must 

be sufficiently senior and qualified to 

make decisions on behalf of their 

respective ministries and civil society 

and private sector organizations, as 

applicable. Each voting member named 

to serve on the Board, and any 

replacement for any voting member or 

any alteration of the size or composition 

of the Board, shall be subject to MCC 

prior approval. 

(ii) Roles and Responsibilities. The 

Board will be responsible for overseeing 

the implementation of the Program and 

will have final decision-making 

authority over the implementation of 

the Program. The Board will meet 

regularly; the frequency of meetings will 

be set forth in the MCA-Senegal Bylaws 

and will be in accordance with the 

Governance Guidelines. The specific 

roles of the voting members and nonvoting observers will be set forth in the 

Establishment Decree and the MCASenegal Bylaws. 

(iii) Management Unit (la Direction 

Ge ́ne ́rale). 

(1) Composition. The Management 

Unit, which will be led by a 

competitively selected Director General, 

will be composed of competitively 

recruited Directors with expertise in the 

key components of the Program, 

including, without limitation, a Roads 

Director, an Irrigation and Water 

Resources Management Director, and a 

Land Tenure Security Director, as well 

as a Deputy Director General, a Chief 

Financial Officer, a General Counsel, 

and other key Directors, including, 

without limitation, an Environmental 

and Social Assessment Director, a 

Procurement Director, a Monitoring and 

Evaluation Director, and a 

Communications Director. The 

Management Unit will also include such 

other managers and officers as may be 

agreed by the Government and MCC, 

including, without limitation, an 

internal auditor and a Human Resources 

Officer. The Directors will be supported 

by appropriate additional staff to enable 

the Management Unit to execute its 

roles and responsibilities. 

(iv) Roles and Responsibilities. The 

Management Unit will be based in 

Dakar, Senegal, and will be responsible 

for managing the day-to-day 

implementation of the Program, with 

oversight from the Board. The 

Management Unit will serve as the 

principal link between MCC and the 

Government, and will be accountable 

for the successful execution of the 

Program, each Project, and each 

Activity. As a Government entity, MCASenegal will be subject to Government 

audit requirements. As a recipient of 

MCC Funding, MCA-Senegal will also 

be subject to MCC audit requirements. 

(v) Stakeholders’ Committee (le 

Comite ́ des Parties Prenantes). 

(1) Composition. Pursuant to the 

Establishment Decree, the composition 

of the Stakeholders Committee will be 

determined by the Board in accordance 

with the Governance Guidelines and 

subject to MCC approval. Without 

limiting the foregoing, the 

Establishment Decree provides that the 

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 Program, key 

NGOs, and any applicable civil society 

and private sector representatives. In 

addition, the Board may establish 

regional, informal stakeholders 

committees in the project intervention 

zones composed of, inter alia, Program 

beneficiaries, regional and local 

government representatives, entities 

with an interest or involvement in the 

implementation of the Program, key 

NGOs, and any applicable civil society 

and private sector representatives. The 

establishment and composition of any 

such regional, informal stakeholders 

committees will also be subject to MCC 

approval. 

(2) Roles and Responsibilities. 

Consistent with the Governance 

Guidelines, the Stakeholders Committee 

(and any informal, regional stakeholders 

committees established by the Board) 

will be responsible for continuing the 

consultative process throughout 

implementation of the Program. While 

the Stakeholders Committee (and any 

informal, regional stakeholders 

committees established by the Board) 

will not have any decision-making 

authority, it will be responsible for, 

inter alia, reviewing, at the request of 

the Board or the Management Unit, 

certain reports, agreements, and 

documents related to the 

implementation of the Program in order 

to provide advice and input to MCASenegal regarding the implementation of 

the Program. 

(d) The ‘‘Cellule d’Appui au MCA– 

Se ́ne ́gal.’’ 

As referenced in Article 8 of the 

Compact, the Government will 

contribute to the Program, inter alia, 

through the establishment of and 

financial support for a ‘‘Cellule d’Appui 

au MCA–Se ́ne ́gal’’ (the ‘‘Cellule’’). 

Exclusively Government-funded and 

exclusively Government-run, the 

Cellule’s focus would be distinct from, 

but related to, the Program. The Cellule 

will contain staff to perform certain 

functions, which may include, but are 

not limited to, the following: 

(i) Guichet Unique. Certain Cellule 

staff will be engaged to assist MCASenegal and contractors working on the 

Program with navigating the tax 

exemption procedures to ensure that 

they benefit from the tax exemptions 

provided by the Compact. 


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(ii) Administration and Finance. 

Certain Cellule staff will be engaged to 

perform administration and finance 

functions with respect to the Cellule’s 

operations, any mesures 

d’accompagnement described in 

paragraph b above, the start up or 

closure of MCA-Senegal, and any 

Government financial obligations 

arising out of the Compact, including, 

but not limited to, Sections 2.6(a) or 8.1 

of the Compact. 

(iii) Monitoring Eligibility Criteria. 

Certain Cellule staff will be engaged to 

monitor and evaluate Senegal’s level of 

performance under the policy criteria 

identified in Section 607 of the MCA 

Act, and the selection criteria and 

methodology used by MCC. 

(iv) Mesures d’Accompagnement. To 

the extent the Government undertakes 

certain social development activities 

outside of the Program in the Project 

areas (such activities may be designed 

to, inter alia, diversify current 

livelihood strategies, slow emigration 

from the Delta, link Podor to markets, 

and improve the ability of women and 

youth to take advantage of the economic 

opportunities presented by an improved 

environment for agricultural 

production), the Cellule may contain 

staff to manage the implementation of 

such social development activities. 

(e) Implementing Entities. 

Subject to the terms and conditions of 

this Compact and any other related 

agreements entered into in connection 

with this Compact, the Government and 

MCC have identified certain principal 

public institutions that may or will 

serve as implementing entities (each, an 

‘‘Implementing Entity’’) to implement 

and carry out certain Projects and/or 

Activities (and/or any component 

thereof) in furtherance of this Compact. 

Such Implementing Entities include, but 

are not limited to, (i) AATR, for the 

Roads Rehabilitation Project and (ii) 

SAED, for the Irrigation and Water 

Resources Management Project. The 

Government will ensure that the roles 

and responsibilities of each 

Implementing Entity and other 

appropriate terms are set forth in an 

agreement between MCA-Senegal and 

each Implementing Entity, which 

agreement must be in form and 

substance satisfactory to MCC (each an 

‘‘Implementing Entity Agreement’’). 

(f) Fiscal Agent. 

Unless MCC otherwise agrees in 

writing, the Government will engage a 

fiscal agent (a ‘‘Fiscal Agent’’), who will 

be responsible for assisting the 

Government with its fiscal management 

and assure appropriate fiscal 

accountability of MCC Funding, and 

whose duties will include those set 

forth in the Program Implementation 

Agreement. 

(g) Procurement Agent. 

Unless MCC otherwise agrees in 

writing, the Government will engage 

one or more procurement agents (each, 

a ‘‘Procurement Agent’’) to carry out and 

certify specified procurement activities 

in furtherance of this Compact. The 

roles and responsibilities of each 

Procurement Agent will be set forth in 

the Program Implementation Agreement 

or such agreement as the Government 

enters into with each Procurement 

Agent, which agreement shall be in form 

and substance satisfactory to MCC. Each 

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 otherwise agrees in writing. 

Schedule 1 of Annex I Delta Activity 

Construction Activities 

The work on the main irrigation 

channels of the Delta Activity consists 

of weed removal, dredging, profiling of 

berms, and increasing levee heights, as 

well as the rehabilitation or replacement 

of the associated structures and 

pumping stations of the following 

sections: 

Irrigation section Length/targeted flow rate Associated improvements 

Gorom Amont ................................... 25 km/30 m3s-1 ............................ Ronkh Intake: increase of gravity flow capacity from 20m3s-1 to 

30m3s-1 by reopening two additional gates and increase of pumping capacity from 8.3m3s-1 to 20m3s-1. 

Gorom Aval ....................................... 22 km/23 m3s-1 ............................ Intake G: construction of an additional control bridge with four gates 

to increase the gravity flow capacity from 20m3s-1 to 40m3s-1; 

Rehabilitation of the Boundoum Dam Bridge. 

Lampsar Amont ................................ 20 km ............................................ Replacement of the Boundoum Bridge with a control bridge. 

Lampsar Aval .................................... 24 km/12 m3s-1 ............................ Replacement of the Lampsar Bas Bridge with a control bridge; Repairs on the Bango Bridge. 

Ngalam ............................................. 8 km .............................................. Rehabilitation of the Ndiaoudoun Bridge. 

Djawel ............................................... 4 km .............................................. Rehabilitation of the Djawel Bridge. 

Kassack ............................................ 20 km ............................................ Rehabilitation of the Demba and Diambar Bridges. 

Djeuss ............................................... ....................................................... Partial transformation into a main drainage channel. 

Schedule 2 to Annex I Form of MCASenegal Decree 

Republic of Senegal 

One People—One Goal—One Faith 

Order No. * * * establishing the 

Millennium Challenge Account Senegal 

(hereinafter, ‘‘MCA-Senegal’’). 

The President of the Republic, 

Having regard to Constitution of the 

Republic of Senegal (hereinafter, 

‘‘Senegal’’), and in particular articles 43 

and 76 thereof; 

Having regard to the Millennium 

Challenge Compact (hereinafter, the 

‘‘Compact’’) signed on [insert signature 

and date] between the Republic of 

Senegal (hereinafter ‘‘Senegal’’), acting 

through its government (hereinafter, the 

‘‘Government’’) and the government of 

the United States of America, acting 

through the Millennium Challenge 

Corporation (hereinafter, ‘‘MCC); 

Having regard to Law No. [insert 

number and date] whereby the National 

Assembly authorized the President of 

Senegal to ratify the Compact; 

Having regard to Letter No. [insert 

number and date] whereby the 

President ratified the Compact; 

Having regard to Order No. 2008–53 

of January 29, 2008 establishing the 

Mission to Develop and Manage the 

Millennium Challenge Account Senegal; 

Whereas the Compact establishes the 

general terms and conditions under 

which MCC offers to grant an amount 

not to exceed [insert amount in words 

and figures] to the Government for a 

program to reduce poverty in Senegal 

through economic growth (hereinafter, 

the ‘‘Program’’); 

Considering the Government’s 

commitment established in the Compact 

(Annex I: Program description) to 

establish a separate legal entity with 

financial autonomy to coordinate and 

execute the Program; 


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Orders 

Article 1: Establishment; Legal Capacity 

An autonomous entity, ‘‘MCASenegal’’ is hereby established as a 

juristic person with financial autonomy 

to assume responsibility for managing 

the Program for Senegal. MCA-Senegal 

shall be a unit within the Office of the 

Prime Minister. MCA-Senegal shall have 

full legal capacity and financial 

autonomy, including, inter alia, the 

ability to enter into contracts and 

agreements; to open, maintain and close 

bank accounts; to recruit personnel 

through competitive processes and 

terminate them; and to appear as a party 

to legal proceedings. 

Article 2: Responsibilities of MCASenegal 

MCA-Senegal shall: 

• Assume responsibility, on behalf of 

the Government, for overseeing the 

activities associated with management 

and implementation of the Program; 

• Represent the Government, in 

consultation with the responsible 

Government agencies, in negotiations 

with MCC regarding technical, financial 

and administrative issues relating to the 

Compact; 

• Execute legal instruments on behalf 

of the Government in its relationships 

with stakeholders or other persons 

involved in managing, monitoring and 

implementing the Program for the 

Government. 

Article 3: MCA-Senegal Management 

Bodies 

In performing its functions, MCASenegal shall be supported by a 

deliberative body, an executive body 

and an advisory body: 

• The Supervisory Board shall serve 

as the deliberative body, 

• The Management Unit (direction 

ge ́ne ́rale) shall serve as the executive 

body, 

• The Stakeholders Committee shall 

serve as the advisory body. 

No member of the Supervisory Board, 

the Management Unit or the 

Stakeholders Committee or other 

representative of MCA-Senegal shall 

have a direct or indirect conflict of 

interest with the performance of the 

functions for which MCA-Senegal is 

responsible. 

Article 4: Powers of the Supervisory 

Board 

The MCA-Senegal Supervisory Board 

shall have the broadest powers to act in 

all circumstances and make decisions 

concerning the objectives, policies, 

administration and oversight of the 

Management Unit’s operations. 

To this end, the Supervisory Board 

shall: 

• Determine the strategic objectives of 

the Program, 

• Approve the administrative 

organization of MCA-Senegal, 

• Approve any decision to dissolve 

MCA-Senegal or modify its structure, 

• Adopt the MCA-Senegal annual 

activity report prepared by the 

Executive Director, 

• Approve the MCA-Senegal annual 

budget, 

• Approve the financial statements 

prepared by the Executive Director 

within three months after the close of 

the fiscal year, 

• Recruit the Executive Director, 

• Approve the Executive Director’s 

contract, the Management Unit 

organization chart and the form of 

employment contract for key personnel, 

• Terminate the Executive Director 

and approve the termination of 

executive or key personnel of MCASenegal, 

• Approve plans to award contracts, 

and 

• Perform all other tasks prescribed 

by MCC directives or the internal 

regulations of the Supervisory Board. 

The decisions of the Supervisory 

Board shall be subject to MCC’s no 

objection. 

Article 5: Composition of the 

Supervisory Board 

The Supervisory Board shall be 

composed of the following members 

with voting rights (individually a 

‘‘Member’’): 

• A representative of the Prime 

Minister, 

• A representative of the Minister of 

Foreign Affairs, 

• A representative of the Minister of 

Economy and Finance, 

• A representative of the Minister of 

Infrastructure, 

• A representative of the Minister of 

the Environment, 

• A representative of the Minister of 

Decentralization and Local Authorities, 

• A representative of the Minister of 

Justice, 

• A representative of the Minister of 

Agriculture, 

• A representative of the Minister of 

Social Development and Gender, 

• Two representatives from the most 

representative employer organizations, 

• Two representatives from the most 

representative society organizations, 

including one woman. 

Each Member shall have one vote. 

The following individuals shall serve 

in an advisory capacity on the 

Supervisory Board as nonvoting 

permanent observers: 

• A representative of MCC, 

• The Executive Director of MCASenegal. 

The Supervisory Board Members 

representing the Government shall be 

designated in writing by their respective 

ministers. They shall have the authority 

and powers to represent their ministries 

and make all decisions during 

Supervisory Board meetings. The term 

of office of a Member representing the 

Government shall expire with that of the 

minister concerned or following the 

respective minister’s written decision to 

replace the Member. 

The Members representing civil 

society and employer organizations 

shall be designated in writing by their 

organization’s deliberative body. The 

Members representing civil society and 

employer organizations shall have all 

powers in the context of their mission 

to act on behalf of their organization. 

The term of office of a Member 

representing a civil society or employer 

organization shall expire following the 

written decision of the respective 

organization’s deliberative body to 

replace the Member. 

The terms of Supervisory Board 

members shall commence upon their 

appointment. 

MCC’s no objection shall be required 

for any proposal or modification of the 

Supervisory Board’s composition. 

Article 6: Supervisory Board Operations 

The Supervisory Board shall meet as 

often as required and at least once each 

quarter. It shall be convened by a 

representative of the Office of the Prime 

Minister or at the request of at least four 

(4) Members. The rules governing the 

procedures for convening meetings, 

establishing a quorum and adopting 

decisions shall be established by the 

internal regulations. 

The Executive Director of MCASenegal shall serve as secretary of the 

Supervisory Board. 

The Members of the Supervisory 

Board shall receive no remuneration. 

However, each Member of the 

Supervisory Board shall be entitled to 

reimbursement of reasonable expenses 

incurred in connection with attendance 

at Supervisory Board meetings, in 

accordance with MCC directives. 

The Supervisory Board may decide to 

retain the services of experts and 

specialists to assist it in performing its 

functions. Such experts and specialists 

shall participate in Supervisory Board 

meetings in an advisory capacity. 

The Supervisory Board may, if 

necessary, establish committees formed 

of Members and/or observers to which 

it may delegate tasks related to its 

functions. 


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1The exact titles to be confirmed. 

Article 7: Stakeholders Committee 

The Stakeholders Committee shall be 

an advisory body responsible for 

monitoring projects and providing 

technical assistance to the Management 

Unit and Supervisory Board, to which it 

may also provide opinions. 

The Stakeholders Committee shall 

consist of the project beneficiaries, the 

entities involved in or having an interest 

in Program execution, and 

representatives from the Government, 

employer organizations and civil 

society. 

The members of the Stakeholders 

Committee representing the Government 

shall be appointed by their respective 

ministries, and the members 

representing employer and civil society 

organizations by their respective 

organizations. 

The Supervisory Board shall 

designate the members of the 

Stakeholders Committee and determine 

its composition and operating 

procedures. 

The Supervisory Board may decide to 

establish local stakeholder 

subcommittees in the Program’s area of 

influence. The members of such 

subcommittees shall be designated 

under the same terms and conditions as 

the national Stakeholders Committee. 

Article 8: Management Unit 

MCA-Senegal shall be managed by a 

Management Unit headed by an 

Executive Director. The Executive 

Director shall be recruited by the 

Supervisory Board in accordance with 

MCC directives. 

The process of recruiting members of 

the Management Unit personnel shall be 

subject to MCC’s no objection. 

The key personnel of MCA-Senegal 

shall be recruited or terminated by the 

Executive Director in accordance with 

MCC directives and subject to the 

Supervisory Board’s approval. 

The Executive Director shall provide 

day-to-day oversight and supervision of 

MCA-Senegal’s operations and shall 

serve as the Additional Representative 

within the meaning of the Compact. He 

shall prepare the work of the 

Supervisory Board and implement the 

policies it establishes. 

The duties of the Executive Director 

shall include: 

• Exercising administrative and 

management authority over all 

personnel and departments of MCASenegal, 

• Reporting to interested parties, 

including the Supervisory Board and 

the Stakeholders Committee, on 

progress in implementing the Program, 

• Preparing and executing the MCASenegal budget in accordance with the 

provisions of article 9, 

• Preparing an annual activity report 

and submitting it to the Supervisory 

Board for approval, 

• Preparing the financial statements 

and submitting them to the Supervisory 

Board for approval, 

• Performing all other tasks 

prescribed by MCC directives or the 

Supervisory Board. 

Article 9: MCA-Senegal Budget 

MCA-Senegal shall have a budget 

outlining its receipts and expenditures. 

MCA-Senegal’s receipts shall consist 

of the budget appropriation provided in 

the Compact. MCA-Senegal’s funding 

shall also consist of an annual budget 

appropriation from the Government as 

provided by the Compact and related 

agreements, which shall be managed by 

the MCA-Senegal Support Unit (Cellule 

d’Appui) provided in the Compact. 

All MCA-Senegal funding, whether 

provided under the Compact or by the 

Government, shall be used exclusively 

to fulfill the responsibilities of MCASenegal as described in article 2. 

In accordance with article 8, the 

budget shall be prepared and executed 

by the Executive Director under the 

supervision of the Supervisory Board. 

Article 10: Audit and Oversight 

MCA-Senegal shall be subject to 

audits by the Inspector General of 

Finance, the Auditor General 

(Inspection Ge ́ne ́rale d’Etat) and the 

Court of Auditors (Cour des Comptes) as 

provided, inter alia, by Law No. 90–07 

June 26, 1990. As provided by the 

Compact and related agreements and 

MCC directives, it shall also be subject 

to audits by independent firms, MCC, 

the Inspector General of the United 

States Agency for International 

Development, and the United States 

Government Accountability Office. 

Article 11: Effects of the Order 

This order repeals Order No. 2008–53 

of January 29, 2008 establishing the 

Mission to Develop and Manage the 

Millennium Challenge Account Senegal 

(hereinafter, ‘‘MFG–MCA’’). The 

Government of Senegal shall replace the 

MFG–MCA in the exercise of its rights 

and the performance of its legal and 

contractual obligations, including 

employer and tax obligations and 

monies payable by MFG–MCA to 

service providers; however, provided it 

expressly indicates its intent to do so, 

MCA-Senegal may: (1) Receive the 

benefit of services performed for MFG– 

MCA and exercise the rights attached to 

those powers (without assuming any 

obligations); or (2) assume the 

obligations and rights that had been 

performed for the benefit of MG–MCA. 

Article 12: Transitory Provisions 

Without prejudice to the other 

provisions of this order, the Supervisory 

Board shall meet either at the request of 

at least four Members or at the initiative 

of the Prime Minister or his 

representative until the internal 

regulations of the Supervisory Board are 

adopted. 

The meetings of the Supervisory 

Board shall be convened by the Prime 

Minister or his representative, who shall 

chair the meetings. 

The Supervisory Board shall have a 

quorum if one-half of its Members are 

present or represented. The decisions of 

the Supervisory Board, other than the 

decision to adopt the internal 

regulations, shall be adopted by an 

absolute majority of the Members 

present or represented. An absolute 

majority of the Supervisory Board 

Members shall be required to adopt the 

internal regulations or written 

decisions. 

Article 13: Execution of the Order 

The Prime Minister, the Minister of 

Foreign Affairs; the Minister of 

Economy and Finance; the Minister of 

the Interior; the Minister of the 

Environment and Protection of Nature, 

Retention Basins and Artificial Lakes; 

the Minister of Infrastructure and 

National Planning; the Minister of 

Decentralization and Local Authorities; 

the Minister of Justice; the Minister of 

Social Development and Gender; each 

with respect to his or her ministry, shall 

be responsible for executing this order, 

which shall be published in the Official 

Journal.1

Executed at Dakar, thislllll 

By the President of the Republic 

Abdoulaye Wade 

The Prime Minister 

Annex II Multi-Year Financial Plan 

Summary 

This Annex II summarizes the MultiYear Financial Plan for the Program. 

1. General 

A multi-year financial plan summary 

(‘‘Multi-Year Financial Plan Summary’’) 

is attached hereto as Exhibit A. By such 

time as specified in the PIA, the 

Government will adopt, subject to MCC 

approval, a Multi-Year Financial Plan 

that includes, in addition to the multiyear summary of estimated MCC 

Funding and the Government’s 

contribution of funds and resources, the 


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annual and quarterly funding 

requirements for the Program (including 

administrative costs) and for each 

project, projected both on a commitment 

and cash requirement basis. 

EXHIBIT A—MULTI-YEAR FINANCIAL PLAN SUMMARY

[Multi-year financial plan (US$)] 

Project CIF Year 1 Year 2 Year 3 Year 4 Year 5 Total 

1. Irrigation & Water Resources Management Project:.

Infrastructure Activity 

Land Tenure Security Activity 

Social Safeguard Measures 

Sub-Total ................................... 0 19,812,280 69,915,184 63,538,624 16,667,272 75,500 170,008,860 

2. Roads Rehabilitation Project: 

National Road #2 

National Road #6 

Sub-Total ................................... 0 48,695,302 101,844,436 95,320,317 56,859,947 21,342,497 324,062,499 

3. Monitoring and Evaluation (M&E): 

Monitoring and Evaluation 

Sub-Total ................................... 0 571,500 771,500 546,500 671,500 1,196,500 3,757,500 

4. Program Administration and Audit 1: 

MCA-Senegal 

Fiscal Agent/Procurement Agent 

Audit 

Sub-Total ................................... 5,000,000 7,248,022 7,324,764 7,403,964 7,383,539 7,810,852 42,171,141 

Grand Total ........................ 5,000,000 76,327,104 179,855,884 166,809,405 81,582,258 30,425,349 540,000,000 

1These amounts do not include any costs required to be borne by the Government pursuant to the Compact, including, but not limited to Sections 2.6(a) and Section 8.1 of the Compact. 

Annex III Description of the 

Monitoring and Evaluation Plan 

This Annex III (this ‘‘M&E Annex’’) 

generally describes the components of 

the Monitoring and Evaluation Plan 

(‘‘M&E Plan’’) for the Program. The 

actual content and form of the M&E Plan 

will be agreed to by MCC and the 

Government, and may be modified from 

time to time without requiring an 

amendment to this Annex III. 

1. Overview 

MCC and the Government will 

formulate, agree to and the Government 

will implement, or cause to be 

implemented, an M&E Plan that 

specifies (a) how progress toward the 

Compact Goal, Program Objective and 

Project Objectives will be monitored, 

(‘‘Monitoring Component’’), (b) a 

process and timeline for the monitoring 

of planned, ongoing, or completed 

Project Activities to determine their 

efficiency and effectiveness, and (c) a 

methodology for assessment and 

rigorous evaluation of the outcomes and 

impact of the Program (‘‘Evaluation 

Component’’). Information regarding the 

Program’s performance, including the 

M&E Plan, and any amendments or 

modifications thereto, as well as 

progress and other reports, will be made 

publicly available on the Web site of 

MCA-Senegal and elsewhere. 

2. Program Logic 

The M&E Plan will be built on a logic 

model which illustrates how the 

Program, Projects and Activities 

contribute to poverty reduction and 

economic growth in Senegal. In sum, 

the goal of the Program is to contribute 

to economic growth and poverty 

reduction by: (a) increasing household 

and firm incomes through increased 

irrigated agricultural production and 

productivity on irrigated perimeters; 

and (b) increasing household and firm 

access to domestic and international 

markets through improved road quality 

and reduced travel times and costs. 

3. Monitoring Component 

To monitor progress toward the 

achievement of the impact and 

outcomes, the Monitoring Component of 

the M&E Plan will identify (a) the 

Indicators (as defined below), (b) the 

definitions of the Indicators, (c) the 

sources and methods for data collection, 

(d) the frequency for data collection, (e) 

the party or parties responsible, and (f) 

the timeline for reporting on each 

Indicator to MCC. 

Further, the Monitoring Component 

will track changes in the selected 

Indicators for measuring progress 

towards the achievement of the 

objectives during the Compact Term. 

Before the initiation of implementation 

activities for each Project, MCA-Senegal 

will collect baseline data on the selected 

Indicators or verify already collected 

baseline data. 

(a) Indicators. The M&E Plan will 

measure the results of the Program using 

quantitative, objective and reliable data 

(‘‘Indicators’’). Each Indicator will have 

benchmarks that specify the expected 

value and the expected time by which 

that result will be achieved (‘‘Target’’). 

The M&E Plan will be based on a logical 

framework approach that classifies 

Indicators as goal, outcome, output, and 

process milestones. The Compact Goal 

Indicators (‘‘Goal Indicators’’) will 

measure the general contribution of the 

Projects to the national economic 

growth and poverty reduction. Second, 

the Project Objective and outcome 

Indicators (‘‘Project Objective and 

Outcome Indicators’’) will measure the 

final result of each Project. Third, 

output Indicators and process 

milestones (‘‘Activity Indicators’’) will 

measure the early and intermediate 

results of the Project Activities. For each 

Project Objective and Outcome Indicator 

and each Activity Indicator, the M&E 

Plan will define a strategy for obtaining 

and verifying the value of such Indicator 

prior to undertaking any activity that 

affects the value of such Indicator (such 

value, a ‘‘Baseline’’). All Indicators will 

be disaggregated by gender, income 

level and age, and beneficiary types to 

the extent practicable. Subject to prior 

written approval from MCC, MCASenegal may add Indicators or refine the 


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2Note: some of the beneficiaries of the RN2 will 

overlap with those of the Irrigation and Water 

Resources Management Project. 

definitions and Targets of existing 

Indicators. 

(i) Goal. The M&E Plan will contain 

the Goal Indicators listed below 

specifying the definition, baseline, and 

end of Compact Target for each. The 

economic analysis estimates that: 

• Over a 20-year period, the Irrigation 

and Water Resources Management 

Project is expected to contribute to an 

average increase in net revenue of 35% 

among beneficiaries. 

• Over a 20-year period, benefits of 

the RN2 Road Activity are expected to 

be comparable to an average increase of 

13 percent of annual consumption 

among the catchment area population (5 

kilometers on either side of the road).2

• Over a 20-year period, benefits of 

the RN6 Road Activity are expected to 

be comparable to an average increase of 

9 percent of annual consumption among 

the catchment area population (5 

kilometers on either side of the road). 

(ii) Project Objective and Outcome 

Indicators and Activity Indicators. The 

M&E Plan will contain Project Objective 

and Outcome Indicators, which will 

measure the two Projects and are listed 

below with their definitions, baselines 

and targets. Prior to the initiation of 

implementation of an Activity, MCC 

and MCA-Senegal will agree on a final 

set of Activity Indicators. The M&E Plan 

will contain these Indicators or will be 

amended to contain these Indicators. 

IRRIGATION AND WATER RESOURCES MANAGEMENT PROJECT OBJECTIVE AND OUTCOME INDICATORS

Irrigation and water resources 

management project Indicator Definition Baseline value 

Year 5 

target 

Project Objective: Increased irrigated 

agricultural production and productivity on newly irrigated perimeters 

in the Delta and N’Gallenka.

Volumes of irrigated rice production 

(Tons).

Total quantity of rice cultivated by 

year on the irrigated areas (irrigation and dry season).

55,000 263,000 

Agricultural cropping intensity ............. Total number of hectares cultivated by 

year/Total irrigated area.

0.95 1.50 

Area of land under irrigation (hectares).Total number of hectares of land 

using irrigation for agricultural production.

11,800 3 39,740 

Outcomes Indicator Definition Baseline 

value 

Year 5 

target 

Increased efficiency of water infrastructure for irrigated agriculture.Efficiency of irrigation infrastructure 

(m3/s).

Water flow over time in the Lampsar 

canal.

13 65 

Improved land tenure management on 

irrigated perimeters.

Percent of allocated parcels with 

‘‘titres d’affectation’’ 4.

Total numbers of parcels with land titles (i.e., ‘‘titres d’affectation’’)/total 

numbers of parcels allocated.

0 5 100% 

Percent of ‘‘titres d’affectation’’ registered at the CRs.Total numbers of registered land titles 

(i.e., ‘‘titres d’affectation’’)/total numbers of parcels allocated.

0 100% 

Percent of new land conflicts resolved Total numbers of new conflicts resolved/total numbers of new conflicts registered.0 95% 

ROADS REHABILITATION PROJECT OBJECTIVE AND OUTCOME INDICATORS

National road #2 Indicator Definition Baseline value Year 5 target 

Activity Objective: Increased 

access to domestic and 

international markets.

Average Annual Daily Traffic Total number of vehicles on 

rehabilitated road.

RichardToll-Ndioum: 

870.

RichardToll-Ndioum: 

1240. 

Transport times ..................... Travel time saved due to improved conditions on rehabilitated road.TBD 6 ........................... 50% reduction. 

Outcomes Indicator Definition Baseline value Year 5 target 

Improved road quality ............. International Roughness 

Index (proxy for vehicle operating costs).

Measurement of pavement 

roughness on rehabilitated 

road.

RichardToll-Ndioum: 

8.4.

RichardToll-Ndioum: 

2.4. 

Extended road network .......... Kms of road rehabilitated ...... Total number of kilometers of 

road rehabilitated.

0 ................................... 120 km. 

National road #6 Indicator Definition Baseline value Year 5 target 

Activity Objective: Increased 

access to domestic and 

international markets.

Average Annual Daily Traffic Total number of vehicles on 

rehabilitated road.

Ziguinchor-Tanaf: 540

Tanaf-Kolda: 820 .........

Kolda-Kounkane: 1200 

Ziguinchor-Tanaf: 

680. 

Tanaf-Kolda: 1490 

Kolda-Kounkane: 

1850. 


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3 Incremental increase of 19,490 hectares 

rehabilitated and 8,000 hectares in extension in the 

Delta region, and 440 hectares in extension in 

N’Gallenka. All hectares are expected to be 

formalized under the land tenure security activity. 

4See the Land Tenure Security Activity section 

of this document for definitions of French terms. 

5The total number of parcels to be allocated and 

registered will be determined by the land allocation 

criteria. 

6Baseline values for travel times will be available 

with final results of the ongoing studies. 

7Final value to be confirmed. 

8The economic analysis used 5 kilometers on 

either side of the road as an estimated ‘‘catchment 

area’’ of beneficiaries. 

ROADS REHABILITATION PROJECT OBJECTIVE AND OUTCOME INDICATORS—Continued 

National road #2 Indicator Definition Baseline value Year 5 target 

Transport times ..................... Travel time saved due to improved conditions on rehabilitated road.TBD ............................. 50% reduction. 

Outcomes Indicator Definition Baseline value Year 5 target 

Improved road quality ............. International Roughness 

Index (IRI) (proxy for vehicle operating costs).

Measurement of pavement 

roughness on rehabilitated 

road.

15 ................................. 2.5. 

Extended road network .......... Kms of road rehabilitated ...... Total number of kilometers of 

road rehabilitated.

0 ................................... 260 km 7. 

(b) Data Collectionand Reporting. The 

M&E Plan will establish guidelines for 

data collection and reporting, and 

identify the responsible parties. 

Compliance with data collection and 

reporting timelines will be conditions 

for Disbursements for the relevant 

Project Activities as set forth in the 

Program Implementation Agreement. 

The M&E Plan will specify the data 

collection methodologies, procedures, 

and analysis required for reporting on 

results at all levels. The M&E Plan will 

describe any interim MCC approvals for 

data collection, analysis, and reporting 

plans. 

(c) Data Quality Reviews. As 

determined in the M&E Plan or as 

otherwise requested by MCC, the quality 

of the data gathered through the M&E 

Plan will be reviewed to ensure that 

data reported are as valid, reliable, and 

timely as resources will allow. The 

objective of any data quality review will 

be to verify the quality and the 

consistency of performance data across 

different implementation units and 

reporting institutions. Such data quality 

reviews also will serve to identify where 

those levels of quality are not possible, 

given the realities of data collection. 

(d) Management Information System. 

The M&E Plan will describe the 

information system that will be used to 

collect data, store, process and deliver 

information to relevant stakeholders in 

such a way that the Program 

information collected and verified 

pursuant to the M&E Plan is at all times 

accessible and useful to those who wish 

to use it. The system development will 

take into consideration the requirement 

and data needs of the components of the 

Program, and will be aligned with MCC 

existing systems, other service 

providers, and ministries. 

(e) Role of MCA-Senegal. The 

monitoring and evaluation of this 

Compact spans across two discrete 

Projects and will involve a variety of 

governmental, non-governmental, and 

private sector institutions. MCA-Senegal 

holds full responsibility for 

implementation of the M&E Plan. MCASenegal will oversee all Compact-related 

monitoring and evaluation activities 

conducted for each of the Projects, 

ensuring that data from all 

implementing entities is consistent, 

accurately reported and aggregated into 

regular Compact performance reports as 

described in the M&E Plan. 

4. Evaluation Component 

The Evaluation Component of the 

M&E Plan will contain three types of 

evaluations: Impact Evaluations, Project 

Performance Evaluations, and Special 

Studies. Plans for each type of 

evaluation will be finalized before any 

Disbursement for specific Program or 

Project activities. The Evaluation 

Component of the M&E Plan will 

describe the purpose of the evaluation, 

methodology, timeline, required MCC 

approvals, and the process for collection 

and analysis of data for each evaluation. 

The results of all evaluations will be 

made publicly available in accordance 

with MCC’s guidelines for monitoring 

and evaluation plans posted from time 

to time on the MCC Web site (the ‘‘MCC 

Policy for Monitoring and Evaluation of 

Compacts and Threshold Programs’’). 

(a) Impact Evaluation. The M&E Plan 

will include a description of the 

methods to be used for impact 

evaluations and plans for integrating the 

evaluation method into Project design. 

Based on in-country consultation with 

stakeholders, the strategies outlined 

below were jointly determined as 

having the strongest potential for 

rigorous impact evaluation. The M&E 

Plan will further outline in detail these 

methodologies. Final impact evaluation 

strategies are to be jointly determined 

before the approval of the M&E Plan. 

The following is a summary of the 

potential impact evaluation 

methodologies: 

(i) Irrigation and Water Resources 

Management Project. 

An impact evaluation will be 

conducted to estimate the causal 

relationship between the project and its 

objective of increasing agricultural 

production and productivity; as well as 

its long-term goal of increasing 

household and firms’ incomes. The 

evaluation will likely use a differencein-difference methodology comparing 

three geographic zones: (1) Areas 

expected to benefit from the irrigation 

systems rehabilitation under the project, 

(2) areas that will benefit from irrigation 

systems extension, and (3) a comparison 

area that is not covered by the Compact. 

Surveys conducted in all three areas 

before and after the project will allow 

rigorous analysis to estimate the 

project’s incremental contribution to the 

targeted objectives and goals. 

(ii) Roads Rehabilitation Project. 

Similarly, a difference-in-difference 

methodology will be used to estimate 

the causal relationship between road 

rehabilitation and increased economic 

activity. Surveys will be conducted 

before and after road rehabilitation in 

two zones: (1) one area within five 

kilometers of each side of the road 8; (2) 

one area outside of the five kilometer 

corridor. Analyzing conditions among 

the two groups over two points in time 

will allow estimates of the project’s 

incremental impact. 

(b) Final Evaluation. The M&E Plan 

will make provision for Final Project 

level evaluations (‘‘Final Evaluations’’). 

With the prior written approval of MCC, 

MCA-Senegal (or MCC independently) 

will engage independent evaluators to 


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design the Final Evaluations to be 

conducted at the end of each Project. 

The Final Evaluations will review 

progress during Compact 

implementation and provide a 

qualitative context for interpreting 

monitoring data. They must at a 

minimum (i) evaluate the efficiency and 

effectiveness of the Project Activities; 

(ii) determine if and analyze the reasons 

why the Compact Goal, Program 

Objective and Project Objective(s) were 

or were not achieved; (iii) identify 

positive and negative unintended 

results of the Program; (iv) provide 

lessons learned that may be applied to 

similar projects; and (v) assess the 

likelihood that results will be sustained 

over time. 

(i) Special Studies. The M&E Plan will 

include a description of the methods to 

be used for special studies funded 

through this Compact or by MCC. Plans 

for conducting the special studies will 

be determined jointly between MCASenegal and MCC before the approval of 

the M&E Plan. The M&E Plan will 

identify and make provision for any 

other special studies, ad hoc 

evaluations, and research that may be 

needed as part of the monitoring and 

evaluating of this Compact. Either MCC 

or MCA-Senegal may request special 

studies or ad hoc evaluations of 

Projects, Project Activities, or the 

Program as a whole prior to the 

expiration of the Compact Term. When 

MCA-Senegal engages an evaluator, the 

evaluator will be externally contracted 

and independently source selected by 

MCA-Senegal. The aforementioned 

engagement will be subject to the prior 

written approval of MCC, following a 

tender in accordance with the MCC 

Program Procurement Guidelines, and 

in accordance with any relevant 

Implementation Letter or supplemental 

agreement. Contract terms must ensure 

non-biased results and the publication 

of results. 

(c) Request for Ad Hoc Evaluation or 

Special Study. If MCA-Senegal requires 

an ad hoc independent evaluation or 

special study at the request of the 

Government for any reason, including 

for the purpose of contesting an MCC 

determination with respect to a Project 

or Activity or to seek funding from other 

donors, no MCC Funding or MCASenegal resources may be applied to 

such evaluation or special study 

without MCC’s prior written approval. 

5. Other Components of the M&E Plan 

In addition to the Monitoring and 

Evaluation Components, the M&E Plan 

will include the following components 

for the Program, Projects and Project 

Activities, including, where 

appropriate, roles and responsibilities of 

the relevant parties and providers: 

(a) Costs. A detailed cost estimate for 

all components of the M&E Plan. 

(b) Assumptions and Risks. Any 

assumption or risk external to the 

Program that underlies the 

accomplishment of the Program 

Objective, Project Objectives and 

Activity outcomes. However, such 

assumptions and risks will not excuse 

any Party’s performance unless 

otherwise expressly agreed to in writing 

by the Parties. 

6. Implementation of the M&E Plan 

(a) Approval and Implementation. 

The approval and implementation of the 

M&E Plan, as amended from time to 

time, will be in accordance with this 

Annex III, the Program Implementation 

Agreement and any other relevant 

supplemental agreement, and the MCC 

Policy for Monitoring and Evaluation of 

Compacts and Threshold Programs. 

Annex IV Conditions to Disbursement 

of Compact Implementation Funding 

This Annex IV sets forth the 

conditions precedent applicable to 

Disbursements of Compact 

Implementation Funding (each a ‘‘CIF 

Disbursement’’). Capitalized terms used 

in this Annex IV and not defined in this 

Annex IV or in the Compact have the 

meanings assigned to such terms in the 

form of Program Implementation 

Agreement attached to the Compact as 

Annex VII. Upon execution of the 

Program Implementation Agreement, 

each CIF Disbursement shall be subject 

to the terms and conditions of the 

Program Implementation Agreement 

(including, without limitation, Section 

3.3 thereof). 

1. Conditions to All CIF Disbursements 

(Including the Initial CIF Disbursement) 

Each of the following conditions 

precedent must have been met to MCC’s 

satisfaction prior to each CIF 

Disbursement: 

(a) Delivery by MFG–MCA (or, upon 

its establishment, MCA-Senegal) to MCC 

of a complete, correct, and fully 

executed Disbursement Request for the 

relevant Disbursement Period, together 

with any applicable Periodic Reports 

covering such Disbursement Period, in 

each case in form and substance 

satisfactory to MCC and submitted in 

accordance with the Reporting 

Guidelines. Each Disbursement Request 

shall include the following reference 

number: GR09SEN09010. 

(b) MCC is satisfied, in its sole 

discretion, that: (i) Each activity being 

funded by such CIF Disbursement is 

necessary, advisable, or is otherwise 

consistent with the goal of facilitating 

the implementation of the Compact; (ii) 

there has been no violation of, and the 

use of the requested funds for the 

purposes requested will not violate, the 

limitations on the use or treatment of (x) 

MCC Funding, as set forth in this 

Compact, including under Section 2.7, 

or (y) Compact Implementation 

Funding; (iii) no material default or 

breach of any covenant, obligation, or 

responsibility of the Government or 

MFG–MCA (or, upon its establishment, 

MCA-Senegal) under this Compact, the 

Program Implementation Agreement, 

any supplemental agreement, or any 

Program Guidelines has occurred or is 

continuing; and (iv) any Taxes paid 

with MCC Funding through the date 

ninety (90) days prior to the start of the 

applicable Disbursement Period have 

been reimbursed by the Government in 

full in accordance with this Compact. 

(c) MCC is satisfied, in its sole 

discretion, that MFG–MCA (or, upon its 

establishment, MCA-Senegal) is 

sufficiently mobilized in order for 

MFG–MCA (or MCA-Senegal, as the 

case may be) to be able to fully perform 

its obligations and act on behalf of the 

Government. 

(d) MFG–MCA (or, upon its 

establishment, MCA-Senegal), shall 

have adopted a Procurement Plan, in 

form and substance satisfactory to MCC, 

with respect to the Compact 

Implementation Funding, and such 

Procurement Plan remains in full force 

and effect. 

(e) MFG–MCA (or, upon its 

establishment, MCA-Senegal), shall 

have adopted an Fiscal Accountability 

Plan, in form and substance satisfactory 

to MCC, and such Fiscal Accountability 

Plan remains in full force and effect. 

2. Conditions to Specific CIF 

Disbursements (and Each CIF 

Disbursement Thereafter) 

Each of the following conditions 

precedent must have been met to MCC’s 

satisfaction prior to the applicable CIF 

Disbursement: 

(a) Prior to any CIF Disbursement on 

or after January 1, 2010, MCA-Senegal 

shall be fully formed and in good 

standing under the laws of Senegal. 

(b) Prior to any CIF Disbursement on 

or after January 1, 2010, the Fiscal Agent 

shall have been duly appointed, and 

MCA-Senegal shall have duly executed 

the Fiscal Agent Agreement, and such 

agreement shall be in full force and 

effect without modification, alteration, 

rescission, or suspension of any kind, 

unless otherwise agreed by MCC, and no 

material default has occurred or is 

continuing thereunder. 


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(c) Prior to any CIF Disbursement on 

or after January 1, 2010, the 

Procurement Agent shall have been duly 

appointed, and MCA-Senegal shall have 

duly executed the Procurement Agent 

Agreement, and such agreement shall be 

in full force and effect without 

modification, alteration, rescission, or 

suspension of any kind, unless 

otherwise agreed by MCC, and no 

material default has occurred or is 

continuing thereunder. 

(d) Prior to any CIF Disbursement on 

or after January 1, 2010, the Bank shall 

have been duly appointed, and MCASenegal and the Fiscal Agent shall have 

duly executed the Bank Agreement, and 

such agreement shall be in full force and 

effect without modification, alteration, 

rescission, or suspension of any kind, 

unless otherwise agreed by MCC, and no 

material default has occurred or is 

continuing thereunder. 

(e) Prior to the deposit of any CIF 

Disbursement into any Permitted 

Account in accordance with an 

approved Disbursement Request, MCC 

shall have received satisfactory 

evidence of the establishment of such 

Permitted Account. 

Annex V Definitions 

AATR has the meaning provided in 

paragraph 1(e) of Part B of Annex I. 

Additional Representative has the 

meaning provided in Section 4.2. 

Activity has the meaning provided in 

Part B of Annex I. 

Activity Indicators has the meaning 

provided in paragraph 3(a) of Annex III. 

AE has the meaning provided in 

Schedule A of Annex VI. 

AFD has the meaning provided in 

paragraph 2(d) of Part B of Annex I. 

Approval Documents has the meaning 

provided in Schedule B of Annex VI. 

Audit Guidelines has the meaning 

provided in Section 3.8(a). 

Baseline has the meaning provided in 

paragraph 3(a) of Annex III. 

Bilateral Agreement has the meaning 

provided in Schedule A of Annex VI. 

Board has the meaning provided in 

paragraph 3(c) of Part B of Annex I. 

Casamance has the meaning provided 

in paragraph 1 of Part A of Annex I. 

CCs has the meaning provided in 

paragraph 2(a)(iv) of Part B of Annex I. 

Cellule has the meaning provided in 

paragraph 3(d) of Part B of Annex I. 

CIF Disbursement has the meaning 

provided in Annex IV. 

CDI has the meaning provided in 

paragraph 2(a)(iv)(2) of Part B of Annex 

I. 

Compact has the meaning provided in 

the Preamble. 

Compact Contract has the meaning 

provided in Schedule C of Annex VI. 

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 Section 3.7(c). 

CRs has the meaning provided in 

paragraph 2(a)(iv) of Part B of Annex I. 

DD has the meaning provided in 

Schedule B of Annex VI. 

Delta has the meaning provided in 

paragraph 2(a) of Part B of Annex I. 

DGD has the meaning provided in 

Schedule B of Annex VI. 

DGID has the meaning provided in 

Schedule A of Annex VI. 

Disbursement has the meaning 

provided in Section 2.4. 

Establishment Decree has the meaning 

provided in paragraph 3(c) of Part B of 

Annex I. 

EU has the meaning provided in 

paragraph 1(d) of Part B of Annex I. 

Evaluation Component has the 

meaning provided in paragraph 1 of 

Annex III. 

Excess CIF Amount has the meaning 

provided in Section 2.2(d). 

Exempt Person has the meaning 

provided in Schedule D of Annex VI. 

Exempt Vendor has the meaning 

provided in Schedule C of Annex VI. 

Fuel Approval Documents has the 

meaning provided in Schedule E of 

Annex VI. 

Final Evaluations has the meaning 

provided in paragraph 4(b) of Annex III. 

Fiscal Agent has the meaning 

provided in paragraph 3(f) of Part B of 

Annex I. 

Goal Indicators has the meaning 

provided in paragraph 3(a) of Annex III. 

Government has the meaning 

provided in the Preamble. 

Governance Guidelines has the 

meaning provided in paragraph 3(c) of 

Part B of Annex I. 

Implementation Letter has the 

meaning provided in Section 3.5. 

Implementing Entity has the meaning 

provided paragraph 3(e) of Part B of 

Annex I. 

Implementing Entity Agreement has 

the meaning provided in paragraph 3(e) 

of Part B of Annex I. 

Indicators has the meaning provided 

in paragraph 3(a) of Annex III. 

Inspector General has the meaning 

provided in Section 3.8(a). 

Irrigation Maintenance Action Plan 

has the meaning provided in paragraph 

2(e) of Part B of Annex I. 

Management Unit has the meaning 

provided in paragraph 3(c) of Part B of 

Annex I. 

M&E Annex has the meaning 

provided in Annex III. 

M&E Plan has the meaning provided 

in Annex III. 

MCA Act has the meaning provided in 

Section 2.2(a). 

MCA-Senegal has the meaning 

provided in Section 3.2(b). 

MCA-Senegal Bylaws has the meaning 

provided in paragraph 3(c) of Part B of 

Annex I. 

MCC has the meaning provided in the 

Preamble. 

MCC Environmental Guidelines has 

the meaning provided in Section 2.7(c). 

MCC Funding has the meaning 

provided in Section 2.3. 

MCC Gender Policy has the meaning 

provided in paragraph 3 of Part A of 

Annex I. 

MCC Policy for Monitoring and 

Evaluation of Compacts and Threshold 

Programs has the meaning provided for 

in paragraph 4 of Annex III. 

MCC Program Procurement 

Guidelines has the meaning provided in 

Section 3.6. 

MCC Resettlement Guidance has the 

meaning provided in paragraph 3 of Part 

A of Annex I. 

MCC Web site has the meaning 

provided in Section 2.7. 

MFG–MCA has the meaning provided 

in Section 3.2(b). 

MoEF has the meaning provided in 

Schedule A of Annex VI. 

Monitoring Component has the 

meaning provided in paragraph 1 of 

Annex III. 

Multi-Year Financial Plan Summary 

has the meaning provided in paragraph 

1 of Annex II. 

NGOs has the meaning provided in 

paragraph 1 of Part A of Annex I. 

OMB has the meaning provided in 

Section 3.8(b). 

OP 4.12 has the meaning provided in 

paragraph 3 of Part A of Annex I. 

PACR has the meaning provided in 

paragraph 2(d) of Part B of Annex I. 

Party and Parties has the meaning 

provided in the Preamble. 

PDMAS has the meaning provided in 

paragraph 2(d) of Part B of Annex I. 

Permitted Account has the meaning 

provided in Section 2.4. 

POAS has the meaning provided in 

paragraph 2(a)(iv)(2) of Part B of Annex 

I. 

Podor has the meaning provided in 

paragraph 2(a) of Part B of Annex I. 

Principal Representative has the 

meaning provided in Section 4.2. 

Procurement Agent has the meaning 

provided in paragraph 3(g) of Part B of 

Annex I. 

Program has the meaning provided in 

the Preamble. 

Program Funding has the meaning 

provided in Section 2.1. 


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9To the extent that VAT is imposed at the port 

of entry (‘‘bureau d’entre ́e’’) on imported goods, 

together with custom duties, the applicable tax 

exemption procedures are described in Schedule B 

below. 

10For efficiency, the request should reflect the 

amount of goods needed for several months. 

11For efficiency, the request should reflect the 

amount of goods needed for several months. 

12The TE is actually completed by MCASenegal’s ‘‘Commissionnaire Agre ́e ́ en Douane’’ 

with the appropriate customs codes for each item 

to be imported. 

Program Guidelines means 

collectively the Audit Guidelines, the 

MCC Environmental Guidelines, the 

Governance Guidelines, the MCC 

Program Procurement Guidelines, the 

Reporting Guidelines, the MCC Policy 

for Monitoring and Evaluation of 

Compacts and Threshold Programs, and 

any other guidelines, policies or 

guidance papers from time to time 

published on the MCC Web site. 

Program Implementation Agreement 

or PIA has the meaning provided in 

Section 3.1. 

Program Objective has the meaning 

provided in Section 1.2. 

Project(s) has the meaning provided 

in Section 6.2(b). 

Project Objective(s) has the meaning 

provided in Section 1.3. 

Project Objective and Outcome 

Indicators has the meaning provided in 

paragraph 3(a) of Annex III. 

Provider has the meaning provided in 

Section 3.7(c). 

RN2 has the meaning provided in 

paragraph 1(a) of Part B of Annex I. 

RN6 has the meaning provided in 

paragraph 1(a) of Part B of Annex I. 

Road Fund has the meaning provided 

in paragraph 1(e) of Part B of Annex I. 

SAED has the meaning provided in 

paragraph 2(a) of Part B of Annex I. 

Senegal has the meaning provided in 

the Preamble. 

Stakeholder’s Committee has the 

meaning provided in paragraph 3(c) of 

Part B of Annex I. 

Target has the meaning provided in 

paragraph 3(a) of Annex III. 

Taxes has the meaning provided in 

Section 2.8(a). 

TE has the meaning provided in 

Schedule B of Annex VI. 

Temporary Admission Request has 

the meaning provided in Schedule B of 

Annex VI. 

United States Dollars means the 

lawful currency of the United States of 

America. 

US$ means United States Dollars. 

USAID has the meaning provided in 

paragraph 1(d) of Part B of Annex I. 

USDA has the meaning provided in 

paragraph 2(d) of Part B of Annex I. 

Valley has the meaning provided in 

paragraph 1 of Part A of Annex I. 

Vendor has the meaning provided in 

Schedule A of Annex VI. 

Annex VI Specific Tax Exemption 

Mechanisms 

Schedule A Value Added Tax (VAT) 9

Legal Basis for Exemption 

1. The Compact. 

2. The Agreement dated May 13, 

1961, by and between the United States 

Government and the Government 

relating to Economic, Financial and 

Technical Assistance, which entered 

into force on May 13, 1961 (the 

‘‘Bilateral Agreement’’). 

3. Applicable provisions of the Code 

Ge ́ne ́ral des Impoˆts. 

4. Applicable textes d’application. 

Beneficiaries of Exemption 

MFG–MCA (to be replaced by MCASenegal, both of which shall be referred 

to herein collectively as ‘‘MCASenegal’’), each Implementing Entity 

and any individuals or legal persons 

providing services, goods or works in 

connection with the Compact Program 

(each a ‘‘Vendor’’). 

Procedures 

A. Local Purchases by MCA-Senegal 

• MCA-Senegal requests a final 

invoice free of VAT (‘‘hors TVA’’) for 

the services, goods or works to be 

purchased from the applicable 

supplier.10

• MCA-Senegal submits the final 

invoice to the ‘‘Direction Generale des 

Impots et Domaines’’ (‘‘DGID’’) of the 

Ministry of Economy and Finance 

(‘‘MoEF’’), requesting exoneration from 

VAT, together with (i) a reference to the 

registered Compact or (ii) a copy of the 

instrument of Compact ratification and 

the applicable Compact tax provisions. 

For the avoidance of doubt, MCASenegal may also submit the final 

invoice together with a copy of its 

‘‘Attestation d’Exoneration’’ (‘‘AE’’) and 

a copy of the Compact. 

• Within forty-eight (48) hours, DGID 

stamps the final invoice and returns the 

same to MCA-Senegal and the 

purchase(s) can be made by MCASenegal free of VAT (‘‘hors TVA’’). 

B. Local Purchases by Any 

Implementing Entity or Any Vendor 

• The Implementing Entity/Vendor 

requests a final invoice free of VAT 

(‘‘hors TVA’’) for the goods or services 

to be purchased from the applicable 

supplier.11

• The Implementing Entity/Vendor 

submits the final invoice to MCASenegal for approval and onward 

submission to DGID. 

• MCA-Senegal submits a request to 

DGID with the final invoice, requesting 

exoneration from VAT, together with (i) 

a reference to the registered Compact or 

(ii) a copy of the instrument of Compact 

ratification and the applicable Compact 

tax provisions. For the avoidance of 

doubt, MCA-Senegal may also submit 

the final invoice together with a copy of 

its AE and a copy of the Compact. 

• Within forty-eight (48) hours, DGID 

stamps the final invoice and returns the 

same to MCA-Senegal. 

• MCA-Senegal delivers the stamped, 

final invoice to the Implementing 

Entity/Vendor as soon as practicable 

and the purchase(s) can be made by the 

Implementing Entity/Vendor free of 

VAT (‘‘hors TVA’’). 

Schedule B Customs Duties 

Legal Basis for Exemption 

1. The Compact. 

2. The Bilateral Agreement. 

3. Applicable provisions of the Code 

des Douanes. 

4. Applicable textes d’application. 

Beneficiaries of the Exemption 

MCA-Senegal, each Implementing 

Entity and any Vendor importing goods 

in connection with the Compact 

Program. 

Procedures 

A. Purchases of Imported Goods by 

MCA-Senegal 

• MCA-Senegal obtains a pro forma 

invoice free of all customs duties, 

including but not limited to VAT and 

any other applicable Taxes (‘‘hors 

taxes—hors douane’’), for the specific 

items being imported for Compactrelated work, and completes a ‘‘Titre 

d’Exoneration’’ (‘‘TE’’), which can be 

obtained from the Chamber of 

Commerce.12

• MCA-Senegal properly signs the TE 

and submits a request to the ‘‘Direction 

Generale des Douanes’’ (‘‘DGD’’ of the 

MoEF requesting the exoneration of all 

customs duties, including but not 

limited to VAT and any other applicable 

Taxes (‘‘hors taxes—hors douane’’), on 

the goods to be imported. The TE and 

seven (7) copies of the pro forma invoice 

are attached to the request. 

• Within forty-eight (48) hours, the 

DGD stamps the TE, and the pro forma 

invoices, and returns all of the 

documents (collectively, the ‘‘Approval 

Documents’’) to MCA-Senegal. 

• MCA-Senegal provides the 

Approval Documents to its 

‘‘Commissionnaire Agre ́e ́ en Douane’’ to 

prepare a ‘‘Declaration de Douane’’ 

(‘‘DD’’), which can be obtained at the 


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13The TE is actually completed by the 

Implementing Entity/Vendor’s ‘‘Commissionnaire 

Agre ́e ́ en Douane’’ with the appropriate customs 

codes for each item to be imported. 

14The Government permits the temporary, tax 

exempt admission of equipment, including but not 

limited to automobiles and household goods, if 

such equipment will be re-exported upon the earlier 

of (i) the completion of the applicable contract or 

(ii) the expiration or termination of the Compact; 

provided that such equipment, including but not 

limited to automobiles and household goods, is 

used solely for Compact-related work. If the 

equipment, including but not limited to 

automobiles and household goods, is later sold in 

Senegal or is used in Senegal in connection with 

work that is not related to the Compact Program, 

then the pro rata share of the applicable Taxes must 

be paid at such time in accordance with the laws 

of Senegal. 

port of entry. The ‘‘Commissionnaire 

Agre ́e ́ en Douane’’ files the DD, together 

with the Approval Documents, with the 

‘‘Bureau Des Douanes d’Importation.’’ 

• Within seventy-two (72) hours, the 

imported goods can be retrieved free of 

all customs duties, including but not 

limited to VAT and any other applicable 

Taxes (‘‘hors taxes—hors douane’’). 

B. Purchases of Imported Goods by Any 

Implementing Entity or Any Vendor 

• The Implementing Entity/Vendor 

submits a request to MCA-Senegal, 

which shall include (i) seven (7) copies 

of a pro forma invoice free of all 

customs duties, including but not 

limited to VAT and any other applicable 

Taxes (‘‘hors taxes—hors douane’’), for 

the specific items being imported for 

Compact-related work and (ii) a 

completed TE.13

• MCA-Senegal, on the Implementing 

Entity/Vendor’s behalf, submits a 

request to DGD requesting the 

exoneration of all customs duties, 

including but not limited to VAT and 

any other applicable Taxes (‘‘hors 

taxes—hors douane’’), on the goods to 

be imported. The TE and the pro forma 

invoices are attached to the request. 

• Within forty-eight (48) hours, the 

DGD stamps the Approval Documents 

and returns the Approval Documents to 

MCA-Senegal. 

• MCA-Senegal provides the stamped 

Approval Documents to the 

Implementing Entity/Vendor as soon as 

practicable. 

• The Implementing Entity/Vendor 

provides the Approval Documents to its 

‘‘Commissionnaire Agre ́e ́ en Douane’’ to 

prepare a DD, which can be obtained at 

the port of entry. The ‘‘Commissionnaire 

Agre ́e ́ en Douane’’ files the DD, together 

with the Approval Documents, with the 

‘‘Bureau Des Douanes d’Importation.’’ 

• Within seventy-two (72) hours, the 

imported goods can be retrieved free of 

all customs duties, including but not 

limited to VAT and any other applicable 

Taxes (‘‘hors taxes—hors douane’’). 

C. Temporary Admission of Equipment, 

Including but Not Limited to 

Automobiles and Household Goods, by 

Vendors 14

• The Vender obtains a pro forma 

invoice free of all customs duties, 

including but not limited to VAT and 

any other applicable Taxes (‘‘hors 

taxes—hors douane’’), for the 

equipment, including but not limited to 

automobiles and household goods, to be 

imported and prepares a ‘‘temporary 

admission of equipment’’ request (a 

‘‘Temporary Admission Request’’). 

• MCA-Senegal, on the Vendor’s 

behalf, submits the Temporary 

Admission Request and seven (7) copies 

of the pro forma invoice to the Director 

of Studies and Legislation within DGD 

as soon as practicable. 

• Within seventy-two (72) hours, 

DGD stamps the Temporary Admission 

Request and the pro forma invoices, 

which permits the applicable equipment 

to be imported free of all customs 

duties, including but not limited to VAT 

and any other applicable Taxes (‘‘hors 

taxes—hors douane’’), for a period of 

twelve (12) months. 

• MCA-Senegal provides the stamped 

Temporary Admission Request to the 

Vendor as soon as practicable. 

• The Vendor, through its 

‘‘Commissionnaire Agre ́e ́ en Douane,’’ 

completes the procedures for the 

importation of goods set forth in Section 

B of this Schedule B. 

• Thereafter, COTECNA, the control 

structure approved by the Government 

(or any successor entity thereto), must 

validate the purchase price of the 

equipment, as indicated on the pro 

forma invoice. COTECNA will identify 

the origin of the equipment, obtain the 

actual price of such equipment, and 

issue a certificate of value, confirming 

or denying the price set forth in the pro 

forma invoice. If the purchase price is 

denied, COTECNA Se ́ne ́gal saisira 

COTECNA du pays d’origine du 

mate ́riel a` importer qui contactera a` son 

tour le fournisseur dudit mate ́riel pour 

avoir son prix re ́eUne fois ce prix 

obtenu, COTECNA Se ́ne ́gal fournit alors 

l’avis de notification qui confirme ou 

infirme le prix de ́clare ́; et dans ce cas, 

un redressement peut eˆtre effectue ́ pour 

porter la vraie valeur dans la de ́claration 

de douane en admiDGD will correct the 

purchase price as set forth in the 

Temporary Admission Request and in 

its internal records. The time required 

for COTECNA to validate the purchase 

price of the equipment varies, but in any 

case shall not delay the time required 

for DGD to stamp the Temporary 

Admission Request and the pro forma 

invoice. 

• The stamped Temporary Admission 

Request also exempts the applicable 

equipment from any fees and/or charges 

associated with the ‘‘service des mines,’’ 

including without limitation any 

registration, sticker and/or license fees. 

• The Temporary Admission Request 

must be renewed every twelve (12) 

months until the earlier of (i) the 

completion of the applicable agreement 

or contract, (ii) the end of the work 

related to the Compact Program and/or 

(iii) the expiration or termination of the 

Compact. 

• If the duration of the work related 

to the Compact Program exceeds twelve 

(12) months, the Vendor shall submit 

two requests to MCA-Senegal (for 

onward submission to the Director of 

Studies and Legislation within the DGD) 

prior to the expiration of original 

Temporary Admission Request: 

Æ A request for exemption from any 

Taxes payable on the consumption of 

equipment previously admitted by the 

DGD; and 

Æ A request for renewal of the 

Temporary Admission Request. 

• Upon the earlier of (i) the 

completion of the applicable agreement 

or contract, (ii) the end of the work 

related to the Compact Program and/or 

(iii) the expiration or termination of the 

Compact, the equipment must be reexported or placed in a bonded 

warehouse. DGD must provide prior 

authorization for the equipment to be 

released for consumption in Senegal, 

and the pro rata share of any applicable 

Taxes must be paid at such time in 

accordance with the laws of Senegal. 

Schedule C Corporate Income Tax 

Legal Basis for Exemption 

1. The Compact. 

2. The Bilateral Agreement. 

3. Applicable provisions of the Code 

Ge ́ne ́ral des Impoˆts. 

4. Applicable textes d’application. 

Beneficiaries 

All Vendors (including companies or 

other legal persons), other than Vendors 

formed under the laws of Senegal (each 

an ‘‘Exempt Vendor’’); provided that in 

determining if a Vendor has been 

formed under the laws of Senegal for the 

purposes of this Schedule C, the status 

of such Vendor shall be based on its 

status as of the time it is awarded or 

executes a Compact-related agreement 

or contract, and such initial 

determination shall not change 

regardless of: (i) The type of agreement 

or contract used to employ or engage 

such Vendor, (ii) any laws of Senegal 


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1The TE is actually completed by MCA-Senegal’s 

‘‘Commissionnaire Agre ́e ́ en Douane’’ with the 

appropriate customs code. 

2The TE is actually completed by the 

Implementing Entity/Vendor’s ‘‘Commissionnaire 

Agre ́e ́ en Douane’’ with the appropriate customs 

code. 

that purport to change such status based 

on period of contract performance or 

period of time residing and/or working 

in Senegal and/or (iii) any requirement 

under the laws of Senegal that a 

company or other legal person must 

establish a branch office in Senegal, or 

otherwise register or organize itself 

under the laws of Senegal, in order to 

provide goods, services or works in 

Senegal. 

Procedures 

• Any Exempt Vendor earning only 

Compact-related corporate income in 

Senegal in any given fiscal year shall be 

exempt from paying any applicable 

Taxes on such Compact-related 

corporate income and shall declare such 

Compact-related corporate income in its 

year-end tax filing with DGID solely for 

informational purposes. 

• Any Exempt Vendor earning 

Compact-related corporate income and 

non-Compact-related corporate income 

in any given fiscal year shall: 

Æ Submit and register each Compactrelated contract or agreement (each a 

‘‘Compact Contract’’) with DGID, 

together with a certification from MCASenegal confirming that the goods, 

services or works to be provided under 

the Compact Contract form a part of the 

Compact program. 

Æ At the end of any such fiscal year, 

the Exempt Vendor shall be permitted to 

exclude, the gross income derived from 

any Compact Contract(s) (as verified by 

the registered Compact Contract(s)) for 

the purposes of determining its 

corporate income tax liability in Senegal 

for any such fiscal year. The Exempt 

Vendor shall declare such Compactrelated gross corporate income in its 

year-end tax filing wth DGID solely for 

informational purposes. 

Æ For example, if an Exempt Vendor 

earned US$100,000 of gross corporate 

income under a Compact Contract(s) 

and an additional US$500,000 in other 

Senegal-related gross corporate income, 

the Exempt Vendor shall be permitted to 

exclude, the US$100,000 for the 

purposes of determining its corporate 

income tax liability in Senegal for such 

fiscal year. 

Schedule D Individual Income Tax 

Legal Basis for Exemption 

1. The Compact. 

2. The Bilateral Agreement. 

3. Applicable provisions of the Code 

Ge ́ne ́ral des Impoˆts. 

4. Applicable textes d’application. 

Beneficiaries 

All individuals, other than citizens 

and permanent residents of Senegal, 

working in connection with the 

Compact Program (each an ‘‘Exempt 

Person’’); provided that in determining 

if an individual is a permanent resident 

for the purposes of this Schedule D, the 

status of such individual shall be based 

on his/her status as of the time that such 

individual is awarded or executes a 

Compact-related agreement or contract, 

and such initial determination shall not 

change regardless of: (i) The type of 

contract used to employ or engage such 

individual and/or (ii) any laws of 

Senegal that purport to change such 

status based on period of contract 

performance or period of time residing 

and/or working in Senegal. 

Procedures 

• Any Exempt Person earning only 

Compact-related personal income in 

Senegal in any given fiscal year shall be 

exempt from paying any applicable 

Taxes on such Compact-related personal 

income, and shall declare such 

Compact-related personal income in its 

year-end tax filing with DGID solely for 

informational purposes. 

• Any Exempt Person earning 

Compact-related personal income and 

non-Compact-related personal income 

in any given fiscal year shall be 

permitted to exclude the gross amount 

of such Compact-related personal 

income for the purposes of determining 

his/her personal income tax liability in 

Senegal for any such fiscal year. The 

Exempt Person shall declare such 

Compact-related gross personal income 

in its year-end tax filing with DGID 

solely for informational purposes. 

Schedule E Fuel Tax 

Legal Basis for Exemption 

1. The Compact. 

2. The Bilateral Agreement. 

3. Applicable provisions of the Code 

Ge ́ne ́ral des Impoˆts. 

4. Applicable provisions of the Code 

des Douanes. 

5. Applicable textes d’application. 

Beneficiaries 

Any fuel purchased for use 

exclusively in connection with the 

Compact Program. 

Procedures 

A. Purchases of Fuel by MCA-Senegal 

Through Gas Coupons 

• MCA-Senegal obtains a pro forma 

invoice from a Senegal-based oil 

company for a particular quantity of fuel 

free of all of customs duties, including 

but not limited to VAT, the ‘‘tax 

speciale sur hydrocarbons’’ and any 

other applicable Taxes (‘‘hors taxes— 

hors douane’’), and completes a TE, 

which can be obtained from the 

Chamber of Commerce.1

• MCA-Senegal properly signs the TE 

and submits a request to DGD requesting 

the exoneration of all customs duties, 

including but not limited to VAT, the 

‘‘tax speciale sur hydrocarbons’’ and 

any other applicable Taxes (‘‘hors 

taxes—hors douane’’), on the fuel to be 

imported. The TE and seven (7) copies 

of the pro forma invoice are attached to 

the request. 

• Within seventy-two (72) hours, 

DGD stamps the TE and the pro forma 

invoices (collectively, the ‘‘Fuel 

Approval Documents’’) and returns the 

same to MCA-Senegal. 

• Thereafter, MCA-Senegal submits 

the Fuel Approval Documents to DGID 

requesting the exoneration of any 

additional Taxes. 

• Within seventy-two (72) hours, 

DGID stamps the Fuel Approval 

Documents and returns the same to 

MCA-Senegal. 

• The stamped Fuel Approval 

Documents shall entitle MCA-Senegal to 

purchase free from customs duties, 

including but not limited to VAT, the 

‘‘tax speciale sur hydrocarbons’’ and 

any other applicable Taxes (‘‘hors 

taxes—hors douane’’), for the price set 

forth in the pro forma invoice, gas 

coupons from the Senegal-based oil 

company equal to, in the aggregate, the 

quantity of fuel represented on the pro 

forma invoice. 

• Subject to the specific terms of the 

arrangement with the Senegal-based oil 

company, the gas coupons can be 

redeemed at the oil company’s various 

gas stations in Senegal. Each coupon 

entitles the bearer to the quantity of fuel 

set forth on such coupon. 

B. Purchase of Fuel by Implementing 

Entities/Vendors Through Gas Coupons 

• The Implementing Entity/Vendor 

submits a request to MCA-Senegal, 

which shall include (i) seven (7) copies 

of a pro forma invoice from a Senegalbased oil company for a particular 

quantity of fuel free of all of customs 

duties, including VAT, the ‘‘tax speciale 

sur hydrocarbons’’ and any other 

applicable Taxes (‘‘hors taxes—hors 

douane’’), and (ii) a completed TE.2

• MCA-Senegal, on the Implementing 

Entity/Vendor’s behalf, submits a 

request to DGD requesting the 

exoneration of all customs, including 

VAT, the ‘‘tax speciale sur 


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3The TE is actually completed by MCA-Senegal’s 

‘‘Commissionnaire Agre ́e ́ en Douane’’ with the 

appropriate customs code. 

4The TE is actually completed by the 

Implementing Entity/Vendor’s ‘‘Commissionnaire 

Agre ́e ́ en Douane’’ with the appropriate customs 

code. 

hydrocarbons’’ and any other applicable 

Taxes (‘‘hors taxes—hors douane’’), on 

the fuel to be imported. The TE and pro 

forma invoices are attached to the 

request. 

• Within seventy-two (72) hours, 

DGD stamps the Fuel Approval 

Documents and returns the same to 

MCA-Senegal. 

• Thereafter, MCA-Senegal submits 

the Fuel Approval Documents to DGID 

requesting the exoneration of any 

additional Taxes. 

• Within seventy-two (72) hours, 

DGID stamps the Fuel Approval 

Documents and returns the same to 

MCA-Senegal. 

• MCA-Senegal provides the stamped 

Fuel Approval Documents to the 

Implementing Entity/Vendor as soon as 

practicable. 

• The stamped Fuel Approval 

Documents shall entitle the 

Implementing Entity/Vendor to 

purchase free from customs duties, 

including but not limited to VAT, the 

‘‘tax speciale sur hydrocarbons’’ and 

any other applicable Taxes (‘‘hors 

taxes—hors douane’’), for the price set 

forth in the pro forma invoice, gas 

coupons from the Senegal-based oil 

company equal to, in the aggregate, the 

quantity of fuel represented on the pro 

forma invoice. 

• Subject to the specific terms of the 

arrangement with the Senegal-based oil 

company, the gas coupons can be 

redeemed at the oil company’s various 

gas stations in Senegal. Each coupon 

entitles the bearer to the quantity of fuel 

set forth on such coupon. 

C. Purchases of Fuel by MCA-Senegal 

To Be Imported in Bulk 

• MCA-Senegal obtains a pro forma 

invoice from an oil company for a 

particular quantity of fuel free of all of 

customs duties, including but not 

limited to VAT, the ‘‘tax speciale sur 

hydrocarbons’’ and any other applicable 

Taxes (‘‘hors taxes—hors douane’’), and 

completes a TE.3

• MCA-Senegal properly signs the TE 

and submits a request to DGD requesting 

the exoneration of all customs duties, 

including but not limited to VAT, the 

‘‘tax speciale sur hydrocarbons’’ and 

any other applicable Taxes (‘‘hors 

taxes—hors douane’’), on the fuel to be 

imported. The TE and seven (7) copies 

of the pro forma invoice are attached to 

the request. 

• Within seventy-two (72) hours, 

DGD stamps the Fuel Approval 

Documents and returns the same to 

MCA-Senegal. 

• Thereafter, MCA-Senegal submits 

the Fuel Approval Documents to DGID 

requesting the exoneration of any 

additional Taxes. 

• Within seventy-two (72) hours, 

DGID stamps the Fuel Approval 

Documents and returns the same to 

MCA-Senegal. 

• MCA-Senegal provides the Fuel 

Approval Documents to its 

‘‘Commissionnaire Agre ́e ́ en Douane’’ to 

prepare a DD, which can be obtained at 

the port of entry. The ‘‘Commissionnaire 

Agre ́e ́ en Douane’’ files the DD, together 

with the Fuel Approval Documents, 

with the ‘‘Bureau Des Douanes 

d’Importation.’’ 

• Within seventy-two (72) hours, the 

fuel can be retrieved free of all of 

customs duties, including VAT, the ‘‘tax 

speciale sur hydrocarbons’’ and any 

other applicable Taxes (‘‘hors taxes— 

hors douane’’). 

D. Purchases of Fuel by an 

Implementing Entity/Vendor To Be 

Imported in Bulk 

• The Implementing Entity/Vendor 

submits a request to MCA-Senegal, 

which shall include (i) seven (7) copies 

of a pro forma invoice from an oil 

company for a particular quantity of fuel 

free of all of customs duties, including 

VAT, the ‘‘tax speciale sur 

hydrocarbons’’ and any other applicable 

Taxes (‘‘hors taxes—hors douane’’), and 

(ii) a completed TE.4

• MCA-Senegal, on the Implementing 

Entity/Vendor’s behalf, submits a 

request to DGD requesting the 

exoneration of all customs, including 

VAT, the ‘‘tax speciale sur 

hydrocarbons’’ and any other applicable 

Taxes (‘‘hors taxes—hors douane’’), on 

the fuel to be imported. The TE and pro 

forma invoices are attached to the 

request. 

• Within seventy-two (72) hours, 

DGD stamps the Fuel Approval 

Documents and returns the same to 

MCA-Senegal. 

• Thereafter, MCA-Senegal submits 

the Fuel Approval Documents to DGID 

requesting the exoneration of any 

additional Taxes. 

• Within seventy-two (72) hours, 

DGID stamps the Fuel Approval 

Documents and returns the same to 

MCA-Senegal. 

• MCA-Senegal provides the stamped 

Fuel Approval Documents to the 

Implementing Entity/Vendor as soon as 

practicable. 

• The Implementing Entity/Vendor 

provides the Fuel Approval Documents 

to its ‘‘Commissionnaire Agre ́e ́ en 

Douane’’ to prepare a DD, which can be 

obtained at the port of entry. The 

‘‘Commissionnaire Agre ́e ́ en Douane’’ 

files the DD, together with the Fuel 

Approval Documents, with the ‘‘Bureau 

Des Douanes d’Importation.’’ 

• Within seventy-two (72) hours, the 

fuel can be retrieved free of all of 

customs duties, including VAT, the ‘‘tax 

speciale sur hydrocarbons’’ and any 

other applicable Taxes (‘‘hors taxes— 

hors douane’’). 

Schedule F Registration Tax, 

Registration Fees and Stamp Duty 

Legal Basis for Exemption 

1. The Compact. 

2. The Bilateral Agreement. 

3. Applicable provisions of the Code 

Ge ́ne ́ral des Impoˆts. 

4. Applicable textes d’application. 

Beneficiaries 

MCA-Senegal and any Vendors, for 

any act or transaction related to the 

Compact Program that is subject to 

registration fees, stamp duty and/or any 

other registration taxes. 

Procedures 

A. MCA-Senegal 

• At the time MCA-Senegal presents 

the applicable Compact Contract to 

DGID to be stamped and/or registered, 

MCA-Senegal shall present a copy of the 

Compact 

• Upon presentation of such 

documentation, DGID shall stamp and/ 

or register the applicable Compact 

Contract without charge and free from 

any applicable Taxes. 

B. Vendors 

• At the time a Vendor presents the 

applicable Compact Contract to DGID to 

be stamped and/or registered, the 

Vendor shall present a copy of the 

Compact, together with a certification 

from MCA-Senegal confirming that the 

goods, services or works to be provided 

under the Compact Contract form a part 

of the Compact program. 

• Upon presentation of such 

documentation, DGID shall stamp and/ 

or register the applicable Compact 

Contract without charge and free from 

any applicable Taxes. 

[FR Doc. E9–23328 Filed 10–20–09; 8:45 am] 

BILLING CODE 9211–03–P 


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