TREATIES AND OTHER INTERNATIONAL ACTS SERIES 09-916 

________________________________________________________________________ 

ECONOMIC ASSISTANCE 

 Millennium Challenge Compact 

 Between the 

UNITED STATES OF AMERICA 

and NAMIBIA 

Signed at Windhoek July 28, 2008 

with 

Annexes 

and 

Agreement Amending the 

Millennium Challenge Compact 

Signed at Washington November 10, 2008 
 NOTE BY THE DEPARTMENT OF STATE 

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

(80 Stat. 271; 1 U.S.C. 113)—

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

under the authority of the Secretary of State shall be competent 

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

treaties, and proclamations by the President of such treaties and 

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

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

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

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

or authentication thereof.” 
NAMIBIA 

Economic Assistance 

 Millennium Challenge Compact 

 signed at Windhoek July 28, 2008; 

 Entered into force September 16, 2009. 

 With annexes. 

 And agreement amending the 

 Millennium Challenge Compact. 

 Signed at Washington November 10, 2008; 

 Entered into force September 16, 2009. 
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MILLENNIUM CHALLENGE COMPACT 

BETWEEN 

THE UNITED STATES OF AMERICA 

ACTING THROUGH 

THE MILLENNIUM CHALLENGE CORPORATION 

AND 

THE REPUBLIC OF NAl\fIBIA 

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MILLENNIUM CHALLENGE COMPACT 

TABLE OF CONTENTS 

Article 1. Goal and Objectives .......................................................................................... 1 

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

Section l.2 Program Objective ...................................................................................... 1 

Section l.3 Project Objectives ....................................................................................... 1 

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

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

Section 2.2 Compact Implementation Funding ............................................................. 2 

Section 2.3 MCC Funding ............................................................................................. 3 

Section 2.4 Disbursement .............................................................................................. 3 

Section 2.5 Interest ......................................................................................................... 3 

Section 2.6 Namibia Resources; Budget ........................................................................ 3 

Section 2.7 Limitations on the Use ofMCC Funding ................................................... 4 

Section 2.8 Taxes ........................................................................................................... 4 

Section 2.9 Lower Middle Income Countries ................................................................ 5 

Article 3. Implementation .............................................................................................. '" 5 

Section 3.1 

Section 3.2 

Section 3.3 

Section 3.4 

Section 3.5 

Section 3.6 

Section 3.7 

Section 3.8 

Article 4. 

Section 4.1 

Section 4.2 

Section 4.3 

Article 5. 

Section 5.1 

Section 5.2 

Section 5.3 

Section 5.4 

Article 6. 

Section 6.1 

Section 6.2 

Program Implementation Agreement .......................................................... 5 

Responsibilities ........................................................................................... 5 

Policy Performance ..................................................................................... 6 

Assurances .................................................................................................. 6 

Implementation Letters ............................................................................... 6 

Procurement ................................................................................................ 6 

Records; Accounting; Covered Providers; Access ..................................... 7 

Audits; Revie\vs .......................................................................................... 8 

Communications ............................................................................................... 9 

Communications ................... '" ................................................................... 9 

Representatives ......................................................................................... 10 

Signatures .................................................................................................. 10 

Termination; Suspension; Refunds ................................................................. 10 

Termination; Suspension .......................................................................... 10 

Refunds; Violation .................................................................................... 12 

Survival ..................................................................................................... 12 

Post-Ternlination Discussions .................................................................. 12 

Compact Annexes; Amendments; Governing Law ........................................ 12 

Annexes ..................................................................................................... 12 

Amendments ............................................................................................. 12 

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Section 6.3 Inconsistencies .......................................................................................... 13 

Section 6.4 Governing Law ......................................................................................... 13 

Section 6.5 Additional Instruments .............................................................................. 13 

Section 6.6 References to MCC Website ..................................................................... 13 

Section 6.7 References to Laws, Regulations, Policies and Guidelines ...................... 13 

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

Article 7. Entry Into Force .............................................................................................. 14 

Section 7.1 Domestic Requirements ............................................................................ 14 

Section 7.2 Conditions Precedent to Entry into Force ................................................. 14 

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

Section 7.4 Compact Term .......................................................................................... 14 

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

Annex I: Program Description 

Annex II: Multi-Year Financial Plan Summary 

Annex III: Description of the Monitoring and Evaluation Plan 

Annex IV: Conditions to Disbursement of Compact Implementation Funding 

Annex V: Definitions 

Annex VI: MCA-Namibia Procurement Rules 

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MILLENNIUM CHALLENGE COMPACT 

PREAMBLE 

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

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

corporation ("'.wee'), and the Republic of Namibia ("Namibia") (individually a "Party" and 

collectively, the "Parties"). 

Recalling that Namibia consulted with the private sector and civil society ofthe Republic of 

Namibia to determine the priorities for the use of Millennium Challenge Account assistance and 

developed and submitted to MCC a proposal focused on poverty reduction through improving 

human resources, capacities and skills. enhancing public and private sector investment in tourism 

and increasing agricultural productivity; and 

Recognizing that MCC wishes to help the Republic of Namibia implement a program to achieve 

the goal and objectives described herein (the "Program"); 

Capitalized terms used herein shall have the meanings specified in Annex V hereto. 

The Parties hereby agree as follows: 

ARTICLE 1. 

GOAL AND OBJECTIVES 

I. Section 1.1 Compact Goal. The goal of this Compact is to reduce poverty in the Republic of 

I Namibia through economic gro\\-th (the "Compact Goar). I 

Section 1.2 Program Objective. The objective of the Program (as further described in 

Annex I) (the "Program Objective") is to increase the competence ofthe Namibian workforce 

(knowledge, skills and attitude), and increase the productivity of agricultural and nonagricultural enterprises in rural areas. 

Section 1.3 Project Objectives. The objectives of the Projects (as further described in 

Annex I) (each a "Project Objective" and collectively, the "Project Objectives") are: 

(a) The objective of the Education Project is to improve the quality of the workforce 

in Namibia by enhancing the equity and effectiveness of basic, vocational, and tertiary education 

and of technical skills. 

(b) The objective of the Tourism Project is to grow the Namibian tourism industry 

with explicit targeting of income streams to conservancy households. 

(c) The objective of the Agriculture Project is to increase the total value added from 

livestock in the northern communal areas of the Republic of Namibia and to increase income 

from indigenous natural products accruing to the poor nationwide. 

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ARTICLE 2. 

FUNDING AND RESOURCES 

Section 2.1 Program Funding. 

MCC hereby grants to Namibia, under the tenns of this Compact, an amount not to exceed Three 

Hundred Four Million Four Hundred Seventy-Seven Thousand Eight Hundred Sixteen United 

States Dollars (US$304,477,816) ("Program Funding") for use by Namibia to implement the 

Program. The allocation of Program Funding is generally described in Annex II to this Compact. 

Section 2.2 Compact Implementation Funding. 

(a) MCC hereby grants to Namibia, under the tenns of this Compact, in addition to 

the Program Funding described in Section 2.1, an amount not to exceed Nineteen Million Five 

Hundred Forty-Three Thousand One Hundred Seventy-Five United States Dollars 

(US$19,543, 175) ("Compact Implementatioll FUllding") under Section 609(g) ofthe 

Millennium Challenge Act of2003, as amended (the ".ll1CA Act"), for use by Namibia for the 

following purposes: 

(i) fiscal and procurement administration activities and costs (including, for 

example, costs related to standby agents procured by MCC); 

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

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

capital equipment; 

(iii) baseline surveys for monitoring and evaluation; 

(iv) additional work for feasibility studies and development of technical 

scopes; and 

(v) other Compact implementation activities approved by MCC. 

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

Compact. 

(b) Notwithstanding Section 7.3 of this Compact, as of the date that this Compact is 

signed by MCC and Namibia (i) this Section 2.2 shall be effective, and (ii) any other provisions 

of this Compact applicable to Compact Implementation Funding shall be effective for purposes 

of Compact Implementation Funding only, provided that the MCA-Namibia Procurement Rules 

will only be effective after ratification ofthis Compact by Namibia. 

(c) Each Disbursement (as defined in Section 2.4) of Compact Implementation 

Funding shall be subject to satisfaction ofthe conditions to such disbursement as set forth on 

Annex IV. 

(d) If, after the first anniversary of this Compact entering into force, MCC detennines 

that the full amount of Compact Implementation Funding under Section 2.2(a) of this Compact 

exceeds the amount which reasonably can be utilized for the purposes and uses set forth in 

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Section 2.2(a) ofthis Compact, MCC, by written notice to Namibia, may withdraw the excess 

amount, thereby reducing the amount of the Compact Implementation Funding as set forth in 

Section 2.2(a) (such excess, the "Excess CIF Amount'). In such event, the amount of Compact 

Implementation Funding granted to Namibia under Section 2.2(a) will be reduced by the Excess 

CIF Amount, and MCC will have no further obligations with respect to such Excess CIF 

Amount. 

(e) MCC, at MCC's option by written notice to Namibia, may elect to grant to 

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

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

conditions of this Compact applicable to Program Funding. 

Section 2.3 MCC Funding. 

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

Compact as ".wec Funding." 

Section 2.4 Disbursement. 

In accordance with this Compact and the Program Implementation Agreement (as defined in 

Section 3.1), MCC will disburse MCC Funding for expenditures incurred in furtherance of the 

Program (each instance, a "Disbursement'). Subject to the satisfaction of all applicable 

conditions, the proceeds of such Disbursements will be made available to Namibia, at MCC's 

sole election, by (a) deposit to one or more bank accounts established by Namibia and acceptable 

to MCC (each, a "Permitted Account') or (b) direct pa),ment to the relevant provider of goods, 

works or services in connection with the implementation of the Program. MCC Funding may be 

expended only to cover Program expenditures as provided in this Compact and the Program 

Implementation Agreement. 

Section 2.5 Interest. Namibia will pay to MCC any interest or other earnings that accrue on 

MCC Funding in accordance with the Program Implementation Agreement (whether by directing 

such payments to a bank account outside Namibia that MCC may from time to time indicate or 

as otherwise directed by MCC). 

Section 2.6 Namibia Resources; Budget. 

(a) In accordance \vith Section 609(b)(2) of the MCA Act, Namibia will make a 

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

contribution in more detail. In addition, Namibia will provide all funds and other resources, and 

will take all actions, that are necessary to carry out Namibia's responsibilities and obligations 

under this Compact. 

(b) Namibia will use its best efforts to ensure that all MCC Funding it receives or is 

projected to receive in each of its fiscal years is fully accounted for in its annual budget on a 

multi-year basis. 

(c) Namibia will not reduce the nonnal and expected resources that it would 

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

this Compact and the Program. 

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(d) Unless Namibia discloses otherwise to MCC in writing, MCC Funding will be in 

addition to the resources that Namibia would otherwise receive or budget for the activities 

contemplated under this Compact and the Program. 

Section 2.7 Limitations on the Use ofMCC Funding. Namibia will ensure that MCC Funding 

will not be used for any purpose that would violate United States law or policy, as specified in 

this Compact or as further notified to Namibia in \\-Titing or by posting on the MCC website at 

w\\-w.mcc.gov (the "MCC Website"), including but not limited to the following purposes: 

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

other quasi-military organization or unit; 

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

substantial displacement of United States production; 

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

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

Guidelines posted on the MCC Website (the "l~ICC Environmental Guidelines"); or 

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

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

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

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

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

of family planning. 

Section 2.8 Taxes. 

(a) Unless the Parties otherwise specifically agree in \\-Titing, and subject to the 

provisions of Sections 2.8(b )(ii) and (iii) and 2.8( c), Namibia will ensure that each of the 

following is free from the payment of any existing or future taxes, duties, levies, contributions or 

other similar charges ("Taxes") of or in Namibia (including any such Taxes imposed by a 

national, regional, local or other governmental or taxing authority of or in Namibia): (i) the 

Program; (ii) MCC Funding; (iii) interest or earnings on MCC Funding; (iv) any Project or 

activity implemented under the Program; (v) MCA-Namibia (as defined in Section 3.2(b)) (vi) 

goods, works, services, technology and other assets and activities under the Program or any 

Project; (vii) persons and entities that provide such goods, works, services, technology and assets 

or perform such activities; and (viii) income, profits and payments with respect thereto. The 

Parties acknowledge and agree that the foregoing includes, infer alia, value added and other 

transfer taxes, profit and income taxes, property and ad valorem taxes, import and export duties 

and taxes (including for goods imported and re-exported for personal use), withholding taxes, 

payroll taxes, and social security and social insurance contributions. 

(b) The GRN and the USG may, at MCC's discretion, enter into one or more 

agreements setting forth the mechanisms for implementing this Section 2.8, including (i) waivers 

of certain filing and compliance requirements relating to Taxes, (ii) an agreement on exceptions 

to Section 2.8(a) above for fees or charges for services that are generally applicable in Namibia, 

reasonable in amount and imposed on a non-discriminatory basis, and (iii) one or more 

mechanisms to implement the provisions of Section 2.8(a) with respect to all or any ofthe Taxes 

that would otherwise be applicable, which may include exemptions from payment of such Taxes 

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that have been granted in accordance \\<ith applicable law, refund or reimbursement of such 

Taxes by the Namibia to MCC or to the taxpayer, or payment by Namibia to MCA-Namibia or 

MCC, for the benefit of the Program, of an agreed amount representing any collectible Taxes on 

the items described in Section 2.8(a). 

(c) The provisions of Section 2.8(a) shall not apply to income Taxes on and 

contributions with respect to individuals who are nationals of Namibia and individuals who are 

ordinarily resident in Namibia, provided that such Taxes and contributions are equitable and are 

generally applicable to all nationals in Namibia. 

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

agreement entered into pursuant to this Section 2.8, Namibia will refund promptly to MCC (or to 

another party as designated by MCC) the amount of such Tax in Namibia Dollars within thirty 

(30) days (or such other period as may be agreed in writing by the Parties) after Namibia is 

notified in \\<riting (whether by MCC or MCA-Namibia) that such Tax has been paid. 

(e) No MCC Funding, proceeds thereof or Program assets may be applied by 

Namibia in satisfaction of its obligations under this Section 2.8. 

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

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

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

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

may result in a violation of Section 606(b) of the MCA Act, MCC, at any time and from time to 

time upon \\<ritten notice to Namibia, may reduce the amount of Program Funding, or withhold 

any Disbursement of Program Funding, to avoid or remedy such a violation. 

ARTICLE 3. 

IMPLEMENTATION 

Section 3.1 Program Implementation Agreement. Namibia will implement the Program in 

accordance with this Compact and as further specified in an agreement entered into between the 

GRN and the USG relating to, among other matters, implementation arrangements, fiscal 

accountability and disbursement and use ofMCC Funding (the "Program Implementation 

Agreement' or "PIA"). 

Section 3.2 Responsibilities. 

(a) Namibia has principal responsibility for overseeing and managing the 

implementation of the Program. 

(b) Namibia hereby designates the National Planning Commission ("NPC'), a 

governmental entity established under the laws of the Republic of Namibia pursuant to the 

National Planning Commission Act, 1994 (the "NPC Act"), as the accountable entity to 

implement the Program and to perform Namibia's rights and responsibilities to oversee, manage 

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

Projects and their activities, allocating resources and managing procurements. The NPC, acting 

in such designated capacity, "vill be referred to herein as ""YCA-Namibia," and has the authority 

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to bind Namibia with regard to all Program activities. The designation ofthis Section 3.2(b) will 

not relieve Namibia of any obligations and rights, for which Namibia retains full responsibility. 

(c) Namibia will ensure that no current law or regulation in Namibia makes unlawful 

or otherwise prevents or hinders the performance of any of Namibia's obligations under this 

Compact, the PIA or any other related agreement or any transaction contemplated hereby or 

thereby. Furthennore, Namibia will use its best efforts to ensure that no future law or regulation 

in Namibia will make unlawful or otherwise prevent or hinder the performance of any of 

Namibia"s obligations under this Compact, the PIA or any other related agreement or any 

transaction contemplated hereby or thereby. 

(d) Namibia will ensure that any assets or services funded in whole or in part (directly 

or indirectly) by MCC Funding will be used solely in furtherance of this Compact and the 

Program unless otherwise agreed by MCC in \\Titing. 

(e) Namibia will take all necessary or appropriate steps to achieve the Program 

Objective and Project Objectives during the Compact Term (as defined in Section 7.4). 

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

regulatory refonn commitments identified in Annex I (if any), Namibia will seek to maintain and 

to improve its level of performance under the policy criteria identified in Section 607 ofthe 

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

Section 3.4 Assurances. Namibia assures MCC that: 

(a) as of the date this Compact is signed by Namibia, the information provided to 

MCC by or on behalf of Namibia in the course of reaching agreement with MCC on this 

Compact is true, correct and complete in all material respects; 

(b) this Compact, upon its ratification by Namibia, does not, and will not, conflict 

with any other obligation of Namibia, any other international agreement or obligation of Namibia 

or any of the laws of Namibia; and 

(c) Namibia will not invoke any of the provisions of its internal law to justify or 

excuse a failure to perform its duties or responsibilities under this Compact. 

Section 3.5 Implementation Letters. To assist Namibia in the implementation of this 

Compact, from time to time, MCC may issue implementation letters that will furnish additional 

guidance about implementation of this Compact, the PIA or other related agreements (each, an 

"Implementation Letter"). The Parties may also issue jointly agreed-upon Implementation 

Letters to confinn and record their mutual understanding on aspects related to the 

implementation of this Compact, the PIA or other related agreements. Such Implementation 

Letters will be applied when implementing the Program. 

Section 3.6 Procurement. Namibia will ensure that the procurement of all goods, works and 

services by Namibia or any Provider (as defined in Section 3.7(c)) to implement the Program 

will be consistent with the MCA-Namibia Program Procurement Rules attached hereto as 

Annex VI (the ".~CA-Namibia Procurement Rules") as provided for in the Program 

Implementation Agreement. The Procurement Rules ",,,ill include, among others, the follo\ving 

requirements: 

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

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

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

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

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

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

timely basis; and 

(d) no more than a commercially reasonable price, as determined, for example, by a 

comparison of price quotations and market prices. will be paid to procure goods, works and 

services. 

Section 3.7 Records~ Accounting: Coyered Providers: Access. 

(a) Namibia Books and Records. Namibia will maintain, and will use its best efforts 

to ensure that all Covered Providers (as defined in Section 3.7(c)) maintain, accounting books, 

records, documents and other evidence relating to the Program adequate to show to MCC's 

satisfaction the use of all MCC Funding ("Compact Records"). In addition, Namibia \\ill furnish 

or cause to be furnished to MCC, upon its request, all such Compact Records. 

(b) Accounting. Namibia will maintain and will use its best efforts to ensure that all 

Covered Providers maintain Compact Records in accordance with generally accepted accounting 

principles prevailing in the United States, or at Namibia's option and with MCC's prior written 

approval, other accounting principles, such as those (i) prescribed by the International 

Accounting Standards Board, or (ii) then prevailing in Namibia. Compact Records must be 

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

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

requirements. 

(c) Providers and Covered Providers. Unless the Parties agree otherwise in writing, a 

"Provider" is (i) any entity of Namibia that receives or uses MCC Funding or any other Program 

asset in carrying out activities in furtherance of this Compact or (ii) any third party that receives 

at least US$50,OOO in the aggregate ofMCC Funding (other than as salary or compensation as an 

employee of an entity of Namibia) during the Compact Term. A "Covered Provider" is (i) a 

non-United States Provider that receives (other than pursuant to a direct contract or agreement 

with MCC) US$300,OOO or more of MCC Funding in any Namibia fiscal year or any other nonUnited States person or entity that receives, directly or indirectly, US$300,OOO or more ofMCC 

Funding from any Provider in such fiscal year, or (ii) any United States Provider that receives 

(other than pursuant to a direct contract or agreement with MCC) US$500,OOO or more ofMCC 

Funding in any Namibia fiscal year or any other United States person or entity that receives, 

directly or indirectly, US$500,OOO or more of MCC Funding from any Provider in such fiscal 

year. 

(d) Access. Upon MCC's request, Namibia, at all reasonable times, will permit, or 

cause to be permitted. authorized representatives of MCC, an authorizedVnited States inspector 

general, the Cnited States Government Accountability Office, any auditor responsible for an 

audit contemplated herein or other\',;ise conducted in furtherance of this Compact. and any agents 

or representatives engaged by MCC or Namibia to conduct any assessment, review or evaluation 

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of the Program. the opportunity to audit, review, evaluate or inspect facilities and activities 

funded in whole or in part by MCC Funding. 

Section 3.8 Audits; Reviews. 

(a) Audits. Except as the Parties may otherwise agree in writing, Namibia will, on at 

least a semi-annual basis, conduct, or cause to be conducted, financial audits of all 

Disbursements of MCC Funding covering the period from signing of this Compact until the 

earlier of the follo\\-ing December 31 or June 30 and covering each six-month period thereafter 

ending December 31 and June 30, through the end of the Compact Term, in accordance with the 

terms of the Program Implementation Agreement. In addition, upon MCC's request, Namibia 

will ensure that such audits are conducted by an independent auditor approved by MCC and 

named on the list of local auditors approved by the Inspector General ofMCC (the "Inspector 

General') or a United States-based certified public accounting firm selected in accordance with 

the "Guidelines for Financial Audits Contracted by MCA" (the "Audit Guidelines") issued and 

revised from time to time by the Inspector General, which are posted on the MCC Website. 

Audits will be performed in accordance with the Audit Guidelines and be subject to quality 

assurance oversight by the Inspector General. Each audit must be completed and the audit report 

delivered to MCC no later than 90 days after the first period to be audited and no later than 90 

days after each June 30 and December 31 thereafter, or such other period as the Parties may 

otherwise agree in writing. 

(b) Audits of United States Entities. Namibia will ensure that agreements between 

Namibia or any Provider, on the one hand, and a United States nonprofit organization, on the 

other hand, that are financed with MCC Funding state that the United States nonprofit 

organization is subject to the applicable audit requirements contained in OMB Circular A-133 

issued by the United States Government Office of Management and Budget ("OMB"). Namibia 

will ensure that agreements between Namibia or any Provider, on the one hand, and a United 

States for-profit Covered Provider, on the other hand, that are financed with MCC Funding state 

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

Government agency, unless Namibia and MCC agree otherwise in writing. 

(c) Corrective Actions. Namibia will use its best efforts to ensure that Covered 

Providers take, where necessary, appropriate and timely corrective actions in response to audits, 

consider whether a Covered Provider's audit necessitates adjustment of Namibia's records, and 

require each such Covered Provider to permit independent auditors to have access to its records 

and financial statements as necessary. 

(d) Audit by MCC. MCC will have the right to arrange for audits of Namibia's use 

ofMCC Funding. 

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

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

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ARTICLE 4. 

COMMUNICATIONS 

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

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

with MCC, in English. For this purpose, the address of each Party is set forth below. 

To MCC: 

Millennium Challenge Corporation 

Attention: (a) before-this Compact enters into force, Vice President, Compact 

Development; and (b) after this Compact enters into force, Vice President, 

Compact Implementation 

(in each case, with a copy to the Vice President and General Counsel) 

875 Fifteenth Street, N.W. 

Washington, DC 20005 

United States of America 

Facsimile: (202) 521-3700 

Telephone: (202) 521-3600 

Email: VPDevelopment@mcc.gov (Vice President, Compact Development) 

VPImplementation@mcc.gov (Vice President, Compact Implementation) 

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

To Namibia: 

The Director General 

National Planning Commission 

Office of the President 

Government Office Park 

Luther Street 

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Block D, Room 206 

Private Bag 12005 

Windhoek 

Republic of Namibia 

Tel: +264 61 283 4222 I 

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with a copy to: 

MCA-Namibia 

Attention: Chief Executive Officer 

c/o National Planning Commission 

Office of the President 

Government Office Park 

Luther Street 

Block D, Room 206 

Private Bag 12005 

Windhoek 

Republic of Namibia 

Tel: +264 61 2834222 

Fax: +26461 250751 

Section 4.2 Representatives. For all purposes of this Compact (including, without limitation, 

signing agreements supplemental to this Compact), Namibia will be represented by the 

individual holding the position of, or acting as, the Director General ofNPC, and MCC will be 

represented by (a) before this Compact enters into force, the individual holding the position of, 

or acting as, Vice President, Compact Development, and (b) after this Compact enters into force, 

the individual holding the position of, or acting as, Vice President, Compact Implementation 

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

Party, may designate one or more additional representatives (each, an "Additional 

Representative") for all purposes other than signing amendments to this Compact. Namibia 

hereby designates the chief executive officer of MCA-Namibia as an Additional Officer. A 

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

equal or higher rank upon wTitten notice to the other Party. 

Section 4.3 Signatures. With respect to all documents other than this Compact or an 

amendment to this Compact, a signature delivered by facsimile or electronic mail will be binding 

on the Party delivering such signature to the same extent as an original signature would be. 

ARTICLE 5. 

TERMINATION; SUSPENSION; REFUNDS 

Section 5.1 Termination; Suspension. 

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

the other Party thirty (30) days' wTitten notice. 

(b) MCC may, immediately, upon wTitten notice to Namibia, suspend or tenninate 

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

determines that any circumstance identified by MCC, in its reasonable discretion, as a basis for 

suspension or tennination has occurred, which circumstances include but are not limited to the 

following: 

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(i) Namibia fails to comply with its obligations under this Compact, the PIA 

or any other agreement or arrangement entered into by Namibia in connection ""ith this Compact 

or the Program; 

(ii) an event or series of events has occurred that MCC determines makes it 

probable that the Program Objective or any of the Project Objectives will not be achieved during 

the Compact Term or that Namibia will not be able to perform its obligations under this 

Compact; 

(iii) a use ofMCC Funding or continued implementation of the Program 

violates or would violate applicable law or United States Government policy, whether now or 

hereafter in effect; 

(iv) Namibia or any other person or entity receiving MCC Funding or using 

assets acquired in whole or in part with MCC Funding is engaged in activities that are contrary to 

the national security interests of the United States; 

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

would render Namibia ineligible to receive United States economic assistance under Part I of the 

Foreign Assistance Act of 1961, as amended (22 U.S.C. 2151 et seq.), by reason of the 

application of any provision of the Foreign Assistance Act of 1961 or any other provision of law; 

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

used to determine the eligibility of Namibia for assistance under the MCA Act; and 

(vii) Namibia or another person or entity receiving MCC Funding or using 

assets acquired in whole or in part \\ith MCC Funding is found to have been convicted of a 

narcotics offense or to have been engaged in drug trafficking. 

(c) All Disbursements will cease upon expiration, suspension, or termination of this 

Compact; prOVided. however, MCC Funding may be used, in compliance with this Compact and 

the PIA, to pay for (i) reasonable expenditures for goods, works or services that are properly 

incurred under or in furtherance of the Program before expiration, suspension or termination of 

this Compact, and (ii) reasonable expenditures (including administrative expenses) properly 

incurred in connection with the winding up ofthe Program within 120 days after the expiration, 

suspension or termination of this Compact, so long as the request for such expenditures is 

submitted within ninety (90) days after such expiration, suspension or termination. 

(d) Subject to Section 5.1 (c), upon the expiration, suspension or termination of this 

Compact, (i) any amounts ofMCC Funding not disbursed by MCC to Namibia will be 

automatically released from any obligation in connection with this Compact, and (ii) any 

amounts ofMCC Funding disbursed by MCC but not expended before the expiration, suspension 

or termination of this Compact, plus accrued interest thereon will be returned to MCC within 

thirty (30) days after Namibia receives MCCs request for such return; provided, however, that if 

this Compact is suspended or terminated in part, MCC may request a refund for only the amount 

ofMCC Funding allocated to the suspended or terminated portion. 

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

Compact if MCC determines that Namibia or other relevant person or entity has committed to 

correct each condition for which MCC Funding \vas suspended or terminated. 

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Section 5.2 Refunds; Violation. 

(a) If any MCC Funding, any interest or earnings thereon, or any asset acquired in 

whole or in part with MCC Funding is used for any purpose in violation ofthe tenns of this 

Compact, then MCC may require Namibia to repay to MCC in United States Dollars the value of 

the misused MCC Funding, interest, earnings, or asset, plus interest within thirty (30) days after 

Namibia's receipt ofMCCs request for repayment. Namibia will not use MCC Funding, 

proceeds thereof or Program assets to make such payment. 

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

the contrary, MCCs right under this Section 5.2 for a refund will continue during the Compact 

Tenn and for a period of (i) five years thereafter or (ii) one year after MCC receives actual 

knowledge of such violation, whichever is later. 

Section 5.3 Survival. Namibia's responsibilities under Sections 2.4,2.6,2.7,3.7,3.8, 5.l(c), 

5. 1 (d), 5.2, 5.3, 5.4 and 6.2 of this Compact will survive the expiration, suspension or 

tennination of this Compact. 

Section 5.4 Post-Tennination Discussions. Following the tennination of this Compact 

pursuant to Section 5.1 (b), at Namibia's request, the Parties will meet at a mutually convenient 

time and location for the purpose of notifying Namibia of the circumstances or reasons for such 

tennination to the extent it has not previously received such notice. Notwithstanding the Parties 

agreement to meet, which will be honored in good faith, any matters discussed will be nonbinding (unless otherwise agreed and recorded by the Parties), v.-ill not give rise to a claim by 

either Party, and MCC will not be obligated to reinstate the Compact following any such 

meeting. 

ARTICLE 6. 

COMP ACT ANNEXES; AMENDMENTS; GOVERNING LAW 

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

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

Section 6.2 Amendments. 

(a) The Parties may amend this Compact only by a written agreement signed by the 

Principal Representatives. 

(b) Without fonnally amending this Compact, the Parties may agree in writing, 

signed by the Principal Representatives, to modify any Annex to this Compact to (i) suspend, 

tenninate or modify any project described in Annex I (each. a "Project" and collectively, the 

"Projects") or to create a new project, (ii) change the designations and allocations of funds 

among the Projects, the Project activities, or any activity under Program administration or 

monitoring and evaluation, or between a Project identified as of the entry into force of this 

Compact and a new project, or (iii) add, delete or waive any condition precedent described in 

Annex IV, or (iv) amend the MCA-Namibia Procurement Rules, provided that any such 

modification (1) is consistent in all material respects \\lith the Program Objective, (2) does not 

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

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

cause the amount of Compact Implementation Funding to exceed the aggregate amount specified 

in Section 2.2(a) ofthis Compact, (4) does not cause Namibia's responsibilities or contribution 

of resources to be less than specified in this Compact, (5) does not extend the Compact Term and 

(6) in the case ofa modification to change the designations or allocations of funds among 

Projects, does not materially adversely affect any activity under Program administration or 

monitoring and evaluation. 

(c) Any modification of any annex to this Compact or to any other provision of this 

Compact pursuant to this Section 6.2 shall be binding on Namibia without the need for further 

ratification by Namibia, any further parliamentary action, or satisfaction of any additional 

domestic requirements of Namibia. 

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

(a) any annex to this Compact and any of Articles 1 through 7, such Articles 1 

through 7 will prevail; or 

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

this Compact will prevail. 

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

governed by the principles of international law. 

Section 6.5 Additional Instruments. Any reference to activities, obligations or rights 

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

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

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

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

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

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

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

Section 6.7 References to Laws. Regulations, Policies and Guidelines. Each reference in this 

Compact, the PIA or any other agreement entered into in connection with this Compact, to a law, 

regulation, policy, guideline or similar document will be construed as a reference to such law, 

regulation, policy, guideline or similar document as it may, from time to time, be amended, 

revised, replaced, or extended and will include any law, regulation, policy, guideline or similar 

document issued under or otherwise applicable or related to such law, regulation, policy, 

guideline or similar document. 

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

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

States Government have no liability under this Compact, the Program Implementation 

Agreement or any supplemental agreement, are immune from any action or proceeding arising 

under or relating to any of the foregoing documents, and Namibia hereby waives and releases all 

claims related to any such liability. In matters arising under or relating to this Compact, the 

Program Implementation Agreement or any supplemental agreement neither MCC nor the 

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United States Government will be subject to the jurisdiction of the courts or any other body of 

Namibia. 

ARTICLE 7. 

ENTRY INTO FORCE 

Section 7.1 Domestic Requirements. Before this Compact enters into force, Namibia will 

take all necessary steps to ensure that immediately upon this Compact entering into force (a) this 

Compact and the PIA and all of the provisions of this Compact and the PIA are valid and binding 

and are in full force and effect in Namibia, (b) this Compact, the PIA and any other agreement 

entered into in connection with this Compact to which Namibia and MCC are parties (if so 

stipulated therein) are international agreements, and (c) no laws of Namibia (other than the 

constitution of Namibia), whether now or hereafter in effect, will take precedence or prevail over 

the terms of this Compact or the PIA. 

Section 7.2 Conditions Precedent to Entry into Force. This Compact will not enter into force 

unless and until each of the follo\\lng conditions have been satisfied: 

(a) the PIA must have been executed by the parties thereto and have become 

effective; 

(b) Namibia must have delivered to MCC: 

(i) a certificate signed and dated by the Principal Representative of Namibia, 

or such other duly authorized representative of Namibia acceptable to MCC, certifying that 

Namibia has satisfied the requirements of Section 7.1; 

(ii) a legal opinion from the Attorney General of Namibia (or other entity 

acceptable to MCC), in form and substance satisfactory to MCC; and 

(iii) a certified copy of the Instrument of Ratification evidencing the 

ratification of this Compact by Namibia, which MCC may post on its website or otherwise make 

publicly available; and 

(c) MCC must determine that after signature of this Compact, Namibia has not 

engaged in any action or omission that is inconsistent with the eligibility criteria for MCC 

Funding. 

Section 7.3 Date of Entrv into Force. This Compact will enter into force on the later of (a) the 

date of the last letter in an exchange of letters between the Principal Representatives confirming 

that each Party has completed its domestic requirements for entry into force of this Compact and 

(b) the date that all conditions set forth in Section 7.2 have been satisfied. 

Section 7.4 Compact Term. This Compact will remain in force for five years after its entry 

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

Section 7.5 Provisional Application. Upon signature of this Compact and ratification by 

Namibia of this Compact and until it has entered into force in accordance \vith Section 7.3, the 

Parties will provisionally apply the terms of this Compact,provided that no MCC Funding, other 

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than Compact Implementation Funding, will be made available or disbursed before this Compact 

enters into force. 

SIGNATlJRE PAGE FOLLOWS ON THE NEXT PAGE 

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IN WITNESS WHEREOF, the undersigned, duly authorized, have signed this Compact 

this 28th day of July, 2008. 

Done at Windhoek, Namibia 

FOR MILLENNIUM CHALLENGE 

CORPORATION, ON BEHALF OF THE 

UNITED STATES OF AMERICA 

FOR THE REPUBLIC OF NAMIBIA 

Name: Professor Peter H. Katjavivi 

Title: Director-General, National Planning 

Commission 

SIGNATURE PAGE TO MILLENNIUM CHALLENGE COMPACT 

BETWEEl'Ii THE U:"IITED STATES OF AMERICA 

ACTI:"IG THROUGH THE MILLEN:"IIUM CHALLE:"IGE CORPOR\ nON 

Al'IiD THE REPllBLIC OF NAMIBIA 

--_... - ~ .. _o.-~ _ ... _ "'_._ >'...__ __ ._. ____ ,,_ .•. _._"_._ .. _M _______ ,_ ••• 
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ANNEX I 

PROGRAM DESCRIPTION 

A. PROGRAM OVERVIEW 

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

Compact Term. 

1. Background and Consultative Process. 

(a) Background. 

Namibia, a large and sparsely populated country on Africa's southwest coast, has a population of 

approximately 2.1 million. It gained independence in 1990 after a century of foreign 

domination, including a period of half a century of apartheid. \Vhile the country has experienced 

steady economic gro\\th since achieving independence\ as a consequence of its history, 

approximately 27 percene of its population lives in poverty (particularly in the northern 

communal areas or "NCAs"), and in 2006 its per capita income was just US$3,000. 3 

Additionally, the distribution of wealth and income within the country is highly unequal 4 • 

Unemployment is high (approximately 30 percent in 2006) and the HIV prevalence rate is more 

than 19 percene. Despite facing such seemingly daunting obstacles to improving its social and 

economic conditions, Namibia is committed to providing equal opportunity to previously 

disadvantaged populations, while maintaining political and economic stability. 

The Compact Goal is to reduce poverty through economic gro\\th in Namibia. One of the ways 

to achieve such poverty reduction in Namibia is to create a skilled and educated labor force. 

Another way is to expand and diversify the economy's export base, which is currently narrowly 

focused on mineral commodities, by supporting sectors such as livestock, indigenous natural 

products and tourism. The Program will focus on improving the quality of education and 

training for underserved populations, and attempt to capitalize on Namibia's comparative 

advantages, namely large areas of semi-arid communal land suitable for livestock grazing, 

natural products indigenous to Namibia, and diverse wildlife and unique landscapes ideal for 

ecotourism. This approach is expected to have the greatest impact on alleviating poverty. 

I According to the World Bank's "International Bank for Reconstruction and Development Interim Strategy Note: 

An Engagement Framework for the Republic of Namibia for FY 08-09," April 25, 2007, Namibia has 

experienced an average of 4.3 percent economic gro~th per annum. 

2 Ibid. 

3 Ibid. 

4 According to International Monetary Fund report ("Namibia: 2007 Article IV Consultation - Staff Report; Public 

Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Namibia," 

February 2008), Namibia has the second highest Gini coefficient in the world at 0.64. 

5 http://www.uniceforg/infobycountry/namibia_statistics.html 
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(b) Consultative Process. 

In connection with its proposal for this Compact, Namibia undertook an extensive consultative 

process. Namibia held consultations in all 13 regions of the country and began national level 

consultations in mid-2006, which have been on-going particularly in those sectors that the 

Program will support. Participating stakeholders included government officials at central and 

regional levels. local authority councilors and stakeholders, regional coordination committees, 

regional AIDS committees, regional emergency units, communal land boards ("CLBs"), farmers' 

associations, conservancy groups, women's associations, church groups, youth groups, 

\ulnerable members of society, non-governmental organizations (NGOs), community based 

organizations, and the private sector. 

Worthy of note is the fact that the consultative process did not reveal a major divergence 

between the issues identified at national and regional levels. This appears to confirm that, in 

general, there is consensus within Namibia on priorities for economic gro\\-th. This consensus 

was built on previous consultative processes for Vision 2030,6 the 5-year National Development 

Plans, Participatory Poverty Assessments and other sector-level consultations. MCA-Namibia, 

in close consultation and cooperation with the stakeholders for each of the Program's 

components, will continue to consult and inform Namibians country-wide on this Compact to 

ensure broad-based understanding, appreciation, commitment, and ownership of the proposed 

investments. 

2. Description of Program and Beneficiaries.' 

The Program, whose objective is to increase the knowledge, skills and competence of the 

Namibian workforce, and to increase the productivity of agricultural and non-agricultural 

enterprises in communal areas, consists of three Projects: the Education Project, the Tourism 

Project and the Agriculture Project. Each Project (the details of which are set forth below) is 

designed to help address Namibia's constraints to economic growth and lead to sustainable 

poverty reduction. Specifically, the Education Project aims to increase skilled labor by helping 

to create a more efficient and effective educational system that will benefit approximately 

1,000,000 young people, and ultimately increase employment opportunities. The Tourism 

Project will stimulate investment and income generation in poor, rural communities through 

increasing the income for an estimated 23,000 tourism-related employees and benefitting over 

100,000 individuals living in conservancies. Lastly, the Agriculture Project will improve 

productivity in the livestock and INP sectors, and contribute to enhanced household incomes for 

over 400,000 Namibians. 

Specific anticipated results of the Program over a twenty year period include: 

(a) a higher quality of education for approximately one million primary and 

secondary school learners across Namibia from an improved delivery system for textbooks; 

6 Launched by H.E. President Sam Nujoma, in June 2004, Vision 2030 is the Government's long-term national 

strategy for development ending in the year 2030. 

7 Figures in this section refer to MCC's economic and beneficiary analysis for a period of 20 years and refer to direct 

and indirect beneficiaries. 

A~NEX 1-2 
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(b) access to financing for tertiary education for at least 60 percent of all qualifying 

applicants demonstrating financial need; 

(c) training of up to 49,000 low-income individuals who are either unemployed and 

lor unskilled at the Community Skills and Development Centers ("'COSDECs"); 

(d) training in the tourism sector for more than 2,600 additional trainees and training 

in other high-priority vocational areas (to be further indentified) for additional students under an 

improved capacity for market-relevant training in the competitive grants program; 

(e) a higher quality of education for approximately 41,700 students, primarily in 

rural communities, and which is expected to result in higher lifetime income for these students 

due to the proposed investments in the targeted primary and secondary schools: 

(t) an increase in tourism by an estimated 4,000 additional overseas tourists per year 

as a result of marketing activities, resulting in an incremental present added value by these 

tourists of approximately US$7 million; 

(g) increased employment income for over 7,000 individuals due to enhanced 

investment in conservancies; 

(h) increased tourism visits and value added to the Namibian economy resulting from 

investments in Etosha National Park; 

(i) either increased employment, wages or household income for an estimated 23,000 

people as a result of the Tourism Project; 

(j) improved market efficiency, improved land tenure security, and more equitable 

access to land benefitting over 130,000 individuals; 

(k) increased income to approximately 1,800 farmers across 50 communities due to 

the rangeland management component; and 

(1) increased incomes for over 15,000 households as a result of the Indigenous 

Natural Products ("IN?') component of the Agriculture Project. 

3. Environmental and Social Accountability. 

All of the Projects will be implemented in compliance with the MCC Environmental Guidelines, 

MCC's guidance on the integration of gender in Program implementation delivered by MCC to 

Namibia or posted on the MCC Website (the "MCC Gender Policy") and the World Bank's 

Operational Policy on Involuntary Resettlement in effect as of July 2007 C-'OP 4.12'"). Namibia 

will also ensure that the Projects comply with all national environmental laws and regulations, 

licenses and permits, except to the extent such compliance would be inconsistent with this 

Compact. Namibia will: (a) undertake and complete any strategic environmental (and social) 

assessments ("SEA"), environmental impact assessments ("EIA"), environmental assessments 

("EA"), environmental management plans ("EMP") and resettlement action plans ("RAP"), in 

fonn and substance satisfactory to MCC, and as required under the lav.;s of Namibia, the MCC 

Enyironmental Guidelines, this Compact, the Program Implementation Agreement or other 

supplement agreement or as otherwise required by MCC; (b) implement to ~fCC's satisfaction 

ANl'<EX 1-3 
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environmental and social mitigation measures identified in such assessments or plans; and (C) 

commit to fund environmental mitigation, (including costs of resettlement) in excess ofMCC 

Funding not specifically provided for in the budget for any Project. 

DESCRIPTION OF PROJECTS 

Set forth below is a description of each of the Projects that Namibia will implement, or cause to 

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

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

sub-activities, are also described. 

B. EDUCATION PROJECT 

1. Summary of Project and Activities. 

MCC Funding will be used to improve the effectiveness, efficiency and quality of Namibia's 

education sector through systemic reforms and critical near-term interventions that are consistent 

with the objectives of Namibia's ETSIP Program (the "Education Project"). ETSIP is 

Namibia's I5-year sector-wide Education and Training Sector Improvement Program, whose 

mission is to create a knowledge-based economy through increasing the effectiveness, efficiency 

and quality ofNanlibia's education and training system. Specifically, MCC Funding will 

support key gaps within ETSIP, as well as fund complementary measures, such as institutional 

strengthening, policy reform and targeted technical assistance to ensure sustainable results. 

The Activities that will be undertaken in furtherance of the Education Project are: 

(a) Improving the Quality of Education (the "Education Quality Activity"): This 

Activity involves the rehabilitation and renovation of infrastructure (including teacher housing) 

and equipment in approximately 47 primary and secondary schools, and the funding of training 

programs for school administrators and teachers. Additionally, this Activity includes funding for 

policy-relevant studies and improvements in science and computer training facilities at teacher 

training colleges. To reinforce Activity outcomes, Namibia will implement teacher education 

reform guidelines. 

(b) Improving Vocational and Skills Training (the "Vocational and Skills Training 

Activity"): With MCC Funding, the Vocational and Skills Training Activity \\ill assist with the 

establishment of a National Training Fund ("NTF') within the Namibia Training Authority 

("NTA"). MCC Funding will be used for the provision of technical assistance for the NTF and 

the creation of a training levy system that will sustain the NTF in the future. MCC Funding will 

also support priority vocational and skills training areas (including but not limited to tourism) 

selected under criteria developed by the NT A, which criteria will be employed through a 

competitive grants program to be implemented under this Activity. Namibia and MCA-Namibia 

commit to achieving satisfactory progress during the implementation ofMCC supported training 

toward the effective operation of the NTF, which will include: possessing a proper governance 

structure (including the appointment of the NT A Board and the standing councils and 

committees), the adoption of selection criteria for the award of grants, the creation and 

implementation of the final sustainable levy structure, and the deployment ofNTF funding so 

that public entities will not be privileged to the detriment of funding for private entities engaged 

in training. Finally, the NTF will operate on a sustainable basis and provide funding on a needs 

basis. MCC Funding will also be utilized (a) for the construction or renovation of approximately 

Al'i'NEX 1-4 

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nine COSDECs, and (b) to support efforts so that the private-training industry responds to the 

training demands of Namibia's market economy. 

(c) Improving Access to and Management of Textbooks (the "Textbook Activity"): 

This Activity will focus on expanding access to and improving the distribution and management 

of textbooks within primary and secondary schools through operational support and reforms in 

the textbook acquisition process designed to make the process more transparent and competitive. 

This Activity will include funding for the acquisition of science, math and English textbooks for 

grades 5 - 12 on a national level and improving classroom use of textbooks. These acquisitions 

will be conducted in two phases. The first phase will fill actual gaps as determined by a textbook 

baseline study. The second phase will support a pilot procurement program aimed at improving 

textbook acquisition once MCC is satisfied that the supporting documentation (implementation 

plan for the 2008 Textbook Policy) is complied with such that there is a greater transparency and 

accountability in the acquisition, distribution and storage of textbooks. A system for monitoring 

textbook supply and demand will also be implemented. 

(d) Investing in Regional Study and Resource Centers (the "RSRC Activity"): This 

Activity will fund the construction of approximately three regional study and resource centers 

("RSRCs") in underserved areas that will improve community access to documentation, 

information resources, training materials and programs, as well as study facilities. Additionally, 

technical assistance and training will be provided for RSRC staff. Namibia will ensure that the 

MCC constructed RSRCs will offer expanded hours of operation with both day and evening 

hours as provided for by the 1997 "Information for Self-Reliance and Development: A Policy 

Framework for Libraries and Allied Information Agencies for Namibia." These extra hours will 

meet the needs of both students and individuals that work during the day. 

(e) Expanding and Improving Access to, Equity, and Sustainability of Tertiary 

Education Finance (the "Tertiary Education Finance Activity"): This Activity'S focus is 

expanding access to tertiary finance. This will be achieved by providing technical assistance to 

the Ministry of Education ("1~loE') to support its efforts to establish a sustainable and widely 

accessible tertiary and technical education finance system, including, inter alia, improved loan 

and recovery rates and targeting of financing subsidies to those in need. 

(f) Cross-Project Support: To further support the Activities of this Project, MCC 

Funding will also be used to strengthen the HIV I AIDS program within the MoE HIV I AIDS 

Management Unit, including development of HI VIA IDS awareness and prevention plans related 

to construction activities. 

2. Beneficiaries8

• 

Beneficiaries of the Education Quality Activity are primarily students of the target schools, 

where 47 percent of beneficiary students are estimated to live in households with consumption of 

less than US$2 per day per person. The target schools currently enroll approximately 18,400 

students. Over the course of20 years, the schools will educate an estimated 41.700 primary and 

8 Figures in this section are based on MCC's economic and beneficiary analysis and are over a 20-year period. 

A1\NEX 1-5 

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secondary students. In addition, roughly a third of the teachers at the 47 schools receiving 

teacher housing will realize a marked improvement in living conditions. Overall, males and 

females will be exposed to the new schools in equal proportion. Namibia has generally achieved 

gender parity within its school system, although there are some differences between regions and 

some school phases. 

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1 Based on MCA-N forecasts, the RSRCs would serve at least 8,000 individuals a year (about 10 

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percent of population of the to\\TIS where the centers are located). There are over 120,000 

-learners within regional reach of the centers who could benefit from the mobile services provided 

from the centers and from visits to the centers. These centers will be located in the principal 

to\\<TIS of relatively poor and under-served regions. 

Beneficiaries of the COSDECs tend to be unskilled and/or unemployed individuals, and program 

benefits are projected to benefit up to 2,800 COSDEC trainees per year (or 49,000 over 20 

years). 

The Textbook Activity will benefit the poorer segments of the student population. The current 

need for textbooks is relatively higher at schools in poor communities, since wealthier 

communities tend to have better-financed and resourced schools. 

The Tertiary Education Finance Activity will help Namibia to achieve a reduction in defaults and 

an increase in the number of qualified but disadvantaged individuals accessing loans and 

obtaining tertiary education. The assistance will enable better targeting of public funds to the 

most disadvantaged students, rather than those with the ability to pay. Better cost recovery will 

also allow reduced direct public spending on tertiary education loans. 

3. Sustain ability . 

In acknowledgement of the financial commitment required to address essential maintenance 

needs of general schools, the MoE has embarked on a major program of periodic maintenance 

and renovations for these schools. A 2005 MoE policy directive has stipulated that 25 percent of 

its development budget is set aside each year for maintenance (instead of spending that portion 

on new construction), which is significantly above the Ministry of Works recommended 

allocation of 5 percent. Further, through ETSIP funds, MoE has committed to allocating a set 

percentage towards school hostel maintenance. 

At the local level, the MoE has also initiated a pilot program of funding individual '"School 

Development Funds" on a revolving basis, which currently reaches an estimated 150 schools (or 

nearly 10 percent of the school network). This program involves delegation of authority to 

schools to undertake minor repairs, as a means of removing responsibility for such activities 

from the Regional Education and Ministry of Works' offices. To support effective use of the 

School Development Funds, the MoE has begun to require that each school prepare and submit 

three-year rolling maintenance plans. 

Additionally, in light of the increasing expenditures for utilities at the school-level, the MoE has 

begun to further involve school principals in the flow of information regarding costs and billing, 

and has also introduced pilot programs in which schools are assuming greater responsibility for 

certain recurring expenses. 

AI\~EX 1-6 

. - -

_._"N _ ."~"'«"""_."'<_~ .. _~.* __ 
,.-~-----,- - ----- -----.-.---..... --."-~--.. -.--,-~------.. . - ~--- -~---,---- -------.-- -.~--.. ~----.------.-----------------.. -.-.. ----.. --~---.. - -' -~-.---. -.. __ .. __ ._-- -_ .. _.- - ------- ------- ----"---_.-

In establishing ETSIP, Namibia has demonstrated a commitment to undertaking substantial 

policy and institutional changes to catalyze key improvements in the quality of Namibian 

education. Specifically, Namibia has supported the efforts of the MoE to develop and implement 

new policies, procedures, and guidelines affecting the delivery of pre-primary to secondary 

education. Prominent institutional changes that are being enacted by MoE are presented below. 

In addition, to provide further support to the MoE in their long-term reform efforts, the MCC 

,,,"ill fund targeted training and technical assistance with key institutional changes and policy 

implementation processes. 

4. Environmental and Social Mitigation Measures. 

The Education Project is categorized under MCC's Environmental Guidelines as a Category B 

Project due to the environmental and social impacts that \\111 result from certain activities9

• EAs 

and EMPs will be developed to assess the environmental and social impacts of the construction 

activities \\ithin the Education Quality, Vocational and Skills Training, and RSRCs Activities. 

Any resettlement impacts resulting from the Education Project will be identified and documented 

in compliance with OP 4.12. 

The Education Quality Activity will include the implementation of a general hygiene program at 

schools, which will be implemented by MoE. Furthermore, under the Education Quality 

Activity, disability access will be provided at the 47 general schools, which will reinforce the 

existing MoE requirement for disability access in all new school buildings. The Education 

Quality Activity will also benefit \'ulnerable groups in Namibia, such as the San people. 

The MoE HIV I AIDS Management Unit ("HAMU') will receive targeted management 

strengthening support, which will include activities intended to mainstream HIV I AIDS education 

and training across all MoE directorates, associated institutions, and planning activities. The 

technical advisor working with HAMU will also deVelop and implement HIV I AIDS awareness 

and prevention plans for school populations and communities where each educational facility is 

located for the Education Quality, Vocational and Skills Training, and RSRCs Activities. 

5. Donor Coordination. 

The first phase for the implementation ofETSIP (2006-2013) has been programmed in detail. 

Through ETSIP, Namibia coordinates donors to participate in a sector-wide program mainly 

through budget support and extra-budgetary support, and the Activities of the Education Project 

are drawn from this program. Namibia"s pledged contribution to this plan includes US$162 

million over 2006-2020, or approximately US$13 million annually. 

The Education Project will focus on certain aspects within ETSIP in order to complement the 

implementation of the overall sector program, and MCC has coordinated closely with the lead 

development partners in this effort, namely the World Bank and EU. With respect to other 

ETSIP development partners (who fund major projects rather than provide general budget 

support), MCC has discussed project activities with USAID, PEPF AR, Finland, Sweden, 

9 No environmental or social assessment or management planning is required under MCC's Environmental 

Guidelines for the Textbook Activity or the Tertiary Education Finance Activity. 

A~~EX 1-7 
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Norway, KfW of Germany, and Lu.xembourg. For the NTF, MCC is cooperating specifically 

with the Luxembourg Development Agency. 

6. USAID. 

As a member ofETSIP, MCC and MCA-Namibia have had ongoing discussions with USAID in 

the development of this Compact. 

7. Policy, Legal and Regulatory Reforms. 

As noted above, Namibia's establishment of a tifteen-year national reform program for the 

education sector demonstrates a commitment to undertake substantial policy and institutional 

changes to catalyze key improvements in the quality of Namibian education and skills 

development. Specifically, Namibia has supported the efforts of the MoE to develop and 

implement new policies, procedures, and guidelines affecting the delivery of primary to 

secondary education. In addition, to provide further support to the MoE in their long-term 

reform efforts, MCC Funding will support targeted training and technical assistance with key 

institutional changes and policy implementation processes. 

With respect to sector-specitic policy reform commitments, Namibia has made several notable 

advancements in education, encompassing: 

• Enactment of the National Training Fund within the NTA under the Vocational 

Education and Training C'VET") Act of 2008; 

• Establishing and staffmg the NT A as provided for in the VET Act; 

• Approval of a new National Textbook Policy and implementation plan for primary and 

secondary schools (2008); and 

• Adoption of policies concerning the Colleges of Education to allow for their semiautonomy and introduction of performance-based contracts. 

In addition, Namibia will implement reforms at the teacher training colleges aimed at: (a) 

improving and adapting curriculum; (b) setting fees and charges; (c) establishing policies and 

procedures to raise outside funds; (d) setting admissions standards; (e) improving screening of 

teacher applicants; and (f) improving management and maintenance of facilities. 

C. TOURISM PROJECT 

1. Summary of Project and Activities. 

Consistent with Namibia's national development strategies and in support of reform efforts 

already underway, MCC Funding ".-ill support three priority Activities in the tourism sector (the 

"Tourism Projecr): (a) improve the management and infrastructure of Etosha National Park 

("EN?'); (b) enhance the marketing of Namibian tourism; and, (c) develop the capacity of 

communal conservancies to attract investments in ecotourism and capture a greater share of the 

revenue generated by tourism in Namibia. Together. these Activities will generate income and 

create employment opportunities for some of the poorest populations in Namibia, while 

conserving the natural resources that serve as the foundation for the tourism industry. 

AN1\EX l- 8 
.. --~--------~--~.- ---- .. __ .... ---._ .. -~-- '"_._-------._.--_._---------_._----_.-... ---~ .. _-----_. __ ._-----------_ .. _-- .. ----_ ... _------_._---- --.---~-----..-.-------- -------_ .. _---•.. -. _." --------_._--. 

The Activities that will be undertaken in furtherance ofthe Tourism Project are: 

(a) Improved Management and Infrastructure of Etosha National Park (the "ENP 

Activity'"): This Activity aims to improve the management capacity of ENP, promote private 

sector investment in and around Namibia's national parks, increase tourism revenue nationally, 

and benefit rural communal conservancies. Achieving these goals requires improving'budget 

control and management of the park and increasing private sector investment in joint-venture 

lodges around ENP and joint-venture lodges and services within and near other national parks. 

among other things (collectively, the "Performance Targets"). MCC Funding will support 

technical assistance in support of improved management and a study of tourism carrying 

capacity and potential tourism investments in and around ENP and other national parks in the 

north, as well as investments in infrastructure for management centers and staff housing, road 

building and maintenance and the purchase of game translocation equipment. 

(b) Marketing Namibian Tourism (the "Marketing Activity'"): The Marketing 

Activity's aim is to increase tourist arrivals to Namibia by expanding marketing to North 

American tourists, developing and marketing local and regional tourism route packages, and 

developing a fully interactive website. The development and marketing of local and regional 

tourism route packages will focus on conservancy sites with the explicit aim of directing 

anticipated increases in tourism visitors to communal areas. MCC Funding will provide 

financing to support these goals. 

(c) Ecotourism Development in Conservancies (the "Conservancy Support 

Activity"): MCC Funding under this Activity will assist Namibia in building conservancy 

capacity to protect its natural resources, attract investment, and achieve financial sustainability so 

that households in communal conservancy areas (or conservancies) can receive a greater share of 

revenues. Based on individual conservancy needs and demands, the Activity will provide a 

range of technical assistance services and grant funding to approximately 31 high-tourism 

potential conservancies. Such assistance and funding will help to mitigate existing barriers to 

tourism enterprise investment and help render the conservancies financially self-sustainable. In 

addition, grant funding to promote joint-venture tourism enterprises between conservancies and 

the private sector will be provided to a subset of approximately 15 of the 31 conservancies. 

2. Beneficiaries. 

The main benefits of the Tourism Project accrue through increased tourism visits and value 

added to the Namibian economy. It is estimated that the Marketing Activity will result in an 

additional 4,000 tourists per year on average, which translates into an incremental (present) value 

added by overseas tourists of approximately US$7 million (MCC calculations based on data 

provided by National Tourism Board and 2004 parks valuation study by Turpie et al. 2004). 

The distribution of benefits will track the general distribution of income in Namibia, meaning 

approximately 23 percent of benefits will accrue to the poor (source: MET July 2006). Primary 

benefit streams of this Project include increased employment income, conservancy income (to be 

reinvested or distributed to members), profits to joint venture partners, and increased wildlife 

populations. There are 118,000 residents within the approximate 31 conservancies targeted for 

support. A projected 7,000 individuals are to enjoy significantly higher income as a result of full 

and part time employment generated through this Project (MCC projection based upon 2007 

A~1\EX 1-9 .- _._-_._--- ----_ .. _--- .. -" 

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conservancy data). The other 111,000 conservancy residents are expected to receive benefits 

through small dividends or community-sponsored projects. 

3. Sustainability. 

In 2007 Etosha National Park earned revenues of approximately US$3 million, mostly generated 

through daily usage fees collected at entry gates. This revenue goes directly to the Ministry of 

Finance ("-,WoF') which then allocates approximately US$2.25 million back to the park to cover 

operating costs. MoF retains about US$ 1 00,000 with the remaining US$650,000 going into a 

collective Game Products Trust Fund available to the national parks network. ENP is currently 

allocating a disproportionately high percentage of its total operating budget to staff and transport 

costs. The Tourism Project will assist ENP in achieving a more balanced budget through gro\\-1h 

in park visitors, an increase in park usage fees, and concessions awarded to the private sector. In 

addition, delegating more authority to ENP to manage its O\\-TI budget should increase revenue 

and productivity. Further, use ofMCC Funding for the ENP Activity will be contingent upon 

meeting the applicable performance targets which include the development of an integrated 

master plan for maintenance of all infrastructure and equipment within ENP and demonstration 

of sufficient budget to implement the plan. 

The NTB receives an annual budget allocation of approximately US$3.5 million and an 

additional US$I.5 million in revenue collected through a 2 percent bed night levy charged for all 

overnight stays in hotels or lodges. The Tourism Project, \vhich is expected to increase tourist 

arrivals through enhanced tourism marketing, will likely result in an increase of revenue to NTB 

as bed night levies increase. 

Financial sustainability of conservancies is a primary objective ofthis Project as it \\-ill aim to 

develop the capacity of conservancies to attract private sector investment and receive a greater 

share of the tourism generated revenues. In 2007, benefits amounted to more than US$1.68 

million in gross revenues and US$1.26 million in wage income, 66 percent of which were 

directly derived from tourism enterprises and represent a substantial increase in the period since 

1994. 

4. Environmental and Social Mitigation Measures. 

The Tourism Project is categorized under MCC's Environmental Guidelines as a Category A 

project due to potential site-specific environmental and social impacts in sensitive areas 

anticipated from the construction of management centers in fragile ecosystems and in an area 

that is the traditional homeland to vulnerable ethnic groups. Tourism activities supported by the 

independent fund established under the Conservancy Support Activity will be classified as a 

Category D Activity under MCC's Environmental Guidelines. 

To ensure the environmental sustainability of the Tourism Project and mitigate any 

environmental and social impacts, an (EIA) and site-specific EMP will be developed for the 

construction and rehabilitation of management centers in ENP. EMPs will include actions to 

limit or mitigate impacts of construction on fragile ecosystems within ENP, ensure proper waste 

management and prevent the spread of invasive species. HIV / AIDS awareness and prevention 

programs for ENP staff and construction contractors will also be developed and implemented. 

Any resettlement impacts resulting from the Tourism Project will be identified and documented 

in compliance with OP 4.12. MET will provide alternative housing for the indigenous San 

A~l\EX I -10 
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peoples at Government-funded official park employee housing sites or on lands transferred to the 

San prior to any eviction and/or demolition of their existing housing at Okakuejo. 

Transportation to the primary school at Ombika will be provided for the children of ENP staff 

living at Okakuejo. 

MCC Funding that supports grants to conservancies will comply with MCC's Environmental 

Guidelines. Additionally, signed contracts between cornmunal conservancies and investors will 

include benefits sharing and employment guarantees. Periodic and random audits of the 

performance of a subset of grant funding recipients will be conducted to ensure compliance with 

both MCC Environmental Guidelines and Namibian environmental requirements. Furthermore, 

targeted training to ensure that women and vulnerable groups have access to revenue-generating 

opportunities will be included as part ofthe overall Conservancy Support Activity. 

Disbursement of grant funds for wildlife relocation or joint venture activities on conservancy or 

national park lands and all activities supported by these funds shall comply with MCC's 

Environmental Guidelines, whose terms shall also be included in any manual produced for the 

distribution of such grant funds. 

5. Donor Coordination. 

Multiple donors, most notably KfW, GTZ and UNDP have provided technical assistance and 

funding for the infrastructure and capacity building needs of the national parks. UNDP through 

its "Strengthening the Protected Areas Network" ("SPAN') Project, aims to improve 

management effectiveness of Namibia's national system of protected areas and includes the 

development of the new Concession Policy (approved by Namibia in 2007), support to make this 

policy operational and support for fmancial transformation of park management. These activities 

will complement efforts to support and accelerate management reform ofENP. MCC's technical 

assessment of the staff housing centers was based on concept designs funded by UNDP. MCANamibia will coordinate efforts with UNDP's SPAN Project and will work with MET to 

implement the ENP Activity. 

MUltiple donors over the past ten years have provided technical assistance to conservancies in 

building governance, sustainable natural resource management, and tourism potential of existing 

and newly-formed conservancies. The most important donor assistance has come from USAID 

(through the recently completed LIFE-PLUS Project); the World Wildlife Fund for Nature; the 

Swedish International Development Agency (SIDA); Department for International Development 

(DFID); Danish International Development Agency (DANIDA); and the World Bank (through 

the Integrated Community-Based Ecosystem Management (ICEMA) Project). The Conservancy 

Support Activity \\ill build on this previous work and benefit from the capacity and experience 

that has been developed. This Activity \\i11 also support joint ventures on conservancies 

complementing current efforts by the ICEMA Project. 

6. USAID. 

USAID has been a key donor in community-based natural resources management programs in 

Namibia. This Compact will build on the USAID-funded LIFE PLUS project which includes a 

focus on conservancy support. 

ANNEX 1-11 

--- ,_ .. ,,. ~~. ,"U ~,'~,._". ~_ ..... " .~. • •. ~ ~_~_._ <~ __ .. _._ • ,,-.~~, • _.. .~~,._ 
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7. Policy, Legal and Regulatory Reforms. 

The Tourism Project aims to support and accelerate MET reforms in the management of 

Namibia's national park system. A portion ofMCC Funding to support the ENP Activity will be 

contingent on meeting the applicable performance targets, which focus on management reforms 

ofENP in order to improve management. The Tourism Project will also provide technical 

assistance to support MET's efforts to meet these performance targets. 

Namibia recently passed legislation to increase the bed night levy to 2 percent, which creates a 

sustainable mechanism for continued funding to NTB, especially as tourist arrivals grow. As 

tourism in Namibia grows, the returns from investments by the private sector will also grow and 

allow the private sector to playa greater role in marketing Namibian tourism products. 

To facilitate implementation of the Conservancy Support Activity, Namibia will expedite the 

consideration and approval of leasehold applications submitted by conservancies under this 

Activity. 

With respect to sector-specific policy reform commitments, Namibia has made several recent 

notable advancements in tourism, encompassing: 

• Adoption of the Ministry of Environment and Tourism's Strategic Plan that establishes 

objectives and targets for the tourism sector in Namibia; 

• Adoption of Etosha National Park Management Plan and Business Plan that establishes 

objectives and targets for ENP; 

• Passage of the Environmental Management Bill into law establishing mandatory 

environmental review and mitigation procedures in Namibia (2007); and 

• Policy on Tourism and Wildlife Concessions on State Land (2007). 

D. AGRICULTURE PROJECT 

1. Summary of Project and Activities. 

!' MCC Funding will support investments aimed at achieving a sustainable increase in the 

economic performance of the agricultural sector (the "Agriculture Projecf'). Included in this 

Project are Activities that strengthen the land tenure system in the NCAs, introduce improved 

rangeland management practices, and strengthen animal health services, regulatory capacity, and 

livestock marketing efficiencies, all of which are expected to increase productivity and 

profitability of livestock production and sale. In addition, the Project will increase the volume, 

quality and value-added ofINPs for export to regional and international markets. 

The Activities to be undertaken in furtherance of the Agriculture Project are: 

(a) Land Access and Management ("Land Access and Management Activity"): This 

Activity includes two sub-activities, one which focuses on improving the communal land regime 

(the "Communal Land Support Activity") and the second which focuses on introducing effective 

community-based rangeland management practices (the "CBLRM Activity"). 

AN;\EX 1- 12 

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_r_"' .. ' _____ ~w, _____ ,,· ___________ , ____ .~_~~. ____ • _____ ,

-.--- --"--.~----.---.------.-.--- --.--~--~-.-.---------."'----.---.-... -~-.---~-.-------"----.--------- .. --.------".--.--.-~-----.-----.... -- ----...... -----.------ -- i 

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Under the Communal Land Support Activity, MCC will fund: a comprehensive public awareness 

and outreach campaign to educate the public regarding their land rights; the streamlining of 

administrative procedures; a systematic verification and registration process that will result in the 

formalization ofland rights in the NCAs; and capacity building for Communal Land Boards and 

other land administration institutions. 

The CBLRM Activity aims to improve livestock quality and value by supporting training in 

community-based management of rangeland resources, herd management, and business 

management skills, including specific outreach to women in small ruminant production and 

marketing, among participating communities. In addition, these communities \\ill be eligible to 

receive limited rangeland management infrastructure (e.g. water points, kraals) to support 

community rangeland management plans. . 

(b) Livestock Support (the '"Livestock Support Activity"): This Activity involves: (i) 

construction of approximately five veterinary centers in the NCA and underserved areas, and 

rehabilitation of two quarantine camps in the Caprivi region; (ii) implementation of a traceability 

system to better meet the food safety requirements in local and external markets; and (iii) 

establishment of a fund to invest in post-fanngate improvements fostering greater efficiencies in 

livestock marketing, transport, and quarantine (the "Livestock Market Efficiency Fund"). The 

Livestock Market Efficiency Fund will also focus on diversifying market opportunities, 

including sanitary regulatory capacity building in the NCA. An operations manual will be 

developed by MCA-Namibia, and approved by MCC, which defines procedures, eligibility and 

selection criteria for the Livestock Market Efficiency Fund. 

(c) Indigenous Natural Products (the "INP Activity"): The INP Activity'S goal is to 

increase the volume, quality, and value addition of the natural products that Primary Producer 

Organizations C'PPOs") collect and harvest, and to advance their operational and business 

capacity. In addition, this Activity will improve market information to PPO's, provide capacity 

building for the Indigenous Plant Task Team ("IPTT') and support the formulation of 

regulations, policies and implementation plans to ensure the protection of indigenous knowledge. 

MCA-Namibia will develop, subject to MCC approval, a grants-making manual that will guide 

the review, selection and approval process of grants to PPOs. This Activity includes a fund to 

support research, testing and application of new innovations and services critical to the INP 

industry'S immediate, short-term and long-term competitiveness (the "INP Innovation Fund"). 

MCA-Namibia will develop, subject to MCC approval, an operations- manual to guide the 

management of the INP Innovation Fund. 

2. Beneficiaries. 

Direct and indirect beneficiaries of the Livestock Support and the Communal Land Support 

Activities are estimated at 135,000. In addition, over 24,000 households will benefit from 

improved veterinary services, and an estimated 1,800 households across 50 communities are 

anticipated to benefit from the rangeland management program. 

The INP Activity is expected to increase income for up to 15,000 primary producers, a majority 

of whom are poor and female and for whom small increases in cash income are important 

supplementary household income for up to 75,000 individuals. 

A~~EX 1-13 

- --- --- .. ....",,,0> •• ' _ ,_." , • .--" •• -•••• ,.... ,~ •• ~ _ .~_ __" "'_"_ 

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3. Sustainability. 

The Land Access and Management Activity will directly support sustainability through the 

strengthening of structures and systems of land-related institutions that expedite land 

management processes at various levels of government. This includes access to basic 

information in the form of spatial data, topographic maps, and integrated information systems on 

land holdings that assist in decision-making, planning, and maintenance of proper registers of 

land rights. The institutional sustainability of the Communal Land Support Activity will depend 

upon the allocation of sufficient budgetary provisions and technically-skilled staff to the CLBs in 

the NCAs. 

The veterinary service centers that will be constructed as part of the Livestock Support Activity 

are a public good which Namibia is committed to fully fund in terms of staff and operational 

costs. The Ministry of Agriculture'S five-year budget plan provides for the financial needs of 

these five centers. 

After the initial MCC-funded tagging exercise, the Livestock Traceability System will be a 

shared public-private cost whereby the GRN and cattle o\\ners cover the costs oftags and 

operations of the information system. The GRN will cover the costs associated with information 

entry into the traceability database. 

The sustainability of the Livestock Market Efficiency Improvement sub-activity will be achieved 

primarily by attracting and supporting successful private sector solutions. Some of these may 

not be sustained in the long term, but represent short-term measures that create incentives for 

farmers to overcome post-farmgate costs/losses. Potential long-term solutions include the 

establishment of more strategic market infrastructure in conjunction with the private sector 

and/or public sector. 

The sustainability of the INP Activity is enhanced by the business capacities that are developed 

among the PPO clients, SME processors, traders, IPTT and the linkages they make with global 

buyers of raw, semi-processed and finished INPs. Significant economic gro\\th opportunities for 

the Namibian INP industry have been documented by both researchers and private firms. 

4. Environmental and Social Mitigation Measures. 

The Agriculture Project is categorized under MCC's Environmental Guidelines as a Category B 

Project due to potential site-specific environmental and social impacts anticipated to result from 

land use management decisions, the construction and operation of veterinary centers and 

rehabilitation of quarantine camps. The Livestock Market Efficiency Fund, which involves an 

intermediate funding facility, is categorized under MCC's Environmental Guidelines as a 

Category D Activity. The INP Activity is categorized under MCC's Environmental Guidelines 

as a Category A Activity due to potentially significant environmental impacts anticipated to 

result from increased harvesting, utilization and export of species listed for protection under the 

Convention on the International Trade of Endangered Species ("'CITES) 

The Land Access and Management Activity will involve the development ofEAs and EMPs to 

mitigate any adverse impacts. Participatory community-level decision making processes will 

further mitigate against adverse impacts. The Livestock Support Activity will involve an EA to 

analyze the environmental and social impacts ofthe veterinary centers, quarantine camps, and 

livestock marketing facilities and inClude the development of site-specific EMPs. The EMPs 

A:-''}.iEX 1- 14 

- --- - ,._< - , --- ._------- ---.--

'. __ , _'." ~"..- •• ~ __ ~,_ ..... _. >~ ,~ .~"~~ ___ ~'"' ___ ,_ .... , __ • "w~ ."_ ~ _.,_._ .'_-'R~~·>"-'- __ "·'~¢'~ __ 
t ---.--,.-.------.-.------.--------"--~-"'--.--,. .. -----.----------.----"-------------------------.~-----.--.--.-----.------~----

--""---""-~'-'------"---, -'-.- -... -----------.----"---.-- , 

will define the regulations and specific training needed to govern the use of Restricted Use 

Pesticides and other substances in compliance with Namibia's Environmental Management Act 

and MCC Environmental Guidelines. Any post-fanngate infrastructure built through the 

Livestock Market Efficiency Improvement sub-activity will involve'the application of 

environmental screening and siting criteria and periodic audits of the performance of 

infrastructure funding recipients. The INP Activity will invoh:e an EIA and an EMP to identify 

impacts and develop appropriate mitigation measures. These measures will address any potential 

environmental impacts that could result from the harvesting, utilization and export of species 

listed for protection under CITES. 

Any resettlement impacts resulting from the Agriculture Project will be identified and 

documented in compliance with op 4.12. In particular, the Land Access and Management 

Activity will clarify procedures to ensure that community decision making regarding restricting 

access to land includes measures to mitigate adverse impacts on livelihoods. HIV / AIDS 

awareness and prevention plans will be developed under the Agriculture Project and 

implemented in relation to construction acti\;ities. Furthermore, trafficking in persons for 

livestock-related labor under the Livestock Support Activity \\<ill need to be addressed through 

I the development and implementation of anti-trafficking measures. Gender integration plans will 

I, be developed to provide design recommendations and to ensure women's participation I throughout implementation for all Activities with a particular focus on including women in land 

i and natural resources management decision making. The Livestock Market Efficiency Fund and 

1 the INP Innovation Fund will comply with MCC's Environmental Guidelines, whose tenns will 

! be included in the grants-making manuals. Increased demand for INPs is likely to provide 

significant income benefits to female-headed households and vulnerable groups such asthe San 

people. 

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5. Donor Coordination. 

The Activities of the Agriculture Project build on other donors' previous initiatives in the 

livestock and land management sub-sectors. The Livestock Activity will build upon previous 

and current donor support to improve livestock marketing by communal farmers. The 

Communal Land Support sub-activity will build upon other GRN and donor-funded land reform 

initiatives to ensure coordination and avoid duplication. Community-based Rangeland and 

Livestock Management sub-activities build upon several successful community-led solutions to 

natural resources management. VariOllS donors have supported the commercialization of natural 

products, namely USAID, the EU, the GEF facility, the F AO, and Oxfam. Previous programs in 

this sector have largely targeted the upper end of the value chain, and MCC Funding will 

complement these efforts by working closely with the first-stage primary producers. 

6. USAID. 

MCC Funding will build on USAlD-funded projects in natural resources management, 

specifically the natural products sector. 

7. Policy, Legal and Regulatory Reforms. 

Namibia has committed to adopt the "Access to Genetic Resources and Associated Traditional 

Knowledge" draft bill into law, which shall reflect, and not deviate in a significant manner from, 

the tenns of CITES. 

A}''NEX 1- 15 
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E. IMPLEMENTATION FRAMEWORK 

1. Oven"jew. 

Namibia will generally implement the Program through its existing government systems. The 

National Planning Commission, a ministry-level government agency charged with directing 

development resources, has been confinned as the designated accountable entity. As such, it will 

have overall responsibility for the oversight, management and implementation of the Program. 

A program implementation unit, within NPC will serve as the management unit and \vill be 

responsible for the day-to-day administration of this Compact. In addition, the Ministries of 

Education; Agriculture, Water and Forestry; Environment and Tourism; and Lands and 

Resettlement, and other governmental institutions, will undertake certain aspects of the 

implementation of specific Projects to ensure integration, coordination and sustainability of the 

MCC investments. 

2. MeA-Namibia. 

(a) Board of Directors. 

(i) Composition. 

The NPC Commissioners serve as the MCA-Namibia Board of Directors. The Commission 

currently consists of 14 members, six of whom are ministers specified by the NPC's enabling 

statute, with the remaining members appointed by the President of Namibia. As the six specified 

ministers do not include representatives from the MoE or the MET, Namibia agrees that two of 

the appointed commission member slots will be filled with representatives from these ministries. 

In addition, Namibia has agreed that the remaining six appointed slots will be filled, as their 

current tenns expire, with civil society and private sector representatives selected through a 

process that allows the private sector and civil society groups whose interests relate to the 

Projects to nominate potential candidates. The below ministries will be represented by the 

Minister or a delegate no lower than the Penn anent Secretary level: 

• National Planning Commission (Chairperson is the Director General) 

• Ministry of Agriculture, Water and Forestry 

• Ministry of Finance 

• Ministry of Trade and Industry 

• Ministry of Works and Transport 

• Ministry of Regional and Local Government, Housing and Rural Development 

• Ministry of Education 

• Ministry of Environment and Tourism 

ANNEX I - 16 

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The existing appointees to the NPC Commission, as of the date hereof, are civil society and 

private sector members, selected by the President based on their expertise and the sectors they 

represent are listed below: 

• Representative ofthe Namibia Chamber of Commerce and Industry 

• Founder, Desert Research Foundation of Namibia (DRFN) 

• Director of Primary Health Care, Ministry of Health and Social Services 

• Deputy Director of Environmental Affairs, Ministry of Environment and Tourism 

• President, National Union for Namibia Workers (NUNW) 

• Secretary General, National Youth Council of Namibia 

• Head ofETSIP, Ministry of Education 

• CEO, Federation of Namibia Tourism Associations (FENATA) 

Since there is an equal number of Board members, for voting purposes, the Director General will 

hold a tie-breaking vote. 

(ii) Roles and Responsibilities. The roles and responsibilities of the MCANamibia Board will be as set forth in the bylaws of MCA-Namibia annexed to the Program 

Implementation Agreement (to the extent not inconsistent with the NPC Act). 

(b) Management Unit. 

(i) Composition. 

Appointed by the Director General ofthe NPC, with MCC's approval, MCA-Namibia will be 

managed by a Chief Executive Officer ("CEO"). Senior management will also include the 

following officers: 1\vo Deputy CEOs; Director of Administration and Finance; Project Directors 

for Education, Tourism and Agriculture; Environment and Social Assessment Director; 

Monitoring and Evaluation Director; Legal Advisor; and Procurement Manager. In addition to 

other standard operational staff, much of the technical expertise will come from the 

implementing entities. MCA-Namibia will support limited staff within the Ministry of 

Education, Ministry of Agriculture, Ministry of Environment and Tourism, and the Namibia 

Tourism Board, who will support Compact Activities while ensuring close integration with 

national priorities and strategies. 

(ii) Roles and Responsibilities. 

The roles and responsibilities ofthe Management Unit will be set forth in the bylaws of MCANamibia annexed to the Program Implementation Agreement. 

A};;--;EX 1-17 

--" - -~- --_.-- ._--- .--' .. _" - -. - - _.~. __ . _,~_ .. ~. ___ ............ _.,~ '.'_.> .. ~, ... ~ _ ., _ .... ~_r._ . ..,._'_< ___ " .... _"'h'""'_. __ •• ~ •. ~.- .. _~. ____ -_., .-, 
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3. Stakeholder/Consultative Committees. 

MCA-Namibia will rely on existing consultative mechanisms for each ofthe Projects. For the 

Education Project, this will be the ETSIP Programme Coordinating Committee and the NT A 

Board. For the Tourism Project, MCA-Namibia will consult with the Namibian Association for 

Conservancy Support Organisations (NACSO). For the Agriculture Project, consultations will 

be with the Technical Committee on Land and Social Issues, the Veterinary Cordon Fence 

(VCF) Task Force, farmers' organizations, and the Indigenous Plants Task Team (IPTT). 

These committees include members from the public and private sectors and civil society. They 

are broad-based and offer relevant technical expertise plus a solid understanding of socioeconomic and environmental realities in Namibia. 

The MCA-Namibia Project Directors will present Program-related matters to these consultative 

bodies and report back to the MCA-Namibia Board on the advice provided by them. The 

committees may also pro-actively approach MCA-Namibia with their concerns related to the 

Program design and implementation. Regular, periodic interaction between MCA-Namibia and 

the consultative bodies is anticipated. 

4. Implementing Entities. 

Subject to the terms and conditions of this Compact and any other supplemental agreement 

entered into in connection with this Compact, MCA-Namibia may engage one or more entities of 

Namibia to implement and carry out any Project or Activity (or a component thereof) to be 

carried out in furtherance of this Compact (each, an "Implementing Entity"). Namibia will 

ensure that MCA-Namibia 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, the MCA-Namibia officer to whom such Implementing Entity will report and other 

appropriate terms and conditions (each an "Implementing Entity Agreement"). 

5. Fiscal Agent. 

Unless MCC otherwise agrees in writing, Namibia will ensure that MCA-Namibia engages a 

fiscal agent (a "Fiscal Agent"), who will be responsible for assisting MCA-Namibia with its 

fiscal management and assure appropriate fiscal accountability ofMCC Funding, and whose 

duties will include those set forth in the Program Implementation Agreement. 

6. Procurement Agent. 

Unless MCC otherwise agrees in 'writing, Namibia will ensure that MCA-Namibia engages one 

or more procurement agents (each, a "Procurement Agent") to carry out and certify specified 

procurement activities in furtherance of this Compact. The roles and responsibilities of each 

Procurement Agent \A,"il1 be set forth in the Program Implementation Agreement or such 

agreement as MeA-Namibia enters into with each Procurement Agent, which agreement shall be 

in form and substance satisfactory to MCC. Any Procurement Agent will adhere to the 

procurement standards set forth in the MCA-Namibia Procurement Rules and ensure 

procurements are consistent with the procurement plan adopted by MCA-Namibia pursuant to 

the Program Implementation Agreement, unless MCC otherwise agrees in \\Titing. 

A1'<l\iEX I -18 

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ANNEX II 

MUL TI-YEAR FINANCIAL PLAN SUMMARY 

This Annex II to this Compact (the "Financial Plan Annex") summarizes the Multi-Year 

Financial Plan for the Program. 

1. General. 

A multi-year financial plan summary ("_Jlulli-Year Financial Plan Summary") is attached 

hereto as Exhibit A. By such time as specified in the PIA, Namibia 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 Namibia's contribution of funds and resources, an estimated drawdo~n 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 ofthe date on which this Compact enters 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. Government LMIC Contribution. 

During the Compact Term, Namibia shall make contributions, relative to its national budget and 

taking into account prevailing economic conditions, as are necessary to carry out Namibia's 

responsibilities and obligations under Section 2.6(a) of this Compact. These contributions may 

include in-kind and financial contributions (including obligations of Namibia on any debt 

incurred toward meeting these contribution obligations). In connection with this obligation 

Namibia has developed a budget over the five year term ofthe Compact to compliment MCC 

Funding through budget allocations to its sectors in education, tourism and agriCUlture. Namibia 

anticipates making contributions from its national budget of approximately US$165,483,800 

over the Compact Term. Such contribution shall be in addition to Namibia's spending allocated 

toward such Project Objectives in its budget for the year immediately preceding the 

establishment of this Compact. Namibia's contribution remains subject to any legal 

requirements in Namibia for the budgeting and appropriation of such contribution, including 

approval of Namibia's annual budget by its Parliament. The Parties may set forth in appropriate 

supplemental agreements certain requirements regarding this Government contribution, which 

requirements may be conditions precedent to the Disbursement of MCC Funding. 
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EXHIBIT A 

MULTI-YEAR FINANCIAL PLAN SUMMARY 

(US$) 

Component CIF Year 1 Year 2 Year 3 Year 4 

I. Education Project 

(a) Improving the Quality of General Education 5.775.732 3.842.838 15,629,051 30.725.468 17.086.640 

(b) Vocational and Skills Training 1.393,045 1,673.534 5,980.430 11.552.609 7.643.114 

(c) Improving Access to and Management of 205.720 3.582.549 5,346.299 1.818,903 1.818,903 Textbooks 

(d) Regional Study and Resource Centers 1.545.394 52,160 2.094.525 8.324,161 7.817.049 

(f) Access to Tertiary Education Finance - 838,940 632.583 632,565 - (g) Cross-Project Support (HIV/AlDS 56,405 311,094 311.094 273,490 254,689 Plans/Training) 

Sub-Total 8.976.296 10,301.115 29.993,982 53.327,196 34.620.395 

2. Tourism Project 

(a) Improving Management and Infrastructure 999,971 2,049,000 5,570.200 15,968,535 8.765.558 in Etosha National Park 

(b) Marketing Namibia in Tourism 500,000 1.397.223 2.365.623 2,417,186 1.575.619 

(e) Ecotourism Development for Communal 975,174 1.266,757 5,102.867 4.979.079 4.450,017 Conservancies 

Sub-Total 2,475.145 4,712,980 13.038.690 23.364,800 14,791,194 

3. Agriculture Project 

(a) Land Access and Management - 181.390 7.268,360 6,604,130 4,936.130 

(b) Livestock 1.369,139 475.468 8,980,464 5.985,447 2.018,000 

(e) Indigenous Natural Products - 906.192 1,710,024 1.875,994 1.475.994 

Sub-Total 1.369.139 1.563.050 17.958,848 14,465,571 8,430,124 

4. Program Management and Administration 

(a) MCA-Namibia Administration 5.000,000 3,200,000 3.200.000 3,200,000 3.200,000 

\b) Financial Management and Procurement 1,000,000 3,000,000 3.000,000 3.000.000 3.000,000 Controls 

(e) Financial Audits - 400,000 400,000 400,000 400,000 

Sub-Total 6,000,000 6.600,000 6,600.000 6.600.000 6.600,000 

5. ~Ionitoring and EV'aluation 

(a) Monitoring and Evaluation 722,595 1,774.617 1.027.399 1.024,139 1,006,920 

Sub-Total 722,595 1,774,617 1,027.399 1.024,139 1.006.920 

GRAlloll) TOTAL 19,543.175 24,951.762 68,618,919 98,781,706 65,448,633 

AN~EX II-2 

YearS Total 

3.797.031 76.856,760 

928.697 29.171.429 

1.818.903 14,591.277 

1.052.263 20,885.552 

- 2,104.088 

160,680 1.367,452 

7,757.574 144,976.558 

7.159,725 40.512.989 

- 8.255,651 

1.416.757 18,190,651 

8.576,482 66.959,291 

2.168.017 21.158.027 

268,000 19.096,518 

742,571 6,710,775 

3.178,588 46.965.320 

3.200.000 21,000.000 

3.000,000 16.000.000 

400,000 2,000.000 

6.600,000 39.000.000 

1.020.977 6.576,647 

],020.977 6.576,647 

27.133.621 304.477,816 
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Al~NEXIII 

DESCRIPTION OF MONITORING AND EVALUATION PLAN 

This Annex III (this "JY&E Annex") generally describes the components ofthe Monitoring and 

Evaluation Plan ("JY&E Plan") for the Program. 

1. Overview. 

MCC and Namibia will formulate, agree to and Namibia will implement, or cause to be 

implemented, an M&E Plan that specifies (a) how progress toward the Program goal and 

objectives will be monitored, ("Jfonitoring Componenf'), (b) process and timeline for the 

monitoring of planned, ongoing, or completed Project Activities to determine their efficiency and 

effectiveness, and (c) a methodology for assessment and rigorous evaluation of the outcomes and 

impact of the Program ('"Evaluation Componenf'). Information regarding the Program's 

performance, including the M&E Plan, and any amendments or modifications thereto, as well as 

progress and other reports, will be made publicly available on the website of MCA-Namibia and 

elsewhere. 

2. Program Logic. 

The M&E Plan will be built on a series of logic models which illustrate how the Program, 

Projects and Project Activities contribute to poverty reduction and economic gro\\-th in Namibia. 

The chart below provides a visual representation of each Project's objectives and outcome 

statement that this Compact will seek to achieve. In sum, the goal of the Program is to contribute 

to economic gro\\th and poverty reduction among targeted beneficiaries primarily in the northern 

area of Namibia. 

The following chart stating the Project objectives and the outcomes illustrates how each of the 

Projects addresses poverty reduction in the applicable sectors: 

______ •• __ ~_" •• _ _ •• ___ •••• ___ • ____ • __ •• ", _______ ._. ___ 0' __ - __ • 

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Compact 

Goal and 

Objective 

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PROGR-\~t LOGIC 

Project Objectives and Outcomes 

Education Project Objective: Improve the quality of the workforce in Namibia by enhancing 

the equity and effectiveness of basic, vocational, and tertiary education and of technical skills. 

Outcomes: (1) Enhanced learning and cognitive development of students at MCA target 

schools, (2) Increased Funds for \ocational and skills training, (3) Gaps 

filled in the current provision of books. (4) Efficiency gained in textbook 

procurement and delivery. (5) Increased use of information for formal 

education. informal learning. business. and research, and (6) Increased 

financing available for tertiary education. 

Tourism Project Objective: Grow the ~amibian tourism industry with a focus on increasing 

income to households in communal conservancies. 

Outcomes: (I) Improved management efficiency of the ENP, (2) Increased international 

awareness of Namibia tourism potentiaL and (3) Increased commercial 

capacity of conservancies. 

Agriculture Project Objective: Enhance the health and marketing efficiency of livestock in 

the NCAs of Namibia and to increase income from indigenous natural products accruing to the 

poor nationwide. 

Outcomes: (1) Increased provision of high quality veterinary services. (2) Traceability 

system in place for market access. (3) Community adoption of Rangeland 

Management techniques and methodologies. and (4) NP market access. 

3. Monitoring Component. 

To monitor progress toward the achievement of the impact and outcomes, the Monitoring 

Component of the M&E Plan will identify (a) the indicators, (b) the definitions of the indicators, 

(c) the sources and methods for data collection, (d) the frequency for data collection, (e) the party 

or parties responsible, and (f) the timeline for reporting on each indicator to MCC. 

Further, the Monitoring Component will track changes in the selected indicators for measuring 

progress towards the achievement of the objectives during the Compact Term. Before the 

initiation of implementation activities for each Project, MCA-Namibia will collect baseline data 

on the selected indicators or verify already collected baseline data. 

(a) Indicators. The M&E Plan will measure the results of the Program using 

quantitative, objective and reliable data ("Indicators"). Each indicator will have benchmarks 

that specify the expected value and the expected time by which that result will be achieved 

("Targef'). The M&E Plan will be based on a logical framework approach that classifies 

indicators as goal, outcome, output, and process milestones. The Compact Goal indicators 

("Goal Indicators") will measure the general contribution of the Projects to the national 

economic gro\\1h and poverty reduction. Second, the Project objective and outcome ("Project 

Objective and Outcome Indicators") will measure the final result of each Project. Third, Output 

Indicators and process milestones ("Project Activity Indicators") will measure the early and 

intermediate results of the Project Activities. For each Project Objective, Outcome, and Activity 

Indicator, the M&E Plan will define a strategy for obtaining and verifying the value of such 

indicator prior to undertaking any activity that affects the value of such Indicator (such value, a 

Al\<;-.JEX III - 2 
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"Baseline"). All indicators will be disaggregated by gender, income level and age, and 

beneficiary types to the extent practicable. Subject to prior written approval from MCC, MCANamibia may add indicators or refine the definitions and Targets of existing indicators. 

(i) Goal. The M&E Plan will contain the Goal Indicators listed in the table 

below specifying the definition, baseline, and end of Compact Target for each. 

Goal Level 

Result Indicator I Definition of Indicator Baseline Target 

Relative poverty :- Percent of 

households devoting more than 60 28% 20% percent of total household income to 

Poverty Rate lO food expenses II 

Extreme poverty: Percentage of 

household devoting more than 80 per 4% 2% cent of total income to food 

Economic Growth expenses 12 

and Reduction of Unemployment Percentage of economically active 

Poverty Rate 13 population who are currently 35% 33.6% 

unemployed. 

The average annual household 

consumption expenditures in cash, inAverage Income per 

kind and non consumption 

Householdl4 expenditures such as savings and US$6,031 TBD 

investment and other non 

consumption disbursements 

(corrected for CPl). 

(ii) Project Objective, Outcome and Activity Indicators. The M&E Plan will 

contain Project Objective, Outcome, and Activity Indicators which will measure the results for 

the 3 (three) main Projects and are listed below with their definitions, baseline and targets. Prior 

to the initiation of implementation ofa Project Activity, MCC and MCA-Namibia \\-ill agree on a 

final set of Activity Indicators. The M&E Plan will contain these indicators or will be amended 

to contain these indicators. 

10 Definitions of Relative and Extreme poverty inline with that of the NDP 3. 

II Baseline from the National Development Plan 3 (NDP 3). Target taken from the NDP 3 and is thus inline with 

National development objectives and goals. 

12 Baseline from the NDP 3. 

13 Target taken from the Sational Development Plan 3 (!liDP 3) and is thus inline with National development 

objectives and goals. 

14 Namibia Household Income and Expenditure Survey 2003/2004 Preliminary Report, March 2006. The stated 

average annual adjusted income per household is N$42, 129 with per capita income ofNS8,556 and adjusted per 

capita income ofNSl0,357. The baseline figure uses an average NAD-US$ exchange rate for 2003/04 ofNS 

6,985 : US$I. 

A~~EX III - 3 
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! 

Projed: Education I" 

Objective Level 

Result Indicator Definition of Indicator Baseline Year 5 

Number of 5th grade students 

who pass the national 1,528 1.554 transitional examinations for 

Transition Rate of 5th and 5th grades 16 

8th Grade Students Number of 8th grade students 

who pass the national 2,982 3,018 transitional examinations for 

8th gradesl7 

Enhanced learning Percentage of learners 

and cognitive achieving D or better in 

development of mathematics, life science, -l3% 53%19 

students physical science, and English 

National Pass Rate of JSC 

as a second language on JSC 

and NSSC Learners in the (grade 10) 

Basic Subjects ofthe Percentage of learners 

DNEA Examinationl8 achieving D or better in 

mathematics, life science, 

physical science, and English 31% 41% 

as a second language on NSSC 

Ordinary Level exams (grade 

12) 

Percentage completing 

COSDEC who are full time or 

Employment rate of self employed in the sector of 

studies within the national 

Increased supply 

COSDEC participants in industries one year of after -l9% 70% 

level of skills the national industries completion of required course 

demanded by of studies in the COSDEC 

employers program 

Employment rate of other Percentage who are full time or 

vocational skill self-employed one year after 40% 75% development programs in completion of vocational skill 

national industries training programs 

15 Education indicators with target from ETSIP will be adjusted in accordance with the annual ETSIP reviews. 

16 In the absence of disaggregated data specific for the 47 target schools the baseline represents the national average 

for all schools offering grade 5, calculated for 36 schools, out of the target 47 that offers grade 5. To be revised 

once disaggregated data for the 47 target schools is available. Target is based on an average annual rate of 

increase of 0.329% per annum for transition of 5th graders. To be revised once disaggregated data for the 47 

target schools is available. Data from EMIS 2007. 

17 In the absence of disaggregated data speCific for the 47 target schools the baseline represents the national average 

for all schools offering grade 8, calculated for a1147 schools offering grade 8. To be revised once disaggregated 

data for the 47 target schools is available. Target is based on an average annual rate of increase of 0.241 ~,'O per 

annum for transition of 8th graders. To be revised once disaggregated data for the 47 target schools is available. 

Data from EMIS 2007. 

18 ETSIP target for 20 II = 52.1 %. ETSIP targets are being reviewed so this target will be revised once ETSIP data 

are available (July 08). 

19 ETSIP target for 2011 = 62.9%. ETSIP targets are being reviewed so this target will be revised once ETSIP data 

available (July 08). 

A1'<~EX III - 4 
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Outcome Level 

Result Indicator Definition of Indicator Baseline YearS 

Activity: Improving the Quality of General Education 

Percentage of learners at MCC 

DNEA examination results target schools achieving D or 

(MCC target schools) 20 better in mathematics, life 43% S3% 

science, physical science, and 

English JSe exam (grade loil 

Percentage of 5th 

and 8

th iade Sth 1.528 I,S54 Enhanced learning Transition rate of Sth and students passing 

and cognitive 8th grade students (MCC the national 

development of transition 

students at Mce target schools) examination in 

target schools MCe target 8th 2,982 3,018 

schools 

Percentage of Sth, 

8th and II th grade Sth22 94.1% 94.3% 

Survival Rate students who have 8th:!3 80.7% 84.6% remained in each 

phase of school 

II th24 38.6% 40.0% since fIrst grade 

Percentage of I S\ 1 st25 19.7% 19.5% 

Sth and , 8th grade Sth26 22.8% 22.6% 

Repetition Rate students who have 

dropped out or 

repeated grade 8th27 21.1% 21.0% 

levels 

20 This is representative of the national average of all schools. A baseline will be established for the MCe target 

schools. 

21 MCe target school figures only include junior secondary as most MCC target schools only offer this level to date. 

As more schools begin offering senior secondary, an indicator may be added for the NSSC. 

22 Target based on annual average rate of change (for 2000-2006) of 0.04%; to be revised against revised ETSIP 

targets. Data from EMIS 2007. 

13 Target based on annual average rate of change (for 2000-2006) of 0.94%; to be revised against revised ETSIP 

targets. Data from EMIS 2007. 

24 Target based on annual average rate of change (for 2000-2006) of 0.68%; but to be revised against revised ETSIP 

targets. Data from EMIS 2007. 

25 Target based on annual average rate of change (for 2000-2006) of 0.341 %; but to be revised against revised 

ETSIP targets. Data from EMIS 2007. 

26 Target based on annual average rate of change (for 2000-2006) ofO.IS%; but to be revised against revised ETSIP 

targets. Data from EMIS 2007. 

2: Target based on annual average rate of change (for 2000-2006) of 0.132%; but to be revised against revised 

ETSIP targets. Data from EMIS 2007. 

A?'-i"NEX III - 5 
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Outcome Level 

Result Indicator Definition of Indicator Baseline Year 5 

Activity: Improving Vocational and Skills Training 

Percentage of total participants 

Completion rate of who completed required course 70% 8S% COSDEC participants28 work within the specified time 

period of the program 

Percentage of total participants 

Completion rate of of other Vocational skill 

participants of other training who completed TBD 80% Vocational skill training required activities within the 

programs specified time period of the 

Enhanced workforce program 

skills COSDEC enrollment Rate Total COSDEC participant 1.IS0 3.000 enrollment within a year 

Total MCC assisted 

Vocational Skills training Vocational Skill training 1,670 2.171 enrollment rate19 

program enro llment within a 

year 

Funds contributed to NTF 

Annual Revenue to NTF from Employers (Private sector US$O US$I,600,000 training levy and other 

sources) (2008 US$) 

Activity: Upgrading Access to and Management of Adequate Textbooks 

Total number of schools as a 

Gaps filled in the % of schools meeting the percentage of the total number 

current provision of target of Textbook of national schools who are TBD TBD 

books Students rati030 meeting the targeted student 

textbook ratio of 1 :2 

Efficiency in % of textbook inventory 

textbook Textbook Inventory delivered on time to schools TBD 9S% 

procurement and Turning Rate31 out of the total textbooks 

delivery procured for a given year 

Activity: Investment in Regional Study and Resource Centers 

Increased use of Resource and learning The total number of library 

information for materials loaned out per books loaned out per year in 33,921 84,406 

formal education, year32 the MCA assisted libraries 

informal learning, Total number of visits to Total number of annual visits business, and 

new RSRCs to 3 new MCC-funded RSRCs 31,000 100,000 

research 

28 ETSIP indicator with a baseline target for 2008. 

29 Year S Target is based on a 30% increase of the baseline. 

30 Baseline to be determined during MCC funded textbook survey. Target of 1 textbook per every 2 students inline 

with ETSIP target and can be amended against revised ETSIP targets. 

31 Baseline to be determined during MCC funded textbook survey. 

32 Baseline from MoE. Year S target is based on an annual increase of20%. 

A~'NEX III - 6 
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Outcome Level 

Result Indicator Definition of Indicator Baseline 

Activity: Expanding and Improving Access to Tertiary Finance 

Percentage of the total 

O,'ll of qualified financial aid qualified financial aid 

applicants receiving loans applicant enrolled in tertiary 

Increased financing for the school year 

institutions who actually 

available for tertiary received students loans for the 

education school year 

Percentage ofloans awarded 

Repayment rates3

} under the new system being 

paid on time 

Proj('ct: Tourism 

Objective Level 

Result Indicator Definition of Indicator 

Annual total Total number of tourist arrivals 

tourist arrivals in recorded per annum (excluding 

Namibia by South African and Angolan multi 

origin34 purpose business-tourism visits) 

Growth of tourism Total direct employment created 

industry targeting Total Tourism within the tourism industry by travel 

poor beneficiaries Industry and tourism companies excluding 

employmene5 government agencies and supplier 

company employments 

Increased Increases in income of HH in 

Household (HH) targeted communal conservancies 

income36 areas 

33 Baseline based on loan repayment rate for 2007. 

34 NTB data. 

20% 

20% 

Baseline 

864,451 

21,508 

27.885 

Year 5 

60% 

75% 

Year 5 

1,057,000 

24.573 

41,827 

35 Baseline data is based on preliminary figures from Namibia's 2007 Tourism Satellite Accounts (TSA). The year 5 

target is based on projected 2.7% annual growth. 

36 Baseline is based on average income to conservancy households for the 31 MCC target conservancies at an 

average US$-NAD exchange rate for 2007 of US$ I : NAD 7.195. The target is project as 50% growth of the 

baseline. To be confirmed before Compact entry into force. 

A~~EX III - 7 

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Outcome Level 

Result Indicator Definition of Indicator Baseline Year 5 

Activity: Improving Management and Infrastructure in Etosha National Park 

Improved Total ENP Annual total revenue generated by 

management and 

revenue37 ENP including gate receipts and 2,963,538 4,142,529 

management concession fees (2007 US$) 

efficiency of the 

Park attendance38 The annual total park attendance for 200,000 293,000 ENP ENP based on park entry records 

Activity: Marketing Namibia in Tourism 

Increased awareness Number of tourist Total number of tourist arrivals 

of Namibia's arrivals from new 

recorded for new targeted markets 19.342 30,94740 

(target expressed as a percent change tourism products targeted markets 

over the baseline i 9 

Activity: Ecotourism Development for Communal Conservancies 

Fraction of conservancy revenues 

paid out as household 

Conservancy income/dividends plus amounts 

benefits to invested in community projects 34%.t1 75%) households and (schools, clinics, social services) and 

community new enterprise expansion. Figure is 

the average across all MCCsupported conservancies. 

The total revenue generated by all 

Total revenue to conservancies supported by MCC--

targeted registered including in-kind revenues (target 2,952,175 4,149,422 

conservancies42 expressed as a percent change over 

Increased the baseline, 2008 US$) 

commercial capacity 

of conservancies The number of Of 17 established 

Conservancy conservancies conservancies 

achieving a (registered 944 16 sustainability positive net before Aug 1, 

income43 2003) 

37 Baseline based on CPI adjusted total revenue for 2007 at an average US$-NAD exchange rate for 2007 ofUS$1 : 

NAD 7.195. 

38 Baseline data from MET. Year 1 target is the same as the baseline as MCA interventions ".-ill only impact from 

Year 2. The year 5 target is based on annual 10% growth. The target will be revised based on the outcome of the 

MCC-funded Carrying Capacity study for ENP. 

39 Baseline refers only to USA arrivals. 

40 The year 5 Target is based on a 60% increase from the baseline. 

41 Baseline is an estimate. Actual figure will be determined before Compact entry into force. 

41 Baseline data is based on 23 registered conservancies, out of the 31 proposed for MCC support, that generate 

revenue (USS 1 = N$ 7.195). The remaining 8 conservancies are emerging with high potential for revenue 

generation. The baseline is corrected for the 2007 average CPI. 

-u The calculation of profit (profit = revenue - cost) will include all relevant costs such as in kind services from 

donors (i. e. negotiating assistance and auditing services) and amortization of capital investment. 

44 Baseline is an estimate. Actual figure will be determined before Compact entry into force. 

A~:\EX Ill- 8 
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Outcome Level 

Result Indicator Definition of Indicator Baseline Year 5 

The number of Of 14 beginning Increased conservancies 

commercial capacity Conservancy achieving a conservancies 045 7 

of conservancies sustainability positive net (registered after 

income Aug 1,2003) 

Pro.icct: \griculturc 

Objective Level 

Result Indicator Definition of Indicator Baseline Year 5 

Increased health of Percentage of the total population 

cattle Mortality Rate46 that dies of diseases per annum 0.03% TBD 

NCAs 

Enhanced and Annual Number of cattle slaughtered in 

efficient marketing Tumover47 formal markets (public and private 19,000 28,000 

system (formal Market) abattoirs) in the NCAs 

Increased INP Percent increase in INP revenue from 

growth with benefits Percent increase in base year (corrected for CPI 50% accruing to INP revenue inflation) among members of PPOs na 

households targeted f()r assistance 

45 Baseline is an estimate. Actual figure will be determined before Compact entry into force. 

46 Baseline is based on total mortality as percentage of total estimated cattle population in the NCA. Data will be 

revised against the outcome of the MCC funded livestock survey. 

~7 Baseline data from Meatco. Target is projected at 8% annual gro",1h. 

A~EX III-9 
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Result 

Provision of High Quality 

Veterinary Services 

Efficient Traceability 

system 

Enhanced efficiency of 

livestock quarantine and 

marketing 

Community adoption of 

Rangeland Management 

techniques and 

methodologies 

Market access for INPs 

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Outcome Level 

Indicator Definition of Indicator Baseline Year 5 

Activity: Livestock Activity 

CBPP Percentage of livestock in the NCAs vaccination 78% 95% 

Rate48 vaccinated against CBPP 

Frequency of 

NCA Average number of service contacts per 1 2 homestead/villa household per year by DVS 

ge visits by DVS 

Total livestock Total recorded Ii, estock mo\ ements 

movement through transit holdings such as market TBD TBD transactions 

recorded49. 

places and exhibition sites 

Number of Number oflivestock tagged in the NCAs 

livestock tagged under MCC mass tagging (cumulative) 0 1,170,000 

in the NCAs and subsequent owner tagging 

The cost saving to herders from 

Post farrogate improvements in the efficiency of 0 50%50 

cost reduction marketing, transport, and quarantining of 

livestock 

Activity: Land Access and Management Activity 

Value of A verage percent difference in total value 

livestock sold by of livestock sold in previous year 19% 50% communities in between target communities adopting 

formal markets51 techniques and comparison communities 

Adoption rate of 

improved Percentage of targeted communities 

rangeland practicing appropriate rangeland 0% 40% 

management management techniques and 

methodology methodology 

and techniques 

Activity: Indigenous Natural Products Activity 

Percentage of 

targeted PPOs Percentage of targeted PPOs certified for 0 67% granted organic production and fair trade status 

certification 

i (b) Data Collection and Reporting. The M&E Plan will establish guidelines for data 

I collection and reporting, and identify the responsible parties. Compliance with data collection I ! and reporting timelines will be conditions for disbursements for the relevant Project Activities as 

set forth in the Program Implementation Agreement. The M&E Plan will specify the data 

collection methodologies, procedures, and analysis required for reporting on results at alI levels. 

48 Baseline data from Directorate of Veterinary Services (DVS), MA WF. Target is projected at 4% annual gro\\-th. 

49 Baselines and targets to be determined during the MCC-funded livestock survey. 

50 Estimation from MCC ERR calculation. 

51 Baseline calculated as percent difference in the average value of cattle sold in 2006 and 2007. Data from Meatco. 

ANNEX III-I 0 
e_ ===-=====-============'====================_== __ "::-___ -_-___ ~-__ -..:--__ -__ --_.:."::__-_-__ -__ - _=--=-..:. _____ '-_--=--=-__ -_ ---_-_-_ -_-__ "'1 

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The M&E Plan will describe any interim MCC approvals for data collection, analysis, and 

reporting plans. 

(c) Data Oualitv Reviews. As determined in the M&E Plan or as otherwise requested 

by MCC, the quality of the data gathered through the M&E Plan will be reviewed to ensure that 

data reported are as valid, reliable, and timely as resources will allow. The objective of any data 

quality review will be to verify the quality and the consistency of performance data, across 

different implementation units and reporting institutions. Such data quality reviews also will 

serve to identify where those levels of quality are not possible, given the realities of data 

collection. 

(d) Management Information System. The M&E Plan will describe the infonnation 

system that will be used to collect data, store, process and deliver information to relevant 

stakeholders in such a way that the Program infonnation collected and verified pursuant to the 

M&E Plan is at all times accessible and useful to those who wish to use it. The system 

development will take into consideration the requirement and data needs of the components of 

the Program, and ~il1 be aligned with MCC existing systems, other service providers, and 

ministries. 

(e) Role of MCA-Namibia. The monitoring and evaluation of this Compact spans 

across three discrete Projects and will involve a variety of governmental, non-governmental, and 

private sector institutions. MCA-Namibia holds full responsibility for implementation of the 

M&E Plan. MCA-Namibia will oversee all Compact-related monitoring and evaluation 

activities conducted by each of the Projects, ensuring that data from all implementing entities is 

consistent, and accurately reported and aggregated into regular Compact performance reports as 

described in the M&E Plan. 

4. Evaluation Component. 

The Evaluation Component of the M&E Plan will contain three types of evaluations: Impact 

Evaluations, Project Perfonnance Evaluations. and Special Studies. Plans for each type of 

evaluation will be fmalized before MCC Disbursement for specific Program or Project activities. 

The Evaluation Component of the M&E Plan will describe the purpose of the evaluation, 

methodology, timeline, required MCC approvals, as well as the process for collection and 

analysis of data for each evaluation. The results of all evaluations will be made publicly 

available in accordance with MCC Guidelines for Monitoring and Evaluation Plans. 

(a) Impact Evaluation: The M&E Plan will include a description of the methods to 

be used for impact evaluations and plans for integrating the evaluation method into project 

design. Based on in-country consultation with stakeholders, the following strategies outlined 

below were jointly determined as having the strongest potential for rigorous impact evaluation. 

The M&E Plan will further outline in detail these methodologies. Final impact evaluation 

strategies are to be jointly determined before the approval of the M&E Plan and before entry into 

force of this Compact. The following is a summary of the potential impact evaluation 

methodologies: 

(i) Agriculture Project: The CBLRM Activity will be SUbjected to rigorous 

impact evaluation. The evaluation will address the effectiveness of the Activity in improving 

herders' value, grade and incomes. As the Activity is envisioned as a pilot, the evaluation will 

A~,)\;EX III - 11 

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contribute to the justification for scaling up the Activity through arrangements outside this 

Compact. The evaluation will include measurement of outcomes of communities outside the 

target communities. The appropriate rigorous methodology will be used. 

(ii) Education Project: The purpose of the impact evaluation will be to assess 

the effectiveness of the Education Quality Activity through: (1) the quantity of education 

services provided; (2) the quality of education services provided; and (3) learning outcomes. 

The evaluation will include measurements taken from non-MCC target schools to establish a 

comparison group. 

The evaluation may also address the Textbook Activity and other activities that may improve 

school supervision. 

(b) Projects Evaluation. The M&E Plan will make provision for project level 

evaluations. MCA-Namibia, with the prior written approval ofMCC, will engage independent 

evaluators to design the Project Perfonnance Evaluations to be conducted at the end of each 

Project or MCC may engage the independent evaluators. The Project Perfonnance Evaluations 

must at a minimum (i) evaluate the efficiency and effectiveness of the Project Activities; (ii) 

estimate, quantitatively and in a statistically valid way, the causal relationship between the 

expected impact (to the extent possible), the intended outcomes and outputs; (iii) detennine if 

and analyze the reasons why this Compact Goal, Program Objective and Project Objectives were 

or were not achieved; (iv) identify positive and negative unintended results of the Program; (v) 

provide lessons learned that may be applied to similar projects; (vi) assess the likelihood that 

results will be sustained over time; and (vii) any other guidance and direction that will be 

provided in the M&E Plan. To the extent engaged by MCA-Namibia, such an independent 

evaluator will review the plans for the collection of baseline data and, as applicable, plans for 

selecting comparison groups. 

(i) Special Studies. The M&E Plan will include a description of the methods 

to be used for Special Studies funded through this Compact or by MCC. 

Plans for conducting the Special Studies will be determined jointly between MCA-Namibia and 

MCC before the approval of the M&E Plan and before entry into force of this Compact. The 

M&E Plan will identify and make provision for any other special studies, ad hoc evaluations, 

and research that may be needed as part of the monitoring and evaluating of this Compact. 

Either MCC or MCA-Namibia may request special studies or ad hoc evaluations of Projects, 

Project Activities, or the Program as a whole prior to the expiration of the Compact Tenn. When 

MCA-Namibia engages the evaluator, the evaluator will be an externally contracted and 

independently source selected by MCA-Namibia. The aforementioned engagement will be 

subject to the prior written approval of MCC, following a tender in accordance with the MCANamibia Procurement Rules, and in accordance with any relevant Implementation Letter or 

supplemental agreement. Contract tenns must ensure non-biased results and the publication of 

results. 

(c) Request for Ad Hoc Evaluation or Special Study: If MCA-Namibia requires an 

ad hoc independent evaluation or special study at the request of Namibia for any reason, 

including for the purpose of contesting an MCC detennination with respect to a Project or 

Project Activity or to seek funding from other donors, no MCC Funding or MCA-Namibia 

A"N'NEX III - 12 

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.- -.----~.- - ... -.---.--.--.. -~"--------- -------.-.. - .. _-_ ..... _---_ .. ----.--------.~ . 

-- .. --..... --...- ~--.".~ - -, .- < hOW'_ ._",_m"T' " •• ,.~ ••• _.__ .~ _. , .. __ ~.&'~__..._, ____ . _____ ._ ...... ~_ •. _~ , .. _~, ___ ~ ,_._~_ '.'" .,~~ ................ __ ,"_" ,,_H,-, ._.-._.., - "> .'. ~, .", '.-.... ~" , 
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resources may be applied to such evaluation or special study without MCCs prior \\TItten 

approval. 

5. Other Components of the M&E Plan. 

In addition to the Monitoring and Evaluation Components, the M&E Plan will include the 

following components for the Program, Projects and Project Activities, including, where 

appropriate, roles and responsibilities of the relevant parties and providers: 

(a) Costs. A detailed cost estimate for all components of the M&E Plan. 

(b) Assumptions and Risks. Any assumption and risk external to the Program that 

underlies the accomplishment ofthe Objectives and Project Activity Outcomes. However, such 

assumptions and risks will not excuse Parties' performance unless otherwise expressly agreed to 

in \\Titing by all Parties. 

6. Implementation of the M&E Plan. 

(a) Approval and Implementation. The approval and implementation of the M&E 

Plan, as amended from time to time, will be in accordance with this M&E Annex, PIA, and any 

other relevant supplemental agreement. 

A;-"~EX III - 13 ~'. ---.. --- - .--' .. _--_ .. -. - _ .. -_ ..... _.- .. _. __ . ~ _ ... "_~. _. ~,~ .•••. , .... ~~~ .• ~~ '.. . ... _". .. _~ ~'.·"·'3~*._"- "' ..... _ ... ,..,_,~,.~, . .,.-. .. " .... " _ ... ___ .~ ....... ~~.~ ..... ,"'~ .... ,.~._ 

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ANNEX IV 

CONDITIONS TO DISBURSEMENT OF COMPACT IMPLEMENTATION FUNDING 

Capitalized terms used in this }\nnex IV and not defined in this Compact will have the respective 

meanings assigned thereto in the Program Implementation Agreement. 

1. Conditions to each CIF Disbursement. 

(a) Delivery by Namibia (or MCA-Namibia) to MCC ofthe following documents, in 

form and substance satisfactory to MCC: 

(i) a complete, correct and fully executed Disbursement Request for the 

relevant Disbursement Period, together with the Periodic Reports covering such Disbursement 

Period. 

(ii) any proposed waiver or deferral (together with a justification) of any 

condition to Disbursement. 

(iii) a completed Detailed Financial Plan covering Compact Implementation 

Funding. 

(b) Prior to the deposit of any Disbursement of Compact Implementation Funding 

(each a "elF Disbursement') into any Permitted Account in accordance with an approved 

Disbursement Request, MCC ,,,-ill have received satisfactory evidence of the establishment of the 

Permitted Accounts. 

(c) The monitoring and evaluation officer for MCA-Namibia has been selected and 

approved by MCC and remains engaged, or in the event a position is vacant, MCA-Namibia is 

actively recruiting for the position. 

(d) The Fiscal Agent Agreement shall be executed and effective and the Fiscal Agent 

shall be mobilized. 

(e) The Procurement Agent Agreement shall be executed and effective and the 

Procurement Agent shall be mobilized. 

(t) 

mobilized. 

The Bank Agreement shall be executed and effective and the Bank shall be 

(g) If applicable, the tax agreements described in Section 2. 8(b) of this Compact shall 

be executed and effective, together with any laws, rules or regulations necessary to give effect 

thereto. 

(h) MCC is satisfied, in its sole discretion, that (i) the activities being funded by such 

CIF Disbursement are necessary, advisable or otherwise consistent with the goal of facilitating 

the implementation of the Compact and will not violate any applicable law or regulation; (ii) no 

material default or breach of any covenant, obligation or responsibility by Namibia, MC ANamibia or any Namibia entity has occurred and is continuing under this Compact or any 

supplemental agreement; (iii) there has been no violation of, and the use of requested funds for 

the purposes requested will not violate, the limitations on use or treatment of MCC Funding set 

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forth in this Compact, including under Section 2.7; (iv) any Taxes paid with MCC Funding 

through the date 90 days prior to the start of the applicable Disbursement Period have been 

reimbursed by Namibia in full in accordance with Section 2.8 of this Compact; and (v) Namibia 

has satisfied all of its payment obligations, including any insurance, indemnification, tax 

payments or other obligations, and contributed all resources required from it, under this Compact 

and any supplemental agreement. 

(i) Namibia has provided MCC with evidence that the regulations exempting the 

Projects and contractors to be engaged to work on the Projects from the provisions of the 

Architects and Quantity Surveyors Act 13 of 1979 and Engineering Profession Act 18 of 1986 

have been passed and are in full force and effect, in each case in accordance with their terms. 

G) For any CIF Disbursement occurring after this Compact has entered into force: 

MCC is satisfied, in its sole discretion, that (i) MCC has received the reports then due from any 

technical consultants (including environmental auditors engaged by MCA-Namibia for any 

Project Activity), and all such reports are in form and substance satisfactory to MCC; (ii) the 

Implementation Plan Documents submitted to MCC are current and updated and are in form and 

substance satisfactory to MCC, and there has been satisfactory progress on the components of 

the Implementation Plan for any relevant Projects or Project activities related to such CIF 

Disbursement; (iii) there has been satisfactory progress on the M&E Plan for the Program, 

relevant Project or Project Activity and substantial compliance with the requirements of such 

M&E Plan (including the targets set forth therein and any applicable reporting requirements set 

forth therein for the relevant Disbursement Period); (iv) there has been no material negative 

finding in any fmancial audit report delivered in accordance with this Compact and Audit Plan, 

for the prior two quarters (or such other period as the Audit Plan may require); (v) MCC does not 

have grounds for concluding that any matter certified to it in the related MCA Disbursement 

Certificate, Fiscal Agent Disbursement Certificate or Procurement Agent Certificate is not as 

certified; and (vi) ifany of the officers or key staff of MCA-Namibia have been removed or 

resigned and the position remains vacant, MCA-Namibia is actively engaged in recruiting a 

replacement. 

(k) MCC has not determined, in its sole discretion, that an act, omission, condition, or 

event has occurred that would be the basis for MCC to suspend or terminate, in whole or in part, 

MCC Funding in accordance with Section 5.1 of this Compact. 

(1) Namibia has provided MCC with evidence, in form and substance satisfactory to 

MCC, that the program implementation unit that will serve as the management unit ofMCANamibia has been established within NPC and has been exempted from the application of the 

Public Service Commission Act 13 of 1995. 

ANNEX IV - 2 -' ~ .. -.-~ .- - _ ... ---.. ~--- ---.--- -.... ---.~-.---.-~-~ .. -- -_._--_ .. __ .. - .,... ~. ~"''"'" ' __ '~"M'~"""" ._ .c.~~_·_ .. '"' ...... ~_........- __ .. _""~'" __ ... _"_ ......... ~ ... _,~.""_ .... ~~ .. ~ __ -..-.,~-~'"' ... _,. __ .'"<'. __ _ 

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ANNEX V 

DEFINITIONS 

Additional Representative has the meaning provided in Section 4.2. 

Activity has the meaning provided in Part A of Annex 1 

I Agriculture Project has the meaning provided in Part D of Annex I. 

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Baseline has the meaning provided in paragraph 3(a) of Annex III 

CBLRM Activity has the meaning prOVided in Part D of Annex 1 

CEO has the meaning provided in of Part E of Annex I 

CIF Disbursement has the meaning provided in paragraph I (b) of Annex IV. 

CLBs has the meaning provided in Part A of Annex 1 

CITES has the meaning provided in Part D of Annex 1 

Communal Land Support Activity has the meaning provided in Part D of Annex L 

Compact has the meaning provided ill the Preamble. 

Compact Goal has the meaning prol"ided in Section I. I. 

Compact Implementation Funding has the meaning provided in Section 2.2(a). 

Compact Records has the meaning provided in Section 3. 7(a). 

Compact Term has the meaning provided in Section 7.4. 

Conservancy Support Activity has the meaning provided in Part C of Annex L 

COSDECs has the meaning provided in Part A of Annex I 

Covered Provider has the meaning provided in Section 3. 7(c): 

Disbursement has the meaning provided in Section 2.4. 

EA has the meaning provided in Part A of Annex I. 

Education Project has the meaning provided in Part B of Annex I 

Education Quality Activity has the meaning pro"ided in Part B of Annex 1 

EfA has the meaning provided il1 Part A of Annex L 

E.YP has the meaning provided in Part A of Annex I. 
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ENP has the meaning provided in Part C of Annex 1 

ENP Activity has the meaning provided in Part C of Annex 1 

Evaluation Component has the meaning provided in paragraph 1 of Annex III 

Excess CIF Amount has the meaning provided in Section 2.2(d). 

Financial Plan Annex has the meaning provided in Annex II 

Fiscal Agent has the meaning provided in Part E of Annex 1 

Goal Indicators has the meaning provided in paragraph 3(a) of Annex III 

GRN means the Govemment of the Republic of.Vamibia. 

HAMU has the meaning provided in Part B of Annex 1 

Implementation Letter has the meaningprovided in Section 3.5. 

Implementing Entity has the meaning provided Part E of Annex 1 

Implementing Entity Agreement has the meaning provided in Part E of Annex 1 

Indicators has the meaning provided in paragraph 3(a) of Annex III 

INP has the meaning provided in of Part A of Annex 1 

INP Activity has the meaning provided in Part D of Annex 1 

INP Innovation Fund has the meaningprovided in Part D ofAllnex 1 

Inspector General has the meaning provided in Section 3.8(a). 

IPTT has the meaning provided in Part D of Annex 1 

j; Land Access and ldanagement Activity has the meaning provided ill Part D of Annex 1 ! 

Livestock 1~farket Efficiency Fund has the meaning provided in Part D of Annex 1 

Livestock Support Activity has the meaning provided in Part D ofAnl1ex I. 

M&E Annex has the meaning provided in Annex III 

M&E Plan has the meaning provided in Annex III 

Marketing Activity has the meaning provided in Part C of Annex 1 

MeA Act has the meaning provided in Section 2.2(a). 

MCA-Namibia has the meaning provided in Section 3.2(bj. 

MCA-Namibia Procurement Rules has the meaning provided in Section 3.6. 

ANNEX V -2 
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M'CC has the meaning provided in the Preamble. 

M'CC Environmental Guidelines has the meaning provided in Section 2.7 (c). 

MCC Funding has the meaning provided in Section 2.3. 

M~CC Gender Po/icy has the meaning provided of Part A of Annex I. 

MCC Website has the meaning provided in Section 2.7. 

}~loE has the meaning provided in of Part B of Annex 1 

MoF has the meaning provided in of Part C of Annex 1 

Jlonitoring Component has the meaning provided in paragraph 1 of Annex III. 

Multi-Year Financial Plan Summary has the meaning prol"ided in paragraph 1 of Annex II. 

Namibia has the meaning provided in the Preamble. 

NCAs has the meaning provided of Part A of Annex I. 

NPC has the meaning provided in Section 3.2rb). 

NPC Act has the meaning provided in Section 3.2(b). 

NT A has the meaning provided of Part B of Annex 1 

NTF has the meaning provided in Part B of Annex I. 

OMB has the meaning provided in Section 3. 8 (b). 

OP 4.12 has the meaning provided Part A of Annex I. 

Party and Parties has the meaning provided in the Preamble. 

Performance Targets has the meaning provided in Part C of Annex I. 

Permitted Account has the meaning provided in Section 2.-1. 

PPOs has the meaning provided Part D of Annex I. 

Principal Representative has the meaning provided in Section 4.2. 

Procurement Agent has the meaning provided in of Part E of Annex I. 

Program has the meaning provided in the Preamble. 

Program Funding has the meaning provided in Section 2.1. 

Program Implementation Agreement or PIA has the meaning provided in Section 3.1. 

Program Objective has the meaning provided in Section 1.2. 

ANNEX V - 3 
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Project Activity Indicators has the meaning provided in paragraph 3(a) of Annex III 

Project Objective(s) has the meaning provided in Section 1.3. 

Project Objective Indicators has the meaning provided in paragraph 3(a) of Annex III. 

Project(s) has the meaning provided in Section 6.2(b). 

Provider has the meaning provided in Section 3.7(c). 

RAP has the meaning provided in Part A of Annex I 

Resettlement means involuntary resettlement, specifically (a) the involuntary taking of land resulting in 

(i) relocation or loss of shelter; (ii) loss of assets or access to assets; or (iii) loss of income sources or 

means of livelihood, whether or not the affected persons must move to another location; or (b) the 

involuntary restriction of access to legally designated parks and protected areas resulting in adverse 

impacts on the livelihoods of the displaced persons. 

RSRC Activity has the meaning provided in Part B ofAllnex I 

RSRCs has the meaning provided in Part B of Annex I 

SEA has the meaning provided Part A of Annex I 

SPAN has the meaning provided in Part C of Annex I 

Target has the meaning provided in paragraph 3(a) of Annex III 

Taxes has the meaning provided in Section 2.8(a). 

Tertiary Education Finance Activity has the meaning provided in Part B of Annex I 

Textbook Activity has the meaning provided in Part B of Annex I 

Tourism Project has the meaning provided in Part C of Annex I 

USS means United States Dollars. 

USG means the Government of the United Slates of America. 

VET has the meaning provided in Part B of Annex I 

Vocational and Skills Training Activity has the meaning provided in Part B of Annex I 

ANNEX V-4 
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PART 1. 

ANNEX VI 

MCA-NAMIBIA PROCUREMENT RULES 

CONDUCT AND ADMINISTRATION OF PROCUREMENT 

The principles, rules and procedures agreed herein ("Procurement Rules" or "Rules") shall 

govern the conduct and administration by MCA-Namibia of the procurement of the goods, 

works, consultant and non-consultant services that need to be acquired to implement the projects 

funded under the Compact ("Project' or "Projects"). 

Section 1. A. PROCUREMENT RULES: PROCUREMENT OF GOODS, WORKS AND 

NON-CONSULTANT SERVICES 

I. INTRODUCTION 

Purpose 

1.1 The principles, rules and procedures set out in this Section I.A of these Rules shall govern . 

the conduct and administration of the procurement of the goods, works and non-consultant 

services) that need to be acquired to implement the Projects under the Compact. 

General Considerations 

1.2.1 MCA-Namibia is responsible for implementing the Projects, and therefore for selecting the 

contractors and suppliers, and awarding and subsequently administering the contracts. \\tbile in 

practice the specific procurement rules and procedures to be followed in the implementation of a 

Project depend on the circumstances of the particular case, the following four considerations (the 

"Procurement Principles") are agreed to generally guide the application of these Rules:2 

(a) Open, fair and competitive procedures used in a transparent manner to solicit, award and 

administer contracts to procure goods, works and non-consultant services; 

(b) Solicitations for goods, works and non-consultant services shall be based upon a clear and 

accurate description of the goods, works or non-consultant services to be acquired; 

(c) Contracts shall be awarded only to qualified and capable suppliers and 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 

(d) 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, works and non-consultant 

servIces. 

I References to "goods" and "works" in these Rules include related services such as transportation, insurance, 

installation, commissioning, training, and initial maintenance. "Goods" includes commodities, raw materials, 

machinery. equipment. and industrial plants. The provisions of these Rules also apply to services which are bid and 

contracted on the basis of performance of a measurable physical output, such as drilling, mapping. and similar 

operations. The Rules governing consultant services are set out below at Section 1.B. 

~ These four principles are set out in Section 3.6 of the Compact. 

- - -.- - .- ~ ... --.. " - . __ ... - --- ----~ _. ~ ~ .... , - - -.. -,_.- - ._.- ~~ ... "-'---~ .. ~.~---".-.""",~.,- ••• "~--' .~-"~"-"" ~,~ ~~-.- ~-,.----.,,-,,--~- "'--~,-~~-~-.--~~-- '. >" ~ .. -'"">~-' ,,"' ..... -.... ~., ~.-~ 
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1.2.2 MCA-Namibia shall ensure that all the procurements for goods, works and non-consultant 

services in furtherance ofthe Compact and funded in whole or in part, directly or indirectly, with 

MCC funding shall comply with these Procurement Principles. 

1.3 A competitive bidding process ("Competitive Bidding" or "CB") shall serve as the standard 

for all procurements for all MCC-funded goods, works, and non-consultant services conducted in 

accordance with these Rules as set out in Sub-Section I.A.II below, except in those instances 

where MCC and MCA-Namibia agree to pursue other methods of procurement. 

Sub-Section I.A.III describes these other methods of procurement and the circumstances under 

which their application would be more appropriate. The particular methods to be followed for 

procurements under the Compact shall be set out in Procurement Plans approved by MCC. 

1.4 Reserved 

Applicability of Section 1.A of these Rules 

1.5 The procedures outlined in this Section LA of these Rules apply to all contracts for goods. 

works and non-consultant services funded by MCC under the Compact.3 

Eligibility 

1.6 To foster competition MCC permits firms and individuals from almost all countries4 to offer 

goods, works, and non-consultant services for MCC-funded Projects. Any conditions for 

participation shall be limited to those that are essential to ensure the firm's capability to fulfill 

the contract in question. 

1.7 In connection with any MCC-funded contract, MCA-Namibia shall nQt deny pre- or postqualification to a firm for reasons unrelated to its capability and resources to perform the contract 

successfully; nor shall MCA-Namibia disqualify any bidder for such reasons. Consequently, 

MCA-Namibia should carry out due diligence on the legal, technical and financial qualifications 

of bidders to be assured of their capabilities in relation to the specific contract. 

1.8 As exceptions to the foregoing: 

(a) Firms of a country or goods manufactured in a country may be excluded if, (i) as a matter of 

law or official regulation, the Republic of Namibia prohibits commercial relations with that 

country, provided that MCC is satisfied that such exclusion does not preclude effective 

competition for the supply of goods or works required, or (ii) by an act of compliance with a 

decision of the United Nations Security Council taken under Chapter VII of the Charter of the 

United Nations, the Republic of Namibia prohibits any import of goods from, or payments to, a 

particular country, person, or entity. Where the Republic of Namibia prohibits payments to a 

particular firm or for particular goods by such an act of compliance, that firm may be excluded. 

3 This includes those cases where MCA-Namibia employs an independent procurement agent, but excludes tenders 

awarded by MCC under its own procurement rules. 

4 Finns and individuals from any country subject to sanction or restriction by law or policy of the United States are 

not eligible to compete for MCC-funded contracts. See Paragraph 1.8(e) of Section I.A of these Rules. 

ANNEX VI-2 - -- --------.~~.-----.- . - ------_._._--- ,~~,,,,,.,,,,,,,,- __ ~_ .... ~_. '--. ~.,_" ..... _." .'~' •• " _ ,. __ ~ ev __ ~ • ~ ,~ •• __ ~.~ .. _. _~'¥ ....... "" ,, ____ •• -<-~ __ • _ ..... ~- •• ~_.~. ~".' ~"*. ~.~ •• ~ .• ~._" .. ___ ~ ...... __ ,. _.1.··'_ ..... ~ __ •.. ,_ ... ""., ... ~_ .. ___ ...,<_, .. _> .. ,. .. ~_~ _,,,,,",_ ..... _~. ____ ... .~ .. ~ ... _~ ~~--.. -...-
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(b) A finn which has been engaged to provide consultant services for the preparation or 

implementation of a Project, and any of its affiliates, shall be disqualified from subsequently 

providing goods, works, consultant or non-consultant services resulting from or directly related 

to the finn's consultant services for such preparation or implementation. This provision does not 

apply to the various finns (consultants, contractors, or suppliers) which together are perfonning 

the contractor's obligations under a turnkey or design and build contract. 5 

(c) Government-o\\ned enterprises in the Republic of Namibia may participate if they are 

receiving no state subsidy and can demonstrate that they do not receive a cross-subsidy of 

income as a result of statutory powers.

6 

(d) A finn declared ineligible through MCC's Excluded Parties Verification procedures located 

at http://w\\w.mcc.gov/documents/mcc-ppg-eligibilityverification.pdf shall be ineligible to be 

awarded an MCC-funded contract. This would also remove from eligibility any procurement 

from a country or from a finn that is organized in or has its principal place of business or a 

significant portion of its operations in any country that is subject to sanction or restriction by law 

or policy of the United States. 7 

Advance Contracting and Retroacth:e Financing 

1.9 The process of identifying and selecting contractors for the provision of goods, works or non"-

consultant services to implement projects funded under the Compact before the Compact enters 

into force is referred to as advance contracting. Similarly, payments made under a contract that 

is signed prior to the Compact entering into force for which MCA-Namibia would seek 

reimbursement from MCC is known as retroactive financing. MCA-Namibia \\111 not engage in 

any advance contracting or be entitled to any retroactive financing, without the prior approval of 

MCC. 

Joint Ventures 

1.10 Any finn may bid independently or in joint venture confinning joint and several liability, 

with domestic finns and/or with foreign finns, but MCC does not accept conditions of bidding 

which require mandatory joint ventures or other fonns of mandatory association between finns. 

~ICC Re"'iew 

1.11 MCC shall be entitled to review MCA-Namibia procurement procedures, documents, bid 

evaluations, award recommendations, and contracts to ensure that the procurement process is 

carried out in accordance with the agreed procedures. These review procedures are described in 

Attachment 1 of these Rules. 

'lisprocurement 

1.12 MCC does not fund expenditures for goods, works and non-consultant services which have 

not been procured in accordance with the agreed provisions as detailed in the Compact, these 

5 See Paragraph 2.5 of Section I.A of these Rules. 

o Other than Force Account units. as permitted under Paragraph 3.8 of Section I.A of these Rules. 

7 As of July 2008, this list includes Cuba, Iran, North Korea, Sudan and Syria. 

Al\;-";EXVI -3 

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Rules and the approved Procurement Plans.8 In such cases, MCC will declare misprocurement, 

and may cancel that portion of the Compact allocated to the goods, works or non-consultant 

services that have been misprocured if corrective measures satisfactory to MCC are not taken. 

MCC may, in addition, exercise other remedies provided for under the Compact. Even once the 

contract is awarded after obtaining an approval from MCC, MCC may still declare 

misprocurement if it concludes that the approval was issued on the basis of incomplete, 

inaccurate, or misleading information furnished by MCA-Namibia or the terms and conditions of -

the contract had been modified without MCC approval. 

References to ~ICC 

1.13 MCA-Namibia shall use the following language when referring to MCC in procurement 

documents: 

The United States of America, acting through the lo.1illennium Challenge Corporation ("}.1CC'') 

and the Republic of Namibia (the "Government") have entered into a Alillennium Challenge 

Compact for Millennium Challenge Account assistance to help facilitate poverty reduction 

through economic growth in the Republic of Namibia (the "Compact") in the amount of [Insert 

amount of Compact] US$ ("JICC Funding'') .• \lCA-Namibia on behalf of the Government 

intends to apply a portion of the proceeds oj.\lCC Funding to eligible payments under this 

contract. Payments by MCA-.Vamibia will be subject, in all respects, to the terms and 

conditions, including restrictions on the use of MCC Funding, of the Compact . ..vo party other 

than the Government and MCA-Namibia shall derive any rights from the Compact or have any 

claim to the proceeds ofA/CC Funding. 

Fraud and Corruption 

1.14 MCC requires that all beneficiaries ofMCC funding, including MCA-Namibia and any 

bidders, suppliers, contractors, and subcontractors under any MCC-funded contracts observe the 

highest standards of ethics during the procurement and execution of such contracts. In pursuance 

of this policy, the following provisions shall apply. 

(a) For the purposes of these provisions, the terms set forth below are defined as follows: 

(i) "corrupt practice" means the offering, giving, receiving, or soliciting, directly or indirectly, of 

anything of value to influence the actions of a public official (including MCA-Namibia and 

MCC staff and employees of other organizations taking or reviewing selection decisions) in the 

selection process or in contract execution or the making of any payment to any third party, in 

connection with or in furtherance of a contract, in violation of (aa) the United States Foreign 

Corrupt Practices Act of 1977, as amended (15 USC 78a et seq.) ("FCPA"), or any other actions 

taken that otherwise would be in violation of the FCP A if the FCP A were applicable, or (bb) any 

applicable law in the Republic of Namibia; 

(ii) "fraudulent practice" means any act or omission, including any misrepresentation, in order to 

influence (or attempt to influence) a selection process or the execution of a contract to obtain a 

financial or other benefit, or to avoid (or attempt to avoid) an obligation; 

8 See Paragraphs 1.16.1. 1.16.2 and 1.16.3 of Section I.A of these Rules. 

A}.j"NEX VI - 4 

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(iii) "collusive practice" means a scheme or arr~gement between two or more parties, with or 

without the knowledge of MCA-Namibia, designed to establish prices at artificial, 

noncompetitive levels or to otherwise deprive MCA-Namibia of the benefits offree and open 

competition; 

(iv) "coercive practice" means impairing or harming or threatening to impair or harm, directly or 

indirectly, persons or their property, to influence their participation in a procurement process, or 

affect the execution of a contract; 

(v) "obstructive practice" means: 

(aa) destroying, falsifying, altering or concealing of evidence material to the investigation or 

making false statements to investigators in order to impede an investigation into allegations of a 

corrupt, fraudulent, coercive, collusive, or prohibited practice; and threatening, harassing, or 

intimidating any party to prevent it from disclosing its knowledge of matters relevant to the 

investigation or from pursuing the investigation; and 

(bb) acts intended to impede the exercise of the inspection and audit rights of MCC provided 

under the Compact; and 

(vi) "prohibited practice" means any action that violates Section E (Compliance with AntiCorruption Legislation), Section F (Compliance with Anti-Money Laundering Legislation) and 

Section G (Compliance with Terrorist Financing Statutes and Other Restrictions) of the "General 

Provisions Annex" that will be made a part of MCC-funded contracts and may be found on the 

MCC website at http://www.mcc.gov/guidance/compactJgeneral~rovisions.pdf. 

(b) MCA-Namibia will reject a bid (and MCC will deny approval of a proposal for contract 

award) if it determines that the bidder recommended for award has, directly or through an agent, 

engaged in corrupt, fraudulent, collusive, coercive, obstructive or prohibited practices in 

competing for the contract in question. 

(c) MCC and MCA-Namibia have the right to sanction a bidder, supplier, contractor, or 

subcontractor, including declaring such party ineligible, either indefinitely or for a stated period 

of time, to be awarded an MCC-funded contract if at any time either MCA-Namibia or MCC 

determines that the bidder, supplier, contractor, or subcontractor has, directly or through an 

agent, engaged in corrupt, fraudulent, collusive, coercive, obstructive or prohibited practices in 

competing for, or in executing, such a contract. 

(d) MCC and MCA-Namibia have the right to require that a provision be included in 

solicitation documents and in MCC-funded contracts requiring a bidder, supplier, contractor, or 

subcontractor to permit MCA-Namibia, MCC, or any designee ofMCC, to inspect its accounts, 

records and other documents relating to the submission of a bid or performance of a MCCfunded contract and to have them audited by auditors appointed by MCC or MCA-Namibia with 

the approval ofMCC. 

(e) MCC has the right to cancel the portion ofMCC funding allocated to a contract ifit 

determines at any time that representatives of a beneficiary of the MCC funding engaged in 

corrupt, fraudulent, collusive, coercive, obstructive or prohibited practices during the selection 

A;-"~EX VI - 5 - ---- ----_ .. _ .. _-- .. -.'~--- --_.----.. - -. -- --.~---

_, _ _ __> ___ ~ __ " ,_._, __ ,_~,_"~ ~ __ ~ •• ~., _." __ , .. ,, __ .~ _ ~_~_'~"._~ "w, ~ "._~, ___ • ..'. __ ... _,~..,,~ 0"_" .... _,=- .,., ", " __ .~"._ .. _ "_~~¥~'._ .. _". '" .~_~_ •. ~~._.~~~ ~~_ 
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process or the execution of a MCC-funded contract, without MCA-Namibia having taken timely 

and appropriate action satisfactory to MCC to remedy the situation. 

1.15 To the extent required by Namibian law, MCA-Namibia shall introduce, into bid forms for 

large contracts funded by MCC, an undertaking of the bidder to observe, in competing for and 

executing a contract, the country's laws against fraud and corruption (including bribery), as 

listed in the solicitation documents. In the event such an undertaking is not required by 

Namibian law, MCA-Namibia may introduce the undertaking with the approval ofMCC. 

Procurement Plan 

1.16.1 MCA-Namibia shall prepare periodic procurement plans, that are updated at least semiannually, for acquiring goods, works and non-consultant services needed to implement the 

Compact (each a "Procurement Plan"). Each Procurement Plan shall be adopted by the 

governing body of MCA-Namibia and shall be submitted to MCC for its approval. Each 

Procurement Plan9

, typically covering a six (6) month period, (a) lists the particular contracts for 

the goods, works, and/or non-consultant services required to implement the Compact for the 

period covered in such Procurement Plan; (b) identifies the proposed method of procurement for 

such contracts as determined according to these Rules; and (c) sets forth the estimated value for 

each contract. 

1.16.2 MCA-Namibia shall ensure that all goods, works and non-consultant services shall be 

procured using the procurement method approved in each Procurement Plan. Compliance, 

satisfactory to MCC, with the approved Procurement Plan shall be a condition precedent to MCC 

Disbursements or payments. 

1.16.3 MCA-Namibia shall not initiate any procurement action that is a substantial deviationlO 

from the applicable adopted and approved Procurement Plan without the prior approval ofMCC. 

If MCA-Namibia determines that such a deviation is necessary or appropriate, MCA-Namibia 

shall submit a request to MCC for its approval of an amended Procurement Plan. If approved by 

MCC, MCA-Namibia shall comply with any instructions contained in the MCC approval, 

including any publication requirements. Any substantial deviation from a Procurement Plan as 

approved and adopted shall be submitted to the governing body of MCA-Namibia for adoption 

of the amended Procurement Plan. 

9 When consultant services also need to be procured, the Procurement Plan must also include such procurements in 

accordance with the requirements at Section I.B Par. 1.24 of these Rules. 

10 A "substantial deviation" is a change that adds a procurement action or actions that have a cumulative value of 

$ I 0,000 or more, changes the procurement method, significantly increases or decreases the budget, or increases the 

budget allocations above the threshold for the designated method of procurement or selection procedure. 

A1'<"NEX VI - 6 _ ... 

• _, ~~-' -" -~ .. " • "~~'-""-',,", ... ,- ... ,~,~.- ~ ~ •• -.~--.~ ~ .... " ~<.~ ~ "._,,'" , 
II. COMPETITIVE BIDDING 

A. General 

Introduction 

2.1 The objective of Competitive Bidding, as described in these Rules, is to provide all eligible 

prospective bidders!! with timely and adequate notification of MCA-Namibia's requirements and 

an equal opportunity to bid for the required goods, works and non-consultant services. 

Type and Size of Contracts 

2.2 The solicitation documents shall clearly state the type of contract to be entered into and 

contain the proposed contract provisions appropriate for the type of contract to be used. 

Reimbursable cost contracts are acceptable to MCC only in exceptional circumstances such as 

conditions of high risk or where costs cannot be determined in advance with sufficient accuracy. 

Such contracts shall include appropriate incentives to limit costs and shall reference MCC Cost 

Principles ("MCC Cost Principles") found at the MCC website, \\-\\-w.mcc.gov. Requirements 

contracts, indefinite delivery- indefinite quantity ("IDIQ") contracts and blanket purchase 

agreements may also be used. 

2.3 The size and scope of individual contracts will depend on the magnitude, nature, and location 

of the Project. For Projects requiring a variety of goods and works, separate contracts generally 

are awarded for the supply and/or installation of different items of equipment and plant12 and for 

the works. 

2.4 For a Project requiring similar but separate items of goods or works, bids may be invited I. under alternative contract options that would attract the interest of both small and large firms 

! which could be allowed, at their option, to bid for individual contracts (slices) or for a group of 

similar contracts (package). All bids and combinations of bids shall be received by the same 

deadline and opened and evaluated simultaneously so as to determine the bid or combination of 

bids offering the lowest evaluated cost to MCA-Namibia. 13 

2.5 In certain cases a turnkey contract may be required under which the design and engineering, 

the supply and installation of equipment, and the construction of a complete facility or works are 

provided under one contract. Alternatively, MCA-Namibia may remain responsible for the 

design and engineering, and invite bids for a single responsibility contract for the supply and 

installation of all goods and works required for the Project component. Design and build, and 

management . lb' !4 contractmg contracts maya so e appropnate. 

Two-Stage Bidding 

2.6 In the case of turnkey contracts or contracts for large complex facilities or works of a special 

nature, or complex information and communication technology, it may be undesirable or 

11 See Paragraphs 1.6. 1.7 and 1.8 of Section LA of these Rules. 

12 For purposes of these Rules, "plant" refers to installed equipment, as in a production facility. 

13 See Paragraphs. 2.49 - 2.54 of Section I.A of these Rules for the bid evaluation procedures. 

1~ Also see Paragraphs 3.14 and 3.15 of Section I.A of these Rules for performance-based contracting. 

A;\IN"EXVI-7 
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impractical to prepare complete technical specifications in advance. In such a case, a Two-Stage 

Bidding procedure may be used, under which first un-priced technical proposals on the basis of a 

conceptual design or performance specifications are invited, subject to technical as well as 

commercial clarifications and adjustments, to be followed by amended bidding documents I 5 and 

the submission of final technical proposals and priced bids in the second stage. 

Notification and AdYertising 

2.7 On at least a semi-annual basis, MCA-Namibia shall publicize the procurements planned for 

the upcoming period as identified in the adopted Procurement Plan, which was approved by 

MCC (each a "General Procurement Notice"). The General Procurement Notice shall be in a 

form acceptable to MCC and include information derived from the Procurement Plan and the 

name, telephone (or fax) number, and email and postal address of MCA-Namibia agent 

responsible for procurement and the address ofthe website(s) where Specific Procurement 

Notices will be posted. If knO\\TI, the scheduled date for availability of solicitation documents 

for each procurement (including prequalification or bidding documents) should be indicated. 

Such solicitation documents shall not be released to the public earlier than the date of publication 

of the General and Specific Procurement Notices. The General Procurement Notice shall be 

advertised in a manner to provide reasonable notice of planned procurements to potential 

suppliers and contractors. Advertisement of the General Procurement Notice shall include 

posting in English at MCA-Namibia's website (or such other appropriate website designated by 

MCA-Namibia and approved by MCC), the Development Gateway Market website at 

\\ww.dgmarket.com ("dgMarkef') and the United Nations Development Business online website 

at www.devbusiness.com( .. UNDBOnline·lI6 MCA-Namibia shall also publish the General 

Procurement Notice in a newspaper of wide circulation in the Republic of Namibia and in such 

other media outlets as appropriate or as requested from time to time by MCC. 

2.8 Invitations to prequalify or to bid, as the case may be, shall be advertised as Specific 

Procurement Notices (each, a "Specific Procurement Notice"). For contracts for Goods and 

Non-consulting services valued at or over US$200,000 and contracts for Works valued at or over 

US$l,OOO,OOO, such invitations shall be published in at least one newspaper of national 

circulation in the Republic of Namibia, posted on MCA-Namibia's website (or such other 

appropriate website designated by MCA-Namibia and approved by MCC) and at dgMarket 

website and UNDB Online. Publication in local print and broadcast and other national and 

international media is encouraged as long as the posting does not pre-date the required postings. 

For contracts for Works valued at or over US$200,000 and under US$l,OOO,OOO, such invitations 

shall be published in at least one newspaper of national circulation in the Republic of Namibia 

and posted on MCA-Namibia's website (or such other appropriate website designated by MCANamibia and approved by MCC). The text ofthe notice may be subject to prior approval by 

MCC. Notification shall be given in sufficient time to enable prospective bidders to obtain 

prequalification or bidding documents and prepare and submit their responses taking into 

15 In revising the bidding documents in the second stage MCA-Namibia should respect the confidentiality of the 

bidders' technical proposals used in the first stage, consistent with requirements of transparency and intellectual 

property rights. 

16 UNDB is a publication of the United Nations. Subscription information is available from: Development Business, 

United Nations, GCPO Box 5850. New York, NY 10163-5850, USA (Website: www.devbusiness.com; e-mail: 

dbsubscribe@un.org); Development Gateway Market is an electronic portal of Development Gateway Foundation, 

1889 F Street, N.W. Washington, DC 20006, USA (Website: www.dgmarket.com). 

A]\;"NEX VI - 8 

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consideration the estimated value of the contract and period of advance notice given with the 

General Procurement Notice. I 7 

Prequalification of Bidders 

2.9 Prequalification is usually necessary for large or complex works, or in any other 

circumstances in which the high costs of preparing detailed bids could discourage competition, 

such as custom designed equipment, industrial plants, specialized services, some complex 

information and technology and contracts to be let under turnkey, design and build, or 

management contracting. This also ensures that invitations to bid are extended only to those who 

have adequate capabilities and resources. Prequalification shall be based entirely upon the 

capability and resources of prospective bidders to perform the particular contract satisfactorily, 

taking into account their (a) experience and past performance on similar contracts, (b) 

capabilities with respect to personnel, equipment, and construction or manufacturing facilities, 

and (c) financial position. 

2.10 The invitation to prequalify for bidding on specific contracts or groups of similar contracts 

shall be advertised as described in Paragraphs 2.7 and 2.8 above. The scope of the contract and a 

clear statement of the requirements for qualification shall be sent to those who responded to the 

invitation. All such applicants that meet the specified criteria shall be allowed to bid. MCANamibia shall inform all applicants ofthe results of prequalification. As soon as prequalification 

is completed, the bidding documents shall be made available to the qualified prospective bidders. 

For prequalification for groups of contracts to be awarded over a period of time, a limit for the 

number or total value of awards to anyone bidder may be made on the basis of the bidder's 

resources. The list of prequalified firms in such instances shall be updated periodically. 

Verification of the information provided in the submission for prequalification shall be 

confirmed at the time of award of contract, and award may be denied to a bidder that is judged 

no longer to have the capability or resources to perform the contract successfully. 

B. Bidding Documents 

General 

2.11 The bidding documents shall furnish all information necessary for a prospective bidder to 

prepare a bid for the goods, works and non-consultant services to be provided. While the detail 

and complexity of these documents may vary with the size and nature of the proposed bid 

package and contract, they generally include: invitation to bid; instructions to bidders; form of 

bid; form of contract; conditions of contract, both general and special; specifications and 

drawings; relevant technical data (including of geological and environmental nature); list of 

goods or bill of quantities; delivery time or schedule of completion; and necessary appendices, 

such as formats for various securities. The basis for bid evaluation and selection of the lowest 

evaluated bid shall be clearly outlined in the instructions to bidders and/or the specifications. If a 

fee is charged for the bidding documents, it shall be reasonable and reflect only the cost of their 

printing and delivery to prospective bidders, and shall not be so high as to discourage qualified 

bidders. MCA-Namibia may use an electronic system to distribute bidding documents, provided 

that MCC is satisfied with the adequacy of such system. If bidding documents are distributed 

electronically, the electronic system shall be secure to avoid modifications to the bidding 

17 Also see Paragraph 2.44 of Section I.A of these Rules. 

Ai'<"NEX VI - 9 
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documents and shall not restrict the access of bidders to the bidding documents. Guidance on 

critical components of the bidding documents is given in the following paragraphs. 

2.12 MCA-Namibia shall use the appropriate Standard Solicitation Documents, including the 

Standard Bidding Documents, as approved by MCC pursuant to Part 3 of these Rules, and as 

may be modified to address Project-specific conditions, subject to approval by MCC when the 

change is material. To the extent possible, such changes shall be introduced through bid or 

contract data sheets or through special conditions of contract, and not by introducing changes in 

the standard wording of MCA-Namibia's Standard Solicitation Documents. 

Validity of Bids and Bid Security 

2.13 Bidders shall be required to submit bids valid for a period specified in the bidding 

documents which shall be sufficient to enable MCA-Namibia to complete the comparison and 

evaluation of bids, review the recommendation of award 'With MCC (if required), and obtain all 

the necessary approvals so that the contract can be awarded within that period. 

2.14 MCA-Namibia has the option of requiring a bid security. When used, the bid security shall 

be in the amount and form specified in the bidding documents 18 and shall remain valid for a 

sufficient time beyond the validity period of the bids, in order to provide reasonable time for 

MCA-Namibia to act ifthe security is to be called. Bid security shall be released to unsuccessful 

bidders once the contract has been signed with the winning bidder. In place of a bid security, 

MCA-Namibia may require bidders to sign a declaration accepting that if they withdraw or 

modify their bids during the period of validity or they are awarded the contract and they fail to 

sign the contract or to submit a performance security before the deadline defmed in the bidding 

documents, the bidder 'Will be suspended for a period of time from being eligible for bidding in 

any contract with MCA-Namibia. 

Language 

2.15.1 All advertisements for contracts and notices of contract awards whether posted at MCANamibia's website, at dgMarket, or UNDB Online shall be posted in English. 

2.15.2 For all contracts, the solicitation documents as well as the documents responding to these 

solicitations, including the proposals, shall be prepared in English. All contracts shall be written 

in English and this language shall govern contractual relations between MCA-Namibia and the 

contractor. 

Clarity of Bidding Documents 

2.16 Bidding documents shall be so worded as to permit international competition and shall set 

forth clearly and precisely the work to be carried out, the location of the work, the goods to be 

supplied, the place of delivery or installation, the schedule for delivery or completion, minimum 

performance requirements, and the warranty and maintenance requirements, as well as any other 

18 The fonnat of the bid security shall be in accordance with what was approved by MCC with its approval of MCANamibia"s Standard Bidding Documents and shaH be issued by a reputable bank or financial institution selected by 

the bidder. If the institution issuing the security is located outside the Republic of NamibilL it shall have a 

correspondent financial institution located in the Republic of Namibia to make it enforceable. 

A1\I'NEX VI - 10 

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pertinent tenns and conditions. In addition, the bidding documents, where appropriate, shall 

define the tests, standards, and methods that will be employed to judge the confonnity of 

equipment as delivered, or works as perfonned, with the specifications. Drawings shall be 

consistent with the text of the specifications, and an order of precedence between the two shall 

be specified. 

2.17 The bidding documents shall specify any factors, in addition to price, which will be taken 

into account in evaluating bids, and how such factors will be quantified or otherwise evaluated. 

If bids based on alternative designs, materials, completion schedules, etc., are pennitted, 

conditions for their acceptability and the method of their evaluation shall be expressly stated. 19 

2.18 All prospective bidders shall be provided the same infonnation, and shall be assured of 

equal opportunities to obtain additional infonnation on a timely basis. MeA-Namibia shall 

provide reasonable access to Project sites for visits by prospective bidders. For works or 

complex supply contracts, particularly for those requiring refurbishing existing works or 

equipment, a pre-bid conference may be arranged whereby potential bidders may meet with 

representatives of MCA-Namibia to seek clarifications (in person or online). Minutes of the 

conference shall be provided to all prospective bidders with a copy included in the record of the 

procurement. Any additional infonnation, clarification, correction of errors, or modifications of 

bidding documents shall be sent to each recipient of the original bidding documents in sufficient 

time before the deadline for receipt of bids to enable bidders to take appropriate actions. If 

necessary, the deadline shall be extended. MCC shall receive a copy of modifications to the 

bidding documents and be consulted for issuing its approval when the contract is subject to prior 

review by MCC. 

Standards 

2.19 Standards and technical specifications quoted in bidding documents shall promote the 

broadest possible competition, while assuring the critical perfonnance or other requirements for 

the goods and/or works under procurement. As far as possible, MCA-Namibia shall specify 

internationally accepted standards such as those issued by the International Standards 

Organization with which the equipment or materials or workmanship shall comply. \\There such 

international standards are unavailable or are inappropriate, national standards may be specified. 

In all cases, the bidding documents shall state that equipment, material, or workmanship meeting 

other standards, which promise at least substantial equivalence, will also be accepted. 

Use of Brand Names 

2.20 Specifications shall be based on relevant characteristics and/or perfonnance requirements. 

References to brand names, catalog numbers, or similar classifications shall be avoided. If it is 

necessary to quote a brand name or catalog number of a particular manufacturer to clarify an 

otherwise incomplete specification, the words ·'or equivalent" shall be added after such· 

reference. The specification shall pennit the acceptance of offers for goods which have similar 

characteristics and which provide perfonnance at least substantially equivalent to those specified. 

19 See §2.52. 

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Pricing 

2.21 Bids for goods shall be invited on the basis of (a) CIp20 for all goods manufactured abroad, 

including those previously imported, and (b) EXW21 for goods manufactured or assembled in the 

Republic of Namibia, plus the cost of inland transportation and insurance to the place of 

destination, subject to any modifications set forth in the solicitation documents. Bidders shall be 

allowed to arrange for ocean and other transportation and related insurance from any eligible 

source.

22 Where installation, commissioning, or other similar services are required to be 

performed by the bidder, as in the case of "supply and installation" contracts, the bidder shall be 

required to quote for these services, in addition. 

2.22 In the case of turnkey contracts, the bidder shall be required to quote the price of the 

installed plant at site, including all costs for supply of equipment, marine and local transportation 

and insurance, installation, and commissioning, as well as associated works and all other services 

included in the scope of contract such as design, maintenance, operation, etc. 

2.23 Bidders for works contracts shall be required to quote unit prices or lump sum prices for the 

performance of the works. Bidders shall be allowed to obtain all inputs from any eligible source 

so that they may offer their most competitive bids. 

Price Adjustment 

2.24 Bidding documents shall state either (a) that bid prices will be fixed or (b) that price 

adjustments will be made to reflect any changes (upwards or do\\<nwards) in major cost 

components of the contract, such as labor, equipment, materials, and fuel. Price adjustment 

provisions might be included in contracts which extend beyond eighteen months with the 

approval of MCC. 

2.25 Prices may be adjusted by the use of a prescribed formula (or formulae) which breaks do\\<n 

the total price into components that are adjusted by price indices specified for each component 

or, alternatively, on the basis of documentary evidence (including actual invoices) provided by 

the supplier or contractor. The use of the formula method of price adjustment is preferable to 

that of documentary evidence. The method to be used, the formula (if applicable), and the base 

date for application shall be clearly defined in the bidding documents. If the payment currency is 

different from the source of the input and corresponding index, a correction factor shall be 

applied in the formula, to avoid incorrect adjustment. 

Transportation and Insurance 

2.26 Bidding documents shall permit suppliers and contractors to arrange transportation and 

insurance from any eligible source. Bidding documents shall state the types and terms of 

insurance to be provided by the bidder. The indemnity payable under transportation insurance 

shall be at least 110 percent of the contract amount denominated in United States dollars or local 

20 Refer to INCOTER..\1S 2000, published by the. International Chamber of Commerce, Cours Albert I er, 75008 

Paris, France, for definition of CIP. 

21 Refer to INCOTERMS 2000, published by the International Chamber of Commerce. Cours Albert ler, 75008 

Paris, France, for definition of EXW. 

22 See Paragraphs 1.6, 1.7 and 1.8 of Section l.A of these Rules. 

A1\~EX VI - 12 
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currency of the Republic of Namibia depending upon the currency of the contract. For works, a 

contractor's "all risk" form of policy usually shall be specified. For large Projects with several 

contractors on a site, a ''''\-Tap up" or total Project insurance arrangement may be obtained by 

MCA-Namibia, in which case MCA-Namibia shall seek competition for such insurance. 

2.27 Reserved 

Currency Provisions 

2.28 Bidding documents shall state the currency or currencies in which bidders are to state their 

prices. All bids are to be denominated and paid only in United States dollars, the local currency 

of the Republic of Namibia, or a combination of the two as stated in the bidding documents. No 

other currency is permitted. 

Currency of Bid 

2.29 The bidding documents shall caution bidders that the bid price must be expressed in the 

currency requested. The requested currency may be either United States dollars, the currency of 

the Republic of Namibia, or a combination of the two. Bids may not be requested or expressed 

in any other currency. 

2.30 Reserved 

Currency Conversion for Bid Comparison 

2.31 The bid price is the sum of all payments in United States dollars or the currency of the 

Republic of Namibia as applicable. For the purpose of comparing prices, bid prices shall be 

converted to either one of the two currencies as seleCted by MCA-Namibia and stated in the 

bidding documents. MCA-Namibia shall make this conversion by using the forward or selling 

(exchange) rates, as appropriate, for those currencies quoted by an official, public source (such 

as the Bank of Namibia), by a commercial bank or by an internationally circulated newspaper for 

similar transactions on a date selected in advance. Such source and date to be specified in the 

bidding documents, provided that the date shall not be earlier than four weeks prior to the 

deadline for the receipt of bids, nor later than the original date for the expiration of the period of 

bid validity. 

Currency of Payment 

2.32 Payment of the contract price shall be made in the currency (or currencies) as stated in the 

bidding documents. 

2.33 Reserved 

Terms and Methods of Payment 

2.34 Payment terms shall be in accordance with the international commercial practices 

applicable to the specific goods, works and non-consultant services. The contract shall provide 

for the payment of interest if payment is delayed due to the fault of MCA-Namibia or its agents 

beyond the time allowed in the contract; the rate of charges shall be specified in the contract. 

A~"NEX VI - 13 
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(a) Contracts for supply of goods shall provide for full payment on the delivery and inspection, if 

so required, of the contracted goods except for contracts involving installation, commissioning 

and testing, in which case a portion of the payment may be made after the supplier has complied 

with all its obligations under the contract. In major contracts for goods and plants, provision 

shall be made for partial payments for work done and, in contracts of long duration, for partial 

payments during the period of manufacture or assembly. 

(b) Contracts for works shall provide in appropriate cases for partial payments for work done in 

furtherance of contract performance and reasonable retention amounts to be released upon 

compliance with the contractor's obligations under contract. 

2.35 Any payment for work done in furtherance ofthe contract shall be related to the estimated 

amount of these expenses and be specified in the bidding documents. Amounts and timing of 

other payments to be made, such as for materials delivered to the site for incorporation in the 

works, shall also be specified. Payment made in advance of work done, including payment made 

upon signature ofa contract for goods or works (advance payments) requires prior approval of 

MCC and a commitment of a security guarantee or bond in the amount of the advance payment. 

The bidding documents shall specify the arrangements for any security required for advance 

payments. 

2.36 Bidding documents shall specify the payment method. Terms of payment may not be used 

as an evaluation criterion and may not affect the bid evaluation. 

Alternative Bids 

2.3 7 The bidding documents shall clearly indicate when bidders are allowed to submit alternative 

bids, how alternative bids should be submitted, how bid prices should be offered and the basis on 

which alternative bids shall be evaluated. 

Conditions of Contract 

2.38 The contract documents shall clearly define the scope of work to be performed, the goods to 

be supplied, the rights and obligations of MCA-Namibia and ofthe supplier or contractor, and 

the functions and authority of the engineer, architect, or construction manager, if one is 

employed by MCA-Namibia, in the supervision and administration of the contract. In addition to 

the general conditions of contract, any special conditions particular to the specific goods, works 

or non-consultant services to be procured and the location of the Project shall be included. 

Performance Security 

2.39 Bidding documents for works shall require a security in an amount sufficient to protect 

MCA-Namibia in case of breach of contract by the contractor. This security shall be provided in 

an appropriate form and amount, as specified by MCA-Namibia in the biddingdocument.23 The 

13The format of the performance security shall be in accordance with the Standard Bidding Documents and shall be 

issued by a reputable bank or financial institution selected by the bidder. If the institution issuing the security is 

located outside the Republic of Namibia, it shall have a correspondent financial institution located in the Republic of 

'Namibia to make it enforceable. 

AJ',"NEX VI - 14 

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amount of the security may vary, depending on the type of security furnished and on the nature 

and magnitude of the works. A portion of this security shall extend sufficiently beyond the date 

of completion of the works to cover the defects liability or maintenance period up to final 

acceptance by MCA-Namibia. 

2.40 In contracts for the supply of goods, the need for performance security depends on the 

market conditions and commercial practice for the particular kind of goods. Suppliers or 

manufacturers may be required to provide a security to protect against nonperformance of the 

contract and to cover warranty obligations. The security shall be reasonable in amount. 

Liquidated Damages and Bonus Clauses 

2.41 Provisions for liquidated damages or similar provisions in an appropriate amount shall be 

included in the conditions of contract when delays in the delivery of goods, completion of works 

or failure of the goods, works or non-consultant services to meet performance requirements 

would result in extra cost or loss of revenue or loss of other benefits to MCA-Namibia With 

prior approval of MCC, provision may also be made for a bonus to be paid to suppliers or 

contractors for completion of works or delivery of goods ahead of the times specified in the 

contract when such earlier completion or delivery would be of benefit to MCA-Namibia. 

Force Majeure 

2.42 The conditions of contract shall stipulate that failure on the part of the parties to perform 

their obligations under the contract will not be considered a default if such failure is the result of 

an event of force majeure as defined in the conditions of contract. 

Applicable Law and Settlement of Disputes 

2.43 The conditions of contract shall include provisions dealing with the applicable law and the 

forum for the settlement of disputes. Settlement of disputes shall take place in the Republic of 

Namibia with the possibility for international arbitration in the cases where the parties so agree. 

In the case of works contracts, supply and installation contracts, and turnkey contracts, the 

dispute settlement provision might also include mechanisms such as dispute review boards or 

adjudicators, which are designed to permit a speedier dispute settlement. 

C. Bid Opening, Evaluation, and Award o/Contract 

Time for Preparation of Bids 

2.44 The time allowed for the preparation and submission of bids shall be determined with due 

consideration of the particular circumstances of the Project, the magnitude and complexity of the 

contract, and the period of advanced notice provided by the General Procurement Notice. \\,'here 

large works or complex items of equipment are involved, the period shall be long enough to 

enable prospective bidders to conduct investigations before submitting their bids. In such cases, 

MCA-Namibia may convene pre-bid conferences and arrange site visits. Bidders shall be 

permitted to submit bids by mail or by hand. MCA-Namibia may also use electronic systems 

permitting bidders to submit bids by electronic means, provided MCC is satisfied with the 

adequacy of the system, including, inter alia, that the system is secure, maintains the 

confidentiality and authenticity of bids submitted, uses an electronic signature system or 

AN~EX VI- 15 

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equivalent to keep bidders bound to their bids, and only allows bids to be opened with due 

simultaneous electronic authorization of the bidder and MCA-Namibia. In this case, bidders 

shall continue to have the option to submit their bids in hard copy. The deadline and place for 

receipt of bids shall be specified in the invitation to bid. 

Bid Opening Procedures 

2.45 The time for the bid opening shall be the same as for the deadline for receipt of bids or 

promptly24 thereafter, and shall be announced, together with the place for bid opening, in the 

invitation to bid. MCA-Namibia shall open all bids at the stipulated time and place. Bids shall 

be 'opened in public; bidders or their representatives shall be allowed to be present (in person or 

online, when electronic bidding is used) and the general public, at the discretion of MCANamibia. The name of the bidder and total amount of each bid, and of any alternative bids if 

they have been requested or permitted, shall be read aloud (and posted online when electronic 

bidding is used) and recorded when opened and a copy of this record shall be sent to all bidders 

who submitted bids in time. Bids received after the time stipulated, as well as those not opened 

and read aloud at bid opening, shall not be considered. 

Clarifications or Alterations of Bids 

2.46 Except as otherwise provided in Paragraphs 2.63 and 2.64 of Section 1.A of these Rules, 

bidders shall not be requested or permitted to alter their bids after the deadline for receipt of bids. 

MCA-Namibia shall ask bidders for clarification needed to evaluate their bids but shall not ask 

or permit bidders to change the substance or price of their bids after the bid opening. Requests 

for clarification and the bidders' responses shall be made in writing, in hard copy and/or by an 

electronic system satisfactory to MCC.25 

Confidentiality 

2.47 After the public opening of bids, information relating to the examination, clarification, and 

evaluation of bids and recommendations concerning awards shall not be disclosed to bidders or 

other persons not officially concerned with this process until the publication of contract award. 

Examination of Bids 

2.48 MCA-Namibia shall ascertain whether the bids (a) meet the eligibility requirements 

specified in Paragraphs 1.6, 1.7 and 1.8 of Section LA of these Rules, (b) have been properly 

signed, (c) are accompanied by the required securities or required declaration signed as specified 

in Paragraph 2.14 of Section 1.A of these Rules, (d) are substantially responsive to the bidding 

documents, and (e) are otherwise generally in order. Ifa bid is not substantially responsive, that 

is, it contains material deviations from or reservations to the terms, conditions, and specifications 

in the bidding documents, it shall not be considered further. The bidder shall not be .germitted to 

correct or withdraw material deviations or reservations once bids have been opened.-6 

~4To allow sufficient time to take the bids to the place announced for public bid opening. 

25 See Paragraph 2.44 of Section l.A ofthese Rules. 

:6 See Paragraph 2.50 of Section l.A of these Rules regarding corrections. 

AN~EX VI - 16 - --"~-" 

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Evaluation and Comparison of Bids 

2.49 The purpose of bid evaluation is to determine the cost and benefits of each bid in a manner 

that permits a comparison to be made. Subject to Paragraph 2.58 of Section 1.A of these Rules, 

the bid best meeting the evaluation criteria and other non-price factors (including, but not limited 

to, warranties and delivery periods),27 but not necessarily the lowest submitted price, shall be 

selected for award. 

2.50 The bid price read aloud at the bid opening shall be adjusted to correct any arithmetical 

errors. Also, for the purpose of evaluation, adjustments shall be made for any quantifiable 

nonmaterial deviations or reservations. 

2.51 The evaluation and comparison of bids shall be on CIP prices for the supply of imported 

goods28 and EXW prices, plus cost of inland transportation and insurance to the place of 

destination, for goods manufactured within the Republic of Namibia, together with prices for any 

required installation, training, commissioning, and other similar services.29 

2.52 Bidding documents shall also specify the relevant factors in addition to price to be 

considered in bid evaluation and the manner in which they will be applied for the purpose of 

determining the lowest evaluated bid. For goods and equipment, other factors may be taken into 

consideration including, among others, delivery time, operating costs, efficiency and 

compatibility of the equipment, availability of service and spare parts, and related training, 

safety, and environmental benefits. The factors other than price to be used for determining the 

lowest evaluated bid shall, to the extent practicable, be expressed in monetary terms, or given a 

relative weight in the evaluation provisions in the bidding documents. 

2.53 Bid evaluation for works shall be strictly in monetary terms. Any procedure under which 

bids above or below a predetermined assessment of bid values are automatically disqualified is 

not acceptable. Iftime is a critical factor, the value of early'completion to MCA-Namibia may 

be taken into account according to criteria presented in the bidding documents, only if the 

conditions of contract provide for commensurate penalties for noncompliance and MCC has 

granted prior approval. 

2.54 MCA-Namibia shall prepare a detailed report on the evaluation and comparison of bids 

setting forth the specific reasons on which the recommendation is based for the award of the 

contract. 

Domestic Preferences 

! 2.55 Application of domestic preferences for nationality or local content shall not be permitted. 

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27 See Paragraph 2.52 of Section I ,A of these Rules_ 

~8 MCA-Namibia may ask for prices on a CIF basis (and bids compared on that same basis) only when the goods are 

carried by sea and the goods are not containerized. CIF shaIl not be used for anything other than sea transport. CIP 

can be used for any mode of transport, including sea and multimodal transport. 

~9 The evaluation of bids shall not take into account: (a) customs duties and other taxes levied on imported goods 

quoted CIP (which are excluded of custom duties): (b) sales and similar taxes levied in connection with the sale or 

delivery of the goods. 

A~EXVI-17 
Extension of Validity of Bids 

2.57 MCA-Namibia shall use best efforts to complete evaluation of bids and award of contract 

within the initial period of bid validity so that extensions are not necessary. An extension of bid 

validity, if justified by exceptional circumstances, shall be requested in writing from all bidders 

before the expiration date. The extension shall be for the minimum period required to complete 

the evaluation, obtain the necessary approvals, and award the contract. Whenever an extension 

of bid validity period is requested, bidders shall not be requested or be permitted to change the 

quoted (base) price or other conditions of their bid. Bidders shall have the right to refuse to grant 

such an extension. If the bidding documents require a bid security, bidders may exercise their 

right to refuse to grant such an extension without forfeiting their bid security, but those who are 

willing to extend the validity of their bid shall be required to provide a suitable extension of bid 

security. 

Postqualification of Bidders 

2.58 Ifbidders have not been prequalified, MCA-Namibia shall determine whether the bidder 

whose bid has been determined to best meet the evaluation criteria, subject to Section 2.49, has 

the capability and resources to effectively carry out the contract as offered in the bid. The 

criteria to be met shall be set out in the bidding documents, and if the bidder does not meet them, 

the bid shall be rejected. In such an event, MCA-Namibia shall make a similar determination 

and also confirm eligibility of the next-lowest evaluated bidder. 

Award of Contract 

2.59 MCA-Namibia.shall award the contract, within the period of the validity of bids, to the 

bidder who meets the appropriate standards of capability and resources and whose bid has been . 

determined (a) to be substantially responsive to the bidding documents and (b) to best meet the 

evaluation criteria, subject to Section 2.49.30 A bidder shall not be required, as a condition of 

award, to undertake responsibilities for work not stipulated in the bidding documents or 

otherwise to modify the bid as originally submitted. 

Publication of the Award of Contract 

2.60 After the award of contract, MCA-Namibia shall post at UNDB Online, at dgMarket and at 

MCA-Namibia's website (or such other appropriate website designated by MCA-Namibia and 

approved by MCC) the results, identifying the procurement, the name of the winning bidder and 

the price, duration, and summary scope of the contract. The same information shall be sent to all 

bidders who have submitted bids. The posting at UNDB Online and at dgMarket shall be done 

monthly and at MCA-Namibia's website (or such other appropriate website designated by MCANamibia and approved by MCC) at least weekly. The posting shall be in a format of a 

summarized table covering the previous period. All such postings shall be in English. 

30 Referred to as "lowest evaluated bidder" and "lowest evaluated bid," respectively. 

ANNEX VI - 18 -- .. _ ..... _- _." -_. -- - _._- ._. ___ ~_. ___ ._ ~~, __ ~~~._L_~'" ... __ ._- .• _._~_ .• ,.~ , _~._ .. _'.. ~".~. ~ 
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Rejection of All Bids 

2.61 Bidding documents usually provide that MCA-Namibia may reject all bids. Rejection of all 

bids is justified when there is lack of effective competition, or bids are not substantially 

responsive or when bid prices are unreasonable or are substantially higher than existing budget. 

Lack of competition shall not be determined solely on the basis of the number of bidders. Even 

when only one bid is submitted, the bidding process may be considered valid if the bid was 

satisfactorily advertised and prices are reasonable in comparison to market values. MCANamibia may, after approval by MCC, reject all bids. If all bids are rejected, MCA-Namibia 

shall review the causes justifying the rejection and consider making revisions to the conditions of 

contract, design and specifications, scope of the contract, or a combination of these, before 

inviting new bids. 

2.62 If the rejection of all bids is due to lack of competition, wider advertising shall be 

considered. If the rejection is due to most or all of the bids being non responsive, new bids may 

be invited from the initially prequalified firms, or with approval of MCC from only those that 

submitted bids in the first instance. 

2.63 All bids shall not be rejected and new bids invited on the same bidding and contract 

documents solely for the purpose of obtaining lower prices. If the lowest evaluated responsive 

bid exceeds MCA-Namibia pre-bid cost estimates by a substantial margin, MCA-Namibia shall 

investigate causes for the excessive cost and consider requesting new bids as described in the 

previous paragraphs. Alternatively, MCA-Namibia may negotiate with the lowest evaluated 

bidder to try to obtain a satisfactory contract through a reduction in the scope and/or a 

reallocation of risk and responsibility which can be reflected in a reduction of the contract price. 

However, substantial reduction in the scope or modification to the contract documents generally 

will require rebidding. 

2.64 The prior approval ofMCC shall be obtained before rejecting all bids, soliciting new bids, 

or entering into negotiations with the lowest evaluated bidder. Within two weeks of the rejection 

of all bids, MCA-Namibia shall post at dgMarket and MCA-Namibia's website (or such other 

appropriate website designated by MCA-Namibia and approved by MCC) notification of the 

cancellation of the procurement. The notification shall identify the procurement and state briefly 

the reason for cancelling the procurement. The same information shall be sent to all bidders who 

have submitted bids. All such po stings shall be in English. 

Debriefing 

2.65 The bidding documents shall specify that any bidder who wishes to ascertain the grounds on 

which its bid was not selected, may request an explanation from MCA-Namibia. MCA-Namibia 

shall promptly provide an explanation of why such bid was not selected, either in writing and/or 

in a debriefing meeting, at the option ofMCA-Namibia. The requesting bidder shall bear all the 

costs of attending such a debriefing. 

D. Modified CB 

2.66 Reserved 

2.67 Reserved 

A~)JEX VI - 19 

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Procurement of Commodities 

2.68 Market prices of commodities, such as grain, animal feed, cooking oil, fuel, fertilizer, and 

metals, fluctuate depending upon the demand and supply at any particular time. Many are 

quoted in established commodity markets. Procurement often involves multiple awards for 

partial quantities to assure security of supply and multiple purchases over a period of time to take 

advantage of favorable market conditions and to keep inventories low. A list of prequalified 

bidders may be dra\\-n up to whom periodic invitations are issued. Bidders may be invited to 

quote prices linked to the market price at the time of or prior to the shipments. Bid validities 

shall be as short as possible. Bid prices must be denominated and paid in either United States 

dollars or the local currency of the Republic of Namibia. The currency shall be specified in the 

bidding document. Bidding documents may permit telexed or faxed bids or bids submitted by 

electronic means, and in such cases either no bid security is required, or standing bid securities 

valid over a specified period of time have been submitted by prequalified bidders. Standard 

contract conditions and forms consistent with market practices shall be used. 

III. OTHER METHODS OF PROCUREMENT 

General 

3.1 This Section describes the methods of procurement that can be used where CB would not be 

the most economic and efficient method of procurement, and where other methods are deemed 

more appropriate.31 Paragraphs 3.2 to 3.7 of Section l.A of these Rules describe the generally 

used methods in descending order of preference and the remaining paragraphs describe the 

methods used in specific circumstances. 

Limited Bidding ("LB") 

3.2 Limited Bidding is essentially CB by direct invitation without open advertisement. It may be 

an appropriate method of procurement where (a) there are only a limited number of suppliers, or 

(b) other exceptional reasons may justify departure from full CB procedures. Under LB, MCANamibia shall seek bids from a list of potential suppliers or contractors broad enough to assure 

competitive prices, such list to include all suppliers or contractors when there are only a limited 

number. In all respects other than advertisement, CB procedures shall apply, including the 

publication of the contract award as indicated in Paragraph 2.60 of Section 1.A of these Rules. 

3.3 Reserved 

3.4 Reserved 

Shopping 

3.5 Shopping is a procurement method based on comparing price quotations obtained from 

several suppliers (in the case of goods) or from several contractors (in the case of civil works), 

\\iith a minimum of three, to assure competitive prices, and is an appropriate method for 

31 Contracts shall not be divided into smaller units in order to make them less attractive for CB procedures; any 

proposal to divide a contract into smaller packages shall require the prior approval of MCC. 

A?\r-;EX VI - 20 
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procuring readily available off the shelf goods or standard specification commodities of small 

value, or simple civil works of small value. (Small value is defined as procurements valued at 

less than US$200,OOO in the aggregate from one contractor). Requests for quotations shall 

indicate the description and quantity of the goods or specifications of works or non-consultant 

services. as well as desired delivery (or completion) time and place. Quotations may be 

submitted by letter, facsimile or by electronic means. The evaluation of quotations shall follow 

the same principles as of Competitive Bidding. The terms of the accepted offer shall be 

incorporated in a purchase order or brief contract. 

Direct Contracting 

3.6 Direct contracting is contracting without competition (single-source) and may be an 

appropriate method under the following circumstances: 

(a) An existing contract for goods, works or non-consultant services, awarded in accordance with 

procedures acceptable to MCC, may be extended, within reasonable limits, for additional goods, 

works or non-consultant services of a similar nature. MCC shall be satisfied in such cases that 

no advantage could be obtained by further competition and that the prices on the extended 

contract are reasonable. Provisions for such an extension, if considered likely in advance, shall 

be included in the original contract. 

(b) Standardization of equipment or spare parts, to be compatible with existing equipment, may 

justify additional purchases from the original supplier. For such purchases to be justified, the 

original equipment shall be suitable, the number of new items shall generally be less than the 

existing number, the price shall be reasonable, and the advantages of another make or source of 

equipment shall have been considered and rejected on grounds acceptable to MCC. 

(c) The required equipment is proprietary and obtainable only from one source. 

(d) The contractor responsible for a process design requires the purchase of critical items from a 

particular supplier as a condition of a performance guarantee. 

(e) In exceptional cases, such as in response to natural disasters. 

(t) The value of the contract is under US$2,OOO. 

3.7 For all procurements valued above US$2,OOO, MCA-Namibia, after the contract signature, 

shall post at MCA-Namibia's website or such appropriate website designated by MCA-Namibia 

and approved by MCC, at dgMarket and at UNDB Online the name of the contractor, price, 

duration, and summary scope of the direct contract. This publication may be done quarterly and 

I, in the format of a summarized table covering the previous period. 

A~NEX VI - 21 
Force Account 

3.8 Force Account, that is, construction by the use ofthe government's own personnel and 

equipment,32 may be the only practical method for constructing some kinds of works. The use of 

Force Account may be justified where: 

(a) quantities of work involved cannot be defined in advance; 

(b) works are small and scattered or in remote locations for which qualified construction firms 

are unlikely to bid at reasonable prices; 

(c) work is required to be carried out without disrupting ongoing operations; 

(d) risks of unavoidable work interruption are better borne by MCA Entity than by a contractor; 

and 

(e) there are emergencies needing prompt attention. 

3.9 Reserved 

Procurement Agents and Fiscal Agents 

3.10 MCA-Namibia may ",ish (or be required by MCC) to employ, as their agents, firms 

specializing in handling procurement and/or financial management services. Such agents shall 

be selected following these Rules (or such other procedures as MCC may approve) and the 

procedures set out in the RFP requesting such agent services. The procurement agent shall 

follow all the procurement procedures provided for in the Compact, any agreement supplemental 

to the Compact (each a "Supplemental Agreemenf'), and these Rules, conduct procurement in 

conformance ""ith a Procurement Plan approved by MCC, use appropriately the Standard 

Solicitation Documents as approved by MCC, follow review procedures, and properly document 

the procurement activity. Management contractors may be employed in a similar manner for a 

fee to contract for miscellaneous works involving reconstruction, repairs, rehabilitation, and new 

construction in emergency situations, or where large numbers of small contracts are involved. 

Inspection Agents 

3.11 Preshipment inspection and certification of imports is one of the safeguards MCA-Namibia 

may choose to adopt, particularly for any large import program. The inspection and certification 

usually covers quality, quantity, and reasonableness of price. Imports procured through CB 

procedures shall not be subject to price verification, but only verification for quality and 

quantity. However, imports not procured through CB may additionally be subjected to price 

verification. The inspection agents ordinarily are paid for on a fee basis levied on the value of 

the goods. 

3.l2 Reserved 

32 A government-owned construction unit that is not managerially and financially autonomous shall be considered a 

force account unit. "Force account"' is otherwise known as "direct labor," "departmental forces;' or "direct work:" 

A]I;;-";EXVI-22 
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Procurement under BOOIBOTIBOOT, Concessions and Similar Private Sector 

Arrangements 

3.13 Where MCC is participating in funding the cost ofa Project procured under a BOOIBOT/ 

BOOT,33 concessions or similar types of private sector arrangements, either of the follo\\<ing 

procurement procedures shall be used, as provided for in the Compact including the 

Supplemental Agreements and further elaborated in the Procurement Plan approved by MCC: 

(a) The concessionaire or entrepreneur under the BOO/BOT/BOOT or similar type of contract34 

shall be selected under CB procedures acceptable to MCC, which may include several stages in 

order to arrive at the optimal combination of evaluation criteria, such as the cost and magnitude 

of the financing offered, the performance specifications of the facilities offered, the cost charged 

to the user or purchaser, other income generated for MCA-Namibia or purchaser by the facility, 

and the period of the facility's depreciation; or 

(b) If the said concessionaire or entrepreneur has not been selected in the manner set forth in 

Subparagraph (a) above, the goods, works, consultant or non-consultant services required for the 

facility and to be funded by MCC shall be procured in accordance with CB procedures defined in 

Sub-Section I.A. II. 

Performance Based Procurement ("Performance Based Procuremenf' or "Output Based 

Procuremenf) 

3.14 Performance Based Procurement,35 also called Output Based Procurement, refers to 

competitive procurement processes resulting in a contractual relationship where payments are 

made for measured outputs instead of the traditional way where inputs are measured. The 

technical specifications define the desired result and which outputs will be measured including 

how they will be measured. Those outputs aim at satisfying a functional need both in terms of 

quality, quantity and reliability. Payment is made in accordance with the quantity of outputs 

delivered, subject to their delivery at the level of quality required. Reductions from payments (or 

retentions) may be made for lower-quality levels of outputs and, in certain cases, premiums may 

be paid for higher quality levels of outputs. The bidding documents do not normally prescribe 

the inputs, nor a work method for the contractor. The contractor is free to propose the most 

appropriate solution, based on mature and well proven experience and shall demonstrate that the 

level of quality specified in the bidding documents will be achieved. 

3.15 Performance Based Procurement can involve: (a) the provision of services to be paid on the 

basis of outputs; (b) design, supply, construction (or rehabilitation) and commissioning of a 

facility to be operated by MCA-Namibia; or (c) design, supply, construction (or rehabilitation) of 

a facility and provision of services for its operation and maintenance for a defined period of 

years after its commissioning.36 For the cases where design, supply and/or construction are 

33 BOO: Build, Own, Operate; BOT: Build, Operate, Transfer; BOOT: Build, Own, Operate, Transfer 

34 For projects such as toll roads, tunnels, harbors, bridges, power stations, waste disposal plants, and water 

distribution systems. 

35 The use of Performance Based Procurement in MCC funded projects should be the result of the satisfactory 

technical analysis of the different options available and should be subject to prior approval by MCC for 

incorporation into the Procurement Plan. 

36 Examples of such t)pe of procurement are: (i) for the case of procurement of services: provision of medical 

services, i.e. payments for specific services. like office visits, or detined laboratory tests, etc. : (ii) for the case of 

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required, prequalification is normally required and the use of Two-Stage Bidding as indicated in 

Paragraph 2.6 of Section l.A of these Rules will usually apply. 

3.16 Reserved 

3.17 Reserved 

APPENDIX 1: REVIEW BY MCC OF PROCUREMENT DECISIONS 

Procurement Plans 

I. MCC shall review procurement arrangements proposed by MCA-Namibia in the Procurement 

Plan for its conformity with the Compact and these Rules. MCA-Namibia shall update the 

Procurement Plan at least on a semi-annual basis. Any amendments proposed to the 

Procurement Plan shall be submitted to MCC for prior approval. 

Prior Review 

2. The thresholds for review of procurement decisions prior to award of a contract and any 

modification to such contracts are set out in Attachment 1 of these Rules. 

Post Review 

3. MCA-Namibia shall retain all documentation with respectto each contract during 

implementation of the Compact and up to five years after the expiration or termination of the 

Compact. This documentation is subject to examination by MCC, its oversight agencies and by 

its consultants and should include, but is not to be limited to, the signed original of the contract, 

the analysis of the respective proposals, recommendations for award, the record of MCC 

approvals, and the record of any bid challenge. MCA-Namibia shall also furnish such 

documentation to MCC upon request. IfMCC determines that the goods, works or nonconsultant services were not procured in accordance with the agreed procedures, as reflected in 

the Compact including the Supplemental Agreements and further detailed in the Procurement 

Plan approved by MCC, or that the contract itself is not consistent with such procedures, it may 

declare misprocurement as established in Paragraph 1.12 of Section I.A of these Rules. MCC 

shall promptly inform MCA-Namibia of the reasons for such determination. 

APPENDIX 2: 

Reserved 

APPENDIX 3: GUIDANCE TO BIDDERS 

Bidders may learn about the Millennium Challenge Corporation and its programs at 

w\\<w.mcc.gov and about the MCC program in the Republic of Namibia at the website 

procurement of a facility: Design, Procurement, Construction, and Commissioning of a thermal power plant to be 

operated by a grantee; (iii) for the case of procurement of a facility and services: Design. Procurement, Construction 

(or Rehabilitation) ofa road and operation and maintenance of the road for 5 years after construction. 

A~NEXVI -24 
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established by MCA-Namibia or such other appropriate website designed by MCA-Namibia and 

approved by MCC. 

A~NEX VI - 25 

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Section LB. PROGRAM PROCUREMENT RULES: PROCUREMENT OF 

CONSULTANTS AND CONSULTANT SERVICES 

I. INTRODUCTION 

Purpose 

1.1 The principles, rules and procedures set out in this Section 1.B of these Rules shall govern 

the conduct and administration of the procurement of the consultants and consultant services that 

need to be acquired to implement the Projects under the Compact. 

1.2 Reserved 

1.3 For the purpose of these Rules, the term consultants includes a wide variety of entities, 

including consulting firms, engineering firms, construction managers, management firms, 

procurement agents, inspection agents, auditors, multinational organizations, investment and 

merchant banks, universities, research institutions, nongovernmental organizations, and 

individuals.37 

General Considerations 

1.4.1 MCA-Namibia is responsible for implementing the Projects, and therefore for selecting the 

consultants, and awarding and subsequently administering the contracts. While in practice the 

specific procurement rules and procedures to be followed in the implementation of a Project 

depend on the circumstances of the particular case, the following Procurement Principles shall 

generally guide the application of these Rules: 

l (a) Open, fair and competitive procedures used in a transparent manner to solicit, award and 

I administer contracts to procure consultant services; 

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(b) Solicitations for consultant services shall be based upon a clear and accurate description of 

the consultant services to be acquired; 

(c) Contracts shall be awarded only to qualified and capable consultants 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 

(d) 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 the consultant services.38 

1.4.2 MCA-Namibia shall ensure that all the procurements for consultant services in furtherance 

of the Compact and funded in whole or in part, directly or indirectly, by MCC funding shall 

comply with these-Procurement Principles. 

37 See Paragraphs 3.15-3.20 of Section I.B of these Rules for particular types of consultants. Individual consultants 

are covered in Sub-Section I.B.V. 

~8 These four principles are set out in Section 3.6 of the Compact. 

Al\~EX VI - 26 
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1.5 MCC considers that, in the majority of cases, these considerations can best be addressed 

through competition among qualified finns in which the selection is based on the quality of the 

proposal and the cost of the services to be provided. Sub-Sections 1.B.II and III of these Rules 

describe the different methods of selection of consultants and the circumstances in which they 

are appropriate. Since Quality and Cost Based Selection ("'QCBS') is the most commonly 

recommended method, Sub-Section 1.B.II of these Rules describes in detail the procedures for 

QCBS. However, QCBS is not the most appropriate method of selection for all cases; therefore, 

Sub-Section 1.B.III describes other methods of selection and the circumstances in which they are 

more appropriate. 

1.6 The particular methods to be followed for the selection of consultants under the Compact 

shall be set out in the Procurement Plans. 

Applicability of Rules 

1.7 The consultant services to which Section I.B of these Rules apply are of an intellectual and 

advisory nature. This Section of these Rules does not apply to other types of services in which 

the physical aspects of the activity predominate (for example, operation and maintenance of 

facilities or plants, surveys, exploratory drilling, aerial photography, satellite imagery, and 

services contracted on the basis of perfonnance of measurable physical output).39 

1.8 Reserved 

Conflict of Interest 

1.9 Consultants shall provide professional, objective, and impartial advice and at all times hold 

the interests of MCA-Namibia paramount, without any consideration for future work, and, in 

providing advice, consultants shall avoid conflicts with other assignments and their Ov\<TI 

corporate interests. Consultants shall not be hired for any assignment that would be in conflict 

with their prior or current obligations to other clients, or that may place them in a position of 

being unable to carry out the assignment in the best interest of MCA-Namibia. Without 

limitation on the generality of the forgoing, consultants shall not be hired under the 

circumstances set forth below: 

(a) Conflict between consultant activities and procurement of goods, works or non-consultant 

services: A finn that has been engaged by MCA-Namibia to provide goods, works, or nonconsultant services for a Project, and each of its affiliates, shall be disqualified from providing 

consultant services related to those goods, works or non-consultant services. Conversely, a finn 

hired to provide consultant services for the preparation or implementation of a Project, and each 

of its affiliates, shall be disqualified from subsequently providing goods, works or non-consultant 

services resulting from or directly related to the finn's consultant services for such preparation or 

implementation. 

(b) Conflict among consultant assignments: Neither consultants (including their personnel and 

sub-consultants) nor any of their affiliates shall be hired for any assignment that, by its nature, 

may be in conflict with another assignment of the consultants. 

3~ As to these latter services, Section I.A of these Rules shall apply. 

A1'.,;\;EX VI - 27 

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(c) Relationships with MCA-Namibia staff: Consultants (including their personnel and subconsultants) that have a business or family relationship with a member of MCA-Namibia staff 

(or of the Project implementing agency's staff, or ofa beneficiary of the Compact) who are 

directly or indirectly involved in any part of: (i) the preparation of the TOR of the contract, (ii) 

the selection process for such contract, or (iii) the supervision of such contract may not be 

awarded a contract, unless the conflict stemming from this relationship has been resolved in a 

manner acceptable to MCC throughout the selection process and the execution ofthe contract. 

Unfair Competitive Advantage 

1.10 Fairness and transparency in the selection process require that consultants or their affiliates 

competing for a specific assignment do not derive a competitive advantage from having provided 

consultant services related to the assignment in question. To that end, MCA-Namibia shall make 

available to all the short-listed consultants, together with the Request for Proposals (RFP), all 

information that would in that respect give a consultant a competitive advantage. 

Eligibility 

1.11 To foster competition MCC permits firms and individuals from almost all countries40 to 

offer consultant services for MCC-funded Projects. Any conditions for participation shall be 

limited to those that are essential to ensure the firm's or individual's capability to fulfill the 

contract in question. However, 

(a) Consultants may be excluded if: (i) as a matter oflaw or official regulation, the Republic of 

Namibia prohibits commercial relations with the consultant's country, provided that MCC is 

satisfied that such exclusion does not preclude effective competition for the consultant services 

required, or (ii) by an act of compliance ~ith a decision of the United Nations Security Council 

taken under Chapter VII of the Charter of the United Nations, the Republic of Namibia prohibits 

any payments to a particular firm or person or for particular goods by such an act of compliance, 

that the firm or individual may be excluded. 

(b) Government-owned enterprises in the Republic of Namibia may participate if they are 

receiving no state subsidy and can demonstrate that they do not receive a cross-subsidy of 

income as a result of statutory powers. 

(c) As an exception to (b), government-o~ned universities or research centers may participate. 

(d) Government officials and civil servants may not be hired under consultant contracts, either as 

individuals or as members of a team of a consultant firm. 

(e) A firm declared ineligible by the World Bank for any reason, including in accordance with 

The World Bank Group Anti-Corruption policies41 shall be ineligible to be awarded a MCCfunded contract during the period of time the firm is sanctioned by The World Bank. 

40 Finns and individuals from any country subject to sanction or restriction by law or policy of the United States are 

not eligible to compete for MCC-funded contracts. See Sub-paragraph 1.1 I(f) below. 

41 For purposes of this Sub-paragraph. the relevant World Bank Group Anti-Corruption policies are set forth in the 

Guidelines On Preventing and Combating Fraud and Corruption in Projects financed by IBRD Loans and IDA 

Credits and Grants, and in the Anti-corruption Guidelines for IFC, MIGA, and World Bank Guarantee Transactions. 

AN"NEX VI - 28 

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(f) Any person or entity that has been blacklisted from participation in procurements funded with 

The World Bank assistance or debarred or suspended from participation in procurements funded 

by the United States Federal Government or otherwise prohibited by applicable United States 

law or Executive Order or United States policies, including under any then-existing anti-terrorist 

policies, shall be excluded from procurements awarded under the Compact. Without limiting the 

foregoing, this would remove from eligibility any procurement from a country or from a firm 

that is organized in or has its principle place of business or a significant portion of its operations 

in any country that is subject to sanction or restriction by law or policy of the United States.42 

Ad,'ance Contracting and Retroactive Financing 

1.12 The process of identifying and selecting consultants to implement projects funded under the 

Compact before the Compact enters into force is referred to as advance contracting. Similarly, 

payments made under a contract that is signed prior to the Compact entering into force for which 

MCA-Namibia would seek reimbursement from MCC is known as retroactive financing. MCANamibia will not engage in any advance contracting or be entitled to any retroactive financing, 

without the prior approval ofMCC. 

!, Associations between Consultants I 

1.13 Consultants may associate with each other in the form of a joint venture or of a subconsultancy agreement to complement their respective areas of expertise, strengthen the 

technical responsiveness of their proposals and make available bigger pools of experts, provide 

better approaches and methodologies, and, in some cases, to offer lower prices. Such an 

association may be for the long term (independent of any particular assignment) or for a specific 

assignment. If MCA-Namibia employs an association in the form of ajoint venture, the 

association should appoint one of the firms to represent the association; all members of the joint 

venture shall sign the contract and shall be jointly and severally liable for the entire assignment. 

Once the solicitation documents, including Requests for Proposals, are issued, any association in 

the form of joint venture or sub-consultancy among short-listed firms, if applicable, shall be 

permissible only with the approval of MCA-Namibia, unless specifically permitted in the terms 

of the Request for Proposals. MCA-Namibia shall not require consultants to form associations 

with any specific firm or group of firms. 

MCC Review, Assistance, and Monitoring 

1.14 MCC reviews the hiring of consultants by MCA-Namibia to satisfy itself that the selection 

process is carried out in accordance with the provisions of these Rules. The thresholds for MCC 

review are described in Attachment 1 of these Rules. 

1.15 MCC does not furnish a short list or a long list43 of firms or individuals to MeA-Namibia. 

However, if MCA-Namibia undertakes a shortlisting procedure before inviting proposals, the 

record of the shortlisting procedure together with the final short list shall be submitted to MCC 

42 As of July 2008, this list includes Cuba, Iran, North Korea, Sudan and Syria. 

43 Short list: see Paragraphs 2.6,2.7 and 2.8 of 1.B of these Rules; Long list: a preliminary list of potential finns 

from which the short list would be established. 

ANSEX VI -29 

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for approval before MCA-Namibia issues the RFP if the estimated value ofthe anticipated 

contract exceeds the thresholds in Attachment 1 of these Rules. 

1.16 MCA-Namibia shall supervise the performance of the consultants and ensure that they carry 

out the assignments in accordance with the contract. Without assuming the responsibilities of 

MCA-Namibia or the consultants, MCC shall monitor the work as necessary to satisfy itself that 

it is being carried out according to appropriate standards and is based on acceptable data. As 

appropriate, MCC may take part in discussions between MCA-Namibia and the consultants and, 

if necessary, may help MCA-Namibia in addressing issues related to the assignment. If a 

significant portion of Project preparation work is being carried out in the consultants' home 

offices, MCC staff may, with approval of MCA-Namibia, visit these offices to review the 

consultants' work. 

Misprocurement 

1.17 MCC does not fund expenditures for consultant services if the consultants or consultant 

services selected have not been contracted in accordance with the agreed provisions as detailed 

in the Compact and Supplemental Agreements, these Rules and the approved Procurement 

Plans.44 In such cases, MCC will declare misprocurement and cancel that portion of the 

Compact allocated to the services that have been misprocured if corrective measures satisfactory 

to MCC are not taken. MCC may, in addition, exercise other remedies provided for under the 

Compact. Even once the contract is awarded after obtaining an approval from MCC, MCC may 

still declare misprocurement if it concludes that the approval was issued on the basis of 

incomplete, inaccurate, or misleading information furnished by MCA-Namibia or the terms and 

conditions of the contract had been modified without MCC approval. 

References to MCC 

1.18 MCA-Namibia shall use the following language when referring to MCC in procurement 

documents: 

The United States of America, acting through the Millennium Challenge Corporation (""'fCC ") 

and the Republic of Namibia (the "Government") have entered into a Millennium Challenge 

Compact for Jfillennium Challenge Account assistance to help facilitate poverty reduction 

through economic growth in the Republic of Namibia (the "Compact") in the amount of [Insert 

amount of Compact] USS (".AfCC Funding"). lo.1CA-Namibia on behalf of the Government 

intends to apply a portion of the proceeds of}.1CC Funding to eligible payments under this 

contract. Payments by .\lCA-Namibia will be subject. in all respects. to the terms and 

conditions. including restrictions on the use of}.1CC Funding, of the Compact. No party other 

than the Government and .\lCA-Namibia shall derive any rights from the Compact or have any 

claim to the proceeds Ofl\lCC Funding. 

Training or Transfer of Knowledge 

1.19 If the assignment includes an important component for training or transfer of knowledge to 

MCA-Namibia staff or national consultants, the TOR shall indicate the objectives, nature, scope, 

and goals of the training program, including details on trainers and trainees, skills to be 

44 See Paragraph 1.24.1, 1.24.2, and 1.24.3 of Section I.B of these Rules. 

A1"1"EX VI - 30 
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transferred, time frame, and monitoring and evaluation arrangements. The cost for the training 

program shall be included in the consultant's contract and in the budget for the assignment. 

Language 

1.20 All advertisements for contracts and notices of contract awards, whether posted at MCANamibia's website, at dgMarket, or UNDB Online, shall be posted in English. 

1.21 For all contracts, the solicitation documents as well as the documents responding to these 

solicitations, including the proposals, shall be prepared in English. All contracts shall be written 

in English and this language shall govern contractual relations between MCA-Namibia and the 

consultant. 

Fraud and Corruption 

1.22 MCC requires that MCA-Namibia (and other beneficiaries ofMCC funding), as well as 

consultants and their subcontractors under any MCC-funded contracts, observe the highest 

standards of ethics during the procurement and execution of such contracts. In pursuance of this 

policy, the following provisions shall apply. 

(a) For the purposes of these provisions, the terms set forth below are defined as follows: 

(i) "corrupt practice" means the offering, giving, receiving, or soliciting, directly or indirectly, of 

anything of value to influence the actions of a public official (including MeA-Namibia and 

MCC staff and employees of other organizations taking or reviewing selection decisions) in the 

selection process or in contract execution or the making of any payment to any third party, in 

connection with or in furtherance ofa contract, in violation of(aa) the United States Foreign 

Corrupt Practices Act of 1977, as amended (15 USC 78a et seq.) ("FCPA"), or any other actions 

taken that otherwise would be in violation of the FCP A if the FCP A were applicable, or (bb) any 

applicable law in the Republic of Namibia; 

(ii) "fraudulent practice" means any act or omission, including any misrepresentation, in order to 

influence (or attempt to influence) a selection process or the execution of a contract to obtain a 

financial or other benefit, or to avoid (or attempt to avoid) an obligation; 

(iii) "collusive practice" means a scheme or arrangement between two or more parties, with or 

without the knowledge of MCA-Namibia, designed to establish prices at artificial, 

noncompetitive levels or to otherwise deprive MCA-Namibia of the benefits of free and open 

competition; 

(iv) "coercive practice" means impairing or harming or threatening to impair or harm, directly or 

indirectly, persons or their property, to influence their participation in a procurement process, or 

affect the execution of a contract; 

(v) "obstructive practice" means: 

(aa) destroying, falsifying, altering or concealing of evidence material to the investigation or 

making false statements to investigators in order to impede an investigation into allegations of a 

corrupt, fraudulent, coercive, collusive, or prohibited practice; and threatening, harassing, or 

A-:-''NEX VI -31 

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intimidating any party to prevent it from disclosing its knowledge of matters relevant to the 

investigation or from pursuing the investigation; and 

(bb) acts intended to impede the exercise of the inspection and audit rights of MCC provided 

under the Compact; and 

(vi) "prohibited practice" means any action that violates Section E (Compliance with AntiCorruption Legislation), Section F (Compliance with Anti-Money LaunderingLegislation) and 

Section G (Compliance with Terrorist Financing Statutes and Other Restrictions) of the "General 

Provisions Annex" that will be made a part of MCC-funded contracts and may be found on the 

MCC website at http://www.mcc.gov/guidance/compact/generalJ)rovisions.pdf. 

(b) MCA-Namibia will reject a proposal (and MCC will deny approval of a proposal for contract 

award) ifit determines that the consultant recommended for award has, directly or through an 

agent, engaged in corrupt, fraudulent, collusive, coercive, obstructive or prohibited practices in 

competing for the contract in question. 

(c) MCC has the right to cancel the portion of MCC funding allocated to a contract if it 

determines at any time that representatives of a beneficiary of the MCC funding engaged in 

corrupt, fraudulent, collusive, coercive, obstructive or prohibited practices during the selection 

process or the execution of a MCC-funded contract, without MCA-Namibia having taken timely 

and appropriate action satisfactory to MCC to remedy the situation. 

(d) MCC and MeA-Namibia have the right to sanction a consultant, including declaring such 

party ineligible, either indefinitely or for a stated period oftime, to be awarded an MCC-funded 

contract if at any time either MCA-Namibia or MCC determines that the bidder, supplier, 

contractor, or subcontractor has, directly or through an agent, engaged in corrupt, fraudulent, 

collusive, coercive, obstructive or prohibited practices in competing for, or in executing, such a 

contract. 

(e) MCC and MCA-Namibia have the right to require that a provision be included in solicitation 

documents and in MCC-funded contracts requiring a consultant to permit MCA-Namibia, MCC, 

or any designee of MCC, to inspect its accounts, records and other documents relating to the 

submission of a proposal or performance of a MCC-funded contract and to have them audited by 

auditors appointed by MCC or MCA-Namibia with the approval ofMCC. 

1.23 To the extent required by Namibian law, MCA-Namibia shall introduce, into bid forms for 

large contracts funded by MCC, an undertaking of the bidder to observe, in competing for and 

executing a contract, the country's laws against fraud and corruption (including bribery), as 

listed in the solicitation documents. In the event such an undertaking is not required by 

Namibian law, MCA-Namibia may introduce the undertaking with the approval ofMCC. 

Procurement Plan 

1.24.1 ~1CA-Namibia shall prepare periodic procurement plans that are updated at least semiannually, for acquiring consultant services needed to implement the Compact (,'Procurement 

Plan"). Each Procurement Plan shall be adopted by the governing body of MCA-Namibia and 

Al';"?\EX VI - 32 

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shall be submitted to MCC for its approval. Each Procurement Plan45, typically covering a six 

(6) month period, (a) lists the particular contracts for the consultant services required to 

implement the Compact for the period covered in such Procurement Plan; (b) identifies the 

proposed method of procurement and selection procedure for such contracts as determined 

according to the rules set out in these Rules; and (c) sets forth the estimated value for each 

consultant contract. 

1.24.2 MCA-Namibia shall ensure that all consultant services shall be procured using the 

procurement method and selection procedure approved in each Procurement Plan. Compliance, 

satisfactory to MCC, with the approved Procurement Plan shall be a condition precedent to MCC 

Disbursements. 

1.24.3 MCA-Namibia shall not initiate any procurement action that is a substantial deviation 

from the applicable adopted and approved Procurement Plan without the prior approval of MCC. 

If MCA-Namibia determines that such a deviation is necessary or appropriate, MCA-Namibia 

shall submit a request to MCC for its approval of an amended Procurement Plan. If approved by 

MCC, MCA-Namibia shall comply with any instructions contained in the MCC approval, 

including any publication requirements. Any substantial deviation from a Procurement Plan as 

approved and adopted shall be submitted to the governing body of MCA-Namibia for adoption 

of the amended Procurement Plan. 

II. QUALITY AND COST BASED SELECTION 

The Selection Process 

2.1 QCBS uses a competitive process that takes into account the quality of the proposal and the 

cost of the services in the selection of the successful finn. Cost as a factor of selection shall be 

used judiciously. The relative weight to be given to the quality and cost shall be determined for 

each case depending on the nature of the assignment. 

2.2 The selection process includes the following steps unless MCC approves a modification in 

the procedure that is justified under the circumstances of a particular procurement: 

(a) preparation of the Terms of Reference; 

(b) preparation of a cost estimate and the budget; 

(c) advertising; 

(d) preparation of the short list of consultants; (This step is not mandatory . .I.UCA-.Yamibia may 

at its discretion issue the Request for Proposals to all consultants expressing interest in the 

procurement.) 

(e) preparation and issuance of the Request for Proposals which should include: the Letter of 

Invitation; Instructions to Consultants; the Terms of Reference and the proposed draft contract; 

45 When goods, works and non-consultant services also need to be procured, the Procurement Plan must also include 

such procurements in accordance with the requirements at Section LA, Paragraphs 1.16. L 1.16.2. and 1.16.3 of 

these Rules. 

A~ ;-';EX VI - 33 

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(f) receipt of proposals; 

(g) evaluation of technical proposals: consideration of quality; 

(h) public opening of financial proposals; 

(i) evaluation of financial proposals; 

(j) final evaluation of quality and cost; and 

(k) negotiations and award of the contract to the selected firm. 

Terms of Reference ("TOR") 

2.3 MCA-Namibia shall be responsible for preparing the TOR for the assignment. The TOR 

shall be prepared by a person(s) or a firm specialized in the area of the assignment. The scope of 

the services described in the TOR shall be compatible \\-ith the available budget. The TOR shall 

define clearly the objectives, goals, and scope of the assignment and provide background 

information (including a list of existing relevant studies and basic data) to facilitate the 

consultants' preparation oftheir proposals. If transfer of knowledge or training is an objective, it 

should be specifically outlined along with details of number of staff to be trained, and so forth, to 

enable consultants to estimate the required resources. The TOR shall list the services and 

surveys necessary to carry out the assignment and the expected outputs (for example, reports, 

data, maps, surveys). It shall also list criteria that \\-ill be used to evaluate the bids. However, 

the TOR should not be too detailed or inflexible, so as to prevent competing consultants from 

proposing their O\\TI methodology and staffing. Firms shall be encouraged to comment on the 

TOR in their proposals. The respective responsibilities of MCA-Namibia, the implementing 

entity (if relevant) and the consultant should be defmed clearly in the TOR. 

Cost Estimate (Budget) 

2.4 Preparation ofa well thought-through cost estimate is essential ifMCC funding is to be 

managed properly. The cost estimate shall be based on MCA-Namibia's assessment of the 

resources needed to carry out the assignment: staff time, logistical support, and physical inputs 

(e.g. vehicles and laboratory equipment). 

Advertising 

2.5.1 On at least a semi-annual basis, MCA-Namibia shall publicize in the General Procurement 

Notice (GPN) the procurements planned for consultant services for the upcoming period as 

identified in the adopted Procurement Plan which was approved by MCC. The General 

Procurement Notice shall be in the form acceptable to MCC and shall include information 

derived from the Procurement Plan and the name, telephone (or fax) number, and address of the 

MCA-Namibia agent responsible for procurement and the address of the website(s) where 

Specific Procurement Notices will be posted. If known, the scheduled date for availability of 

solicitation documents for each procurement should be indicated. Such solicitation documents 

shall not be released to the public earlier than the date of publication of the General and Specific 

Procurement Notices. The General Procurement Notice shall be advertised in a manner to 

"---,-- ... 4-_0<_ .".".~ .... "·T~.~'_"_.~_._ 

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provide reasonable notice of planned procurements to potential consultants. Advertisement of 

the General Procurement Notice shall include posting in English at MCA-Namibia's website (or 

such other appropriate website designated by MCA-Namibia and approved by MCC), dgMarket 

and lJNDB Online.46 MCA-Namibia shall also publish the General Procurement Notice in a 

newspaper of wide circulation in the Republic of Namibia and in such other media outlets as 

appropriate or as requested from time to time by MCC. 

2.5.2 Request for Expressions of Interest (EOI), Request for Proposals (RFP) or Request for 

Consultant Qualifications (RCQ) shall be advertised as Specific Procurement Notices (SPN). 

For contracts valued less than or equal to US$500,OOO, such requests shall be published in at 

least one newspaper of national circulation in the Republic of Namibia and posted at MCANamibia's website (or such other appropriate website designated by MCA-Namibia and 

approved by MCC). For contracts valued over US$500,OOO, MCA-Namibia must also post the 

Specific Procurement Notice at UNDB Online and at the dgMarket website. Publication in local 

print and broadcast and other national and international media is encouraged as long as the 

posting does not pre-date the required postings. The text of the notice, whether an EOI, an RFP 

or an RCQ may be subject to review by MCC. Notification shall be given in sufficient time to 

enable prospective consultants to obtain information, or the relevant solicitation documents, and 

prepare and submit their responses, taking into consideration the estimated value of the contract 

and period of advance notice given with the General Procurement Notice.47 

Short List of Consultants 

2.6 At its discretion, MCA-Namibia may advertise for expressions of interest and invite only 

short-listed firms or individuals to submit proposals or qualifications as appropriate for the 

selection procedure chosen for the particular procurement, or MCA-Namibia may begin the 

procurement with an open request for proposals or consultation qualifications. Wnen MCANamibia chooses to begin a procurement with a shortlisting procedure, MCA-Namibia is 

responsible for preparation of the short list. There is no maximum limit to the number of firms 

that may be short-listed and care should be taken not to eliminate any qualified participants from 

competing for the consultant contract. Consideration for shortlisting must be given to all firms 

or organizations - national and international - expressing interest and possessing the relevant 

qualifications. The method for developing a short list shall be fair and objective according to 

pre-announced criteria. 

2.7 Reserved 

2.8 Selection based upon Consultants Qualifications is generally used for small assignments. 48 

-16 UNDB is a publication of the United Nations. Subscription infonnation is available from: Development Business, 

United Nations. GCPO Box 5850, New York. NY 10163-5850. USA (Website: www.devbusiness.com; e-mail: 

dbsubscribe@un.org); Development Gateway Market is an electronic portal of Development Gateway Founc!ation, 

1889 F Street, N.W. Washington, DC 20006, USA (Website: www.dgmarket.com). 

H Also see Paragraph 2.13 of Section I.B of these Rules. 

~8 Dollar thresholds defining "small" shall be detennined in each case, taking into account the nature and complexity 

of the assignment. but generally will not exceed US$200,000. 

ANNEX VI -35 
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Preparation and Issuance of the Request for Proposals ('"RFP') 

2.9 The RFP shall include (a) a Letter ofInvitation, (b) Infonnation to Consultants, (c) the TOR 

and (d) the proposed contract. MCA-Namibia shall use the applicable Standard Proposal 

Documents, as approved by MCC pursuant to Part 3 of these Rules, as may be modified to 

address Project-specific conditions, subject to MCC approval when the change is material. 

MCA-Namibia may use an electronic system to distribute the RFP, provided that MCC is 

satisfied with the adequacy of such system. If the RFP is distributed electronically, the 

electronic system shall be secure to avoid modifications to the RFP and shall not unfairly restrict 

the access of consultants to the RFP. 

Letter of Invitation ("LOr) 

2.10 The LOI shall state the intention of MCA-Namibia to enter into a contract for the provision 

of consultant services, the source of funds, the details of MCA-Namibia and the date, time, and 

address for submission of proposals. 

Instructions to Consultants ("ITC') 

2.11 The ITC shall contain all necessary infonnation that would help consultants prepare 

responsive proposals. and shall bring as much transparency as possible to the selection procedure 

by providing infonnation on the evaluation process and by indicating the evaluation criteria and 

methodology and their relative weights and the minimum passing quality score. The ITC may 

indicate an estimate of the level of key staff inputs (in staff time) required of the consultants or 

may provide the total budget, but neither item of infonnation is required. The ITC shall specify 

the proposal validity period, which should be adequate for the evaluation of proposals, decision 

on award, MCC review, and finalization of contract negotiations. A detailed list of the 

infonnation that should be included in the ITC is provided in Appendix 2 of this Section l.B. 

Contract 

2.12 Sub-Section 1.B.lV of these Rules briefly discusses the most common types of contracts. 

MCA-Namibia shall use an appropriate fonn of contract acceptable to MCC. Any changes to 

standard conditions shall be introduced generally through the forms and procedures defined in 

the Standard Proposal Documents. When the Standard Proposal Documents are not appropriate 

(for example, for pre shipment inspection and procurement services), MCA-Namibia shall use 

other contract forms acceptable to MCC. 

Receipt of Proposals 

2.13 MCA-Namibia shall allow enough time for the consultants to prepare their proposals. The 

time allowed shall depend on the assignment, the value of the contract, the difficulty of preparing 

a technical proposal and the duration of the advance notice given with posting of the General 

Procurement Notice. During this interval, the firms may request clarifications about the 

information provided in the RFP. MCA-Namibia shall provide these clarifications in writing and 

copy them to all firms either registered or on the short list (who intend to submit proposals). If 

necessary, MCA-Namibia shall extend the deadline for submission of proposals. The technical 

and financial proposals shall be submitted at the same time. No amendments to the technical or 

financial proposals shall be accepted after the deadline. To safeguard the integrity of the 

A1\"NEX VI- 36 ~ _ ...... -- - .-.--_ ... _ . •• " T •• _.~.,.,.~" ... -._ •• ~", __ <>",~~~" ...... ___ ~~.,, ___ ,_~".~" •• 
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process, the technical and financial proposals shall be submitted in separate sealed envelopes. 

The technical envelopes shall be opened immediately by a committee of officials dra\\-TI from the 

relevant departments (technical, finance or legal, as appropriate), after the closing time for 

submission of proposals. The financial proposals shall remain sealed and shall be properly 

secured until they are opened publicly. Any proposal received after the closing time for 

submission of proposals shall be returned unopened after the time for protest has expired. MCANamibia may use electronic systems permitting consultants to submit proposals by electronic 

means, provided MCC is satisfied with the adequacy of the system, including, inter alia, that the 

system is secure, maintains the confidentiality and authenticity of proposals submitted, uses an 

electronic signature system or equivalent to keep consultants bound to their proposals, and only 

allows proposals to be opened with due simultaneous electronic authorization of the consultant 

and MCA-Namibia. In this case, consultants shall continue to have the option to submit their 

proposals in hard copy. 

Evaluation of Proposals: Consideration of Quality and Cost 

2.14 The evaluation of the proposals shall be carried out in two stages: 1. quality, 2. cost. 

Evaluators of technical proposals shall not have access to the fmancial proposals until the 

technical evaluation, including any required MCC reviews and approvals, is concluded. 

Financial proposals shall be opened only thereafter. The evaluation shall be carried out in full 

conformity with the provisions of the RFP. 

Evaluation of the Quality 

2.15 MCA-Namibia shall evaluate each technical proposal (using a technical evaluation panel of 

generally three or more technical specialists in the sector), taking into account appropriate 

evaluation criteria as set out in the RFP. Evaluation criteria may include (a) the consultant's 

relevant experience for the assignment, (b) the quality of the methodology proposed, and (c) the 

qualifications of the key staff proposed. The relative weight of each criterion shall be disclosed 

in the RFP. The score for each proposal may be determined based upon the total point system or 

other methodology for evaluating and comparing responses fairly. When applying the total point 

method, each criterion is marked on a scale of 1 to 100 according to the specific needs of the 

assignment. 

2.16 MCA-Namibia may divide these criteria into sub-criteria. For example, sub-criteria under 

methodology might be innovation and level of detail. However, the number of sub-criteria 

should be limited to the essential. MCC recommends against the use of exceedingly detailed 

lists of sub-criteria that may render the evaluation a mechanical exercise more than a 

professional assessment of the proposals. If the shortlisting procedure was applied, the weight 

given to experience can be relatively modest, since this criterion has already been taken into 

account during the shortlisting process. More weight might be given to the methodology in the 

case of more complex assignments (for example, multidisciplinary feasibility or management 

studies). 

2.17 Evaluation of key personnel is recommended. Since key personnel ultimately determine the 

quality of performance, more weight shall be assigned to this criterion if the proposed 

assignment is complex. MCA-Namibia shall review the qualifications and experience of 

proposed key personnel in their curricula vitae, which must be accurate, complete, and signed by 

A~;-;EX VI - 37 -,---_ .• - • __ ._.- ~ ---~ •• -~'----"-... - _ •• __ ._+ --... --.. -.~-,- • 

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an authorized official of the consultant finn and the individual proposed. The individuals might 

be rated in the following three sub-criteria, as relevant to the task: 

(a) general qualifications: general education and training, length of experience, positions held, 

time with the consultant finn as staff, experience in developing countries, and so forth; 

(b) adequacy for the assignment: education, training, and experience in the specific sector, field, 

subject, and so forth, relevant to the particular assignment; and 

(c) experience in the region: knowledge of the local language, culture, administrative system, 

government organization, and so forth. 

2.18 MCA-Namibia shall evaluate each proposal on the basis of its responsiveness to the TOR. 

A proposal shall be considered unsuitable and shall be rejected at this stage if it does not respond 

to important aspects of the TOR or it fails to achieve a minimum technical score specified in the 

RFP. 

2.19 At the end of the process, MCA-Namibia shall prepare a technical evaluation report of the 

"quality" of the proposals and, in the case of contracts subject to prior review, submit it to MCC 

for its review and approval. The report shall substantiate the results of the evaluation and 

describe the relative strengths and weaknesses of the proposals. All records relating to the 

evaluation, such as individual mark sheets, shall be retained until completion of the Project and 

its audit. 

Evaluation of Financial Proposals 

2.20 After the evaluation of quality is completed and the required reviews and approvals have' 

been issued, MCA-Namibia shall infonn the consultants who have submitted proposals of the 

technical points assigned to each consultant and shall notify those consultants whose proposals 

did not meet the minimum qualifying mark or were considered nonresponsive to the RFP and the 

TOR that their financial proposals will be returned unopened after the signature of the contract. 

MCA-Namibia shall simultaneously notify the consultants that have secured at least the 

minimum qualifying mark of the date, time, and place set for opening the financial proposals. If 

the procurement is on the critical path for implementation of the Compact, the opening date may 

be defined to allow very short notice for consultants to make arrangements to attend the opening 

of the financial proposals. In such case, MCA-Namibia shall arrange for the record of the 

proceedings of the opening to be signed by at least two independent witnesses. The financial 

proposals shall be opened publicly in the presence of representatives of the consultants who 

choose to attend (in person or online). The name of the consultant, the technical points, and the 

proposed prices shall be read aloud (and posted online when electronic submission of proposals 

is used) and recorded when the financial proposals are opened. MCA-Namibia shall also prepare 

the minutes of the public opening and a copy ofthis record shall be included in the record of the 

procurement and provided to all consultants who submitted proposals. A copy of the record shall 

be sent to MCC when the proposed award is subject to prior review by MCC. 

2.21 MCA-Namibia shall then review the financial proposals. If there are any arithmetical 

errors, they shall be corrected. For the purpose of comparing proposals, the RFP shall require 

that all proposals be stated in the same currency (local currency of the Republic of Namibia, or 

US$ or a combination of the two) as required in the RFP. If there is a need to make a conversion 

A~;-";EX VI - 38 
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between the two allowable currencies, the RFP shall specify the source of the exchange rate to be 

used and the date of that exchange rate, provided that the date shall not be earlier than four 

weeks prior to the deadline for submission of proposals, nor later than the original date of 

expiration of the period of validity of the proposal. Any proposal that deviates from the currency 

requirement as stated in the RFP may be rejected as non-responsive. 

2.22 For the purpose of evaluation, the financial proposals shall include or exclude local 

identifiable direct or indirect taxes as instructed in the RFP. The financial proposal shall include 

all consultants' remuneration and other expenses such as travel, translation, report printing, or 

secretarial expenses. When the total point evaluation methodology is used, the financial 

proposal with the lowest price may be given a financial score of 100 and other proposals given 

financial scores that are inversely proportional to their prices. Alternatively. a directly 

proportional or other methodology may be used in allocating the marks for the financial 

proposal. The methodology to be used shall be described in the RFP. 

Combined Quality and Price Evaluation 

2.23.1 The total score shall be obtained by weighing the quality and price scores and adding 

them. The weight for the financial proposal shall be assigned, taking into account the 

complexity of the assignment and the relative importance of quality. The proposed weightings 

for quality and price shall be specified in the RFP. The firm obtaining the highest total score 

shall be invited for negotiations. 

2.23.2 When the procurement is subject to MCC prior review for proposed award, MCANamibia, before inviting the firm obtaining the highest total score for negotiations, shall furnish 

to MCC for its review and approval a full description of the procurement process including an 

account of all protests and appeals and other significant problems or defects during the process 

and a description of how these were resolved. 

Negotiations and Award of Contract 

2.24 Negotiations shall include discussions of the TOR, the methodology, staffmg, inputs by 

MCA-Namibia and special conditions of the contract. These discussions shall not substantially 

alter the original TOR or the terms of the contract, lest the procurement process be invalidated. 

Major reductions in work inputs should not be made solely to meet the budget. The final TOR 

and the agreed methodology shall be incorporated into "Description of Services," which shall 

form part of the contract. 

2.25 The selected firm should not be allowed to substitute key staff, unless both parties agree that 

undue delay in the selection process makes such substitution unavoidable or that such changes 

are critical to meet the objectives of the assignment. If this is not the case and ifit is established 

that key staff were included in the proposal without confirming their availability, the firm may be 

disqualified and the process continued with the next ranked firm. The key staff proposed for 

substitution shall have qualifications equal to or better than the key staff initially proposed. 

2.26 Financial negotiations shall include clarification of the consultants' tax liability in the 

Republic of Namibia (if any) to ensure that the contract is consistent with the provisions of the 

Compact and Supplemental Agreement. As payments under fixed-price contracts are based on 

work done and delivery of outputs (or products), the offered price shall include all costs (staff 

ANNEXVI-39 
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time, overhead, travel, hotel, etc.). Consequently, if the selection method for a fixed-price 

contract included price as a component, this price shall not be negotiated. In the case of TimeBased Contracts, payment is based on inputs (staff time and reimbursables) and the offered price 

shall include staff rates and an estimation of the amount of reimbursables. When the selection 

method includes price as a component, negotiations of staff rates should not take place, except in 

special circumstances, such as when staff rates offered are much higher than rates typically 

charged by consultants in similar circumstances for similar contracts. Consequently, the 

prohibition of negotiation does not preclude the right of MCA-Namibia to ask for clarifications, 

and, if fees are very high, to ask for change of fees, after due consultation with MCC. 

Reimbursables are to be paid on actual expenses incurred at cost, subject to limitations set out in 

MCC Cost Principles, upon presentation of receipts and therefore are not subject to negotiations. 

However, if MCA-Namibia wants to define ceilings for unit prices of certain reimbursables (like 

travel or hotel rates), it should indicate the maximum levels of those rates in the RFP or define a 

per diem in the RFP. If the contract permits reimbursement of any costs, the reimbursement 

rates shall be limited by applicable MCC Cost Principles ("MCC Cost Principles") found at the 

MCC website, www.mcc.gov. 

2.27 If the negotiations fail to result in an acceptable contract, MCA-Namibia shall terminate the 

negotiations and invite the next ranked firm for negotiations. MCA-Namibia shall consult with 

MCC prior to taking this step. The consultant shall be informed of the reasons for termination of 

the negotiations. Once negotiations are commenced with the next ranked firm, MCA-Namibia 

shall not reopen the earlier negotiations. After negotiations are successfully completed and all 

required reviews and approvals have been issued, MCA-Namibia shall promptly notify other 

firms on the short list that they were unsuccessful. 

Publication ofthe Award of Contract 

2.28 After the award of contract, MCA-Namibia shall post at UNDB Online, at dgMarket and at 

MCA-Namibia's website (or such other appropriate website designated by MCA-Namibia and 

approved by MCC) the results, identifying the procurement, the name of the winning consultant 

and the price, duration, and summary scope of the contract. The same information shall be sent 

to all consultants who have submitted proposals. The posting at UNDB Online and at dgMarket 

must be done monthly and at MCA-Namibia's website (or such other appropriate website 

designated by MCA-Namibia and approved by MCC) at least weekly. The posting shall be in a 

format of a summarized table covering the previous period. All such postings shall be in 

English. 

Debriefing 

2.29 In the publication of contract award referred to in Paragraph 2.28 above, MCA-Namibia 

shall specify that any consultant who wishes to ascertain the grounds on which its proposal was 

not selected should request an explanation from MCA-Namibia. MCA-Namibia shall promptly 

provide the explanation as to why such proposal was not selected, in writing and/or in a 

debriefing meeting, at the option of the consultant. The requesting consultant shall bear all the 

costs of attending such a debriefing. 

A]I,:-;EX VI - 40 

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Rejection of All Proposals, and Re-invitation 

2.30 MCA-Namibia will be justified in rejecting all proposals only if all proposals are 

nonresponsive because they present major deficiencies in complying with the TOR if they 

involve prices substantially higher than the original estimate, or if contracting for the services is 

no longer in the best interest of implementation of the Compact. In the case ofa higher price, the 

feasibility of increasing the budget, or scaling dO\\-TI the scope of services with the firm should be 

investigated in consultation with MCC. Before all the proposals are rejected and new proposals 

are invited, MCA-Namibia shall notify MCC, indicating the reasons for rejection of all 

proposals, and shall obtain MCC's approval before proceeding \\-ith the rejection and the new 

process. The new process may include revising the RFP (including the short list) and the budget. 

These revisions shall be agreed upon with MCC. Within two weeks of the rejection of all 

proposals, MCA-Namibia shall post at dgMarket and MCA-Namibia's website (or such other 

appropriate website designated by MCA-Namibia and approved by MCC) notification of the 

cancellation of the procurement. The notification shall identify the procurement and state briefly 

the reasons for cancellation. The same information shall be sent to all those who have submitted 

proposals. All such postings shall be in English. 

Confidentiality 

2.31 Information relating to evaluation of proposals and recommendations concerning awards 

shall not be disclosed to the consultants who submitted the proposals, or to other persons not 

officially concerned with the process, until the publication of the award of contract, except as 

provided in Paragraphs 2.20 and 2.27 of Section l.B of these Rules. 

III. OTHER METHODS OF SELECTION 

General 

3.1 This Sub-Section 1.B.III describes the selection methods other than QCBS, and the 

circumstances under which they are acceptable. All the relevant49 provisions of Sub-Section 

I.B.II (QCBS) shall apply whenever competition is used. 

Quality Based Selection ("'QBS') 

3.2 QBS may be appropriate for the following types of assignments: 

(a) complex or highly specialized assignments for which it is difficult to define precise TORs 

and the required input from the consultants, and for which MCA-Namibia expects the 

consultants to demonstrate innovation in their proposals; 

(b) assignments that have a high downstream impact and in which the objective is to have the 

best experts; and 

~9 All provisions of Sub-Section 1.B.Il shall be applied with the modifications and suppressions required by the 

method for selecting consultants used in the specific case. Advertisement is not required when single source 

selection is used. 

A~~EX VI -41 
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(c) assignments that can be carried out in substantially different ways, such that proposals will 

not be comparable. 

3.3 In QBS, the RFP may request submission of a technical proposal only (without the financial 

proposal), or request submission of both technical and financial proposals at the same time, but 

in separate envelopes (two-envelope system). The procurement shall be advertised according to 

the requirements set out in Paragraphs 2.5.1 and 2.5.2 of Section LB. and may, at the discretion 

of MCA-Namibia, be preceded by a shortlisting procedure (see Paragraphs 2.6 to 2.8 of Section 

1.B). The RFP may provide either the estimated budget or the estimated number of key staff 

time, specifying that this information is given as an indication only and that consultants shall be 

free to propose their own estimates. 

3.4 If technical proposals alone were invited, after evaluating the technical proposals using the 

same methodology as in QCBS, MeA-Namibia shall ask the consultant with the highest ranked 

technical proposal to submit a detailed financial proposal. MCA-Namibia and the consultant 

shall then negotiate the financial proposal and the contract. All other aspects of the selection 

process shall be identical to those of QCBS, including the publication of the award of contract as 

described in Paragraph 2.28. If consultants were requested to provide financial proposals 

initially together with the technical proposals, safeguards shall be built in as in QCBS to ensure 

that, after the negotiations are successfully concluded, the financial proposal of only the selected 

firm is opened and the rest are returned unopened. 

Selection under a Fixed Budget ("FBS') 

3.5 This method is appropriate when the assignment is simple and can be precisely defined. The 

RFP shall indicate the available budget and request the consultants to provide their best technical 

and financial proposals, which stay within the budget, in separate envelopes. The TOR should 

be particularly well prepared to make sure that the budget is sufficient for the consultants to 

perform the expected tasks. The procurement shall be advertised according to the requirements 

set out in Paragraphs 2.5.1 and 2.5.2 of Section 1.B, and may, at the discretion of MCA-Namibia, 

be preceded by a shortlisting procedure (see Paragraphs 2.6 to 2:8 of Section 1.B). Evaluation of 

all technical proposals shall be carried out first as in the QCBS method. Then the financial 

proposals shall be opened in public and prices shall be read aloud. Proposals that exceed the 

indicated budget shall be rejected. The consultant who has submitted the highest ranked 

technical proposal shall be selected and invited to negotiate a contract. The publication of the 

Award of Contract shall be as described in Paragraph 2.28. 

Least-Cost Selection ("LCS') 

3.6 This method is appropriate for selecting consultants for assignments of a standard or routine 

nature (audits, engineering design of noncom pIe x works, etc.) where well established practices 

and standards exist. Under this method, a "minimum" qualifying mark for the "quality" is 

established. Proposals, to be submitted in two envelopes, are invited. The procurement shall be 

advertised according to the requirements set out in Paragraphs 2.5.1 and 2.5.2 of Section 1.B, 

and may, at the discretion of MCA-Namibia, be preceded by a shortlisting procedure (see 

Paragraphs 2.6 to 2.8 of Section 1.B). Technical proposals are opened first and evaluated. 

AN~EXVI -42 ~"---' --------_._--" - .. -. __ .- ---_._-_. - . ----- -

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Those securing less than the minimum qualifying mark50 are rejected, and the financial proposals 

of the rest are opened in public. The firm with the lowest price shall then be selected and the 

publication of the award of contract shall be as described in Paragraph 2.28. Under this method, 

the minimum qualifying mark shall be established, understanding that all proposals above the 

minimum compete only on "price." The minimum qualifying mark shall be stated in the RFP. 

Selection Based on the Consultants' Qualifications ("CQS") 

3.7 This method may be used for small51 assignments for which the need for preparing and 

evaluating competitive proposals is not justified. In such cases, MCA-Namibia shall prepare the 

TOR, request information on the consultants' experience and competence relevant to the 

assignment, and select the firm with the most appropriate qualifications and references. The 

procurement shall be advertised according to the requirements set out in Paragraphs 2.5.1 and 

2.5.2 of Section l.B and may, at the discretion of MCA-Namibia, be preceded by a shortlisting 

procedure (see Paragraphs 2.6 to 2.8 of Section 1.B). The selected firm shall be asked to submit 

a combined technical and financial proposal and then be invited to negotiate the contract. 

3.8 The publication of the award of contract shall be as described in Paragraph 2.28. 

Single-Source Selection ("SSS") 

3.9 Single-source selection of consultants does not provide the benefits of competition with 

regard to quality and cost, lacks transparency in selection, and could encourage unacceptable 

practices. Therefore, single-source selection shall be used only in exceptional cases. The 

justification for single-source selection shall be examined in the context of the overall interests of 

MCA-Namibia and implementation of the Compact and the responsibility ofMCC to ensure 

economy and efficiency and provide equal opportunity to all qualified consultants. 

3.1 0 Single-source selection may be appropriate only if it presents a clear advantage over 

competition: (a) for tasks that represent a natural continuation of previous work carried out by 

the firm (see Paragraph 3.11), (b) in emergency cases, such as in response to disasters and for 

consultant services required during the period of time immediately following the emergency, (c) 

for very small52 assignments, or (d) when only one firm is qualified or has experience of 

exceptional worth for the assignment. 

3.11 When continuity for do\\-nstream work is essential, the initial RFP shall outline this 

prospect, and if practical, the factors used for the selection of the consultant shaH take the 

likelihood of continuation into account. Continuity in the technical approach, experience 

acquired, and continued professional liability of the same consultant may make continuation with 

the initial consultant preferable to a new competition, subject to satisfactory performance in the 

initial assignment. For such downstream assignments, MCA-Namibia shall ask the initiaHy 

50 This method shall not be used as a substitute for QCBS and shall be used only for the specific cases of very 

standard and routine technical nature where the intellectual component is minor. For this method the minimum 

qualifying mark shall be 70 points or higher. 

51 Dollar thresholds defining "small" shall be determined and justified in ~Titing in each case, taking into account 

the nature and complexity of the assignment, but shall not exceed US$200.000 except in exceptional circumstances 

and specifically approved by MCC. 

52 Dollar thresholds defining "very small'> shall be detennined in each case, taking into account the nature and 

complexity of the assignment, but shall not exceed USD2,OOO. 

A~EXVI-43 

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selected consultant to prepare technical and financial proposals on the basis of the TOR 

furnished by MeA-Namibia, which shall then be negotiated. 

3.12 If the initial assignment was not awarded on a competitive basis or if the dO\\'TIstream 

assignment is substantially larger in value, a competitive process acceptable to MeC shall 

normally be followed in which the consultant carrying out the initial work is not excluded from 

consideration if it expresses interest. MCC will consider exceptions to this rule only under 

special circumstances and only when a new competitive process is not practicable. 

3.13 The publication of the award of contract shall be as described in Section I.B, Paragraph 

2.28. 

3.14 Reserved 

Selection of Particular Types of Consultants 

3.15 Reserved 

3.16 Reserved 

3.17 Procurement Agents and Fiscal Agents. MeA-Namibia may wish (or be required by MCC) 

to employ, as its agents, firms that specialize in handling procurement and/or financial 

management services. Such agents shall be selected follo\\'ing these Rules (or such other 

procedures as MCC may approve) and the procedures set out in the RFP requesting such agent 

services. When performing procurement agent services, the procurement agent shall follow the 

procurement procedures outlined in the Compact and Supplemental Agreements, in the 

Procurement Plan approved by MCC, and in these Rules. 

3.18 Inspection Agents. MCA -N amibia may wish to employ inspection agencies to inspect and 

certify goods prior to shipment or on arrival in the Republic of Namibia. The inspection by such 

agencies usually covers the quality and quantity of the goods concerned and reasonableness of 

price. Inspection agencies shall be selected using the procedures set out in the approved and 

adopted Procurement Plan. 

3.19 Banks. MCA-Namibia may require the services of investment and commercial banks, 

financial firms, and fund managers to implement the Compact. To procure these services, the 

RFP shall specify clearly how proposals will be presented and how they will be compared. 

3.20 Auditors. Auditors typically carry out auditing tasks under well defined TOR and 

professional standards. MCA-Namibia shall select auditors according to the instructions 

provided to it by MCC including MCC's Standard Proposal Document for auditor services. 

3.21 Service Delivery Contractors. Projects in the social sectors in particular may involve hiring 

of large numbers of individuals who deliver services on a contract basis (for example, social 

workers, such as nurses and paramedics). The job descriptions, minimum qualifications, terms 

of employment, selection procedures, and the extent of MCC review of these procedures and 

documents shall be described in the Project documentation, and the contract shall be included in 

the Procurement Plan approved by MCC. 

AJ'."NEX VI - 44 
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IV. TYPES OF CONTRACTS AND IMPORTANT PROVISIONS 

Types of Contracts 

4.1 Fixed-Price Contract {"'Fixed-Price Contracr}. Fixed-Price Contracts may take various 

forms such as lump sum, unit price and percentage fees. 53 Fixed-Price Contracts are used mainly 

for assignments in which the content and the duration of the services and the required output of 

the consultants are clearly defined. They are widely used for simple planning and feasibility 

studies, environmental studies, detailed design of standard or common structures, preparation of 

data processing systems, and so forth. Payments are linked to work done in performance of the 

contract and to outputs (deliverables), such as reports, drawings, bills of quantities, bidding 

documents, and software programs. Fixed-Price Contracts are easier to administer than TimeBased Contracts (defined below) because payments are due on clearly specified outputs. 

4.2 Time-Based Contract {"Time-Based Contract'}. This type of contract is appropriate when it 

is difficult to define the scope and the length of services, either because the services are related to 

activities by others for which the completion period may vary, or because the input of the 

consultants required to attain the objectives of the assignment is difficult to assess. Payments are 

based on agreed hourly, daily, weekly, or monthly rates for staff (who are normally named in the 

contract) and on reimbursable items using actual expenses and/or agreed unit prices. Time-based 

contracts need to be closely monitored and administered by MCA-Namibia to ensure that the 

assignment is progressing satisfactorily and that payments claimed by the consultants are 

appropriate. For contracts that permit reimbursement of any costs, the reimbursement rates shall 

be limited by applicable MCC Cost Principles. The costs shall also be subject to audit in 

accordance with the requirements set out in the Compact and the Supplemental Agreements. 

4.3 Reserved 

4.4 Percentage Contract. These contracts are commonly used for architectural services. They 

may also be used for procurement and inspection agents. Percentage Contacts directly relate the 

fees paid to the consultant to the estimated or actual Project construction cost, or the cost of the 

goods procured or inspected. The contracts are negotiated on the basis of market norms for the 

services and/or estimated staff-month costs for the services, or competitively bid. It should be 

borne in mind that in the case of architectural or engineering services, Percentage Contracts 

implicitly lack incentive for economic design and are hence discouraged. Therefore, the use of 

such a contract for architectural services is recommended only it if is based on a fixed target cost 

and covers precisely defined services (for example, not works supervision.). 

4.5.1 Indefinite Delivery and Indefinite Quantity {"IDI(l°} Contract. These contracts are used 

when MCA-Namibia needs to have "on call" specialized services to provide advice on a 

particular activity, the extent and timing of which cannot be defined in advance. These are 

commonly used to retain "advisers" for implementation of complex Projects, expert adjudicators 

53 Percentage contracts directly relate the fees paid to the consultant to the estimated or actual project construction 

cost. the cost of the goods procured or inspected or other measure of service such as in the case of Procurement 

Agent, the value of contracts procured or for Fiscal Agent the amount of funds disbursed. Percentage contracts must 

be distinguished from cost-plus-percentage-of-cost type contracts which are prohibited as such contracts motivate a 

supplier, contractor or consultant to increase its profits by increasing cost of performance. 

A1\i\EX VI - 45 

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for dispute resolution panels, institutional reforms, procurement advice, technical 

troubleshooting, and so forth, normally for a period of a year or more. 

4.5.2 Requirements and Blanket Purchase Agreements ("BPA'") Contracts. MeA-Namibia may 

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Important Provisions 

4.6 RFPs shall clearly state that finns must express the price for their services in the currency 

stated in the RFP, which in every case must be either US dollars or the local currency of the 

Republic of Namibia or a combination thereof. MeA-Namibia may require consultants to state 

the portion of the price representing costs in the local currency of the Republic of Namibia. 

Payment under the contract shall be made in the currency or currencies as stated in the RFP. 

4.7 Reserved 

4.8 Payment Provisions. Payment provisions, including amounts to be paid, schedule of 

payments, and payment procedures, shall be set out in the RFP to the extent possible. Payments 

may be made at regular intervals, milestones and outputs as described in the RFP and agreed in 

the contract. 

4.9 Except as otherwise stated in any related provision of the Compact and Supplemental 

Agreements, payments shall be made promptly in accordance with the contract provisions. To 

that end: 

(a) consultants \\-ill be paid directly by the Fiscal Agent; and, 

(b) the contract shall provide for the payment of interest if payment is delayed beyond the time 

allowed in the contract due to the fault of MCA-Namibia or its agents; the rate of charges shall 

be specified in the contract. 

4.10 Bid and Performance Securities. Bid and perfonnance securities are not always 

recommended for consultants' services. Their enforcement is often subject to judgment calls, 

they can be easily abused, and they tend to increase the costs to the consultant industry without 

evident benefits, which are eventually passed on to MCA-Namibia. However, they can be useful 

where Compact implementation would be damaged by poor consultant perfonnance. 

4.11 Reserved 

4.12 Conflict of Interest. The consultant shall not receive any remuneration in connection with 

the assignment except as provided in the contract. The consultant and its affiliates shall not 

engage in consultant or other activities that conflict with the interest of MCA-Namibia under the 

contract. The contract shall include provisions limiting future engagement of the consultant or 

other services resulting from or directly related to the finn's consultant services in accordance 

with the requirements of Paragraphs 1.9 and 1.10 of Section 1.B of these Rules. 

4.13 Professional Liability. The consultant is expected to carry out its assignment with due 

diligence and in accordance with prevailing standards of the profession. As the consultant's 

liability to MeA-Namibia will be governed by the applicable law, the contract need not deal with 

Al\l\EX VI - 46 
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this matter unless the parties wish to limit this liability. If they do so, they should ensure that (a) 

there must be no such limitation in case ofthe consultant's gross negligence or willful 

misconduct; (b) the consultant's liability to MCA-Namibia may in no case be limited to less than 

a multiplier of the total value of the contract to be indicated in the RFP and in the special 

conditions of the contract (the amount of such limitation will depend on each specific case);54 

and (c) any such limitation may deal only with the consultant's liability toward MCA-Namibia 

and not with the consultant's liability toward third parties. 

4.14 Sta.!fSubstitution. During an assignment, if substitution is necessary (for example, because 

of ill health or because a staff member proves to be unsuitable), the consultant shall propose 

other staff of at least the same level of qualifications for approval by MCA-Namibia. 

4.15 Applicable Law and Settlement o/Disputes. The contract shall include provisions dealing 

with the applicable law and the forum for the settlement of disputes. Settlement of disputes shall 

take place in the Republic of Namibia with the possibility for international arbitration where the 

parties so agree. 

v. SELECTION OF INDIVIDUAL CONSULTANTS 

5.1 Individual consultants are employed on assignments for which (a) teams of personnel are not 

required, (b) additional outside (home office) professional support is not required, and (c) the 

experience and qualifications of the individual are the paramount requirement. When 

coordination, administration, or collective responsibility may become difficult because of the 

number of individuals, it would be advisable to employ a firm. 

5.2 Individual consultants are selected on the basis of their qualifications for the assignment. 

The procurement shall be advertised according to the requirements set out in Paragraphs 2.5.1 

and 2.5.2 of Section I.B and may, at the discretion of MCA-Namibia, be preceded by a 

shortlisting procedure (see Paragraphs 2.6 to 2.8 of Section I.B). Consultants do not need to 

submit proposals but shall be selected through evaluation and comparison of qualifications. 

Individuals considered for comparison of qualifications shall meet the minimum relevant 

qualifications and those selected to be contracted by MCA-Namibia shall be the best qualified 

and shall be fully capable of carrying out the assignment. Capability is judged on the basis of 

evidence of knowledge and past experience relevant to the services to be provided and past 

performance based upon references and recommendations. 

5.3 From time to time, permanent staff or associates of a consultant firm may be available as 

individual consultants. In such cases, the conflict of interest provisions described in these Rules 

shall apply to the parent firm. 

5.4 Individual consultants may be selected on a sole-source basis with due justification in 

exceptional cases such as for: (a) tasks that are a continuation of previous work that the 

consultant has carried out and for which the consultant was selected competitively; (b) certain 

assignments with total expected duration of less than six months; (c) emergency situations 

resulting from natural disasters; and (d) when the individual is the only consultant qualified for 

the assignment. 

54 MeA-Namibia is encouraged to secure insurance for potential risks above these limits. 

A~NEXVI -47 

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APPENDIX 1: REVIEW BY MCC OF THE SELECTION OF CONSULTANTS I 

Scheduling the Selection Process 

1. If required by the thresholds set forth in Attachment 1 of these Rules, MCC shall review the 

selection process for the hiring of consultants proposed by MCA-Namibia in the Procurement 

Plan to ensure compliance with the Compact and the Supplemental Agreements. Each 

Procurement Plan typically covers a period of at least six months and is updated at least semiannually. Any revisions proposed to the Procurement Plan shall be furnished to MCC for its 

prior approval. 

Prior Review 

The thresholds for review of procurement decisions prior to award of a contract and any 

modification to such contract are set out in Attachment 1 of these Rules. 

Post Review 

MCA-Namibia shall retain all documentation with respect to each contract for at least five years 

after the closing date of the Compact for examination by MCC, its auditors, its oversight 

authorities and independent auditors of MCA-Namibia. This documentation shall include, but 

shall not be limited to, the signed original of the contract, the analysis of the respective 

proposals, and recommendations for award. For contracts awarded on the basis of single-source 

selection, documentation shall include the record of justification, the qualifications and 

experience ofthe consultants, and the signed original of the contract. MCA-Namibia shall also 

furnish such documentation to MCC upon request. MCC shall, if it determines that the contract 

was not awarded in accordance with the agreed procedures as reflected in the Compact, 

including the Supplemental Agreements and further elaborated in the Procurement Plan 

approved by MCC, or the contract itself is not consistent with such procedures, promptly inform 

MCA-Namibia that Paragraph 1.17 (Misprocurement) of Section 1.B of these Rules shall apply 

and state the reasons for such determination. 

APPENDIX 2: INSTRUCTIONS TO CONSULTANTS 

1. When procuring consultant services, MCA-Namibia shall use MCA-Namibia Standard 

Solicitation Documents including the Standard Proposal Document accepted by MCC. These 

documents shall include Instructions to Consultants and TORs providing adequate information 

on the following aspects of the assignment and the procurement process: 

(a) a description of the assignment; 

(b) standard formats for the technical and financial proposals; 

(c) the names and contact information of officials to whom clarifications shall be addressed and 

with whom the consultants' representative shall meet, if necessary; 

(d) details of the selection procedure to be followed, including (i) a description of the two-stage 

process, if appropriate; (ii) a listing of the technical evaluation criteria and weight given to each 

criterion; (iii) the details of the tinancial evaluation; (iv) the relative weight given to quality and 

A};~EX VI - 48 

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price in the case ofQCBS; (v) the minimum pass score for quality; and (vi) the details on the 

public opening of financial proposals; 

(e) estimate of the level of key staff inputs (in staff months) required of the consultants or an 

indicative value of the proposed contract, but generally not both; 

(f) indication of minimum experience, academic achievement, and so forth, expected of key 

staff; 

(g) details and status of MCC funding; 

(h) information on negotiations; financial and other information that shall be required of the 

selected firm during negotiation of the contract; 

(i) deadline for submission of proposals; 

G) currency(ies) in which the costs of services shall be expressed, compared, and paid; 

(k) reference to any local laws that may be particularly relevant to the proposed consultants' 

contract; 

(1) statement that the firm and any of its affiliates shall be disqualified from providing 

do\\-nstream goods, works, consultant or non-consultant services under the Project if, in the 

judgment of MCA-Namibia or MCC. such activities constitute a conflict of interest with the 

services provided under the assignment; 

(m) method in which the proposal shall be submitted, including the requirement that the 

technical proposals and financial proposals be sealed and submitted separately in a manner that 

shall ensure that the technical evaluation is not influenced by price; 

(n) request that the invited firm (i) acknowledges receipt of the RFP and (ii) informs MCANamibia whether or not it will be submitting a proposal; 

(0) if applicable, the short list of consultants being invited to submit proposals and whether or 

not associations between short-listed consultants are acceptable; 

(p) period for which the consultants' proposals shall be held valid and during which the 

consultants shall undertake to maintain, \\-ithout change, the proposed key staff, and shall hold to 

both the rates and total price proposed; in case of extension of the proposal validity period, the 

right of the consultants not to maintain their proposal; 

(q) anticipated date on which the selected consultant shall be expected to commence the 

assignment; 

(r) statement regarding tax liabilities in reference to and accordance with the Compact and the 

Supplemental Agreements; 

(s) details of the services, facilities, equipment, and staff to be provided by MCA-Namibia; 

(t) phasing of the assignment, if appropriate; likelihood of follow up assignments; 

AN~EX VI -49 

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(u) procedure to handle clarifications about the information given in the RFP; 

(v) any conditions for subcontracting part of the assignment; and 

(w) notice of Bid Challenge System. 

APPENDIX 3: GUIDANCE TO CONSULTANTS 

Consultants can find information about the Millennium Challenge Corporation and its programs 

at w\\w.mcc.gov and about MCC Programs in the Republic of Namibia at the website 

established by MCA-Namibia (or such other appropriate website designated by MCA-Namibia 

and approved by MCC). 

PART 2. REPORTS AND RECORDS 

Complete and uniform procurement records shall be maintained according to a standard format 

approved by MCC. MCA-Namibia shall also maintain and submit quarterly to MCC a 

cumulative report of all procurement activity ("Procurement Peiformance Report"), including 

explanations of any variance from the Procurement Plan, in the format mandated by MCC. The 

standard form with instructions is found on the MCC website, www.mcc.gov. 

PART 3. STANDARD SOLICITATION DOCUMENTS 

MCA-Namibia shall develop standard documents to invite quotations, bids, proposals and 

qualifications ("'Standard Solicitation Documents") including standard bidding and proposal 

documents ("Standard Bidding Documents" and "Standard Proposal Documents"). Any . 

Standard Solicitation Document used to procure contracts valued over US$1 00,000 must be 

available in English and is subject to review and approval by MCC. The instructions to bidders 

and consultants in Standard Solicitation Documents must set out or reference the rules and 

procedures governing the procurement. The instructions to bidders and instructions to 

consultants must also state the currency or currencies for the quotes, bids or financial proposals, 

as appropriate, and shall specify that payment be made in either United States dollars or the local 

currency ofthe Republic of Namibia. 

The terms and conditions of procurement contracts shall be set out in the applicable solicitation 

documents. The terms and conditions shall include a provision stipulating the governing law and 

the procedures for resolving contract disputes. The term and conditions also shall include 

provisions as required or specified by these Rules and other Compact documents including 

provisions that stipulate (a) MCC status and rights; (b) limitations on use or treatment ofMCC 

funding; (c) procurement requirements; (d) records and information, access, audits and reviews, 

and reports; (e) compliance with rules on prohibited activities, restricted parties, and eligibility 

requirements of prohibited source provisions in accordance with then-applicable US law, 

regulations and policy; (f) publicity, information and marketing; (g) insurance requirements; (h) 

conflict of interest; and (i) inconsistencies, as well as any other terms and conditions as 

applicable to a contract or agreement of that nature or othenvise as MCA-Namibia, solely upon 

the \vritten instructions ofMCC, may require from time to time. A summary of the applicable 

provisions described in (a) through (i) of this Section may be found on the MCC website at 

w\\w.mcc.gov/guidance/compact/general-.provisions.pdf. MCC has the right to review and 

approve any proposed contracts and any material modifications to any executed contract. 

A~""NEX VI - 50 

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PART 4. REVIEW AND APPROVAL REQUIREMENTS 

Certain important procurement actions and decisions shall be subject to prior review or approval 

by levels of authority within MCA-Namibia or by MCC, as provided in Attachment 1 of these 

Rules. This system of review and approval requirements is intended to ensure adequate 

oversight and monitoring of MCC-funded procurement activities, help detect errors when they 

can be easily corrected and to otherwise avoid problems in such procurement activities. It is 

subject to modification or exception at any time by MCC. 

MCA-Namibia shall ensure that all procurement actions described in Attachment 1 for goods, 

works, consultant and non-consultant services in furtherance of the Compact and funded in 

whole or in part by MCC funding shall be subject to the prior approval of the authorized entity, 

officer(s) or bodies designated on Attachment 1 for the corresponding type of action or dollar 

amount threshold, unless MCC has granted a vvritten exception to the approval requirement set 

out in Attachment 1. 

Notwithstanding the approval requirements set out in Attachment 1, MCC shall have the right to 

take review and require prior approval of any other procurement action, decision or· document. 

PARTS. BID CHALLENGE SYSTEM 

MCA-Namibia shall establish a bid challenge system that provides suppliers, contractors and 

consultants the ability to seek review of procurement actions and decisions ("Bid Challenge 

System"). The organization, rules and procedures of such Bid Challenge System shall be subject 

to MCC approval. The Bid Challenge System must include a first level of review by MCANamibia with an appeal to a review body. The review body must be impartial and independent 

and shall have no interest (through financial, family, business or beneficial o\\nership or 

otherwise) in the outcome of the procurement, nor be involved in or related to the procurement 

process. The review body must follow clear and transparent written procedures and shall issue a 

timely written decision on any bid challenge that is timely and properly filed. The review body 

must have the authority to order a correction of a violation of the procurement principles and 

procedures or to order compensation for loss or damage suffered by a successful challenger, to 

the extent of the cost of preparation of the bid and the challenge. The review body must also 

have the power to order suspension of a procurement that is under challenge in order to preserve 

the commercial opportunity pending the outcome of the review. Notice of the Bid Challenge 

System must be set out in the solicitation documents. Standard notice provisions shall be subject 

to MCC approval. MCA-Namibia shall ensure that all bid challenges are accepted, reviewed and 

processed in accordance with the rules and procedures of the Bid Challenge System as approved 

by MCC. 

PART 6. SUBCONTRACTING 

(a) Every contract or subcontract for goods, works, consultant or non-consultant services with 

any party that receives at least US$50,000 in the aggregate of MCC funding shall require the 

contracting party to follow the fundamental procurement principles promoting transparency, 

openness, competition and fairness to the maximum extent possible, remaining consistent with 

the objectives and requirements of the contract when subcontracting for goods, works, consultant 

or non-consultant services. 

A~~EX VI - 51 ... - _., --- -' 

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(b) In every contract or subcontract valued in excess ofUS$l,OOO,OOO, the contracting party shall 

be required to have written procurement procedures that may be subject to review by MCANamibia and MCC. 

(c) Any contractor or subcontractor planning to subcontract for a major item of goods. works, 

consultant or non-consultant services (deemed major if valued in excess ofUS$lOO,OOO) shall 

seek MCA-Namibia's prior written approval of the subcontractor. 

PART 7. AMENDMENTS AND EXCEPTIONS 

These Rules will be amended, or otherwise modified, from time to time, at MCC s request, to 

reflect changes in US law, regulations or policy related to the funding of procurements. In 

addition, these Rules may be amended by 'written agreement ofMCC andMCA-Namibia, and 

MCA-Namibia will consider in good faith any amendment for the purpose of ensuring continuity 

and compatibility between these Rules and the MCC Program Procurement Guidelines. On a 

case by case basis, the MCC may grant a waiver or exception to the Rules. Such waiver or 

exception must be in \\-Titing and shall be effective only to the extent specifically set forth in such 

~Titing. 

PART 8. PUBLICATION OF MCA-NAMIBIA PROCUREMENT RULES 

MCA-Namibia shall ensure that these Rules (including any amendments thereto) are published 

on MCA-Namibia's website (or such other appropriate website designated by MCA-Namibia 

and approved by MCC). 

AN'I'EXVI - 52 

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, 

MCA-NAMIBIA PROCUREMENT RULES ATTACHMENT 1 

APPROVAL REQUIREMENTS 

Review of Procurement Deeisions: Goods, Works and Non-Consaltant Services 

Level of Review 

(Thresholds Expressed in USS, 

Proeurement MCA-Nam.ibia Governing Body Proeednre or Dftision55 Director of 

Method Proeurem.ent or MCA-Namibia56 

Procurement Plans All All 

Amendments to Procurement All Substantial Deviation Plans 

Pre-qualification documents and All None advertising procedures 

Pre- Report with proposed list of qualification entities qualified All Above 500,000 

Record of Bid Challenges All All 

Bidding Documents 

All None 

Competitive 

Bidding 

Technical Evaluation or Review All None Report with Proposed Award 

Final Contract All Above 250,000 

Record of Bid Challenges All All 

Short list All None 

Bidding Documents All None 

Limited 

Bidding Technical Evaluation or Review All Report with Proposed Award None 

Final Contract All Above 1,000,000 

Record of Bid Challenges All All 

MCC 

All 

All 

Above 

1,000,000 

Above 

500,000 

All 

Above 

1,000,000 

Goods 

Above 

5,000,000 

Works 

Above 

250,000 

Above 

250,000 

All 

Above 

100,000 

Above 

500,000 

Above 

1,000,000 

Above 

1,000,000 

All 

55 Within each "procurement Procedure or Method," each separate "Decision" shown is an independent requirement, 

and all requisite approvals must be received for each such "Decision" before proceeding, sequentially from top to 

bottom, to the next "Decision" requirement. 

56 Notwithstanding the thresholds set forth in this Attachment 2 of these Rules with respect to the Governing Body 

of MCA-Namibia, the Governing Body may exercise its authority to review any procurement decision with prior 

notice to the principal officer of MCA-Namibia. 

A~EXVI-53 

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___ ~ ______ ._._~ __ • __ ._ •• ________ ~ _____ •• ___________________ ••• ___________________________ • ___ • _____________________ .·._--_·· __ 0 ______ -_. _____________ , 

Review of ProcuremeDt Decisiou: Goods, Works aDd Non-CoDSultant Services 

Level of Review 

(Thresholds Expressed in USS) 

Procurement MCA-Namibia Governing Body Procedure or Decision Director of MCC 

Method Procurement of MCA-Namibia 

Short list Over 2,000 None None 

Record of Purchases Weekly Monthly None 

Shopping Quarterly 

Record of Bid Challenges All All record of 

decisions 

Proposed Award Over 2.000 None Above 

50,000 

Direct 

Over 2,000 

Contracting Final Contract (Under 2,000 Above 50,000 Above 

review monthly 50,000 

report) 

Record of Bid Challenges All All All 

Selection of using equipment 

owned by or employees of All All All 

Force Account Government for performing works 

Proposed contract All None All 

Final contract All All All 

For all contract awards 

approved previously if 

increases value of 

Contract by 10% or more, If increases 

All Contract Modifications and or raises a contract which value of 

Procurement Change Orders All did not require approval Contract by 

Actions above an approval 10% or 

threshold or if extends more 

Contract original term by 

25% or more without 

value increase. 

AN'NEX VI - 54 
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Review of Procurement Decisions: Consultant Services 

Level of Review 

(Thresholds Expressed in USSl 

Procurement MCA-Namibia Governing Body Procedure or Decision Diredorof 

Method Procurement of MCA-Namibia 

Procurement Plans All All 

Amendments to Procurement All Substantial Deviation Plans 

Request for Expression of Interest All None 

Technical Evaluation Panel All None 

Short list All None 

Quality and Proposal Documents All None 

Cost Based 

Selection 

Technical Evaluation Report All None 

Proposed Award All None 

Final Contract All Above 100,000 

Record of Bid Challenges All All 

Request for Expression of Interest All None 

Technical Evaluation Panel All None 

Short list All None 

Quality Based 

Selection and Proposal Documents All None 

Selection 

under Fixed Technical Evaluation Report for 

Budget QBS only All None 

Proposed A ward All Above 100,000 

Final Contract All Above 100,000 

Record of Bid Challenges All All 

Least-Cost Request for Expression of Interest All None 

Selection Technical Evaluation Panel All None 

Short list All None 

A;-""NEX VI- 55 

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MCC 

All 

All 

Above 

500,000 

Above 

500.000 

Above 

100,000 

Above 

500,000 

Above 

100,000 

Above 

100,000 

Above 

100,000 

All 

Above 

500,000 

Above 

500,000 

Above 

100,000 

Above 

500,000 

Above 

100,000 

Above 

100.000 

Above 

100,000 . 

All 

None 

None 

Above 

100,000 
Review of Procurement Decisions: Consultant Services 

Level of Review 

(Thresbolds Expressed in US$) 

Procurement MCA-Namibia Governing Body Procedure or Decision Director or MCC 

Method Procurement or MCA-Namibia 

Proposal Documents All None None 

Proposed Award All None Above 

100.000 

Final Contract All Above 100,000 None 

Record of Bid Challenges All All All 

Request for Expression of Interest All None None 

Technical Evaluation Panel All None None 

Short list All None Above 

50,000 

Selection 

Based on Standard Solicitation Documents All None None 

Consultant's Technical Evaluation Report Qualifications 

All None None 

Proposed A ward All None None 

Final Contract All Above 50,000 Above 

50,000 

Record of Bid Challenges All All All 

Proposed Award All None Above 

50,000 

Single-Source Above Selection Final Contract All Above 50,000 50,000 

Record of Bid Challenges All All All 

Short list All None Above 

50,000 

Technical Evaluation Panel All None Above 

50,000 

Selection of 

Individual Technical Evaluation Report AIl None None 

Consultants Proposed A ward AIl None None 

Final Contract AIl Above 50,000 Above 

50,000 

Record of Bid Challenges AIl AIl All 

A~l\EX VI - 56 
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Procedure or 

Method 

All 

Procurement 

Actions 

Review of Procurement Decisions: Consultant Services 

Level of Review 

(Thresholds Expressed in USS) 

MCA-Namibia Governing Body Decision Diredorof MCC 

Procurement of MCA-Namibia 

For all contract awards 

approved previously if 

increases value of If increases 

contract, or raises a value of Contract Modifications and All contract which did not 

contract by Change Orders require approval above an 

approval threshold or if 10% or 

extends contract original more 

term by 25% or more 

without value increase. 

A~~EXVI -57 
._----_._-------------_._. 

MCA-NAMIBIA PROCUREMENT RULES ATTACHMENT 2 

GLOSSARY OF TERMS 

Bid Challenge System shall have the meaning set forth in Part 5. 

Blanket Purchase Agreement or BPA shall have the meaning setforth in Section IB, Par. 4.5.2. 

Consultant's QUalifications or CBS shall have the meaning set forth in Section 1 B, Par. 3.7. 

Compact means the Millennium Challenge Compact entered into between the United States of America. 

acting through the Millennium Challenge Corporation, and the Republic of Namibia. 

Competitive Bidding or CB shall have the meaning setforth in Section lA, Par. 1.3. 

Direct Contracting shall have the meaning setforth in Section lA, Pars. 3.6 and 3.7. 

dgMarket shall have the meaning set forth in Section lA, Par 2. 7. 

Fixed Budget or FBS shall have the meaning set forth in Section IB, Par. 3.5. 

Fixed Price Contract shall have the meaning set forth in Section IB, Par. 4.1. 

Force Account shall have the meaning setforth in Section lA, Par. 3. 8. 

General Procurement Notice shall have the meaning setforth in Section lA, Par. 2.7. 

Indefinite Delivery and Indefinite Quantity Contract or IDIQ Contract shall have the meaning set forth 

in Section IB, Par. 4.5.1. 

Instructions to Consultants or ITC shall have the meaning set forth in Section 1 B, Par. 2.11. 

Least-Cost Selection or LCS shall have the meaning set forth in Section 1 B, Par. 3.6. 

Letter of Invitation or LOI shall have the meaning set forth in Section 1 B, Par. 2.10. 

Limited Bidding or LB shall have the meaning set forth in Part lA, Par.3.2. 

MCA-Namibia means the National Planning Commission of the Republic of Namibia, in its capacity as 

the accountable entity responsible to oversee, manage and implement the Program, on behalf of the 

Republic of Namibia. 

MCC means the Millennium Challenge Corporation. 

}~fCC Cost Principles means MCC's "Cost Principles for Cost-Reimbursement Contracts under AfCCFinanced Grants" and "Cost Principles for Government Affiliates Involved in MCC Compact 

Implementation, " both located on MCC's website at WWW.111CC.goV. 

Performance Based Procurement or Output Based Procurement shall have the meaning set forth in 

Section lA, Par. 3.14. 

Procurement Plan shall have the meaning setforth in Section lA, Par. 1.16.1. 

A~i'iEX VI - 58 
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Procurement Performance Report shall have the meaning set forth in Part 2. 

Procurement Principles shall have the meaning setforth in Section IA. Par 1.2.1 and Section IB, Par. 

1.4.1. 

Procurement Rules or Rules shall have the meaning set forth in Part 1. Preamble. 

Project(s) shall have the meaning set forth in Part 1, Preamble. 

Quality Based Selection or QBS shall have the meaning setforth in Section lB. Pars.3.2 thru 3.2. 

Quality Cost Based Selection or QCBS shall have the meaning setforth in Section IB, Par. 1.5. 

Request for Expression of Interest or EOI shall have the meaning set forth in Section 1 B, Par. 2.5.2. 

Requestfor Proposals or RFP shall have the meaning setforth in Section IB, Par. 2.9. 

Single-Source Selection or SSS shall have the meaning set forth in Section 1 B, Pars. 3.9 thru 3.13. 

Shopping shall have the meaning setforth in Section lA, Par. 3.5. 

Specific Procurement Notice shall have the meaning set forth in Section lA, Par. 2.8 and Section IB, 

Par. 2.5.2. 

Standard Bidding Documents shall have the meaning set forth in Part 3. 

Standard Proposal Documents shall have the mem1ing setforth in Part 3. 

Standard Solicitation Documents shall have the meaning setforth in Part 3. 

Supplemental Agreement shall have the meaning setforth in Section lA, Par. 3.10. 

Terms of Reference or TOR shall have the meaning set forth in Section 1 B, Par. 2.3. 

Time-Based Contract shall have the meaning set forth in Section 1 B, Par. 4.2. 

Two-Stage Bidding shall have the meaning setforth in Section lA, Par. 2.6. 

UNDB Online shall have the meaning setforth in Section lA, Par. 2.7. 

A~:-';EX VI - 59 
FIRST AMENDMENT

TO

MILLENNIUM CHALLENGE COMPACT

BETWEEN

THE UNITED STATES OF AMERICA

ACTING THROUGH

THE MILLENNIUM CHALLENGE CORPORATION

AND

THE REPUBLIC OF NAMIBIA
FIRST AMENDMENT TO

MILLENNIUM CHALLENGE COMPACT

This FIRST AMENDMENT TO MILLENNIUM CHALLENGE COMPACT (this

"Amendment"), dated as of November 10, 2008 is made by and between the United States of

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

corporation ("MCC"), and the Republic of Namibia ("Namibia") (each referred to herein

individually as a "Party" and collectively, as the "Parties"). All capitalized terms used in this

Amendment that are not otherwise defined herein have the meanings given to such terms in the

Compact (as defined below).

RECITALS

WHEREAS, the Parties entered into that certain Millennium Challenge Compact by and

between the United States of America, acting through MCC, and Namibia, on July 28, 2008 (the

"Compact"), pursuant to which MCC granted to Namibia, subject to the terms and conditions of

the Compact, an amount not to exceed Three Hundred Four Million Four Hundred SeventySeven Thousand Eight Hundred Sixteen United States Dollars (US$304,477,816) for a Compact

goal to reduce poverty through economic growth in Namibia;

WHEREAS, the Parties desire to amend certain parts of the Compact as more fully

described herein;

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and

agreements set forth herein and in the Compact, the Parties hereby agree as follows:

AMENDMENTS

1. Amendment to Section 7.1.

Section 7.1 (Domestic Requirements) of the Compact is amended and restated to read as follows:

"Section 7.1 Domestic Requirements. Before this Compact enters into force,

Namibia will take all necessary steps to ensure that immediately upon this

Compact entering into force (a) this Compact and the PIA and all of the

provisions of this Compact and the PIA are valid and binding and are in full force

and effect in Namibia, and (b) this Compact, the PIA and any other agreement

entered into in connection with this Compact to which Namibia and MCC are

parties (if so stipulated therein) are international agreements."

GENERAL PROVISIONS

2. Further Assurances.

Each Party hereby covenants and agrees, without necessity of any further consideration, to

execute and deliver any and all such further documents and take any and all such other action as

may be reasonably necessary or appropriate to carry out the intent and purpose of this

Amendment.
3. Effect of this Amendment.

From and after the Amendment Effective Date (as defined below), the Compact and this

Amendment shall be read together and construed as one document, and each reference in the

Compact to the "Compact," "hereunder," "hereof" or words of like import referring to the

Compact, and each reference to the "Compact," "thereunder," "thereof' or words of like import

in any supplemental agreement or in any other document or instrument delivered pursuant to the

Compact or any supplemental agreement, shall mean and be construed as a reference to the

Compact, as amended by this Amendment.

4. Limitations.

Except as expressly amended by this Amendment, all of the provisions of the Compact remain

unchanged and in full force and effect.

5. Amendment Effective Date.

This Amendment 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 Amendment (the "Amendment Effective

Date").

6. Domestic Requirements.

The parties acknowledge that this Amendment may be effected through the replacement of page

14 of the Compact with an amended page reflecting the amended language as memorialized

herein. This replacement page is included as the last page to this Amendment, which the parties

shall initial to signify their accord to the replacement page and either party may, at its own

discretion, rely on this replacement page for the Compact.

7. Governing Law.

The Parties acknowledge and agree that this Amendment is an international agreement entered

into for the purpose of amending the Compact and as such will be interpreted in a manner

consistent with the Compact and will be governed by the principles of international law.

8. Counterparts.

This Amendment may be executed in counterparts, each of which shall constitute an original, but

when taken together, shall constitute one instrument.

9. Provisional Application.

Upon signature of this Amendment, the Parties will provisionally apply this Amendment until

the Amendment Effective Date.

SIGNATURE PAGE BEGINS ON THE NEXT PAGE

2
IN WITNESS WHEREOF, the undersigned, duly authorized by their respective

governments, have signed this Amendment as of the date first written above and this

Amendment shall enter into force in accordance with the terms hereof.

FOR MILLENNIUM CHALLENGE

CORPORATION, ON BEHALF OF THE

UNITED STATES OF AMERICA

Name: John Hewko

Title: Vice President, Compact

Development

FOR THE REPUBLIC OF NAMIBIA

Name: Professor Peter H. Katjavivi

Title: Director-General, National Planning

Commission

SIGNATURE PAGE TO FIRST AMENDMENT TO MILLENNIUM CHALLENGE COMPACT

BETWEEN THE UNITED STATES OF AMERICA

ACTING THROUGH THE MILLENNIUM CHALLENGE CORPORATION

AND THE REPUBLIC OF NAMIBIA
Section 6.1 United States Government will be subject to the jurisdiction of the courts or any

other body of Namibia.

ARTICLE 7.

ENTRY INTO FORCE

Section 7.1 Domestic Requirements. Before this Compact enters into force, Namibia will

take all necessary steps to ensure that immediately upon this Compact entering into force (a) this

Compact and the PIA and all of the provisions of this Compact and the PIA are valid and binding

and are in full force and effect in Namibia, and (b) this Compact, the PIA and any other

agreement entered into in connection with this Compact to which Namibia and MCC are parties

(if so stipulated therein) are international agreements.

Section 7.2 Conditions Precedent to Entry into Force. This Compact will not enter into force

unless and until each of the following conditions have been satisfied:

(a) the PIA must have been executed by the parties thereto and have become

effective;

(b) Namibia must have delivered to MCC:

(i) a certificate signed and dated by the Principal Representative of Namibia,

or such other duly authorized representative of Namibia acceptable to MCC, certifying that

Namibia has satisfied the requirements of Section 7.1;

(ii) a legal opinion from the Attorney General of Namibia (or other entity

acceptable to MCC), in form and substance satisfactory to MCC; and

(iii) a certified copy of the Instrument of Ratification evidencing the

ratification of this Compact by Namibia, which MCC may post on its website or otherwise make

publicly available; and

(c) MCC must determine that after signature of this Compact, Namibia has not

engaged in any action or omission that is inconsistent with the eligibility criteria for MCC

Funding.

Section 7.3 Date of Entry into Force. This Compact will enter into force on the later of (a) the

date of the last letter in an exchange of letters between the Principal Representatives confirming

that each Party has completed its domestic requirements for entry into force of this Compact and

(b) the date that all conditions set forth in Section 7.2 have been satisfied.

Section 7.4 Compact Term. This Compact will remain in force for five years after its entry

.

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

Section 7.5 Provisional Application. Upon signature of this Compact and ratification by

Namibia of this Compact and until it has entered into force in accordance with Section 7.3, the

Parties will provisionally apply the terms of this Compact, provided that no MCC Funding, other

PUCE NT PAGE TO MILLENNIUM CHALLENGE COMPACT, AS AMENDED NOVEMBER 10, 2008, BETWEEN THE UNITED n '

. TA 1 AMERICA ACTING THROUGH THE MILLENNIUM CHALLENGE CORPORATION AND THE REPUBLIC OF NAMIBIA

in'-ks CC 14 For the Republic of Namibia