48648 Federal Register / Vol. 71, No. 161 / Monday, August 21, 2006 / Notices 

MILLENNIUM CHALLENGE 

CORPORATION 

[MCC FR 06–11] 

Notice of Entering Into a Compact With 

the Government of the Republic of 

Ghana 

AGENCY: Millennium Challenge 

Corporation. 

ACTION: Notice. 

SUMMARY: In accordance with section 

610(b)(2) of the Millennium Challenge 

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

D), the Millennium Challenge 

Corporation (MCC) is publishing a 

summary and the complete text of the 

Millennium Challenge Compact 

between the United States of America, 

acting through the Millennium 

Challenge Corporation, and the 

Government of the Republic of Ghana. 

Representatives of the United States 

Government and the Government of the 

Republic of Ghana executed the 

Compact documents on August 1, 2006. 

Dated: August 9, 2006. 

William G. Anderson Jr., 

Vice President & General Counsel (Acting). 

Summary of Millennium Challenge 

Compact With the Government of the 

Republic of Ghana 

I. Introduction 

The five-year, approximately $547 

million Millennium Challenge Compact 

aims at reducing poverty by raising 

farmer incomes through private sectorled, agribusiness development. To this 

end, the program focuses on increasing 

the production and productivity of highvalue cash and food staple crops in 

certain areas of Ghana, and on 

enhancing the competitiveness of 

Ghana’s export base in horticultural and 

other traditional crops. 

Agriculture is the backbone of 

Ghana’s economy; it accounts for 

approximately 40 percent of the 

country’s gross domestic product, 

directly employs approximately 60–70 

percent of the labor force, and generates 

more than 55 percent of foreign 

exchange earnings. 

The program will operate in 23 

districts in the northern region, the 

central Afram Basin region and the 

southern horticultural belt in the 

southeastern region (each region, an 

Intervention Zone), where poverty rates 

are generally above 40 percent. In fact, 

in the northern region and parts of the 

Afram Basin region, the incidence of 

poverty in the rural population is as 

high as 90 percent, with incomes below 

$2 a day. 

II. Program 

The program consists of three 

projects: (i) Agriculture Project; (ii) 

Transportation Project; and (iii) Rural 

Services Project. 

Agriculture Project 

• Farmer and Enterprise Training in 

Commercial Agriculture: Accelerate the 

development of commercial skills and 

capacity among Farmer-Based 

Organizations (FBOs) and their business 

partners, including entities adding value 

to agricultural crops such as processors 

and marketers. 

• Irrigation Development: Establish a 

limited number of retention ponds and 

weirs requested by the FBOs and FBO 

partnerships for whom access to water 

is critical to the success of their 

businesses. 

• Land Tenure Facilitation: Improve 

tenure security for existing land users 

and facilitate access to land for higher 

value agricultural crops in the 

Intervention Zones. 

• Improvement of Post Harvest 

Handling and Value Chain Services: 

Facilitate strategic investments by FBOs 

and FBO partnerships in post-harvest 

infrastructure improvements and build 

the capacity of the public sector to 

introduce and monitor compliance with 

international plant protection standards. 

• Improvement of Credit Services for 

On-Farm and Value Chain Investments: 

Augment the supply of, and access to, 

credit provided by financial institutions 

operating in the Intervention Zones, 

providing seasonal credit to FBOs 

through commercial and rural banks, as 

well as through non-traditional 

channels such as input suppliers, and 

medium-term credit through banks to 

finance capital goods such as irrigation 

and post-harvest processing and storage 

facilities. 

• Rehabilitation of Feeder Roads: 

Rehabilitate up to 950 kilometers of 

feeder roads in eight districts in the 

Intervention Zones to reduce 

transportation costs and time, to 

increase access to major domestic and 

international markets, and to facilitate 

transportation linkages from rural areas 

to social service networks (including, 

for instance, hospitals, clinics and 

schools). 

Transportation Project 

• Upgrades to Sections of N1 

Highway: Reduce the bottleneck in 

accessing the International Airport and 

the Port of Tema and support an 

expansion of Ghana’s export-directed 

horticulture base beyond current 

production, by upgrading of 14 

kilometers of the National Highway (N1 

Highway) between Tema and Accra. 

• Improvements of Trunk Roads: 

Facilitate the growth of agriculture and 

access to social services by 

rehabilitating or constructing up to 230 

kilometers of trunk roads in the Afram 

Basin region. 

• Improvements of Lake Volta Ferry 

Services: Facilitate the growth of 

agriculture in the Afram Basin region by 

improving the ferry service of Volta 

Lake Transport Company that connects 

Adawso on the southern shore to Ekye 

Amanfrom on the northern shore. 

Rural Services Project 

• Strengthening of Public Sector 

Procurement Capacity: Support the 

development of procurement 

professionals and reinforce the 

capabilities of the Government of Ghana 

(GoG) to procure goods and services, 

reinforcing execution of the overall 

program and, in particular, the 

community services. 

• Support for Community Services: 

Complement the Agriculture Project by 

funding construction and rehabilitation 

of educational facilities, construction 

and rehabilitation of water and 

sanitation facilities and electrification of 

rural areas, and by providing capacity 

building support to local government 

institutions. 

• Strengthening of Rural Financial 

Services: Automate and interconnect 

121 rural banks that are private, 

community-owned banks, and provide 

other improvements in the national 

payments systems that will draw a large 

number of people currently not served 

or under-served into the financial 

system. 

The table below outlines the 

estimated MCC contribution to the 

program by year and category over the 

term of the Compact. 

[US $ MILLION] 

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

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

Transportation Project .............................................................................. 14.8 20.1 35.4 43.1 29.7 143.1 

Rural Services Project ............................................................................. 15.6 21.1 30.5 34.1 ................ 101.3 


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[US $ MILLION]—Continued 

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

Administration of Program & Audits ........................................................ 8.8 8.8 10.0 10.3 8.7 46.6 

Monitoring & Evaluation of Program ........................................................ 3.0 3.0 3.0 3.0 3.0 15.0 

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

III. Impacts 

Under the Agriculture Project, 

approximately 51,000 farm households 

are expected to complete a 

comprehensive program in agronomic, 

organizational and business skills 

training as members of FBOs. These 

households with five members on 

average comprise over 250,000 people. 

Less directly, the improvement of the 

GoG’s Ministry of Food and 

Agriculture’s extension services and the 

agents’ work with FBOs will have 

collateral spillover benefits for a large 

number of farmers which are not 

quantified. 

The Agriculture Project will also 

support the development and improved 

operations of approximately 120 smalland medium-size enterprises providing 

services to agriculture where 

concentrations of farmer and FBO 

training will have taken place. Increased 

access to credit will finance a majority 

of these changes, including irrigation 

and post-harvest infrastructure. Its 

support to facilitate the formal 

acquisition of land will decrease the 

transaction costs associated with 

negotiating and formalizing land leases 

with traditional land custodians, 

enhancing the willingness and ability of 

farmers to invest in on-farm 

improvements. As a further measure to 

improve the local profitability of 

agriculture, the Agriculture Project will 

finance the improvement of over 950 

kilometers of feeder roads, which, along 

with the trunk roads below, will benefit 

a total population of more than 120,000 

farming households with over 600,000 

members. These activities will increase 

farm incomes from cultivation by U.S. 

$450 to about U.S. $1,000. For many of 

the poor, the compact intervention will 

represent an increase of one dollar or 

more in average income per person per 

day. 

The Transportation Project is 

expected to open new economic 

opportunities for rural households by 

lowering transportation costs, including 

travel times, for both individuals and 

cargo, to markets and social service 

delivery points. Because the N1 

Highway is a principal route from the 

south to the Port of Tema, widening the 

N1 Highway should benefit 

approximately 150,000 daily users. 

Upwards of 500,000 people in the 

surrounding area of Accra, including 

consumers and agricultural export 

producers and other users of the 

highway in the Greater Accra 

Metropolitan Area, would benefit from 

the improved operation of the N1 

Highway. Rehabilitation and upgrading 

of trunk roads and expansion of the 

ferry service in the Afram Basin region 

are expected to benefit up to 100,000 

farm households, most of which are 

among the rural poor. 

By improving both the communityservice infrastructure and enhancing 

local government capacity to provide, 

operate and maintain community 

services related to this infrastructure, 

the Rural Services Project should benefit 

several tens of thousands of households, 

decrease the incidence of disease and 

the time spent collecting water and fuel, 

and increase school attendance, which 

in turn should lead to greater 

productivity. Linking banks and their 

branches nationwide via a wide-area 

network should increase access to 

financial services for the entire 

population of Ghana, especially in 

remote rural areas, in the form of 

savings, credit or cash transfers and 

remittances. Finally, strengthening of 

public sector procurement capacity will 

improve execution of the Support for 

Community Services activity directly 

and, more generally, all citizens of 

Ghana with material improvements in 

performance of the entire public sector. 

In conclusion, as a first 

approximation, the program is 

anticipated to help directly alleviate the 

poverty of over 230,000 Ghanaians, and 

to substantially enhance the livelihoods 

and welfare of over one million 

Ghanaians in the aggregate. 

IV. Program Management 

Through an act of its Parliament, the 

GoG has created the Millennium 

Development Authority (MiDA) that 

will serve as the entity accountable for 

the implementation of the program 

under the Compact. MiDA will be 

governed by a Board of Directors 

comprised of members of GoG, the 

private sector, and the nongovernmental organization (NGO) 

community. A chief executive officer 

will manage the day-to-day activities of 

MiDA and will be supported by key 

officers in the areas of operations, 

agriculture, infrastructure, financial 

services, land, and administration. 

MiDA will remain accountable for the 

successful execution of the program 

while working through project 

implementers, whose interaction will be 

facilitated by a fiscal and procurement 

agent. As an organ of the GoG, MiDA 

will be subject to GoG audit 

requirements alongside those audit 

requirements of MCC under the 

Compact. 

V. Other Highlights 

A. Consultative Process 

Ghana’s Poverty Reduction Strategy 

process provided the basis for its 

process of consultation regarding the 

development of its proposal for the 

program. Specifically, in 2004, the GoG 

held the first of a series of Compactrelated consultations with civil society 

members of the Ghanaian Association of 

Private and Voluntary Organizations in 

Development. Subsequent consultations 

included: (i) Initial consultations with 

stakeholders at both the national and 

local levels to focus the program’s 

objectives; (ii) consultations with 

stakeholders in each district within each 

Intervention Zone throughout the design 

of the program regarding the exact type 

of interventions, proposed locations, 

arrangements for implementation, as 

well as the ownership structure for 

certain infrastructure investments; (iii) 

consultations with NGOs representing 

the environmental and social sector 

(including women and youth), local 

agribusinesses and farmers. MCC 

observed a number of the consultations, 

both local and national. The 

consultative process is ongoing and is 

expected to continue through the term 

of the Compact. 

B. GoG Commitment and Effectiveness 

The GoG is committed to assembling 

a capable team to staff MiDA. 

Recruitment is underway currently for 

the chief executive officer of MiDA and 

13 other key officers who will directly 

support the implementation of the 

program. The incumbent Minister of 

Public Sector Reform, who led the 

GoG’s team to develop the Compact, 

will become the chair of the board of 


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directors of MiDA. Other members of 

the board will come from line ministries 

directly relevant to the program, and the 

private sector and NGOs as a means to 

provide feedback on the implementation 

of the program. One advisory committee 

for each Intervention Zone will be 

formed to bring the on-the-ground 

perspective back to the MiDA. President 

Kufuor remains engaged, providing 

leadership and ensuring that MiDA will 

have the inter-ministerial cooperation 

necessary for the success of the 

program. In addition, the GoG will 

undertake to make up eventual 

shortfalls in funding, if any, necessary 

to sustain the program in such areas as 

road maintenance, community services 

recurrent costs, and environmental 

mitigation. 

C. Sustainability 

The activities under the Agriculture 

Project will create new and strengthen 

existing input suppliers, processors and 

marketers and enhance a climate that 

attracts additional outside investment in 

the agriculture sector, thus leading to its 

continued growth. The GoG has 

affirmed that it will maintain the 

rehabilitated roads in accordance with 

standards that have been agreed with 

the broad donor community and will 

increase funding commitment to the 

road sector accordingly. MCC is 

requiring from GoG that it will provide 

for the staffing, equipping, and other 

recurrent costs of new (and some 

existing) infrastructure investments. 

Selection criteria for community 

services infrastructure will also 

stipulate a minimum level of 

community contribution to investment 

and participation in upkeep of new 

facilities. Environmental and social 

sustainability of the program will be 

enhanced through oversight and 

ongoing public consultation. The Rural 

Services Project will include a capacity 

building component to reinforce 

participatory planning, procurement, 

financial management, maintenance 

planning and budgeting, operations and 

maintenance of physical infrastructure. 

MCC investments in secure land access 

will emphasize community consultation 

and resolution of disputes, important for 

durable secure tenure. 

D. Environment and Social Assessments 

According to MCC’s environmental 

guidelines, the Agriculture Project is 

classified as ‘‘Category A’’ (with the 

exception of the credit-related activity 

that is classified as a ‘‘Category D’’ and 

requires lending guidelines that 

stipulate environmental requirements). 

Specifically, potentially adverse 

environmental impacts may result from 

the irrigation retention ponds and weirs, 

the feeder roads, and large-scale 

agricultural intensification and 

conversion (e.g., deforestation, 

monoculture). The Transportation 

Project is classified as ‘‘Category A’’ due 

to potentially adverse site-specific 

impacts resulting from improvements to 

the N1 Highway and select trunk roads, 

including the acquisition of, or 

compensation for, approximately 800 

permanent and temporary structures 

(e.g., containers and kiosks) on the N1 

Highway’s right of way. Furthermore, 

there will be both induced and 

cumulative impacts on the Afram Basin 

region resulting from increased access 

provided by the trunk roads and ferries. 

The Rural Services Project is classified 

as ‘‘Category B’’ and will require 

selection criteria for provision of 

community services that take into 

account environmental and social 

impacts. 

Overall, because of the breadth and 

scope of the proposed program, strategic 

environmental assessments and baseline 

studies will be required for each 

Intervention Zone prior to initiating any 

required project-specific environmental 

impact assessments and substantial 

investment in physical infrastructure. 

Environmental management plans and 

resettlement action plans will be 

developed for all Projects as necessary. 

The environmental and social benefits 

expected from the Compact include 

enhanced livelihoods, greater access to 

social services, and more sustainable 

agricultural practices, ultimately leading 

to reduced slash and burn agriculture 

and improved soil quality. 

E. Donor Coordination 

The $547 million Compact will place 

the U.S. among the top three donors to 

Ghana. As such, donor coordination is 

particularly important to ensure that 

MCC’s investment is building upon and 

complementing the work of other 

donors. 

There are significant 

complementarities between the program 

and current donor activity in Ghana. 

The Agriculture Project, for instance, 

will build upon activities pioneered by 

U.S. Agency for International 

Development’s Trade and Investment 

Program for a Competitive Export 

Economy (TIPCEE), and those 

developed under the Agricultural 

Services Sub-Sector Investment Project 

supported by the World Bank, the UK’s 

Department for International 

Development (DfID), African 

Development Bank, the International 

Fund for Agricultural Development and 

others. TIPCEE activities are expected to 

continue during the course of the 

Compact. 

In implementing the Transportation 

Project, MCC is working alongside 

several other donors active in the sector, 

namely the World Bank, European 

Union, Danish International 

Development Agency and DfID to avoid 

duplication and to ensure policy 

coordination. 

MCC is basing its investments under 

the Rural Services Project on an existing 

Community Based Rural Development 

Project (CBRDP) financed by the World 

Bank and Agence Francaise de 

De ́veloppement. The MCC investments 

will extend the services of the program 

implementation unit developed under 

the CBRDP and the capacity building 

activities financed in the project will 

use the existing training program 

piloted by CBRDP. 

Millennium Challenge Compact 

Between the United States of America 

Acting Through the Millennium 

Challenge Corporation and the 

Government of the Republic of Ghana 

Table of Contents 

Article I. Purpose and Term 

Section 1.1 Compact Goal; Objectives 

Section 1.2 Projects 

Section 1.3 Entry into Force; Compact 

Term 

Article II. Funding and Resources 

Section 2.1 MCC Funding 

Section 2.2 Government Resources 

Section 2.3 Limitations on the Use or 

Treatment of MCC Funding 

Section 2.4 Incorporation; Notice; 

Clarification 

Section 2.5 Refunds; Violation 

Section 2.6 Bilateral Agreement 

Article III. Implementation 

Section 3.1 Implementation Framework 

Section 3.2 Government Responsibilities 

Section 3.3 Government Deliveries 

Section 3.4 Government Assurances 

Section 3.5 Implementation Letters; 

Supplemental Agreements 

Section 3.6 Procurement; Awards of 

Assistance 

Section 3.7 Policy Performance; Policy 

Reforms 

Section 3.8 Records and Information; 

Access; Audits; Reviews 

Section 3.9 Insurance; Performance 

Guarantees 

Section 3.10 Domestice Requirements 

Section 3.11 No Conflict 

Section 3.12 Reports 

Article IV. Conditions Precedent; Deliveries 

Section 4.1 Conditions Prior to the Entry 

into Force and Deliveries 

Section 4.2 Conditions Precedent to MCC 

Disbursements or Re-Disbursements 

Article V. Final Clauses 

Section 5.1 Communications 

Section 5.2 Representatives 

Section 5.3 Amendments 

Section 5.4 Termination; Suspension 

Section 5.5 Privileges and Immunities 

Section 5.6 Attachments 


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Section 5.7 Inconsistenecies 

Section 5.8 Indemnification 

Section 5.9 Headings 

Section 5.10 Interpretation 

Section 5.11 Signatures 

Section 5.12 Designation 

Section 5.13 Survival 

Section 5.14 Consultation 

Section 5.15 MCC Status 

Section 5.16 Language 

Section 5.17 Publicity; Information and 

Marking 

Exhibit A: Definitions 

Exhibit B: List of Certain Supplemental 

Agreements 

Schedule 2.1(a)(iii): Compact Implementation 

Funding 

Annex I: Program Description 

Schedule 1: Agriculture Project 

Schedule 2: Transportation Project 

Schedule 3: Rural Development Project 

Annex II: Summary of Multi-Year Financial 

Plan 

Exhibit A: Multi-Year Financial Plan 

Summary 

Annex III: Description of the M&E Plan 

Millennium Challenge Compact 

This Millennium Challenge Compact 

(the ‘‘Compact’’) is made between the 

United States of America, acting 

through the Millennium Challenge 

Corporation, a United States 

Government corporation (‘‘MCC’’) and 

the Government of the Republic of 

Ghana (the ‘‘Government’’) (referred to 

herein individually as a ‘‘Party’’ and 

collectively, the ‘‘Parties’’). A 

compendium of capitalized terms 

defined herein is included in Exhibit A 

attached hereto. 

Recitals 

Whereas, MCC, acting through its 

Board of Directors, has selected Ghana 

as eligible to present to MCC a proposal 

for the use of Millennium Challenge 

Account (‘‘MCA’’) assistance to help 

facilitate poverty reduction through 

economic growth in Ghana; 

Whereas, the Government has carried 

out a consultative process with the 

country’s private sector and civil society 

to outline the country’s priorities for the 

use of MCA assistance and developed a 

proposal, which final proposal was 

submitted to MCC on October 28, 2005 

(the ‘‘Proposal’’); 

Whereas, the Proposal focused on, 

among others, increasing farmer 

incomes through modernizing Ghana’s 

agricultural sector, together with 

investments in developing 

transportation infrastructure and rural 

institutions, all designed to dismantle 

obstacles to realizing Ghana’s 

agricultural potential as an engine of 

economic growth; 

Whereas, MCC has evaluated the 

Proposal and related documents to 

determine whether the Proposal is 

consistent with core MCA principles 

and includes projects and related 

activities that will advance the progress 

of Ghana towards achieving poverty 

reduction through economic growth; 

and 

Whereas, based on MCC’s evaluation 

of the Proposal and related documents 

and subsequent discussions and 

negotiations between the Parties, the 

Government and MCC determined to 

enter into this Compact to implement a 

program using MCC Funding to advance 

Ghana’s progress towards poverty 

reduction through economic growth (the 

‘‘Program’’); 

Now, therefore, in consideration of 

the foregoing and the mutual covenants 

and agreements set forth herein, the 

Parties hereby agree as follows: 

Article I. Purpose and Term 

Section 1.1 Compact Goal; Objectives 

The goal of this Compact is poverty 

reduction through economic growth in 

Ghana (the ‘‘Compact Goal’’). The key to 

advancing the Compact Goal is the twofold objective of the Program, first, to 

increase the production and 

productivity of high-value cash and 

food staple crops in the Intervention 

Zones in Ghana and, second, to enhance 

the competitiveness of Ghana’s highvalue cash and food crops in both local 

and international markets (collectively, 

the ‘‘Program Objective’’). The Parties 

have identified the following projectlevel objectives (each, a ‘‘Project 

Objective’’) of this Compact to advance 

the Program Objective, and thus the 

Compact Goal, each of which is 

described in more detail in the Annexes 

attached hereto: 

(a) Enhance the profitability of 

cultivation, services to agriculture and 

product handling in support of the 

expansion of commercial agriculture 

among groups of smallholder farmers 

(the ‘‘Agriculture Project Objective’’); 

(b) Reduce the transportation costs 

affecting agricultural commerce at subregional and regional levels (the 

‘‘Transportation Project Objective’’); and 

(c) Strengthen the rural institutions 

that provide services complementary to, 

and supportive of, agricultural and agribusiness development (the ‘‘Rural 

Development Project Objective’’). 

The Government expects to achieve, 

and shall use its best efforts to ensure 

the achievement of, the Compact Goal, 

Program Objective and Project 

Objectives during the Compact Term. 

The Program Objective and the 

individual Project Objectives are 

collectively referred to herein as 

‘‘Objectives’’ and each individually as 

an ‘‘Objective.’’

Section 1.2 Projects 

The Annexes attached hereto describe 

the specific projects, the policy reforms 

and other activities related thereto 

(each, a ‘‘Project’’) that the Government 

will carry out, or cause to be carried out, 

in furtherance of this Compact to 

achieve the Objectives and the Compact 

Goal. 

Section 1.3 Entry into Force; Compact 

Term 

This Compact shall enter into force on 

the date of the last letter in an exchange 

of letters between the Principal 

Representatives of each Party 

confirming that each Party has 

completed its domestic requirements for 

entry into force of this Compact 

(including as set forth in Section 3.10) 

and that all conditions set forth in 

Section 4.1 have been satisfied by the 

Government and MCC (the ‘‘Entry into 

Force’’). This Compact shall remain in 

force for five (5) years from the Entry 

into Force, unless earlier terminated in 

accordance with Section 5.4 (the 

‘‘Compact Term’’). 

Article II. Funding and Resources 

Section 2.1 MCC Funding 

(a) MCC’s Contribution. MCC hereby 

grants to the Government, subject to the 

terms and conditions of this Compact, 

an amount not to exceed Five Hundred 

Forty Seven Million and Nine Thousand 

United States Dollars (US$ 547,009,000) 

(‘‘MCC Funding’’) during the Compact 

Term to enable the Government to 

implement the Program and achieve the 

Objectives. 

(i) Subject to Sections 2.1(a)(ii), 2.2(b) 

and 5.4(b), the allocation of the MCC 

Funding within the Program and among 

and within the Projects shall be as 

generally described in Annex II or as 

otherwise agreed upon by the Parties 

from time to time. 

(ii) If at any time MCC determines that 

a condition precedent to an MCC 

Disbursement has not been satisfied, 

MCC may, upon written notice to the 

Government, reduce the total amount of 

MCC Funding by an amount equal to the 

amount estimated in the applicable 

Detailed Budget for the Program, 

Project, Project Activity or sub-activity 

for which such condition precedent has 

not been met. Upon the expiration or 

termination of this Compact, (A) any 

amounts of MCC Funding not disbursed 

by MCC to the Government shall be 

automatically released from any 

obligation in connection with this 

Compact and (B) any amounts of MCC 

Funding disbursed by MCC to the 

Government as provided in Section 

2.1(b)(i), but not re-disbursed as 


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provided in Section 2.1(b)(ii) or 

otherwise incurred as permitted 

pursuant to Section 5.4(e) prior to the 

expiration or termination of this 

Compact, shall be returned to MCC in 

accordance with Section 2.5(a)(ii). 

(iii) Notwithstanding any other 

provision of this Compact and pursuant 

to the authority of Section 609(g) of the 

Millennium Challenge Act of 2003, as 

amended (the ‘‘Act’’), upon the 

conclusion of this Compact (and 

without regard to the satisfaction of all 

of the conditions for Entry into Force 

required under Section 1.3), MCC shall 

make available Ten Million and Three 

Hundred Seventy One Thousand United 

States Dollars (US$ 10,371,000) 

(‘‘Compact Implementation Funding’’) 

to facilitate certain aspects of Compact 

implementation as described in 

Schedule 2.1(a)(iii) attached hereto; 

provided, such Compact 

Implementation Funding shall be 

subject to (A) the limitations on the use 

or treatment of MCC Funding set forth 

in Section 2.3, as if such provision were 

in full force and effect, and (B) any other 

requirements for, and limitations on the 

use of, such Compact Implementation 

Funding as may be required by MCC in 

writing; provided, further, that any 

Compact Implementation Funding 

granted in accordance with this Section 

2.1(a)(iii) shall be included in, and not 

additional to, the total amount of MCC 

Funding; and provided further, any 

obligation to provide such Compact 

Implementation Funding shall expire 

upon the expiration or termination of 

this Compact or five (5) years from the 

conclusion of this Compact, whichever 

occurs sooner, and in accordance with 

Section 5.4(e). Notwithstanding 

anything to the contrary in this 

Compact, this Section 2.1(a)(iii) shall 

provisionally apply prior to Entry into 

Force. 

(b) Disbursements. 

(i) Disbursements of MCC Funding. 

MCC shall from time to time make 

disbursements of MCC Funding (each 

such disbursement, an ‘‘MCC 

Disbursement’’) to a Permitted Account 

or through such other mechanism 

agreed by the Parties under and in 

accordance with the procedures and 

requirements set forth in Annex I, the 

Disbursement Agreement or as 

otherwise provided in any other 

Supplemental Agreement. 

(ii) Re-Disbursements of MCC 

Funding. The release of MCC Funding 

from a Permitted Account (each such 

release, a ‘‘Re-Disbursement’’) shall be 

made in accordance with the procedures 

and requirements set forth in Annex I, 

the Disbursement Agreement or as 

otherwise provided in any other 

Supplemental Agreement. 

(c) Interest. Unless the Parties agree 

otherwise in writing, any interest or 

other earnings on MCC Funding that 

accrue (collectively, ‘‘Accrued Interest’’) 

shall be held in a Permitted Account 

and accrue in accordance with the 

requirements for the accrual and 

treatment of Accrued Interest as 

specified in Annex I or any 

Supplemental Agreement. On a 

quarterly basis and upon the 

termination or expiration of this 

Compact, the Government shall return, 

or ensure the return of, all Accrued 

Interest to any United States 

Government account designated by 

MCC. 

(d) Conversion; Exchange Rate. The 

Government shall ensure that all MCC 

Funding that is held in any Permitted 

Account shall be denominated in the 

currency of the United States of 

America (‘‘United States Dollars,’’

‘‘US$’’ or ‘‘$’’) prior to Re-Disbursement; 

provided, that a certain portion of MCC 

Funding may be transferred to a Local 

Account and may be held in such Local 

Account in the currency of the Ghana 

prior to Re-Disbursement in accordance 

with the requirements of Annex I and 

any Supplemental Agreement. To the 

extent that any amount of MCC Funding 

held in United States Dollars must be 

converted into the currency of Ghana for 

any purpose, including for any ReDisbursement or any transfer of MCC 

Funding into a Local Account, the 

Government shall ensure that such 

amount is converted consistent with 

Annex I, including the rate and manner 

set forth in Annex I, and the 

requirements of the Disbursement 

Agreement or any other Supplemental 

Agreement between the Parties. 

(e) Guidance. From time to time, MCC 

may provide guidance to the 

Government through Implementation 

Letters on the frequency, form and 

content of requests for MCC 

Disbursements and Re-Disbursements or 

any other matter relating to MCC 

Funding. The Government shall apply 

such guidance in implementing this 

Compact. 

Section 2.2 Government Resources 

(a) The Government shall provide or 

cause to be provided such Government 

funds and other resources, and shall 

take or cause to be taken such actions, 

including obtaining all necessary 

approvals and consents, as are specified 

in this Compact or in any Supplemental 

Agreement to which the Government is 

a party or as are otherwise necessary 

and appropriate effectively to carry out 

the Government Responsibilities or 

other responsibilities or obligations of 

the Government under or in furtherance 

of this Compact during the Compact 

Term and through the completion of any 

post-Compact Term activities, audits or 

other responsibilities. 

(b) If at any time during the Compact 

Term, the Government materially 

reallocates or reduces the allocation in 

its national budget or any other 

governmental authority of Ghana at a 

departmental, municipal, regional or 

other jurisdictional level materially 

reallocates or reduces the allocation in 

its respective budget of the normal and 

expected resources that the Government 

or such other governmental authority, as 

applicable, would have otherwise 

received or budgeted, from external or 

domestic sources, for the activities 

contemplated herein, the Government 

shall notify MCC in writing within 

fifteen (15) days of such reallocation or 

reduction, such notification to contain 

information regarding the amount of the 

reallocation or reduction, the affected 

activities, and an explanation for the 

reallocation or reduction. In the event 

that MCC independently determines, 

upon review of the executed national 

annual budget that such a material 

reallocation or reduction of resources 

has occurred, MCC shall notify the 

Government and, following such 

notification, the Government shall 

provide a written explanation for such 

reallocation or reduction and MCC may 

(i) reduce, in its sole discretion, the total 

amount of MCC Funding or any MCC 

Disbursement by an amount equal to the 

amount estimated in the applicable 

Detailed Budget for the activity for 

which funds were reduced or 

reallocated or (ii) otherwise suspend or 

terminate MCC Funding in accordance 

with Section 5.4(b). 

(c) The Government shall use its best 

efforts to ensure that all MCC Funding 

is fully reflected and accounted for in 

the annual budget of Ghana on a multiyear basis. 

Section 2.3 Limitations on the Use or 

Treatment of MCC Funding 

(a) Abortions and Involuntary 

Sterilizations. The Government shall 

ensure that MCC Funding shall not be 

used to undertake, fund or otherwise 

support any activity that is subject to 

prohibitions on use of funds contained 

in (i) paragraphs (1) through (3) of 

section 104(f) of the Foreign Assistance 

Act of 1961 (22 U.S.C. 2151b(f)(1)–(3)), 

a United States statute, which 

prohibitions shall apply to the same 

extent and in the same manner as such 

prohibitions apply to funds made 

available to carry out Part I of such Act; 

or (ii) any provision of law comparable 


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to the eleventh and fourteenth provisos 

under the heading ‘‘Child Survival and 

Health Programs Fund’’ of division E of 

Public Law 108–7 (117 Stat. 162), a 

United States statute. 

(b) United States Job Loss or 

Displacement of Production. The 

Government shall ensure that MCC 

Funding shall not be used to undertake, 

fund or otherwise support any activity 

that is likely to cause a substantial loss 

of United States jobs or a substantial 

displacement of United States 

production, including: 

(i) Providing financial incentives to 

relocate a substantial number of United 

States jobs or cause a substantial 

displacement of production outside the 

United States; 

(ii) Supporting investment promotion 

missions or other travel to the United 

States with the intention of inducing 

United States firms to relocate a 

substantial number of United States jobs 

or a substantial amount of production 

outside the United States; 

(iii) Conducting feasibility studies, 

research services, studies, travel to or 

from the United States, or providing 

insurance or technical and management 

assistance, with the intention of 

inducing United States firms to relocate 

a substantial number of United States 

jobs or cause a substantial displacement 

of production outside the United States; 

(iv) Advertising in the United States 

to encourage United States firms to 

relocate a substantial number of United 

States jobs or cause a substantial 

displacement of production outside the 

United States; 

(v) Training workers for firms that 

intend to relocate a substantial number 

of United States jobs or cause a 

substantial displacement of production 

outside the United States; 

(vi) Supporting a United States office 

of an organization that offers incentives 

for United States firms to relocate a 

substantial number of United States jobs 

or cause a substantial displacement of 

production outside the United States; or 

(vii) Providing general budget support 

for an organization that engages in any 

activity prohibited above. 

(c) Military Assistance and Training. 

The Government shall ensure that MCC 

Funding shall not be used to undertake, 

fund or otherwise support the purchase 

or use of goods or services for military 

purposes, including military training, or 

to provide any assistance to the military, 

police, militia, national guard or other 

quasi-military organization or unit. 

(d) Prohibition of Assistance Relating 

to Environmental, Health or Safety 

Hazards. The Government shall ensure 

that MCC Funding shall not be used to 

undertake, fund or otherwise support 

any activity that is likely to cause a 

significant environmental, health, or 

safety hazard. Unless MCC and the 

Government agree otherwise in writing, 

the Government shall ensure that 

activities undertaken, funded or 

otherwise supported in whole or in part 

(directly or indirectly) by MCC Funding 

comply with environmental guidelines 

delivered by MCC to the Government or 

posted by MCC on its website or 

otherwise publicly made available, as 

such guidelines may be amended from 

time to time (the ‘‘Environmental 

Guidelines’’), including any definition 

of ‘‘likely to cause a significant 

environmental, health, or safety hazard’’

as may be set forth in such 

Environmental Guidelines. 

(e) Taxation. 

(i) Taxes. The Government shall 

ensure that the Program, any Program 

Assets, MCC Funding and Accrued 

Interest shall be free from any taxes 

imposed under the laws currently or 

hereafter in effect in Ghana during the 

Compact Term. This exemption shall 

apply to any use of any Program Asset, 

MCC Funding and Accrued Interest, 

including any Exempt Uses, and to any 

work performed under or activities 

undertaken in furtherance of this 

Compact by any person or entity 

(including contractors and grantees) 

funded by MCC Funding, and shall 

apply to all taxes, tariffs, duties, and 

other levies (each a ‘‘Tax’’ and 

collectively, ‘‘Taxes’’), including: 

(1) To the extent attributable to MCC 

Funding, income taxes and other taxes 

on profit or businesses imposed on 

organizations or entities, other than 

nationals of Ghana, receiving MCC 

Funding, including taxes on the 

acquisition, ownership, rental, 

disposition or other use of real or 

personal property, taxes on investment 

or deposit requirements and currency 

controls in Ghana, or any other tax, 

duty, charge or fee of whatever nature, 

except fees for specific services 

rendered; for purposes of this Section 

2.3(e), the term ‘‘national’’ refers to 

organizations established under the 

laws currently or hereafter in effect in 

Ghana, other than MiDA or any other 

entity established solely for purposes of 

managing or overseeing the 

implementation of the Program or any 

wholly-owned subsidiaries, divisions, 

or Affiliates of entities not registered or 

established under the laws currently or 

hereafter in effect in Ghana; 

(2) Customs duties, tariffs, import and 

export taxes, or other levies on the 

importation, use and re-exportation of 

goods, services, or the personal 

belongings and effects, including 

personally-owned automobiles, for 

Program use or the personal use of 

individuals who are neither citizens nor 

permanent residents of Ghana and who 

are present in Ghana for purposes of 

carrying out the Program or their family 

members, including all charges based on 

the value of such imported goods; 

(3) Taxes on the income or personal 

property of all individuals who are 

neither citizens nor permanent residents 

of Ghana, including income and social 

security taxes of all types and all taxes 

on the personal property owned by such 

individuals, to the extent such income 

or property are attributable to MCC 

Funding; and 

(4) Taxes or duties levied on the last 

transaction for the purchase of goods or 

services funded by MCC Funding, 

including sales taxes, tourism taxes, 

value-added taxes or other similar 

charges; for purposes of this Section 

2.3(e)(i)(4), the term ‘‘last transaction’’

refers to the last transaction by which 

the goods or services were purchased for 

use in the activities funded by MCC 

Funding. 

(ii) This Section 2.3(e) shall apply, but 

is not limited to (A) any transaction, 

service, activity, contract, grant or other 

implementing agreement funded in 

whole or in part by MCC Funding; (B) 

any supplies, equipment, materials, 

property or other goods (referred to 

collectively in this Section 2.3(e) as 

‘‘goods’’) or funds introduced into, 

acquired in, used or disposed of in, or 

imported into or exported from, Ghana 

by MCC, or by any person or entity 

(including contractors and grantees) as 

part of, or in conjunction with, MCC 

Funding or the Program; (C) any 

contractor, grantee, or other 

organization carrying out activities 

funded in whole or in part by MCC 

Funding; and (D) any employee of such 

organizations (the uses set forth in 

clauses (A) through (D) are collectively 

referred to herein as ‘‘Exempt Uses’’). 

(iii) If a Tax has been levied and paid 

contrary to the requirements of this 

Section 2.3(e), whether inadvertently, 

due to the impracticality of 

implementation of this provision with 

respect to certain types or amounts of 

taxes, or otherwise, the Government 

shall refund promptly to an account 

designated by MCC the amount of such 

Tax in the currency of Ghana, within 

thirty (30) days (or such other period as 

may be agreed in writing by the Parties) 

after the Government is notified in 

writing of such levy and tax payment, 

in accordance with procedures agreed 

by the Parties, whether by MCC or 

otherwise; provided, however, the 

Government shall apply national funds 

to satisfy its obligations under this 

paragraph and no MCC Funding, 


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Accrued Interest, or any assets, goods, 

or property (real, tangible, or intangible) 

purchased or financed in whole or in 

part (directly or indirectly) by MCC 

Funding (‘‘Program Assets’’) may be 

applied by the Government in 

satisfaction of its obligations under this 

paragraph. 

(iv) At MCC’s request, the Parties 

shall memorialize in a mutually 

acceptable Supplemental Agreement, 

Implementation Letter or other suitable 

document the mechanisms for 

implementing this Section 2.3(e), 

including (A) a formula for determining 

refunds for Taxes paid, the amount of 

which is not susceptible to precise 

determination, (B) a mechanism for 

ensuring the tax-free importation, use, 

and re-exportation of goods, services, or 

the personal belongings of individuals 

(including all Providers) described in 

Section 2.3(e)(i)(2) above, (C) a 

requirement for the provision by the 

Government of a tax-exemption 

certificate which expressly includes, 

inter alia, the thirty (30) day refund 

requirement of Section 2.3(e)(iii) above, 

and (D) any other appropriate 

Government action to facilitate the 

administration of this Section 2.3(e). 

(f) Alteration. The Government shall 

ensure that no MCC Funding, Accrued 

Interest or Program Assets shall be 

subject to any impoundment, rescission, 

sequestration or any provision of law 

now or hereafter in effect in Ghana that 

would have the effect of requiring or 

allowing any impoundment, rescission 

or sequestration of any MCC Funding, 

Accrued Interest or Program Asset. 

(g) Liens or Encumbrances. The 

Government shall ensure that no MCC 

Funding, Accrued Interest, or Program 

Assets shall be subject to any lien, 

attachment, enforcement of judgment, 

pledge, or encumbrance of any kind 

(each a ‘‘Lien’’), except with the prior 

approval of MCC in accordance with 

Section 3(c) of Annex I, and in the event 

of the imposition of any Lien not so 

approved, the Government shall 

promptly seek the release of such Lien 

and if required by final non-appealable 

order, shall pay any amounts owed to 

obtain such release; provided, however, 

the Government shall apply national 

funds to satisfy its obligations under 

this Section 2.3(g) and no MCC 

Funding, Accrued Interest, or Program 

Assets may be applied by the 

Government in satisfaction of its 

obligations under this Section 2.3(g). 

(h) Other Limitations. The 

Government shall ensure that the use or 

treatment of MCC Funding, Accrued 

Interest, and Program Assets shall be 

subject to and in conformity with such 

other limitations (i) as required by the 

applicable law of the United States of 

America now or hereafter in effect 

during the Compact Term, (ii) as 

advisable under or required by 

applicable United States Government 

policies now or hereafter in effect 

during the Compact Term, or (iii) to 

which the Parties may otherwise agree 

in writing. 

(i) Utilization of Goods, Services and 

Works. The Government shall ensure 

that any Program Assets, services, 

facilities or works funded in whole or in 

part (directly or indirectly) by MCC 

Funding, unless otherwise agreed by the 

Parties in writing, shall be used solely 

in furtherance of this Compact. 

(j) Notification of Applicable Laws 

and Policies. MCC shall notify the 

Government of any applicable United 

States law or policy affecting the use or 

treatment of MCC Funding, whether or 

not specifically identified in this 

Section 2.3, and shall provide to the 

Government a copy of the text of any 

such applicable law and a written 

explanation of any such applicable 

policy. 

Section 2.4 Incorporation; Notice; 

Clarification 

(a) The Government shall include, or 

ensure the inclusion of, all of the 

requirements set forth in Section 2.3 in 

all Supplemental Agreements to which 

MCC is not a party and shall use its best 

efforts to ensure that no such 

Supplemental Agreement is 

implemented in violation of the 

prohibitions set forth in Section 2.3. 

(b) The Government shall ensure 

notification of all of the requirements 

set forth in Section 2.3 to any Provider 

and all relevant officers, directors, 

employees, agents, representatives, 

Affiliates, contractors, sub-contractors, 

grantees and sub-grantees of any 

Provider. The term ‘‘Provider’’ shall 

mean (i) MiDA and any Government 

Affiliate or Permitted Designee involved 

in any activities in furtherance of this 

Compact or (ii) any third party who 

receives at least US$ 50,000 in the 

aggregate of MCC Funding (other than 

employees of MiDA) during the 

Compact Term or such other amount as 

the Parties may agree in writing, 

whether directly from MCC, indirectly 

through Re-Disbursements, or 

otherwise. 

(c) In the event the Government or 

any Provider requires clarification from 

MCC as to whether an activity 

contemplated to be undertaken in 

furtherance of this Compact violates or 

may violate any provision of Section 

2.3, the Government shall notify MCC in 

writing and provide in such notification 

a detailed description of the activity in 

question. In such event, the Government 

shall not proceed, and shall use its best 

efforts to ensure that no relevant 

Provider proceeds, with such activity, 

and the Government shall ensure that 

no Re-Disbursements shall be made for 

such activity, until MCC advises the 

Government or such Provider in writing 

that the activity is permissible. MCC 

shall use good faith efforts to respond 

timely to such notification for 

clarification. 

Section 2.5 Refunds; Violation 

(a) Notwithstanding the availability to 

MCC, or exercise by MCC, of any other 

remedies, including under international 

law, this Compact or any Supplemental 

Agreement: 

(i) If any amount of MCC Funding, 

Accrued Interest or any other Program 

Asset is used for any purpose prohibited 

under this Article II or otherwise in 

violation of any of the terms and 

conditions of this Compact, any 

guidance in any Implementation Letter, 

or any Supplemental Agreement 

between the Parties, MCC may, upon 

written notice, require the Government 

to repay promptly to MCC to an account 

designated by MCC, or to others as MCC 

may direct, the amount of such misused 

MCC Funding or Accrued Interest, or 

the cash equivalent of the value of any 

other misused Program Asset, in United 

States Dollars, plus any interest that 

accrued or would have accrued thereon, 

within thirty (30) days after the 

Government is notified, whether by 

MCC or other duly authorized 

representative of the United States 

Government, of such prohibited use; 

provided, however, the Government 

shall apply national funds to satisfy its 

obligations under this Section 2.5(a)(i) 

and no MCC Funding, Accrued Interest, 

or any other Program Assets may be 

applied by the Government in 

satisfaction of its obligations under this 

Section 2.5(a)(i); and 

(ii) If all or any portion of this 

Compact is terminated or suspended 

and upon the expiration of this 

Compact, the Government shall, subject 

to the requirements of Sections 5.4(e) 

and 5.4(f), refund, or ensure the refund 

of, to such account designated by MCC 

the amount of any MCC Funding, plus 

any Accrued Interest, promptly, but in 

no event later than thirty (30) days after 

the Government receives MCC’s request 

for such refund; provided, that if this 

Compact is terminated or suspended in 

part, MCC may request a refund for only 

the amount of MCC Funding, plus any 

Accrued Interest, then allocated to the 

terminated or suspended portion; 

provided, further, that any refund of 

MCC Funding or Accrued Interest shall 


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be to such account(s) as designated by 

MCC. 

(b) Notwithstanding any other 

provision in this Compact or any other 

agreement to the contrary, MCC’s right 

under this Section 2.5 for a refund shall 

continue during the Compact Term and 

for a period of (i) five (5) years thereafter 

or (ii) one (1) year after MCC receives 

actual knowledge of such violation, 

whichever is later. 

(c) If MCC determines that any 

activity or failure to act violates, or may 

violate, any Section in this Article II, 

MCC may refuse any further MCC 

Disbursements for or conditioned upon 

such activity, and may take any action 

to prevent any Re-Disbursement related 

to such activity. 

Section 2.6 Bilateral Agreement 

All MCC Funding shall be considered 

United States assistance under the 

General Agreement for a Programme of 

Technical Co-operation by and between 

the Government of the United States of 

America and the Government, dated 

June 3, 1957, as amended from time to 

time (the ‘‘Bilateral Agreement’’). If 

there are conflicts or inconsistencies 

between any parts of this Compact and 

the Bilateral Agreement, as either may 

be amended from time to time, the 

provisions of this Compact shall prevail 

over those of the Bilateral Agreement. 

Article III. Implementation 

Section 3.1 Implementation 

Framework 

This Compact shall be implemented 

by the Parties in accordance with this 

Article III and as further specified in the 

Annexes and in relevant Supplemental 

Agreements. 

Section 3.2 Government 

Responsibilities 

(a) The Government shall have 

principal responsibility for oversight 

and management of the implementation 

of the Program (i) in accordance with 

the terms and conditions specified in 

this Compact and relevant 

Supplemental Agreements, (ii) in 

accordance with all applicable laws 

then in effect in Ghana, and (iii) in a 

timely and cost-effective manner and in 

conformity with sound technical, 

financial and management practices 

(collectively, the ‘‘Government 

Responsibilities’’). Unless otherwise 

expressly provided, any reference to the 

Government Responsibilities or any 

other responsibilities or obligations of 

the Government herein shall be deemed 

to apply to any Government Affiliate 

and any of their respective directors, 

officers, employees, contractors, subcontractors, grantees, sub-grantees, 

agents or representatives. 

(b) The Government shall ensure that 

no person or entity shall participate in 

the selection, award, administration, or 

oversight of a contract, grant or other 

benefit or transaction funded in whole 

or in part (directly or indirectly) by 

MCC Funding, in which (i) the entity, 

the person, members of the person’s 

immediate family or household or his or 

her business partners, or organizations 

controlled by or substantially involving 

such person or entity, has or have a 

direct or indirect financial or other 

interest or (ii) the person or entity is 

negotiating or has any arrangement 

concerning prospective employment, 

unless such person or entity has first 

disclosed in writing to the Government 

the conflict of interest and, following 

such disclosure, the Parties agree in 

writing to proceed notwithstanding 

such conflict. The Government shall 

ensure that no person or entity involved 

in the selection, award, administration, 

oversight or implementation of any 

contract, grant or other benefit or 

transaction funded in whole or in part 

(directly or indirectly) by MCC Funding 

shall solicit or accept from or offer to a 

third party or seek or be promised 

directly or indirectly for itself or for 

another person or entity any gift, 

gratuity, favor or benefit, other than 

items of de minimis value and otherwise 

consistent with such guidance as MCC 

may provide from time to time. 

(c) The Government shall not 

designate any person or entity, 

including any Government Affiliate, to 

implement, in whole or in part, this 

Compact or any Supplemental 

Agreement between the Parties 

(including any Government 

Responsibilities or any other 

responsibilities or obligations of the 

Government under this Compact or any 

Supplemental Agreement between the 

Parties) or to exercise any rights of the 

Government under this Compact or any 

Supplemental Agreement between the 

Parties, except as expressly provided 

herein or with the prior written consent 

of MCC; provided, however, the 

Government may designate MiDA or, 

with the prior written consent of MCC, 

such other mutually acceptable persons 

or entities (each, a ‘‘Permitted 

Designee’’) to implement some or all of 

the Government Responsibilities or any 

other responsibilities or obligations of 

the Government or to exercise any rights 

of the Government under this Compact 

or any Supplemental Agreement 

between the Parties each in accordance 

with the terms and conditions set forth 

in this Compact or such Supplemental 

Agreement (referred to herein 

collectively as ‘‘Designated Rights and 

Responsibilities’’). Notwithstanding any 

provision herein or any other agreement 

to the contrary, no such designation 

shall relieve the Government of such 

Designated Rights and Responsibilities, 

for which the Government shall retain 

ultimate responsibility. In the event that 

the Government designates any person 

or entity, including any Government 

Affiliate, to implement any portion of 

the Government Responsibilities or 

other responsibilities or obligations of 

the Government, or to exercise any 

rights of the Government under this 

Compact or any Supplemental 

Agreement between the Parties, in 

accordance with this section 3.2(c), then 

the Government shall (i) cause such 

person or entity to perform such 

Designated Rights and Responsibilities 

in the same manner and to the full 

extent to which the Government is 

obligated to perform such Designated 

Rights and Responsibilities, (ii) ensure 

that such person or entity does not 

assign, delegate or contract (or 

otherwise transfer) any of such 

Designated Rights and Responsibilities 

to any person or entity and (iii) cause 

such person or entity to certify to MCC 

in writing that it will so perform such 

Designated Rights and Responsibilities 

and will not assign, delegate, or contract 

(or otherwise transfer) any of such 

Designated Rights and Responsibilities 

to any person or entity without the prior 

written consent of MCC. 

(d) The Government shall, upon a 

request from MCC, execute, or ensure 

the execution of, an assignment to MCC 

of any cause of action which may accrue 

to the benefit of the Government, a 

Government Affiliate or any Permitted 

Designee, including MiDA, in 

connection with or arising out of any 

activities funded in whole or in part 

(directly or indirectly) by MCC Funding. 

(e) The Government shall ensure that 

(i) no decision of MiDA is modified, 

supplemented, unduly influenced or 

rescinded by any governmental 

authority, except by a non-appealable 

judicial decision, and (ii) the authority 

of MiDA shall not be expanded, 

restricted, or otherwise modified, except 

in accordance with this Compact, the 

Governance Agreement, any other 

Governing Document or any other 

Supplemental Agreement between the 

Parties. 

(f) The Government shall ensure that 

all persons and individuals that enter 

into agreements to provide goods, 

services or works under the Program or 

in furtherance of this Compact shall do 

so in accordance with the Procurement 

Guidelines and shall obtain all 

necessary immigration, business and 


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other permits, licenses, consents and 

approvals to enable them and their 

personnel to fully perform under such 

agreements. 

Section 3.3 Government Deliveries 

The Government shall proceed, and 

cause others to proceed, in a timely 

manner to deliver to MCC all reports, 

notices, certificates, documents or other 

deliveries required to be delivered by 

the Government under this Compact or 

any Supplemental Agreement between 

the Parties, in form and substance as set 

forth in this Compact or in any such 

Supplemental Agreement. 

Section 3.4 Government Assurances 

The Government hereby provides the 

following assurances to MCC that as of 

the date this Compact is signed: 

(a) The information contained in the 

Proposal and any agreement, report, 

statement, communication, document or 

otherwise delivered or communicated to 

MCC by or on behalf of the Government 

on or after the date of the submission of 

the Proposal (i) are true, correct and 

complete in all material respects and (ii) 

do not omit any fact known to the 

Government that if disclosed would (A) 

alter in any material respect the 

information delivered, (B) likely have a 

material adverse effect on the 

Government’s ability to implement 

effectively, or ensure the effective 

implementation of, the Program or any 

Project or otherwise to carry out its 

responsibilities or obligations under or 

in furtherance of this Compact, or (C) 

have likely adversely affected MCC’s 

determination to enter into this 

Compact or any Supplemental 

Agreement between the Parties. 

(b) Unless otherwise disclosed in 

writing to MCC, the MCC Funding made 

available hereunder is in addition to the 

normal and expected resources that the 

Government usually receives or budgets 

for the activities contemplated herein 

from external or domestic sources. 

(c) This Compact does not conflict 

and will not conflict with any 

international agreement or obligation to 

which the Government is a party or by 

which it is bound. 

(d) No payments have been (i) 

received by any official of the 

Government or any other government 

body in connection with the 

procurement of goods, services or works 

to be undertaken or funded in whole or 

in part (directly or indirectly) by MCC 

Funding, except fees, taxes, or similar 

payments legally established in Ghana 

(subject to Section 2.3(e)) and consistent 

with the applicable requirement of the 

laws of Ghana or (ii) made to any third 

party, in connection with or in 

furtherance of this Compact, in violation 

of the United States Foreign Corrupt 

Practices Act of 1977, as amended (15 

U.S.C. 78a et seq.). 

Section 3.5 Implementation Letters; 

Supplemental Agreements 

(a) MCC may, from time to time, issue 

one or more letters to furnish additional 

information or guidance to assist the 

Government in the implementation of 

this Compact (each, an ‘‘Implementation 

Letter’’). The Government shall apply 

such guidance in implementing this 

Compact. 

(b) The details of any funding, 

implementing and other arrangements 

in furtherance of this Compact may be 

memorialized in one or more 

agreements between (i) the Government 

(or any Government Affiliate or 

Permitted Designee) and MCC, (ii) MCC 

or the Government (or any Government 

Affiliate or Permitted Designee) and any 

third party, including any of the 

Providers or Permitted Designee or (iii) 

any third parties where neither MCC nor 

the Government is a party, before, on or 

after the Entry into Force (each, a 

‘‘Supplemental Agreement’’). The 

Government shall deliver, or cause to be 

delivered, to MCC within five (5) days 

of its execution a copy of any 

Supplemental Agreement to which MCC 

is not a party. 

Section 3.6 Procurement; Awards of 

Assistance 

(a) The Government shall ensure that 

the procurement of all goods, services 

and works by the Government or any 

Provider in furtherance of this Compact 

shall be consistent with the 

procurement guidelines (the 

‘‘Procurement Guidelines’’) reflected in 

a Supplemental Agreement between the 

Government (and a mutually acceptable 

Government Affiliate or MiDA) and 

MCC (the ‘‘Procurement Agreement’’), 

which Procurement Guidelines shall 

include the following requirements: 

(i) Internationally accepted 

procurement rules with open, fair and 

competitive procedures are used in a 

transparent manner to solicit, award and 

administer contracts, grants, and other 

agreements and to procure goods, 

services and works; 

(ii) Solicitations for goods, services, 

and works shall be based upon a clear 

and accurate description of the goods, 

services or works to be acquired; 

(iii) Contracts shall be awarded only 

to qualified and capable contractors that 

have the capability and willingness to 

perform the contracts in accordance 

with the terms and conditions of the 

applicable contracts and on a cost 

effective and timely basis; and 

(iv) No more than a commercially 

reasonable price, as determined, for 

example, by a comparison of price 

quotations and market prices, shall be 

paid to procure goods, services, and 

works. 

(b) The Government shall maintain, 

and shall use its best efforts to ensure 

that all Providers maintain, records 

regarding the receipt and use of goods, 

services and works acquired in 

furtherance of this Compact, the nature 

and extent of solicitations of prospective 

suppliers of goods, services and works 

acquired in furtherance of this Compact, 

and the basis of award of contracts, 

grants and other agreements in 

furtherance of this Compact. 

(c) The Government shall use its best 

efforts to ensure that information, 

including solicitations, regarding 

procurement, grant and other agreement 

actions funded (or to be funded) in 

whole or in part (directly or indirectly) 

by MCC Funding shall be made publicly 

available in the manner outlined in the 

Procurement Guidelines or in any other 

manner agreed upon by the Parties in 

writing. 

(d) The Government shall ensure that 

no goods, services or works may be 

funded in whole or in part (directly or 

indirectly) by MCC Funding which are 

procured pursuant to orders or contracts 

firmly placed or entered into prior to the 

Entry into Force, except as the Parties 

may otherwise agree in writing. 

(e) The Government shall ensure that 

MiDA and any other Permitted Designee 

follows, and uses its best efforts to 

ensure that all Providers follow, the 

Procurement Guidelines in procuring 

(including soliciting) goods, services 

and works and in awarding and 

administering contracts, grants and 

other agreements in furtherance of this 

Compact, and shall furnish MCC 

evidence of the adoption of the 

Procurement Guidelines by MiDA no 

later than the time specified in the 

Disbursement Agreement. 

(f) The Government shall include, or 

ensure the inclusion of, the 

requirements of this section 3.6 into all 

Supplemental Agreements between the 

Government, any Government Affiliate 

or Permitted Designee or any of their 

respective directors, officers, employees, 

Affiliates, contractors, sub-contractors, 

grantees, sub-grantees, representatives 

or agents, on the one hand, and a 

Provider, on the other hand. 

Section 3.7 Policy Performance; Policy 

Reforms 

In addition to the specific policy and 

legal reform commitments identified in 

Annex I and the Schedules thereto, the 

Government shall seek to maintain and 


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to improve its level of performance 

under the policy criteria identified in 

section 607 of the Act, and the MCA 

selection criteria and methodology 

published by MCC pursuant to section 

607 of the Act from time to time (‘‘MCA 

Eligibility Criteria’’). 

Section 3.8 Records and Information; 

Access; Audits; Reviews 

(a) Reports and Information. The 

Government shall furnish to MCC, and 

shall use its best efforts to ensure that 

all Providers and any other third party 

receiving MCC Funding, as appropriate, 

furnish to the Government (and the 

Government shall provide to MCC), any 

records and other information required 

to be maintained under this Section 3.8 

and such other information, documents 

and reports as may be necessary or 

appropriate for the Government to carry 

out effectively its obligations under this 

Compact, including under section 3.12. 

(b) Government Books and Records. 

The Government shall maintain, and 

shall use its best efforts to ensure that 

all Providers maintain, accounting 

books, records, documents and other 

evidence relating to this Compact 

adequate to show, to the satisfaction of 

MCC, without limitation, the use of all 

MCC Funding, including all costs 

incurred by the Government and the 

Providers in furtherance of this 

Compact, the receipt, acceptance and 

use of goods, services and works 

acquired in furtherance of this Compact 

by the Government and the Providers, 

agreed-upon cost sharing requirements, 

the nature and extent of solicitations of 

prospective suppliers of goods, services 

and works acquired by the Government 

and the Providers in furtherance of this 

Compact, the basis of award of 

Government and other contracts and 

orders in furtherance of this Compact, 

the overall progress of the 

implementation of the Program, and any 

documents required by this Compact or 

any Supplemental Agreement between 

the Parties or reasonably requested by 

MCC upon reasonable notice (‘‘Compact 

Records’’). The Government shall 

maintain, and shall use its best efforts 

to ensure that all Covered Providers 

maintain, Compact Records in 

accordance with generally accepted 

accounting principles prevailing in the 

United States, or at the Government’s 

option and with the prior written 

approval by MCC, other accounting 

principles, such as those (i) prescribed 

by the International Accounting 

Standards Committee (an affiliate of the 

International Federation of 

Accountants) or (ii) then prevailing in 

Ghana. Compact Records shall be 

maintained for at least five (5) years 

after the end of the Compact Term or for 

such longer period, if any, required to 

resolve any then pending litigation, 

claims or audit findings or any statutory 

requirements. 

(c) Access. Upon the request of MCC, 

the Government, at all reasonable times, 

shall permit, or cause to be permitted, 

authorized representatives of MCC, the 

Inspector General, the United States 

Government Accountability Office, any 

auditor responsible for an audit 

contemplated herein or otherwise 

conducted in furtherance of this 

Compact, and any agents or 

representatives engaged by MCC or a 

Permitted Designee to conduct any 

assessment, review or evaluation of the 

Program, the opportunity to audit, 

review, evaluate or inspect activities 

funded in whole or in part (directly or 

indirectly) by MCC Funding or 

undertaken in connection with the 

Program, the utilization of goods and 

services purchased or funded in whole 

or in part (directly or indirectly) by 

MCC Funding, and Compact Records, 

including of the Government or any 

Provider, relating to activities funded or 

undertaken in furtherance of, or 

otherwise relating to, this Compact, and 

shall use its best efforts to ensure access 

by MCC, the Inspector General, the 

United States Government 

Accountability Office or relevant 

auditor, reviewer or evaluator or their 

respective representatives or agents to 

all relevant directors, officers, 

employees, Affiliates, contractors, 

representatives and agents of the 

Government or any Provider. 

(d) Audits. 

(i) Government Audits. The 

Government shall, on at least an annual 

basis and as the Parties may otherwise 

agree in writing, conduct, or cause to be 

conducted, financial audits of all MCC 

Disbursements and Re-Disbursements 

during the year since the Entry into 

Force or since the prior anniversary of 

the Entry into Force in accordance with 

the following terms, except as the 

Parties may otherwise agree in writing. 

As requested by MCC in writing, the 

Government shall use, or cause to be 

used, or select or cause to be selected, 

an auditor named on the approved list 

of auditors in accordance with the 

‘‘Guidelines for Financial Audits 

Contracted by Foreign Recipients’’ (the 

‘‘Audit Guidelines’’) issued by the 

Inspector General of the United States 

Agency for International Development 

(the ‘‘Inspector General’’), and as 

approved by MCC, to conduct such 

annual audits. Such audits shall be 

performed in accordance with such 

Audit Guidelines and be subject to 

quality assurance oversight by the 

Inspector General in accordance with 

such Audit Guidelines. An audit shall 

be completed and delivered to MCC no 

later than ninety (90) days after the first 

period to be audited and no later than 

ninety (90) days after each anniversary 

of the Entry into Force thereafter, or 

such other period as the Parties may 

otherwise agree in writing. 

(ii) Audits of U.S. Entities. The 

Government shall ensure that 

Supplemental Agreements between the 

Government or any Provider, on the one 

hand, and a United States non-profit 

organization, on the other hand, state 

that the United States organization is 

subject to the applicable audit 

requirements contained in OMB 

Circular A–133, notwithstanding any 

other provision of this Compact to the 

contrary. The Government shall ensure 

that Supplemental Agreements between 

the Government or any Provider, on the 

one hand, and a United States for-profit 

Covered Provider, on the other hand, 

state that the United States organization 

is subject to audit by the cognizant 

United States Government agency, 

unless the Government and MCC agree 

otherwise in writing. 

(iii) Audit Plan. The Government 

shall submit, or cause to be submitted, 

to MCC no later than twenty (20) days 

prior to the date of its adoption a plan, 

in accordance with the Audit 

Guidelines, for the audit of the 

expenditures of any Covered Providers, 

which audit plan, in the form and 

substance as approved by MCC, the 

Government shall adopt, or cause to be 

adopted, no later than sixty (60) days 

prior to the end of the first period to be 

audited (such plan, the ‘‘Audit Plan’’). 

(iv) Covered Provider. A ‘‘Covered 

Provider’’ is (A) a non-United States 

Provider that receives (other than 

pursuant to a direct contract or 

agreement with MCC) US$ 300,000 or 

more of MCC Funding in any MiDA 

fiscal year or any other non-United 

States person or entity that receives, 

directly or indirectly, US$ 300,000 or 

more of MCC Funding from any 

Provider in such fiscal year or (B) any 

United States Provider that receives 

(other than pursuant to a direct contract 

or agreement with MCC) US$ 500,000 or 

more of MCC Funding in any MiDA 

fiscal year or any other United States 

person or entity that receives, directly or 

indirectly, US$ 500,000 or more of MCC 

Funding from any Provider in such 

fiscal year. 

(v) Corrective Actions. The 

Government shall use its best efforts to 

ensure that Covered Providers take, 

where necessary, appropriate and timely 

corrective actions in response to audits, 

consider whether a Covered Provider’s 


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audit necessitates adjustment of its own 

records, and require each such Covered 

Provider to permit independent auditors 

to have access to its records and 

financial statements as necessary. 

(vi) Audit Reports. The Government 

shall furnish, or use its best efforts to 

cause to be furnished, to MCC an audit 

report in a form satisfactory to MCC for 

each audit required by this Section 3.8, 

other than audits arranged for by MCC, 

no later than ninety (90) days after the 

end of the period under audit, or such 

other time as may be agreed by the 

Parties from time to time. 

(vii) Other Providers. For Providers 

who receive MCC Funding under this 

Compact pursuant to direct contracts or 

agreements with MCC, MCC shall 

include appropriate audit requirements 

in such contracts or agreements and 

shall, on behalf of the Government, 

unless otherwise agreed by the Parties, 

conduct the follow-up activities with 

regard to the audit reports furnished 

pursuant to such requirements. 

(viii) Audit by MCC. MCC retains the 

right to perform, or cause to be 

performed, the audits required under 

this Section 3.8 by utilizing MCC 

Funding or other resources available to 

MCC for this purpose, and to audit, 

conduct a financial review, or otherwise 

ensure accountability of any Provider or 

any other third party receiving MCC 

Funding, regardless of the requirements 

of this Section 3.8. 

(e) Application to Providers. The 

Government shall include, or ensure the 

inclusion of, at a minimum, the 

requirements of: 

(i) Paragraphs (a), (b), (c), (d)(ii), 

(d)(iii), (d)(v), (d)(vi), and (d)(viii) of this 

Section 3.8 into all Supplemental 

Agreements between the Government, 

any Government Affiliate, any Permitted 

Designee or any of their respective 

directors, officers, employees, Affiliates, 

contractors, sub-contractors, grantees, 

sub-grantees, representatives or agents 

(each, a ‘‘Government Party’’), on the 

one hand, and a Covered Provider that 

is not a non-profit organization 

domiciled in the United States, on the 

other hand; 

(ii) Paragraphs (a), (b), (c), (d)(ii), and 

(d)(viii) of this Section 3.8 into all 

Supplemental Agreements between a 

Government Party and a Provider that 

does not meet the definition of a 

Covered Provider; and 

(iii) Paragraphs (a), (b), (c), (d)(ii), 

(d)(v) and (d)(viii) of this Section 3.8 

into all Supplemental Agreements 

between a Government Party and a 

Covered Provider that is a non-profit 

organization domiciled in the United 

States. 

(f) Reviews or Evaluations. The 

Government shall conduct, or cause to 

be conducted, such performance 

reviews, data quality reviews, 

environmental and social audits, or 

program evaluations during the 

Compact Term or otherwise and in 

accordance with the M&E Plan or as 

otherwise agreed in writing by the 

Parties. 

(g) Cost of Audits, Reviews or 

Evaluations. MCC Funding may be used 

to fund the costs of any audits, reviews 

or evaluations required under this 

Compact, including as reflected on 

Exhibit A to Annex II, and in no event 

shall the Government be responsible for 

the costs of any such audits, reviews or 

evaluations from financial sources other 

than MCC Funding. 

Section 3.9 Insurance; Performance 

Guarantees 

The Government shall, to MCC’s 

satisfaction, insure or cause to be 

insured all Program Assets and shall 

obtain or cause to be obtained such 

other appropriate insurance and other 

protections to cover against risks or 

liabilities associated with the operations 

of the Program, including by requiring 

Providers to obtain adequate insurance 

and post adequate performance bonds or 

other guarantees. MiDA or the 

Implementing Entity, as applicable, 

shall be named as the payee on any such 

insurance and the beneficiary of any 

such guarantee, including performance 

bonds, to the extent permissible under 

applicable laws unless otherwise agreed 

by the Parties. MCC, and to the extent 

it is not named as the insured party, 

MiDA shall be named as additional 

insureds on any such insurance or other 

guarantee, to the extent permissible 

under applicable laws unless otherwise 

agreed by the Parties. The Government 

shall ensure that any proceeds from 

claims paid under such insurance or 

any other form of guarantee shall be 

used to replace or repair any loss of 

Program Assets or to pursue the 

procurement of the covered goods, 

services, works, or otherwise; provided, 

however, at MCC’s election, such 

proceeds shall be deposited in a 

Permitted Account as designated by 

MiDA and acceptable to MCC or as 

otherwise directed by MCC. To the 

extent MiDA is held liable under any 

indemnification or other similar 

provision of any agreement between 

MiDA, on the one hand, and any other 

Provider or other third party, on the 

other hand, the Government shall pay in 

full on behalf of MiDA any such 

obligation; provided, further, the 

Government shall apply national funds 

to satisfy its obligations under this 

Section 3.9 and no MCC Funding, 

Accrued Interest, or Program Asset may 

be applied by the Government in 

satisfaction of its obligations under this 

Section 3.9. 

Section 3.10 Domestic Requirements 

The Government shall proceed in a 

timely manner to seek ratification of this 

Compact as necessary or required by the 

laws of Ghana, or similar domestic 

requirement, in order that (a) this 

Compact (and any Supplemental 

Agreement to which MCC is a party) 

shall be given the status of an 

international agreement, (b) no laws of 

Ghana (other than the Constitution of 

Ghana) now or hereafter in effect shall 

take precedence or prevail over this 

Compact (or any Supplemental 

Agreement to which MCC is a party) 

during the Compact Term (or a longer 

period to the extent provisions of this 

Compact remain in force following the 

expiration of the Compact Term 

pursuant to Section 5.13) and (c) each 

of the provisions of this Compact (and 

each of the provisions of any 

Supplemental Agreement to which MCC 

is a party) is valid, binding and in full 

force and effect under the laws of 

Ghana. The Government shall initiate 

such process promptly after the 

conclusion of this Compact. 

Notwithstanding anything to the 

contrary in this Compact, this Section 

3.10 shall provisionally apply prior to 

Entry into Force. 

Section 3.11 No Conflict 

The Government shall undertake not 

to enter into any agreement in conflict 

with this Compact or any Supplemental 

Agreement during the Compact Term. 

Section 3.12 Reports 

The Government shall provide, or 

cause to be provided, to MCC at least on 

each anniversary of the Entry into Force 

(or such other anniversary agreed by the 

Parties in writing) and otherwise within 

thirty (30) days of any written request 

by MCC, or as otherwise agreed in 

writing by the Parties, the following 

information: 

(a) The name of each entity to which 

MCC Funding has been provided; 

(b) The amount of MCC Funding 

provided to such entity; 

(c) A description of the Program and 

each Project funded in furtherance of 

this Compact, including: 

(i) A statement of whether the 

Program or any Project was solicited or 

unsolicited; and 

(ii) A detailed description of the 

objectives and measures for results of 

the Program or Project; 


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(d) The progress made by Ghana 

toward achieving the Compact Goal and 

Objectives; 

(e) A description of the extent to 

which MCC Funding has been effective 

in helping Ghana to achieve the 

Compact Goal and Objectives; 

(f) A description of the coordination 

of MCC Funding with other United 

States foreign assistance and other 

related trade policies; 

(g) A description of the coordination 

of MCC Funding with assistance 

provided by other donor countries; 

(h) Any report, document or filing 

that the Government, any Government 

Affiliate or any Permitted Designee 

submits to any government body in 

connection with this Compact; 

(i) Any report or document required 

to be delivered to MCC under the 

Environmental Guidelines, any Audit 

Plan, or any Implementation Document; 

and 

(j) Any other report, document or 

information requested by MCC or 

required by this Compact or any 

Supplemental Agreement between the 

Parties. 

Article IV. Conditions Precedent; 

Deliveries 

Section 4.1 Conditions Prior to the 

Entry into Force and Deliveries 

As conditions precedent to the Entry 

Into Force, the Parties shall satisfy the 

conditions set forth in this Section 4.1. 

(a) The Government (or a mutually 

acceptable Government Affiliate), a 

Permitted Designee, and MCC shall 

excute a Disbursement Agreement, 

which agreement shall be in full force 

and effects as of the Entry into Force. 

(b) The Government (or a mutually 

acceptable Government Affiliate), a 

Permitted Designee, and MCC shall 

execute a Procurement Agreement, 

which agreement shall be in full force 

and effect as of the Entry into Force. 

(c) The Government (or a mutually 

acceptable Government Affiliate), a 

Permitted Designee, and MCC shall 

execute a governance agreement (the 

‘‘Governance Agreement’’), which 

agreement shall be in full force and 

effects as of the Entry into Force. 

(d)(i) The Government shall deliver 

one or more of the Supplement 

Agreements or other documents 

identified on Exhibit B attached hereto, 

which agreements or other documents 

shall be fully executed by the parties 

thereto and in full force and effect, or 

(ii) the Government (or a mutually 

acceptable Government Affiliate), a 

Permitted Designee, and MCC shall 

execute one or more term sheets that set 

forth the material and principal terms 

and conditions that will be included in 

any such Supplemental Agreement or 

other documents that have not been 

entered into or effective as of the Entry 

into Force (the ‘‘Supplemental 

Agreement Term Sheets’’). 

(e) The Government shall deliver a 

written statement as to the incumbency 

and specimen signature of the Principal 

Representative and each Additional 

Representative of the Government 

executing any document under this 

Compact, such written statement to be 

signed by a duly authorized official of 

the Government other than the Principal 

Representative or any such Additional 

Representative. 

(f) The Government shall deliver a 

certificate signed and dated by the 

Principal Representative of the 

Government, or such other duly 

authorized representative of the 

Government acceptable to MCC, that: 

(i) Certifies the Government has 

completed all of its domestic 

requirements in order that (1) this 

Compact (and any Supplemental 

Agreement to which MCC is a party) 

shall be given the status of an 

international agreement, (2) no laws of 

Ghana (other than the Constitution of 

Ghana) now or hereafter in effect shall 

take precedence or prevail over this 

Compact (or any Supplemental 

Agreement to which MCC is a party) 

during the Compact Term (or a longer 

period to the extent provisions of this 

Compact remain in force following the 

Compact Term pursuant to Section 5.13) 

and (3) each of the provisions of this 

Compact (and each of the provisions of 

any Supplemental Agreement to which 

MCC is a party) shall be valid, binding 

and in full force and effect under the 

laws of Ghana; and 

(ii) Attaches thereto, and certifies that 

such attachments are, true, correct and 

complete copies of all decrees, 

legislation, regulations or other 

governmental documents relating to its 

domestic requirements for this Compact 

to enter into force and the satisfaction 

of Section 3.10 (including any 

requirements under section 96 of the 

Ghana Public Procurement Act, 2003 

(Act 663) to cause the Procurement 

Guidelines (as defined in Section 3.6(a)) 

to apply to the transactions 

contemplated by this Compact, which 

MCC may post on its website or 

otherwise make publicly available. 

(g) MCC shall deliver a written 

statement as to the incumbency and 

specimen signature of the Principal 

Representative and each Additional 

Representative of MCC executing any 

document under this Compact such 

written statement to be signed by a duly 

authorized official of MCC other than 

the Principal Representative or any such 

Additional Representative. 

(h) The Government has not engaged 

subsequent to the conclusion of this 

Compact in any action or omission 

inconsistent with the MCA Eligibility 

Criteria, as determined by MCC in its 

sole discretion. 

Section 4.2 Conditions Precedent to 

MCC Disbursements or ReDisbursements 

Prior to, and as condition precedent 

to, any MCC Disbursement or ReDisbursement, the Government shall 

satisfy, or ensure the satisfaction of, all 

applicable conditions precedent in the 

Disbursement Agreement. 

Article V. Final Clauses 

Section 5.1 Communications 

Unless otherwise expressly stated in 

this Compact or otherwise agreed in 

writing by the Parties, any notice, 

certificate, request, report, document or 

other communication required, 

permitted, or submitted by either Party 

to the other under this Compact shall be 

(a) in writing, (b) in English and (c) 

deemed duly given: (i) upon personal 

delivery to the Party to be notified; (ii) 

when sent by confirmed facsimile or 

electronic mail, if sent during normal 

business hours of the recipient Party, if 

not, then on the next business day; or 

(iii) three (3) business days after deposit 

with an internationally recognized 

overnight courier, specifying next day 

delivery, with written verification of 

receipt to the Party to be notified at the 

address indicated below, or at such 

other address as such Party may 

designate: 

To MCC: 

Millennium Challenge Corporation, 

Attention: Vice President for Operations 

(with a copy to the Vice President and 

General Counsel), 875 Fifteenth Street, 

NW., Washington, DC 20005, United 

States of America, Facsimile: (202) 521–

3700, Phone: (202) 521–3600, E-mail: 

VPOperations@mcc.gov (Vice President 

for Operations); 

VPGeneralCounsel@mcc.gov (Vice 

President and General Counsel). 

To the Government: 

Ministry of Public Sector Reform, 

Attention: Minister of Public Sector 

Reform, Private Mail Bag, Stadium Post 

Office, Accra, Ghana, Facsimile: (233–

21) 670295, Phone: (233–21) 684086, Email: nduom@africaonline.com.gh. 

With a copy to MiDA: 

At an address, and to the attention of 

the person, to be designated in writing 

to MCC by the Government. 

Notwithstanding the foregoing, any 

audit report delivered pursuant to 


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Section 3.8, if delivered by facsimile or 

electronic mail, shall be followed by an 

original in overnight express mail. This 

Section 5.1 shall not apply to the 

exchange of letters contemplated in 

Section 1.3 or any amendments under 

Section 5.3. 

Section 5.2 Representatives 

Unless otherwise agreed in writing by 

the Parties, for all purposes relevant to 

this Compact, the Government shall be 

represented by the individual holding 

the position of, or acting as, Minister of 

Public Sector Reform of Ghana, and 

MCC shall be represented by the 

individual holding the position of, or 

acting as, Vice President for Operations 

(each, a ‘‘Principal Representative’’), 

each of whom, by written notice to the 

other Party, may designate one or more 

additional representatives (each, an 

‘‘Additional Representative’’) for all 

purposes other than signing 

amendments to this Compact. The 

names of the Principal Representative 

and any Additional Representative of 

each of the Parties shall be provided, 

with specimen signatures, to the other 

Party, and the Parties may accept as 

duly authorized any instrument signed 

by such representatives relating to the 

implementation of this Compact, until 

receipt of written notice of revocation of 

their authority. A Party may change its 

Principal Representative to a new 

representative of equivalent or higher 

rank upon written notice to the other 

Party, which notice shall include the 

specimen signature of the new Principal 

Representative. 

Section 5.3 Amendments 

The Parties may amend this Compact 

only by a written agreement signed by 

the Principal Representatives of the 

Parties and subject to the respective 

domestic approval requirements to 

which this Compact was subject. 

Section 5.4 Termination; Suspension 

(a) Subject to Section 2.5, either Party 

may terminate this Compact in its 

entirety by giving the other Party thirty 

(30) days’ written notice. 

(b) Notwithstanding any other 

provision of this Compact, including 

Section 2.1, or any Supplemental 

Agreement between the Parties, subject 

to Section 2.5, MCC may suspend or 

terminate this Compact or MCC 

Funding, in whole or in part, and any 

obligation or sub-obligation related 

thereto, upon giving the Government 

written notice, if MCC determines, in its 

sole discretion, that: 

(i) Any use or proposed use of MCC 

Funding or Program Assets or continued 

implementation of the Compact would 

be in violation of applicable law or 

United States Government policy, 

whether now or hereafter in effect; 

(ii) The Government, any Provider, or 

any other third party receiving MCC 

Funding or using Program Assets is 

engaged in activities that are contrary to 

the national security interests of the 

United States; 

(iii) The Government or any Permitted 

Designee has committed an act or 

omission or an event has occurred that 

would render Ghana ineligible to 

receive United States economic 

assistance under Part I of the Foreign 

Assistance Act of 1961, as amended (22 

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

application of any provision of the 

Foreign Assistance Act of 1961 or any 

other provision of law; 

(iv) The Government or any Permitted 

Designee has engaged in a pattern of 

actions or omissions inconsistent with 

the MCA Eligibility Criteria, or there has 

occurred a significant decline in the 

performance of Ghana on one or more 

of the eligibility indicators contained 

therein; 

(v) The Government or any Provider 

has materially breached one or more of 

its assurances or any covenants, 

obligations or responsibilities under this 

Compact or any Supplemental 

Agreement; 

(vi) An audit, review, report or any 

other document delivered in furtherance 

of the Compact or any Supplemental 

Agreement or any other evidence 

reveals that actual expenditures for the 

Program, any Project or any Project 

Activity were greater than the projected 

expenditure for such activities 

identified in the applicable Detailed 

Budget or are projected to be greater 

than projected expenditures for such 

activities; 

(vii) If the Government (A) materially 

reallocates or reduces the allocation in 

its national budget or any other 

Government budget of the normal and 

expected resources that the Government 

would have otherwise received or 

budgeted, from external or domestic 

sources, for the activities contemplated 

herein, (B) fails to contribute or provide 

the amount, level, type and quality of 

resources required to carry out 

effectively the Government 

Responsibilities or any other 

responsibilities or obligations of the 

Government under or in furtherance of 

this Compact, or (C) fails to pay any of 

its obligations as required under this 

Compact or any Supplemental 

Agreement, including such obligations 

which shall be paid solely out of 

national funds; 

(viii) If the Government, any Provider, 

or any other third party receiving MCC 

Funding or using Program Assets, or any 

of their respective directors, officers, 

employees, Affiliates, contractors, subcontractors, grantee, sub-grantee, 

representatives or agents, is found to 

have been convicted of a narcotics 

offense or to have been engaged in drug 

trafficking; 

(ix) Any MCC Funding or Program 

Assets are applied, directly or 

indirectly, to the provision of resources 

and support to, individuals and 

organizations associated with terrorism, 

sex trafficking or prostitution; 

(x) An event or condition of any 

character has occurred that: (A) 

Materially and adversely affects, or is 

likely to materially and adversely affect, 

the ability of the Government or any 

other party to effectively implement, or 

ensure the effective implementation of, 

the Program or any Project or otherwise 

to carry out its responsibilities or 

obligations under or in furtherance of 

this Compact or any Supplemental 

Agreement or to perform its obligations 

under or in furtherance of this Compact 

or any Supplemental Agreement or to 

exercise its rights thereunder; (B) makes 

it improbable that the Objectives will be 

achieved during the Compact Term; (C) 

materially and adversely affects the 

Program Assets or any Permitted 

Account; or (D) constitutes misconduct 

injurious to MCC, or constitutes a fraud 

or a felony, by the Government, any 

Government Affiliate, Permitted 

Designee or Provider, or any officer, 

director, employee, agent, 

representative, Affiliate, contractor, 

grantee, subcontractor or sub-grantee of 

any of the foregoing; 

(xi) The Government, any Permitted 

Designee or Provider has taken any 

action or omission or engaged in any 

activity in violation of, or inconsistent 

with, the requirements of this Compact 

or any Supplemental Agreement to 

which the Government or any Permitted 

Designee or Provider is a party; 

(xii) There has occurred a failure to 

meet a condition precedent or series of 

conditions precedent or any other 

requirements or conditions in 

connection with MCC Disbursement as 

set out in and in accordance with any 

Supplemental Agreement between the 

Parties; or 

(xiii) Any MCC Funding, Accrued 

Interest or Program Asset becomes 

subject to a Lien without the prior 

approval of MCC, and the Government 

fails to obtain the release of such Lien 

(at its own expense and not with MCC 

Funding, Accrued Interest, or Program 

Assets) within thirty (30) days after the 

imposition of such Lien. 

(c) MCC may reinstate any suspended 

or terminated MCC Funding under this 


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Compact or any Supplemental 

Agreement if MCC determines, in its 

sole discretion, that the Government or 

other relevant party has demonstrated a 

commitment to correcting each 

condition for which MCC Funding was 

suspended or terminated. 

(d) The authority to suspend or 

terminate this Compact or any MCC 

Funding under this Section 5.4 includes 

the authority to suspend or terminate 

any obligations or sub-obligations 

relating to MCC Funding under any 

Supplemental Agreement without any 

liability to MCC whatsoever. 

(e) All MCC Disbursements and ReDisbursements shall cease upon 

expiration, suspension, or termination 

of this Compact; provided, however, (i) 

reasonable expenditures for goods, 

services and works that are properly 

incurred under or in furtherance of this 

Compact before such expiration, 

suspension or termination of this 

Compact and (ii) reasonable 

expenditures for goods and services 

(including certain administrative 

expenses) properly incurred within one 

hundred and twenty (120) days after 

such expiration, suspension or 

termination of the Compact in 

connection with the winding up of the 

Program may be paid from MCC 

Funding, provided, further, that, in 

cases described in clauses (i) and (ii), 

the request for such payment shall be 

(A) properly submitted within ninety 

(90) days after such expiration, 

suspension or termination of the 

Compact and (B) subject to the prior 

written consent of MCC. 

(f) Other than the payments permitted 

pursuant to Section 5.4(e), in the event 

of the suspension or termination of this 

Compact or any Supplemental 

Agreement, in whole or in part, the 

Government, at MCC’s sole discretion, 

shall suspend, for the period of the 

suspension, or terminate, or ensure the 

suspension or termination of, as 

applicable, any obligation or subobligation of the Parties to provide 

financial or other resources under this 

Compact or any Supplemental 

Agreement, or to the suspended or 

terminated portion of this Compact or 

such Supplemental Agreement, as 

applicable. In the event of such 

suspension or termination, the 

Government shall use its best efforts to 

suspend or terminate, or ensure the 

suspension or termination of, as 

applicable, all such noncancelable 

commitments related to the suspended 

or terminated MCC Funding. Any 

portion of this Compact or any such 

Supplemental Agreement that is not 

suspended or terminated shall remain in 

full force and effect. 

(g) Upon the full or partial suspension 

or termination of this Compact or any 

MCC Funding, MCC may, at its expense, 

direct that title to Program Assets be 

transferred to MCC if such Program 

Assets are in a deliverable state; 

provided, for any Program Asset(s) 

partially purchased or funded (directly 

or indirectly) by MCC Funding, the 

Government shall reimburse to a United 

States Government account designated 

by MCC the cash equivalent of the 

portion of the value of such Program 

Asset(s), such value as determined by 

MCC. 

(h) Prior to the expiration of this 

Compact or upon termination of this 

Compact, the Parties shall consult in 

good faith with a view to reaching an 

agreement in writing on (i) the postCompact Term treatment of MiDA, (ii) 

the process for ensuring the refunds of 

MCC Disbursements that have not yet 

been released from a Permitted Account 

through a valid Re-Disbursement or 

otherwise committed in accordance 

with Section 5.4(e), or (iii) any other 

matter related to the winding up of the 

Program and this Compact. 

Section 5.5 Privileges and Immunities 

MCC is an agency of the Government 

of the United States of America and its 

personnel assigned to Ghana will be 

notified pursuant to the Vienna 

Convention on Diplomatic Relations as 

members of the mission of the Embassy 

of the United States of America. The 

Government shall ensure that any 

personnel of MCC so notified, including 

individuals detailed to or contracted by 

MCC, and the members of the families 

of such personnel, while such personnel 

are performing duties in Ghana, shall 

enjoy the privileges and immunities that 

are enjoyed by a member of the United 

States Foreign Service, or the family of 

a member of the United States Foreign 

Service so notified, as appropriate, of 

comparable rank and salary of such 

personnel, if such personnel or the 

members of the families of such 

personnel are not a national of, or 

permanently resident in, Ghana. 

Section 5.6 Attachments 

Any annex, schedule, exhibit, table, 

appendix or other attachment expressly 

attached hereto (collectively, the 

‘‘Attachments’’) is incorporated herein 

by reference and shall constitute an 

integral part of this Compact. 

Section 5.7 Inconsistencies 

(a) Conflicts or inconsistencies 

between any parts of this Compact shall 

be resolved by applying the following 

descending order of precedence: 

(i) Articles I through V, and 

(ii) Any Attachments. 

(b) In the event of any conflict or 

inconsistency between this Compact 

and any Supplemental Agreement 

between the Parties, the terms of this 

Compact shall prevail. In the event of 

any conflict or inconsistency between 

any Supplemental Agreement between 

the Parties and any other Supplemental 

Agreement, the terms of the 

Supplemental Agreement between the 

Parties shall prevail. In the event of any 

conflict or inconsistency between 

Supplemental Agreements between any 

parties, the terms of a more recently 

executed Supplemental Agreement 

between such parties shall take 

precedence over a previously executed 

Supplemental Agreement between such 

parties. In the event of any 

inconsistency between a Supplemental 

Agreement between the Parties and any 

Implementation Document, the terms of 

the relevant Supplemental Agreement 

shall prevail. 

Section 5.8 Indemnification 

The Government shall indemnify and 

hold MCC and any MCC officer, 

director, employee, Affiliate, contractor, 

agent or representative (each of MCC 

and any such persons, an ‘‘MCC 

Indemnified Party’’) harmless from and 

against, and shall compensate, 

reimburse and pay such MCC 

Indemnified Party for, any liability or 

other damages which (a) are directly or 

indirectly suffered or incurred by such 

MCC Indemnified Party, or to which any 

MCC Indemnified Party may otherwise 

become subject, regardless of whether or 

not such damages relate to any thirdparty claim, and (b) arise from or as a 

result of the negligence or willful 

misconduct of the Government, any 

Government Affiliate, MiDA or any 

Permitted Designee, directly or 

indirectly connected with, any activities 

(including acts or omissions) 

undertaken in furtherance of this 

Compact; provided, however, the 

Government shall apply national funds 

to satisfy its obligations under this 

Section 5.8 and no MCC Funding, 

Accrued Interest, or Program Asset may 

be applied by the Government in 

satisfaction of its obligations under this 

Section 5.8. 

Section 5.9 Headings 

The Section and Subsection headings 

used in this Compact are included for 

convenience only and are not to be 

considered in construing or interpreting 

this Compact. 

Section 5.10 Interpretation 

(a) Any reference to the term 

‘‘including’’ in this Compact shall be 


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deemed to mean ‘‘including without 

limitation’’ except as expressly provided 

otherwise. 

(b) Any reference to activities 

undertaken ‘‘in furtherance of this 

Compact’’ or similar language shall 

include activities undertaken by the 

Government, any Government Affiliate, 

any Permitted Designee, any Provider or 

any other third party receiving MCC 

Funding involved in carrying out the 

purposes of this Compact or any 

Supplemental Agreement, including 

their respective directors, officers, 

employees, Affiliates, contractors, subcontractors, grantees, sub-grantees, 

representatives or agents, whether 

pursuant to the terms of this Compact, 

any Supplemental Agreement or 

otherwise. 

(c) References to ‘‘day’’ or ‘‘days’’

shall be calendar days unless provided 

otherwise. 

(d) Defined terms importing the 

singular also include the plural, and 

vice versa. 

Section 5.11 Signatures 

A signature to this Compact or an 

amendment to this Compact pursuant to 

Section 5.3 shall be delivered only as an 

original signature. With respect to all 

other signatures, a signature delivered 

by facsimile or electronic mail in 

accordance with Section 5.1 shall be 

deemed an original signature, and the 

Parties hereby waive any objection to 

such signature or to the validity of the 

underlying document, certificate, 

notice, instrument or agreement on the 

basis of the signature’s legal effect, 

validity or enforceability solely because 

it is in facsimile or electronic form. 

Without limiting the foregoing, a 

signature on an audit report or a 

signature evidencing any modification 

identified in Sections 2(b) and (4)(a)(iv) 

of Annex I, Section 4 of Annex II or 

Section 5(c) Annex III shall be followed 

by an original in overnight express mail. 

Such signature shall be accepted by the 

receiving Party as an original signature 

and shall be binding on the Party 

delivering such signature. 

Section 5.12 Designation 

MCC may designate any Affiliate, 

agent, or representative to implement, in 

whole or in part, its obligations, and 

exercise any of its rights, under this 

Compact or any Supplemental 

Agreement between the Parties. MCC 

shall inform the Government of any 

such designation. 

Section 5.13 Survival 

Any Government Responsibilities, 

covenants, or obligations or other 

responsibilities to be performed by the 

Government after the Compact Term 

shall survive the termination or 

expiration of this Compact and expire in 

accordance with their respective terms. 

Notwithstanding the termination or 

expiration of this Compact, the 

following provisions shall remain in 

force: Sections 2.2, 2.3, 2.5, 3.2, 3.3, 3.4, 

3.5, 3.8, 3.9 (for one year), 3.12, 5.1, 5.2, 

5.4(d), 5.4(e) (for one hundred and 

twenty (120) days), 5.4(f), 5.4(g), 5.4(h), 

5.5, 5.6, 5.7, 5.8, 5.9, 5.10, 5.11, 5.12, 

this Section 5.13, 5.14, and 5.15. 

Section 5.14 Consultation 

Either Party may, at any time, request 

consultations relating to the 

interpretation or implementation of this 

Compact or any Supplemental 

Agreement between the Parties. Such 

consultations shall begin at the earliest 

possible date. The request for 

consultations shall designate a 

representative for the requesting Party 

with the authority to enter consultations 

and the other Party shall endeavor to 

designate a representative of equal or 

comparable rank. If such representatives 

are unable to resolve the matter within 

twenty (20) days from the 

commencement of the consultations, 

then each Party shall forward the 

consultation to the Principal 

Representative or such other 

representative of comparable or higher 

rank. The consultations shall last no 

longer than forty five (45) days from 

date of commencement. If the matter is 

not resolved within such time period, 

either Party may terminate this Compact 

pursuant to Section 5.4(a). The Parties 

shall enter any such consultations 

guided by the principle of achieving the 

Compact Goal in a timely and costeffective manner and by the principles 

of international law. Any dispute arising 

under or related to this Compact shall 

be determined exclusively through the 

consultation mechanism set forth in this 

Section 5.14. 

Section 5.15 MCC Status 

MCC is a United States Government 

corporation acting on behalf of the 

United States Government in the 

implementation of this Compact. As 

such, MCC has no liability under this 

Compact, is immune from any action or 

proceeding arising under or relating to 

this Compact and the Government 

hereby waives and releases all claims 

related to any such liability. In matters 

arising under or relating to this 

Compact, MCC is not subject to the 

jurisdiction of the courts or other body 

of Ghana or any other jurisdiction and 

all disputes arising under or relating to 

this Compact shall be determined in 

accordance with Section 5.14. 

Section 5.16 Language 

This Compact is prepared in English 

and in the event of any ambiguity or 

conflict between this official English 

version and any other version translated 

into any language for the convenience of 

the Parties, this official English version 

shall prevail. 

Section 5.17 Publicity; Information 

and Marking 

The Government shall give 

appropriate publicity to this Compact as 

a program to which the United States, 

through MCC, has contributed, 

including by posting this Compact, and 

any amendments thereto, on the Web 

site operated by MiDA (‘‘MiDA Web 

site’’), identifying Program activity sites, 

and marking Program Assets; provided, 

any announcement, press release or 

statement regarding MCC or the fact that 

MCC is funding the Program or any 

other publicity materials referencing 

MCC, including the publicity described 

in this Section 5.17, shall be subject to 

prior approval by MCC and shall be 

consistent with any instructions 

provided by MCC from time to time in 

relevant Implementation Letters. Upon 

the termination or expiration of this 

Compact, MCC may request the removal 

of, and the Government shall, upon 

such request, remove, or cause the 

removal of, any such markings and any 

references to MCC in any publicity 

materials or on the MiDA Web site. 

MCC may post this Compact, and any 

amendments thereto, on the Web site of 

MCC. MCC shall have the right to use 

any information or data provided in any 

report or document provided to MCC for 

the purpose of satisfying MCC reporting 

requirements or in any other manner. 

In Witness Whereof, the undersigned, 

duly authorized by their respective 

governments, have signed this Compact 

this 1st day of August, 2006 and this 

Compact shall enter into force in 

accordance with Section 1.3. 

Done at Washington, DC, in English. 

For the United States of America, acting 

through the Millennium Challenge 

Corporation, 

Name: John J. Danilovich, 

Title: Chief Executive Officer. 

For the Government of the Republic of 

Ghana, 

Name: Dr. P. Kwesi Nduom, 

Title: Minister of Public Sector Reform. 

Exhibit A—Definitions 

The following compendium of 

capitalized terms that are used herein is 

provided for the convenience of the 

reader. To the extent that there is a 

conflict or inconsistency between the 

definitions in this Exhibit A and the 


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definitions elsewhere in the text of this 

Compact, the definition elsewhere in 

this Compact shall prevail over the 

definition in this Exhibit A. 

Accrued Interest shall have the 

meaning set forth in Section 2.1(c). 

Act shall have the meaning set forth 

in Section 2.1(a)(iii). 

Additional Representative shall have 

the meaning set forth in Section 5.2. 

ADR shall have the meaning set forth 

in Section 2(c)(ii) of Schedule 1 to 

Annex I. 

Affiliate means the affiliate of a party, 

which is a person or entity that controls, 

is controlled by, or is under the same 

control as the party in question, whether 

by ownership or by voting, financial or 

other power or means of influence. 

References to Affiliate herein shall 

include any of their respective directors, 

officers, employees, affiliates, 

contractors, sub-contractors, grantees, 

sub-grantees, representatives, and 

agents. 

Afram Basin Zone shall have the 

meaning set forth in Section 1(a) of 

Annex I. 

Agriculture Project shall have the 

meaning set forth in the Preamble to 

Schedule 1 to Annex I. 

Agriculture Project Objective shall 

have the meaning set forth in Section 

1.1(a). 

Attachments shall have the meaning 

set forth in Section 5.6. 

Audit Guidelines shall have the 

meaning set forth in Section 3.8(d)(i). 

Audit Plan shall have the meaning set 

forth in Section 3.8(d)(iii). 

Auditor shall have the meaning set 

forth in Section 3(h) of Annex I. 

Auditor/Reviewer Agreement shall 

have the meaning set forth in Section 

3(h) of Annex I. 

Bank(s) means any bank holding a 

Permitted Account. 

Bank Agreement shall have the 

meaning set forth in Section 4(d) of 

Annex I. 

Beneficiaries shall have the meaning 

set forth in Section 2(a) of Annex III. 

Bilateral Agreement shall have the 

meaning set forth in Section 2.6. 

Board shall have the meaning set forth 

in Section 3(d)(i)(2) of Annex I. 

CEO shall have the meaning set forth 

in Section 3(d)(iii)(2) of Annex I. 

Chair shall have the meaning set forth 

in Section 3(d)(ii)(2)(A)(i) of Annex I. 

Civil Member shall have the meaning 

set forth in Section 3(d)(ii)(2)(A) of 

Annex I. 

Civil Society Stakeholders shall have 

the meaning set forth in Section 3(e)(iv) 

of Annex I. 

Commercial Training Activity shall 

have the meaning set forth in Section 

2(a) of Schedule 1 to Annex I. 

Community Services Activity shall 

have the meaning set forth in Section 

2(b) of Schedule 3 to Annex I. 

Compact shall have the meaning set 

forth in the Preamble. 

Compact Goal shall have the meaning 

set forth in Section 1.1. 

Compact Goal Indicator shall have the 

meaning set forth in Section 2(a) of 

Annex III. 

Compact Implementation Funding 

shall have the meaning set forth in 

Section 2.1(a)(iii). 

Compact Records shall have the 

meaning set forth in Section 3.8(b). 

Compact Reports shall have the 

meaning set forth in Section 

3(d)(ii)(3)(C) of Annex I. 

Compact Term shall have the 

meaning set forth in Section 1.3. 

Covered Provider shall have the 

meaning set forth in Section 3.8(d)(iv). 

Credit Activity shall have the meaning 

set forth in Section 2(e) of Schedule 1 

to Annex I. 

DACF shall have the meaning set forth 

in Section 2(b)(ii) of Schedule 3 to 

Annex I. 

Designated Rights and 

Responsibilities shall have the meaning 

set forth in Section 3.2(c). 

Detailed Budget shall have the 

meaning set forth in Section 4(a)(ii) of 

Annex I. 

DFID shall have the meaning set forth 

in Section 4 of Schedule 2 to Annex I. 

DFR shall have the meaning set forth 

in Section 6 of Schedule 2 to Annex I. 

Disbursement Agreement shall have 

the meaning set forth in the Preamble to 

Annex I. 

DUR shall have the meaning set forth 

in Section 6 of Schedule 2 to Annex I. 

EIA shall have the meaning set forth 

in Section 6(b) of Annex I. 

EMP shall have the meaning set forth 

in Section 6(b) of Annex I. 

eNGO Invitee shall have the meaning 

set forth in Section 3(d)(ii)(2)(F) of 

Annex I. 

Entry into Force shall have the 

meaning set forth in Section 1.3. 

Environmental Guidelines shall have 

the meaning set forth in Section 2.3(d). 

EU shall have the meaning set forth in 

Section 1 of Schedule 1 to Annex I. 

Evaluation Component shall have the 

meaning set forth in Section 1 of Annex 

III. 

Exempt Uses shall have the meaning 

set forth in Section 2.3(e)(ii). 

FBOs shall have the meaning set forth 

in Section 2 of Schedule 1 to Annex I. 

Feeder Roads Activity shall have the 

meaning set forth in Section 2(f) of 

Schedule 1 to Annex I. 

Ferry Activity shall have the meaning 

set forth in Section 2(c) of Schedule 2 

to Annex I. 

Final Evaluation shall have the 

meaning set forth in Section 3(a) of 

Annex III. 

Financial Plan Annex shall have the 

meaning set forth in the Preamble to 

Annex II. 

Financial Services Activity shall have 

the meaning set forth in Section 2(c) of 

Schedule 3 to Annex I. 

Fiscal Accountability Plan shall have 

the meaning set forth in Section 4(c) of 

Annex I. 

Fiscal Agent shall have the meaning 

set forth in Section 3(g) of Annex I. 

Fiscal Agent Agreement shall have the 

meaning set forth in Section 3(g) of 

Annex I. 

GDP shall have the meaning set forth 

in Section 1(a) of Annex I. 

GHA shall have the meaning set forth 

in Section 6 of Schedule 2 to Annex I. 

Ghana means the Republic of Ghana. 

Governance Agreement shall have the 

meaning set forth in Section 4.1(c). 

Governing Document shall have the 

meaning set forth in Section 3(c)(i)(9) of 

Annex I. 

Government shall have the meaning 

set forth in the Preamble. 

Government Affiliate means an 

Affiliate, ministry, bureau, department, 

agency, government, corporation or any 

other entity chartered or established by 

the Government. References to 

Government Affiliate shall include any 

of their respective directors, officers, 

employees, affiliates, contractors, subcontractors, grantees, sub-grantees, 

representatives, and agents. 

Government Member shall have the 

meaning set forth in Section 

3(d)(ii)(2)(A) of Annex I. 

Government Party shall have the 

meaning set forth in Section 3.8(e)(i). 

Government Responsibilities shall 

have the meaning set forth in Section 

3.2(a). 

GPRS shall have the meaning set forth 

in Section 1(a) of Annex I. 

GRF shall have the meaning set forth 

in Section 6 of Schedule 2 to Annex I. 

Implementation Document shall have 

the meaning set forth in Section 3(a) of 

Annex I. 

Implementation Letter shall have the 

meaning set forth in Section 3.5(a). 

Implementing Entity shall have the 

meaning set forth in Section 3(f) of 

Annex I. 

Implementing Entity Agreement shall 

have the meaning set forth in Section 

3(f) of Annex I. 

Indicators shall have the meaning set 

forth in Section 2(a) of Annex III. 

Inspector General shall have the 

meaning set forth in Section 3.8(d)(i). 

Interim Evaluations shall have the 

meaning set forth in Section 3(b) of 

Annex III. 


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Intervention Zone shall have the 

meaning set forth in Section 1(a) of 

Annex I. 

IPPC shall have the meaning set forth 

in Section 2(d) of Schedule 1 to Annex 

I. 

Irrigation Activity shall have the 

meaning set forth in Section 2(b) of 

Schedule 1 to Annex I. 

Land Activity shall have the meaning 

set forth in Section 2(c) of Schedule 1 

to Annex I. 

LAP shall have the meaning set forth 

in Section 2(c) of Schedule 1 to Annex 

I. 

Lien shall have the meaning set forth 

in Section 2.3(g). 

Local Account shall have the meaning 

set forth in Section 4(d)(ii) of Annex I. 

M&E shall have the meaning set forth 

in Section 3 of Annex I. 

M&E Annex shall have the meaning 

set forth in the Preamble to Annex III. 

M&E Plan shall have the meaning set 

forth in Section 2(e) of Annex I. 

Management shall have the meaning 

set forth in Section 3(d)(i)(2) of Annex 

I. 

Material Agreement shall have the 

meaning set forth in Section 3(c)(i)(4) of 

Annex I. 

Material Re-Disbursement shall have 

the meaning set forth in Section 

3(c)(i)(7) of Annex I. 

MCA shall have the meaning set forth 

in the Recitals. 

MCA Eligibility Criteria shall have the 

meaning set forth in Section 3.7. 

MCC shall have the meaning set forth 

in the Preamble. 

MCC Disbursement shall have the 

meaning set forth in Section 2.1(b)(i). 

MCC Disbursement Request shall have 

the meaning set forth in Section 4(b) of 

Annex I. 

MCC Funding shall have the meaning 

set forth in Section 2.1(a). 

MCC Indemnified Party shall have the 

meaning set forth in Section 5.8. 

MCC Representative shall have the 

meaning set forth in Section 

3(d)(ii)(2)(B)(i) of Annex I. 

MiDA shall have the meaning set forth 

the Preamble to Annex I. 

MiDA Web site shall have the 

meaning set forth in Section 5.17. 

MOFA shall have the meaning set 

forth in Section 2(a)(i) of Schedule 1 to 

Annex I. 

Monitoring Component shall have the 

meaning set forth in Section 1 of Annex 

III. 

MoT shall have the meaning set forth 

in Section 6 of Schedule 2 to Annex I. 

Multi-Year Financial Plan shall have 

the meaning set forth in Section 4(a)(i) 

of Annex I. 

Multi-Year Financial Plan Summary 

shall have the meaning set forth in 

Section 1 to Annex II. 

N1 Activity shall have the meaning set 

forth in Section 2(a) of Schedule 2 to 

Annex I. 

N1 Highway shall have the meaning 

set forth in Section 2 of Schedule 2 to 

Annex I. 

NGOs shall have the meaning set forth 

in Section 1(b) of Annex I. 

Northern Zone shall have the meaning 

set forth in Section 1(a) of Annex I. 

Objective(s) shall have the meaning 

set forth in Section 1.1. 

Objective Indicator shall have the 

meaning set forth in Section 2(a) of 

Annex III. 

Observer shall have the meaning set 

forth in Section 3(d)(ii)(2)(B) of Annex 

I. 

Officer shall have the meaning set 

forth in Section 3(d)(iii)(1) of Annex I. 

Outcome shall have the meaning set 

forth in Section 2(a) of Annex III. 

Outcome Indicator shall have the 

meaning set forth in Section 2(a) of 

Annex III. 

Party or Parties shall have the 

meaning set forth in the Preamble. 

Permitted Account(s) shall have the 

meaning set forth in Section 4(d) of 

Annex I. 

Permitted Designee shall have the 

meaning set forth in Section 3.2(c). 

Pledge shall have the meaning set 

forth in Section 3(c)(i)(8) of Annex I. 

Post-Harvest Activity shall have the 

meaning set forth in Section 2(d) of 

Schedule 1 to Annex I. 

PPB shall have the meaning set forth 

in Section 4 of Schedule 3 to Annex I. 

PRDs shall have the meaning set forth 

in Section 2(c)(ii) of Schedule 1 to 

Annex I. 

Principal Representative shall have 

the meaning set forth in Section 5.2. 

Procurement Agent shall have the 

meaning set forth in Section 3(i) of 

Annex I. 

Procurement Agent Agreement shall 

have the meaning set forth in Section 

3(i) of Annex I. 

Procurement Agreement shall have 

the meaning set forth in Section 3.6(a). 

Procurement Capacity Activity shall 

have the meaning set forth in Section 

2(a) of Schedule 3 to Annex I. 

Procurement Guidelines shall have 

the meaning set forth in Section 3.6(a). 

Procurement Plan shall have the 

meaning set forth in Section 3(i) of 

Annex I. 

Program shall have the meaning set 

forth in the Recitals. 

Program Annex shall have the 

meaning set forth in the Preamble to 

Annex I. 

Program Assets shall have the 

meaning set forth in Section 2.3(e)(iii). 

Program Objective shall have the 

meaning set forth in Section 1.1. 

Project shall have the meaning set 

forth in Section 1.2. 

Project Activity shall have the 

meaning set forth in Section 2(b) of 

Annex I. 

Project Objective shall have the 

meaning set forth in Section 1.1. 

Proposal shall have the meaning set 

forth in the Recitals. 

Provider shall have the meaning set 

forth in Section 2.4(b). 

RAP shall have the meaning set forth 

in Section 6(b) of Annex I. 

Re-Disbursement shall have the 

meaning set forth in Section 2.1(b)(ii). 

Reviewer shall have the meaning set 

forth in Section 3(h) of Annex I. 

RICU shall have the meaning set forth 

in Section 2(b)(i) of Schedule 3 to 

Annex I. 

RSDP shall have the meaning set forth 

in Section 1 of Schedule 2 to Annex I. 

Rural Development Project shall have 

the meaning set forth in the Preamble to 

Schedule 3 to Annex I. 

Rural Development Project Objective 

shall have the meaning set forth in 

Section 1.1(c). 

SEA shall have the meaning set forth 

in Section 6(a) of Annex I. 

SMEs shall have the meaning set forth 

in Section 2(a)(ii) of Schedule 1 of 

Annex I. 

Southern Zone shall have the 

meaning set forth in Section 1(a) of 

Annex I. 

Special Account shall have the 

meaning set forth in Section 4(d)(i) of 

Annex I. 

Supplemental Agreement shall have 

the meaning set forth in Section 3.5(b). 

Supplemental Agreement between the 

Parties means any agreement between 

MCC on the one hand, and the 

Government, any Government Affiliate 

or Permitted Designee on the other 

hand. 

Supplemental Agreement Term 

Sheets shall have the meaning set forth 

in Section 4.1(d). 

Target shall have the meaning set 

forth in Section 2(a) of Annex III. 

Tax(es) shall have the meaning set 

forth in Section 2.3(e)(i). 

TIPCEE shall have the meaning set 

forth in Section 5 of Schedule 1 to 

Annex I. 

TQM shall have the meaning set forth 

in Section 2 of Schedule 2 to Annex I. 

Transportation Project shall have the 

meaning set forth in the Preamble to 

Schedule 2 to Annex I. 

Transportation Project Objective shall 

have the meaning set forth in Section 

1.1(b). 

Trunk Roads Activity shall have the 

meaning set forth in Section 2(b) of 

Schedule 2 to Annex I. 


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1Some of the N1 Activity will take place in the 

district of Ga West. 

United States Dollars, US$ or $ shall 

have the meaning set forth in Section 

2.1(d). 

United States Government means any 

branch, agency, bureau, government 

corporation, government chartered 

entity or other body of the Federal 

government of the United States. 

USAID shall have the meaning set 

forth in Section 5 of Schedule 1 to 

Annex I. 

VLTC shall have the meaning set forth 

in Section 2 of Schedule 2 to Annex I. 

Work Plan shall have the meaning set 

forth in Section 3(a) of Annex I. 

Zonal Advisory Committee shall have 

the meaning set forth in Section 3(e)(i) 

of Annex I. 

Exhibit B—List of Certain Supplemental 

Agreements 

1. Fiscal Agent Agreement. 

2. Procurement Agent Agreement. 

3. Bank Agreement. 

4. Implementing Entity Agreement. 

Schedule 2.1(a)(iii)—Compact 

Implementation Funding 

The Compact Implementation 

Funding provided pursuant to Section 

2.1(a)(iii) of this Compact shall support 

the following activities: 

(a) Three strategic environmental 

assessments, one for each Intervention 

Zone in connection with the 

requirements of Section 6 of Annex I. 

(b) Development or refinement of FBO 

and staple food and horticulture crop 

curriculum (including production of 

materials) and related training and 

certification of MOFA and private sector 

extension agents, training in set-up and 

launching of effective technology 

demonstrations, and related 

international tours, all in connection 

with the Commercial Training Activity 

under Section 2(a) of Schedule 1 of 

Annex I. 

(c) Community sensitization and 

information gathering, inventorying of 

land rights, and production of 

composite maps of community 

boundaries and parcels in the rural 

areas of Awutu Efutu Senya to pre-test 

the first steps in the pilot land 

registration activity, accompanied by a 

gender consultant to provide guidance 

on gender issues and women’s 

participation, and coordinated by a 

supervisory consultant, in connection 

with the Land Activity under Section 

2(c) of Schedule 1 of Annex I. 

(d) A feasibility study; and an EIA, an 

EMP and a RAP, each as may be 

necessary, and design, in connection 

with the Feeder Roads Activity under 

Section 2(f)(ii)(1) of Schedule 1 of 

Annex I. 

(e) A feasibility study; and an EIA, an 

EMP and a RAP, each as may be 

necessary, and design, in connection 

with the N1 Activity under Section 

2(a)(ii)(1) of Schedule 2 of Annex I. 

(f) A feasibility study; and an EIA, an 

EMP and a RAP, each as may be 

necessary, and design, in connection 

with the Trunk Roads Activity under 

Section 2(b)(ii)(2) of Schedule 2 of 

Annex I. 

(g) A feasibility study; and an EIA, an 

EMP and a RAP, each as may be 

necessary, and design, in connection 

with the Ferry Activity under Section 

2(c)(vii)(1) of Schedule 2 of Annex I. 

(h) Start-up costs such as staff salaries 

and administrative support expenses of 

MiDA (or mutually acceptable 

Government Affiliate) such as rent, 

computers and other information 

technology or capital equipment. 

The total amount of funds disbursed 

in accordance with Section 2.1(a)(iii) 

shall not exceed the amount set forth in 

Section 2.1(a)(iii). 

Annex I—Program Description 

This Annex I to the Compact (the 

‘‘Program Annex’’) generally describes 

the Program that MCC Funding will 

support in Ghana during the Compact 

Term and the results to be achieved 

from the investment of MCC Funding. 

Prior to any MCC Disbursement or ReDisbursement, including for the Projects 

described herein, MCC, the Government 

(or a mutually acceptable Government 

Affiliate) and Millennium Development 

Authority (‘‘MiDA’’) shall enter into a 

Supplemental Agreement that (i) further 

specifies the terms and conditions of 

such MCC Disbursements and ReDisbursements, (ii) is in a form and 

substance mutually satisfactory to the 

Parties and (iii) is signed by the 

Principal Representative of each Party 

(or in the case of a Government Affiliate, 

the principal representative of such 

Government Affiliate) and of MiDA (the 

‘‘Disbursement Agreement’’). 

Except as specifically provided 

herein, the Parties may amend this 

Program Annex only by written 

agreement signed by the Principal 

Representative of each Party. Each 

capitalized term in this Program Annex 

shall have the same meaning given such 

term elsewhere in this Compact. Unless 

otherwise expressly stated, each Section 

reference herein is to the relevant 

Section of the main body of the 

Compact. 

1. Background and Ghana Development 

Strategy; Consultative Process 

(a) Background; Ghana Development 

Strategy. Bordering the Gulf of Guinea 

and located between Coˆte d’Ivoire and 

Togo, Ghana is a West African country 

of 22 million people. Approximately a 

third of its population lives in poverty. 

Its gross domestic product (‘‘GDP’’) is 

growing at about 6% per year. Ghana’s 

agricultural sector, the backbone of its 

economy, plays an important role in the 

socio-economic development of the 

country by ensuring food security for its 

people, providing raw material for local 

industries and offering employment and 

income for a large portion of its 

population. 

In 2003, the Government developed, 

through a broad consultative process, 

the Ghana Poverty Reduction Strategy 

(the ‘‘GPRS’’), a comprehensive 

development policy framework to 

support poverty reduction in Ghana 

over a three-year period from 2003 to 

2005. The GPRS identified, as one of the 

key strategies for poverty reduction, 

increasing the production from, and 

employment in, the agricultural sector. 

Specifically, the strategy entailed, 

among others, modernizing the 

agricultural practices so as to increase 

the production of staple crops and to 

encourage additional agro-processing 

and value-added production of highvalue agricultural crops, while at the 

same time reforming the land 

acquisition process. The GPRS indicated 

that such modernization efforts should 

be supported by developing both 

transportation and social infrastructure 

targeted on certain areas of the country 

in order to ensure the enhanced delivery 

of educational, health and other social 

services to such areas. 

Consistent with the aims of the GPRS, 

the Program consists of a series of 

strategic investments in an effort to 

modernize Ghana’s agricultural sector, 

together with investments in developing 

transportation infrastructure and rural 

institutions in the following three areas 

of the country (each, an ‘‘Intervention 

Zone’’): 1

• The Northern area consisting of the 

following five districts: Savelugu 

Nanton, Tolon Kumbungu, Tamale, 

West Mamprusi and Karaga (the 

‘‘Northern Zone’’); 

• The Afram Basin area consisting of 

the following six districts: Ejura 

Sekyedumasi, Kwahu South, 

Fanteakwa, Afram Plains, Sekyere East 

and Sekyere West (the ‘‘Afram Basin 

Zone’’); and 

• The Southern Horticultural Belt 

area consisting of the following twelve 

districts: Gomoa, Awutu Efutu Senya, 

Akuapim South, Manya Krobo, Dangme 

West, Yilo Krobo, North Dayi, Hohoe, 

Ketu, Keta, South Tongu and Akatsi (the 

‘‘Southern Zone’’). 


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(b) Consultative Process. In order to 

develop the Proposal, beginning in 

2004, the Government held a series of 

consultations with various stakeholders 

at both the national and local levels, in 

which numerous policymakers, farmers, 

FBOs, exporters, industry associations, 

environmental organizations, gender 

organizations, the media, and other civil 

society groups participated. The 

objective of the consultations was the 

selection, as well as the prioritization, of 

the proposed interventions under the 

MCA assistance that are consistent with 

the GPRS and complement existing 

donor-supported and governmentfunded programs for poverty reduction 

in Ghana. 

These consultations revealed that the 

proposed interventions should 

primarily target the agricultural sector, 

with a special focus on the production 

of high-value crops for exports. 

Subsequently, the Government formed a 

team of managers and sector experts to 

develop further the details of the 

proposed interventions. 

As the proposed interventions became 

better defined, additional consultations 

with the stakeholders were held in each 

district within each Intervention Zone 

to discuss the exact type of the 

interventions, their locations, the 

arrangements for their implementations 

as well as the ownership structure for 

certain infrastructure resulting from the 

interventions. The non-governmental 

organizations (‘‘NGOs’’) representing the 

environmental and social sector 

participated in the early rounds of these 

additional consultations and influenced 

the design of the interventions 

eventually included in the Proposal. 

During MCC’s due diligence of the 

Proposal, the Government made 

additional efforts to consult the various 

NGOs representing the environment and 

social sector as well as the farmers and 

FBOs. MCC observed the consultations 

both at the local level and the national 

level. This consultative process is still 

ongoing, and is expected to continue 

through the Compact Term. 

2. Overview 

(a) Program Objective. The Program 

consists of a series of specific and 

complementary Projects that the Parties 

expect will achieve the two-fold 

Program Objective, thus advancing the 

Compact Goal. Specifically, the two-fold 

Program Objective is, first, to increase 

the production and productivity of highvalue cash and food staple crops in the 

three Intervention Zones and, second, to 

enhance the competitiveness of Ghana’s 

agricultural products in both regional 

and international markets. To this end, 

the Program aims to strengthen the 

contribution of other agricultural subsectors to the growth of the economy 

and to reduce, through diversification, 

risks of not achieving consistently 

strong agricultural performance. As 

such, the Program Objective is fully 

consistent with, and directly supports, 

the GPRS. 

(b) Projects. The Parties have 

identified the Projects that the 

Government will implement, or cause to 

be implemented, using MCC Funding to 

advance each Project Objective. Each 

Project is described in the Schedules to 

this Program Annex. The Schedules to 

this Program Annex also identify one or 

more of the activities that will be 

undertaken in furtherance of each 

Project (each, a ‘‘Project Activity’’) as 

well as the various activities within 

each Project Activity. Notwithstanding 

anything to the contrary in this 

Compact, the Parties may agree to 

modify, amend, terminate or suspend 

these Projects or to create a new project 

by written agreement signed by the 

Principal Representative of each Party 

without amending this Compact; 

provided, however, any such 

modification or amendment of a Project 

or creation of a new project is (i) 

consistent with the Objectives; (ii) does 

not cause the amount of MCC Funding 

to exceed the aggregate amount 

specified in Section 2.1(a) of this 

Compact; (iii) does not cause the 

Government’s responsibilities or 

contribution of resources to be less than 

specified in Section 2.2 of this Compact 

or elsewhere in this Compact; and (iv) 

does not extend the Compact Term. 

(c) Beneficiaries. The intended 

beneficiaries of each Project are 

described in the respective Schedule to 

this Program Annex and Annex III to the 

extent identified as of the date hereof. 

The intended beneficiaries shall be 

identified more precisely during the 

initial phases of implementation of the 

Program. The Government shall provide 

to MCC information on the population 

of the areas in which the Projects will 

be active, disaggregated by gender, 

income level and age. The Parties shall 

agree upon the description of the 

intended beneficiaries and the Parties 

will make publicly available a more 

detailed description of the intended 

beneficiaries of the Program, including 

publishing such description on the 

MiDA Web site. 

(d) Civil Society. Civil society shall 

participate in overseeing the 

implementation of the Program through 

its representation on the Board and the 

three Zonal Advisory Committees 

(which will include representatives 

from NGOs and private sector entities), 

as provided in Section 3(d) and Section 

3(e), respectively, of this Program 

Annex. In addition, ongoing 

consultations with the civil society 

regarding the manner in which each 

Project is being implemented will take 

place throughout the Compact Term. 

(e) Monitoring and Evaluation. Annex 

III of this Compact generally describes 

the plan to measure and evaluate 

progress toward achievement of the 

Compact Goal and Objectives (the ‘‘M&E 

Plan’’). As outlined in the Disbursement 

Agreement and other Supplemental 

Agreements, continued disbursement of 

MCC Funding under this Compact 

(whether as MCC Disbursements and 

Re-Disbursements) shall be contingent, 

among others, on successful 

achievement of certain targets as set 

forth in the M&E Plan. 

3. Implementation Framework 

The implementation framework and 

the plan for ensuring adequate 

governance, oversight, management, 

monitoring and evaluation (‘‘M&E’’) and 

fiscal accountability for the use of MCC 

Funding is summarized below and in 

the Schedules attached to this Program 

Annex, and as may otherwise be agreed 

in writing by the Parties. 

(a) General. The elements of the 

implementation framework will be 

further described in the relevant 

Supplemental Agreements and in a set 

of detailed documents for the 

implementation of the Program, 

consisting of (i) a Multi-Year Financial 

Plan, (ii) a Fiscal Accountability Plan, 

(iii) a Procurement Plan, (iv) an M&E 

Plan and (v) a Work Plan (each, an 

‘‘Implementation Document’’). MiDA 

shall adopt each Implementation 

Document in accordance with the 

requirements and timeframe as may be 

specified in this Program Annex, the 

Disbursement Agreement or as may 

otherwise be agreed by the Parties from 

time to time. MiDA may amend any 

Implementation Document without 

amending this Compact, provided that 

any material amendment of such 

Implementation Document has been 

approved by MCC and is otherwise 

consistent with the requirements of this 

Compact and any relevant 

Supplemental Agreement. By such time 

as may be specified in the Disbursement 

Agreement, or as may otherwise be 

agreed by the Parties from time to time, 

MiDA shall adopt a work plan for the 

overall administration of the Program 

(the ‘‘Work Plan’’). The Work Plan shall 

set forth, with respect to (i) the 

administration of the Program, (ii) the 

monitoring and evaluation of the 

Program, and (iii) the implementation of 

each Project: (1) Each activity to be 

undertaken or funded by MCC Funding 


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(to the level of detail mutually 

acceptable to MiDA and MCC), (2) the 

Detailed Budget, and (3) where 

appropriate, the allocation of roles and 

responsibilities for specific activities, 

other programmatic guidelines, 

performance requirements, targets, and 

other expectations related thereto. 

(b) Government. 

(i) The Government shall promptly 

take all necessary and appropriate 

actions to carry out the Government 

Responsibilities and other obligations or 

responsibilities of the Government 

under and in furtherance of this 

Compact, including undertaking or 

pursuing such legal, legislative or 

regulatory actions or procedural changes 

and contractual arrangements as may be 

necessary or appropriate to achieve the 

Objectives, to successfully implement 

the Program, to designate any rights or 

responsibilities to any Permitted 

Designee, and to establish MiDA, which 

shall be a Permitted Designee and shall 

be responsible for the oversight and 

management of the implementation of 

this Compact on behalf of the 

Government. The Government shall 

promptly deliver to MCC certified 

copies of any documents, orders, 

decrees, laws or regulations evidencing 

such legal, legislative, regulatory, 

procedural, contractual or other actions. 

(ii) The Government shall ensure that 

MiDA is duly authorized and organized, 

sufficiently staffed and empowered to 

carry out fully the Designated Rights 

and Responsibilities. Without limiting 

the generality of the preceding sentence, 

MiDA shall be organized, and have such 

roles and responsibilities, as described 

in Section 3(d) of this Program Annex 

and as provided in any Governing 

Documents; provided, however, the 

Government or another Permitted 

Designee may, subject to MCC approval, 

carry out any of the roles and 

responsibilities designated to be carried 

out by MiDA and described in Section 

3(d) of this Program Annex or elsewhere 

in this Program Annex, any Governing 

Document or any other Supplemental 

Agreement prior to and during the 

initial period of the establishment and 

staffing and operational formation of 

MiDA, but in no event longer than the 

earlier of (1) the formation and 

convening of organizational meetings of 

the Board and the formation and 

operational establishment of MiDA 

(including the selection and engagement 

of Officers and other key employees) 

and (2) three months from the Entry into 

Force, unless otherwise agreed by the 

Parties in writing. 

(c) MCC. 

(i) Notwithstanding Section 3.1 of this 

Compact or any provision in this 

Program Annex to the contrary, and 

except as may be otherwise agreed upon 

by the Parties from time to time, MCC 

must approve in writing each of the 

following transactions, activities, 

agreements and documents prior to the 

execution or carrying out of such 

transaction, activity, agreement or 

document and prior to MCC 

Disbursements or Re-Disbursements in 

connection therewith: 

(1) MCC Disbursements; 

(2) Each Implementation Document 

(including each component thereto) and 

any material amendments and 

supplements thereto; 

(3) Any Audit Plan; 

(4) Agreements (i) between the 

Government and MiDA, (ii) between the 

Government, a Government Affiliate, 

MiDA or any other Permitted Designee, 

on the one hand, and any Provider or 

Affiliate of a Provider, on the other 

hand, which require such MCC approval 

under applicable law, the Procurement 

Agreement, any Governing Document, 

or any other Supplemental Agreement 

or (iii) in which the Government, a 

Government Affiliate, MiDA or any 

other Permitted Designee appoints, 

hires, or engages any of the following in 

furtherance of this Compact: 

(A) Auditor; 

(B) Reviewer; 

(C) Fiscal Agent; 

(D) Procurement Agent; 

(E) Bank; 

(F) Implementing Entity; and 

(G) A member of the Board (including 

any Observer), any Officer or any other 

key employee of MiDA (including 

agreements involving the terms of any 

compensation for any such person). 

(Any agreement described in clause (i) 

through (iii) of this Section 3(c)(i)(4) of 

this Program Annex and any 

amendments and supplements thereto, 

each, a ‘‘Material Agreement’’); 

(5) Any modification, termination or 

suspension of a Material Agreement, or 

any action that would have the effect of 

such a modification, termination or 

suspension of a Material Agreement; 

(6) Any agreement that is (A) not at 

arm’s length or (B) with a party related 

to the Government, MiDA or any of their 

respective Affiliates; 

(7) Any Re-Disbursement (each, a 

‘‘Material Re-Disbursement’’) that 

requires such MCC approval under 

applicable law, any Governing 

Document, or any other Supplemental 

Agreement; 

(8) Any pledge of any MCC Funding 

or any Program Assets, or any guarantee, 

directly or indirectly, of any 

indebtedness (each, a ‘‘Pledge’’); 

(9) Any decree, legislation, regulation, 

contractual arrangement (including the 

Governance Agreement and the 

Millennium Development Authority Act 

of 2006 (Act 702)), or other charter 

document establishing or governing 

MiDA (each, a ‘‘Governing Document’’); 

(10) Any disposition, in whole or in 

part, liquidation, dissolution, winding 

up, reorganization or other change of (A) 

MiDA, including any revocation or 

modification of or supplement to any 

Governing Document related thereto, or 

(B) any subsidiary or Affiliate of MiDA; 

(11) Any change in character or 

location of any Permitted Account; 

(12) Formation or acquisition of any 

direct or indirect subsidiary, or other 

Affiliate, of MiDA; 

(13)(A) Any change of any member of 

the Board (including any Observer), of 

the member serving as the Chair or in 

the composition or size of the Board, 

and the filling of any vacant seat of any 

member of the Board (including any 

Observer), (B) any change of any Officer 

or other key employee of MiDA or in the 

composition or size of the Management, 

and the filling of any vacant position of 

any Officer or other key employee of 

MiDA, and (C) any material change in 

the composition or size of any Zonal 

Advisory Committee; 

(14) Any decision by MiDA to engage, 

to accept or to manage any funds from 

any donor agencies or organizations in 

addition to MCC Funding during the 

Compact Term; 

(15) Any decision to amend, 

supplement, replace, terminate, or 

otherwise change any of the foregoing; 

and 

(16) Any other activity, agreement, 

document or transaction requiring the 

approval of MCC in this Compact, 

applicable law, any Governing 

Document, the Procurement Agreement, 

the Disbursement Agreement, or any 

other Supplemental Agreement between 

the Parties. 

(ii) MCC shall have the authority to 

exercise its approval rights set forth in 

this Section 3(c) of this Program Annex 

in its sole discretion and independent of 

any participation or position taken by 

the MCC Representative at a meeting of 

the Board. MCC retains the right to 

revoke its approval of any matter, 

agreement, or action if MCC concludes, 

in its sole discretion, that its approval 

was issued on the basis of incomplete, 

inaccurate or misleading information 

furnished by the Government, any 

Government Affiliate, MiDA or any 

other Permitted Designee. 

Notwithstanding any provision in this 

Compact or any Supplemental 

Agreement to the contrary, the exercise 

by MCC of its approval rights under this 

Compact or any Supplemental 

Agreement shall not (1) diminish or 


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otherwise affect the Government 

Responsibilities or any other obligations 

or responsibilities of the Government 

under this Compact or any 

Supplemental Agreement, (2) transfer 

any such obligations or responsibilities 

of the Government, or (3) otherwise 

subject MCC to any liability. 

(d) MiDA. 

(i) General. Unless otherwise agreed 

by the Parties in writing, MiDA shall, as 

a Permitted Designee, be responsible for 

the oversight and management of the 

implementation of this Compact. MiDA 

shall be governed by applicable law and 

the Governing Documents, each such 

Governing Document to be in form and 

substance satisfactory to MCC and 

effective on or before the time specified 

in the Disbursement Agreement, and 

based on the following principles: 

(1) The Government shall ensure that 

MiDA shall not assign, delegate or 

contract any of the Designated Rights 

and Responsibilities without the prior 

written consent of the Government and 

MCC. MiDA shall not establish any 

Affiliates or subsidiaries (direct or 

indirect) without the prior written 

consent of the Government and MCC. 

(2) Unless otherwise agreed by the 

Parties in writing, MiDA shall consist of 

(A) an independent board of directors 

(the ‘‘Board’’) to oversee MiDA’s 

responsibilities and obligations under 

this Compact (including any Designated 

Rights and Responsibilities) and (B) a 

management unit (the ‘‘Management’’) 

to have overall management 

responsibility for the implementation of 

this Compact. 

(ii) Board. 

(1) Formation. The Government shall 

ensure that the Board shall be formed, 

constituted, governed and operated in 

accordance with the terms and 

conditions set forth in the Governing 

Documents and any Supplemental 

Agreement. 

(2) Composition. Unless otherwise 

agreed by the Parties in writing, the 

Board shall consist of at least nine (9) 

but no more than eleven (11) voting 

members and four (4) non-voting 

observers identified below. 

(A) The Board shall initially be 

composed of nine (9) voting members as 

follows, provided that the members 

identified in subsections (i)–(vi) below 

(each, a ‘‘Government Member,’’ and 

each of the other voting members, a 

‘‘Civil Member’’) may be replaced by 

another government official from a 

ministry or other government body 

relevant to the Program activities 

pursuant to the Governing Documents, 

subject to approval by MCC (such 

replacement to be referred to thereafter 

as a Government Member): 

(i) Dr. P. Kwesi Nduom, the 

incumbent Minister of the Ministry of 

Public Sector Reform, appointed as the 

chair (‘‘Chair’’) as provided in the 

Governing Documents; 

(ii) The Minister, or any other 

government official of the rank of 

director or higher, from the Ministry of 

Food and Agriculture, initially to be the 

Minister of Food and Agriculture; 

(iii) The Minister, or any other official 

of the rank of director or higher, from 

the Ministry of Trade, Industry, Private 

Sector and Presidential Special 

Initiatives, initially to be the Minister of 

Trade, Industry, Private Sector and 

Presidential Special Initiatives; 

(iv) The Minister, or any other official 

of the rank of director or higher, from 

the Ministry of Local Government, Rural 

Development and Environment, initially 

to be the Minister of Local Government, 

Rural Development and Environment; 

(v) The Minister, or any other official 

of the rank of director or higher, from 

the Ministry of Finance and Economic 

Planning, initially to be the Minister of 

Finance and Economic Planning; 

(vi) The CEO; 

(vii) Two representatives, each 

selected by the Private Enterprise 

Foundation; and (viii) A representative, 

selected by the Ghana Association of 

Private Voluntary Organizations in 

Development. 

(B) The non-voting observers of the 

Board (each, an ‘‘Observer’’) shall be: 

(i) A representative designated by 

MCC (the ‘‘MCC Representative’’); and 

(ii) Three representatives, each 

selected by lot by the district assemblies 

within each Intervention Zone. 

(C) Each Government Member 

position (other than the Chair) shall be 

filled by the individual, during the 

Compact Term, holding the office 

identified and all Government Members 

(including the Chair) shall serve in their 

capacity as the applicable Government 

officials and not in their personal 

capacity. 

(D) The voting members identified in 

Section 3(d)(ii)(2)(A) of this Program 

Annex, by majority vote, may alter the 

size of the Board in accordance with the 

Governing Documents so long as the 

total does not exceed eleven (11) 

members. 

(E) Each Observer shall have rights to 

attend all meetings of the Board, 

participate in the discussions of the 

Board, and receive all information and 

documents provided to the Board, 

together with any other rights of access 

to records, employees or facilities as 

would be granted to a member of the 

Board under the Governing Documents. 

(F) The Board shall, pursuant to the 

Governing Documents, invite a 

representative selected by the registered 

NGOs representing the environmental 

community (the ‘‘eNGO Invitee’’) to all 

meetings of the Board, and the eNGO 

Invitee shall receive all information and 

documents provided to the Board as 

more specifically provided in the 

Governance Agreement. 

(G) The voting members identified in 

Section 3(d)(ii)(2)(A) of this Program 

Annex shall exercise their duties solely 

in accordance with the best interests of 

MiDA, the Program and the Objectives, 

and shall not undertake any action that 

is contrary to those interests or would 

result in personal gain or a conflict of 

interest. 

(3) Roles and Responsibilities. 

(A) The Board shall oversee the 

Management, the overall 

implementation of the Program, and the 

performance of the Designated Rights 

and Responsibilities. 

(B) Certain actions may be taken and 

certain agreements, documents or 

instruments executed and delivered, as 

the case may be, by MiDA only upon the 

approval and authorization of the Board 

as provided under applicable law or as 

set forth in any Governing Document, 

including each MCC Disbursement 

Request, selection or termination of 

certain Providers and any 

Implementation Document. 

(C) The Chair, unless otherwise 

provided in the applicable Governing 

Documents, shall certify any documents 

or reports delivered to MCC in 

satisfaction of the Government’s 

reporting requirements under this 

Compact or any Supplemental 

Agreement between the Parties (the 

‘‘Compact Reports’’) or any other 

documents or reports from time to time 

delivered to MCC by MiDA (whether or 

not such documents or reports are 

required to be delivered to MCC), and 

that such documents or reports are true, 

correct and complete. 

(D) Without limiting the generality of 

the Designated Rights and 

Responsibilities that the Government 

may designate to MiDA, and subject to 

MCC’s contractual rights of approval as 

set forth in Section 3(c) of this Program 

Annex, elsewhere in this Compact or 

any Supplemental Agreement, the Board 

shall have the exclusive authority as 

between the Board and the Management 

for all actions defined for the Board in 

any Governing Document and which are 

expressly designated therein as 

responsibilities that cannot be delegated 

further. 

(4) Indemnification of Civil Members, 

Observers, and Officers. The 

Government shall ensure, at the 

Government’s sole cost and expense, 

that appropriate insurance is obtained 


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and appropriate indemnifications and 

other protections are provided, 

acceptable to MCC and to the fullest 

extent permitted under the laws of 

Ghana, to ensure that (A) Civil Members 

and Observers shall not be held 

personally liable for the actions or 

omissions of the Board or MiDA and (B) 

Officers shall not be held personally 

liable for the actions or omissions of the 

Board, MiDA or actions or omissions of 

the Officer so long as properly within 

the scope of Officer’s authority. 

Pursuant to Section 5.5 and Section 5.8 

of this Compact, the Government and 

MiDA shall hold harmless the MCC 

Representative for any liability or action 

arising out of the MCC Representative’s 

role as an Observer on the Board. The 

Government hereby waives and releases 

all claims related to any such liability 

and acknowledges that the MCC 

Representative has no fiduciary duty to 

MiDA. In matters arising under or 

relating to the Compact, the MCC 

Representative is not subject to the 

jurisdiction of the courts or any other 

body of Ghana. MiDA shall provide a 

written waiver and acknowledgement 

that no fiduciary duty to MiDA is owed 

by the MCC Representative. 

(iii) Management. Unless otherwise 

agreed in writing by the Parties, the 

Management shall report, through the 

CEO or other Officer as designated in 

any Governing Document, directly to 

the Board and shall have the 

composition, roles and responsibilities 

described below and set forth more 

particularly in the Governing 

Documents. 

(1) Composition. The Government 

shall ensure that the Management shall 

be composed of qualified experts from 

the public or private sectors, including 

such offices and staff as may be 

necessary to carry out effectively its 

responsibilities, each with such powers 

and responsibilities as set forth in the 

Governing Documents, and from time to 

time in any Supplemental Agreement 

between the Parties, including without 

limitation the following: (A) CEO; (B) 

Internal Auditor; (C) Legal Counsel; (D) 

Director of the Agricultural 

Transformation Program; (E) Director of 

Procurement; (F) Director of Monitoring 

and Evaluation; (G) Director of Finance 

and Administration; (H) Director of 

Environmental and Social Impact; and 

(I) Director of Community and Public 

Outreach. The Management shall also 

include: (J) Commercialization of 

Agriculture Project Manager, (K) 

Community Services Project Manager, 

(L) Transportation and Agricultural 

Infrastructure Project Manager, and (M) 

Land Administration Project Manager, 

each of whom shall report to the 

Director of Agricultural Transformation 

Program and (N) Agricultural Financial 

Services and Bank Capacity Building 

Manager, who shall report to the 

Commercialization of Agriculture 

Project Manager. Each person holding 

the position in any of the sub-clauses 

(A) through (N), and such other offices 

as may be created and designated in 

accordance with any Governing 

Document and any Supplemental 

Agreement, shall be referred to as an 

‘‘Officer.’’ The Management shall be 

supported by appropriate administrative 

and support personnel consistent with 

the Detailed Budget for Program 

administration and any Implementation 

Document. 

(2) Appointment of Officers. The 

Chief Executive Officer (‘‘CEO’’) of 

MiDA shall be selected after an open 

and competitive recruitment and 

selection process, and appointed in 

accordance with the Governing 

Documents, which appointment shall be 

subject to MCC approval. Such 

appointment shall be further evidenced 

by such document as the Parties may 

agree. Unless otherwise specified in the 

Governing Documents, the Officers of 

MiDA other than the CEO shall be 

selected and hired by the Board after an 

open and competitive recruitment and 

selection process, and appointed in 

accordance with the Governing 

Documents, which appointment shall be 

subject to MCC approval. Such 

appointment shall be further evidenced 

by such document as the Parties may 

agree. 

(3) Roles and Responsibilities. 

(A) Management shall assist the Board 

in overseeing the implementation of the 

Program and shall have principal 

responsibility (subject to the direction 

and oversight of the Board and subject 

to MCC’s contractual rights of approval 

as set forth in Section 3(c) of this 

Program Annex or elsewhere in this 

Compact or any Supplemental 

Agreement) for the overall management 

of the implementation of the Program. 

(B) Without limiting the foregoing 

general responsibilities or the generality 

of Designated Rights and 

Responsibilities that the Government 

may designate to MiDA, Management 

shall develop each Implementation 

Document, oversee the implementation 

of the Projects, manage and coordinate 

monitoring and evaluation, ensure 

compliance with the Fiscal 

Accountability Plan, and such other 

responsibilities as set out in the 

Governing Documents or otherwise 

delegated to Management by the Board 

from time to time. 

(C) Appropriate Officers as designated 

in the Governing Documents shall have 

the authority to contract on behalf of 

MiDA under any procurement 

undertaken in accordance with the 

Procurement Agreement (including the 

Procurement Guidelines) in furtherance 

of the Program. 

(D) Management shall have the 

obligation and right to approve certain 

actions and documents or agreements, 

including certain Re-Disbursements, 

MCC Disbursement Requests, Compact 

Reports, certain human resources 

decisions and certain other actions, as 

provided in the Governing Documents. 

(e) Zonal Advisory Committees. 

(i) Formation. The Government shall 

ensure the establishment of three (3) 

zonal advisory committees with 

governmental representatives (each, a 

‘‘Zonal Advisory Committee’’), each 

representing one of the three 

Intervention Zones. 

(ii) Composition. Each Zonal Advisory 

Committee shall be comprised, unless 

otherwise agreed by the Parties, of the 

following members: (A) A district 

planning officer from each district 

within the applicable Intervention Zone; 

(B) a district director of agriculture from 

each district within the applicable 

Intervention Zone; (C) a district chief 

executive from each district within the 

applicable Intervention Zone; (D) an 

elected representative from each district 

assembly from the applicable 

Intervention Zone; and (E) a regional 

environmental officer from each region 

within the applicable Intervention Zone. 

The Government shall take all actions 

necessary and appropriate to ensure that 

each Zonal Advisory Committee is 

established consistent with this Section 

3(e) of this Program Annex and as 

otherwise specified in the Governing 

Documents or otherwise agreed in 

writing by the Parties. The composition 

of each Zonal Advisory Committee may 

be adjusted by agreement of the Parties 

from time to time to ensure, among 

others, an adequate representation of the 

intended beneficiaries of the Program. 

Each member position identified in this 

Section 3(e)(ii) of this Program Annex 

shall be filled by the individual, during 

the Compact Term, holding the office 

identified and such individual shall 

serve in his capacity as the applicable 

Government official and not in his 

personal capacity. In the event that such 

member is unable to participate in a 

meeting of the respective Zonal 

Advisory Committee, such member’s 

deputy may participate in the member’s 

stead. 

(iii) Roles and Responsibilities. Each 

Zonal Advisory Committee shall be a 

mechanism to provide representatives of 

the private sector, civil society and local 

and regional governments the 


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opportunity to provide advice and input 

to MiDA regarding the implementation 

of the Compact. At the request of each 

Zonal Advisory Committee, MiDA shall 

provide such information and 

documents as it deems advisable, 

subject to appropriate treatment of such 

information and documents by the 

members of each Zonal Advisory 

Committee. Specifically, during each 

meeting of each Zonal Advisory 

Committee, MiDA shall present an 

update on the implementation of this 

Compact and progress towards 

achievement of the Objectives. Each 

Zonal Advisory Committee shall have 

an opportunity to provide regularly to 

MiDA its views or recommendations on 

the performance and progress on the 

Projects and Project Activities, any 

Implementation Document, 

procurement, financial management or 

such other issues as may be presented 

from time to time to each Zonal 

Advisory Committee or as otherwise 

raised by each Zonal Advisory 

Committee. 

(iv) Meetings. Each Zonal Advisory 

Committee shall hold at least two 

meetings per year as well as such other 

periodic meetings of the Zonal Advisory 

Committee or the respective 

subcommittees thereof, designated along 

sectoral, regional, or other lines, as may 

be necessary or appropriate from time to 

time. Representatives of the FBOs, 

banking organizations, microfinance 

institutions, farmer associations, 

horticultural product associations, 

women’s associations, chambers of 

commerce, anti-corruption associations, 

environmental and social organizations 

(‘‘Civil Society Stakeholders’’), among 

others, shall be provided timely advance 

notice of all such meetings, invited to 

participate in all such meetings and 

afforded an opportunity during each 

such meeting to present their views or 

recommendations to the Zonal Advisory 

Committee. 

(v) Accessibility; Transparency. The 

members of each Zonal Advisory 

Committee shall be accessible to the 

beneficiaries they represent to receive 

the beneficiaries’ comments or 

suggestions regarding the Program. The 

notices for, and the minutes (including 

the views or recommendations of the 

Civil Society Stakeholders expressed) of 

all meetings of, each Zonal Advisory 

Committee and any respective 

subcommittees shall be made public on 

the MiDA Web site or otherwise 

(including television, radio and print) in 

a timely manner. 

(f) Implementing Entities. Subject to 

the terms and conditions of this 

Compact and any other Supplemental 

Agreement between the Parties, MiDA 

may provide MCC Funding, directly or 

indirectly through MiDA, to one or more 

(i) pre-determined ministries, bureaus or 

agencies of the Government based on 

their sector expertise or (ii) government 

bodies, businesses, NGOs, vendors or 

contractors, selected according to the 

Procurement Guidelines, to implement 

and carry out any Project, Project 

Activity (or a component thereof), or 

any other activities to be carried out in 

furtherance of this Compact (each, an 

‘‘Implementing Entity’’). The 

Government shall ensure that MiDA 

enters into an agreement with each 

Implementing Entity, in form and 

substance satisfactory to MCC, that sets 

forth the roles and responsibilities of 

such Implementing Entity and other 

appropriate terms and conditions 

(including the payment of the 

Implementing Entity, if any) (the 

‘‘Implementing Entity Agreement’’). An 

Implementing Entity shall report 

directly to the relevant Officer, as 

designated in the applicable 

Implementing Entity Agreement or as 

otherwise agreed by the Parties. 

(g) Fiscal Agent. The Government 

shall ensure that MiDA engages one 

fiscal agent following an international 

competitive process (a ‘‘Fiscal Agent’’) 

who shall be responsible for, among 

others: (i) Assisting MiDA in preparing 

the Fiscal Accountability Plan; (ii) 

ensuring and certifying that ReDisbursements are properly authorized 

and documented in accordance with 

established control procedures set forth 

in the Disbursement Agreement, the 

Fiscal Agent Agreement and other 

relevant Supplemental Agreements; (iii) 

Re-Disbursement from, and cash 

management and account reconciliation 

of, any Permitted Account established 

and maintained for the purpose of 

receiving MCC Disbursements and 

making Re-Disbursements (to which 

Fiscal Agent has sole signature 

authority); (iv) providing applicable 

certifications for MCC Disbursement 

Requests; (v) maintaining and retaining 

proper accounting, records and 

document disaster recovery system of 

all MCC funded financial transactions 

and certain other accounting functions; 

(vi) producing reports on MCC 

Disbursements and Re-Disbursements 

(including any requests therefore) in 

accordance with established procedures 

set forth in the Disbursement 

Agreement, the Fiscal Agent Agreement, 

the Fiscal Accountability Plan, or any 

other relevant Supplemental 

Agreements; (vii) assisting in the 

preparation of budget development 

procedures; and (viii) internal 

management of the Fiscal Agent 

operations. Upon the written request of 

MCC, the Government shall ensure that 

MiDA terminates the Fiscal Agent, 

without any liability to MCC, and the 

Government shall ensure that MiDA 

engages a new Fiscal Agent, subject to 

the approval by the Board and MCC. 

The Government shall ensure that MiDA 

enters into an agreement with each 

Fiscal Agent, in form and substance 

satisfactory to MCC, that sets forth the 

roles and responsibilities of the Fiscal 

Agent and other appropriate terms and 

conditions, such as payment of the 

Fiscal Agent (each, a ‘‘Fiscal Agent 

Agreement’’), such Fiscal Agent 

Agreement shall not be terminated until 

MiDA has engaged a successor Fiscal 

Agent or as otherwise agreed by MCC in 

writing. 

(h) Auditors and Reviewers. The 

Government shall ensure that MiDA 

carries out the Government’s audit 

responsibilities as provided in Sections 

3.8(d), (e) and (f) of this Compact, 

including engaging one or more auditors 

(each, an ‘‘Auditor’’) required by 

Section 3.8(d) of this Compact. As 

requested by MCC in writing from time 

to time, the Government shall ensure 

that MiDA also engages (i) an 

independent reviewer to conduct 

reviews of performance and compliance 

under this Compact pursuant to Section 

3.8(f) of this Compact, which reviewer 

shall have the capacity to (1) conduct 

general reviews of performance or 

compliance, (2) conduct environmental 

audits and (3) conduct data quality 

assessments in accordance with the 

M&E Plan, as described more fully in 

Annex III, and/or (ii) an independent 

evaluator to assess performance as 

required under the M&E Plan (each, a 

‘‘Reviewer’’). MiDA shall select the 

Auditor(s) or Reviewer(s) in accordance 

with any Governing Document or other 

relevant Supplemental Agreement. The 

Government shall ensure that MiDA 

enters into an agreement with each 

Auditor or Reviewer, in form and 

substance satisfactory to MCC, that sets 

forth the roles and responsibilities of the 

Auditor or Reviewer with respect to the 

audit, review or evaluation, including 

access rights, required form and content 

of the applicable audit, review or 

evaluation and other appropriate terms 

and conditions such as payment of the 

Auditor or Reviewer (the ‘‘Auditor/ 

Reviewer Agreement’’). In the case of a 

financial audit required by Section 3.8(f) 

of this Compact, such Auditor/Reviewer 

Agreement shall be effective no later 

than one hundred and twenty (120) days 

prior to the end of the relevant period 

to be audited; provided, however, if 

MCC requires concurrent audits of 


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financial information or reviews of 

performance and compliance under this 

Compact, then such Auditor/Reviewer 

Agreement shall be effective no later 

than the date agreed by the Parties in 

writing. 

(i) Procurement Agent. The 

Government shall ensure that MiDA 

engages one or more procurement agents 

through an international competitive 

process (each, a ‘‘Procurement Agent’’) 

to carry out and certify specified 

procurement activities in furtherance of 

this Compact on behalf of the 

Government, MiDA, or Implementing 

Entity. The roles and responsibilities of 

such Procurement Agent and the criteria 

for selection of a Procurement Agent 

shall be as set forth in the applicable 

Implementation Letter or Supplemental 

Agreement. The Government shall 

ensure that MiDA enters into an 

agreement with the Procurement Agent, 

in form and substance satisfactory to 

MCC, that sets forth the roles and 

responsibilities of the Procurement 

Agent with respect to the conduct, 

monitoring and review of procurements 

and other appropriate terms and 

conditions, such as payment of the 

Procurement Agent (the ‘‘Procurement 

Agent Agreement’’). Any Procurement 

Agent shall adhere to the procurement 

standards set forth in the Procurement 

Agreement and Procurement Guidelines 

and ensure procurements are consistent 

with the procurement plan adopted by 

MiDA pursuant to the Procurement 

Agreement (the ‘‘Procurement Plan’’) 

unless MiDA and MCC otherwise agree 

in writing. 

4. Finances and Fiscal Accountability 

(a) Multi-Year Financial Plan; 

Detailed Budget. 

(i) Multi-Year Financial Plan. The 

multi-year financial plan for the 

Program, showing the estimated amount 

of MCC Funding allocable to each 

Project (and related Project Activities), 

the administration of the Program (and 

its components) and the monitoring and 

evaluation of the Program (the ‘‘MultiYear Financial Plan’’) over the Compact 

Term on an annual basis, is summarized 

in Annex II to this Compact. 

(ii) Detailed Budget. During the 

Compact Term, the Government shall 

ensure that MiDA timely delivers to 

MCC a detailed budget, at a level of 

detail and in a format mutually 

acceptable to MiDA and MCC, for the 

administration of the Program, 

monitoring and evaluation of the 

Program, and the implementation of 

each Project (the ‘‘Detailed Budget’’). 

The Detailed Budget shall be a 

component of the Work Plan and shall 

be delivered by such time as specified 

in the Disbursement Agreement, or as 

may otherwise be agreed by the Parties. 

(iii) Expenditures. Unless the Parties 

otherwise agree in writing, no financial 

commitment involving MCC Funding 

shall be made, no obligation of MCC 

Funding shall be incurred, and no ReDisbursement shall be made or MCC 

Disbursement Request shall be 

submitted, for any activity or 

expenditure unless the expense for such 

activity or expenditure is provided for 

in the Detailed Budget, and unless 

uncommitted funds exist in the balance 

of the Detailed Budget for the relevant 

period. 

(iv) Modifications to Multi-Year 

Financial Plan or Detailed Budget. 

Notwithstanding anything to the 

contrary in this Compact, MiDA may 

amend or supplement the Multi-Year 

Financial Plan, the Detailed Budget, or 

any component thereof, without 

amending this Compact so long as 

MiDA requests and receives the 

approval of MCC for such amendment 

or supplement and such amendment or 

supplement is consistent with the 

requirements of this Compact (including 

Section 4 of Annex II) and any relevant 

Supplemental Agreement between the 

Parties. If such amendment or 

supplement, if adopted, would 

reallocate the funds among the Projects, 

the Project Activities, or any activity 

under Program administration or M&E 

as shown in Annex II, MiDA shall 

submit a written request for approval by 

MCC of such amendment or 

supplement. Any such amendment or 

supplement shall (1) be consistent with 

the Objectives and the Implementation 

Documents; (2) shall not materially 

adversely impact the applicable Project, 

Project Activity (or any component 

thereof), or any activity under Program 

administration or M&E as shown in 

Annex II; (3) shall not cause the amount 

of MCC Funding to exceed the aggregate 

amount specified in Section 2.1(a) of 

this Compact; and (4) shall not cause the 

Government’s obligations or 

responsibilities or overall contribution 

of resources to be less than as specified 

in Section 2.2(a) of this Compact, this 

Annex I or elsewhere in this Compact. 

Upon any such amendment or 

supplement, MiDA shall deliver to MCC 

a revised Detailed Budget, together with 

a revised Multi-Year Financial Plan, 

reflecting such amendment or 

supplement, along with the next MCC 

Disbursement Request. 

(b) Disbursement and ReDisbursement. The Disbursement 

Agreement (and any schedules thereto), 

as amended from time to time, shall 

specify the terms, conditions and 

procedures on which MCC 

Disbursements and Re-Disbursements 

shall be made. The obligation of MCC to 

make MCC Disbursements or approve 

Re-Disbursements is subject to the 

fulfillment, waiver or deferral of any 

such terms and conditions. The 

Government and MiDA shall jointly 

submit the applicable request for an 

MCC Disbursement (the ‘‘MCC 

Disbursement Request’’) as may be 

specified in the Disbursement 

Agreement. MCC will make MCC 

Disbursements in tranches to a 

Permitted Account from time to time as 

provided in the Disbursement 

Agreement or as may otherwise be 

agreed by the Parties, subject to Program 

requirements and performance by the 

Government, MiDA and other relevant 

parties in furtherance of this Compact. 

Re-Disbursements will be made from 

time to time based on requests by an 

authorized representative of the 

appropriate party designated for the size 

and type of Re-Disbursement in 

accordance with any Governing 

Document and Disbursement 

Agreement; provided, however, unless 

otherwise agreed by the Parties in 

writing, no Re-Disbursement shall be 

made unless and until the written 

approvals specified herein or in any 

Governing Document and Disbursement 

Agreement for such Re-Disbursement 

have been obtained and delivered to the 

Fiscal Agent. 

(c) Fiscal Accountability Plan. By 

such time as specified in the 

Disbursement Agreement or as 

otherwise agreed by the Parties, MiDA 

shall adopt, as part of the 

Implementation Documents, a plan that 

identifies the principles, mechanisms 

and procedures to ensure appropriate 

fiscal accountability for the use of MCC 

Funding provided under this Compact, 

including the process to ensure that 

open, fair, and competitive procedures 

will be used in a transparent manner in 

the administration of grants or 

cooperative agreements and the 

procurement of goods, works and 

services for the accomplishment of the 

Objectives (the ‘‘Fiscal Accountability 

Plan’’). The Fiscal Accountability Plan 

shall set forth, among others, 

requirements with respect to the 

following matters: (i) Re-Disbursement, 

timely payment to vendors, cash 

management and account reconciliation; 

(ii) funds control and documentation; 

(iii) accounting standards and systems; 

(iv) content and timing of reports; (v) 

preparing budget development 

procedures and the Compact 

implementation budget; (vi) policies 

concerning records, document disaster 

recovery, public availability of all 


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financial information and asset 

management; (vii) procurement and 

contracting practices; (viii) inventory 

control; (ix) the role of independent 

auditors; (x) the roles of fiscal agents 

and procurement agents; (xi) separation 

of duties and internal controls; and (xii) 

certifications, powers, authorities and 

delegations. 

(d) Permitted Accounts. The 

Government shall establish, or cause to 

be established, such accounts (each, a 

‘‘Permitted Account,’’ and collectively 

‘‘Permitted Accounts’’) as may be agreed 

by the Parties in writing from time to 

time, including: 

(i) A single, completely separate 

United States Dollar interest-bearing 

account (the ‘‘Special Account’’) at the 

Bank of Ghana to receive MCC 

Disbursements; 

(ii) If necessary, a local currency of 

Ghana account (interest-bearing as 

appropriate and as further specified in 

the relevant Supplemental Agreement) 

(the ‘‘Local Account’’) at the Bank of 

Ghana to which the Fiscal Agent may 

authorize transfer from any United 

States Dollar Permitted Account for the 

purpose of making Re-Disbursements 

payable in local currency; and 

(iii) Such other interest-bearing 

accounts to receive MCC Disbursements 

in such banks as the Parties mutually 

agree upon in writing. 

No other funds shall be commingled 

in a Permitted Account other than MCC 

Funding and Accrued Interest thereon. 

All MCC Funding held in an interestbearing Permitted Account shall earn 

interest at a rate of no less than such 

amount as the Parties may agree in the 

Bank Agreement or otherwise. MCC 

shall have the right, among others, to 

view any Permitted Account statements 

and activity directly on-line, where 

feasible, or at such other frequency as 

the Parties may otherwise agree. By 

such time as shall be specified in the 

Disbursement Agreement or as 

otherwise agreed by the Parties, the 

Government shall ensure that MiDA 

enters into an agreement with the Bank, 

satisfactory to MCC, that sets forth the 

signatory authority, access rights, antimoney laundering and anti-terrorist 

financing provisions, and other terms 

related to the Permitted Account (the 

‘‘Bank Agreement’’). 

(e) Currency Exchange. The Bank 

shall convert MCC Funding to the 

currency of Ghana at a rate to which the 

parties to the Bank Agreement mutually 

agree, subject to MCC approval. 

5. Transparency; Accountability 

Transparency and accountability to 

MCC and to the beneficiaries are 

important aspects of the Program and 

the Projects. Without limiting the 

generality of the foregoing, and in an 

effort to achieve the goals of 

transparency and accountability, the 

Government shall ensure that MiDA: 

(a) Establishes an e-mail suggestion 

box as well as a means for other written 

comments that interested persons may 

use to communicate ideas, suggestions 

or feedback to MiDA; 

(b) Considers as a factor in its 

decision-making the recommendations 

of the Zonal Advisory Committees; 

(c) Develops and maintains, in a 

timely, accurate and appropriately 

comprehensive manner, the MiDA Web 

site that includes postings of 

information and documents in English 

(and other languages where relevant); 

(d) Posts on the MiDA Web site, and 

otherwise makes publicly available via 

appropriate means (including television, 

radio and print), in the appropriate 

language the following documents or 

information from time to time: 

(i) The Compact; 

(ii) All minutes of the meetings of the 

Board and the meetings of each Zonal 

Advisory Committee unless otherwise 

agreed by the Parties; 

(iii) The M&E Plan, as amended from 

time to time, along with periodic reports 

on Program performance; 

(iv) Such financial information as may 

be required by this Compact, the 

Disbursement Agreement or any other 

Supplemental Agreement, or as may 

otherwise be agreed from time to time 

by the Parties; 

(v) All Compact Reports; 

(vi) All audit reports by an Auditor 

and any periodic reports or evaluations 

by a Reviewer; 

(vii) All relevant environmental 

impact assessments and supporting 

documents, and such other 

environmental documentation as MCC 

may request; 

(viii) A copy of the Disbursement 

Agreement, as amended from time to 

time; 

(ix) A copy of any document relating 

to the formation, organization and 

governance of MiDA, including all 

Governing Documents, together with 

any amendments thereto; 

(x) A copy of the Procurement 

Agreement (including the Procurement 

Guidelines), as amended from time to 

time, and any procurement policies or 

procedures and standard documents; 

and 

(xi) A copy of certain information 

derived from each Procurement Plan, as 

specified in the Procurement 

Agreement, and all bid requests and 

notifications of awarded contracts. 

6. Environmental Accountability 

(a) The Government shall ensure that 

MiDA (or any other Permitted Designee) 

undertakes and completes three 

strategic environmental assessments 

(each, an ‘‘SEA’’), each as a condition 

precedent to certain MCC 

Disbursements as described in the 

Schedules to this Program Annex and 

further specified in the Disbursement 

Agreement, and in form and substance 

satisfactory to MCC, covering, 

respectively, the Northern Zone, the 

Afram Basin Zone and the Southern 

Zone. 

(b) The Government shall ensure that 

MiDA (or any other Permitted Designee) 

(i) undertakes and completes any 

environmental impact assessments 

(each, an ‘‘EIA’’), environmental 

management plans (each, an ‘‘EMP’’) 

and resettlement action plans (each, a 

‘‘RAP’’), each in form and substance 

satisfactory to MCC, and as required 

under the laws of Ghana, the 

Environmental Guidelines, this 

Compact or any Supplemental 

Agreement or as otherwise required by 

MCC and (ii) undertakes to implement 

any environmental and social mitigation 

measures identified in such assessments 

or plans to MCC’s satisfaction. 

(c) Government shall commit to fund 

all necessary costs of environmental 

mitigation (including costs of 

resettlement) not specifically provided 

for in the budget for any Project. 

Schedule 1 to Annex I—Agriculture 

Project 

This Schedule 1 generally describes 

and summarizes the key elements of the 

Agricultural Productivity and ValueAdded Development Project (the 

‘‘Agriculture Project’’) that the Parties 

intend to implement in furtherance of 

the Agriculture Project Objective. 

Additional details regarding the 

implementation of the Agriculture 

Project will be included in the 

Implementation Documents and in the 

relevant Supplemental Agreements. 

1. Background 

Owing to its ability to grow 

successfully a wide diversity of tropical 

and sub-tropical crops, Ghana has the 

potential to become the leading West 

African supplier of horticultural 

products into the markets in 

neighboring African countries and the 

European Union (‘‘EU’’) where the 

demand for tropical, organic and 

conventional fruits and vegetables is 

experiencing strong growth. In addition, 

domestic food security can be 

significantly enhanced by expanding the 

country’s utilization of arable land 


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dedicated to maize, yams, cassava and 

other traditional food crops. 

Agriculture is the backbone of 

Ghana’s economy: it accounts for 

approximately 40% of the country’s 

GDP, directly employs more than 60% 

of the labor force and generates more 

than 55% of the foreign exchange 

earnings. The agricultural sector 

consists of five sub-sectors: crops (other 

than cocoa) and livestock account for 

58% of the GDP attributable to the 

agricultural sector, cocoa for 20%, 

fisheries for 11% and forestry for the 

remaining 11%. 

Ghana’s current agricultural 

production is largely dominated by rainfed production of crops for local 

consumption by smallholder farmers 

using rudimentary technology. 

Furthermore, inconsistency in both the 

supply and the quality of agriculture 

crops hampers Ghana’s ability to 

compete against other countries 

supplying the same to the regional and 

EU markets. Despite non-traditional 

horticultural crops’ potential for earning 

foreign exchange, the agricultural sector 

currently produces mostly traditional 

crops under sub-optimal conditions, 

including lack of interconnectivity 

between production areas and markets 

and limited access to credit. 

Furthermore, insecure land access and 

inefficient land registration processes 

are key risks to the successful expansion 

of higher-value agribusiness. 

Fortunately, a number of concrete 

steps can set the stage for significant 

increases in food security, household 

income, profitable agribusinesses, jobs 

creation and capital investment in 

Ghana’s agricultural sector. Specifically, 

in order to exploit fully its agricultural 

potential, Ghana must improve its 

yields of high quality product, increase 

the acreage devoted to commercial, 

high-value horticultural crops, and 

consistently meet the international 

export market standards. Inefficiencies 

in the value chain will be remedied by 

improving entrepreneurial and technical 

skills among farmers and businesses to 

maximize their output and sales by 

building a post-harvest infrastructure for 

preserving the quality of crops during 

their transportation from the production 

site to final market destination. 

A number of mutually reinforcing 

activities has been identified to address 

the above-described constraints that 

Ghana is facing in achieving the 

Agriculture Project Objective within the 

Intervention Zones. In addition, the 

participation in, and benefits from, the 

Agriculture Project may extend to those 

farmers in nearby districts who operate 

or trade within, or provide supplies to, 

the Intervention Zones. 

2. Summary of the Agriculture Project 

and Related Projects Activities 

The Agriculture Project is designed to 

enhance the profitability of staple food 

and horticulture crops and to improve 

delivery of business and technical 

services to support the expansion of 

commercial agriculture among farmerbased organizations (‘‘FBOs’’), which 

are groups of eligible farmers, input 

suppliers selling to such farmers, or 

output processors buying from such 

farmers. MCC Funding will support the 

following Project Activities: 

• Farmer and Enterprise Training in 

Commercial Agriculture: To accelerate 

the development of commercial skills 

and capacity among FBOs and their 

business partners (including service 

providers to FBOs and other entities 

adding value to agricultural crops such 

as processors); 

• Irrigation Development: To 

establish a limited number of retention 

ponds and weirs requested by the FBOs 

and FBO partnerships for whom access 

to water is critical to the success of their 

business objectives; 

• Land Tenure Facilitation: To 

improve tenure security for existing 

land users and to facilitate access to 

land for commercial crops in the 

Intervention Zones; 

• Improvement of Post-Harvest 

Handling and Value Chain Services: To 

facilitate strategic investments by FBOs 

in post-harvest infrastructure 

improvements and to build the capacity 

of the public sector to introduce and 

monitor compliance with international 

plant protection standards; 

• Improvement of Credit Services for 

On-Farm and Value Chain Investments: 

To augment the supply of, and access to, 

credit provided by financial institutions 

operating in the Intervention Zones; and 

• Rehabilitation of Feeder Roads: To 

rehabilitate up to 950 km of feeder roads 

in eight (8) districts in the Intervention 

Zones in order to reduce transportation 

costs and time, to increase access to 

major domestic and international 

markets, and to facilitate transportation 

linkages from rural areas to social 

service networks (including, for 

instance, hospitals, clinics and schools). 

The M&E Plan (described in Annex 

III) will set forth anticipated results and, 

where appropriate, regular benchmarks 

that may be used to monitor the 

progress of the implementation of the 

Agriculture Project. Performance against 

these benchmarks, as well as the overall 

impact of the Agriculture Project, will 

be assessed and reported at the intervals 

to be specified in the M&E Plan, or as 

otherwise agreed by the Parties, from 

time to time. The Parties expect that 

additional indicators will be identified 

during implementation of the 

Agriculture Project. The expected 

results from, and the key benchmarks to 

measure progress on, the Agriculture 

Project, as well as the Project Activities 

undertaken or funded thereunder, are 

set forth in Annex III. 

Estimated amounts of MCC Funding 

for each Project Activity for the 

Agriculture Project are identified in 

Annex II. Conditions precedent to each 

Project Activity under the Agriculture 

Project, and the sequencing of such 

Project Activities, shall be set forth in 

the Disbursement Agreement, any other 

Supplemental Agreements and the 

relevant Implementation Documents. 

The following summarizes each 

Project Activity under the Agriculture 

Project: 

(a) Project Activity: Farmer and 

Enterprise Training in Commercial 

Agriculture (‘‘Commercial Training 

Activity’’) 

Successful FBOs are critical to the 

development of Ghana’s agricultural 

potential. The Program will support 

FBOs by providing training in business 

management, planning and finance 

practices, market analyses and 

marketing, customer service and pricing 

mechanisms. By achieving critical mass, 

FBOs can exercise bargaining power in 

purchasing quality inputs and 

processing, transport, marketing and 

other services at lower prices, and 

consistently provide sufficient 

quantities of quality produce and crops 

in the necessary volume, as well as add 

value to these services, all necessary to 

enter the commercial markets with 

competitive products. The continued 

viability of the FBOs after the Compact 

Term will be a key to the Ghanaian 

farmers’ continued economic growth, 

improved farming practices, ability to 

secure best prices for inputs, access to 

credit and building of strong farmer 

communities. 

The Commercial Training Activity 

seeks to strengthen and support both 

FBOs and certain agribusiness service 

providers who offer various valueadding services to the FBOs that meet a 

pre-determined set of criteria to be 

adopted by MiDA with the approval of 

MCC. 

Specifically, MCC Funding will 

support the following: 

(i) Extension activities by the Ministry 

of Food and Agriculture (‘‘MOFA’’). 

MOFA will be responsible for providing 

preliminary organizational and 

technical support to FBOs seeking 

eligibility to participate in the 

commercial training program. MCC 

Funding will be used for the 


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mobilization of MOFA’s district level 

extension agents to identify nascent and 

existing FBOs, as well as farmers and 

suppliers who are good candidates to 

organize new FBOs in collaboration 

with the district assemblies. 

(ii) Commercial training program for 

FBOs. An intensive, multi-phase 

commercial training program will be 

offered to the FBOs to improve 

significantly their skills in management, 

business planning, technology 

applications and marketing. Such FBOs 

will include small and medium-sized 

enterprises (‘‘SMEs’’) that provide 

agribusiness-related, value-adding 

services to farmers. Each phase of the 

program will incorporate training to 

improve business literacy and numeracy 

of the members of the FBOs. A priority 

will be placed on attracting significant 

participation of women and young 

adults and on encouraging their 

engagement in agriculture business 

opportunities in the target districts in 

each Intervention Zone. Specifically, the 

commercial training program will 

consist of the following three phases: 

(1) Phase One: To strengthen the 

business capacity of FBOs, this phase 

will provide intensive training in 

strengthening the organization, 

developing a business vision, and 

learning to use realistic planning tools 

towards commercialization and 

profitability will be provided. 

Participants will be required to prepare 

a long-term business plan for approval 

in accordance with evaluation criteria, 

adopted by MiDA with the approval of 

MCC, before moving on to Phase Two of 

the program. An organization-building 

incentive in the form of business and 

communication technology will be 

available to each participating entity, 

whether an FBO or an SME, that 

completes and begins implementing the 

approved business plan. 

(2) Phase Two: The business plans 

developed in Phase One will determine 

the specific technical training, 

infrastructure support and inputs to be 

provided to the participating entities 

during Phase Two. The focus during 

Phase Two will be to enable the 

participating entities to transition into 

new agricultural crop varieties and to 

adopt and fully integrate good 

agricultural practices into their 

commercial operations. 

(3) Phase Three: The assistance 

during Phase Three will focus on 

helping FBOs to maximize sales 

volumes in the commercial agriculture 

markets (domestic, regional or export), 

with consistent, competitive products 

and services. Training will focus on 

quality assurance management 

(including product handling and 

preservation, packaging and 

transportation), as well as on improving 

the linkages with processors and traders 

and facilitating their access to market 

through branding, advertising, 

information services and promotion of 

agricultural crops. 

(b) Project Activity: Irrigation 

Development (‘‘Irrigation Activity’’) 

In order to combat the frequent crop 

failure and food shortage due to 

variation in the amount and intensity of 

rain, along with intermittent droughts, 

the Government has begun to encourage 

improved management of water 

resources by farmers and to support 

irrigation development programs. For 

instance, the Government, through the 

Ghana Irrigation Development 

Authority, has constructed 22 public 

irrigation schemes with a combined area 

of 8,745 hectares designed to grow rice, 

either double cropped or in rotation 

with vegetables. 

Nonetheless, Ghana’s water resources, 

composed of Lake Volta, formed by the 

Akosombo Dam and the many 

tributaries of the Volta River, have been 

only lightly exploited to irrigate the 

country’s vast tracts of unused land. The 

Irrigation Activity aims to support the 

expansion of fruit and vegetable 

production by smallholder farmers, as 

well as the various farmer groups, by 

providing irrigated water to them. 

Specifically, subject to the completion 

of the relevant SEAs to MCC’s 

satisfaction, MCC Funding will support 

the following: 

(i) The construction of small retention 

ponds in all three Intervention Zones, as 

well as weirs in the Northern Zone, 

upon approval by MiDA of proposals for 

such ponds and weirs submitted by the 

FBOs. The proposals will be evaluated 

for funding based on a pre-determined 

set of criteria to be adopted by MiDA 

with the approval of MCC, which will 

include, among others, appropriate 

assessment of the environmental and 

social impact of, approved permits for, 

and the appropriate screening for the 

economic effects of, the proposed 

construction. 

(ii) With respect to each construction 

described in Section 2(b)(i) of this 

Schedule 1 to Annex I, the following 

activities: 

(1) Feasibility and design studies (that 

include an assessment of the economic 

rates of return and poverty reduction 

impacts of the relevant irrigation 

infrastructure), an EIA, an EMP and a 

RAP, each as may be necessary; and 

(2) Implementation of environmental 

and social mitigation measures, as 

identified in the studies described in 

Section 2(b)(ii)(1) of this Schedule 1 to 

Annex I, or as otherwise may be 

appropriate, including compensation of 

individuals, residences and businesses 

affected by such rehabilitation and 

upgrades, consistent with the World 

Bank’s Operational Policy on 

Involuntary Resettlement (OP 4.12). 

(c) Project Activity: Land Tenure 

Facilitation (‘‘Land Activity’’) 

Ghana currently suffers from an 

inadequate land policy and regulatory 

framework, fragmented institutional 

arrangements, and an underdeveloped 

land registration system. For instance, 

six separate public agencies operate in 

loose coordination under two different 

ministries, and each has a role in land 

administration. In part as a result of this 

institutional fragmentation, land 

transactions are costly and not 

transparent, and produce numerous 

tenure disputes. Other problems in land 

administration in Ghana include a lack 

of formal documentation of customary 

holdings, indeterminate boundaries of 

private and other land holdings, 

conflicting records of land rights and 

delays in negotiating and registering 

acquisition and transfer of land rights. 

Currently, there are approximately 

40,000 land tenure disputes pending 

before the courts. 

In Ghana, customary rights in land are 

prevalent and are offered strong legal 

protections by Ghanaian legislation. In 

addition, investors and local farmers 

access land use rights by long-term lease 

arrangements or other tenancy 

arrangements, and in some cases by 

purchases negotiated directly with the 

relevant community or the Government 

on behalf of the community. Sound 

agricultural development in Ghana 

would be greatly strengthened by 

making access to land more efficient 

and secure while preserving secure 

tenure for local communities. 

The Government is in the process of 

implementing, with support from 

multiple donors, the Land 

Administration Project (‘‘LAP’’) that 

seeks to remedy these problems through 

a systematic reform of the policy and 

institutional framework governing land 

tenure. Consistent with the overall 

policy and methodological framework of 

LAP, the Land Activity seeks to 

contribute to an environment of more 

secure land tenure and more efficient 

land access in the three Intervention 

Zones. 

Specifically, MCC Funding will 

support the following: 

(i) Facilitation of land transactions by 

providing on-demand services. To 

facilitate land transactions on an ondemand basis in all the districts within 


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the Intervention Zones, MCC Funding 

will be used to support: 

(1) Assessment of the demand for 

assistance with land transactions and 

registration, as well as the potential 

risks to vulnerable people in land 

transactions, in each district within the 

Intervention Zones; 

(2) Expansion of access to local 

services, such as information provision, 

legal services, valuation, land surveying 

and mediation of land disputes, in 

collaboration with the Lands 

Commission, based on the assessment 

described in Section 2(c)(i)(1) of this 

Schedule 1 to Annex I; 

(3) Development and management of, 

and creation of awareness for, a land 

market information database, outreach 

about the process of land registration 

and production and circulation, as 

necessary, of information regarding 

formal and customary rules and 

administrative practices on land access 

and registration; and 

(4) Strengthening the capacity of the 

Lands Commission, and other land 

sector agencies as appropriate, for more 

efficient processing of land registration 

requests, including, subject to approval 

by MiDA and MCC, supplementing the 

staffing and providing equipment to 

automate the processing of land 

registration requests. 

(ii) A pilot program for area-wide 

registration of rural land rights 

involving, among others, certain 

preparatory tasks (including, among 

others, community sensitization, 

composite maps and inventory of land 

rights) and the formalization of land 

rights consistent with the methodology 

developed under LAP (including, 

among others, resolution of land 

disputes via alternative dispute 

resolution (‘‘ADR’’) mechanisms, formal 

demarcation of parcel boundaries and 

issuance of registered land titles). The 

pilot program for registration of land 

rights will take place in two phases. In 

Phase One, the rural areas of the 

districts of Awutu Efutu Senya, 

Savalugu-Nanton and Afram Plains will 

be declared pilot registration districts 

(‘‘PRDs’’). In Phase Two, a similar set of 

activities, revised to incorporate the 

lessons learned in Phase One, will be 

carried out in six additional PRDs 

selected by MiDA based upon a predetermined set of criteria adopted by 

MiDA with the approval of MCC, 

incorporating the lessons learned in 

Phase One. 

(iii) Development of innovative 

solutions to the land tenure problems 

and the fostering of informed 

stakeholder dialogue on technical, 

social or policy issues relevant to land 

tenure and access. This activity will 

include the development and 

implementation of (1) a training action 

plan to build capacity for public and 

private sector land administration 

services; (2) an assessment and analysis 

of the legal and administrative aspects 

of compensation resulting from ADRs; 

(3) a small grants program, in 

coordination with LAP, designed to 

encourage constructive debate on land 

issues; (4) workshops and other forums 

for dialogue; and (5) development and 

adoption of a gender strategy for 

implementation of the Land Activity. 

(iv) Improvement of the courts’ ability 

to process land disputes. To establish 

expeditious and inexpensive ways to 

resolve land disputes and to reduce the 

backlog of land dispute cases in certain 

circuit courts, MiDA will collaborate 

with the Judicial Service to refine their 

understanding of the nature and scope 

of existing land disputes and the 

prospective dispute resolution 

mechanisms to resolve such disputes; to 

finalize and implement an action plan 

identifying the most appropriate 

approach; to remove the identified 

backlog of land disputes in each 

participating court; to automate the 

records relating to the resolution of the 

land disputes; and to develop a practice 

manual on the use of various ADR 

procedures for use by various members 

of the circuit courts in the Intervention 

Zones involved in handling land 

disputes. 

(d) Project Activity: Improvement of 

Post-Harvest Handling and Value Chain 

Services (‘‘Post-Harvest Activity’’) 

A number of post-harvest 

infrastructure improvements are 

necessary for the Ghanaian horticulture 

export industry to become a significant 

supplier of fruits and vegetables to the 

EU and other export markets. Therefore, 

MCC Funding will be used to develop 

post-harvest handling capacity that 

maintains the quality of product from 

the farm to the market. In addition, the 

capacity of the public sector will be 

improved to meet International Plant 

Protection Convention (‘‘IPPC’’) 

standards. In order to ensure the longterm growth and sustainability of the 

post-harvest infrastructure, the 

ownership and operation of such 

infrastructure will be privatized during 

the Compact Term based on a 

privatization plan adopted by MiDA 

with the approval of MCC. 

Specifically, MCC Funding will 

support the following: 

(i) Improvements to existing nucleus 

farm packhouses in the form of forcedair cooling and temporary cold storage 

units, to be owned and operated by the 

current owners of such packhouses. 

Nucleus farmers that procure products 

from small outgrowers, or are willing to 

procure outgrower-grown product in the 

future, will be eligible to obtain such 

improvements. Eligibility requirements 

will also include, among others, 

membership in an agricultural export 

association that will facilitate the 

collection of the full repayment of the 

cost of such improvements, with 

interest at market rate comparable to 

that charged borrowers under the Credit 

Activity, from the nucleus farmer in 

accordance with guidelines on 

provision of credit adopted by MiDA 

with the approval of MCC. Such 

repayments will be deposited in a 

special account established by MiDA for 

reinvestment into activities with the 

export associations that are consistent 

with the Program Objective selected by 

MiDA based on a pre-determined set of 

criteria adopted by MiDA with the 

approval of MCC. 

(ii) Construction of packhouses and 

other post-harvest infrastructure for 

eligible FBOs located in target districts 

within the Intervention Zones to serve 

the needs of disadvantaged smallholder 

farmers growing pineapple, papaya, 

mango, and certain vegetable and staple 

crops. The eligibility requirements will 

include, among others, a plan for full 

recovery of the operation and 

maintenance costs of such packhouses 

in accordance with guidelines on 

provision of credit adopted by MiDA 

with the approval of MCC. Any required 

permits, including environmental 

permits, will be obtained prior to 

construction. The ownership of the 

packhouses will be transferred from 

MiDA before the expiration of the 

Compact Term to the relevant FBOs that 

demonstrate sustained commercial 

operations. 

(iii) Construction of infrastructure for 

packing and cooling at the Kotoka 

International Airport that meets 

international standards, which will be 

completed in two phases. The first 

phase will include the construction of 

basic infrastructure to facilitate packing 

and storage of fresh agriculture produce, 

with provision for future installation of 

cooling facilities. The installation of 

cooling facilities in the second phase 

will be triggered by a demonstrated 

need for such capacity and a plan for 

the full recovery of the cost of 

installation, operations and 

maintenance of such capacity, in 

accordance with guidelines on 

provision of credit adopted by MiDA 

with the approval of MCC. Any required 

permits, including environmental 

permits, will be obtained prior to 

construction. 


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(iv) Upgrade of Ghana’s capacity to 

meet IPPC standards. Equipment 

installation, systems improvement and 

staff training of the Plant Protection and 

Regulatory Services Directorate within 

MOFA, the Ghana Standards Board and 

the Water Resource Institute, will be 

implemented to improve service 

delivery to the private sector. 

(e) Project Activity: Improvement of 

Credit Services for On-Farm and Value 

Chain Investments (‘‘Credit Activity’’) 

Financial service providers are few 

and far between in most of the districts 

in the Intervention Zones and have 

limited abilities to expand rapidly. Only 

one commercial bank, the Agriculture 

Development Bank, is meaningfully 

engaged in making loans to agricultural 

clients in the Northern Zone and the 

Afram Basin Zone. Although there are 

37 privately-owned rural banks and 

seven financial NGOs that serve rural 

clients in the Intervention Zones, their 

resources and capacity are very limited. 

The Credit Activity will support the 

other Project Activities under the 

Agriculture Project by facilitating access 

to credit in the Intervention Zones and 

assisting the banks to improve their 

ability to assess, grant and manage 

agriculture loans. 

Specifically, MCC Funding will 

support the following: 

(i) Provision of funds for banks, 

financial NGOs and other eligible 

financial intermediaries for on-lending 

to borrowers in the agricultural sector in 

the Intervention Zones. It is anticipated 

that rural banks and financial NGOs will 

access the facility to make seasonal and 

other working capital loans with 

maturities of less than 18 months, and 

commercial banks will access the 

facility to make medium-term loans. 

The financial intermediaries will 

assume one-half of the credit risk on the 

loans made using the facility. As an 

incentive to participate in granting and 

effectively collecting the loans, the 

highest-performing rural banks and 

financial NGOs will be eligible at the 

end of the Compact Term to receive a 

portion of the facility as a grant based 

on a set of performance evaluation 

criteria adopted by MiDA with the 

approval of MCC. This will strengthen 

the capital base of successful banks, 

enhancing their ability to sustain credit 

to farmers and the agricultural value 

chain. 

(ii) Establishment of new office 

locations, branches or loan production 

offices, in all the Intervention Zones, 

with a special preference given to the 

Northern Zone and the Afram Basin 

Zone for banks, selected based on 

eligibility criteria adopted by MiDA 

with the approval of MCC to provide 

access to credit and financial services in 

unserved areas. 

(iii) Training for rural banks and 

financial NGOs on credit and 

management skills consisting of 

classroom and on-site training 

throughout the Compact Term, 

including the purchase of a mobile 

training center for use in the rural areas 

for banking training classes and the 

necessary technology. 

(iv) Establishment of pilot programs 

intended to speed the flow of credit 

along the agriculture value chain, such 

as voucher programs with retail input 

providers. 

(f) Project Activity: Rehabilitation of 

Feeder Roads (‘‘Feeder Roads Activity’’) 

To improve transportation linkages 

and to reduce transport costs, MCC 

Funding will support the rehabilitation 

or upgrading of about 950 km of feeder 

roads in the Intervention Zones. The 

extent to which the feeder roads are 

rehabilitated or upgraded will depend 

upon, among others, their current 

condition, the present and projected 

traffic volume as a result of increased 

agricultural activity and productivity in 

those districts, and the results of an EIA, 

if any, required under Section 2(f)(ii)(1) 

of this Schedule 1 to Annex I. 

Specifically, subject to the completion 

of the relevant SEAs to MCC’s 

satisfaction, MCC Funding will support 

the following: 

(i) Rehabilitation and upgrading of the 

identified segments of feeder roads as 

follows: 

(1) Approximately 205 km of feeder 

roads in Awutu Efutu Senya; 

(2) Approximately 181 km of feeder 

roads in Akwapim South; 

(3) Approximately 55 km of feeder 

roads in South Tongu; 

(4) Approximately 7 km of feeder 

roads in Keta; 

(5) Approximately 49 km of feeder 

roads in Ketu; 

(6) Approximately 44 km of feeder 

roads in North Dayi; 

(7) Approximately 66 km of feeder 

roads in Hohoe; and 

(8) Approximately 337 km of feeder 

roads in Savelugu Nanton. 

(ii) With respect to each feeder road 

identified in Section 2(f)(i) of this 

Schedule 1 to Annex I, the following 

activities: 

(1) Feasibility and design studies (that 

include an assessment of the economic 

rates of return and poverty reduction 

impacts of the relevant feeder roads), an 

EIA, an EMP and a RAP, each as may 

be necessary; 

(2) Implementation of environmental 

and social mitigation measures, as 

identified in the studies described in 

Section 2(f)(ii)(1) of this Schedule 1 to 

Annex I, or as otherwise may be 

appropriate, including compensation of 

individuals, residences and businesses 

affected by such rehabilitation and 

upgrades, consistent with the World 

Bank’s Operational Policy on 

Involuntary Resettlement (OP 4.12); 

(3) Posting of signage and making 

other safety improvements; and 

(4) Project management, supervision 

and auditing of such rehabilitation and 

upgrades. 

3. Beneficiaries 

The Agriculture Project will directly 

benefit more than 100,000 farm and 

rural households, comprising an 

estimated 500,000 individuals, through 

the commercial activities of at least 

1,200 FBOs and 120 service providers 

located throughout the 23 target districts 

in the three Intervention Zones. In 

addition, the participation in, and 

benefits from, the Agriculture Project 

may extend to those farmers in nearby 

districts who operate or trade within, or 

provide supplies to, the Intervention 

Zones. In the Intervention Zones, 

farmers and others will also benefit 

through more secure land tenure with 

an estimated 5,000 tracts of land gaining 

registered rights, more efficient 

registration services and more efficient 

circuit courts for resolution of land 

disputes. Over 50 commercial banks, 

rural banks and financial NGOs will 

benefit from access to new funding, new 

banking capacity skills, and potentially 

a permanent injection of new capital at 

the expiration of the Compact Term to 

improve seasonal and medium-term 

credits to rural households and other 

enterprises engaged in commercial 

agriculture activities. The rehabilitation 

and upgrades to the feeder roads is 

expected to benefit up to 95,000 farm 

households and agricultural producers 

by facilitating access to domestic and 

international markets, and to critical 

social services. 

4. Donor Coordination; Role of Private 

Sector and Civil Society 

Where a number of donors, trade 

associations and agricultural lenders are 

already supporting capacity building of 

the agriculture industry, the 

Commercial Training Activity, the 

Irrigation Activity and the Post-Harvest 

Activity will build upon, and 

complement, these existing efforts. The 

lessons learned from other donors’

experiences, especially regarding the 

need to avoid narrowly targeted lending 

and over-subsidization of interest rates, 

in order to encourage sustainability will 

be incorporated into the implementation 


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of the Credit Activity. The World Bank, 

Department for International 

Development of the United Kingdom, 

KfW Entwicklungsbank, Canadian 

International Development Agency, 

Deutsche Gesellschaft fu ̈r Technische 

Zusammenarbeit (GTZ) GmbH, and 

Nordic Development Fund all support 

the LAP. The Land Activity has been 

conceived within the framework of the 

LAP and the various lessons learned 

from the LAP to date will be considered 

in the implementation of the Land 

Activity. Selection of feeder roads for 

inclusion under the Feeder Roads 

Activity has been coordinated with 

those roads being funded by the EU 

under its Feeder Roads Improvement 

Project. 

Ongoing consultations with private 

sector representatives, as well as 

smallholder farmers, large farmers, 

agricultural input suppliers, 

development organizations, 

microfinance institutions, processors, 

traders, exporters and transporters of 

agricultural products, agricultural 

industry associations, formal banking 

institutions, research and higher 

education institutions, and the 

representatives of women’s and 

environmental NGOs will be held by 

MiDA throughout the implementation of 

the Agriculture Project. 

5. U.S. Agency for International 

Development (‘‘USAID’’) 

In 2005, USAID initiated the Trade 

and Investment Program for a 

Competitive Export Economy 

(‘‘TIPCEE’’) to achieve growth in 

Ghana’s sales of non-traditional exports. 

TIPCEE seeks to provide, among others, 

certain targeted farmers with training in 

improved agricultural practices and 

access to new varieties of seeds and 

inputs. The Agriculture Project has been 

designed with input from USAID so that 

TIPCEE and the Agriculture Project will 

mutually support each other. 

Furthermore, research on land issues by 

the Institute of Statistical, Social and 

Economic Research at the University of 

Ghana will inform the implementation 

of the small grants program under 

Section 2(c)(iii)(3) of this Schedule 1 to 

Annex I. While USAID currently has no 

projects focusing on the rehabilitation or 

upgrade of feeder roads in Ghana, the 

Government intends to continue 

dialoguing with USAID to identify areas 

in which USAID’s activities may 

complement the Feeder Roads Activity. 

Finally, USAID has reviewed and 

provided input into the designing of the 

Credit Activity, and the goals and 

methods of the Credit Activity are 

consistent with the practices in favor of 

financial institution’s sustainability and 

the avoidance of subsidies as advocated 

by USAID. 

6. Sustainability 

Each Project Activity under the 

Agriculture Project is designed to 

advance the food crop and horticulture 

industry in Ghana and to lay the 

foundation for substantial and 

sustainable economic growth. To that 

end, the improvements in human 

resource capacity under the Commercial 

Training Activity, availability of water 

resources under the Irrigation Activity, 

land tenure security under the Land 

Activity, production of exportable 

produce under the Post-Harvest 

Activity, the amount of available credit 

to farmers under the Credit Activity, 

and efficiency gains in transportation of 

agricultural goods and access to inputs 

under the Feeder Roads Activity, 

together, are expected to transform 

subsistence and sub-scale cash framers 

into commercially viable operations, to 

create new, as well as to strengthen 

existing, suppliers, processors and 

marketers on sound business bases and 

to enhance a climate that attracts 

additional outside investment in the 

food crop and horticulture sectors in 

Ghana, thus leading to continued and 

sustainable growth of Ghana’s 

agricultural sector. 

The environmental and social 

sustainability of the Agriculture Project 

will be assured through ongoing 

consultations with the public regarding 

the manner in which the Agriculture 

Project is being implemented. SEAs will 

be conducted in each Intervention Zone 

affected by the Agriculture Project and, 

as necessary, environmental and social 

analyses (that include an analysis of the 

gender impacts of the Agriculture 

Project) will be conducted, as part of the 

technical survey and design of major 

investments in any physical 

infrastructure under the Agriculture 

Project to determine the environmental 

impacts and existence of economic and 

physical displacements, if any. 

Furthermore, the Government will 

ensure, directly or through MiDA (or 

any other Permitted Designee), that 

environmental and social mitigation 

measures are developed and 

implemented for each Project Activity 

under the Agriculture Project in 

accordance with the provisions of this 

Compact and any relevant 

Supplemental Agreements. MiDA will 

ensure that environmental and social 

assessment responsibilities will be 

included in the bidding documents for 

the design or supervisory firms, the 

construction firms, the independent 

technical auditing firms and any project 

management advisors. MiDA will 

ensure that HIV awareness and worker 

safety training will be included as well 

in the bidding documents for the 

construction firms. In addition, any 

required EIAs, EMPs and RAPs, in form 

and substance satisfactory to MCC, will 

be developed and implemented under 

the Agriculture Project and monitored 

by MiDA as necessary during the 

implementation of the Agriculture 

Project. Any MCC Disbursements for 

construction will be contingent upon 

issuance of environmental permits, as 

needed, or any Government statutory 

requirements. The Government will 

fund any project-related environmental 

mitigation costs (including resettlement 

costs) that are not already covered by 

MCC Funding pursuant to Sections 

2(b)(ii) and 2(f)(ii) of this Schedule 1 to 

Annex I. 

7. Policy; Legal and Regulatory Reform 

The Parties have identified the 

following policy, legal and regulatory 

reforms and actions that the 

Government shall pursue in support, 

and to reach the full benefits, of the 

Agriculture Project, the satisfactory 

implementation of which will be 

conditions precedent to certain MCC 

Disbursements as provided in the 

Disbursement Agreement: 

(a) Government shall adopt an 

amendment to cause the National Plant 

Protection Organization to be in 

compliance with IPPC standards. 

(b) Government shall take effective 

measures to implement the 

recommendations for legal and 

institutional reforms for land 

administration, land management and 

land tenure as proposed in a 

memorandum submitted by the Minister 

of Lands, Forests and Mines to the 

Cabinet and approved by the Cabinet on 

February 9, 2006. 

(c) Government shall harmonize the 

relevant land legislation and regulations 

with the constitutional mandate related 

to public taking of land for the public 

good. 

8. Proposals 

Public solicitations for proposals are 

anticipated to procure goods, works and 

services, as appropriate, to implement 

all Project Activities under the 

Agriculture Project. MiDA will develop, 

subject to MCC approval, a process for 

consideration of all such proposals. 

Notwithstanding the foregoing, MiDA 

may also consider, using a process 

developed subject to MCC approval, any 

unsolicited proposals it might receive. 


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Schedule 2 to Annex I—Transportation 

Project 

This Schedule 2 generally describes 

and summarizes the key elements of the 

Transportation Infrastructure 

Development Project (the 

‘‘Transportation Project’’) that the 

Parties intend to implement in 

furtherance of the Transportation 

Project Objective. Additional details 

regarding the implementation of the 

Transportation Project will be included 

in the Implementation Documents and 

in the relevant Supplemental 

Agreements. 

1. Background 

Agricultural development is critically 

dependent on a sound transport 

network for access to inputs and 

markets. Ghana’s transport system 

consists of four modes: Road, aviation, 

rail and maritime. Its national road 

network totals about 60,000 km while it 

has one international airport and four 

domestic airports. It has approximately 

945 km rail network currently serving 

the southern half of the country, and its 

maritime infrastructure consists of 350 

km of inland water transport over Lake 

Volta, in addition to the two seaports at 

Tema and Takoradi. 

Road transport is the dominant mode 

of transport in Ghana, carrying almost 

95% of the passenger traffic and 97% of 

all movable freight in the country. The 

Government has identified high 

transport costs as a barrier to achieving 

sustainable economic growth inhibiting 

the expansion of agricultural 

opportunities by restricting access and 

linkages to major domestic and 

international agricultural markets. 

In order to address the problem of 

high transport costs, the Government 

has developed a rolling five-year 

strategic plan, out of which the first 

three-year segment was used to prepare 

the Road Sector Development Program 

(‘‘RSDP’’) for implementation over the 

period from 2002 through 2007. The 

objective of the RSDP is to reduce 

poverty and disparities in incomes, 

improve the standard of living in both 

the rural and urban areas, and raise the 

quality of life by improving access to 

social services, all through improved 

road infrastructure. In addition, under 

the GPRS, the Government is committed 

to providing a better distribution of the 

road network and other transportation 

linkages to reduce disparities between 

the urban and the rural communities. 

MCC Funding will, therefore, be used 

to undertake improvements to the road 

network with emphasis on primary and 

secondary roads, principally in the 

Intervention Zones, consistent with the 

Government’s efforts to remove 

transport disparities between the rural 

and urban areas, to reduce vehicle 

operating and maintenance costs and to 

improve the competitiveness of 

agricultural producers using these 

roads. In addition, MCC Funding will 

also be used to undertake improvements 

to inland water transport to enhance the 

transportation network in the Afram 

Basin Zone. 

2. Summary of Transportation Project 

and Related Projects Activities 

The Transportation Project is 

designed to reduce the transportation 

costs affecting agricultural commerce at 

sub-regional and regional levels in 

Ghana, in support of the Agriculture 

Project. MCC Funding will support the 

following Project Activities: 

• Upgrades to Sections of N1 

Highway: To reduce the bottleneck in 

accessing the International Airport and 

the Port of Tema and to support an 

expansion of Ghana’s export-directed 

horticulture base beyond current 

production, by upgrading of 14 km of 

the National Highway (‘‘N1 Highway’’) 

between Tema and Accra (specifically, 

the stretch of N1 Highway from Tetteh 

Quarshie Interchange to Mallam Road 

Junction, also known as ‘‘TQM’’) and by 

constructing two grade separation 

interchanges at the Dimples-Achimota 

and Mallam Junctions to improve traffic 

management at these locations; 

• Improvements of Trunk Roads: To 

facilitate the growth of agriculture and 

access to social services by 

rehabilitating or constructing up to 230 

km of trunk roads in the Afram Basin 

Zone; and 

• Improvements of Lake Volta Ferry 

Services: To facilitate the growth of 

agriculture in the Afram Basin Zone by 

improving the ferry services of Volta 

Lake Transport Company (‘‘VLTC’’) that 

connect Adawso on the southern shore 

to Ekye Amanfrom on the northern 

shore. 

The M&E Plan (described in Annex 

III) will set forth anticipated results and, 

where appropriate, regular benchmarks 

that may be used to monitor the 

progress of the implementation of the 

Transportation Project. Performance 

against these benchmarks, as well as the 

overall impact of the Transportation 

Project, will be assessed and reported at 

the intervals to be specified in the M&E 

Plan, or as otherwise agreed by the 

Parties, from time to time. The Parties 

expect that additional indicators will be 

identified during implementation of the 

Transportation Project. The expected 

results from, and the key benchmarks to 

measure progress on, the Transportation 

Project, as well as the Project Activities 

undertaken or funded thereunder, are 

set forth in Annex III. 

Estimated amounts of MCC Funding 

for each Project Activity for the 

Transportation Project are identified in 

Annex II. Conditions precedent to each 

Project Activity under the 

Transportation, and the sequencing of 

such Project Activities, shall be set forth 

in the Disbursement Agreement, other 

Supplemental Agreements or the 

relevant Implementation Documents. 

The following summarizes each 

Project Activity under the 

Transportation Project: 

(a) Project Activity: Upgrades to 

Sections of N1 Highway (‘‘N1 Activity’’) 

The TQM runs in an East-West 

direction, constitutes a part of the 

Accra—Tema Motorway and functions 

as a part of the larger Trans-West Africa 

Highway. It also supports the urban 

traffic movement within the Greater 

Accra Metropolitan Area. The existing 

TQM, a two lane road, is severely 

congested during the greater part of the 

working day, with an estimated traffic 

flow of between 28,000 and 35,000 

vehicles per day. 

Since 1996, traffic has been growing 

around Accra by approximately 7 to 

7.5% each year. While overall traffic 

volumes in Accra continue to increase 

at a relatively rapid rate, the rate of 

increase observed on the TQM has been 

less, reflecting the degree of saturation 

on the road and travelers’ decisions not 

to use the route at congested times. 

Observed ‘‘free-flow’’ travel speeds on 

improved sections of the N1 Highway 

reach 50–70 km per hour; however, at 

narrower sections including the TQM, 

average speeds can drop to less than 10 

km per hour. 

As a result of this congestion and the 

associated high vehicle operating costs, 

the Government and its development 

partners have undertaken to improve 

and widen sections of the N1 Highway, 

including those that are contiguous to 

the TQM. Currently, the TQM acts as a 

bottleneck and negatively impacts the 

returns to the investment on the 

contiguous sections. MCC will fund 

rehabilitation to, and upgrades of, 

specific sections of the N1 Highway in 

an effort to improve the efficiency of the 

greater road network in and around 

Accra, including access to the key sea 

and air export facilities. 

Specifically, MCC Funding will 

support the following: 

(i) Improvement and upgrade to the 

14 km of N1 Highway between Tetteh 

Quarshie and Mallam Junctions as a 

three lane dual carriageway (without 

service roads) and provision of grade 


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separation interchanges at the DimplesAchimota and Mallam Junctions. 

(ii) With respect to the improvements 

and upgrades identified in Section 

2(a)(i) of this Schedule 2 to Annex I, the 

following activities: 

(1) Feasibility and design studies (that 

include an assessment of the economic 

rates of return and poverty reduction 

impacts of the relevant sections of the 

N1 Highway), an EIA, an EMP and a 

RAP; 

(2) Implementation of the 

environmental and social mitigation 

measures, as identified in the studies 

described in Section 2(a)(ii)(1) of this 

Schedule 2 to Annex I, or as otherwise 

may be appropriate, including 

compensation of individuals, residences 

and businesses affected by such 

improvements and upgrades, consistent 

with the World Bank’s Operational 

Policy on Involuntary Resettlement (OP 

4.12); 

(3) Utility relocations, as may be 

necessary; and 

(4) Project management, supervision 

and auditing of such improvements and 

upgrades. 

(iii) Feasibility and design studies 

(that include an assessment of the 

economic rates of return), an EIA, an 

EMP and a RAP, each as may be 

necessary for service roads and grade 

separation at an additional six 

interchanges along the TQM (the 

construction of which shall not be 

funded by MCC Funding). 

(b) Project Activity: Improvements of 

Trunk Roads (‘‘Trunk Roads Activity’’) 

MCC Funding will support the 

assessment and subsequent 

improvements of up to 230 km of trunk 

roads. Specifically, subject to the 

completion of the relevant SEAs to 

MCC’s satisfaction, MCC Funding will 

support the following: 

(i) Improvements to the following five 

trunk roads: 

(1) Agogo—Dome Road (77 km). 

Upgrading of 23 km of road between 

Agogo and Dukusen to bitumen 

surfacing and rehabilitation or 

construction of 54 km of road between 

Dukusen and Dome to gravel surfacing 

(including rehabilitation or construction 

of drainage culverts and bridges and 

contingent upon completion of an 

environmental audit); 

(2) Ejura—Domi Road (22 km). 

Upgrading from gravel to bitumen 

surfacing of 22 km of road between 

Ejura and Domi; 

(3) Ekye Amanfrom—Agordeke Road 

(85 km). Upgrading from gravel to 

bitumen surfacing of about 46 km, and 

rehabilitation of 39 km of existing 

bitumen-surfaced sections, of the road 

from Ekye Amanfrom and Agordeke; 

(4) Nkawkaw-Mpraeso—Kwahu Tafo 

Road (22 km). Rehabilitation and 

resurfacing of the bitumen surfaced road 

from Nkawkaw through Mpraeso to 

Kwahu Tafo; and 

(5) Kwahu Tafo—Adawso (21 km). 

Completion of paving (into bitumen 

surfacing) of 21 km of road from Kwahu 

Tafo to Adawso. 

(ii) With respect to the improvements 

and upgrades identified in Section 

2(b)(i) of this Schedule 2 to Annex I, the 

following activities: 

(1) A technical and environmental 

audit of the Agogo—Dome Road (77 km) 

to assess the impact of recent 

rehabilitation activities; 

(2) Feasibility and design studies (that 

include an assessment of the economic 

rates of return and poverty reduction 

impacts of the relevant trunk roads), an 

EIA, an EMP and a RAP, each as may 

be necessary; 

(3) Implementation of the 

environmental and social mitigation 

measures, as identified in the studies 

described in Section 2(b)(ii)(2) of this 

Schedule 2 to Annex I, or as otherwise 

may be appropriate, including 

compensation of individuals, residences 

and businesses affected by such 

improvements and upgrades, consistent 

with the World Bank’s Operational 

Policy on Involuntary Resettlement (OP 

4.12); and 

(4) Project management, supervision 

and auditing of such improvements and 

upgrades. 

(c) Project Activity: Improvements to 

Lake Volta Ferry Service (‘‘Ferry 

Activity’’) 

To facilitate growth of the agricultural 

sector of the Afram Basin Zone, MCC 

Funding will be used to support 

improvements to ferry services of VLTC, 

connecting Adawso on the southern 

shore to Ekye Amanfrom on the 

northern shore. 

Specifically, subject to the completion 

of the relevant SEAs to MCC’s 

satisfaction, MCC Funding will support 

the following: 

(i) Construction of two double-ended 

vehicle/pedestrian ferries with 

hydraulic liftable propellers. 

(ii) Training of VLTC staff, including 

management and occupational safety 

training for workshop foremen from 

VLTC’s staff in Akosombo, VLTC’s 

workshop staff, artisans, and ferry crew. 

(iii) Rehabilitation of the Akosombo 

floating dock to enhance VLTC’s 

construction, repair and maintenance 

capabilities. 

(iv) Civil works at the landing stages 

at Adawso and Ekye Amanfrom to 

increase the ferry and vehicle handling 

capacities at the same landing stages. 

(v) Rehabilitation of ferry terminals at 

Adawso and Ekye Amanfrom, including 

all-weather protection and adequate 

sanitation facilities to accommodate 

additional ferry and passenger traffic. 

(vi) Extraction of tree-stumps from the 

crossing route between Adawso and 

Ekye Amanfrom to eliminate 

navigational and safety hazards during 

low water periods. 

(vii) With respect to the 

improvements and upgrades identified 

in Sections 2(c)(i)–(vi) of this Schedule 

2 to Annex I, the following activities: 

(1) Feasibility and design studies (that 

include an assessment of the economic 

rates of return and poverty reduction 

impacts), an EIA, an EMP and a RAP, 

each as may be necessary; 

(2) Implementation of the 

environmental and social mitigation 

measures, as identified in the studies 

described in Section 2(c)(vii)(1) of this 

Schedule 2 to Annex I, or as otherwise 

may be appropriate, including 

compensation of individuals, residences 

and businesses affected by such 

improvements and upgrades, consistent 

with the World Bank’s Operational 

Policy on Involuntary Resettlement (OP 

4.12); and 

(3) Project management, supervision 

and auditing of such improvements and 

upgrades. 

3. Beneficiaries 

The principal beneficiaries of the 

Transportation Project are expected to 

be the users of the improved roads and 

ferry facilities since it decreases 

transportation costs to markets and 

social service delivery points and 

employees, in addition to the owners of 

urban and rural businesses that rely on 

the Ghanaian road network. 

More specifically, the N1 Highway 

upgrades are expected to benefit 

approximately 150,000 daily users and 

should support a broader expansion of 

Ghana’s export-directed horticulture 

beyond its current production base of 

less than 7,000 hectares. Improvements 

to the trunk roads are expected to open 

new economic opportunities for 

approximately 25,000 agricultural 

households and users, spurring 

agricultural production in the Afram 

Basin Zone, most of whom are 

considered poor or very poor. These 

improvements will also facilitate access 

to social services, including health and 

education, for these poor households. 

The benefits from time savings by 

introducing additional ferries will 

accrue to all users of the ferry. More 

fundamentally, improved reliable ferry 

service in the district of Afram Plains 

should generate improved access to 

inputs and markets for farmers and 


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increased competition among truckers, 

which should in turn yield increased 

farmgate prices and reduced operating 

costs. These benefits are likely to be 

divided equally between farmer and 

users, on the one hand, and the vehicle 

owners, on the other hand, a great 

majority of whom are poor. 

4. Donor Coordination 

Donor coordination in the transport 

sector in Ghana is organized through 

RSDP, bringing together, among others, 

the World Bank, the African 

Development Bank, Department for 

International Development (‘‘DFID’’), 

EU, Japan International Cooperation 

Agency and the Arab Bank for Economic 

Development, for a multi-year integrated 

funding program of approximately 

US$1.2 billion. The collaboration takes 

place through the annual donor 

conference and in-country monthly 

meetings to review the performance of 

the sector. The road agencies in Ghana 

have received substantial donor support 

for construction, maintenance and 

institutional strengthening. 

The Transportation Project 

coordinates with many ongoing and 

planned donor activities, and has been 

structured to ensure complementarity. 

For instance, none of the selected roads 

under the Trunk Roads Activity is 

expected to benefit from other donorsupported interventions. In addition, 

there has been no material donor 

support to the VLTC in recent years 

whereas the Ferry Activity is designed 

specifically to support this critical 

transport link to one of the poorest 

districts in Ghana. 

5. U.S. Agency for International 

Development 

USAID currently does not focus 

specifically on the construction and 

rehabilitation of the transportation 

infrastructure in Ghana. However, 

MiDA will continue to dialogue with 

USAID to identify potential 

opportunities for coordination with 

respect to the Transportation Project. 

6. Sustainability 

The Ministry of Transportation 

(‘‘MoT’’) is the principal institution 

responsible for the effective and 

sustainable management of the road 

network in Ghana. As such, it plays a 

central role in coordinating and 

regulating activities of the road agencies 

(i.e., Department of Feeder Roads 

(‘‘DFR’’), the Department of Urban 

Roads (‘‘DUR’’), the Ghana Highway 

Authority (‘‘GHA’’) and the Ghana Road 

Fund (‘‘GRF’’)). GHA, DFR and DUR are 

responsible for the administration, 

planning, control, development and 

maintenance of the trunk road network, 

feeder roads and urban roads, 

respectively. 

Approximately 45% of the MoT’s 

annual budget is allocated to operation 

and maintenance of the existing road 

network. Currently, the maintenance of 

the roads is generally funded through 

GRF, which provides a sustainable and 

reliable source of funds to pay for 

maintenance of the road network. Its 

sources of revenue include fuel levies, 

vehicle registration fees, road use fees, 

road tolls, bridge tolls, ferry tolls, and 

international transit fees (for foreign 

vehicles entering Ghana). The MoT is 

committed to maintaining this funding. 

It has also developed a plan to increase 

the total number of kilometers of 

maintainable roads by about 3,600 km a 

year, primarily though spot 

improvement and rehabilitation of roads 

previously considered as nonmaintainable. GRF monies will be used 

to maintain the roads constructed or 

improved under this Transportation 

Project. 

While VLTC is financially selfsustaining based on current toll levels, 

a lack of suitable equipment to 

accommodate an increasing number of 

ferry passengers is a key constraint to 

consistent, economic service by VLTC. 

Its severely limited maintenance 

capacity and, by extension, its 

operational abilities endanger 

continuity and dependability of its 

service. Spare parts for the presently 

operating ferries are difficult to obtain 

and the main auxiliary engines of the 

current ferry are no longer in 

production. MCC Funding is critical in 

ensuring efficient and timely services 

and meeting projected demand. MCC 

Funding will expand VLTC’s service 

and maintenance capabilities and is 

expected simultaneously to reduce its 

recurrent direct costs. 

The environmental and social 

sustainability of the Transportation 

Project will be assured through ongoing 

consultations with the public regarding 

the manner in which the Transportation 

Project is being implemented. SEAs will 

be conducted in each Intervention Zone 

affected by the Transportation Project 

(other than the district affected solely by 

the N1 Activity) and, as necessary, 

environmental and social analyses (that 

include an analysis of the gender 

impacts of the Transportation Project) 

will be conducted, as part of the 

technical survey and design of major 

investments in any physical 

infrastructure under the Transportation 

Project to determine the environmental 

impacts and existence of economic and 

physical displacements, if any. 

Furthermore, the Government will 

ensure, directly or through MiDA (or 

any other Permitted Designee), that 

environmental and social mitigation 

measures are developed and 

implemented for each Project Activity 

under the Transportation Project in 

accordance with the provisions of this 

Compact and any relevant 

Supplemental Agreements. MiDA will 

ensure that environmental and social 

assessment responsibilities will be 

included in the bidding documents for 

the design or supervisory firms, the 

construction firms, the independent 

technical auditing firms and any project 

management advisors. MiDA will 

ensure that HIV awareness and worker 

safety training will be included as well 

in the bidding documents for the 

construction firms. In addition, any 

required EIAs, EMPs and RAPs, in form 

and substance satisfactory to MCC, will 

be developed and implemented under 

the Transportation Project and 

monitored by MiDA as necessary during 

the implementation of the 

Transportation Project. Any MCC 

Disbursements for construction will be 

contingent upon issuance of 

environmental permits, as needed, or 

any other Government statutory 

requirements. The Government will 

fund any project-related environmental 

mitigation costs (including resettlement 

costs) that are not already covered by 

MCC Funding pursuant to Sections 

2(a)(ii), 2(b)(ii), and 2(c)(vii) of this 

Schedule 2 to Annex I. 

7. Policy; Legal and Regulatory Reform 

The Parties have identified the 

following policy, legal and regulatory 

reforms and actions that the 

Government shall pursue in support, 

and to reach the full benefits, of the 

Transportation Project, the satisfactory 

implementation of which will be 

conditions precedent to certain MCC 

Disbursements as provided in the 

Disbursement Agreement: 

(a) Government shall allocate 

sufficient funds from GRF or other 

sources to ensure proper routine and 

periodic maintenance of the road 

network through continuing to increase 

GRF revenues (through fuel levies, tolls, 

vehicle registration/licensing fees, 

among others) and to ensure that GRF 

revenues are used first for maintenance 

before any allocations are made for 

other works (such as rehabilitation). 

(b) Government shall adhere to 

agreements reached with donors under 

the RSDP and the upcoming Transport 

Sector Development Program. 

(c) Government shall develop a 

maritime framework governing access 

and operations on Lake Volta with 

respect to the Ferry Activity. 


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(d) Government shall develop and 

approve the emergency response plans 

of VLTC with respect to the Ferry 

Activity. 

8. Proposals 

Public solicitations for proposals are 

anticipated to procure goods, works and 

services, as appropriate, to implement 

all Project Activities under the 

Transportation Project. MiDA will 

develop, subject to MCC approval, a 

process for consideration of all such 

proposals. Notwithstanding the 

foregoing, MiDA may also consider, 

using a process developed subject to 

MCC approval, any unsolicited 

proposals it might receive. 

Schedule 3 to Annex I—Rural 

Development Project 

This Schedule 3 generally describes 

and summarizes the key elements of the 

Rural Services Development Project (the 

‘‘Rural Development Project’’) that the 

Parties intend to implement in 

furtherance of the Rural Development 

Project Objective. Additional details 

regarding the implementation of the 

Rural Development Project will be 

included in the Implementation 

Documents and in the relevant 

Supplemental Agreements. 

1. Background 

Residents of rural areas of Ghana have 

spotty and frequently poor access to 

basic community services such as 

potable water, community sanitation, 

schools at all levels and domestic 

electricity. This has both limited the 

productivity of these people and made 

it difficult to attract or retain skilled 

entrepreneurs or workers in the rural 

areas. In turn, this has limited Ghana’s 

ability to realize the full potential of its 

agricultural resources. 

In the past, the Government delivered 

community services, such as schools 

and water or sanitation facilities, with 

primary direction from the central 

government and little input from the 

local governments or the beneficiaries. 

Consequently, decisions on the location 

and the design of community resources 

were frequently suboptimal, and the 

resulting delivery of the related services 

inefficient. During the past few years, 

however, the Government committed to 

a strategy of decentralization to 

empower local governments and the 

beneficiaries in the hopes of more 

efficient delivery of community 

services. 

One of the major obstacles to 

successful implementation of this 

strategy is the lack of adequately trained 

specialists in local governments. For 

instance, the lack of capacity at the local 

level to conduct public procurement 

results in leakage, misuse, and 

suboptimal use of public resources. 

Therefore, the Government and the 

donors have increasingly provided 

support to build the institutional 

capacity of local government units and 

to support the ability of rural 

populations to influence more directly 

the provision of community services 

that impact them. 

In addition, currently in Ghana, there 

is a shortage of credit, as well as 

financial services, available in general to 

a large portion of the rural populations, 

and in particular to those engaged in 

agriculture. Much of the financial sector 

currently focuses on providing capital to 

people in the urban areas or on shorterterm commercial activity rather than to 

investments in agricultural production, 

partly owing to the high risks and 

transaction costs in making such loans. 

Insufficiency of rural services has 

constrained the growth of the private 

sector in rural areas. Ghana’s 

development plans, including the GPRS 

and other strategies, have been designed 

to foster private sector led growth and 

development. However, the success of 

these programs has been constrained by 

the lack of services in rural 

communities. The Rural Development 

Project is designed to address each of 

these problems in a coordinated fashion 

by improving the design and delivery of 

community services through enhancing 

the capacity of the local government 

units, by allowing the beneficiaries to 

provide meaningful input on the 

decisions on investment in community 

infrastructure and by improving the 

efficiency of the rural financial 

institutions in order that they may serve 

the people in agriculture more 

effectively. 

2. Summary of Rural Development 

Project and Related Projects Activities 

The Rural Development Project is 

designed to support agricultural and 

agri-business development under the 

Agriculture Project and to strengthen 

the rural institutions that provide 

complementary services. MCC Funding 

will support the following Project 

Activities: 

• Strengthening of Public Sector 

Procurement Capacity: To support the 

development of procurement 

professionals and reinforce the 

capabilities of the Government to 

procure goods and services; 

• Support for Community Services: 

To complement the Agriculture Project 

by funding construction and 

rehabilitation of educational facilities, 

construction and rehabilitation of water 

and sanitation facilities and 

electrification of the rural areas, and by 

providing capacity building support to 

local government institutions; and 

• Strengthening of Rural Financial 

Services: To automate and interconnect 

the 121 rural banks and to provide other 

improvements in the national payments 

systems that will draw a large number 

of people currently not served or underserved into the financial system, and, if 

there is sufficient funding and 

appropriate waivers are granted, to 

interconnect the savings and loans 

institutions to the national payments 

system. 

The M&E Plan (described in Annex 

III) will set forth anticipated results and, 

where appropriate, regular benchmarks 

that may be used to monitor the 

progress of the implementation of the 

Rural Development Project. Performance 

against these benchmarks, as well as the 

overall impact of the Rural Development 

Project, will be assessed and reported at 

the intervals to be specified in the M&E 

Plan, or as otherwise agreed by the 

Parties, from time to time. The Parties 

expect that additional indicators will be 

identified during implementation of the 

Rural Development Project. The 

expected results from, and the key 

benchmarks to measure progress on, the 

Rural Development Project, as well as 

the Project Activities undertaken or 

funded thereunder, are set forth in 

Annex III. 

Estimated amounts of MCC Funding 

for each Project Activity for the Rural 

Development Project are identified in 

Annex II. Conditions precedent to each 

Project Activity under the Rural 

Development Project, and the 

sequencing of such Project Activities, 

shall be set forth in the Disbursement 

Agreement, other Supplemental 

Agreements or the relevant 

Implementation Documents. 

The following summarizes each 

Project Activity under the Rural 

Development Project: 

(a) Project Activity: Strengthening of 

Public Sector Procurement Capacity 

(‘‘Procurement Capacity Activity’’) 

The Procurement Capacity Activity is 

designed to strengthen the capacity of 

the various procurement entities within 

the Government to procure necessary 

goods, works and services with greater 

economy, efficiency and effectiveness. It 

is also intended to allow such entities 

to implement fully Ghana’s Public 

Procurement Act of 2003 (Act 663) by 

assisting the development of training 

materials for the staff of such entities, 

the formation of a career path within the 

Government, and the placement of 

trainees in such procurement entities to 

provide them with practical application. 


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Specifically, MCC Funding will 

support the following: 

(i) Development of the modules for 

training and certification that are 

relevant to the public sector and 

consistent with Ghana’s Public 

Procurement Act of 2003 (Act 663), 

including consultation with educational 

institutions to develop a standard 

procurement curriculum for use in 

formal procurement training programs, 

development of an internationallyaccepted educational program in 

procurement in conjunction with other 

international procurement bodies such 

as the Chartered Institute of Purchasing 

and Supply of the United Kingdom, and 

introduction of such curriculum to the 

various institutions that will offer 

courses in procurement. 

(ii) Establishment of procurement as a 

career in public service with clear lines 

of promotion and reporting by assisting 

the Government in attracting a cadre of 

procurement professionals, in clearly 

defining the career paths as a 

procurement professional in the 

Government (including formulating the 

requirements for entry and promotion, 

defining a procurement career path with 

clear job functions, grades, promotion 

rules and salary structure) and 

establishing a well-trained procurement 

staff whose duties are institutionalized 

within the Government. 

(iii) Provision of procurement-related 

training to potential procurement 

professionals by identifying a target 

group of professionals, students and 

public or civil service members 

qualified to enter into a structured 

procurement training program, 

establishing agreements, policies, 

procedures, and protocols with the 

various public and civil service 

organizations, educational institutions 

and private sector businesses to identify 

and provide short term and interim 

opportunities for procurement program 

participants to perform procurement 

and supply chain activities in both 

public and private sectors and 

establishing a procurement internship 

program that has entry requirements, 

predetermined procurement training 

requirements, clear job functions for the 

program, a stipend structure for 

internship assignments, and rules for 

compliance and completion. 

(b) Project Activity: Support for 

Community Services (‘‘Community 

Services Activity’’) 

The Community Services Activity is 

designed to complement the Agriculture 

Project by providing educational, water 

and sanitation and rural electrification 

infrastructure in the Intervention Zones 

and by enhancing the capacity of local 

governments to deliver the related 

services. These interventions are part of 

a larger effort by the Government to 

expand the provision of basic 

community services throughout Ghana, 

and are specifically expected to enhance 

the sustainability of the Agriculture 

Project by providing the necessary 

infrastructure to improve health of 

communities, to enhance skill 

development through access to 

education, and to facilitate small-scale 

post-harvest processing of agricultural 

products. Availability of funding to the 

districts in the Intervention Zones will 

be a function of population, relative 

poverty and actual investment 

performance under the Agriculture 

Project. Specific investments will be 

driven by the demands of local 

communities, prioritized through a 

broad-based, inclusive process to 

enhance community ownership and 

strengthen sustainability. 

Specifically, MCC Funding will 

support the following: 

(i) Capacity building by Rural 

Infrastructure Coordinating Unit 

(‘‘RICU’’) of the Ministry of Local 

Government, Rural Development and 

Environment for the local government 

units in the Intervention Zones to 

strengthen their ability to deliver 

community services, to manage assets 

and to ensure transparency and 

accountability in their operations. 

(ii) Rehabilitation and construction of 

educational facilities in the form of 

primary, junior secondary and senior 

secondary schools, as well as vocational 

and technical institutions; provided that 

such rehabilitation or construction (1) is 

consistent with the agreed norms of the 

Ministry of Education, Science and 

Sports, Ghana Educational Service, and 

other parties as may be agreed from time 

to time between MiDA and MCC, (2) is 

included in the list of priorities of the 

relevant district’s ‘‘District Development 

Plan,’’ and reflected in the annual 

district budget and District Assembly 

Common Fund (‘‘DACF’’) plans, (3) is in 

a community that demonstrates 

commitment to such rehabilitation or 

construction through contributions of 

cash or other property (including land 

and raw material) or labor, (4) is 

consistent with the standards on 

adequacy of the provision of operating 

costs (including staffing, as well as the 

operation and maintenance, of the 

facilities) adopted by MiDA with the 

approval of MCC, (5) meets criteria 

satisfying cost effectiveness, (6) is 

within a district in which the 

Agriculture Project is being 

implemented and (7) does not create 

any adverse environmental or social 

impact under the standards adopted by 

MiDA with the approval of MCC; 

provided, further, that the foregoing may 

be adjusted based on the results of the 

relevant SEA upon its completion. 

(iii) Construction of water and 

sanitation facilities to achieve improved 

health, to reduce the incidence of illness 

and loss of productivity due to unsafe 

drinking water and poor sanitation and 

hygiene, and to reduce the time required 

to procure potable water. MCC Funding 

will be used to fund boreholes (whether 

mechanized or using hand-pumps), 

small town pipe systems and 

community sanitary facilities; provided 

that, such construction (1) is consistent 

with the agreed norms of the 

Community Water and Sanitation 

Authority, as well as of the Ministry of 

Water Resources, Works and Housing, 

and other parties as may be agreed from 

time to time between MiDA and MCC, 

(2) is included in the list of priorities of 

the relevant district’s ‘‘District 

Development Plan,’’ and reflected in the 

annual budget and DACF plans, (3) is in 

a community that demonstrates 

commitment to such construction 

through contributions of cash or other 

property (including land or raw 

material) or labor, (4) is consistent with 

the standards on adequacy of the 

provision of operating costs (including 

staffing, as well as the operation and 

maintenance, of the facilities) and cost 

recovery mechanisms adopted by MiDA 

with approval of MCC, (5) meets criteria 

satisfying cost effectiveness, (6) is 

within a district in which the 

Agriculture Project is being 

implemented, (7) includes a hygiene 

education module and (8) does not 

create any adverse environmental or 

social impact under the standards 

adopted by MiDA with the approval of 

MCC; provided, further, that the 

foregoing may be adjusted based on the 

results of the relevant SEA upon its 

completion. 

(iv) Expansion of rural electrification 

to unserved and underserved areas for 

domestic uses as well as for use in 

irrigation, agricultural processing and 

education. MCC Funding will be used to 

fund both on-grid and off-grid 

(including photovoltaic, biofuel and 

micro-hydro) rural electricity 

investments; provided that, such 

investment (1) is consistent with the 

policy and strategic plans of the 

Ministry of Energy, the Electric 

Corporation of Ghana, the Volta River 

Authority and other parties as may be 

agreed from time to time between MiDA 

and MCC, (2) is in a community that 

demonstrates commitment to such 

construction through contributions of 

cash or other property (including land 

or raw material) or labor, (3) is 


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consistent with the standards on 

adequacy of the provision of operating 

costs (including staffing, as well as the 

operation and maintenance, of the 

facilities) and cost recovery mechanisms 

adopted by MiDA with approval of 

MCC, (4) is within a district in which 

the Agriculture Project is being 

implemented, (5) meets criteria 

satisfying cost effectiveness, and (6) 

does not create any adverse 

environmental or social impact under 

the standards adopted by MiDA with 

the approval of MCC; provided, further, 

that the foregoing may be adjusted based 

on the results of the relevant SEA upon 

its completion. 

(v) With respect to the activities 

identified in Sections 2(b)(ii), (iii) and 

(iv) of this Schedule 3 to Annex I, the 

implementation of the environmental 

and social mitigation measures 

including compensation of individuals, 

residences and businesses affected by 

such improvements and upgrades, 

consistent with the World Bank’s 

Operational Policy on Involuntary 

Resettlement (OP 4.12). 

(c) Project Activity: Strengthening of 

Rural Financial Services (‘‘Financial 

Services Activity’’) 

The Financial Services Activity is 

designed to extend the depth and value 

of financial services provided to rural 

populations including farmers by 

reinforcing their integration into the 

cash economy, as well as widening their 

access to savings, credit and cash 

transfer services. It will build on the 

capabilities of the rural banks that are 

privately-owned generally by members 

of the local communities. These projects 

will connect the rural banks into the 

national payments systems of Ghana, 

and will also facilitate internal and 

international remittance flows. In 

addition, if there is sufficient MCC 

Funding, and if Ghana Microfinance 

Network lacks other financial support to 

maintain its microfinance institution 

data collection and performance 

monitoring activities, MCC may, at its 

option, provide financial support to 

Ghana Microfinance Network for such 

maintenance. 

Specifically, MCC Funding will 

support the following: 

(i) Extension and intensification of the 

program initiated under the World Bank 

Rural Financial Strengthening Project to 

automate the accounting systems of 

substantially all of the 121 rural banks 

(and their branches) using a common 

software platform. Priority will be given 

to automating those rural banks and 

their branches located in the 

Intervention Zones. 

(ii) Connection of the rural banks and 

their branches to a wide area network. 

The rural banks and their branches will 

be connected through a grid to 

transform their product offerings and to 

reduce their operating expenses. 

(iii) Support for the software to 

introduce check truncation, hardware to 

create a system for the automated 

clearing of electronic payments and 

technical assistance to review and 

propose amendments to the existing 

legal and regulatory structure for 

payments under Ghana’s national 

payment system. 

(iv) National campaign to educate 

businesses, banks, and consumers 

regarding the benefits of the Financial 

Services Activity to generate demand for 

use of the electronic payment products. 

A broad-based urban and rural 

education campaign will demonstrate 

the benefits of these new products and 

of the institutions that offer them. 

3. Beneficiaries 

The Procurement Capacity Activity 

will directly benefit Ghana as 

approximately 11 to 15% of all goods 

and services produced in Ghana are 

consumed through public 

procurements. The Community Services 

Activity will primarily benefit the same 

populations as the Agriculture Project, 

that is, the residents of the districts in 

the Intervention Zones. Institutional 

beneficiaries will also include the local 

government institutions (e.g., the 

district assemblies and their area 

councils). Finally, rural inhabitants will 

benefit from the continuing devolution 

and decentralization of provision of a 

full range of community services, thus 

increasing community empowerment. 

The beneficiaries of the Financial 

Services Activity will include the 

economically active population in rural 

areas as actual or potential clients of the 

rural banks, and more broadly, all users 

of financial services. The outreach of 

new financial services to rural 

communities and the poor should create 

incentives to de-emphasize cash 

transactions in favor of checks and other 

payment instruments, and the direct 

savings from such changeover will 

include, among others, a reduction in 

the national currency printing bill, the 

very substantial costs of secure currency 

transport, and the material interest 

expense that the Bank of Ghana incurs 

in issuing securities to absorb excess 

liquidity at the end of the cocoa season. 

The automation of the rural banks will 

also improve and streamline the 

supervision of these institutions by the 

Bank of Ghana, and otherwise improve 

the breadth and speed of management 

reporting systems. 

4. Donor Coordination; Role of Civil 

Society 

The Procurement Capacity Activity 

complements the activities of other 

donors. DFID is actively supporting the 

Public Procurement Board (‘‘PPB’’) in 

Ghana with an interest in developing 

procurement capacity within existing 

government bodies. The increased 

demand for public sector procurement 

capacity created by the recent 

enactment of the Public Procurement 

Act of 2003 (Act 663) allows for 

multiple donors to be involved without 

duplication of efforts. In addition, 

policy and regulatory initiatives funded 

under this Rural Development Project 

will be designed to complement and 

support the efforts of other donors 

(including the World Bank) that are 

leading similar initiatives at the regional 

and district levels. 

The Community Services Activity 

builds on the Community Based Rural 

Development Program, funded by the 

World Bank and Agence Franc ̧aise de 

De ́veloppement, strengthening local 

government service delivery, providing 

capacity building to local government 

units and building substantial 

enhancements to the quality and 

productivity of rural communities. The 

Community Services Activity will also 

be in line with efforts of the 

Government and other donors to 

strengthen local government institutions 

in order to facilitate the delivery of 

education and water and sanitation 

infrastructure. The district assemblies 

and area councils are assuming 

increasing responsibility for planning, 

coordinating and executing donor 

activities in their respective areas. 

The efforts to automate the rural 

banks and to connect them through a 

wide-area-network under the Financial 

Services Activity are extensions and 

intensifications of the efforts of the 

World Bank, African Development Bank 

and International Fund for Agricultural 

Development, first, to create Apex Bank 

to provide services to the rural banks 

and, second, to begin the process of 

automation using a common software. 

Finally, the civil society will play a 

key role in community by overseeing 

the organization, information 

dissemination, project implementation, 

and monitoring and evaluation with 

respect to the Rural Development 

Project. 

5. U.S. Agency for International 

Development 

USAID has supported a number of 

programs in the education sector which 

led to the construction of classrooms, 

staff houses and latrines, in addition to 


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a program entitled Strategies for 

Advancing Girls’ Education. USAID has 

also undertaken projects in community 

water and sanitation, including 

provision of hygiene education. The 

Rural Development Project will 

continue to advance the objectives of 

these USAID programs while also 

greatly expanding on them to 

complement the Agriculture Project. 

6. Sustainability 

The Procurement Capacity Activity 

will create ‘‘educational capital,’’ in the 

form of curricula and diploma 

programs, which will serve a longerterm goal of capacity building within 

the Government. The Procurement 

Capacity Activity is designed to 

continue as an institutional capacity 

program after the expiration of the 

Compact Term, under the direction of 

the PPB. During the Compact Term, the 

various ministries of the Government 

will be required to present sustainable 

and economically viable plans to 

maintain and provide continuing 

education for their respective 

procurement staff. The Community 

Services Activity will ensure 

appropriate measures for adequate cost 

recovery and continuing operation and 

maintenance as a condition precedent to 

approval of investments, providing a 

basis to ensure sustainability after 

construction. Rural banks participate 

voluntarily in the wide area network 

activity, subject to a commitment to 

maintain equipment and service from 

their operating budgets beyond the 

Compact Term. 

The environmental and social 

sustainability of the Rural Development 

Project will be assured through ongoing 

consultations with the public regarding 

the manner in which the Rural 

Development Project is being 

implemented. SEAs will be conducted 

in each Intervention Zone affected by 

the Rural Development Project and, as 

necessary, environmental and social 

analyses (that include an analysis of the 

gender impacts of the Rural 

Development Project) will be 

conducted, as part of the technical 

survey and design of major investments 

in any physical infrastructure under the 

Rural Development Project to determine 

the environmental impacts and 

existence of economic and physical 

displacements, if any. Furthermore, the 

Government will ensure, directly or 

through MiDA (or any other Permitted 

Designee), that environmental and 

social mitigation measures are 

developed and implemented for each 

Project Activity under the Rural 

Development Project in accordance with 

the provisions of this Compact and any 

relevant Supplemental Agreements. 

MiDA will ensure that environmental 

and social assessment responsibilities 

will be included in the bidding 

documents for the design or supervisory 

firms, the construction firms, the 

independent technical auditing firms 

and any project management advisors. 

MiDA will ensure that HIV awareness 

and worker safety training will be 

included as well in the bidding 

documents for the construction firms. In 

addition, EMPs and RAPs, in form and 

substance satisfactory to MCC, will be 

developed and implemented under the 

Rural Development Project and 

monitored by MiDA as necessary during 

the implementation of the Rural 

Development Project. Any MCC 

Disbursements for construction will be 

contingent upon issuance of 

environmental permits, as needed, or 

any other Government statutory 

requirements. The Government will 

fund any project-related environmental 

mitigation costs (including resettlement 

costs) that are not already covered by 

MCC Funding pursuant to Section 

2(b)(v) of this Schedule 3 to Annex I. 

7. Policy; Legal Reform; and Procedural 

Changes 

The Parties have identified the 

following policy, legal and regulatory 

reforms and actions that the 

Government shall pursue in support, 

and to reach the full benefits, of the 

Rural Development Project, the 

satisfactory implementation of which 

will be conditions precedent to certain 

MCC Disbursements as provided in the 

Disbursement Agreement: 

(a) The PPB shall develop a funding 

and sustainability plan for Procurement 

Capacity Activity (including the amount 

of such funding) in form and substance 

satisfactory to MCC. 

(b) Service norms defining expected 

provision of relevant services to rural 

communities, and standards for 

appropriate designs, including initial 

capital cost and estimated continuing 

operating and maintenance costs, will 

be agreed among the various 

Government Affiliates, including the 

relevant ministries, departments and 

agencies, and adopted by MiDA, subject 

to approval of MCC, for all investments 

to be undertaken under the Community 

Services Activity. 

8. Proposals 

Public solicitations for proposals are 

anticipated to procure goods, works and 

services, as appropriate, to implement 

all Project Activities under the Rural 

Development Project. MiDA will 

develop, subject to MCC approval, a 

process for consideration of all such 

proposals. Notwithstanding the 

foregoing, MiDA may also consider, 

using a process developed subject to 

MCC approval, any unsolicited 

proposals it might receive. 

Annex II—Summary of Multi-Year 

Financial Plan 

This Annex II to the Compact (the 

‘‘Financial Plan Annex’’) summarizes 

the Multi-Year Financial Plan for the 

Program. Each capitalized term in this 

Financial Plan Annex shall have the 

same meaning given such term 

elsewhere in this Compact. Unless 

otherwise expressly stated, each Section 

reference herein is to the relevant 

Section of the main body of the 

Compact. 

1. General 

A multi-year financial plan summary 

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

is attached hereto as Exhibit A. By such 

time as specified in the Disbursement 

Agreement, MiDA will adopt, subject to 

MCC approval, a Multi-Year Financial 

Plan that includes, in addition to the 

multi-year summary of estimated MCC 

Funding and the Government’s 

contribution of funds and resources, an 

estimated draw-down rate for the first 

year of the Compact Term based on the 

achievement of performance milestones, 

as appropriate, and the satisfaction or 

waiver of conditions precedent. Each 

year, at least thirty (30) days prior to the 

anniversary of the Entry into Force, the 

Parties shall mutually agree in writing 

to a Detailed Budget for the upcoming 

year of the Program, which shall include 

a more detailed budget for such year, 

taking into account the status of the 

Program at such time and making any 

necessary adjustments to the Multi-Year 

Financial Plan. 

2. Implementation and Oversight 

The Multi-Year Financial Plan and 

each Detailed Budget shall be 

implemented by MiDA, consistent with 

the approval and oversight rights of 

MCC and the Government as provided 

in this Compact, the Governing 

Documents and the Disbursement 

Agreement. 

3. Estimated Contributions of the Parties 

The Multi-Year Financial Plan 

Summary identifies the estimated 

annual contribution of MCC Funding for 

Program administration, M&E and each 

Project. The Government’s contribution 

of resources to Program administration, 

M&E and each Project shall consist of (a) 

‘‘in-kind’’ contributions in the form of 

Government Responsibilities and any 

other obligations and responsibilities of 

the Government identified in this 


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Compact, and (b) such other 

contributions or amounts as may be 

identified in relevant Supplemental 

Agreements between the Parties or as 

may otherwise be agreed by the Parties; 

provided, in no event shall the 

Government’s contribution of resources 

be less than the amount, level, type and 

quality of resources required effectively 

to carry out the Government 

Responsibilities or any other 

responsibilities or obligations of the 

Government under or in furtherance of 

this Compact. 

4. Modifications 

The Parties recognize that the 

anticipated distribution of MCC 

Funding among the various activities for 

Program administration, M&E, the 

Projects and the Project Activities will 

likely require adjustment from time to 

time during the Compact Term. In order 

to preserve flexibility in the 

administration of the Program, as 

provided in Section 4(a)(iv) of Annex I, 

the Parties may, upon agreement of the 

Parties in writing and without amending 

the Compact, change the designations 

and allocations of funds among the 

Projects, the Project Activities, or any 

activity under Program administration 

or M&E, or between a Project identified 

as of the Entry into Force and a new 

project, without amending this 

Compact; provided, however, that such 

reallocation (a) is consistent with the 

Objectives and the Implementation 

Documents, (b) shall not materially 

adversely impact the applicable Project, 

Project Activity (or any component 

thereof), or any activity under Program 

administration or M&E as specified in 

this Annex II, (c) shall not cause the 

amount of MCC Funding to exceed the 

aggregate amount specified in Section 

2.1(a) of this Compact, and (d) shall not 

cause the Government’s obligations or 

responsibilities or overall contribution 

of resources to be less than specified in 

Section 2.2(a) of this Compact, this 

Annex II or elsewhere in the Compact. 

5. Conditions Precedent; Sequencing 

MCC Funding will be disbursed in 

tranches. The obligation of MCC to 

approve MCC Disbursements and 

Material Re-Disbursements for the 

Program is subject to satisfactory 

progress in achieving the Objectives and 

on the fulfillment, deferral or waiver of 

any conditions precedent specified in 

the Disbursement Agreement for the 

relevant activity under the Program. The 

sequencing of Project Activities or subactivities and other aspects of how the 

Parties intend the Program to be 

implemented will be set forth in the 

Implementation Documents, including 

the Work Plan for the Program (and each 

component thereof), and MCC 

Disbursements and Re-Disbursements 

will be made consistent with such 

sequencing. 

EXHIBIT A.—MULTI-YEAR FINANCIAL PLAN SUMMARY

Project 

(US $ ’000) 

Year 1 Year 2 Year 3 Year 4 Year 5 Total 

1. Agriculture Project: 

(a) Commercial Training Activity ...................................................... 9,542 14,081 17,511 15,946 8,935 66,015 

(b) Irrigation Activity .......................................................................... ................ 942 8,679 11,378 6,609 27,608 

(c) Land Activity ................................................................................ 2,790 2,698 2,343 1,705 1,152 10,688 

(d) Post-Harvest Activity ................................................................... 3,641 6,504 6,747 2,782 702 20,376 

(e) Credit Activity .............................................................................. 14,300 12,200 13,100 10,300 8,500 58,400 

(f) Feeder Roads Activity .................................................................. 2,344 10,644 21,955 22,954 ................ 57,897 

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

2. Transportation Project: 

(a) N1 Activity ................................................................................... 13,099 11,200 18,576 28,752 29,669 101,296 

(b) Trunk Roads Activity ................................................................... 1,484 6,739 13,900 14,331 ................ 36,454 

(c) Ferry Activity ................................................................................ 263 2,141 2,950 ................ ................ 5,354 

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

3. Rural Development Project: 

(a) Procurement Capacity Activity .................................................... 447 921 950 ................ ................ 2,318 

(b) Community Services Activity ....................................................... 7,500 15,000 22,500 30,000 ................ 75,000 

(c) Financial Services Activity ........................................................... 7,576 5,189 7,078 4,127 ................ 23,970 

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

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

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

5. Program Administration and Audits: 

(a) Program Administration (MiDA) .................................................. 4,915 5,188 5,326 5,573 5,852 26,854 

(b) Fiscal Agent ................................................................................ 300 1,073 1,608 1,678 716 5,375

(c) Procurement Agent ..................................................................... 310 1,013 1,519 1,585 677 5,104 

(d) Audit ............................................................................................ 1,500 1,500 1,500 1,500 1,500 7,500 

(e) Strategic Environmental Assessments ....................................... 1,800 ................ ................ ................ ................ 1,800 

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

Total Estimated MCC Contribution ............................................ 74,811 100,033 149,242 155,611 67,312 547,009 


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Annex III—Description of the M&E Plan 

This Annex III to the Compact (the 

‘‘M&E Annex’’) generally describes the 

components of the Monitoring and 

Evaluation Plan for the Program, and 

how the progress toward the Compact 

Goal will be measured. Each capitalized 

term in this M&E Annex shall have the 

same meaning given such term 

elsewhere in this Compact. This M&E 

Annex represents the agreement 

between the Government and MCC on 

the Compact Goal and the Objectives of 

the Program and the timeline for 

achieving them. 

1. Overview 

As a condition precedent to certain 

MCC Disbursements as provided in the 

Disbursement Agreement, the parties 

shall formulate an M&E Plan that 

specifies (a) how the implementation of 

the Program and progress toward the 

Compact Goal and Objectives will be 

monitored (the ‘‘Monitoring 

Component’’), (b) a methodology, 

process and timeline for the evaluation 

of planned, ongoing, or completed 

Projects and Project Activities to 

determine their impact and likely 

sustainability (the ‘‘Evaluation 

Component’’) and (c) other components 

of the M&E Plan described below. 

Information regarding the Program’s 

performance, including the M&E Plan, 

and any amendments or modifications 

thereto, as well as periodicallygenerated reports, will be made publicly 

available on the MiDA Web site and 

elsewhere. The Compact Goal, the 

Program Objective and the Project 

Objectives are summarized in the 

following diagram: 

2. Monitoring Component 

To monitor progress toward the 

achievement of the Compact Goal and 

the Objectives, the Monitoring 

Component of the M&E Plan shall 

contain the following elements: 

(a) Indicators. The M&E Plan shall 

measure the results of the Program using 

quantitative, objective and reliable data 

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

one or more targets that quantify the 

result and the expected time by which 

that result will be achieved (each, a 

‘‘Target’’). The M&E Plan will detail the 

process for measuring, and reporting on, 

the Indicators at several levels. First, the 

indicators for the Compact Goal (each, 

a ‘‘Compact Goal Indicator’’) will 

measure the results for the overall 

Program on the intended beneficiaries 

(collectively, the ‘‘Beneficiaries’’). 

Second, the indicators for the Program 

Objective (each, an ‘‘Objective 

Indicator’’) will measure the ultimate 

result for the Program. Third, 

intermediate indicators (each, an 

‘‘Outcome Indicator’’) will measure the 

intermediate results achieved under 

each of the Project Activities (each, an 

‘‘Outcome’’) in order to provide early 

measures of progress towards the 

accomplishment of the Project 

Objective. Further, other indicators will 

be included in the M&E Plan to measure 

the delivery of goods and services under 

the Project Activities. 

(i) Compact Goal Indicators. The M&E 

Plan shall contain the Compact Goal 

Indicators and their definitions, as listed 

in the table below. The corresponding 

Targets to be achieved are in the 

following tables: 

COMPACT GOAL INDICATORS: DEFINITIONS

[Compact Goal: Reduce poverty through economic growth] 

Indicator Definition 

Crop income (Northern Zone) (US$) ................................. Net income per household from growing yams, sorghum and groundnuts (as proxies 

of the most likely crops grown).2 Northern Zone is comprised of the following five 

districts: Savelugu Nanton, Tolon Kumbungu, Tamale, West Mamprusi and 

Karaga. 


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COMPACT GOAL INDICATORS: DEFINITIONS—Continued 

[Compact Goal: Reduce poverty through economic growth] 

Indicator Definition 

Crop income (Afram Basin Zone—East) (US$) ................. Net income per household from growing maize, yams and cassava (as proxies of the 

most likely crops grown). Afram Basin Zone—East is comprised of the following 

two districts: Fanteakwa and Kwahu South. 

Crop income (Afram Basin Zone—West) (US$) ................ Net income per household from growing maize, yams and cassava (as proxies of the 

most likely crops grown). Afram Basin Zone—West is comprised of the following 

four districts: Ejura Sekyedumasi, Afram Plains, Sekyere East and Sekyere West. 

Crop income (Southern Zone) (US$) ................................. Net income per household from growing pineapples and vegetables (as proxies of 

the most likely crops grown). Southern Zone is comprised of the following twelve 

districts: Gomoa, Awutu Efutu Senya, Akuapim South, Manya Krobo, Dangme 

West, Yilo Krobo, North Dayi, Hohoe, Ketu, Keta, South Tongu and Akatsi. 

Aggregate poverty gap of beneficiaries (US$) .................. Income value at the poverty line minus average income of beneficiaries, multiplied by 

the number of beneficiaries, disaggregated by each Intervention Zone. Income 

value at the poverty line is defined by the Ghana Statistical Service’s Ghana Living 

Standards Survey. The fifth round of this survey was conducted in 2006. 

2 Data will be reported on actual crops grown in all Intervention Zones. Proxies were used to estimate baseline and target values. 

COMPACT GOAL INDICATORS: BASELINES AND TARGETS

[Compact Goal: Reduce poverty through economic growth] 

Indicator 

Targets/Year 

Baseline 1 2 3 4 5 

Crop income (Northern Zone) (US$) ............................ 3 $700 ................ ................ ................ ................ 4 135% increase over 

baseline. 

Crop income (Afram Basin Zone—East) (US$) ........... 5 820 ................ ................ ................ ................ 6 55% increase over baseline. 

Crop income (Afram Basin Zone—West) (US$) .......... 7 540 ................ ................ ................ ................ 8 42% increase over baseline. 

Crop income (Southern Zone) (US$) ........................... 9 1,860 ................ ................ ................ ................ 10 33% increase over 

baseline. 

Aggregate poverty gap of beneficiaries (US$) ............. TBD TBD (during the second quarter of 2007) 

3Baseline assumes that 2 hectares are cultivated. 

4Target assumes that 2.2 hectares are cultivated. 

5Baseline assumes that 1 hectare is cultivated. 

6Target assumes that 1.1 hectares are cultivated. 

7Baseline assumes that 1 hectare is cultivated. 

8Target assumes that 1.1 hectares are cultivated. 

9Baseline assumes that 2 hectares are cultivated. 

10Target assumes that farmers transition from maize, yam and cassava production to 2 hectares of pineapple and 1 hectare of vegetable 

cultivation. 

(ii) Objective Indicators and Outcome 

Indicators. The M&E Plan shall contain 

the Objective Indicators and Outcome 

Indicators and their definitions, as listed 

in the tables below. The corresponding 

Targets to be achieved are in the tables 

following the definitions. 

OBJECTIVE INDICATORS: DEFINITIONS

Indicator Definition 

Objective: Increase production and productivity of high-value cash and food crops in the Intervention Zones in Ghana. 

Production of staple crops (metric tons) ............................ Metric tons of maize, yams, cassava and groundnuts (as proxies of most likely crops 

grown) grown and produced by the FBOs participating in the Program. 

Production of high-value crops (metric tons) ..................... Metric tons of pineapple (as proxy of most likely crop grown) grown and produced by 

the FBOs participating in the Program, of which 60% are for export markets and 

40% for domestic markets. 

Productivity of land (metric tons/hectare): maize .............. Metric tons/hectare of maize (as proxy of most likely crop grown) grown and produced. 

Productivity of land in the Northern Zone (metric tons/ 

hectare): yams.

Metric tons/hectare of yam (as proxy of most likely crop grown) grown and produced. 

Productivity of land (metric tons/hectare): export-grade 

pineapple.

Metric tons/hectare of pineapple (as proxy of most likely crop grown) grown and produced. 

Objective: Enhance the competitiveness of high-value cash and food crops in local and international markets. 

Additional Ghanaian agriculture exports (metric tons): 

pineapple.

Additional metric tons of pineapple (as proxy of most likely crop exported) exported. 


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OBJECTIVE INDICATORS: DEFINITIONS—Continued 

Indicator Definition 

Additional Ghanaian agriculture exports (metric tons): 

Asian vegetables.

Additional metric tons of Asian vegetables (as proxy of most likely crop exported) exported. 

The ratio of (i) price of Ghanaian imported into European 

markets (Euro/kg) to (ii) price of non-Ghanaian imported into European market (Euro/kg).

Price (including cost of Cargo, Insurance and Freight) of pineapple (as proxy of most 

likely crop exported), imports into the European markets from Ghana, divided by 

price (including cost of Cargo, Insurance and Freight) of pineapple imported into 

the European markets from countries other than Ghana. Import data will be based 

on information published by Eurostat. 

OBJECTIVE INDICATORS: BASELINES AND TARGETS

Indicator 

Year 

Baseline 1 2 3 4 5 

Objective: Increase production and productivity of high-value cash and food crops in the Intervention Zones in Ghana. 

Production of staple crops (metric 

tons).

430,000 ........ ............................... 1% increase over 

baseline.

4% increase over 

baseline.

11% increase over 

baseline. 

Production of high-value crops (metric 

tons).

225,000 ........ 2% increase over 

baseline.

5% increase over 

baseline.

16% increase over 

baseline.

50% increase over 

baseline. 

Productivity of land (metric tons/hectare): maize.1.9 ........ ............................... 1% increase over 

baseline.

4% increase over 

baseline.

12% increase over 

baseline. 

Productivity of land in the Northern 

Zone (metric tons/hectare): yams.

7 ........ ............................... 61% increase over 

baseline.

65% increase over 

baseline.

75% increase over 

baseline. 

Productivity of land (metric tons/hectare): export-grade pineapple.8 ........ ............................... 1% increase over 

baseline.

8% increase over 

baseline.

26% increase over 

baseline. 

Objective: Enhance the competitiveness of high-value cash and food crops in local and international markets. 

Additional Ghanaian agriculture exports (metric tons): pineapple.0 ........ ............................... 8,300 ..................... 14,500 ................... 21,700. 

Additional Ghanaian agriculture exports (metric tons): Asian vegetables.0 ........ ............................... 1,344 ..................... 2,192 ..................... 3,178. 

The ratio of (i) price of Ghanaian imports into European markets (Euro/ 

kg) to (ii) price of non-Ghanaian imports into European market (Euro/ 

kg).

0.75 ........ ............................... 0.75 ....................... 0.78–0.81 .............. 0.81–0.88. 

OUTCOME INDICATORS: DEFINITIONS

[Agriculture Project] 

Indicator Definition 

Number of farmers adopting new technologies and farming methods.Number of farmers in the FBOs participating in the Program that adopt new technologies methods and farming methods, assuming an 85% adoption rate. 

Percentage of post harvest loss at farmgate (metric lost/ 

metric tons produced).

(i) Metric tons of post harvest lost, divided by (ii) metric tons of total harvest tons produced at the farmgate. 

SMEs processing products and/or providing inputs to 

farmers.

TBD. 

Irrigation Activity: 

Number of hectares irrigated ...................................... Number of hectares irrigated as a result of the Program. 

Land Activity: 

Number of days to conduct a land transaction .......... Number of days to purchase, rent or sell a parcel of land from initiation of negotiation 

with current landowner to registration in title or deeds registry of the property right 

acquired. 

Number of land disputes in the pilot registration districts.Number of land disputes encountered during inventory of land rights for the pilot registration districts and on record at the relevant district courts as of Entry into Force, 

disaggregated by region. 

Registration of land rights in the pilot registration districts.Percentage of targeted parcels registered in the title registry. 

Post-Harvest Activity: 

Volume of products passing through post-harvest 

treatment (metric tons).

Metric tons of pineapple, among other crops, passing through small-scale storage facilities, packhouse pre- coolers or packhouses. 

Credit Activity: 

Portfolio-at-risk of agricultural loan fund ..................... Share of value of all loans disbursed from the agricultural loan that have one or more 

fund installments of principal or interest past due over thirty (30) days, 

disaggregated by short-term and medium-term loans. 


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OUTCOME INDICATORS: DEFINITIONS—Continued 

[Agriculture Project] 

Indicator Definition 

Value of loans disbursed to clients from agricultural 

loan fund (US$).

Value of loans disbursed from the agricultural loan fund for on-farm and off-farm investment by institutions (including financial institutions, input suppliers, etc.), 

disaggregated by short-term and medium-term loans. 

Number of additional loans ......................................... Number of loans disbursed from the agricultural loan fund for on-farm and off-farm 

investment by institutions (including financial institutions, input suppliers, etc.), 

disaggregated by short-term and medium-term loans. 

Feeder Roads Activity: 

Vehicle operating costs (on roads requiring minor rehabilitation).Vehicle operating costs including both operation and maintenance costs and travel 

time, disaggregated by road segment. Minor rehabilitation consists of re- gravelling 

(i.e., change from poor gravel to improved gravel surface). 

Vehicle operating costs (on roads requiring medium 

rehabilitation).

Vehicle operating costs including both operation and maintenance costs and travel 

time, disaggregated by road segment. Medium rehabilitation consists of upgrading 

road surface from average gravel to bitumen surface. 

Vehicle operating costs (on roads requiring major rehabilitation).Vehicle operating costs including both operation and maintenance costs and travel 

time, disaggregated by road segment. Major rehabilitation consists of upgrading 

road surface from poor gravel to bitumen surface. 

OUTCOME INDICATORS: DEFINITIONS

[Transportation Project] 

Indicator Definition 

N–1 Activity: 

OUTCOME INDICATORS: DEFINITIONS

[Transportation Project] 

Indicator Definition 

Volume capacity ratio ........... Number of vehicles on road divided by the number of vehicles at road capacity. 

Vehicles per hour at peak 

hour.

Number of vehicles on road, disaggregated by vehicle type, at peak traffic hour. 

Travel time at peak hour ...... Travel time in minutes to traverse the 14 kilometers of road upgraded at peak traffic hour. 

International roughness 

index.

Road-surface quality measure (meters in height per kilometers distance). 

Trunk Roads Activity: 

Annual average daily 

traffic.

Number of vehicles per day adjusted for time-of-day and seasonal differences for each road, disaggregated by 

vehicle type. Rate of increase in traffic volume is in addition to the estimated growth rate in traffic of 6%. 

International roughness 

index (of roads requiring minor rehabilitation).

Road-surface quality measure (meters in height per kilometers distance) for each road. Minor rehabilitation consists of re-gravelling (i.e., change from poor gravel to improved gravel surface). 

International roughness 

index (of road requiring major rehabilitation).

Road-surface quality measure (meters in height per kilometers distance) for each road. Major rehabilitation consists of upgrading road surface from poor gravel to bitumen surface. 

Ferry Activity: 

Travel time for walk-on 

passengers and small 

vehicles.

Average time spent by walk-on passengers and small vehicles to cross Volta River, including time spent waiting 

to board ferry and to on- and off-load. 

Travel time for trucks .... Average time spent by trucks to cross Lake Volta, including time spent waiting to board ferry and to on- and offload. 

Annual average daily 

traffic (vehicle).

Number of vehicles per day, adjusted for time-of-day and seasonal differences, disaggregated by vehicles type. 

Annual average daily 

traffic (passengers).

Number of passengers per day, adjusted for time-of-day and seasonal differences. 

OUTCOME INDICATORS: DEFINITIONS

[Rural Development Project] 

Indicator Definition 

Procurement Capacity Activity: 

Time per procurement .. Amount of time to execute contract award from the point of receiving a requirement for processing to contract 

award, disaggregated by the size of each award as follows: (i) US$ 2,500 and below, (ii) US$ 2,501–US$ 

10,000, (iii) US$ 10,001–US$ 100,000, (iv) US$ 100,001–US$ 500,000 and (v) US$ 500,001 and above. 


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OUTCOME INDICATORS: DEFINITIONS—Continued 

[Rural Development Project] 

Indicator Definition 

Quality of procurement A randomly-selected sample of procurements will be evaluated each year to assess the outcomes of the procurements as compared to the outcomes of similar procurements in the districts not participating in the Program. 

Community Services Activity: 

Local Government Service 

Delivery Sub-Activity: 

Score card of citizen 

satisfaction with services.

TBD. 

Education Facilities Sub-Activity: 

Gross enrollment rates Number of students enrolled in school divided by the number of individuals of appropriate school age, in the relevant district (or other area). 

Gender parity in school 

enrollment.

Number of females enrolled in school divided by the number of males enrolled in school. 

Water and Sanitation Facilities Sub-Activity: 

Distance to collect water Distance between house and water source in kilometers. 

Time to collect water ..... Time spent collecting water, including travel and waiting time. 

Distance to sanitation 

facility.

Distance between house and sanitation facility in kilometers. 

Travel time to sanitation 

facility.

Time spent traveling to and waiting at sanitation facility. 

Incidence of guinea 

worm, diarrhea or 

bilharzia.

Number of individuals suffering from illness attributed to guinea worm, diarrhea and bilharzia divided by the number of individuals, in the relevant district (or other area). 

Average number of days 

lost due guinea worm, 

diarrhea or bilharzia.

Number of days spent accessing treatment and recovering from illness attributed to guinea worm, diarrhea or 

bilharzia. 

Rural Electrification Sub-Activity: 

Percentage of households, schools and 

agricultural processing 

plants in target districts with electricity.

Number of houses, schools and agricultural processing plants with electricity connections divided by the total 

number of households, schools, and agricultural processing plants in the relevant district (or other processing 

area). 

Financial Services Activity: 

Number of inter-bank 

transactions.

Number of checks received by rural banks plus number of remittances received by rural banks. 

Value of deposit accounts in rural banks.Cedi value of total deposits in rural banks. 

OUTCOME INDICATORS: BASELINES AND TARGETS

[Agriculture Project] 

Indicator 

Targets / year 

Baseline 1 2 3 4 5 

Commercial Training Activity: 

Number of farmers adopting new 

technologies and farming methods.

0 ........ 5,100 ..................... 12,750 ................... 15,300 ................... 17,850. 

Percentage of post harvest lost at 

farmgate (metric tones lost/metric tons produced).

20% ........ 10–14% ................ 10–14% ................ 10–14% ................ 10–14%. 

SMEs processing products and/or 

providing inputs to farmers.

TBD TBD 

Irrigation Activity: 

Number of hectares irrigated ........ 0 0 280 ........................ 1,100 ..................... 1,720 ..................... 1,960. 

Land Activity: 

Number of days to conduct a land 

transaction.

TBD ........ 50% decrease 

from baseline.

67% decrease 

from baseline.

Number of land disputes in the 

pilot registration districts.

TBD ........ ............................... 30% decrease 

from baseline.

............................... 50% decrease 

from baseline. 

Registration of land rights in the 

pilot registration districts.

TBD ........ ............................... 30% increase from 

baseline.

............................... 100% increase 

from baseline. 

Post-Harvest Activity: 


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OUTCOME INDICATORS: BASELINES AND TARGETS—Continued 

[Agriculture Project] 

Indicator 

Targets / year 

Baseline 1 2 3 4 5 

Volume of products passing 

through post-harvest treatment 

(metric tons).

0 ........ 111,820 ................. 129,900 ................. 143,400..

Credit Activity: 

Portfolio-at-risk of agricultural loan 

fund.

0% ........ 20% ...................... 20% ...................... 20% ...................... 20%. 

Value of loans disbursed to clients 

from agricultural loan fund(US$).

0 ........ 4,500 ..................... 12,000 ................... 14,500 ................... 17,000. 

Number of additional loans .......... 0 ........ 5,000 ..................... 13,000 ................... 15,500 ................... 18,000. 

Feeder Roads Activity: 

Vehicle operating costs (on roads 

requiring minor rehabilitation).

TBD ........ ............................... 20% decrease 

from baseline.

20% decrease 

from baseline.

20% decrease 

from baseline. 

Vehicle operating costs (on roads 

requiring medium rehabilitation).

TBD ........ ............................... 30% decrease 

from baseline.

30% decrease 

from baseline.

30% decrease 

from baseline. 

Vehicle operating costs (on roads 

requiring major rehabilitation).

TBD ........ ............................... 40% decrease 

from baseline.

40% decrease 

from baseline.

40% decrease 

from baseline. 

OUTCOME INDICATORS: BASELINES AND TARGETS

[Transportation Project] 

Indicator 

Targets / year 

Baseline 1 2 3 4 5 

N–1 Activity: 

Volume capacity ratio ......................... 0.85–1 ..................... ........ ................ ................ .................................. 0.26. 

Vehicles per hour at peak hour .......... >2000 ...................... ........ ................ ................ .................................. 3,120. 

Travel time at peak hour ..................... 60 minutes ............... ........ ................ ................ .................................. 20 minutes. 

International roughness index ............. TBD ......................... ........ ................ ................ .................................. 2.5. 

Trunk Roads Activity: 

Annual average daily traffic ................ 570 .......................... ........ ................ ................ 35% increase in traffic volume.35% increase in traffic volume. 

International roughness index (of 

roads requiring minor rehabilitation).

9–12 ........................ ........ ................ 6.0 6.0 ........................... 6.0. 

International roughness index (of 

roads requiring major rehabilitation).

9–12 ........................ ........ ................ 3.5 3.5 ........................... 3.5. 

Ferry Activity: 

Travel time for walk-on passengers 

and small vehicles.

150 minutes ............. TBD 

Travel time for trucks .......................... 370 minutes ............. TBD 

Annual average daily traffic (vehicle) 53 ............................ TBD 

Annual average daily traffic (passenger).541 .......................... TBD 

OUTCOME INDICATORS: BASELINES AND TARGETS

[Rural Development Project] 

Indicator Baseline 

Targets/years 

1 2 3 4 5 

Procurement Capacity Activity: 

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

Quality of procurement 

TBD ................. TBD 

Community Services Activity: 

Local Government Service Delivery Sub-Activity: 

Score card of citizen satisfaction with services ...................... TBD ................. TBD 

Education Facilities Sub-Activity: 

Gross enrollment rates ...........................................................

Gender parity in school enrollment 

TBD ................. TBD (during the second quarter of 2007) 


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OUTCOME INDICATORS: BASELINES AND TARGETS—Continued 

[Rural Development Project] 

Indicator Baseline 

Targets/years 

1 2 3 4 5 

Water and Sanitation Facilities Sub-Activity: 

Distance to collect water ........................................................

Time to collect water 

Distance to sanitation facility 

Travel time to sanitation facility 

Incidence of guinea worm, diarrhea or bilharzia 

Average number of days lost due guinea worm, diarrhea or 

bilharzia 

TBD ................. TBD (during the second quarter of 2007) 

Rural Electrification Sub-Activity: 

Percentage of households, schools and agricultural processing plants in target districts with electricity.TBD ................. TBD (during the second quarter of 2007) 

Financial Services Activity: 

Number of inter-bank transactions ......................................... 210,000 ............ TBD (during the second quarter of 2007) 

Value of deposit accounts in rural banks ............................... 1,680 billion 

Cedis.

(iii) The M&E Plan will also include 

a number of activity-level measures that 

will track progress toward realizing the 

direct outputs of the Projects and Project 

Activities. Examples of the indicators 

likely to be included in the M&E Plan 

are: 

(1) Number of farmers receiving 

commercial training; 

(2) Number of irrigation facilities 

built; and 

(3) Kilometers of road upgraded. 

(b) Beneficiaries. The M&E Plan shall 

describe the Beneficiaries in detail, 

including the expected number of 

beneficiaries, their income, gender and 

other general demographic 

characteristics. 

(c) Data Collection and Reporting. 

The M&E Plan shall establish guidelines 

for data collection and a reporting 

framework, including a schedule of 

Program reporting and responsible 

parties. In addition, MiDA shall conduct 

regular assessments of Program 

performance to measure progress on the 

Compact Goal and the Objectives, and to 

alert all Parties to any problems in 

implementation of the Program. These 

assessments will report actual results 

compared to the Targets on the 

Indicators referenced in the Monitoring 

Component, explain deviations between 

these actual results and Targets, and 

describe any planned actions to address 

performance problems. MiDA shall 

promptly deliver any data or reports it 

receives to MCC along with any other 

related documents, as specified in the 

M&E Plan or as may be requested from 

time to time by MCC, and will make 

these assessments available to the 

public on their Web site. 

(d) Data Quality Reviews. As 

determined in the M&E Plan or as 

otherwise requested by MCC, the quality 

of the data gathered through the M&E 

Plan shall be reviewed to ensure that 

data reported are as reliable, timely and 

valid as resources will allow. The 

objective of any data quality review will 

be to verify the quality and the 

consistency of performance data, across 

different implementation units and 

reporting institutions. Such data quality 

reviews also will serve to identify where 

consistent levels of quality are not 

possible, given in-country capacity or 

other constraints. 

3. Evaluation Component 

The Program shall be evaluated on the 

extent to which the Projects contribute 

to the Compact Goal and Objectives. 

The Evaluation Component shall 

contain the methodology for conducting 

the most rigorous impact evaluations 

feasible and cost-effective, as well as the 

process and timeline for analyzing data. 

The Evaluation Component shall 

contain two types of reports: a Final 

Evaluation and Project, Project Activity, 

or Interim Evaluations. 

(a) Final Evaluation. MCC will engage 

an independent evaluator to conduct an 

evaluation of the Program at the 

expiration or early termination of the 

Program (‘‘Final Evaluation’’). The 

evaluation methodology, timeline, data 

collection, and analysis requirements 

will be finalized and detailed in the 

M&E Plan. The Final Evaluation shall, at 

a minimum, (i) estimate quantitatively 

and in a statistically valid way, the 

causal relationship between the 

Compact Goal (to the extent possible), 

the Objectives and Outcomes; (ii) 

determine if, and analyze the reasons 

why, the Compact Goal, Objectives and 

Outcomes were or were not achieved; 

and (iii) assess the overlapping benefits 

of the Projects. 

(b) Project, Project Activity or Interim 

Evaluations. The Evaluation Component 

in the M&E Plan will also describe other 

individual Project, Project Activity, or 

interim evaluations (‘‘Interim 

Evaluations’’). The evaluation 

methodology, timeline, data collection, 

and analysis requirements will be 

finalized and detailed in the M&E Plan. 

Determination of the evaluation 

methodologies will be condition 

precedent for certain MCC 

Disbursements as provided in the 

Disbursement Agreement. 

(c) Ad Hoc Evaluations or Special 

Studies. In addition to the evaluations 

described in the M&E Plan, MCC may 

require ad hoc evaluations or special 

studies prior to the expiration of the 

Compact Term. If MiDA engages an 

evaluator, the evaluator shall be an 

externally contracted independent 

source, subject to the prior written 

approval of MCC, for terms of reference 

and final selection, following a tender in 

accordance with the Procurement 

Guidelines, and otherwise in 

accordance with any relevant 

Implementation Letter or Supplemental 

Agreement. The cost of an independent 

evaluation or special study may be paid 

from MCC Funding. If MiDA requires an 

ad hoc independent evaluation or 


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special study at the request of the 

Government for any reason, including 

for the purpose of contesting an MCC 

determination with respect to a Project 

or Project Activity or to seek funding 

from other donors, no MCC Funding or 

MiDA resources may be applied to such 

evaluation or special study without 

MCC’s prior written approval. 

4. Other Components of the M&E Plan 

In addition to the Monitoring 

Component and the Evaluation 

Component, the M&E Plan shall include 

the following components for the 

Program, Projects and Project Activities, 

including, where appropriate, roles and 

responsibilities of the relevant parties 

and Providers: 

(a) Costs. A detailed annual budget 

estimate for all components of the M&E 

Plan. 

(b) Assumptions and Risks. Any 

assumptions and risks external to the 

Program that underlie the 

accomplishment of the Objectives and 

Outcomes; provided such assumptions 

and risks shall not excuse performance 

of the Parties, unless otherwise 

expressly agreed to in writing by the 

Parties. 

5. Implementation of the M&E Plan 

(a) Approval and Implementation. 

The approval and implementation of the 

M&E Plan, as amended from time to 

time, shall be in accordance with this 

M&E Annex, and any other relevant 

Supplemental Agreement or 

Implementation Document. A review of 

the completed portions of the M&E Plan 

by the Board of MiDA shall be required 

prior to the expiration of the first year 

of the Program. Review and approval of 

the M&E Plan shall be completed by 

time specified in the Disbursement 

Agreement. 

(b) MCC Disbursement for a Project 

Activity. As a condition to certain MCC 

Disbursements as provided in the 

Disbursement Agreement, there shall be 

satisfactory progress on the M&E Plan 

for the relevant Project or Project 

Activity, and substantial compliance 

with the M&E Plan, including any 

reporting requirements. In addition, for 

certain activities, collection of baseline 

data will be condition precedent for 

certain MCC Disbursements as provided 

in the Disbursement Agreement. 

(c) Modifications. Notwithstanding 

anything to the contrary in the Compact, 

including the requirements of this M&E 

Annex, the Parties may modify or 

amend the M&E Plan or any component 

thereof, including those elements 

described herein, without amending this 

Compact; provided, any such 

modification or amendment of the M&E 

Plan shall be reviewed by the Board of 

MiDA and approved by MCC in writing, 

and is otherwise consistent with the 

requirements of this Compact and its 

Objectives, and any relevant 

Supplemental Agreement between the 

Parties. 

[FR Doc. 06–6914 Filed 8–18–06; 8:45 am] 

BILLING CODE 9210–01–P 


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