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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 18-126
 

FOREIGN ASSISTANCE 

Millennium Challenge Compact 

Between the 

UNITED STATES OF AMERICA 

and NIGER 

Signed at Washington July 29, 2016 

with 

Annexes 
 

 

 

NOTE BY THE DEPARTMENT OF STATE 

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

(80 Stat. 271; 1 U.S.C. 113)— 

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

under the authority of the Secretary of State shall be competent 

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

treaties, and proclamations by the President of such treaties and 

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

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

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

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

or authentication thereof.” 
 

 

 

 

 

 

NIGER 

Foreign Assistance 

Millennium Challenge Compact 

signed at Washington July 29, 2016; 

Entered into force January 26, 2018. 

With annexes. 
MILLENNIUM CHALLENGE COMPACT 

BETWEEN 

THE UNITED STATES OF AMERICA 


ACTING THROUGH 


THE MILLENNIUM CIIA£LENGE CORPORATION 


AND 


THE REPUBLIC OF NIGER 


ACTING THROUGH 


THE MINISTRY IN CHARGE OF FOREIGN AFFAIRS AND COOPERATION 

ARTICLE 1. 

Section 1.1 

Section 1.2 

Section 1.3 

ARTICLE 2. 

Section 2.1 

Section 2.2 

Section 2.3 

Section 2.4 

Section 2.5 

Section 2.6 

Section 2.7 

Section 2.8 

ARTICLE 3. 

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 

Section 5.5 

MILLENNIUM CHALLENGE COMPACT 

TABLE OF CONTENTS 

GOAL AND OBJECTIVES .................................................................................... 1 


Compact Goal ...................................................................................................... 1 


Program Objective ............................................................................................... 1 


Project Objectives ................................................................................................ 1 


FUNDING AND RESOURCES ..............................................................................2 


Program Funding .................................................................................................2 


Compact Development Funding ..........................................................................2 


MCC Funding ......................................................................................................3 


Disbursement .......................................................................................................3 


Interest..................................................................................................................3 


Government Resources; Budget ..........................................................................3 


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


Taxes ....................................................................................................................4 


IMPLEMENTATION..............................................................................................5 


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


Government Responsibilities ...............................................................................5 


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


Accuracy of Information......................................................................................6 


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


Procurement and Grants .......................................................................................7 


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


Audits; Reviews ...................................................................................................8 


COMMUNICATIONS ............................................................................................9 


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


Representatives ....................................................................................................9 


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


TERMINATION; SUSPENSION; EXPIRATION ...............................................10 


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


Consequences ofTermination, Suspension or Expiration ................................. 11 


Refunds; Violation .............................................................................................11 


Late Payment Interest ........................................................................................11 


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


1 
ARTICLE 6. COMPACT ANNEXES; AMENDMENTS; GOVERNING LAW ...................... 12 


Section 6.1 Annexes..............................................................................................................12 


Section 6.2 Amendments and Modifications ........................................................................12 


Section 6.3 Inconsistencies ...................................................................................................12 


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


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


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


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


Compact Expiration and Termination ................................................................ 13 


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


ARTICLE 7. ENTRY INTO FORCE ..........................................................................................13 


Section 7 .1 Domestic Procedures ......................................................................................... 13 


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


Section 7.3 Date ofEntry 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: Compact Monitoring & Evaluation Summary 

Annex IV: Conditions Precedent to Disbursement of Compact Development Funding 

Annex V: Additional Conditions Precedent to Entry into Force 

Annex VI: Definitions 

11 
MILLENNIUM CHALLENGE COMPACT 

PREAMBLE 

This MILLENNIUM CHALLENGE COMP ACT {this "Compact') is between the United 

States ofAmerica, acting through the Millennium Challenge Corporation, a United States 

government corporation ("MCC}, and the Republic ofNiger ("Niger'}, acting through the 

Ministry in Charge ofForeign Affairs and Cooperation {the "Government} {individually, a 

"Party'' and collectively, the "Parties''). Capitalized terms used in this Compact will have the 

meanings provided in Annex VI. 

Recognizing that the Parties are committed to the shared goals ofpromoting economic 

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

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

economic freedom and investments in people; 

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

to determine the priorities for the use ofMCC assistance and developed and submitted to MCC a 

proposal for such assistance to achieve lasting economic growth and poverty reduction; and 

Recognizing·that MCC wishes to help Niger implement the program described herein to 

achieve the goal and objectives described herein {as such program description and objectives 

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

The Parties hereby agree as follows: 

ARTICLE I. 

GOAL AND OBJECTIVES 

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

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

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

Section 1.2 Program Objective. The objective ofthe Program {the "Program Objective") is 

to increase rural incomes by improving the sustainable productive use ofnatural resources for 

agricultural production and improving trade and market access for agricultural products. The 

Program consists ofthe projects described in Annex I {each a "Project' and collectively, the 

"Projects''). 

Section 1.3 Project Objectives. The objective of each ofthe Projects (each a "Projed 

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

(a) increase rural incomes through improvements in agricultural productivity and 

increases in sales resulting from modernized irrigated agriculture and flood management systems 

with sufficient trade and market access; and 
(b) increase incomes for small-scale agricultural- and livestock-dependent families in 

Eligible Communes and Livestock Corridors in rural Niger by improving crop and livestock 

productivity, sustaining natural resources critical to production, supporting growth of agricultural 

enterprises and increasing market sales oftargeted commodities. 

ARTICLE2. 

FUNDING AND RESOURCES 

Section 2.1 Program Funding. Upon entry into force ofthis Compact in accordance with 

Section 7.3, MCC will grant to the Government, under the terms ofthis Compact, an amount not 

to exceed Four Hundred Nine Million Eight Hundred Fifty Thousand United States Dollars (US$ 

409,850,000) ("Program Funding") for use by the Government to implement the Program. The 

allocation ofProgram Funding is generally described in Annex II. 

Section 2.2 Compact Development Funding. 

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

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

amount not to exceed Twenty-Seven Million One Hundred Seventy Four Thousand United States 

Dollars (US$ 27,174,000) ("Compact Development Funding") under Section 609(g) ofthe 

Millennium Challenge Act of2003, as amended (the "MCA Acf'), for use by the Government to 

facilitate implementation ofthis Compact, including for the following purposes: 

(i) financial management and procurement activities; 

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

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

capital equipment; 

(iii) monitoring and evaluation activities; 

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

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

MCC. 

The allocation ofCompact Development Funding is generally described in Annex II. 

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

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

Compact Development Funding only, as ofthe date this Compact is signed by MCC and the 

Government. 

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

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

2 

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


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


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

the excess amount, thereby reducing the amount ofthe Compact Development Funding available 

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

Compact Development Funding granted to the Government under Section 2.2(a) will be reduced 

by the Excess CDF Amount, and MCC will have no further obligations with respect to such 

Excess CDF Amount. 

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

Government an amoU.nt equal to all or a portion of such Excess CDF Amount as an increase in 

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

conditions ofthis Compact applicable to Program Funding. 

Section 2.3 MCC Funding. Program Funding and Compact Development Funding are 

collectively referred to in this Compact as "MCC Funding," and includes any refunds or 

reimbursements ofProgram Funding or Compact Development Funding paid by the Government 

in accordance with this Compact. 

Section 2.4 Disbursement. In accordance with this Compact and the Program Implementation 

Agreement, MCC will disburse MCC Funding for expenditures incurred in furtherance ofthe 

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

conditions precedents, the proceeds ofDisbursements will be made available to the Government, 

at MCC's sole election, by (a) deposit to one or more bank accounts established by the 

Government and acceptable to MCC (each, a "Permitted Account') or (b) direct payment to the 

relevant provider of goods, works or services for the implementation ofthe Program. MCC 

Funding may be expended only for Program expenditures. 

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

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

prior to such funding being used for a Program purpose. 

Section 2.6 Government Resources; Budget. 

(a) The Government will: (i) provide any funds, and create any associated accounts, 

that may be necessary to effectuate Section 2.8 hereof and Annex IV to the Program 

Implementation Agreement; and (ii) provide all other funds and other resources, and will take all 

other actions that are necessary to carry out the Government's responsibilities under this 

Compact. 

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

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

budget for the duration ofthe Program. 

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

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

this Compact and the Program. 

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


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


the activities contemplated under this Compact and the Program. 


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

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

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

the following purposes: 

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

other quasi-military organization or unit; 

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

substantial displacement ofUnited States production; 

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

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

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

the "MCC Environmental Guidelines"); or 

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

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

sterilizations as a method offamily 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 

offamily planning. 

Section 2.8 Taxes. 

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

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

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

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

regional, local or other governmental or taxing authority of or in Niger). Specifically, and 

without limiting the generality ofthe foregoing, MCC Funding will be free from the payment of 

(i) any tariffs, customs duties, import taxes, export taxes and other similar charges on any goods, 

works or services introduced into Niger in connection with the Program; (ii) sales tax, value 

added tax, excise tax, property transfer tax and other similar charges on any transactions 

involving goods, works or services in connection with the Program; (iii) taxes and other similar 

charges on ownership, possession or use of any property in connection with the Program; and 

(iv) taxes and other similar charges on income, profits or gross receipts attributable to work 

performed in connection with the Program and related social security taxes and other similar 

charges on all natural or legal persons performing work in connection with the Program except 

(1) natural persons who are citizens or permanent residents ofNiger and (2) legal persons formed 

under the laws ofNiger (but excluding MCA-Niger and any other entity formed for the purpose 

ofimplementing the Government's obligations hereunder). 

4 

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

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

Agreement. Such mechanisms may include exemptions from the payment ofTaxes that have 

been granted in accordance with applicable law, refund or reimbursement ofTaxes by the 

Government to MCC, MCA-Niger or to the taxpayer, or payment by the Government to MCANiger or MCC, for the benefit ofthe Program, of an agreed amount representing any collectible 

Taxes on the items described in Section 2.8(a). 

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

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

another party as designated by MCC) the amount ofsuch Tax in United States dollars or the 

currency ofNiger within sixty (60) days (or such other period as may be agreed in writing by the 

Parties or agreed upon in the Program Implementation Agreement) after the Government is 

notified in writing (whether by MCC or MCA-Niger) that such Tax has been paid. Failure to 

refund such amount within the specified time will result in interest accruing on the unpaid 

amount in accordance with Section 5.4. 

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

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

time to time execute and deliver, or cause to be executed and delivered, such other instructions, 

instruments or documents, and to take or cause to be taken such other actions as may be 

necessary or appropriate in the determination ofMCC in order to implement this Section 2.8 of 

the Compact. Such further assurances may include, without limitation, (i) passage of an "arrete 

d'application" (or such similar document or documents having the same legal effect), in form 

and substance satisfactory to MCC to provide specific instructions to Government agents with 

respect to their role in the implementation ofthe exemption from Taxes required by this 

Compact; or (ii) provision of an attestation d 'exoneration to appropriate beneficiaries ofthe tax 

exemption described in this Compact. 

ARTICLE3. 

IMPLEMENTATION 

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

providing further detail on the implementation arrangements, fiscal accountability and 

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

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

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

Section 3 .2 Government Responsibilities. 

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

implementation ofthe Program. 

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

to be established through the passage of a decree (an "Establishment Decree") as the 

accountable entity to implement the Program and to exercise and perform the Government's 

5 

rights and obligations to oversee, manage and implement the Program, including without 

limitation, managing the implementation of Projects and their Activities, allocating resources and 

managing procurements. Such entity will be referred to herein as the Millennium Challenge 

Account-Niger ("MCA-Niger"), and will have the authority to bind the Government with regard 

to all Program activities. The designation contemplated by this Section 3.2(b) will not relieve 

the Government of any obligations or responsibilities set forth hereunder or under any related 

agreement (including, without limitation, the PIA), for which the Government remains fully 

responsible. MCC hereby acknowledges and consents to the designation in this Section 3.2(b). 

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

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

and the Program unless MCC agrees otherwise in writing. 

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

Program Objective and the Project Objectives during the Compact Term (including, without 

limiting Section 2.6(a), funding all costs that exceed MCC Funding and are required to carry out 

the terms hereof and achieve such objectives, unless MCC agrees otherwise in writing). 

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

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

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

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

the Program Guidelines. 

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

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

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

or portions ofIntellectual Property as MCC sees fit in any medium, now known or hereafter 

developed, for any purpose whatsoever. 

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

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

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

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

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

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

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

complete in all material respects. 

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

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

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

Program. Such writings are referred to herein as "Implementation Letters." 

6 

Section 3.6 Procurement and Grants. 

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

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

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

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

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

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

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

accurate description ofthe goods, works and services to be acquired; 

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

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

effective and timely basis; and 

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

example, by a comparison ofprice quotations and market prices, will be paid to procure goods, 

works and services. 

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

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

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

acceptable to MCC. In furtherance ofthis requirement, and prior to the issuance of any Grant, 

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

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

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

website. 

Section 3.7 Records; Accounting; Covered Providers; Access. 

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

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

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

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

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

originals or copies of such Compact Records. 

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

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

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

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

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

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

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

legal requirements. 

7 

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

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

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

responsible for an audit contemplated herein or otherwise conducted in furtherance ofthis 

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

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

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

Section 3.8 Audits; Reviews. 

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

Government will, on at least a semi-annual basis, conduct, or cause to be conducted, financial 

audits ofall Disbursements ofMCC Funding covering the period from signing ofthis Compact 

until the earlier ofthe following March 31 or September 30 and covering each six-month period 

thereafter ending March 31 and September 30, through the end ofthe Compact Term. In 

addition, upon MCC's request, the Government will ensure that such audits are conducted by an 

independent auditor approved by MCC and named on the list oflocal auditors approved by the 

Inspector General or a United States-based certified public accounting firm selected in 

accordance with MCC's Guidelinesfor Financial Audits Contracted by the Millennium 

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

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

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

audit must be completed and the audit report delivered to the Inspector General no later than 

ninety (90) days after the applicable audit period, or such other period as the Parties may 

otherwise agree in writing. 

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

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

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

subject to the applicable audit requirements contained in the Uniform Administrative 

Requirements, Cost Principles, andAudit Requirements for Federal Awards, issued by the 

United States Office ofManagement and Budget ("OMB"); (ii) a United States for-profit 

Covered Provider, on the other hand, state that the United States for-profit organization is subject 

to audit by the applicable United States Government agency, unless the Government and MCC 

agree otherwise in writing; and (iii) a non-US Covered Provider, on the other hand, state that the 

non-US Covered Provider is subject to audit in accordance with the Audit Guidelines. 

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

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

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

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

its records and financial statements as necessary. 

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

Government's use ofMCC Funding. 

8 

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

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

ARTICLE4. 

COMMUNICATIONS 

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

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

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

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

written notice to the other Party. 

ToMCC: 

Millennium Challenge Corporation 

Attention: Vice President, Compact Operations 

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

1099 Fourteenth Street, N.W. 

Suite 700 

Washington, DC 20005-3550 

United States ofAmerica 

Facsimile: (202) 521-3700 

Telephone: (202) 521-3600 

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

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

To the Government: 

Presidency ofthe Republic ofNiger 

Attention: Directeur de Cabinet 

(with a copy to Directeur de Cabinet Adjoint) 

Presidence de la Republique du Niger 

B.P. 550 Niamey 

Niger 

Telephone: +227 20 72 24 72 

Email: dircab@presidence.ne 

To MCA-Niger: 

Upon establishment ofMCA-Niger, MCA-Niger will notify the Parties ofits contact 

details. 

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

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

Staff to the President ofthe Republic ofNiger, and MCC will be represented by the individual 

9 

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

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

one or more additional representatives ofthe Government or MCC, as appropriate (each, an 

''Additional Representative") for all purposes relevant to implementation ofthis Compact except 

Section 6.2(a). The Government hereby designates the Director General ofMCA-Niger as an 

Additional Representative. MCC hereby designates the Deputy Vice President, Department of 

Compact Operations, Africa and the Resident Country Director for Niger as Additional 

Representatives. A Party may change its Principal Representative to a new representative that 

holds a position of equal or higher authority upon written notice to the other Party. 

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

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

notes. 

ARTICLES. 

TERMINATION; SUSPENSION; EXPIRATION 

Section 5.1 Termination; Suspension. 

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

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

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

notice. 

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

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

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

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

include but are not limited to the following: 

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

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

Compact or the Program; 

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

Program Objective or any ofthe Project Objectives will not be achieved during the Compact 

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

(iii) a use ofMCC Funding or continued implementation ofthis Compact or 

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

hereafter in effect; 

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

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

the United States; 

10 

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

would render Niger ineligible to receive United States economic assistance under Part I ofthe 

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

application of any provision ofsuch act or any other provision oflaw; 

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

criteria used to determine the eligibility ofNiger for assistance under the MCA Act; and 

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

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

engaged in drug trafficking. 

Section 5.2 Consequences ofTermination, Suspension or Expiration. 

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

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

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

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

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

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

Compact ifMCC determines that the Government or other relevant person or entity has 

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

Section 5.3 Refunds; Violation. 

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

used for any purpose in violation ofthe terms ofthis Compact, then MCC may require the 

Government to refund to MCC in United States Dollars the value ofthe misused MCC Funding, 

interest, earnings and/or asset, plus Late Payment Interest within thirty (30) days after the 

Government's receipt ofMCC's request for refund. The Government will not use MCC 

Funding, proceeds thereof or Program Assets to make such payment. 

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

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

Compact Term and for a period of(i) five (5) years thereafter or (ii) one (1) year after MCC 

receives actual knowledge of such violation, whichever is later. 

Section 5 .4 Late Payment Interest. Ifthe Government fails to pay any amount under this 

Compact or the PIA when due (including amounts under Section 2.8(c) and 5.3(a)), interest will 

be paid on such unpaid amount ("Late Payment Interest'). Late Payment Interest will accrue on 

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

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

amount is paid in full. Any such payment will first be credited against Late Payment Interest 

due, and once the Late Payment Interest due amount is extinguished, then payments will be 

credited against outstanding principal. 

11 

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

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

this Compact, provided that the terms of Section 2.8 will survive for only one hundred and 

twenty (120) days following this Compact's expiration. 

ARTICLE6. 

COMPACT ANNEXES; AMENDMENTS; GOVERNING LAW 

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

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

Section 6.2 Amendments and Modifications. 

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

agreement will specify how it enters into force. 

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

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

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

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

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

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

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

modification (1) is consistent in all material respects with the Program Objective and Project 

Objectives, (2) does not cause the amount of Program Funding to exceed the aggregate amount 

specified in Section 2.1 (as may be modified by operation of Section 2.2(e)), (3) does not cause 

the amount of Compact Developip.ent Funding to exceed the aggregate amount specified in 

Section 2.2(a), and (4) does not extend the Compact Term. 

(c) The Parties understand that any amendment ofthis Compact or any modification 

of any Annex pursuant to this Section 6.2 may be entered into by the Government without the 

need for further action by the Government (including any parliamentary action), or satisfaction 

of any additional domestic requirements ofNiger. 

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

(a) any Annex and any ofArticles 1 through 7, such Articles 1 through 7, as 

applicable, will prevail; or 

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

this Compact will prevail. 

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

governed by the principles ofinternational law. 

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

undertaken or existing under or in furtherance ofthis Compact or similar language will include 

12 

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

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

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

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

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

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

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

Expiration and Termination. 

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

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

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

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

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

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

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

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

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

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

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

its expiration in accordance with Section 5.1. 

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

the United States Government in the implementation ofthis Compact. MCC and the United 

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

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

United States Government or any current or former officer or employee ofMCC or the United 

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

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

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

Parties confirm their understanding that the activities ofthe United States Government, including 

those ofMCC, and those oftheir agents and advisors regarding this Compact are governmental 

and not commercial in nature. Accordingly, the Government agrees that MCC and the United 

States Government or any current or former officer or employee ofMCC or the United States 

Government will be immune from the jurisdiction of all courts and tribunals ofNiger for any 

claim or loss arising out of activities or omissions under this Compact. 

ARTICLE7. 

ENTRY INTO FORCE 

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

complete all ofits domestic requirements for this Compact and the PIA to enter into force. 

Section 7.2 Conditions Precedent to Entry into Force. Before this Compact enters into force: 

13 

(a) the PIA must have been signed by the parties thereto; 

(b) The Government must have delivered to MCC: 

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

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

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

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

Section 7 .2 have been met; 

(ii) a signed legal opinion from the Director General ofLegal and Consular 

Affairs, Ministry of Foreign Affairs ofNiger (or such other legal representative ofthe 

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

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

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

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

publicly available; 

(c) MCC will not have determined, at the time ofthis Compact's entry into force, that 

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

MCC Funding; and 

(d) The conditions set forth in Annex V have been satisfied. 

Section 7.3 Date ofEntry into Force. This Compact will enter into force on the date ofthe 

letter from MCC to the Government in an exchange ofletters confirming that MCC and the 

Government have completed their respective domestic requirements for entry into force ofthis 

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

MCC's satisfaction. 

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

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

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

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

terms ofthis Compact; provided that, no MCC Funding, other than Compact Development 

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

SIGNATURE PAGE FOLLOWS ON THE NEXT PAGE 

14 

IN WITNESS WHEREOF, each Party, through its duly authorized representative, has 

signed this Compact. 


Done at Washington, D.C., this 29th day ofJuly, 2016, in the English language. 


FOR THE UNITED STATES OF FOR THE REPUBLIC OF NIGER, acting 

AMERICA, acting through THE through THE MINISTRY IN CHARGE OF 

MILLENNIUM CHALLENGE FOREIGN AFFAIRS AND COOPERATION 

CORPORATION 

q 

Name: Ibrahim Yacoubou 

Title: Minister in Charge ofForeign Affairs 

and Cooperation 

SIGNATURE PAGE TO MILLENNIUM CHALLENGE COMPACT 


BETWEEN THE UNITED STATES OF .AMERICA 


ACTING THROUGH THE MILLENNIUM CHALLENGE CORPORATION 


AND THE REPUBLIC OF NIGER 


ACTING THROUGH THE MINISTRY IN CHARGE OF FOREIGN AFFAIRS AND COOPERATION 

ANNEX I 

PROGRAM DESCRIPTION 

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

Compact Term. 

A. PROGRAM OVERVIEW 

1. Background and Consultative Process. 

a. Background. 

MCC's Board ofDirectors selected Niger as eligible to develop a Millennium Challenge 

Compact in December 2012. Since passing the scorecard for the first time in 2012, Niger has 

consistently passed, meeting 12 indicators from FY13 through FY16, with a regularly passing 

Control of Corruption score. The Nigeriens have demonstrated a strong commitment to 

governance reforms, economic growth and investing in their people. In 2015, for example, Niger 

completed a $16.9 million MCC threshold program focusing on strengthening girls' education, 

reducing public corruption, streamlining business creation procedures and improving rights and 

access to land. 

The country's economic growth over the past 50 years has been hindered by a combination of 

climatic shocks, political instability, poor governance and more recently regional insecurity. 

Over the past decade, Niger has experienced volatile GDP performance ranging from negative 

growth to 12.5 percent. Broad-based development has been hampered by the predominance of 

agriculture and extractive sectors, which are subject to commodity price fluctuations. In 

addition, Niger's climate is one ofthe most variable and extreme in the world. Despite notable 

improvements made in Niger over the past few years, over 40 percent ofthe population still lives 

below the global poverty line ofless than $1.25 per day. High rates ofpoverty, population 

growth and gender inequality contribute to making Niger one ofthe world's poorest countries. 

Over 90 percent ofthe population relies on a single, three-month, highly capricious rainy season 

for agriculture and livestock production. Roughly 80 percent ofthe population lives in rural 

areas and relies on agriculture for their livelihood. Agricultural productivity has stagnated due to 

a lack of access to critical productive inputs such as improved seed, fertilizer, irrigation and 

extension services like technical production trainings. Frequent droughts and floods decimate 

crops and productive assets, undermining the population's ability to build their resilience and 

economic security. 

Sustainable natural resource management is lacking in this fragile environment and water and 

pasture resources are frequently over-utilized, causing severe erosion of once productive areas. 

Water resource management, community-based livestock and climate-resilient agriculture 

systems are critical to ensure adaptability, improve agricultural productivity and sustain water 

and land resources in Niger. 

The Program builds on the progress made by the Government's 3N Initiative (Nigeriens Nourish 

Nigeriens), which includes programs that seek to diversify agricultural production, use improved 
seed varieties, irrigate more land and improve nutrition. The Program also aligns with and 

supports the U.S. Agency for International Development's regional resilience initiative, 

Resilience in the Sahel Enhanced ("RISE'), which is a set ofthe U.S. Agency for International 

Development ("USAID") development and humanitarian assistance projects that focus on multisectoral resilience and specific agricultural value chains. 

b. Consultative Process. 

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

strategic consultative process to inform the Program's focus and design. During the preliminary 

analysis phase, local and national government, civil society and the private sector were engaged 

in multiple stages, and contributed to the identification of binding constraints and an 

understanding ofhow these constraints impact different populations and sectors in Niger. As the 

Compact development process continued, the Government and MCC held consultations with the 

Government's 3N initiative, relevant ministries, tax administrators and judges, and local and 

international non-governmental organizations regarding issues with access to water and capacity 

to provide critical training and management services. In addition, public consultations were held 

to better understand barriers to trade. 

To involve the private sector, the Government engaged over 100 business leaders and 

entrepreneurs from both formal and informal enterprises across sectors. Additionally, the 

Government held a workshop with representatives from formal and informal agricultural 

enterprises to understand their need for finance and business development services. Nearly 200 

private producers and agricultural micro-, small- and medium-enterprises were surveyed to 

inform the design ofthe Facility (as defined in Part B below). The Government also consulted 

with the private financial sector including Niger's largest micro-finance institutions. 

2. Description of Program and Beneficiaries. 

a. Program Description. 

The Program will directly address the underlying causes oftwo binding constraints to economic 

growth and investment in Niger: lack of access to water for productive uses, which inhibits 

agricultural productivity and household food security; and physical access and institutional 

barriers to trade, which create high transaction costs and lower sales volume. 

The Program seeks to raise rural incomes by increasing agricultural and livestock production by 

boosting production through increases in areas under cultivation and improvements in yields. 

The Program will achieve this through a combination ofpolicy reforms, infrastructure 

investments, access to finance and services for smallholder producers, facilitation of partnerships 

and improvements to agricultural and livestock production and market platforms. The Program 

consists oftwo Projects: 

(i) the Irrigation and Market Access Project, which Project Objective is to 

increase rural incomes through improvements in agricultural productivity and increases in sales 

resulting from modernized irrigated agriculture and flood management systems with sufficient 

trade and market access; and 

ANNExI-2 
(ii) the Climate-Resilient Communities Project, which Project Objective is to 

increase incomes for small-scale agricultural- and livestock-dependent families in Eligible 

Communes and Livestock Corridors in rural Niger by improving crop and livestock productivity, 

sustaining natural resources critical to production, supporting growth of agricultural enterprises, 

and increasing market sales of targeted commodities. 

As a result ofthese interventions, farming, fishing and pastoral households in the intervention 

areas will be able to increase their agricultural and livestock production and in turn, raise their 

income through improved access to markets and increased trade. In addition, the beneficiaries 

will receive assistance to improve water resource management (including irrigation), strengthen 

community-based livestock and climate-resilient agriculture systems, manage water resources 

and increase sustainability and resilience against climate risks and shocks. At a national level, 

this Compact will improve national water resource planning and management and expand private 

sector participation in fertilizer distribution. 

b. Intended Beneficiaries. 

The principal, intended direct beneficiaries ofthe Program are expected to be 489,359 

households (approximately 3.9 million people). A breakdown ofthe number of direct 

beneficiaries is provided below; Annex III provides more detail on beneficiary calculations. The 

Parties acknowledge that the numbers below do not include indirect beneficiaries that may 

benefit from the Program. 

1.1 Irrigation Perimeter Development Activity ...,..,l-~•..,,...2-Man-, -:r.'-,:k-::-g::-::-eh}.....,,=en_t_$:-e,,...,.iv-~.,,...,,e....,.$-:­ • ...,,..,..,...... ~..,..ar-k""""~=i..,,..F""'"ac..,...i..,..Iit..._d.,...ii'"""oil::-.-A-ct-iv_i_cy;___....,....-.--..,.---; 37•656 

1.3 Roads for Market Access Activity 447,501 

r.4 ·::'PolicyReform Activity,, , ~ , .., ~""', . ·Natioxial'.. 

2. Climate-Resilient Communities Project' 

2.2 Climate-Resilient Agriculture (CRA) Activity 25,736 

1 The Climate-Resilient Communities Project will be implemented by the Government and will be co-financed by 

MCC and the World Bank. The PRAPS Activity will benefit approximately 3,414,436 people. This number 

represents the total number ofpeople who will benefit from the animal vaccination component. About 114,288 of 

these individuals will also benefit from the transhumance pasture improvement sub-activity and about 152,467 will 

benefit from the market infrastructure sub-activity. MCC Funding will finance approximately 50% ofthe total 

transhumance pasture improvement sub-activity (114,288 beneficiaries) and 30% ofthe market infrastructure subactivities (152,467 beneficiaries). Using MCC's beneficiary calculation methodology, estimates for individuals 

benefiting from World Bank financing would be 114,288 (50%) for transhumance pasture improvement and 355,756 

beneficiaries (70%) for market infrastructure. The CRA Activity will benefit about 25,736 people in 16 communes, 

representing 23% ofthe total number ofbeneficiaries for that activity. The World Bank funding will benefit the 

remaining 77%, or approximately 84,664 beneficiaries. These estimates may change once Corridor Investment 

Plans and the ICRIPs are adopted. 

ANNEXI-3 

B. DESCRIPTION OF PROJECTS 

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

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

addition, specific Activities that will be undertaken within each Project, including sub-activities, 

are also described. 

1. Irrigation and Market Access Project. 

a. Summary ofProject and Activities. 

The Irrigation and Market Access Project is designed to increase rural incomes through 

improvements in agricultural productivity and increases in sales resulting from modernized 

irrigated agriculture and flood management systems with sufficient trade and market access. 

Given the increasing frequency of drought in Niger, investing in large-scale irrigation 

infrastructure in the Dosso and Tahoua regions2 will result in increased water availability for 

Project beneficiaries during the wet and dry seasons. Through technical training in water and 

natural resource management, savings, improved production techniques, marketing, literacy and 

numeracy, nutrition, sanitation and hygiene education and other complementary skills, women 

and men in the irrigated perimeters will be able to utilize the water more productively and to 

minimize health risks associated with use ofwater points for both agriculture and livestock and 

domestic and household purposes. In addition, by investing in roads that are linked to the 

irrigation perimeters, project beneficiaries will be able to more effectively access inputs, services 

and markets and sell their increased production. These investments in infrastructure, human 

capacity and market and performance-oriented management systems will enable Niger's farmers 

to move toward more commercialized irrigated agriculture as the foundation for sustained 

growth in rural incomes. 

The Irrigation and Market Access Project consists ofthe following Activities: 

(i) Irrigation Perimeter Development Activity. 

MCC Funding will be used to rehabilitate the Konni irrigation system and develop new irrigated 

perimeters in the Dosso-Gaya area (the "Irrigation Perimeter Development Activity"). 

Specifically, MCC Funding will support: 

(a) Construction costs, including, without limitation, (1) for Konni, the 

rehabilitation ofthe irrigation system oftwo cascading surface runoff dams, a downstream 

collection reservoir and supply channel and the approximately 2,452 hectares ("ha") perimeter in 

the Maggia Valley, including soil conservation in the catchment to stem the siltation problem, 

and repairs and rehabilitation ofthe irrigation system to reduce water losses and improve 

efficiency; (2) for the Dosso-Gaya area, the development ofthe Ouna-Kouanza (zones 4, 5, 6 and 

7) and Sia (lower terrace) perimeters, the construction offlood protection dikes and access roads, 

2 The preliminary list of communes that are expected to benefit from the large-scale irrigation infrastructure include 

Birni N'Konni, Tanda, and Sambera. The Parties will agree in writing to any modification to the final list of 

communes at the conclusion of any required feasibility and design studies. 

ANNExl-4 
the layout and levelling of parcels (with bunds separating them), water control gates and pumps 

for intakes and/or drainage structures to enable full water control during the river's high season, 

and additionally for Sia, the pumping and water distribution networks for mixed crop irrigated 

agriculture; and (3) any environmental, social, health and safety measures required for 

construction; and 

(b) Non-construction costs, including, without limitation, studies, construction 

supervision, environmental and social mitigation and enhancement activities, livelihoods 

restoration and resettlement activities and project management costs. 

For the avoidance of doubt, the Parties agree that MCC Funding will not be used to raise the 

height of either ofthe cascading surface runoff dams in Konni. 

(ii) Management Services and Market Facilitation Activity. 

MCC Funding will be used to establish a suite of institutional and management support activities 

designed to ensure the achievement ofProject Objectives in the irrigated perimeters targeted by 

the Irrigation Perimeter Development Activity (the "Management Services and Market 

Facilitation Activity"). The Management Services and Market Facilitation Activity will be 

implemented using a community-based approach to provide services that address the entire 

production chain, including the supply of agricultural inputs, the yields obtained by farming, the 

marketing ofproduce and the sustainable use ofnatural resources. Specifically, MCC Funding 

will support: 

(a) Consistent with the Land Allocation Core Principles (described in Annex 

III ofthe PIA), activities targeting land tenure security and mitigation ofthe risk ofland conflict 

in Project intervention zones, by (1) establishing and implementing a framework for land 

allocation, based on (i) development oflocal land tenure profiles, (ii) participatory development 

of core local land allocation standards and of a transparent process for undertaking the land 

allocation, and (iii) completing the land allocation and formalizing land property rights; and (2) 

building capacity for local land governance including (i) reinforcement oflocal institutional 

capacity for land tenure and land conflict management, and (ii) integrated local land use 

planning; 

(b) the establishment ancj. empowerment of single-purpose, self-governing, 

self-financing non-profit irrigation water user associations ("IWUAs") to undertake irrigation 

management functions in the Program intervention areas, including preparatory studies, technical 

support and capacity building for the newly formed IWUAs; and 

(c) Strengthening the capacity of beneficiaries, through new or existing 

savings groups and existing producer groups including women's groups and youth groups, to: (1) 

develop cropping calendars that help grow commodities to market demand and pricing signals; 

(2) participate in savings groups to improve business skills and save capital to operationalize 

their cropping calendars; (3) increase use of appropriate fertilizers and improved seeds; (4) 

monitor and adapt to changing conditions in the environment to maximize benefits from 

ecosystem services; (5) participate in producer organizations to improve their negotiation 

ANNExl-5 
position at the farm gate and in the market place; ( 6) invest in infrastructure to store, process and 

add value to their production; and (7) increase sales of commodities and processed products. 

(iii) 	 Roads for Market Access Activity. 

MCC Funding will be used to reduce trade barriers and improve physical market access through 

targeted improvements ofthe road network serving the Dosso-Gaya perimeters and linking them 

to the rest ofthe country (the "Roads/or Market Access Activity"). Specifically, MCC Funding 

will support the following sub-activities: 

(a) 	 RN7 Road 

MCC Funding will support the complete rehabilitation, upgrade and paving of approximately 83 

kilometers ("km") ofthe main north-south international trunk road ("RN7") linking the southern 

region ofNiger to the rest ofthe country. Specifically, MCC Funding will support: 

(i) 	 Construction costs, including, without limitation, road structure 

strengthening, surface course, road width restoration, road safety 

improvements, replacement or upgrading of associated structures, 

such as bridges and culverts, and are inclusive of any 

environmental, social, health and safety measures required for 

construction; and 

(ii) 	 Non-construction costs, including, without limitation, studies, 

construction supervision, environmental and social mitigation and 

enhancement activities, livelihoods restoration and resettlement 

activities and project management costs. 

(b) 	 RN35 Road 

MCC Funding will support the rehabilitation and gravel upgrade of approximately 187 km ofthe 

RN35 road directly serving the Dosso-Gaya perimeters ("RN35"). Specifically, MCC Funding 

will support: 

(i) 	 Construction costs, including, without limitation, road structure 

strengthening, surface course, road width restoration, road safety 

improvements, replacement or upgrading of associated structures, 

such as bridges and culverts, and environmental, social, health and 

safety measures required for construction; and 

(ii) 	 Non-construction costs, including, without limitation, studies, 

construction supervision, environmental and social mitigation and 

enhancement activities, livelihoods restoration and resettlement 

activities and project management costs. 

(c) 	 Sambera Rural Road 

ANNExI-6 
MCC Funding will support the rehabilitation and gravel upgrade of approximately 3 7 km ofrural 

road that links the Ouna-Kouanza and Sia irrigation perimet~rs with the RN7 ("Sambera Rural 

Road''). Specifically, MCC Funding will support: 

(i) 	 Construction costs, including, without limitation, road structure 

strengthening, surface course, road widening, road safety 

improvements, replacement or upgrading of associated structures, 

such as bridges and culverts, and any environmental, social, health 

and safety measures required for construction; and 

(ii) 	 Non-construction costs, including, without limitation, studies, 

construction supervision and environmental and social mitigation 

and enhancement activities, livelihoods restoration and 

resettlement activities and project management costs. 

Unless otherwise agreed by the Parties, this Activity will utilize, on a pilot basis, one or more 

performance-based maintenance contract(s) for the RN7 and RN35, as well as support for a 

community-based road network management program for the Sambera Rural Road (modeled 

after the ongoing program supported by Cooperation Suisse in neighboring Gaya Department). 

(iv) 	 Policy Reform Activity. 

MCC Funding will be used to promote several major policy reforms directly linked to the 

success and sustainability ofthe Program (the "Policy Reform Activity"). Specifically, MCC 

Funding will support: 

(a) the development and implementation of a new national water resources 

plan covering a minimum often (10) years ("National Water Resources Plan"), including a 

detailed assessment ofwater resources using remote sensing technology and detailed 

hydrogeological studies to improve sustainable management of groundwater resources; 

(b) the development and implementation of natural resource and land use 

management plans for the protected areas and nearby communities affected by the Irrigation and 

Market Access Project in the Dosso Region, including (i) ecological assessments and land use 

studies necessary to identify and promote conservation and natural resource planning objectives; 

(ii) the development and implementation ofmanagement plans for Dosso Partial Fauna! Reserve 

and Ramsar Convention site Zone Humide du Moyen Niger II; and (iii) support for the 

development of community land use plans within and adjacent to the protected areas; 

(c) the reform ofthe fertilizer distribution market to allow greater competition 

and private sector participation and to enable broad availability and affordability offertilizers, 

especially to women and small farmers. The sub-Activity will assist in the development of an 

action plan to: (1) open the fertilizer procurement and distribution process to more private firms; 

(2) adjust fertilizer pricing to be aligned with regional markets; and (3) adopt and implement a 

fertilizer subsidy exit strategy that leaves in place a focused program to meet crisis needs ofthe 

most marginalized (collectively, as such will be agreed by the Parties, the "Fertilizer Action 

Plan"); and 

ANNEXI-7 
(d) the development ofthe statistical capacities ofthe National Institute of 

Statistics and key ministries (Water and Sanitation, Agriculture and Livestock, and Environment) 

to (1) generate relevant, timely, gender responsive and accurate productive sector data, including 

data disaggregated by income level, gender and age, to the maximum extent practicable; (2) 

analyze and inform the impacts of government policy related to growth strategies, investment, 

agricultural trade, natural resources and services; (3) measure economic growth and poverty 

reduction; and (4) the development ofthe Government's monitoring and evaluation capacity. 

b. Environmental and Social Mitigation Measures. 

The Irrigation and Market Access Project is classified as "Category A" in accordance with MCC 

Environmental Guidelines as it may have significant environmental or social impacts that are 

sensitive, diverse or unprecedented. These impacts include potential involuntary resettlement of 

homes, structures or villages, permanent changes in land use and economic displacement of 

livelihoods; permanent changes to floodplains and wetlands within a protected area - Dosso 

Partial Faunal Reserve and Ramsar sites; potential for increases in land conflict due to inmigration; and potential impacts to transboundary waters. As such, MCC Funding will be used 

to undertake an environmental and social impact assessment, environmental and social 

management plan, and a resettlement action plan and/or livelihood restoration plan. In addition, 

a management plan and improved legal protection status for Zone Humide du Moyen Niger II 

will be required in order to comply with International Finance Corporation Performance 

Standard 6. 

Consistent with Section 2.7(c) ofthis Compact, the Irrigation and Market Access Project will be 

implemented consistent with the International Finance Corporation Performance Standards (the 

"IFC Performance Standards"), incorporated by reference into the MCC Environmental 

Guidelines. The Government will ensure that the Project is conducted in accordance with any 

applicable international law, including, but not limited to, the Ramsar Convention. To that end, 

the Government will apply IFC Performance Standards to avoid or mitigate any potential 

impacts to wetlands, and MCC Funding will be used to promote and enhance effective 

management thereof. 

c. Social. Inclusion and Gender Integration. 

The Irrigation and Market Access Project has several key risks and opportunities for women and 

youth. As a central principle, the Government and MCC are committed to ensuring that women 

have the opportunity to gain ownership over, or access to land, in the Project areas. In view of 

this commitment, the Management Services and Market Facilitation Activity will, among other 

actions, conduct a participatory and inclusive land inventory process to understand unofficial 

land transactions that have created opportunities for women to have ownership over and/or 

access to land and disseminate information to help women better understand their legal rights to 

land. Furthermore, the Management Services and Market Facilitation Activity will, among other 

actions, establish savings groups as an entry point to help empower women and youth and build 

leadership skills to address their limited access to capital and increase their participation in 

farmer and producer cooperatives. The Activity will work with both men and women to help 

socialize the idea ofwomen's leadership within the community, ensuring parents, spouses and 

community leaders understand the objectives. Additionally, technical training will target both 

ANNEXl-8 
women and youth, focusing on marketing, functional literacy, business development services, 

household nutrition and basic sanitation. 

d. Donor Coordination. 

The major donors in the large scale irrigation sector in Niger are the World Bank, the French 

Development Agency ("AFD") and the German Development Agency ("KJW'). Irrigation 

sector reform is underway with World Bank and other support, and MCC will promote the 

coordination among the donors and formation of an irrigation donor working group in support of 

operationalizing this reform. 

The principal donors ofthe main road network in Niger are the World Bank and the European 

Union. In the rural road sector, the two major donors have been Cooperation Suisse and 

Cooperation Luxembourgeoise, both ofwhich are working in the Dosso-Gaya area. Cooperation 

Suisse has developed a community-based maintenance program, which will serve as a model for 

maintenance ofthe Sambera Rural Road. 

e. USAID. 

USAID has two regionally funded programs supporting the economic growth ofthe agricultural 

sector (REGIS-AG) and the sector's resilience to climate change (REGIS-RE). Additionally, 

USAID's Food for Peace Program has a large portfolio ofprograms implemented by various 

international NGOs focused on the humanitarian relief to development continuum. All ofthese 

programs are organized under the RISE initiative led by the Sahel Regional Office, aiming to 

address the root causes ofpersistent vulnerability. While there is not a high degree of overlap 

geographically with any ofthese programs, the depth ofNiger-specific experience among these 

implementers includes experience implementing programs in agriculture, women's 

empowerment issues, functional literacy, health and nutrition, savings and credit, and other key 

skills critical to income generation and empowerment. 

f. Sustainability. 

The Parties agree that there are three critical elements to the sustainability ofthe Project. First, 

the Project assets must be properly operated and maintained. In the case ofthe Irrigation 

Perimeter Development Activity, this operations and maintenance will be undertaken by the 

IWUAs, in partnership with the Office National des Amenagements Hydro Agricoles ofNiger on 

the basis of clearly-defined roles and responsibilities. IWUAs must have the ability to pay for 

the water and ensure these operations. Accordingly, (i) the IWUAs must have the legal ability 

and organizational capacity to operate and maintain the system; (ii) farmers must have 

confidence in their land tenure, the right to crop selection and access to technical knowledge and 

inputs (including appropriate fertilizer) to increase their productivity; and (iii) farmers must have 

the organizational capacities to aggregate and transport their product to market. For the Roads 

for Market Access Activity, maintenance to ensure market access will be addressed potentially 

through the performance-based maintenance contracts for RN7 and RN35, and through the 

community-based maintenance approach for the Sambera Rural Road. 

Second, increased productivity ofnewly valuable land may lead to conflict. The Project 

explicitly integrates efforts to mitigate the risk of conflict, therefore increasing likelihood that 

ANNEXl-9 
farmers will invest consistently and sustainably in their land. Third, improved management of 

natural resources, including sites designated under the Ramsar Convention, will help ensure the 

protection ofthe ecosystem services that underpin these agriculturally productive areas and 

enhance climate resiliency. 

g. Policy, Legal and Regulatory Reforms. 

The Parties agree that implementation by the Government, in form and substance satisfactory to 

MCC, ofthe policy, legal and regulatory reforms described below are necessary to ensure that 

the Irrigation and Market Access Project meets its Project Objective. 

The Government will provide evidence ofthe official adoption ofthe National Water Resource 

Management Plan and a schedule of actions for immediate implementation over the first two 

years. Such plan will empower the Ministry of Hydraulics and Sanitation to proactively monitor 

and manage Niger's water resources. 

In addition, the implementation by the Government, to the satisfaction ofMCC in its discretion, 

ofthe policy, legal and regulatory reform described below are conditions precedent to specified 

Disbursements in the Program Implementation Agreement: 

• 	 The Government will ensure that an appropriate legal basis exists for the creation of 

IWUAs and that such IWUAs are empowered to manage, operate and maintain, on a 

long-term basis, the Project's perimeter systems. 

• 	 The Government will reform the fertilizer distribution market through the Fertilizer 

Action Plan. 

• 	 The Government will issue a communication directed at the farmers and cooperatives in 

the Project intervention areas confirming that they are empowered to determine their 

choice of crops, consistent with water availability and the requirements for rational and 

equitable distribution ofwater within the Project perimeters. 

2. Climate-Resilient Communities Project. 

a. Summary ofProject and Activities. 

The Climate-Resilient Communities Project is designed to increase incomes for small-scale 

agricultural- and livestock-dependent families in Eligible Communes and Livestock Corridors in 

rural Niger by improving crop and livestock productivity, sustaining natural resources critical to 

production and increasing market sales oftargeted commodities. Unless otherwise modified by 

the Parties, the Eligible Communes include Tessa, Mokko, Tombo Koirey I, Tombo Koirey II 

and Kargui Bangou in Dosso Department; Dan Goulbi and Sabon Machi in Dalrnro Department; 

Chadakori and Guidan Roumdji in Guidan Roumdji Department; Konni and Tsemaoua in Birni 

N'Konni Department; Malbaza and Doguerawa in Malbaza Department; and Koure, Libore and 

N'Dounga in the Kollo Department. 

The Climate-Resilient Communities Project consists of the following Activities: 

ANNEXI-10 
(i) Regional Sahel Pastoralism Support Activity. 

MCC Funding will be used to support pastoralist groups and enhance regional integration by 

improving livestock health, upgrading water and rangeland resources along major transhumance 

Livestock Corridors and modernizing local livestock market infrastructure (the Project Regional 

d'Appui au Pastoralisme au Sahel/Niger or "PRAPSActivity"). Specifically, MCC Funding will 

support: 

(a) a livestock health and vaccination campaign to reduce disease prevalence 

that debilitates livestock productivity by building a more sustainable and efficient national 

veterinary services to conduct surveillance and control campaigns for major diseases affecting 

large and small ruminants following World Organization for Animal Health ("OIE') guidelines, 

with a focus on remote pastoral areas. In the short-term, the goal ofthese efforts is to increase 

the share of animals vaccinated against contagious bovine pleuropneumonia ("CBP.P'') and peste 

des petits ruminant ("PPR") and to construct and rehabilitate veterinary units in the trade 

corridors, including an increase in inspection services at key border crossings to monitor disease 

prevalence. In the intermediate term, the goal ofthese efforts is to decrease the herd prevalence 

of CBPP and to increase the immunity protection of small ruminants against PPR; 

(b) the consultations to prepare, and the funding to implement, each Livestock 

Corridor investment plans in form and substance satisfactory to MCC ("Corridor Investment 

Plans"). Consultations will engage stakeholders in a comprehensive process to identify, by 

corridor or commune, which Eligible Investments (as defined below) will be prioritized by each 

Livestock Corridor. Eligible Investments include: 

(1) upgrades to key water points and livestock pasture and rest areas 

along Livestock Corridors to help maintain the condition of animals as pastoralists lead them 

through such corridors to points of sale (such as markets); and 

(2) the modernization of existing dilapidated, and the construction of 

new, physical platforms to market livestock in an improved trade environment. Through a 

consultative process with livestock stakeholders, an inventory of current market infrastructure 

and livestock trade flows will be undertaken and priorities established for the location and design 

ofinfrastructure improvements needed to ease market participation (points 1 and 2 together, 

"Eligible Investments"). 

In all cases, the Corridor Investment Plans will outline: (x) appropriate management structure for 

users ofthe corridor and regional and communal government offices charged with managing and 

monitoring the use and sustainability ofpublic water and land resources; (y) sustainable land 

management practices including conflict resolution and mitigation mechanisms; and (z) 

appropriate gender and social integration considerations. Eligible Investments financed using 

Program Funds will be subject to a ten (10) percent economic rate ofreturn. 

The PRAPS Activity will be implemented by a program implementation unit within the Ministry 

ofAgriculture and Livestock ("LPIU") or a related mechanism acceptable to the Parties. MCANiger (or such other Government entity as may be agreed by the Parties) will execute a transfer 

agreement with the Ministry of Agriculture and Livestock outlining the terms and conditions of 

ANNEXI-11 
MCA-Niger's funding ofthe LPIU (the "PRAPS Transfer Agreement'). The PRAPS Transfer 

Agreement will be consistent with this Compact and will be subject to MCC approval. In 

addition, the implementation ofthe PRAPS Activity by the LPIU will be subject to an operations 

manual, in form and substance satisfactory to MCC, setting forth appropriate legal, fiscal, 

procurement, environmental, gender, monitoring and evaluation, and other requirements for the 

Activity's execution ("PRAPS Operations Manuaf'). 

Once the proposed PRAPS interventions and their locations are known the targeted sites will 

undergo detailed land tenure assessments to exhaustively identify existing users and occupants, 

including holders and types ofland property rights. This baseline information will inform the 

PRAPS Activity's strategies for ensuring land tenure security throughout the intervention zones 

and mitigating the risk of land conflict. 

(ii) Climate-Resilient Agriculture Activity. 

MCC Funding will be used to support sustainable increases in productivity and farm incomes in 

Eligible Communes by strengthening the resiliency offarmers and agro-pastoralists to the 

impacts of climate (the "Climate-Resilient Agriculture Activity" or "CRA Activity"). MCC 

Funding will support: 

(a) the consultations to prepare, and the funding to implement, each Eligible 

Commune's integrated climate-resilient investment plan ("ICRIP'). The ICRIP will integrate 

investments by communes, farmers' groups and entrepreneurs in a range of areas (e.g., irrigation, 

erosion control measures and marketing infrastructure) to achieve one or more ofthe following 

objectives: (1) improving soil fertility and water management for rain fed crops; (2) improving 

water control and increases in small and medium scale irrigation schemes; (3) support for 

livestock integration; ( 4) value chain consolidation and improved market access; and (5) 

improved agroforestry and natural resource management; and 

(b) a grants facility ("Facility") to support productive assets and investment 

needs, integrated with provision of business development services to target beneficiaries in 

Eligible Communes and the Dosso-Gaya perimeter participating in the Irrigated Perimeter 

Development Activity. The Facility will target producer/processor groups, women's and youth 

groups, and micro-, small- and medium-sized enterprises, and will focus on five categories for 

funding: (1) irrigation and irrigated production (including post-harvest and storage); (2) rain-fed 

production (including post-harvest and storage); (3) livestock integration; (4) agro-processing 

and sale; and (5) input supply. The business development services provided to applicants and 

grantees will support (i) initial outreach and demand targeting; (ii) business plan and grant 

proposal development; and (iii) business advisory support for grantees during grant 

implementation. 

Unless otherwise agreed by MCC, the Facility will be managed by a competitively procured, 

independent facility manager ("Facility Manager"). MCC Funding will finance the associated 

costs and fees, as applicable, of engaging the Facility Manager. The administration ofthe 

Facility will be governed by an operations manual, in form and substance satisfactory to MCC, 

setting forth, among others, eligibility criteria (including environmental, social and gender 

considerations), requirements for grantee contributions, appropriate required economic rates of 

ANNEXl-12 
return, appropriate governance and implementation structures (including a structure for the 

selection ofprojects) and transparency requirements relating to the use ofFacility funding 

("Facility Manuaf'). 

Subject to available budget and MCC's prior written consent, additional communes may be 

added to Eligible Communes if such communes meet the following criteria: (a) geographic 

location within the isohyet band of400mm-600mm ofrainfall per year; (b) representational of 

synergies with Irrigation and Market Access Project; (c) be aligned with the PRAPS Activity 

Corridor Investment Plans; and ( d) be contiguous with an existing Eligible Commune. 

The CRA Activity will be implemented by a program implementation unit within the Ministry of 

Agriculture and Livestock (''AgPIU") or a related mechanism acceptable to the Parties. MCANiger (or such other Government entity as may be agreed by the Parties) will execute a transfer 

agreement with the Ministry ofAgriculture and Livestock outlining the terms and conditions of 

MCA-Niger's funding ofthe AgPIU (the "CRA Transfer Agreement'). The CRA Transfer 

Agreement will be consistent with this Compact and will be subject to MCC approval. In 

addition, the implementation ofthe CRA Activity by the AgPIU will be subject to an operations 

manual, in form and substance satisfactory to MCC, setting forth appropriate investment criteria 

(including an acceptable economic rate ofreturn), legal, fiscal, procurement, environmental, 

social, gender, monitoring and evaluation, and other requirements for the Activity's execution 

("CRA Operations Manuaf'). 

Once the proposed CRA Activity interventions and their locations are known, the targeted sites 

will undergo detailed land tenure assessments to exhaustively identify existing users and 

occupants, including holders and types ofland property rights. This baseline information will 

inform the CRA Activity's strategies for ensuring land tenure security throughout the 

intervention zones and mitigating the risk ofland conflict. 

b. Environmental and Social Mitigation Measures. 

The PRAPS and CRA Activities are categorized as "Category D" in accordance with MCC 

Environmental Guidelines as the community projects undertaken thereunder will involve an 

intermediate facility that will use MCC Funding to finance sub-projects that may potentially 

result in adverse environmental and social impacts. The Activities include risks similar to those 

offinancial facilities because the actual impacts will not be understood until the community 

projects are selected and designed. At the community project level, only Category Band C 

equivalent sub-projects will receive funding under the CRA and PRAPS Activities; provided, 

however, that any community project that requires a full ESIA or RAP consistent with the terms 

of the PRAPS or CRA Operations Manual, as the case may be, will be subject to prior written 

approval ofMCC and MCA-Niger. 

c. Social Inclusion and Gender Integration. 

The PRAPS Activity's focus on animal health will improve the access women have to animal 

health services and lead to the active recruitment ofwomen for newly created para-health 

professional jobs in the field. The PRAPS Activity's focus on natural resource management will 

improve access to water for women by, for example, emphasizing the inclusion ofwomen in the 

ANNExI-13 
IWUAs. The PRAPS Activity's focus on facilitating access to markets will increase the role 

women are able to play at markets through a number of different avenues, including establishing 

storage for livestock feed, small dairies and milk collection centers, and vending space for 

women in such markets and allowing them to participate in new roles. 

The CRA Activity's focus on financing CRA-integrated land, agro-forestry and water 

management sub-projects at the commune level will increase the capacity for women to apply for 

and receive funding by, among other actions, consulting with women in the selection and design 

of commune projects. Additionally, the CRA Activity's focus on inclusive enterprise 

development will increase the capacity for women and youth to apply for and receive funding by, 

among other actions, using an inclusive and participatory approach to capacity building that 

includes women and youth. CRA demonstration plots should be representative ofthe 

community, including men, women and young farmers' plots. 

d. Donor Coordination. 

Both the PRAPS and CRA Activities will be financed in coordination with the World Bank, 

which has issued a $155 million loan to the Government to finance these Activities. Both MCC 

and the World Bank are using the AgPIU and the LPIU to implement their respective funding, 

and each funding stream is expected to fully finance the investments by commune or Livestock 

Corridor. In addition, numerous donors are active in the PRAPS and CRA Activities areas, 

including the Food and Agriculture Organization ofthe UN, AFD, LuxDev, the Belgian 

Development Agency and USAID (discussed below). To facilitate coordination and avoid 

duplication of efforts, MCC will pursue convening a sustainable agriculture working group 

constituted ofrelevant donors. 

Additionally, the Facility will utilize partnerships with Nigerien microfinance institutions to 

supply credit to qualified grant applicants, resulting in some grants being leveraged with 

supplemental credit from these financial institutions. 

e. USAID. 

USAID has two regionally funded programs supporting agricultural sector-driven economic 

growth and the sector's resilience to climate change. Additionally, USAID's Food for Peace 

Program has a portfolio of projects implemented by various international N GOs focused on the 

humanitarian relief to development continuum. The depth ofNiger-specific experience among 

these implementers includes experience forming productive assets among poor farmers, creating 

savings groups, changing farmer behavior through use of cropping calendars, and other 

experience that will be instrumental to utilize, to the extent appropriate, through the PRAPS and 

CRA Activity programming. 

f. Sustainability. 

The Parties agree that the Project activities may result in an increased risk of conflict over natural 

resources, particularly arable land and land for grazing animals. Additional interventions related 

to land tenure have been integrated accordingly into the Project design to minimize land-related 

conflicts. 

ANNEXl-14 
With respect to the PRAPS Activity, the Ministry ofAgriculture and Livestock must have the 

continued capacity and budget to manage the health ofthe national herd post-Compact. The 

Ministry ofAgriculture and Livestock will establish and maintain a system to regularly monitor 

prevalence ofimportant livestock diseases and vaccinate to avoid outbreaks. The Ministry must 

work closely with West African regional bodies to monitor animal health and cross-border 

transmission oflivestock disease. The Ministry must also be actively engaged with the OIE to 

help guide effective public expenditure on achieving certifications to enable trade oflivestock 

and livestock products. To this end, the Government will produce evidence to MCC of an 

increased budget to maintain the interventions begun by the PRAPS Activity. With respect to 

the CRA Activity, the Government will continue to promote the adoption of climate-resilient 

agriculture practices to ensure the long-term sustainability ofnatural resources throughout 

Eligible Communes. Government staff must be trained and sufficiently resourced to monitor, 

maintain and replicate these practices at the commune level. To this end, the Government will 

produce evidence to MCC of an increased budget to maintain the interventions begun by the 

CRA Activity. Activity beneficiaries must also be trained and made responsible to maintain the 

public investments in small-scale irrigation systems, erosion control measures and agro-forestry. 

The Facility beneficiaries must also receive business development services and management 

training, as well as support to apply for and access private financing, in order for investments in 

agricultural enterprises to be sustainable. 

g. Policy, Legal and Regulatory Reforms. 

The Parties agree that implementation by the Government, in form and substance satisfactory to 

MCC, ofthe policy, legal and regulatory reforms described below are necessary to ensure that 

the Climate-Resilient Communities Project meets its Project Objectives. 

The Parties reaffirm that the restructuring of the fertilizer sector through the Fertilizer Action 

Plan is critical to the success ofthe Program. 

The Government will deliver evidence to MCC of an increase in the annual budget allocation to 

Ministry of Agriculture and Livestock sufficient to continue implementation ofkey veterinary 

services and vaccination campaigns beyond the Compact Term. 

The Government will deliver evidence to MCC of an appropriate budget to ensure that the 

Ministry ofAgriculture and Livestock can monitor, maintain and replicate the CRA Activity's 

practices at the commune level beyond the Compact Term. 

C. IMPLEMENTATION FRAMEWORK 

1. MCA-Niger. 

a. Structure: Overview. 

The Government will create an accountable entity, MCA-Niger, as an independent legal entity 

with legal personality through the issuance of a Presidential decree. MCA-Niger will be the 

Government's primary agent responsible for exercising the Government's right and obligation to 

oversee, manage and implement the Program. MCA-Niger will not be under the control of any 

state controlling body and it will have operational and legal independence, including, inter alia, 

ANNEXI-15 
the ability to (i) enter into contracts in its own name (including with public international 

organizations for supply ofservices to MCA-Niger); (ii) sue and be sued; (iii) establish a bank 

account in its own name; (iv) expend MCC Funding; and (v) engage contractors, consultants 

and/or grantees, including, without limitation, a procurement and fiscal agent. MCA-Niger will 

be further governed by a set ofregulations or bylaws setting forth the responsibilities ofits 

governing board and management unit. The Government will include MCA-Niger with respect 

to the Government's coordination ofbilateral or multilateral development assistance projects 

related to the Program. 

MCA-Niger will be administered, managed and supported by the following bodies: (x) a board 

of directors (the "Board ofDirectors"); (y) a management team; and (z) one or more 

Stakeholders' Committees (as defined below). 

b. Board ofDirectors. 

The Board ofDirectors will have ultimate responsibility for the oversight, direction and 

decisions ofMCA-Niger, as well as the overall implementation ofthe Compact. The Board of 

Directors will be comprised of eleven voting members and one non-voting member. The voting 

members ofthe Board ofDirectors will include the following representatives: 

(i) The Chief of Staff ofthe Presidency, who will also serve as Chair ofthe Board; 

(ii) Minister ofAgriculture and Livestock; 

(iii) Minister of Finance; 

(iv) Minister of Planning; 

(v) Minister ofEnvironment and Sustainable Development; 

(vi) Minister ofInfrastructure; 

(vii) Minister ofHydraulics and Sanitation; 

(viii) Minister ofPromotion ofWomen and Protection of Children; 

(ix) The Chief of Staffofthe Prime Minister; 

(x) A non-government member who will represent the private sector; and 

(xi) A non-government member who will represent the civil society organizations ofNiger. 

The Board also will include one representative of MCC, who will serve as an observer and will 

not have a right to vote. 

The members ofthe Board ofDirectors may be represented by alternates. In the case ofthe 

Government representatives, such alternates will be the applicable Secretary General to the 

Minister. Alternates for the non-Government members will be selected pursuant to MCANiger' s Governing Documents. The process of selecting the Board members will be further 

described in MCA-Niger's bylaws and will be consistent with the Governance Guidelines. The 

Government acknowledges and agrees that both: (A) continuity of Board membership, and (B) 

authority of Board members to represent their respective ministry or organization, are each 

critical to fulfilling their duties and for implementing the Program. 

c. Management Team. 

ANNExl-16 
The management team ("Management Team") will report to the Board and be primarily 

responsible for the day-to-day operations and management ofMCA-Niger, including contracting, 

program management, financial management, reporting, and monitoring and evaluation. 

The Management Team will be led by a Director General and be composed ofsuch other 

directors, officers and employees as necessary to enable the Management Team to execute its 

role and responsibilities. The Management Team will be selected after an open and competitive 

recruitment and in accordance with the Governance Guidelines and the Program Implementation 

Agreement. The directors will be supported by appropriate additional staff to enable the 

Management Team to execute its roles and responsibilities. 

d. Stakeholders' Committee. 

MCA-Niger will have a stakeholders' committee ("Stakeholders' Committee") as an advisory 

body to continue the consultative process throughout implementation ofthe Program and provide 

advice and input to MCA-Niger. The Stakeholders' Committee, which will be composed of 

Program beneficiaries (including representatives for women and vulnerable groups), 

representatives ofthe Government, non-governmental organizations and the civil society, will 

act as a mechanism to inform stakeholders about Program implementation. The Stakeholders' 

Committee will be created in accordance with the Governance Guidelines, Stakeholders' 

Engagement Plan developed in accordance with IFC Performance Standard 1 and as approved by 

MCC. The Stakeholders' Committee will not have decision-making authority. 

2. Implementing Entities. 

Subject to the terms and conditions ofthis Compact, the Program Implementation Agreement 

and any other related agreement entered into in connection with this Compact, the Government 

may engage one or more entities ofthe Government to implement and carry out any Project or 

Activity (or a component thereof) (each, an "Implementing Entity"). The appointment of any 

Implementing Entity will be subject to review and approval by MCC. The Government will 

ensure that the roles and responsibilities of each Implementing Entity and other appropriate 

terms are set forth in an agreement, in form and substance satisfactory to MCC (each an 

"Implementing Entity Agreement'). For the PRAPS Activity and the CRA Activity, MCANiger will enter into the PRAPS Transfer Agreement and the CRA Transfer Agreement, 

respectively, which will outline the duties of the LPIU and the AgPIU with respect to 

implementation of such Activities, including, but not limited to, the role of embedded MCANiger staff in the LPIU and AgPIU, as well as the role of embedded Fiscal Agent and 

Procurement Agent. 

3. Fiscal Agent. 

Unless MCC agrees otherwise in writing, the Government will engage a fiscal agent (a "Fiscal 

Agenf'), which will be responsible for assisting the Government with its fiscal management and 

assuring appropriate fiscal accountability ofMCC Funding. The duties ofthe Fiscal Agent will 

include those set forth in the Program Implementation Agreement and an agreement, in form and 

substance satisfactory to MCC, between the Government and the Fiscal Agent. The Fiscal Agent 

ANNEXl-17 
will also assign personnel to oversee the financial management by, and process payments with 

respect to, the LPIU and the AgPIU under the Climate-Resilient Communities Project. 

4. Procurement Agent. 

Unless MCC agrees otherwise in writing, the Government will engage one or more procurement 

agents (collectively, the "Procurement Agent') to carry out and certify specified procurement 

activities in furtherance ofthis Compact. The roles and responsibilities ofthe Procurement 

Agent will be set forth in the Program Implementation Agreement or such agreement as the 

Government enters into with the Procurement Agent, which agreement will be in form and 

substance satisfactory to MCC. The Procurement Agent will adhere to the procurement 

standards set forth in the MCC Program Procurement Guidelines and ensure procurements are 

consistent with the procurement plan adopted by the Government pursuant to the Program 

Implementation Agreement, unless MCC agrees otherwise in writing. The Procurement Agent 

also will assign personnel to oversee the procurement activities ofthe LPIU and the AgPIU 

under the Climate-Resilient Communities Project. For the avoidance of doubt, procurement 

actions by the LPIU and the AgPIU will follow the PRAPS and CRA Operations Manuals, 

respectively, and such procurement processes will not be subject to ministerial review or 

validation (beyond any such approvals required under the PRAPS and CRA Operations 

Manuals). 

ANNExI-18 
ANNEX II 

MULTI-YEAR FINANCIAL PLAN SUMMARY 

This Annex II summarizes the Multi-Year Financial Plan for the Program. 

A multi-year financial plan summary ("Multi-Year Financial Plan Summary") is attached 

hereto as Exhibit A to this Annex II. By such time as specified in the Program Implementation 

Agreement, the Government will adopt, subject to MCC approval, a multi-year financial plan 

that includes, in addition to the multi-year summary of estimated MCC Funding and the 

Government's contribution of funds and resources, the annual and quarterly funding 

requirements for the Program (including administrative costs) and for each Project, projected 

both on a commitment and cash requirement basis. 

Consistent with Section 2.6(a) ofthe Compact, the Government will contribute an amount 

necessary to ensure its obligations hereunder are satisfied, including the reimbursement of any 

applicable Taxes consistent with the terms hereof and Annex IV to the Program Implementation 

Agreement. 
EXHIBIT A TO ANNEX II 


MULTI-YEAR FINANCIAL PLAN SUMMARY 


.. .. .. . . 

(l SS) . .. . - ·-· - .. .. - . . .... -· ... ­ ---·. -·····­ - . ·-·· ·-­ . ­ - ­ --- .. ­ .. .. . . ~ .... .. - -.·---- ­ ·-- --·­ Comj1(1i1c11t . -CDF \'rar I Yc:ir 2 Ycar:J Year-' Yl•ai·5 Total .. .. 

1. Irrigation and Market Access Project 

1.1 Irrigation Perimeter Development 4,247,000 5,995,000 16,306,000 33,338,000 31,863,000 21,501,000 113,250,000 

12 Management Services and Market 

Facilitation 255,000 1,850,000 2,129,000 2,059,000 1,604,000 1,245,000 9,142,000 

1.3 Roads for Market Access 3,729,000 5,185,000 34,202,000 34,199,000 34,200,000 1,907,000 113,422,000 

1.4 Policy Refonn 1,325,000 4,250,000 4,850,000 3,100,000 3,350,000 1,875,000 18,750,000 

Subtotal 9,556,000 17,280,000 57,487,000 72,696,000 71,017,000 26,528,000 254,564,000 

2. Climate-Resilient Communities Project 

2.1 Regional Sahel Pastoralism Support 

(PRAPS) 4,200,000 8,200,000 8,200,000 8,200,000 8,200,000 8,000,000 45,000,000 

2.2 Climate-Resilient Agriculture (CRA) 3,450,000 7,950,000 10,350,000 11,050,000 10,400,000 8,300,000 51,500,000 

Subtotal 7,650,000 16,150,000 18,550,000 19,250,000 18,600,000 16,300,000 96,500,000 

3. Monitoring & Evaluation 

3.1 Monitoring & Evaluation - 4,175,000 570,000 1,340,000 570,000 5,345,000 12,000,000 

Subtotal - 4,175,000 570,000 1,340,000 570,000 5,345,000 12,000,000 

4. Program Management and Administration 

4.1 MCA-Niger Administration, Program 

Management Support, Fiscal Agent, Procurement 

Agent and Financial Audits 9,968,000 11,868,000 11,835,000 12,011,000 12,195,000 16,083,000 73,960,000 

Subtotal 9,968,000 11,868,000 11,835,000 12,011,000 12,195,000 16,083,000 73,960,000 

TOTAL 27,174,000 49,473,000 88,442,000 105,297,000 102,382,000 64,256,000 437,024,000 

ANNExII-2 
ANNEX ill 

COMPACT MONITORING & EVALUATION SUMMARY 

This Annex III summarizes the monitoring and evaluation plan for this Compact ("M&E Plan"). 

The actual structure and content ofthe M&E Plan, which may differ from those specified in this 

Annex III, will be agreed to by MCC and the Government in accordance with MCC's Policyfor 

Monitoring and Evaluation ofCompacts and Threshold Programs (the "MCC M&E Policy"). In 

addition, the M&E Plan may be modified from time to time as described in the MCC M&E 

Policy without requiring an amendment to this Annex III. The M&E Plan will be posted 

publicly on the MCC Website and updated as necessary. 

1. Objective. 

MCC and the Government will formulate and agree to, and the Government will implement or 

cause to be implemented, an M&E Plan that explains in detail how and what MCC and MCANiger will (i) monitor to determine whether the Projects are on track to achieve their intended 

results ("Monitoring Component'), and (ii) evaluate to assess implementation strategies, provide 

lessons learned, determine cost effectiveness and estimate the impact ofCompact interventions 

("Evaluation Component'). The M&E Plan will summarize all indicators that must be reported 

to MCC on a regular basis, as well as a description of any complementary data to be collected for 

evaluation ofthe Program. The M&E Plan will also include any monitoring and evaluation 

("M&E') requirements that MCA-Niger must meet in order to receive Disbursements, and will 

serve as a communication tool so that MCA-Niger staff and other stakeholders clearly 

understand the objectives and targets MCA-Niger is responsible for achieving. The results of 

M&E activities, measured by monitoring data and evaluations, will be made publicly available 

on the website ofMCA-Niger and on the MCC Website. 

2. Program Logic. 

The M&E Plan will summarize the clearly defined Compact-level logic model which illustrates 

how the Projects, Activities and sub-Activities (as necessary) contribute to the Compact Goal, 

and Project Objectives. This higher level logic model will be complemented by lower level logic 

models at the Project, Activity and/or sub-Activity levels (as necessary) depending on Compact 

design and implementation. All logic models will clearly summarize the outputs, outcomes and 

goal expected to result from the Program. A diagram ofthe logic underlying the Compact is 

included below: 
l 

Figure 1: Irrigation and Market Access Project Logic 

~ Increased Incomes for Rural Households 

u 

Improved resilimce 

toshocb 

Increased Sales eod Value for 

Agricultural Products 

r--- ---- Mote agric:al1ura1 products available ---1 lmprm-..1 traffic ~-olumc awl '"Chicle on local awl regional mmic:ets opera!mg costs: I______ _J 

1 

1 

r °'Fjforesusta na""6Te -, I - .=--:~ - ,I ~1=..=_- f lm:r<ased 

irrigation water ...,......,,,. """"~..........., Lo\\'cr nnima1 . 
 "labl & d livered -Natural resources J .......,.,....,_ I I ~mid I mo-•:... and compctiticn for 
 I avai e e I moresustalnable ,..~ ---=-•~~ts •=•J "---•-·-d,...'-· moreeffectivelyfor aipaaty ~,,'iW,~ moibidity "''c'"""~~, I _ -IaIIJJ.e'l... _ J -----I____J L--~-=--1 .________~ .___pro___~ 

I - - Imp~-:,.;:.~;- - 1 

c:::J Jrrt:at!on t:1ldMarht J!.cc1m Pl'Oject I

_______ (shott-term outcolnf<} .....I

c=J Joint liff11ets 

L:=.::, cn..a:..J1.ul/km Co1111mmitW Proftcl 

The objective ofthe Program is to increase rural incomes by improving the sustainable 

productive use of natural resources for agricultural production and improving trade and market 

access for agricultural products. 

ANNExIII-2 
Figure 2: Irrigation and Market Access Project Logic 

Increased Incomes for Rural Households 

--~~~-_/\..._-----.... ..-~~~~~~~~~~~~~~_..r~~~~--. .-~~~'.__~~~~~~~~~~---

Iaaeascd Volumes and Values ofAgriculture Proclucts Traded lnaemcd productionand yields fat cash aops 

a r - --,-r-~ - , r """'"""" 

.;:-...::::;, .---r

ln=ascd 

__"-----:~:~:- Marc llilmaJl. -----­ ...J,,-----~---.r·-···~--~ I More 11\'Dilability of I ~ ; I Reduced 1

1 Increased 1

1 ,"CbJ~c I _,,,,...,_ r.....,.;,., Na!malresourccs ,,___..,_,mid : snslainablew.itt:rror :

d tmffi . I traffic I opcratmg I ~~~ aremote ............... lmptO\"Cdfoodsccmi.ty : agricultureanddclh-ercd : ~ ~ I c tune I volume I costs fot sustainable marerial assets me I more efiecti\'Cly for I 

"' J J usca J = &\'ailablc ! farmers' needs ! -- ~-- - . . ~ ___... ,... .::·::-~ ·---·-·-·--· / \ i><= -:. _- __,, 

U 

~ ,, .ll ~ 

., o 

f ­

I 

I 

- -

- - - - - -

•--·__• c-•'-'-­ ....,..v.... """' """'"""' 

- - - - - - -

-

_ 

.., 

1 

1 

J 

Moreaccurclimd& 

sustainable 

iaigation ~= maaagemall fee 

agricuJ%llte 

~apply 

improi."Cdnatma1 ~cs 

management 

tcch!liques 

f 

"--"..:...;cs 

<>=-· 

adopt am! apply 

improved akills 

~= 

r 

::=: 

- \ I 

IWUAs', 

cooperatives' & 

ONAHA'sroles 

are ratiooaJized 

~ 

r····--·--· ...........! : : I Im:rcascd inigzitcd land ! i I 

L..............___J 

maaagemcnt. dctn-cry of 

IJllliition mid water & 

hygiene maft11t1181U e of 

the system

'----r----" .......__-----------.----------~------·----·r--·-" Roads ror :llarkcl lrdpd_Pe......._
 A<:cess Aclhltf Denlopmmt Adhll;y 

a. Irrigation and Market Access Project 

Increasing agricultural productivity through increased yields and natural resource management is 

a critical measure for increasing rural incomes. To achieve this Program Objective, the Irrigation 

Perimeter Development Activity will increase the areas under large-scale irrigation by 

rehabilitating the Konni irrigation system, developing new irrigated perimeters along the Niger 

River in the Dosso-Gaya area, increase water availability and modernizing the flood 

management systems. The Management Services and Market Facilitation Activity will further 

support increased agricultural productivity by investing in strengthening management, 

institutional and beneficiary capacity in the new and rehabilitated irrigation perimeters. 

Improving yields and agricultural productivity are necessary interventions that will contribute to 

increased rural incomes when coupled with improvements to trade and market access for the 

resulting agricultural production. The rehabilitation ofthe roads under the Roads for Market 

Access Activity should contribute to a reduction in the barriers to trade and transportation time 

and costs associated with transporting agricultural production to markets. 

The Policy Reform Activity aims to establish a conducive policy environment that results in: 

(i) the ability ofIWUAs to independently operate and maintain irrigation systems; (ii) greater 

private sector participation in the distribution offertilizer to more farmers; (iii) generation of 

reliable data and analysis of prevalence of poverty and performance ofthe agriculture sector; 

(iv) and improved management ofnational water and wetland resources. The program logic for 

ANNEX III-3 

the Policy Reform Activity will be finalized prior to entry into force, and all related indicators 

and results will be updated in the Indicator Tracking Table ("ITT') ofthe M&E Plan. 

Expected long-term outcomes ofthe Irrigation and Market Access Project include: increased 

availability ofwater for agriculture as well as its effective delivery, increased agricultural 

production capacity, higher investment in productive assets, more sustainable natural resource 

management, and more efficient access to markets. 

Figure 3: Climate-Resilient Communities Project Logic 

Increased Incomes for Rural Household 

__;....._ 

r 

··--··············-··· ..---------·-···-·····-t / • .. Greater quantities ofpastoru prnducts aold at higher prices 

..... Mcre\-alucd ptoduds at highttprices 1 

:

.........________________ .. - A 

: 

Mere livestockpr<Xlucts 

Iaacascd lii."CS!ock production and productivity available oo local md rcgiooal 

mmkets 

r ' r•••••••••• ·-·······• .r•• .. ... . ~-== ..Jcacascd producti;-ity 1Dr i : lmpro.."Cdrcsilicace to : : fimnicg. lii.'CSloclc and : : shocks : :

. .... \_ .

C---.r::--'L~~~--J r 

A 

More namra1 resources available Incrcasedcompelilioo for 

aad cbcapcr for lii.'CStoek omien livestock prodncts 

' i ,............ ..:........

,... 

___5 _________,
 ... .. . Min inigatcd leads i Lower animal lllOllality aad I Increased retums to : under impro=i : morbidity i funded agro--businesses : i

I 

L ____ manngm>ent .JL i 

l'mpro\"Cd animal health 

Bcncficiaries adopt aad apply 

more ptodccth.,, natural Nnnben of'livcstoclc buyers and 

resomccs managcmClll 

tcc:lmiqucs 

sellers increased 

r r r : 

r··-···· Cooperatn-es. 

1 ·-·••••••• \\unm·a ! : ,...~~~]='. Commtmcs npply i : groopo, youlb. groups aad • : .imprm....d pnlCliccs illsoil.: : MSMEs implement : : water and inigation ! l proposals fucdcd by : : _________. !DftDngement :

i--------~-----..J :.. 

R<;loul SU.IPastonllma Sapport Project Ctlmate-Redlloat Aplalltun 

(PRAPS) (CRA) 

b. Climate-Resilient Communities Project 

The Climate-Resilient Communities Project is focused on increasing incomes for small-scale 

agricultural- and livestock-dependent families in Eligible Communes and Livestock Corridors in 

rural Niger by improving crop and livestock productivity, sustaining natural resources critical to 

production, supporting growth of agricultural enterprises, and increasing market sales oftargeted 

commodities. 

The PRAPS Activity will invest in increasing incomes of livestock-dependent households 

through improving national herd health and infrastructure within Livestock Corridors. The CRA 

Activity, in turn, aims to increase incomes ofrural households in Eligible Communes through 

sustainable increases in agricultural productivity, resilience to climate shocks and market access. 

The Climate-Resilient Communities Project will achieve: (i) improved veterinary services to 

lower animal mortality and morbidity; (ii) greater availability ofnatural resources at lower costs; 

ANNExlll-4 
(iii) increased irrigated lands with improved management; (iv) increased value and competition 

for agriculture and livestock products; and (v) increased returns to funded agribusinesses. 

Through the Irrigation and Market Access Project and Climate-Resilient Communities Project, 

the Program is expected to achieve: (i) improved resilience to shocks; (ii) increased agricultural 

yields; (iii) an increase in the number ofprofitable enterprises engaged in agricultural activities; 

(iv) increased trade and value for agricultural products; and (v) reduced transport costs and time 

to local and regional markets. 

2.1 Projected Economic Benefits and Beneficiaries. 

The Irrigation and Market Access Project is estimated to increase farmer incomes through both 

increased production and trade. The Irrigation Perimeter Development Activity is expected to 

increase both area cultivated, particularly during the dry season, and output per hectare. Farmers 

are expected to augment their incomes primarily by increasing the volume oftheir production 

through both enlarging their area cultivated and through improved yields. This Activity, together 

with the Management Services and Market Facilitation.Activity, will make more land available 

for production through both an increase in area cultivated as well as through flood protection. 

Roads infrastructure serving the Dosso-Gaya perimeters is a complementary investment to the 

irrigation perimeter development. Rehabilitating and upgrading the road network within the 

Dosso-Gaya area through the Roads for Market Access Activity is expected to improve physical 

market access. With these targeted improvements on the road network, the Dosso-Gaya 

perimeters will be linked to the rest ofthe country. The main assumption underpinning the 

economic rate ofreturn is that by using roads that are in good condition, the users ofthe roads 

will save on vehicle operating costs (due to reduced maintenance and repair) and on traveling 

time. 

The combined economic rate ofreturn ("ERR") for the Irrigation and Market Access Project is 

17 percent. 

The Climate-Resilient Communities Project is expected to increase incomes for agro-pastoralists 

by increasing the quantities, the value and the price of agro-pastoral products sold as a result of 

the Project interventions in Eligible Communes and Livestock Corridors. 

The PRAPS Activity is expected to increase pastoralists' incomes by improving animal health 

and improving infrastructure to ensure animal growth and value at time of sale. Vaccination of 

livestock against CBPP and PPR is expected to reduce disease incidence for both CBPP and 

PPR. Pastoralist income is expected to increase through avoided losses caused by the mortality 

and morbidity related to these diseases. Other activities, such as rehabilitation and upgrading of 

the Livestock Corridors, will increase income by improving animal growth and by allowing 

pastoralists to save on animal feed purchase through access to improved water points, pasture 

and market infrastructure. 

The benefit stream from the CRA Activity is based on the assumption that agro-pastoralist and 

farmer income will increase by investing in integrated agricultural practices, improvements in 

the utilization rate of selected and drought-tolerant seeds, rehabilitation and development ofnew, 

small-scale irrigation schemes, reclamation of agro-pastoral degraded land, protection of 

ANNExIII-5 
agricultural soils and watersheds from erosion, and funding productive assets for farmers and 

agribusinesses. These activities are expected to increase incomes by increasing production, both 

through increases in area cultivated and yield, allowing pastoralists to save on feed purchases 

through improved pasture, and improve resilience to shocks. 

The project-level ERR for the Climate-Resilient Communities Project is estimated at 14 percent. 

Irrigation and Market Access 

Climate-Resilient Communities Project 

The M&E Plan will also define in detail the persons or entities expected to benefit from the 

Program. Beneficiary analysis is an extension of the ERR analysis that seeks to disaggregate the 

total increase in income to determine specifically which segments of society will benefit from the 

Projects and Activities. MCC considers beneficiaries1 ofProjects and Activities to be those 

people who experience better standards ofliving as a result ofthe Project or Activity (as the case 

may be) through higher real incomes. The expected beneficiaries ofthis Compact are shown in 

the following table: 

Irrigation and Market Access 

Climate-Resilient Communities Pro· ect 

The beneficiary analysis for the Irrigation and Market Access Project and Climate-Resilient 

Communities Project build on the current ERR model. Beneficiaries, in this case, are defined as 

individuals whose income would increase because ofthe Activities. 

With respect to the Irrigation and Market Access Project, the beneficiaries for each ofthe 

Activities are as follows: 

• 	 For the Irrigation Perimeter Development Activity, all individuals with plots ofland and 

all members oftheir household are considered beneficiaries. 

• 	 For the Roads for Market Access Activity, all members ofhouseholds living within five 

kilometers on both sides along the roads are considered beneficiaries. 

• 	 For the Management Services and Market Facilitation Activity, all households whose 

yields or sales increase as a result of at least one member participating in the trainings 

and facilitations are considered beneficiaries. 

• 	 For the Policy Reform Activity, the beneficiaries will be defined when the Activity is 

fully designed. 

1 As used in this Compact, the term "beneficiary" has the meaning described in MCC's Guidelinesfor Economic 

and Beneficiary Analysis. 

2 Beneficiary numbers account for any beneficiaries who may benefit from more than one intervention in either 

Project or either Activity; those beneficiaries are only counted once. 

ANNExIII-6 
With respect to the Climate-Resilient Communities Project, the beneficiaries for each ofthe 

Activities are as follows: 

• 	 For the PRAPS Activity, the number of beneficiaries is a function ofthe proportion of 

animals in the endemic areas and the projected vaccination coverage in those areas. The 

animal count for the health component suggests that about 426,804 households will 

benefit. In terms of individual beneficiaries this would represent about 3,414,436 people. 

A portion ofthese people will also benefit from Livestock Corridor improvements and 

market infrastructure under the PRAPS Activity. 

• 	 For the CRA Activity, the number of beneficiaries is based on the potential for smallscale irrigation in the 16 communes. An estimated 3,217 households are expected to 

benefit from the CRA Activity's small-scale irrigation, representing 25,736 individual 

beneficiaries. These beneficiaries, at least in part, may also be the same as those 

benefiting from the animal health activity. 

3. Risks and Assumptions. 

The M&E Plan will also outline key assumptions and risks that underlie the accomplishment of 

the theory of change summarized in the program logic. However, such assumptions and risks 

will not excuse any Party's performance unless otherwise expressly agreed to in writing by the 

other Party. 

The key assumptions to achieve the objectives of the Irrigation and Market Access Project are: 

• 	 IWUAs have been established, at an early stage, and have power and sufficient authority 

to operate; 

• 	 Sufficient support is provided to the new IWUAs enabling them to sustainably operate 

and maintain the irrigation infrastructure; 

• 	 Farmers apply improved natural resource techniques; 

• 	 Fertilizer reform will allow more farmers to access quality, affordable fertilizer; 

• 	 Farmers will use improved seeds and fertilizer to increase their productivity; 

• 	 More secure land tenure will reduce land conflicts and increase agricultural investment; 

• 	 Vulnerable populations will benefit from the Irrigation and Market Access Project; 

• 	 The project-improved roads will be properly maintained including through the adoption 

of performance-based maintenance contracts and community maintenance plans; 

• 	 Farmers and other key actors are provided with nutrition, health and hygiene messaging 

and support to address literacy and.numeracy skills, which are a major driver of 

productivity ofsavings groups, farmers and producer organizations; 

• 	 Farmers are able and willing to pay the cost of sustainable irrigation water supply; 

• 	 Farmers are organized and will obtain better prices for inputs and commodities produced; 

and 

• 	 The Project's Ramsar Convention protection and management component will ensure the 

protection ofthe ecosystem services that underpin the productivity ofthe intervention 

areas, and enhance climate resiliency. 

The key assumptions for the Climate-Resilient Communities Project are: 

ANNExIII-7 
CRA Activity: 

• 	 Communities whose residents receive funding from the Facility will invest in public 

goods to create an enabling environment to support producers and enterprises to invest in 

improved practices and techniques; 

• 	 Application of climate-resilient techniques will help farmers better manage climate 

shocks; 

• 	 ICRIP will represent the priorities of communities regarding investments in access to 

water for small-scale irrigation, rangeland improvement, erosion control measures, 

afforestation, construction ofmarketing platforms and dry storage facilities, and access to 

market information; 

• 	 The CRA Activity and the World Bank-funded activities are implemented in a timely and 

effective manner; 

• 	 The land tenure interventions will reduce the risk of conflict over access to improved land 

and natural resources; 

• 	 The CRA Activity is supported by the OIE to build proper capacities ofthe Ministry of 

Agriculture and Livestock's Department of Veterinary Services to effectively reduce and 

monitor prevalence and avoid outbreaks oflivestock diseases; and 

• 	 All small works funded by MCA-Niger include training and technical assistance to 

Eligible Communes and end-users to clearly define costs and responsibilities to properly 

operate and maintain public investments in climate-resilient infrastructure. 

PRAPS Activity: 

• 	 The vaccinations will reach enough animals within the national herd to significantly 

reduce prevalence oftwo targeted diseases linked to animal mortality and morbidity; 

• 	 Training ofherders and the emergency response system are completed by the 


Government and the World Bank in a timely manner; 


• 	 Herders will apply improved natural resource management knowledge to reduce 


overgrazing and reclaim grazing areas; 


• 	 Animals will maintain health and weight ifthey have access to water points and rest 

areas; 

• 	 Herders will invest in animal fattening and obtain better prices for their animals at 


modernized and organized markets; 


• 	 More women will participate in organized markets; 

• 	 The land tenure interventions will reduce the risk of conflict over access to improved land 

and natural resources; and 

• 	 Modem and organized market platforms will attract more livestock sellers and buyers 

creating increased volume ofsales and competitive prices for pastoralists. 

4. Monitoring Component. 

As defined in the MCC M&E Policy, monitoring is the continuous, systematic collection of data 

on specified indicators to provide indications ofprogress toward objectives and the achievement 

of intermediate results along the way. To monitor progress toward the achievement ofresults of 

this Compact, the Monitoring Component ofthe M&E Plan will identify (i) the Indicators (as 

defined below), (ii) the definitions ofthe Indicators, (iii) the sources and methods for data 

ANNExIII-8 
collection, (iv) the frequency for data collection, (v) the party or parties responsible for collecting 

and analyzing relevant data, and (vi) the timeline for reporting on each Indicator to MCC. It 

should be noted that some Indicators will continue to be tracked after the Compact Term as 

necessary. 

4.1 Goal, Outcome, Output, and Process Indicators. The M&E Plan will measure the 

results ofthe Program using quantitative, objective, and reliable data ("Indicators"). 

a. The M&E Plan will establish baselines for every Indicator (each a, "Baseline"). 

An Indicator's Baseline should be established prior to the start ofthe corresponding Project, 

Activity and/or Sub-Activity. Baselines demonstrate that the problem can be specified in 

measurable terms, and are thus a pre-requisite for adequate intervention design. The 

Government will collect Baselines on the selected Indicators or verify already collected 

Baselines where applicable. 

b. The M&E Plan will establish a benchmark for each Indicator that specifies the 

expected value and the expected time by which the result will be achieved ("Target'). 

c. The M&E Plan will indicate which Indicators will be disaggregated by gender, 

income level, age and beneficiary types to the extent practical and applicable. 

d. MCC's Common Indicators (as described in the MCC M&E Policy) will also be 

included as relevant. 

e. Subject to prior written approval from MCC and in accordance with the MCC 

M&E Policy, the Government may add Indicators or refine the definitions and Targets of 

existing Indicators. 

f. MCA-Niger must report to MCC on monitoring Indicators in the M&E Plan on a 

quarterly basis using the ITT in the form provided by MCC. No changes to Indicators, Baselines 

or Targets may be made in the ITT until the changes have been approved in the M&E Plan. 

Additional guidance on Indicator reporting is contained in MCC's Guidance on Quarterly MCA 

Disbursement Request and Reporting Package. In the case that MCA-Niger submits a six-month 

disbursement request, the ITT must still be submitted quarterly. 

Key Indicators that can be reported on at least an annual basis will be included in 

quarterly monitoring indicator reports, while Indicators that require survey data or a longer time 

period to track will be tracked for evaluation purposes. The M&E Plan will contain the 

Indicators listed in the following tables: 

ANNExlll-9 
Table 1.1: Irrigation and Market Access -Indicators 

.. 

Compact Target 

Baseline Year 5 Year 8 

Result ·indicator Deli riition .Disaggregation Unit . (201:\)3 (2023)4 (2026) 

Goal Indicators 

Annual average gross 

agricultural income per Konni 238,363 1,542,318 1,789,177 

hectare within the 

irrigation perimeters 

selected for improvement 

CFA5 

Sia "CFA 544,631 2,633,904 2,633,905 Increased Gross under the Compact. This incomes for agricultural includes household rural income per consumption of Ouna-Kouanza CFA 166,975 3,085,201 3,085,201 households hectare agricultural products, 


which is valued at market 


prices. Investment and 
 Average CFA 316,656 2,420,474 2,502,761 operating costs are not 


subtracted. 


"J "'"°~... '\I-"'-~<:. ~?".,,_,., 3 ·~"'~J~:<f' &-~k- '!; ~ °"'. ""1'" 1 ... >" - . ) ....., ..,;!' >'!! Fv"" '11 

• Jrriglltfon ~er\met~D~~~l~l?ntent'~ifivit/i,., Mjfagem~ijf S~vf!~~n~~~ajlf.e~Fll,Cil!t~1!0~1:1;q¥lfy.;tP~I1c~;foHJI ~c~ify t'!I ""r,,"' -'?-,~ ""' ;.;: ,,~ ~ 9("(. ..~ ~ ii":(~ .._ !!o.'l ~.il"" ~ &!.,~ <l_~ c"'~:., ~.t:Ki..·"~11"-\~~~w ;, ..... .!I 11• .-! J -~ .. ~ 

Outcome Indicators 

Sorghum Kg/ha 1,569 2,170 2,466 

Greater 

production and 

yields of 

agricultural 

products 

Average 

annual crop 

yield per 

hectare 

Average annual output per 

hectare of certain crops 

Millet Kg/ha 394 1,124 1,124 

Cowpea 

(Niebe) Kg/ha 346 1,172 1,172 

Rice Kg/ha 1,967 5,649 5,649 

Beneficiaries 

adopt and 

apply 

improved 

skills in 

entrepreneurial 

and financial 

management, 

nutrition, and 

hygiene 

Men, women 

and youth 

participants 

with improved 

knowledge 

from 

management 

services 

Percentage oftraining 

participants with at least 

the minimum acceptable 

score on the knowledge 

test 

NIA Percentage TBD TBD TBD 

3 The baseline data was collected in 2015 and the economic analysis asswnes that the situation does not change until 

the Compact Projects start to have an effect. 

4 The difference between the "Baseline" of 2015 and "Year 5" of 2023 is greater than 5 years because ofthe time it 

takes to go from initial data collection to implementation. 

5 Values drawn from ERR data and economic analysis. Conversion rate used: $1=580 CFA 

ANNEX 111-10 
.. 

Compact Target 

.·Baseline Year 5 Year.S 

·Result 

IWUAsare 

functional 

Indicator 

IWUAsthat 

self-finance 

with fees 

covering 

assigned 

O&M&R 

. Definition . 

Number ofIWUAs that 

contribute 100% of 

assigned O&M&R costs 

Disaggregation 

NIA 

Unit 

Number 

(2015)3 

0 

(2023)~ 

5 

(2026) 

5 

Output Indicators 

Water 

infrastructure 

is constructed 

or 

rehabilitated 

Hectares 

irrigated 

The number ofhectares 

irrigated by the existing or 

new irrigation 

infrastructure that are 

either rehabilitated or 

constructed with MCC 

Funding 

Konni 

Sia 

Ouna-Kouanza 

Total 

Ha 

Ha 

Ha 

Ha 

519 

0 

0 

5196 

2,439 

689 

1,660 

4,788 

2,452 

821 

1,797 

5,070 

Producers 

receive 

productive 

ecosystem 

services and 

training on 

sustainability 

practices 

Individual 

producers 

trained 

The number ofprimary 

sector producers (farmers, 

ranchers, fishermen, and 

other primary sector 

producers) receiving 

technical assistance or 

participating in a training 

session (on ecosystem 

services and natural 

resource management 

approaches). This 

indicator will be 

disaggregated by sex, age 

and type ofproducer (for 

example, farmer, rancher). 

NIA Number 0 TBD TBD 

Formalization 

ofland rights 

& registration 

with clear 

criteria for 

land allocation 

Land rights 

formalized 

The number of household 

heads receiving formal 

recognition of ownership 

and/or use rights through 

certificates, titles, leases, 

or other recorded 

documentation by 

government institutions or 

traditional authorities at 

national or local levels. 

This indicator will be 

disaggregated by sex of 

the household head. 

Konni 

Sia 

Ouna-Kouanza 

Total 

Number 

Number 

Number 

Number 

0 

0 

0 

0 

3,400 

198 

586 

4,184 

3,400 

198 

586 

4,184 

6 The Konni perimeter already has an existing irrigation scheme, which only covers 519.55 ha during the dry season. 

During the rainy season the usable area increases due to rainfall. The Project is expected to close the gap between 

the rainy season area and the dry season area. 

ANNEX III-11 
Compact 'i'arget 

Baseline Year 5 )'car 8 

Result i'Jndicator Definition Disaggregation Unit (2015)3 . (2023)4 (2026) 

IWUAsare 

created and 

trained in 

management 

techniques 

'·. 

Increased 

traffic volume 

Reduced 

vehicle 

operating costs 

for users 

Improved road 

conditions 

Road 

improvements 

are completed 

IWUAs 

created 

Average 

annual daily 

traffic 

Vehicle 

operating 

costs 

Roughness 

Kilometers of 

roads 

completed 

Number ofIWUAs 

created and trained in 

irrigation water 

management techniques 

NIA 

Outcome Indicators 

The average number and 

type of vehicles per day, 

averaged over different 

times (day and night) and 

over different seasons to 

arrive at an annualized 

daily average 

Average cost per 

kilometer traveled7 

The measure of the 

roughness of the road 

surface, in meters of 

height per kilometer of 

distance traveled 

RN-35 

RN-7 

Rural Road 

Total 

RN-35 

RN-7 

Rural Road 

Total 

RN-35 (Gravel) 

RN-7 

Rural Road 

(Gravel) 

Output Indicators 

The length of roads in 

kilometers on which 

construction of new roads 

or reconstruction, 

rehabilitation, resurfacing 

or upgrading ofexisting 

roads is complete 

(certificates handed over 

and approved) 

RN-35 

RN-7 

Rural Road 

Total 

Number 

Number 

Number 

Number 

Number 

CFA 

CFA 

CFA 

CFA 

Meters per 

km 

Meters per 

km 

Meters per 

km 

Km 

Km 

Km 

Km 

0 

581 

1,625 

188 

2,394 

236 

329 

119 

228 

16 

8 

14.5 

0 

0 

0 

0 

5 

.. 

742 

2,125 

240 

3,107 

140 

284 

72 

166 

8 

2 

10 

187 

82.5 

37 

306.5 

5 

1,643 

2,708 

533 

4,884 

160 

284 

81 

175 

12 

2.2 

11 

187 

82.5 

37 

306.5 

7 This includes: generic cars; four-wheel drives; mini-buses; medium buses; 2-ton, 13-ton & 28-ton trucks; and 

multicycles. The results are based on average costs ofthe aforementioned categories. 

ANNEX IIl-12 
Table 1.2: Project 2: Climate-Resilient Communities Project- Indicators8 

Goal Indicators 

The per household savings from 

avoided animal mortality and 

CFA 0 morbidity due to infectious diseases 

(PRAPS Activity) 

4,672 5,686 

Increase in income The increase in net value of animal due 

or reduction of to fattening before market sale CFA 0 

Increased costs from PRAPS (PRAPS Activity) 

incomes for andCRA 

rural households Activities The value ofanimal feed savings due 

(multiple to pasture improvements (PRAPS CFA 0 

indicators) Activity) 

112,469 

6,375 

187,448 

10,625 

The increase in income due to 

increased area under small-scale CFA 0 irrigation and improved yields (CRA 

Activity) 

"'; :>!~ ..,~ . .., !<' -ti.~ ~II',,!!:;! ' "' ~ ~ 

.. ~-. ... :;•"' ~f '.)'...,_ ~·c ~ ~ . ~Atiivj ' ~~ ,~. ,,.., "''9 ~ ~ ~ 1!1 ~'<; .JJ .; :iii ~·4, •' •• . Outcome Indicators 

357,517 

"" ~ 4 

1,581,868 

More irrigated The total number lands under Hectares irrigated of new hectares NIA Number 0 improved 

management irrigated 

835 835 

The total number 

More irrigated Hectares with ofhectares with 

lands under access to access to NIA Ha 0 improved rehabilitated rehabilitated 

management irrigation irrigation 

infrastructure9 

Increased Average rate of 

returns to 

increase in profits Percenta Profit increase for agribusinesses NIA 0 funded agro­ that receive ge 

businesses 

mat chin ants 

1835 

TBD 

1835 

TBD 

Current baselines and targets for PRAPS and CRA Activities will be validated and adjusted as necessary 

consistent with MCC methodology. In addition, certain of the Indicators are not required by the World Bank and 

will be required by MCC. 

This is based upon information on 5 communes that the indicative ERR has determined meet the minimum 

threshold to qualify for MCC Funding. This indicator is not a World Bank indicator. It is a new indicator developed 

pursuant to this Compact. 

ANNEX III-13 

9 
... 

Basel Coin pact Target 

inc Year:' Year 8 

(201 

.Result .Indicator Definition Disaggregation LI nit .. $) (_2023)' ... (2026) 

Communes Percentage of 

apply improved targeted 

practices in soil, Communes which TBD NIA Percenta 

water and have constructed 0 100 NIA 

ge 

irrigation infrastructure to 

management support CRA 

.... ~ 

. ~ ~1. ·'ii-... """"" ~'!: "'1:­ 'Fl'i ':t'l'-1"' 

" - . ,';l""F,t r:( j*"! ·fjc f" J~°' ~ 11.,~' 3 °",_f ril . ". .. ~-~ . ! 0 ~6~ l'Jt ... '.;l " ~··-- ·~"9'~"' ~· 

•. l'li" <J , .:"J ~~ • 'd'-", ·~.. " ~~~S.-.\ctivj.ty, • t.,. ' ,, ~ Jj ;of­ . C!~ ~ Vi ~ '}/' •' .,(. """'"" " •.• 'i!!:i f' ...... >.!oil>'>< ' - . .. "'"''­

Outcome Indicators 

Reductions in the 

Lower animal production ofmilk, 

mortality and Reduction in beef and draft NIA Percenta TBD TBD morbidity power were TBD 

morbidity ge 

considered as 

morbidity losses 

Lower animal Reduction in Mortality measures Percenta mortality and the rate of animal NIA TBD TBD TBD 

morbidity mortality loss (death) ge 

TBD for herd prevalence of contagious Percenta TBD TBD TBD 

Improved Prevalence oftwo bovine pleuropneumonia (CBPP) ge 

animal health regional priority 

diseases TBD for post-vaccine seroprevalence Percenta TBD TBD TBD ofPPR ge 

Share of animals TBDforCBPP Percenta TBD TBD TBD 

Improved vaccinated against ge 

animal health two regional 

priority animal TBDforPPR Percenta TBD TBD TBD diseases ge 

.­

5. Evaluation Component. 

While good program monitoring is necessary for program management, it is not sufficient for 

assessing ultimate results. MCC therefore advocates the use of different types of evaluations as 

complementary tools to better understand the effectiveness ofits programs. As defined in the 

MCC M&E Policy, evaluation is the objective, systematic assessment of a program's design, 

implementation and results. MCC is committed to making its evaluations as rigorous as 

warranted in order to understand the causal impacts ofits programs on the expected outcomes 

and to assess cost effectiveness. The Evaluation Component ofthe M&E Plan may contain three 

types of evaluation activities as necessary: (i) independent evaluations (impact and/or 

performance evaluations), (ii) self-evaluation, and (iii) special studies, each ofwhich is further 

described in the MCC M&E Policy. 

a. Independent Evaluations. Every Project must undergo a comprehensive, 

independent evaluation (impact and/or performance) in accordance with the MCC M&E Policy. 

The Evaluation Component ofthe M&E Plan will describe the purpose ofthe evaluation, 

methodology, timeline, required MCC approvals and the process for collection and analysis of 

ANNEX IIl-14 
data for each evaluation. All independent evaluations must be designed and implemented by 

independent, third-party evaluators. Ifthe Government wishes to engage an evaluator, the 

engagement will be subject to the prior written approval of MCC. Contract terms must be 

acceptable to MCC and ensure non-biased results and the publication of results. 

For each independent evaluation, MCA-Niger is expected to review and provide feedback 

to independent evaluators on the evaluation design reports, evaluation materials (including 

questionnaires), baseline report (if applicable) and any interim/final reports in order to ensure 

proposed evaluation activities are feasible, and final evaluation products are technically and 

factually accurate. 

(i) Irrigation and Market Access Project 

The evaluation(s) will be designed to capture the likely effects ofthe Project on the expected 

outcomes ofincreasing production and yields of crops, as well as the volume and value oftraded 

agriculture products, and ultimately on the goal ofincreasing rural household incomes. Since 

there are many Activities and sub-Activities that contribute to these expected outcomes, multiple 

evaluation methodologies will be used to answer the evaluation questions. An independent 

evaluator or multiple evaluators will be hired to assess evaluation methodology options; 

however, it is expected that the methodologies in the table below will be used: 

Evaluation Methodologies for Project 1 

Component Eva:luati?n_ ?\p_c . lWethodology 

Irrigation Perimeter 

Development Activity 

Performance 

Performance and Impact 

Pre-post 

Pre-post for some components 

and randomized control trial 

for some components 

depending on final evaluation 

questions 

Management Services and 

Market Facilitation Activity 

Roads for Market Access 

Activity 

Performance HDM-IV road modeling, prepost 

Policy Reform Activity Performance Pre-post, political economy 

analysis 

The M&E Plan is expected to contain evaluation questions; however, the final list of questions 

will be documented in the final evaluation designs. The evaluation questions cover the entire 

Project as well as each separate Activity. The evaluation indicators are embedded in the 

indicator tables above. 

(ii) Climate-Resilient Communities Project 

The evaluation(s) will be designed to capture the likely effects ofthe Project on the expected 

outcomes ofimproving crop and livestock productivity, sustaining natural resources critical to 

production, and increasing market sales oftargeted commodities, and ultimately on the goal of 

increasing rural household incomes (ifpossible). An independent evaluator or multiple 

ANNEX III-15 

evaluators will be hired to assess evaluation methodology options; however, it is expected that 

the methodologies in the table below will be used: 

Evaluation Methodologies for Project 2 

Component . :Eva'.luation Ty·pc .Methodology 

CRA Activity Performance (potential 

impact evaluation on the 

Facility) 

Mixed methods 

PRAPS Activity Impact and Performance Pre-post for some components 

and randomized control trial for 

some components depending on 

final evaluation questions 

The M&E Plan is expected to contain a list of evaluation questions; however, the final list of 

questions will be documented in the final evaluation designs. 

(a) Self-Evaluation. Upon completion ofthe Compact Term, both MCC and 

MCA-Niger will comprehensively assess three fundamental questions: (i) Did the Program meet 

the Program and Project Objectives; (ii) Why did the Program meet or not meet the Program and 

Project Objectives; and (iii) What lessons can be learned from the implementation experience 

(both procedural and substantive). The MCA-Niger staff will draft the Compact Completion 

Report ("CCR") in the last year ofthe Compact Term to evaluate these fundamental questions 

and other aspects ofProgram performance. Each MCA-Niger department will be responsible for 

drafting its own section to the CCR for its own activities, subject to cross-departmental review. 

(b) Special Studies. Plans for conducting special studies will be determined 

jointly between the Government and MCC before the approval ofthe M&E Plan. The M&E 

Plan will identify and make provision for any special studies, ad hoc evaluations and research 

that may be needed as part ofthe monitoring and evaluating ofthis Compact. Either MCC or the 

Government may request special studies or ad hoc evaluations ofProjects, Activities or the 

Program as a whole, prior to the end ofthe Compact. 

The results of all evaluations will be made publicly available in accordance with the MCC M&E 

Policy. 

6. Data Quality Reviews. 

Data Quality Reviews ("DQR") are a mechanism to review and analyze the utility, objectivity 

and integrity ofperformance information. DQRs are to cover: a) quality of data, b) data 

collection instruments, c) survey sampling methodology, d) data collection procedures, e) data 

entry, storage and retrieval processes, f) data manipulation and analyses and g) data 

dissemination. MCC requires that an independent entity conduct the DQR, such as a local or 

international specialized firm or research organization, or an individual consultant, depending on 

the size ofthe Program or Project in review. The frequency and timing of data quality reviews 

must be set forth in the M&E Plan; however MCC may request a DQR at any time. DQRs 

should be timed to occur before or early enough in the Compact Term that meaningful remedial 

measures (if any) may be taken depending on the results ofthe review. The methodology for the 

review should include a mix of document and record reviews, site visits, key informant 

ANNEX 111-16 
interviews, and focus groups. All MCC's common indicators listed in the Compact's ITI will be 

included in the DQR. 

7. Other Components of the M&E Plan. 

In addition to the monitoring and evaluation components, the M&E Plan will include the 

following components: 

a. Management Information System. The M&E Plan will describe the information 

system that will be used to collect data, store, process and deliver information to relevant 

stakeholders in such a way that the Program information collected and verified pursuant to the 

M&E Plan is at all times accessible and useful to those who wish to use it. The system 

development will take into consideration the requirement and data needs ofthe components of 

the Program, and will be aligned with existing MCC systems, other service providers and 

ministries. 

b. Budget. A detailed cost estimate for all components ofthe M&E Plan. 

8. Responsibility for Developing the M&E Plan. 

MCC desires to "[refrain] from requesting the introduction of performance indicators that are not 

consistent with countries' national development strategies."1

°For this reason, primary 

responsibility for developing the M&E Plan lies, with the M&E directorate ofMCA-Niger with 

support and input from MCC's M&E and economist staff. The M&E Plan must be developed in 

conjunction with key stakeholders, including MCA-Niger leadership and sector leads, the MCC 

Resident Country Mission, and other MCC staff (such as Environmental and Social Performance 

and Gender and Social Inclusion), as well as external stakeholders, as applicable. While the 

entire M&E Plan must be developed collaboratively, MCC and MCA-Niger Project/Activity 

leads are expected to guide the selection of Indicators at the process' and output levels that are 

particularly useful for management and oversight of Projects and Activities. 

9. Approval and Implementation of the M&E Plan. 

The approval and implementation ofthe M&E Plan, as amended from time to time, will be in 

accordance with the Program Implementation Agreement, any other relevant Supplemental 

Agreement and the MCC M&E Policy. All M&E Plan modifications proposed by MCA-Niger 

must be submitted to MCC for prior written approval. The M&E Plan may undergo peer review 

within MCC before the beginning ofthe formal approval process. 

10. Post Compact M&E Plan. 

As part ofthe planning process for winding up the Program at the end ofthe Compact Term, 

MCC and MCA-Niger will develop a post-Compact M&E Plan designed to observe the 

persistence of benefits created under this Compact. This plan should describe future monitoring 

and evaluation activities, identify the individuals and organizations that will undertake these 

activities, and provide a budget framework for future monitoring and evaluation. The postCompact M&E Plan should build directly offthe Compact M&E Plan. 

1o Busan Partnership for Effective Development Cooperation, Busan Outcome Document, 1December2011, p. 5 

ANNEX III-17 
ANNEX IV 


CONDITIONS PRECEDENT TO DISBURSEMENT OF COMPACT DEVELOPMENT 

FUNDING 

This Annex N sets forth the conditions precedent applicable to Disbursements of Compact 

Development Funding (each a "CDF Disbursement'). Capitalized terms used in this Annex N 

and not defined in this Compact will have the respective meanings assigned thereto in the 

Program Implementation Agreement. Upon execution ofthe Program Implementation 

Agreement, each CDP Disbursement will be subject to all ofthe terms ofthe Program 

Implementation Agreement, except that the conditions to each CDF Disbursement will continue 

to be those set forth in this Annex N. 

1. 	 Conditions Precedent to Initial CDF Disbursement. 

Each of the following must have occurred or been satisfied prior to the initial CDP 

Disbursement: 

a. 	 The Government (or MCA-Niger) has delivered to MCC: 

(i) 	 an interim fiscal accountability plan acceptable to MCC; 

(ii) 	 a CDP procurement plan acceptable to MCC; 

(iii) 	 A legal opinion by the Director General ofLegal and Consular Affairs of 

the Ministry of Foreign Affairs analyzing the Government's international 

obligations that may apply as a result ofthe Irrigation and Market Access 

Project; and 

(iv) 	 A plan, in form and substance satisfactory to MCC and consistent with the 

terms ofIFC Performance Standard 4, outlining its contributions and a 

procedure for ensuring the security ofthe Program and any related 

activities by MCA-Niger. 

2. Conditions Precedent to the Initial CDF Disbursements under the Climate-Resilient 

Communities Project. 

Each of the following must have occurred or been satisfied, in form and substance satisfactory to 

MCC, prior to the initial CDF Disbursement to the LPIU or AgPIU, as the case may be, under 

the Climate-Resilient Communities Project: 

a. 	 The Government (or MCA-Niger) has delivered to MCC: 

(i) 	 for the LPIU, (1) a true and correct copy ofthe PRAPS Transfer 

Agreement, duly executed and in full force and effect, and (2) evidence of 

adoption ofthe modifications and annexes required by MCC to the 

PRAPS Operations Manual; and 
(ii) 	 for the AgPIU, (1) a true and correct copy ofthe CRA Transfer 

Agreement, duly executed and in full force and effect, and (2) evidence of 

adoption ofthe modifications and annexes required by MCC to the CRA 

Operations Manual. 

3. 	 Condition Precedent to the Irrigation and Market Access Project. 

Prior to the initial CDF Disbursement for resettlement and land tenure contracts under the 

Irrigation and Perimeter Development Activity, the Government will have issued a decree or 

other formal legal instrument and made available the resources and support required for the 

applicable Land Commissions implicated by such construction or works contract to fulfill their 

land administration duties (including, without limitation, guiding the proper land governance 

actions) in form and substance satisfactory to MCC. For the avoidance of doubt, such Land 

Commissions must include a qualified technical assistant. 

4. Conditions Precedent to all CDF Disbursements (Including Initial CDF 

Disbursement). 

Each ofthe following must have occurred or been satisfied prior to each CDF Disbursement: 

a. The Government (or MCA-Niger) has delivered to MCC the following 

documents, in form and substance satisfactory to MCC: 

(i) 	 a completed Disbursement Request, together with the applicable Periodic 

Reports, for the applicable Disbursement Period, all in accordance with 

the Reporting Guidelines; 

(ii) 	 a certificate ofthe Government (or MCA-Niger), dated as ofthe date of 

the CDF Disbursement Request, in such form as provided by MCC; 

(iii) 	 if a Fiscal Agent has been engaged, a Fiscal Agent Disbursement 

Certificate; and 

(iv) 	 if a Procurement Agent has been engaged, a Procurement Agent 

Disbursement Certificate. 

b. If any proceeds ofthe CDF Disbursement are to be deposited in a bank account, 

MCC has received satisfactory evidence that (i) the Bank Agreement has been executed and (ii) 

the Permitted Accounts have been established. 

c. Appointment of an entity or individual to provide fiscal agent services, as 

approved by MCC, until such time as the Government provides to MCC a true and complete 

copy of a Fiscal Agent Agreement, duly executed and in full force and effect, and the fiscal agent 

engaged thereby is mobilized. 

d. Appointment of an entity or individual to provide procurement agent services, as 

approved by MCC, until such time as the Government provides to MCC a true and complete 

ANNExIV-2 
copy ofthe Procurement Agent Agreement, duly executed and in full force and effect, and the 

procurement agent engaged thereby is mobilized. 

e. MCC is satisfied, in its sole discretion, that (i) the activities being funded with 

such CDF Disbursement are necessary, advisable or otherwise consistent with the goal of 

facilitating the implementation ofthis Compact and will not violate any applicable law or 

regulation; (ii) no material default or breach of any covenant, obligation or responsibility by the 

Government, MCA-Niger or any Government entity has occurred and is continuing under this 

Compact or any Supplemental Agreement; (iii) there has been no violation of, and the use of 

requested funds for the purposes requested will not violate, the limitations on use or treatment of 

MCC Funding set forth in Section 2.7 ofthis Compact or in any applicable law or regulation; (iv) 

any Taxes paid with MCC Funding through the date ninety (90) days prior to the start ofthe 

applicable Disbursement Period have been reimbursed by the Government in full in accordance 

with Section 2.8(c) ofthis Compact; and (v) the Government has satisfied all ofits 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. 

f. For any CDF Disbursement occurring after this Compact has entered into force in 

accordance with Article 7: MCC is satisfied, in its sole discretion, that (1) MCC has received 

copies of any reports due from any technical consultants (including environmental auditors 

engaged by MCA-Niger) for any Activity since the previous Disbursement Request, and all such 

reports are in form and substance satisfactory to MCC; (2) the Implementation Plan Documents 

and Fiscal Accountability Plan are current and updated and are in form and substance 

satisfactory to MCC, and there has been progress satisfactory to MCC on the components ofthe 

Implementation Plan for any relevant Projects or Activities related to such CDF Disbursement; 

(3) there has been progress satisfactory to MCC on the M&E Plan for the Program or relevant 

Project or Activity and substantial compliance with the requirements ofthe M&E Plan (including 

the targets set forth therein and any applicable reporting requirements set forth therein for the 

relevant Disbursement Period); ( 4) there has been no material negative finding in any financial 

audit report delivered in accordance with this Compact and the Audit Plan, for the prior two 

quarters (or such other period as the Audit Plan may require); (5) MCC does not have grounds 

for concluding that any matter certified to it in the related MCA Disbursement Certificate, the 

Fiscal Agent Disbursement Certificate or the Procurement Agent Disbursement Certificate is not 

as certified; and (vi) if any ofthe officers or key staff ofMCA-Niger have been removed or 

resigned and the position remains vacant, MCA-Niger is actively engaged in recruiting a 

replacement. 

g. MCC has not determined, in its sole discretion, that an act, omission, condition or 

event has occurred that would be the basis for MCC to suspend or terminate, in whole or in part, 

this Compact or MCC Funding in accordance with Section 5 .1 ofthis Compact. 

ANNExlV-3 
ANNEXV 

ADDITIONAL CONDITIONS PRECEDENT TO ENTRY INTO FORCE 

In addition to the conditions set forth in Section 7.2 ofthe Compact, the Government will have 

delivered the following to MCC prior to the entry into force ofthis Compact: 

a. evidence oflegislative or other necessary approval, in form and substance 

satisfactory to MCC, ofthe Fertilizer Action Plan and to enable its implementation. 

ANNEXV-1 

ANNEX VI 


DEFINITIONS 


Activity means one or more ofthe activities that will be undertaken in fartherance ofeach 

Project. 

Additional Representative has the meaning provided in Section 4.2. 

AFD has the meaning provided in Part B.1. d ofAnnex l 

AgPJU has the meaning provided in Part B.2.a(ii) ofAnnex l 

Audit Guidelines has the meaning provided in Section 3.8(a). 

Baseline has the meaning provided in Part 4.1 a ofAnnex Ill 

Board ofDirectors has the meaning provided in Part C. l. a ofAnnex l 

CBPP has the meaning provided in Part B.2.a(i). 

CCR has the meaning provided in Part 5.a(ii) ofAnnex Ill 

CDFDisbursement has the meaning provided in the preamble to Annex IV. 

Climate-Resilient Agriculture Activity and CRA Activity has the meaning provided in Part 

B.2.a(ii) ofAnnex l 

Climate-Resilient Communities Project has the meaning provided in Part A.2 ofAnnex l 


Compact has the meaning provided in the Preamble. 


Compact Development Funding has the meaning provided in Section 2.2(a). 


Compact Goal has the meaning provided in Section 1.1. 


Compact Records has the meaning provided in Section 3. 7(a). 


Compact Term has the meaning provided in Section 7. 4. 


Corridor Investment Plans has the meaning provided in Part B.2.a(i) ofAnnex l 


Covered Provider has the meaning provided in the Audit Guidelines. 


CRA Operations Manual has the meaning provided in Part B. 2. a(ii) ofAnnex l 


CRA Transfer Agreement has the meaning provided in Part B.2.a(ii) ofAnnex l 


Disbursement has the meaning provided in Section 2. 4. 


ANNEXVI-1 
DQR has the meaning provided in Part 6 ofAnnex III 


Eligible Communes has the meaning provided in Part B.2.a ofAnnex I 


Eligible Investments has the meaning provided in Part B.2.a(i) ofAnnex 1 


ERR has the meaning provided in Part 2.1 ofAnnex III 


Establishment Decree has the meaning provided in Section 3.2(b). 

Evaluation Component has the meaning provided in Part 1 ofAnnex III 


Excess CDFAmount has the meaning provided in Section 2.2(d). 

Facility has the meaning provided in Part B.2.a(ii) ofAnnex I 


Facility Manager has the meaning provided in Part B.2.a(ii) ofAnnex 1 


Facility Manual has the meaning provided in Part B.2.a(ii) ofAnnex I 


Fertilizer Action Plan has the meaning provided in Part B.l.a(iv) ofAnnex 1 


Fiscal Agent has the meaning provided in Part C. 3 ofAnnex I 


GDP means gross domestic product. 


Government has the meaning provided in the Preamble. 


Grant has the meaning provided in Section 3.6{b). 


Ha means hectares. 

ICRIP has the meaning provided in Part B.2.a(ii). 

IFC Performance Standards has the meaning provided in Part B. l. b ofAnnex I 


Implementation Letter(s) has the meaning provided in Section 3.5. 

Implementing Entity has the meaning provided in Part C.2 ofAnnex L 


Implementing Entity Agreement has the meaning provided in Part C.2 ofAnnex I 


Indicators has the meaning provided in Part 4.1 ofAnnex III 


Inspector General has the meaning provided in Section 3. 7(c). 

Intellectual Property means all registered and unregistered trademarks, service marks, logos, 

names, trade names and all other trademark rights; all registered and unregistered copyrights; 

all patents, inventions, shop rights, know how, trade secrets, designs, drawings, art work, plans, 

ANNExVI-2 
prints, manuals, computer files, computer software, hard copy files, catalogues, specifications, 

and other proprietary technology and similar information; and all registrations for, and 

applicationsfor registration of any ofthe foregoing, that are financed, in whole or in part, using 

MCC Funding. 

Irrigation and Market Access Project has the meaning provided in Part B. l. a ofAnnex l 

Irrigation Perimeter Development Activity has the meaning provided in Part B.l.a(i) ofAnnex l 

ITT has the meaning provided in Part 2.a ofAnnex Ill 

IWUA has the meaning provided in Part B.l.a(ii) ofAnnex l 

KJW has the meaning provided in Part B. l. d ofAnnex l 

Km means kilometers. 

Land Commissions means the land commissions created pursuant to Ordonnance 93-015 du 2 

mars 1993 fixant les principles d'orientation du Code Rural and its implementing regulations 


and decrees. 


Late Payment Interest has the meaning provided in Section 5. 4. 


Livestock Corridor means the international transhumance corridors in four regions (Dasso, 


Maradi, Tahoua, and Tilla-beri), as such corridors are defined in the Ordonnance N° 2010- 29 


du 20 mai 2010 relative au pastoralisme du Code Rural. 


LPIU has the meaning provided in Part B.2.a(i). 


M&E has the meaning provided in Part 1 ofAnnex Ill 


M&E Plan has the meaning provided in Part 1 ofAnnex Ill 


Management Services and Market Facilitation Activity has the meaning provided in Part 


B.1.a(ii) ofAnnex l 


Management Team has the meaning provided in Part C.l.c ofAnnex l 


MCA Act has the meaning provided in Section 2.2(a). 


Millennium Challenge Account-Niger or MCA-Niger has the meaning provided in Section 


3.2(b). 


MCC has the meaning provided in the Preamble. 


MCC Environmental Guidelines has the meaning provided in Section 2. 7(c). 


MCC Funding has the meaning provided in Section 2.3. 


ANNEXVI-3 
MCC Gender Policy means the MCC Gender Policy (including any guidance documents issued 

in connection with such policy). 

MCC M&E Policy has the meaning provided in the first paragraph ofAnnex 111 

MCC Program Closure Guidelines means the MCC Program Closure Guidelines (including any 

guidance documents issued in connection with such guidelines). 

MCC Program Procurement Guidelines has the meaning provided in Section 3. 6(a). 

MCC Website means the MCC website at www.mcc.gov. 

Ministry ofAgriculture and Livestock means the Government's Ministry ofAgriculture and 

Livestock and any successor agenc(ies). 


Monitoring Component has the meaning provided in Part 1 ofAnnex 111 


Multi-Year Financial Plan Summary has the meaning provided in Annex 11 


National Water Resources Plan has the meaning provided in Part B.l.a(iv) ofAnnex 1 


Niger has the meaning provided in the Preamble. 


OIE means the World Organization for Animal Health. 


OMB has the meaning provided in Section 3.8(b). 


Party and Parties have the meaning provided in the Preamble. 


PermittedAccount has the meaning provided in Section 2. 4. 


Policy Reform Activity has the meaning provided in Part B.l.a(iv) ofAnnex 1 


PPR has the meaning provided in Part B.2.a(i) ofAnnex 1 


PRAPS Activity has the meaning provided in Part B.2.a(i) ofAnnex 1 


PRAPS Operations Manual has the meaning provided in Part B.2.a(i) ofAnnex I. 


PRAPS Transfer Agreement has the meaning provided in Part B.2.a(i) ofAnnex 1 


Principal Representative has the meaning provided in Section 4.2. 


Procurement Agent has the meaning provided in Part C. 4 ofAnnex 1 


Program has the meaning provided in the Preamble. 


Program Assets means any assets, goods or property (real, tangible or intangible) purchased or 


financed in whole or in part (directly or indirectly) by MCC Funding. 

ANNEXVl-4 
Program Funding has the meaning provided in Section 2.1. 

Program Guidelines means collectively the Audit Guidelines, the MCC Environmental 

Guidelines, the MCC Guidelines for Accountable Entities and Implementation Structures, the 

MCC Program Procurement Guidelines, the Reporting Guidelines, the MCC M&E Policy, the 

MCC Cost Principles for Government Affiliates Involved in Compact Implementation, the MCC 

Program Closure Guidelines, the MCC Gender Policy, the MCC Gender Integration Guidelines, 

the MCC Guidelines for Economic and Beneficiary Analysis, the MCC Standards for Global 

Marking, and any other guidelines, policies or guidance papers relating to the administration of 

MCC-funded compact programs, in each case, as such may be postedfrom time to time on the 

MCC Website. 

Program Implementation Agreement and PIA have the meaning provided in Section 3.1. 

Program Objective has the meaning provided in Section 1.2. 

Project(s) has the meaning provided in Section 1.2. 

Project Objective(s) has the meaning provided in Section 1.3. 

Provider means (i) any entity ofthe Government that receives or uses MCC Funding or any 

other Program Asset in carrying out activities in fartherance ofthis Compact or (ii) any third 

party that receives at least US$50, 000 in the aggregate ofMCC Funding (other than as salary or 

compensation as an employee ofan entity ofthe Government) during the Compact Term. 

Ramsar Convention means the Convention on Wetlands ofInternational Importance Especially 

as Waterfowl Habitat dated February 2, 1971, and as amended by Protocol on March 12, 1982 

and as farther amended by the Amendments ofMay 28, 1987. 

Reporting Guidelines means the MCC Guidance on Quarterly MCA Disbursement Request and 

Reporting Package. 

RISE has the meaning provided in Part B.l.a(iii) ofAnnex 1 

RN7 has the meaning provided in Part B. l. a(iii) ofAnnex 1 

RN35 has the meaning provided in Part B.l.a(iii) ofAnnex 1 

Roads/or Market Access Activity has the meaning provided in Part B.l.a(iii) ofAnnex 1 

Sambera Rural Road has the meaning provided in Part B.l.a(iii) ofAnnex 1 

Stakeholders' Committee has the meaning provided in Part C. l. d ofAnnex 1 

SupplementalAgreement means any agreement between (A) the Government (or any 

Government affiliate, including MCA-Niger) and MCC (including, but not limited to, the PIA), 

or (BJ MCC and/or the Government (or any Government affiliate, including MCA-Niger), on the 

one hand, and any third party, on the other hand, including any ofthe Providers, in each case, 

ANNEXVI-5 
setting forth the details ofany funding, implementing or other arrangements in furtherance of 


and in compliance with, this Compact. 


Target has the meaning provided in Part 4.1 b ofAnnex Ill 


Taxes has the meaning provided in Section 2.8(a). 


United States Dollars or USD or US$ means the lawful currency ofthe United States of 


America. 


USAID means the US. Agency for International Development. 


ANNEXVl-6