9974 Federal Register / Vol. 77, No. 34 / Tuesday, February 21, 2012 / Notices 

APPENDIX—Continued 

[35 TAA petitions instituted between 1/23/12 and 2/3/12] 

TA–W Subject firm 

(petitioners) Location Date of institution 

Date of 

petition 

81291 ........... ITT Exelis (Union) .................................................................... Roanoke, VA ........................... 02/03/12 02/01/12 

81292 ........... Siemens Medical Solutions, USA, Inc. (Company) ................. Concord, CA ........................... 02/03/12 02/01/12 

81293 ........... NCO Financial Systems (Workers) .......................................... Canonsburg, PA ..................... 02/03/12 02/02/12 

[FR Doc. 2012–3923 Filed 2–17–12; 8:45 am] 

BILLING CODE 4510–FN–P 

DEPARTMENT OF LABOR 

Employment and Training 

Administration 

2002 Reopened—Previously Denied 

Determinations; Notice of Negative 

Determinations On Reconsideration 

under the Trade Adjustment 

Assistance Extension Act of 2011 

Regarding Eligibility To Apply for 

Worker Adjustment Assistance 

In accordance with Section 223 of the 

Trade Act of 1974, as amended (19 

U.S.C. 2273) (Act) the Department of 

Labor (Department) herein presents 

summaries of negative determinations 

on reconsideration regarding eligibility 

to apply for Trade Adjustment 

Assistance for workers by case 

(TA–W–) number regarding negative 

determinations issued during the period 

of February 13, 2011 through October 

21, 2011. Notices of negative 

determinations were published in the 

Federal Register and on the 

Department’s Web site, as required by 

Section 221 of the Act (19 U.S.C. 2271). 

As required by the Trade Adjustment 

Assistance Extension Act of 2011 

(TAAEA), all petitions that were denied 

during this time period were 

automatically reopened. The 

reconsideration investigation revealed 

that the following workers groups have 

not met the certification criteria under 

the provisions of TAAEA. 

After careful review of the additional 

facts obtained, the following negative 

determinations on reconsideration have 

been issued. 

TA–W–80,112; STK, LLC, Lemont 

Furnace, PA. 

TA–W–80,112A; STK, Inc, Coconut 

Creek, FL. 

TA–W–80,430; Product Dynamics Ltd, 

Levittown, PA. 

I hereby certify that the 

aforementioned negative determinations 

on reconsideration were issued on 

January 30, 2012 through February 2, 

2012. These determinations are 

available on the Department’s Web site 

at tradeact/taa/taa_search_form.cfm 

under the searchable listing of 

determinations or by calling the Office 

of Trade Adjustment Assistance toll-free 

at 888–365–6822. 

Dated: February 10, 2012. 

Del Min Amy Chen, 

Certifying Officer, Office of Trade Adjustment 

Assistance. 

[FR Doc. 2012–3921 Filed 2–17–12; 8:45 am] 

BILLING CODE 4510–FN–P 

MILLENNIUM CHALLENGE 

CORPORATION 

[MCC FR 12–01] 

Notice of Entering Into a Compact With 

the Republic of Cape Verde 

AGENCY: Millennium Challenge 

Corporation. 

ACTION: Notice. 

SUMMARY: In accordance with Section 

610(b)(2) of the Millennium Challenge 

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

D), the Millennium Challenge 

Corporation (MCC) is publishing a 

summary and the complete text of the 

Millennium Challenge Compact 

between the United States of America, 

acting through the Millennium 

Challenge Corporation, and the 

Republic of Cape Verde. Representatives 

of the United States Government and 

the Republic of Cape Verde executed the 

Compact documents on February 10, 

2012. 

Dated: February 14, 2012. 

Melvin F. Williams, Jr., 

VP/General Counsel and Corporate Secretary, 

Millennium Challenge Corporation. 

Summary of Millennium Challenge 

Compact with the Republic of Cape 

Verde 

The five-year, $66.2 million compact 

with the Government of Cape Verde (the 

‘‘GoCV’’) is aimed at reducing poverty 

through economic growth (the 

‘‘Compact’’). To this end, the Compact’s 

two projects are intended to increase 

household incomes in project areas by 

reforming the water and sanitation and 

land management sectors, both critical 

constraints to economic growth. 

1. Project Overview and Activity 

Descriptions 

To advance the goal of reducing 

poverty through economic growth, the 

Compact will fund two projects. 

The $41.1 million Water, Sanitation, 

and Hygiene Project is designed to 

establish a financially sound, 

transparent, and accountable 

institutional basis for the delivery of 

water and sanitation services to Cape 

Verdean households and businesses. 

The $17.3 million Land Management for 

Investment Project is designed to reduce 

the time required to establish secure 

property rights and to provide 

conclusive land information in areas of 

near-term high development potential in 

Cape Verde. 

Water, Sanitation and Hygiene (WASH) 

Project 

Cape Verde is an extremely waterscarce country, and relies heavily on 

desalinization of water, which is an 

expensive and energy-intensive process. 

The WASH sector is characterized by 

relatively poor levels of service, 

including intermittent water supply. In 

addition, domestic water consumption 

in Cape Verde is, at approximately 35 

liters per day, half that of a low-income 

peer group of countries, and barely 

above subsistence levels; not surprising 

given that Cape Verde has the highest 

water tariff in Africa and among the 

highest in the world. The poor, and 

particularly female-headed households, 

are especially vulnerable as only 9% of 

poor households have access to the 

networked public water supply 

network. Additionally, Cape Verde is 

not on track to meet its Millennium 

Development Goal for sanitation. Low 

levels of water supply, combined with 

a population in which over 50% is 

without any access to improved 

sanitation services, results in significant 

public health problems, including 

diarrhea, malaria and dengue. 

The GoCV has worked closely with 

MCC to develop an ambitious 

performance-based project. Through 

extensive consultation with civil 

society, private sector and government 

stakeholders, as well as MCC technical 

assistance, the Cape Verdean team 

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Federal Register / Vol. 77, No. 34 / Tuesday, February 21, 2012 / Notices 9975 

identified the core of the problem as 

policy and institutional challenges, in 

addition to lack of infrastructure. The 

GoCV therefore developed a clear policy 

and institutional reform action plan for 

the sector, and has already 

demonstrated political will and reform 

momentum by approving a policy 

reform paper for the sector, and 

establishing a policy reform 

commission. 

The $41.1 million project is expected 

to improve delivery of water and 

sanitation services to Cape Verdean 

households and firms. The approach to 

improving sector performance relies on 

a three-pronged strategy: (i) Reforming 

national policy and regulatory 

institutions; (ii) transforming inefficient 

utilities into autonomous corporate 

entities operating on a commercial 

basis; and (iii) improving the quality 

and reach of infrastructure in the sector. 

The WASH Project comprises the 

following three activities: 

• National Institutional and 

Regulatory Reform Activity. Institutional 

and regulatory reform activities at the 

national level are expected to improve 

planning systems and regulatory 

processes including tariff setting. MCC 

will support the creation of a new 

National Agency for Water and 

Sanitation responsible for policy and 

planning of all water resources, 

domestic water supply, wastewater and 

sanitation. MCC will also strengthen the 

existing regulatory organization to better 

regulate economic and technical aspects 

of the WASH sector. Finally, the project 

will build the capacity of the 

environmental directorate to expand its 

existing environmental protection 

functions to include water and 

wastewater quality. As part of the 

proposed reform of institutions and 

regulation, the WASH project will 

provide technical assistance and 

resources for the integration of gender 

and social analysis and objectives into 

national policies and planning. 

• Utility Reform Activity. The 

objective of this activity is to assist 

highly inefficient municipal utility 

departments to merge and restructure 

themselves into financially and 

administratively independent corporate 

entities. Regulatory changes will be 

required to support this transition. Once 

formed, the new utilities will require 

support and capacity building to 

improve their planning capacities and 

operating efficiency, and to reduce their 

high levels of commercial losses. MCC 

efforts will focus on supporting the 

formation of the proposed utility on the 

island of Santiago, which represents 

half the population of Cape Verde, and 

will be designed so as to facilitate 

similar utility restructurings elsewhere 

in the country. The social and gender 

assessment (SGA) work at this level will 

integrate these objectives into policy, 

planning, human resources and budgets. 

• Infrastructure Grant Facility. The 

proposed compact will provide funding 

for an Infrastructure Grant Facility to 

fund much needed infrastructure capital 

improvements in the WASH sector 

while also promoting continued 

national level reform and providing an 

incentive for utilities to accelerate the 

corporatization process. MCC will only 

release funds into the Infrastructure 

Grant Facility once broad national 

policy and utility reform conditions 

precedent have been met. The 

Infrastructure Grant Facility will 

provide grants to any eligible utility, 

qualifying based on continuous 

improvement on commercialization of 

utility operations. Project grant 

applications from qualified applicants 

will be evaluated based on a set of 

transparent financial, economic, 

technical, implementation, 

environmental, and social criteria. 

Given the central role that women and 

girls play in water and sanitation at the 

household level, ensuring that 

infrastructure investments are selected 

and designed with due attention to 

social and gender considerations and 

appropriate information, education, and 

communication is critical to meeting the 

ultimate health and economic objectives 

of the WASH project. 

Land Management for Investment 

Project 

No conclusive source of information 

about land property exists in Cape 

Verde. Research suggests that up to 92 

percent of land rights claims in Cape 

Verde do not have the legal protection 

that would be accorded by proper rights 

registration. Two different land 

registries, judicial and municipal, each 

contain partial information about only a 

fraction of the country’s land parcels. 

Additional records systems hold 

information about state-owned land. 

The information tends to be outdated 

and is often conflicting. No source 

contains map-based information 

indicating actual location of a parcel of 

land over which a right is claimed. 

Confusion over ownership and 

boundaries has resulted in unauthorized 

land sales and the delay or cancellation 

of public as well as private investment 

projects. Confusion also limits the 

ability of small firms and households to 

create value and increase incomes 

through investment in their property. 

When coupled with lengthy procedures 

across a range of institutions, 

inconclusive information also generates 

time-consuming and costly land rights 

registration processes for all land users, 

further hampering domestic and foreign 

investment and economic growth. Cape 

Verde ranks #104 out of 183 economies 

in the property registration indicator in 

the 2011 IFC Doing Business report. 

The $17.3 million project is expected 

to improve Cape Verde’s investment 

climate by: (i) Refining the legal, 

institutional, and procedural 

environment to increase the reliability 

of land information, achieve greater 

efficiency in land administration 

transactions, and to strengthen 

protection of land rights; (ii) developing 

and implementing a new land 

information management system; and 

(iii) clarifying parcel rights and 

boundaries on targeted islands with 

high investment potential. 

The project supports the GoCV 

creating a single reliable and easily 

accessible source of land rights and land 

boundaries information, which is 

expected to strengthen Cape Verde’s 

investment climate for large and small 

investors and to reduce land registration 

costs for all users. The project comprises 

two activities: 

• Legal and Institutional Foundations 

Activity. This activity will work at a 

national level to support necessary legal 

reform, as well as the creation of a new, 

common information and transaction 

system for each of the country’s core 

land administration institutions. This 

system is designed to achieve greater 

efficiency in land registration-related 

transactions and land administration in 

the short term, and more efficient tax 

administration in the long term. 

• Rights and Boundaries Activity. 

Building on the legal and institutional 

groundwork, the Rights and Boundaries 

Activity will support actual clarification 

of parcel rights and boundaries in 

targeted islands of high tourism 

investment potential. This new 

information will be input into the 

information system, enabling all land 

users to more quickly and conclusively 

identify land parcel boundaries and 

rights. 

2. Compact Budget 

Projects and activities Budget 

(millions) 

Water, Sanitation, and Hygiene (WASH) Project ....... $41.10 

National Institutional and 

Regulatory Reform Activity 6.68 

Utility Reform Activity ........... 12.07 

Infrastructure Grant Facility .. 22.35 

Land Management for Investment Project ............... 17.26 

Legal and Institutional Foundations Activity .................. 4.22 

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9976 Federal Register / Vol. 77, No. 34 / Tuesday, February 21, 2012 / Notices 

Projects and activities Budget 

(millions) 

Rights and Boundaries Activity ....................................... 13.04 

Monitoring and Evaluation .... 1.39 

Program Administration ........ 6.48 

Total MCC Funding ....... 66.23 

GoCV Contribution ............... 9.93 

Total (including GoCV 

contribution) ............... 76.16 

3. Administration 

The Compact includes program 

administration costs estimated at $6.48 

million over a five year timeframe, 

including the costs of administration, 

management, auditing, and fiscal and 

procurement services. In addition, the 

cost of monitoring and evaluation of the 

Compact is budgeted at $1.39 million. 

4. Benefits and Beneficiaries 

The Water, Sanitation and Hygiene 

Project is expected to yield an economic 

rate of return (ERR) of 13 percent. ERR 

calculations are an estimate, using the 

best information available at the time. 

This figure represents a potential range 

of outcomes that account for the 

uncertainty of core parameters. The 

National Institutional and Regulatory 

Reform Activity and the Utility Reform 

Activity are expected to: (i) Reduce the 

average cost of water; (ii) reduce 

commercial losses; and (iii) release 

government resources from 

unproductive subsidization of the sector 

to productive spending to increase 

growth. The expected ERR for the 

proposed institutional development 

activities is 15 percent, and the initial 

beneficiaries are the population of 

Santiago Island, which numbered 

approximately 278,000 in 2010. With 

GoCV and other donor efforts, the 

corporatization of utilities is expected to 

extend throughout Cape Verde during or 

following compact completion. 

The second part of the economic 

analysis considers the cost effectiveness 

of operating the Infrastructure Grant 

Facility to finance infrastructure 

investments among corporatized 

utilities. The expected ERR for the 

Infrastructure Grant Facility is 11 

percent, with a wide variance because of 

the uncertainty regarding the number 

and types of projects to be financed, and 

the entities meeting the criteria. Any 

project financed under the facility must 

meet a minimum ERR of 12 percent. The 

analysis estimates that, on average, a 

population of 48,000, or just over 10 

percent of the current national 

population, would benefit from the 

operation of the Infrastructure Grant 

Facility. 

The ERR for the Land Management for 

Investment Project is expected to be 22 

percent. Based on estimates of 

incremental employment opportunities, 

it is estimated that at least 13,000 

people would benefit from increased 

tourism development as a consequence 

of improving the process of land 

registration. This number does not 

include the broader population on the 

islands, which also is expected to 

benefit from land registration 

improvements. Based on incremental 

employment beneficiaries (i.e., new jobs 

created), investment costs are relatively 

high per beneficiary, but the payoffs to 

the economy in terms of the accelerated 

development of tourism-related 

employment are potentially significant. 

Because tourism is a key economic 

driver, the projected tourism impact was 

selected as the most quantifiable ERR 

model with demonstrable and 

observable impact within a short to 

medium timeframe. Other potential 

benefits at the national level due to the 

legal and institutional change and new 

information systems, or other benefits to 

the 118,000 people living in the target 

islands beyond tourism impact, are not 

included in the ERR model, but will be 

tracked as part of the monitoring 

strategy and impact evaluation. 

Millennium Challenge Compact 

Between the United States of America 

Acting Through the Millennium 

Challenge Corporation and The 

Republic of Cape Verde 

Millennium Challenge Compact 

Table of Contents 

Article 1. Goal and Objectives 

Section 1.1 Compact Goal 

Section 1.2 Program Objectives 

Section 1.3 Project Objectives 

Article 2. Funding and Resources 

Section 2.1 Program Funding 

Section 2.2 Compact Implementation 

Funding 

Section 2.3 MCC Funding 

Section 2.4 Disbursement 

Section 2.5 Interest 

Section 2.6 Government Resources; 

Budget 

Section 2.7 Limitations of the Use of MCC 

Funding 

Section 2.8 Taxes 

Section 2.9 Lower Middle Income 

Countries 

Article 3. Implementation 

Section 3.1 Program Implementation 

Agreement 

Section 3.2 Government Responsibilities 

Section 3.3 Policy Performance 

Section 3.4 Accuracy of Information 

Section 3.5 Implementation Letters 

Section 3.6 Procurement and Grants 

Section 3.7 Records; Accounting; Covered 

Providers; Access 

Section 3.8 Audits; Reviews 

Article 4. Communications 

Section 4.1 Communications 

Section 4.2 Representatives 

Section 4.3 Signatures 

Article 5. Termination; Suspension; 

Expiration 

Section 5.1 Termination; Suspension 

Section 5.2 Consequences of 

Termination, Suspension or Expiration 

Section 5.3 Refunds; Violation 

Section 5.4 Survival 

Article 6. Compact Annexes; Amendments; 

Governing Law 

Section 6.1 Annexes 

Section 6.2 Amendments 

Section 6.3 Inconsistencies 

Section 6.4 Governing Law 

Section 6.5 Additional Instruments 

Section 6.6 References to MCC Web site 

Section 6.7 References to Laws, 

Regulations, Policies, and Guidelines 

Section 6.8 MCC Status 

Article 7. Entry Into Force 

Section 7.1 Domestic Requirements 

Section 7.2 Conditions Precedent to Entry 

Into Force 

Section 7.3 Date of Entry into Force 

Section 7.4 Compact Term 

Section 7.5 Provisional Application 

Annex I: Program Description 

Annex II: Multi-Year Financial Plan 

Summary 

Annex III: Description of the Monitoring and 

Evaluation Plan 

Annex IV: Conditions To Disbursement of 

Compact Implementation Funding 

Annex V: Definitions 

Millennium Challenge Compact 

Preamble 

This Millennium Challenge Compact 

(this ‘‘Compact’’) is between the United 

States of America, acting through the 

Millennium Challenge Corporation, a 

United States government corporation 

(‘‘MCC’’), and the Republic of Cape 

Verde (‘‘Cape Verde’’), acting through 

its government (the ‘‘Government’’) as 

represented by the Ministry of Finance 

and Planning. MCC and the Government 

are referred to in this Compact 

individually as a ‘‘Party’’ and 

collectively as the ‘‘Parties.’’ Capitalized 

terms used in this Compact shall have 

the meanings provided in Annex V. 

Recalling that the Parties successfully 

concluded an initial Millennium 

Challenge Compact that advanced the 

progress of Cape Verde in achieving 

lasting economic growth and poverty 

reduction, demonstrated the strong 

partnership between the Parties, and 

was implemented in accordance with 

MCC’s core policies and standards; 

Recognizing that the Parties are 

committed to the shared goals of 

promoting economic growth and the 

elimination of extreme poverty in Cape 

Verde and that MCC assistance under 

this subsequent Compact supports Cape 

Verde’s demonstrated commitment to 

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Federal Register / Vol. 77, No. 34 / Tuesday, February 21, 2012 / Notices 9977 

strengthening good governance, 

economic freedom and investments in 

people; 

Recalling that the Government 

consulted with the private sector and 

civil society of Cape Verde to determine 

the priorities for the use of MCC 

assistance and developed and submitted 

to MCC a proposal consistent with those 

priorities; and 

Recognizing that MCC wishes to help 

Cape Verde implement a program to 

achieve the goal and objectives 

described herein (as such program 

description and objectives may be 

amended from time to time in 

accordance with the terms hereof, the 

‘‘Program’’); 

The Parties hereby agree as follows: 

Article 1. Goal and Objectives 

Section 1.1 Compact Goal 

The goal of this Compact is to reduce 

poverty through economic growth in 

Cape Verde (the ‘‘Compact Goal’’). 

MCC’s assistance will be provided in a 

manner that strengthens good 

governance, economic freedom, and 

investments in the people of Cape 

Verde. 

Section 1.2 Program Objectives 

The objectives of the Program are to 

reduce the costs upon the economy of 

inefficiently provided public services 

and to remove institutional conditions 

that impede private sector investment 

(the ‘‘Program Objectives’’). The 

Program consists of the projects 

described in Annex I (each a ‘‘Project’’ 

and collectively, the ‘‘Projects’’). 

Section 1.3 Project Objectives 

The objectives of the Projects (each a 

‘‘Project Objective’’ and collectively, the 

‘‘Project Objectives’’) are as follows: 

(a) The objective of the Water, 

Sanitation and Hygiene Project is to 

establish a financially sound, 

transparent, and accountable 

institutional basis for the delivery of 

water and sanitation services to Cape 

Verdean households and firms by: (i) 

Reforming national policy and 

regulatory institutions; (ii) transforming 

inefficient utilities into autonomous 

corporate entities operating on a 

commercial basis; and (iii) improving 

the quality and reach of infrastructure in 

the sector; and 

(b) The objective of the Land 

Management for Investment Project is to 

reduce the time required for establishing 

secure property rights and to establish 

more conclusive land information in 

areas of near-term, high development 

potential in Cape Verde by: (i) Refining 

the legal, institutional and procedural 

environment to increase reliability of 

land information, achieve greater 

efficiency in land administration 

transactions, and strengthen protection 

of land rights; (ii) developing and 

implementing a new land information 

management system; and (iii) clarifying 

parcel rights and boundaries on targeted 

islands with high investment potential. 

Article 2. Funding and Resources 

Section 2.1 Program Funding 

Upon entry into force of this Compact 

in accordance with Section 7.3, MCC 

shall grant to the Government, under the 

terms of this Compact, an amount not to 

exceed Sixty Two Million Two Hundred 

Thirty Thousand United States Dollars 

(US$62,230,000) (‘‘Program Funding’’) 

for use by the Government to implement 

the Program. The allocation of Program 

Funding is generally described in 

Annex II. 

Section 2.2 Compact Implementation 

Funding 

(a) Upon signing of this Compact, 

MCC shall grant to the Government, 

under the terms of this Compact and in 

addition to the Program Funding 

described in Section 2.1, an amount not 

to exceed Four Million United States 

Dollars (US$4,000,000) (‘‘Compact 

Implementation Funding’’) under 

Section 609(g) of the Millennium 

Challenge Act of 2003, as amended (the 

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

facilitate implementation of the 

Compact, including for the following 

purposes: 

(i) Financial management and 

procurement activities (including costs 

related to agents procured by MCC to 

provide standby fiscal and procurement 

agent services, if required); 

(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 studies; and 

(v) Other activities to facilitate 

Compact implementation as approved 

by MCC. 

The allocation of Compact 

Implementation Funding is generally 

described in Annex II. 

(b) Each Disbursement of Compact 

Implementation Funding is subject to 

satisfaction of the conditions precedent 

to such disbursement as set forth in 

Annex IV. 

(c) If MCC determines that the full 

amount of Compact Implementation 

Funding available under Section 2.2(a) 

exceeds the amount that reasonably can 

be utilized for the purposes set forth in 

Section 2.2(a), MCC, by written notice to 

the Government, may withdraw the 

excess amount, thereby reducing the 

amount of the Compact Implementation 

Funding available under Section 2.2(a) 

(such excess, the ‘‘Excess CIF Amount’’). 

In such event, the amount of Compact 

Implementation Funding granted to the 

Government under Section 2.2(a) shall 

be reduced by the Excess CIF Amount, 

and MCC shall have no further 

obligations with respect to such Excess 

CIF Amount. 

(d) MCC, at its option by written 

notice to the Government, may elect to 

grant to the Government an amount 

equal to all or a portion of such Excess 

CIF Amount as an increase in the 

Program Funding, and such additional 

Program Funding shall be subject to the 

terms and conditions of this Compact 

applicable to Program Funding. 

Section 2.3 MCC Funding 

Program Funding and Compact 

Implementation Funding are 

collectively referred to in this Compact 

as ‘‘MCC Funding,’’ and includes any 

refunds or reimbursements of Program 

Funding or Compact Implementation 

Funding paid by the Government in 

accordance with this Compact. 

Section 2.4 Disbursement 

In accordance with this Compact and 

the Program Implementation 

Agreement, MCC shall disburse MCC 

Funding for expenditures incurred in 

furtherance of the Program (each 

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

the satisfaction of all applicable 

conditions precedent, the proceeds of 

Disbursements shall be made available 

to the Government, at MCC’s sole 

election, by (a) deposit to one or more 

bank accounts established by the 

Government and acceptable to MCC 

(each, a ‘‘Permitted Account’’) or (b) 

direct payment to the relevant provider 

of goods, works or services for the 

implementation of the Program. MCC 

Funding may be expended only for 

Program expenditures. 

Section 2.5 Interest 

The Government shall pay or transfer 

to MCC, in accordance with the Program 

Implementation Agreement, any interest 

or other earnings that accrue on MCC 

Funding prior to such funding being 

used for a Program purpose. 

Section 2.6 Government Resources; 

Budget 

(a) Consistent with Section 609(b)(2) 

of the Act, the Government shall make 

a contribution towards meeting the 

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9978 Federal Register / Vol. 77, No. 34 / Tuesday, February 21, 2012 / Notices 

Program Objectives and Project 

Objectives of this Compact. Annex II 

describes such contribution in more 

detail. In addition, the Government 

shall provide all funds and other 

resources, and shall take all actions, that 

are necessary to carry out the 

Government’s responsibilities under 

this Compact. 

(b) The Government shall 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 

of the Program. 

(c) The Government shall not reduce 

the normal and expected resources that 

it would otherwise receive or budget 

from sources other than MCC for the 

activities contemplated under this 

Compact and the Program. 

(d) Unless the Government discloses 

otherwise to MCC in writing, MCC 

Funding shall be in addition to the 

resources that the Government would 

otherwise receive or budget for the 

activities contemplated under this 

Compact and the Program. 

Section 2.7 Limitations on the Use of 

MCC Funding 

The Government shall 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 or by posting 

from time to time on the MCC Web site 

at www.mcc.gov (the ‘‘MCC Web site’’), 

including but not limited to the 

following purposes: 

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

military, police, militia, national guard 

or other quasi-military organization or 

unit; 

(b) For any activity that is likely to 

cause a substantial loss of United States 

jobs or a substantial displacement of 

United States production; 

(c) To undertake, fund or otherwise 

support any activity that is likely to 

cause a significant environmental, 

health, or safety hazard, as further 

described in MCC’s environmental and 

social assessment guidelines and any 

guidance documents issued in 

connection with the guidelines posted 

from time to time on the MCC Web site 

or otherwise made available to the 

Government (collectively, the ‘‘MCC 

Environmental Guidelines’’); or 

(d) To pay for the performance of 

abortions as a method of family 

planning or to motivate or coerce any 

person to practice abortions, to pay for 

the performance of involuntary 

sterilizations as a method of family 

planning or to coerce or provide any 

financial incentive to any person to 

undergo sterilizations or to pay for any 

biomedical research which relates, in 

whole or in part, to methods of, or the 

performance of, abortions or involuntary 

sterilization as a means of family 

planning. 

Section 2.8 Taxes 

(a) Unless the Parties specifically 

agree otherwise in writing, the 

Government shall 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 Cape Verde, reasonable in 

amount and imposed on a nondiscriminatory basis) (‘‘Taxes’’) of or in 

Cape Verde (including any such Taxes 

imposed by a national, regional, local or 

other governmental or taxing authority 

of or in Cape Verde). Specifically, and 

without limiting the generality of the 

foregoing, MCC Funding shall 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 

Cape Verde 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 (x) natural persons who are 

citizens or permanent residents of Cape 

Verde, (y) social security taxes or other 

similar charges levied on an employer 

in connection with hiring employees 

who are citizens or permanent residents 

of Cape Verde, and (z) legal persons 

formed under the laws of Cape Verde 

(but excluding MCA-Cape Verde II and 

any other entity formed for the purpose 

of implementing the Government’s 

obligations hereunder). 

(b) The mechanisms that the 

Government shall use to implement the 

tax exemption required by Section 2.8(a) 

are set forth in the Program 

Implementation Agreement. Such 

mechanisms may include exemptions 

from the payment of Taxes that have 

been granted in accordance with 

applicable law, refund or 

reimbursement of Taxes by the 

Government to MCC, MCA-Cape Verde 

II or to the taxpayer, or payment by the 

Government to MCA-Cape Verde II or 

MCC, for the benefit of the Program, of 

an agreed amount representing any 

collectible Taxes on the items described 

in Section 2.8(a). 

(c) If a Tax has been paid contrary to 

the requirements of Section 2.8(a) or the 

Program Implementation Agreement, 

the Government shall refund promptly 

to MCC (or to another party as 

designated by MCC) the amount of such 

Tax in United States dollars or the 

currency of Cape Verde within sixty (60) 

days (or such other period as may be 

agreed in writing by the Parties) after 

the Government is notified in writing 

(whether by MCC or MCA-Cape Verde 

II) that such Tax has been paid. 

(d) No MCC Funding, proceeds 

thereof or Program Assets may be 

applied by the Government in 

satisfaction of its obligations under 

Section 2.8(c). 

Section 2.9 Lower Middle Income 

Countries 

Section 606(b) of the Act restricts the 

amount of assistance that MCC may 

provide to ‘‘lower middle income 

countries,’’ a term that is defined in the 

Act and includes Cape Verde. To the 

extent that MCC determines, in MCC’s 

reasonable discretion, that the amount 

of Program Funding granted to the 

Government in this Compact may result 

in a violation of Section 606(b) of the 

Act, MCC, at any time and from time to 

time upon written notice to the 

Government, may reduce the amount of 

Program Funding, or withhold any 

Disbursement of Program Funding, to 

avoid or remedy such a violation. 

Article 3. Implementation 

Section 3.1 Program Implementation 

Agreement 

The Parties shall enter into an 

agreement providing further detail on 

the implementation arrangements, fiscal 

accountability and disbursement and 

use of MCC Funding, among other 

matters (the ‘‘Program Implementation 

Agreement’’ or ‘‘PIA’’); and the 

Government shall implement the 

Program in accordance with this 

Compact, the PIA, any other 

Supplemental Agreement and any 

Implementation Letter. 

Section 3.2 Government 

Responsibilities 

(a) The Government has principal 

responsibility for overseeing and 

managing the implementation of the 

Program. 

(b) The Government will create and 

designate Millennium Challenge 

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Account—Cape Verde II, as the 

accountable entity to implement the 

Program and to exercise and perform the 

Government’s right and obligation to 

oversee, manage and implement the 

Program, including without limitation, 

managing the implementation of 

Projects and their Activities, allocating 

resources and managing procurements. 

Such entity shall be referred to herein 

as ‘‘MCA-Cape Verde II,’’ and shall have 

the authority to bind the Government 

with regard to all Program activities. 

The designation contemplated by this 

Section 3.2(b) shall not relieve the 

Government of any obligations or 

responsibilities hereunder or under any 

related agreement, for which the 

Government remains fully responsible. 

MCC hereby acknowledges and consents 

to the designation in this Section 3.2(b). 

(c) The Government shall ensure that 

any Program Assets or services funded 

in whole or in part (directly or 

indirectly) by MCC Funding are used 

solely in furtherance of this Compact 

and the Program unless MCC agrees 

otherwise in writing. 

(d) The Government shall take all 

necessary or appropriate steps to 

achieve the Program Objectives 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 shall fully 

comply with the Program Guidelines, as 

applicable, in its implementation of the 

Program. 

(f) The Government will grant to MCC 

a perpetual, irrevocable, royalty-free, 

worldwide, fully paid, assignable right 

and license to practice or have practiced 

on its behalf (including the right to 

produce, reproduce, publish, repurpose, 

use, store, modify, or make available) 

any portion or portions of Intellectual 

Property as MCC sees fit in any 

medium, now known or hereafter 

developed, for any purpose whatsoever. 

Section 3.3 Policy Performance 

In addition to undertaking the specific 

policy, legal and regulatory reform 

commitments identified in Annex I, the 

Government shall seek to maintain and 

to improve its level of performance 

under the policy criteria identified in 

Section 607 of the Act, and the selection 

criteria and methodology used by MCC. 

Section 3.4 Accuracy of Information 

The Government assures MCC that, as 

of the date this Compact is signed by the 

Government, the information provided 

to MCC by or on behalf of the 

Government in the course of reaching 

agreement with MCC on this Compact is 

true, correct and complete in all 

material respects. 

Section 3.5 Implementation Letters 

From time to time, MCC may provide 

guidance to the Government in writing 

on any matters relating to this Compact, 

MCC Funding or implementation of the 

Program (each, an ‘‘Implementation 

Letter’’). The Government shall apply 

such guidance in implementing the 

Program. The Parties may also issue 

jointly agreed-upon Implementation 

Letters to confirm and record their 

mutual understanding on aspects 

related to the implementation of this 

Compact, the PIA or other related 

agreements. 

Section 3.6 Procurement and Grants 

(a) The Government shall ensure that 

the procurement of all goods, works and 

services by the Government or any 

Provider to implement the Program 

shall be consistent with the ‘‘MCC 

Program Procurement Guidelines’’ 

posted from time to time on the MCC 

Web site (the ‘‘MCC Program 

Procurement Guidelines’’). The MCC 

Program Procurement Guidelines 

include the following requirements, 

among others: 

(i) Open, fair, and competitive 

procedures must be used in a 

transparent manner to solicit, award and 

administer contracts and to procure 

goods, works and services; 

(ii) Solicitations for goods, works, and 

services must be based upon a clear and 

accurate description of the goods, works 

and services to be acquired; 

(iii) Contracts must be awarded only 

to qualified contractors that have the 

capability and willingness to perform 

the contracts in accordance with their 

terms on a cost effective and timely 

basis; and 

(iv) No more than a commercially 

reasonable price, as determined, for 

example, by a comparison of price 

quotations and market prices, shall be 

paid to procure goods, works and 

services. 

(b) The Government shall ensure that 

any grant issued to any nongovernmental entity in furtherance of 

the Program (the ‘‘Grant’’) is selected, 

implemented and administered 

pursuant to open, fair, and competitive 

procedures administered in a 

transparent manner. In furtherance of 

this requirement, and prior to the 

issuance of any Grant, the Government 

and MCC shall agree upon written 

procedures to govern the identification 

of potential recipients, the selection and 

the award of Grants. Such agreed 

procedures shall be posted on the MCACape Verde II Web site. 

Section 3.7 Records; Accounting; 

Covered Providers; Access 

(a) Government Books and Records. 

The Government shall maintain, and 

shall 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 of 

the Program (‘‘Compact Records’’). In 

addition, the Government shall furnish 

or cause to be furnished to MCC, upon 

its request, originals or copies of such 

Compact Records. 

(b) Accounting. The Government shall 

maintain and shall use its best efforts to 

ensure that all Covered Providers 

maintain Compact Records in 

accordance with generally accepted 

accounting principles prevailing in the 

United States, or at the Government’s 

option and with MCC’s prior written 

approval, other accounting principles, 

such as those (i) prescribed by the 

International Accounting Standards 

Board, or (ii) then prevailing in Cape 

Verde. Compact Records must be 

maintained for at least five (5) years 

after the end of the Compact Term or for 

such longer period, if any, required to 

resolve any litigation, claims or audit 

findings or any applicable legal 

requirements. 

(c) Providers and Covered Providers. 

Unless the Parties agree otherwise in 

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

the Government that receives or uses 

MCC Funding or any other Program 

Asset in carrying out activities in 

furtherance of this Compact or (ii) any 

third party that receives at least 

US$50,000 in the aggregate of MCC 

Funding (other than as salary or 

compensation as an employee of an 

entity of the Government) during the 

Compact Term. A ‘‘Covered Provider’’ is 

(i) a non-United States Provider that 

receives (other than pursuant to a direct 

contract or agreement with MCC) 

US$300,000 or more of MCC Funding in 

any Government fiscal year or any other 

non-United States person or entity that 

receives, directly or indirectly, 

US$300,000 or more of MCC Funding 

from any Provider in such fiscal year, or 

(ii) any United States Provider that 

receives (other than pursuant to a direct 

contract or agreement with MCC) 

US$500,000 or more of MCC Funding in 

any Government fiscal year or any other 

United States person or entity that 

receives, directly or indirectly, 

US$500,000 or more of MCC Funding 

from any Provider in such fiscal year. 

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(d) Access. Upon MCC’s request, the 

Government, at all reasonable times, 

shall permit, or cause to be permitted, 

authorized representatives of MCC, an 

authorized Inspector General of MCC 

(‘‘Inspector General’’), the United States 

Government Accountability Office, any 

auditor responsible for an audit 

contemplated herein or otherwise 

conducted in furtherance of this 

Compact, and any agents or 

representatives engaged by MCC or the 

Government to conduct any assessment, 

review or evaluation of the Program, the 

opportunity to audit, review, evaluate or 

inspect facilities, assets and activities 

funded in whole or in part by MCC 

Funding. 

Section 3.8 Audits; Reviews 

(a) Government Audits. The 

Government shall, on an annual basis 

(or on a more frequent basis if requested 

by MCC in writing), conduct, or cause 

to be conducted, financial audits of all 

disbursements of MCC Funding 

covering the period from signing of this 

Compact until the following December 

31 and covering each twelve-month 

period thereafter ending December 31, 

through the end of the Compact Term. 

In addition, upon MCC’s request, the 

Government shall ensure that such 

audits are conducted by an independent 

auditor approved by MCC and named 

on the list of local auditors approved by 

the Inspector General or a United Statesbased certified public accounting firm 

selected in accordance with the 

‘‘Guidelines for Financial Audits 

Contracted by MCA’’ (the ‘‘Audit 

Guidelines’’) issued and revised from 

time to time by the Inspector General, 

which are posted on the MCC Web site. 

Audits shall be performed in accordance 

with the Audit Guidelines and be 

subject to quality assurance oversight by 

the Inspector General. Each audit must 

be completed and the audit report 

delivered to MCC no later than 90 days 

after the first period to be audited and 

no later than 90 days after the end of the 

audit period, or such other period as the 

Parties may otherwise agree in writing. 

(b) Audits of Other Entities. The 

Government shall ensure that MCC 

financed agreements between the 

Government or any Provider, on the one 

hand, and (i) a United States nonprofit 

organization, on the other hand, state 

that the United States nonprofit 

organization is subject to the applicable 

audit requirements contained in OMB 

Circular A–133, ‘‘Audits of States, Local 

Governments, and Non-Profit 

Organizations,’’ issued by the United 

States Office of Management and 

Budget; (ii) a United States for-profit 

Covered Provider, on the other hand, 

state that the United States for-profit 

organization is subject to audit by the 

applicable United States Government 

agency, unless the Government and 

MCC agree otherwise in writing; and 

(iii) a non-US Covered Provider, on the 

other hand, state that the non-US 

Covered Provider is subject to audit in 

accordance with the Audit Guidelines. 

(c) Corrective Actions. The 

Government shall use its best efforts to 

ensure that each Covered Provider (i) 

takes, where necessary, appropriate and 

timely corrective actions in response to 

audits, (ii) considers whether the results 

of the Covered Provider’s audit 

necessitates adjustment of the 

Government’s records, and (iii) permits 

independent auditors to have access to 

its records and financial statements as 

necessary. 

(d) Audit by MCC. MCC shall have the 

right to arrange for audits of the 

Government’s use of MCC Funding. 

(e) Cost of Audits, Reviews or 

Evaluations. MCC Funding may be used 

to fund the costs of any audits, reviews 

or evaluations required under this 

Compact. 

Article 4. Communications 

Section 4.1 Communications 

Any document or communication 

required or submitted by either Party to 

the other under this Compact must be in 

writing and, except as otherwise agreed 

with MCC, in English. For this purpose, 

the address of each Party is set forth 

below. 

To MCC 

Millennium Challenge Corporation, 

Attention: Vice President, Compact 

Operations, (with a copy to the Vice 

President and General Counsel), 875 

Fifteenth Street NW., Washington, DC 

20005, United States of America, 

Telephone: (202) 521–3600, Facsimile: 

(202) 521–3700, Email: 

VPOperations@mcc.gov (Vice President, 

Compact Operations), 

VPGeneralCounsel@mcc.gov (Vice 

President and General Counsel). 

To the Government 

Ministry of Finance and Planning, 

Attention: Minister of Finance and 

Planning, (with a copy to the National 

Director of Planning), Avenida Amilcar 

Cabral, P.O. Box #30, Praia, Cape Verde, 

Telephone: +238 260 7500/1, Facsimile: 

+238 261 3897. 

To MCA-Cape Verde II 

Upon establishment of MCA-Cape 

Verde II, MCA-Cape Verde II will notify 

the Parties of its contact details. 

Section 4.2 Representatives 

For all purposes of this Compact, the 

Government shall be represented by the 

individual holding the position of, or 

acting as, Minister of Finance and 

Planning of the Republic of Cape Verde, 

and MCC shall be represented by any of 

the individuals holding the positions of, 

or acting as, the Vice President or 

Deputy Vice President for Compact 

Operations (each of the foregoing, a 

‘‘Principal Representative’’). Each Party, 

by written notice to the other Party, may 

designate one or more additional 

representatives (each, an ‘‘Additional 

Representative’’) for all purposes other 

than signing amendments to this 

Compact. The Government will 

designate an Additional Representative. 

A Party may change its Principal 

Representative to a new representative 

that holds a position of equal or higher 

authority upon written notice to the 

other Party. 

Section 4.3 Signatures 

Signatures to this Compact and to any 

amendment to this Compact shall be 

original signatures appearing on the 

same page or in an exchange of letters 

or diplomatic notes. With respect to all 

documents arising out of this Compact 

(other than the Program Implementation 

Agreement) and amendments thereto, 

signatures may, as appropriate, be 

delivered by facsimile or electronic mail 

and in counterparts and shall be binding 

on the Party delivering such signature to 

the same extent as an original signature 

would be. 

Article 5. Termination; Suspension; 

Expiration 

Section 5.1 Termination; Suspension 

(a) Either Party may terminate this 

Compact without cause in its entirety by 

giving the other Party thirty (30) days’ 

prior written notice. MCC may also 

terminate this Compact or MCC Funding 

without cause in part by giving the 

Government thirty (30) days’ prior 

written notice. 

(b) MCC may, immediately, upon 

written notice to the Government, 

suspend or terminate this Compact or 

MCC Funding, in whole or in part, and 

any obligation related thereto, if MCC 

determines that any circumstance 

identified by MCC, as a basis for 

suspension or termination (whether in 

writing to the Government or by posting 

on the MCC Web site) has occurred, 

which circumstances include but are 

not limited to the following: 

(i) The Government fails to comply 

with its obligations under this Compact 

or any other agreement or arrangement 

entered into by the Government in 

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connection with this Compact or the 

Program; 

(ii) An event or series of events has 

occurred that makes it probable that the 

Program Objectives or any of the Project 

Objectives shall not be achieved during 

the Compact Term or that the 

Government shall not be able to perform 

its obligations under this Compact; 

(iii) A use of MCC Funding or 

continued implementation of this 

Compact or the Program violates 

applicable law or United States 

Government policy, whether now or 

hereafter in effect; 

(iv) The Government or any other 

person or entity receiving MCC Funding 

or using Program Assets is engaged in 

activities that are contrary to the 

national security interests of the United 

States; 

(v) An act has been committed or an 

omission or an event has occurred that 

would render Cape Verde ineligible to 

receive United States economic 

assistance under Part I of the Foreign 

Assistance Act of 1961, as amended (22 

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

application of any provision of such act 

or any other provision of law; 

(vi) The Government has engaged in 

a pattern of actions inconsistent with 

the criteria used to determine the 

eligibility of Cape Verde for assistance 

under the 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 of 

Termination, Suspension or Expiration 

(a) Upon the suspension or 

termination, in whole or in part, of this 

Compact or any MCC Funding, or upon 

the expiration of this Compact, the 

provisions of Section 4.2 of the Program 

Implementation Agreement shall govern 

the post-suspension, post-termination or 

post-expiration treatment of MCC 

Funding, any related Disbursements and 

Program Assets. Any portion of this 

Compact, MCC Funding, the Program 

Implementation Agreement or any other 

Supplemental Agreement that is not 

suspended or terminated shall remain in 

full force and effect. 

(b) MCC may reinstate any suspended 

or terminated MCC Funding under this 

Compact if MCC determines that the 

Government or other relevant person or 

entity has committed to correct each 

condition for which MCC Funding was 

suspended or terminated. 

Section 5.3 Refunds; Violation 

(a) If any MCC Funding, any interest 

or earnings thereon, or any Program 

Asset is used for any purpose in 

violation of the terms of this Compact, 

then MCC may require the Government 

to repay to MCC in United States Dollars 

the value of the misused MCC Funding, 

interest, earnings, or asset, plus interest 

within thirty (30) days after the 

Government’s receipt of MCC’s request 

for repayment. The Government shall 

not use MCC Funding, proceeds thereof 

or Program Assets to make such 

payment. 

(b) Notwithstanding any other 

provision in this Compact or any other 

existing agreement to the contrary, 

MCC’s right under Section 5.3(a) for a 

refund shall continue during the 

Compact Term and for a period of (i) 

five (5) years thereafter or (ii) one (1) 

year after MCC receives actual 

knowledge of such violation, whichever 

is later. 

Section 5.4 Survival 

The Government’s responsibilities 

under this Section and Sections 2.7, 3.7, 

3.8, 5.2, 5.3, and 6.4 shall survive the 

expiration, suspension or termination of 

this Compact. 

Article 6. Compact Annexes; 

Amendments; Governing Law 

Section 6.1 Annexes 

Each annex to this Compact 

constitutes an integral part hereof, and 

references to ‘‘Annex’’ mean an annex to 

this Compact unless otherwise expressly 

stated. 

Section 6.2 Amendments 

(a) The Parties may amend this 

Compact only by a written agreement 

signed by the Principal Representatives 

(or such other government official 

designated by the relevant Principal 

Representative). 

(b) Notwithstanding Section 6.2(a), 

the Parties may agree in writing, signed 

by the Principal Representatives (or 

such other government official 

designated by the relevant Principal 

Representative) or any Additional 

Representative, to modify any Annex to 

(i) suspend, terminate or modify any 

Project or Activity, or to create a new 

project, (ii) change the allocations of 

funds as set forth in Annex II as of the 

date hereof (including to allocate funds 

to a new project), (iii) modify the 

implementation framework described in 

Annex I or (iv) add, delete or waive any 

condition precedent described in Annex 

IV; provided that, in each case, any such 

modification (A) is consistent in all 

material respects with the Program 

Objectives and Project Objectives, (B) 

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(d)), 

(C) does not cause the amount of 

Compact Implementation Funding to 

exceed the aggregate amount specified 

in Section 2.2(a), (D) does not reduce 

the Government’s responsibilities or 

contribution of resources required under 

Section 2.6(a), and (E) does not extend 

the Compact Term. 

Section 6.3 Inconsistencies 

In the event of any conflict or 

inconsistency between: 

(a) Any Annex and any of Articles 1 

through 7, such Articles 1 through 7, as 

applicable, shall prevail; or 

(b) this Compact and any other 

agreement between the Parties regarding 

the Program, this Compact shall prevail. 

Section 6.4 Governing Law 

This Compact is an international 

agreement and as such shall be 

governed by the principles of 

international law. 

Section 6.5 Additional Instruments 

Any reference to activities, obligations 

or rights undertaken or existing under or 

in furtherance of this Compact or 

similar language shall include activities, 

obligations and rights undertaken by, or 

existing under or in furtherance of any 

agreement, document or instrument 

related to this Compact and the 

Program. 

Section 6.6 References to MCC Web 

Site 

Any reference in this Compact, the 

PIA or any other agreement entered into 

in connection with this Compact, to a 

document or information available on, 

or notified by posting on the MCC Web 

site shall be deemed a reference to such 

document or information as updated or 

substituted on the MCC Web site from 

time to time. 

Section 6.7 References to Laws, 

Regulations, Policies and Guidelines 

Each reference in this Compact, the 

PIA or any other agreement entered into 

in connection with this Compact, to a 

law, regulation, policy, guideline or 

similar document shall 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 shall 

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. 

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Section 6.8 MCC Status 

MCC is a United States government 

corporation acting on behalf of the 

United States Government in the 

implementation of this Compact. MCC 

and the United States Government 

assume no liability for any claims or 

loss arising out of activities or omissions 

under this Compact. The Government 

waives any and all claims against MCC 

or the United States Government or any 

current or former officer or employee of 

MCC or the United States Government 

for all loss, damage, injury, or death 

arising out of activities or omissions 

under this Compact, and agrees that it 

shall not bring any claim or legal 

proceeding of any kind against any of 

the above entities or persons for any 

such loss, damage, injury, or death. The 

Government agrees that MCC and the 

United States Government or any 

current or former officer or employee of 

MCC or the United States Government 

shall be immune from the jurisdiction of 

all courts and tribunals of Cape Verde 

for any claim or loss arising out of 

activities or omissions under this 

Compact. 

Article 7. Entry Into Force 

Section 7.1 Domestic Requirements 

The Government shall proceed in a 

timely manner to complete all of its 

domestic requirements for each of the 

Compact and PIA to enter into force as 

an international agreement. 

Section 7.2 Conditions Precedent to 

Entry Into Force 

Before this Compact enters into force: 

(a) The Program Implementation 

Agreement must have been signed by 

the parties thereto; 

(b) The Government must have 

delivered to MCC: 

(i) A letter signed and dated by the 

Principal Representative of the 

Government, or such other duly 

authorized representative of the 

Government acceptable to MCC, 

confirming that the Government has 

completed its domestic requirements 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 

Attorney General of Cape Verde (or such 

other legal representative of the 

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 

for this Compact to enter into force and 

the satisfaction of Section 7.1, which 

MCC may post on its Web site or 

otherwise make publicly available; and 

(c) MCC shall not have determined 

that after signature of this Compact, the 

Government has engaged in a pattern of 

actions inconsistent with the eligibility 

criteria for MCC Funding. 

Section 7.3 Date of Entry Into Force 

This Compact shall enter into force on 

the date of the letter from MCC to the 

Government in an exchange of letters 

confirming that MCC has completed its 

domestic requirements for entry into 

force of this Compact and that the 

conditions precedent to entry into force 

in Section 7.2 have been met. 

Section 7.4 Compact Term 

This Compact shall remain in force 

for five (5) years after its entry into 

force, unless terminated earlier under 

Section 5.1 (the ‘‘Compact Term’’). 

Section 7.5 Provisional Application 

Upon signature of this Compact, and 

until this Compact has entered into 

force in accordance with Section 7.3, 

the Parties shall provisionally apply the 

terms of this Compact; provided that, no 

MCC Funding, other than Compact 

Implementation Funding, shall be made 

available or disbursed before this 

Compact enters into force. 

In Witness Whereof, the undersigned, 

duly authorized by their respective 

governments, have signed this Compact. 

Done at Praia, Cape Verde, this 10th 

day of February, in the English language 

only. 

For the United States of America, 

acting through the Millennium 

Challenge Corporation, Name: Daniel W. 

Yohannes, Title: Chief Executive 

Officer. 

For the Republic of Cape Verde, 

Name: Cristina Duarte, Title: Minister of 

Finance and Planning. 

Annex I Program Description 

This Annex I describes the Program 

that MCC Funding will support in Cape 

Verde during the Compact Term. 

A. Program Overview 

1. Background 

Strategically located at the crossroads 

of mid-Atlantic air and sea lanes, Cape 

Verde continues to exhibit one of 

Africa’s most stable and democratic 

governments. In 2001, Cape Verde 

embarked on a transformation agenda 

aimed at building a self-sustaining high 

growth economy through policy 

reforms, private sector led growth, 

infrastructure development, and 

institutional changes. The Government 

recognizes that in order to alleviate 

poverty it must continue to improve 

performance and accelerate important 

reforms. 

The Government and MCC entered 

into a Millennium Challenge Compact 

in 2005 with the objective of increasing 

agricultural production, improving 

infrastructure, and developing the 

private sector. The Parties successfully 

completed the first compact, 

representing a new form of partnership 

with donors for the country. Based on 

Cape Verde’s continued performance on 

MCC’s eligibility criteria and the 

successful implementation of the first 

compact, the MCC Board selected Cape 

Verde as eligible for a second compact 

in December 2009. 

2. Constraints Analysis and Consultative 

Process 

In January 2010, the Government 

assembled a task force under the 

Ministry of Finance and Planning to 

develop a second compact. The task 

force conducted a constraints analysis 

and through extensive consultation with 

national and local government 

stakeholders, civil society, and private 

sector identified both the water and 

sanitation and land sectors as critical 

constraints to achieving the country’s 

economic transformation agenda. 

3. Program Objective 

The Compact Goal is to reduce 

poverty through economic growth in 

Cape Verde. MCC’s assistance will be 

provided in a manner that strengthens 

good governance, economic freedom, 

and investments in the people of Cape 

Verde. The Program Objectives are to 

reduce the costs upon the economy of 

inefficiently provided public services 

and remove institutional conditions that 

impede private sector investment. The 

Program consists of the Water, 

Sanitation and Hygiene Project and the 

Land Management for Investment 

Project, as further described in this 

Annex I. 

B. Description of Projects 

Set forth below is a description of 

each of the Projects that the Government 

will implement, or cause to be 

implemented, using MCC Funding to 

advance the applicable Project 

Objectives. Specific activities that will 

be undertaken within each Project 

(each, an ‘‘Activity’’), including subactivities, are also described. 

1. Water, Sanitation and Hygiene Project 

(a) Background 

Cape Verde is an extremely waterscarce country and relies heavily on 

desalinization of water, which is an 

expensive and energy-intensive process. 

The water, sanitation and hygiene 

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(‘‘WASH’’) sector in Cape Verde is 

characterized by relatively poor levels of 

service including intermittent water 

supply. Domestic water consumption 

per capita is approximately 35 liters per 

day, half that of a lower-middle income 

peer group of countries, and barely 

above subsistence levels. As a result, 

Cape Verde has one of the highest water 

tariffs in Africa and the world. The 

poor, and particularly female-headed 

households, are especially vulnerable as 

only 9 percent of poor households have 

access to the networked public water 

supply. Additionally, Cape Verde is not 

on track to meet its Millennium 

Development Goal for sanitation. Low 

levels of water supply, combined with 

a population in which over 50 percent 

is without any access to improved 

sanitation services, results in significant 

public health problems, including 

diarrhea, malaria, and dengue. 

The WASH sector is marked by 

dispersed responsibilities across a large 

number of stakeholders, skewed 

incentives, a lack of institutional 

accountability, fragmented and 

overlapping authority, and conflicting 

legislation which impedes good 

planning and efficient operations in the 

sector. The Government has recently 

undertaken a number of important 

preliminary steps to improve the legal 

and regulatory framework. However, 

further significant reform and 

restructuring of the sector are required 

to ensure that the benefits of planned 

infrastructure improvements can be 

achieved. 

(b) Summary of Project and Activities 

The objective of the Water, Sanitation 

and Hygiene Project (the ‘‘WASH 

Project’’) is to install a financially 

sound, transparent and accountable 

institutional basis for the delivery of 

water and sanitation services to Cape 

Verdean households and firms by: 

reforming national policy and regulatory 

institutions; transforming inefficient 

utilities into autonomous corporate 

entities operating on a commercial 

basis; and improving the quality and 

reach of infrastructure in the sector. The 

WASH Project is comprised of three 

Activities as described below. 

(i) National Institutional and Regulatory 

Reform Activity 

The Government is committed to 

undertaking institutional and regulatory 

reform activities at the national level to 

improve planning systems and 

regulatory processes including tariff 

setting (the ‘‘National Institutional and 

Regulatory Reform Activity’’). During 

the Compact Term, the Government will 

create a new National Agency for Water 

and Sanitation (‘‘ANAS’’), which will be 

responsible for policy and planning of 

all water resources, domestic water 

supply, wastewater, and sanitation. 

ANAS will be guided by a National 

Water and Sanitation Council 

(‘‘CNAS’’), where core ministries, 

municipalities, private sector and civil 

society will be represented and will 

ensure that sector policies are aligned 

with overall government policy 

direction. The Government will also 

strengthen the existing Economic 

Regulatory Agency (‘‘ARE’’) to better 

regulate economic and technical aspects 

of the WASH sector, including tariff 

setting. Finally, the General Directorate 

of the Environment (‘‘DGA’’) will 

expand its existing functions on 

environmental protection, to include 

water and wastewater quality. The 

Government will support the 

operational costs for the new and 

strengthened agencies with its own 

resources. 

MCC will support the design and 

operationalization of the proposed 

institutional changes with MCC 

Funding for the following three subactivities: 

(A) Improve allocation of resources, 

planning, and coordination. This subactivity aims to improve the allocation 

of resources mobilized for the sector, 

improve the coordination of sector 

activities and improve sector planning 

with a clear definition of sector 

priorities. During the project 

development process and to facilitate 

implementation of this Compact, MCC 

agreed to support the development of a 

Strategic National Master Plan (‘‘Master 

Plan’’) and strategic environmental and 

social assessment (‘‘SESA’’) for the 

WASH sector. This document will serve 

as the basis for sector planning, resource 

allocation, and investment coordination. 

Under the Compact, MCC Funding 

will support: 

(1) A review of all relevant legislation, 

regulations and organizational 

documents pertaining to the 

establishment and operations of CNAS, 

ANAS and the strengthening of ARE 

and DGA, which will assist the 

Government in drafting new legislation 

and regulations for the WASH sector; 

(2) Technical assistance, capacity 

building and training to enable ANAS, 

CNAS, ARE, and DGA to execute their 

new roles and responsibilities; 

(3) Technical assistance and resources 

for the integration of gender and social 

analysis and objectives into national 

policies, planning, human resources, 

and budgets, including establishment of 

a social and gender unit in ANAS, as 

well as the development of consultative 

processes, public information strategies, 

and opportunities for private sector 

participation; and 

(4) Information, education, and 

communication (‘‘IEC’’) activities 

focused on: (a) Identifying water, 

sanitation, and hygiene practices that 

should inform national master planning 

for the sector; (b) encouraging public 

input on new regulations and planning; 

(c) articulating the role of the public in 

the tariff setting process; and (d) 

creating a culture of paying for services 

among water and sanitation users. 

(B) Support transparent and fair tariff 

setting. This sub-activity will support 

the move to transparent and fair tariff 

setting, to better reflect the cost of 

service, and to improve the financial 

well-being and sustainability of utilities. 

Tariff support will also include 

assistance for the formation of 

appropriate pro-poor tariff policies. 

Specifically, MCC Funding will assess 

the current financial state of utilities 

nationally, and on Santiago particularly, 

with the goal of identifying the true cost 

of the existing systemic sector 

inefficiencies, impacts of these costs 

and inefficiencies on cost of service 

rates, and tariff and regulatory strategies 

for transitioning to a financially selfsustaining system. 

(C) Improve water quality standards 

and environmental oversight. MCC 

Funding will support technical 

assistance to DGA for the development 

of existing functions on environmental 

protection, with an emphasis on potable 

water and wastewater quality, and to 

develop new water quality and 

wastewater discharge standards, 

including appropriate wastewater 

treatment technologies and associated 

standards for wastewater reuse. 

(ii) Utility Reform Activity 

The Utility Reform Activity will 

promote the transition of existing 

service providers to increased financial 

and administrative autonomy and 

operation based on commercial 

principles (the ‘‘Utility Reform 

Activity’’). MCC will focus its assistance 

on the Island of Santiago to support the 

formation of a new, multi-municipal 

utility that covers all or most of the 

island (‘‘Aguas de Santiago’’). The 

Parties expect that this Activity will 

create a blueprint for utilities in other 

parts of the country. 

(A) Encourage corporatization of 

utilities. MCC Funding will support the 

design and establishment of Aguas de 

Santiago, including a legal review and 

the preparation of organizational 

documents, staffing requirements, 

position descriptions, internal policies 

and operating procedures, and a plan for 

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recruiting and transitioning staff to the 

new utility. 

(B) Strengthen management and 

planning of Aguas de Santiago. MCC 

Funding will support: 

(1) A long-term strategic investment 

and business plan, capital improvement, 

and business plans for the water and 

sanitation sector on Santiago pursuant 

to the guidance emerging from the 

Master Plan and SESA. While these 

plans will be long-term and strategic in 

nature, they will assess the condition of 

existing water and sanitation systems 

and identify any immediate 

infrastructure and operational needs. 

The plans will also improve the 

management of water resources by 

ensuring an integrated approach to 

infrastructure planning; 

(2) Technical assistance for water 

sector utility operations and 

management, including technical, 

financial, commercial, legal, 

environmental, investment planning, 

procurement, contract management, and 

social and gender practices; 

(3) The acquisition and 

implementation of, and training on, 

management information systems and 

identified hardware and software, such 

as GIS, asset management, billing and 

customer management systems, and 

office equipment; 

(4) IEC campaigns that include 

outreach by utilities and/or NGOs. The 

objective of the IEC campaigns is to 

improve communication between the 

utility and its customers, with a focus 

on developing an understanding of the 

cost of services and culture of payment 

by users, promoting efficient water use 

and conservation, and other aspects 

necessary to increase impact and 

sustainability of the reforms; and 

(5) Technical and vocational 

education and training (‘‘TVET’’) to the 

staff of Aguas de Santiago to improve 

their ability to carry out their roles and 

responsibilities and to any redundant 

staff to assist their transition to new 

functions and responsibilities in other 

government agencies or in the private 

sector. 

(C) Reduce commercial losses in 

Santiago. Non-revenue water (‘‘NRW’’) 

at existing municipal water and 

sanitation entities (known as ‘‘SAAS’’) 

in Santiago is estimated to be 

approximately 50 percent. MCC 

Funding will support a NRW study for 

service providers on Santiago, SAAS, 

the Water Distribution Agency of Praia 

(‘‘ADA’’), and ELECTRA, the national 

electricity utility with responsibility for 

water provision in certain 

municipalities—in order to provide 

better estimates of the level of losses in 

each service provider, assess the 

reductions likely achievable through 

improved commercial and technical 

management practices, and identify 

potential solutions to improve both 

technical and commercial aspects of 

NRW management. The study will 

provide a detailed strategy, and identify 

specific management actions and 

physical investments, for reducing 

NRW. Support from sub-activity (ii)(B) 

will be provided to improve customer 

billing databases, asset inventories, and 

other business operational elements that 

contribute to high NRW. Subject to prior 

approval by MCC, MCC Funding may be 

used to implement priority investments 

identified in the aforementioned study 

to reduce NRW losses for Aguas de 

Santiago under this sub-activity; these 

may include but are not limited to 

instituting demand management areas 

and meter replacement programs. 

MCC Funding for the Utility Reform 

Activity is subject to the following 

conditions: 

(1) Prior to disbursement of Program 

Funding for the Utility Reform Activity, 

the SAAS shall have committed to the 

transition to an independently operated 

and managed Aguas de Santiago in a 

memorandum of understanding among 

MAHOT and the municipalities or such 

other document acceptable to the 

Government and MCC; and 

(2) Continued support for the subactivities described in paragraphs (ii)(B) 

and (ii)(C) above is conditioned on the 

Government ensuring that Aguas de 

Santiago has sufficient equity 

contributions, or other nonreimbursable funding from its 

shareholders to support its operations 

and working capital needs, in 

accordance with the economic and 

financial viability study undertaken in 

sub-activity (i)(B) above and satisfactory 

to MCC. 

(iii) Infrastructure Grant Facility 

In order to promote continued 

national level reform, incentivize and 

reward utility reform, and improve 

investment planning, the Parties will 

support the establishment of an 

Infrastructure Grant Facility (the ‘‘IGF’’) 

to fund much needed infrastructure and 

capital improvements in the WASH 

sector. 

MCC will make funds available to the 

IGF in three tranches as national policy 

and utility reform conditions have been 

met. The IGF will provide grants on a 

competitive basis to utilities that qualify 

based on continuous improvement on 

commercialization of operations. Grant 

applications from qualified utilities will 

be evaluated based on a set of 

transparent financial, economic, 

technical, operational, environmental, 

and gender and social criteria. 

The IGF will provide grants for three 

categories of projects: Category I— 

studies and technical assistance; 

Category II—existing network 

improvements and off-network 

improvements; and Category III— 

network expansion. The categories 

reflect the level of complexity to 

implement these projects, and utility 

applicants will be required to 

demonstrate incremental progress 

towards corporatization to be eligible for 

funding under Categories II and III. 

Category II and III projects will include 

financial support for IEC and TVET 

activities connected to specific 

infrastructure projects as identified 

during the design phase. The IGF will 

have a pool of funds to assist poor and 

female-headed households to overcome 

barriers to WASH services. 

The eligibility requirements, project 

selection criteria, and operations and 

management procedures of the IGF, will 

be set forth in an operations manual to 

be approved by the Government and 

MCC. The Parties expect that the IGF 

will initially be managed by MCA-Cape 

Verde II with the support of advisory 

services as the Parties deem necessary 

and eventually transferred to ANAS 

when it is deemed to have sufficient 

capacity to administer and manage the 

facility. A technical evaluation panel 

will carry out detailed evaluations, 

provide technical assessments, and 

score proposed projects. An executive 

committee of the MCA-Cape Verde II 

Steering Committee will oversee the IGF 

and approve projects that pass 

established selection criteria and 

technical evaluation. The amount of 

MCC funds allocated for feasibility 

studies under Category I of the IGF will 

not exceed 20 percent, unless otherwise 

agreed by MCC. Each grant will also be 

subject to MCC no objection. 

MCC Funding will also support the 

development of an environmental and 

social management framework for the 

IGF, acceptable to the Government and 

MCC, to define the guiding 

environmental and social principles and 

to create procedures that will be 

included in the operations manual for 

assessing proposals against these 

objectives. 

As set forth more specifically in the 

Program Implementation Agreement, 

MCC Funding for the IGF will be made 

available incrementally subject to the 

achievement of reform milestones. 

(A) Prior to making the first tranche 

of funding available under the IGF: (1) 

the operations manual for the IGF shall 

have been approved by MCA-Cape 

Verde II and MCC; and (2) ANAS shall 

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have been created and CNAS shall have 

adopted the Master Plan; 

(B) Prior to making the second tranche 

of funding available under the IGF, 

Aguas de Santiago shall have been 

created as an independent, corporatized 

entity that is subject to the regulatory 

jurisdiction of ARE and ARE will have 

in place a tariff mechanism that is based 

on cost-of-service by rate class and 

which addresses pro-poor tariffs; and 

(C) Prior to making the third tranche 

of funding available under the IGF, the 

Government shall make an appropriate 

matching contribution to the IGF as per 

the agreed Government contribution 

schedule in the Program 

Implementation Agreement. 

(c) Beneficiaries 

The Parties expect that together the 

National Institutional and Regulatory 

Reform and Utility Reform Activities 

will initially benefit the approximately 

278,000 people living on the Island of 

Santiago, as a result of reductions in the 

average cost of water supply and 

commercial losses by utilities and the 

incremental growth effect of shifting 

government resources from less 

productive to more productive 

spending. As utility reform extends 

throughout the other islands during and 

after the Compact, the entire population 

of Cape Verde should eventually benefit 

from these Activities. 

The benefits of the IGF will depend 

on the returns of proposals presented for 

financing. To be selected, each proposal 

must demonstrate an expected 

economic rate of return of at least 12 

percent. Based on estimates of potential 

projects, the Parties expect that the IGF 

will benefit on average a population of 

48,000 (approximately 11,000 

households), or just over 10 percent of 

the population of Cape Verde. 

(d) Gender and Social Integration 

The Parties agree to integrate gender 

and social factors in the WASH Project 

into each of the core Activities. Gender 

and social analyses and objectives are 

currently largely absent from WASH 

sector policies and planning, despite 

considerable inequalities in access to 

water and sanitation. MCC Funding will 

support technical assistance and 

resources for the integration of gender 

and social analysis and objectives into 

policies, planning, human resources, 

and budgets, at both the national and 

utility levels. 

Given the central role that women and 

girls play in water and sanitation at the 

household level, ensuring that 

infrastructure investments are selected 

and designed with due attention to 

social and gender considerations and 

appropriate IEC are critical to meeting 

the ultimate impact objectives of the 

IGF. Social and gender considerations 

will thus be embedded in the project 

selection criteria for the IGF, and the 

IGF will support IEC activities. Training 

and employment opportunities for 

women in the WASH sector will also be 

promoted through support for TVET 

activities at national, utility, and IGF 

levels. 

(e) Environmental and Social 

Assessment 

The National Institutional and 

Regulatory Reform and the Utility 

Reform Activities have been classified 

as Category C projects in accordance 

with MCC Environmental Guidelines. 

These Activities are unlikely to have 

adverse environmental and social 

impacts. MCC reserves the right, 

however, to require specific 

environmental and social impact studies 

and mitigation measures. As an initial 

step, MCC has provided pre-Compact 

funding for a SESA in conjunction with 

the Master Plan for the Island of 

Santiago. MCC Funding will also 

support capacity building at DGA to 

strengthen Cape Verde’s water quality 

standards and improve environmental 

oversight. 

The IGF has been classified as a 

Category D project since specific 

projects and activities will be funded 

through a facility. Based on the 

potential pipeline of projects, certain 

activities may potentially result in 

adverse environmental and social 

impacts, if appropriate mitigation 

measures are not taken. Operational 

procedures and an environmental and 

social management framework will be 

established to ensure that 

environmental and social risks and 

impacts are appropriately considered 

and managed in accordance with the 

laws and regulations in Cape Verde and 

MCC Environmental Guidelines. 

(f) Sustainability 

The National Institutional and 

Regulatory Reform and Utility Reform 

Activities of the WASH Project are 

specifically targeted at improving the 

sustainability of the sector by 

addressing key constraints in the policy 

and regulatory environment and at the 

operational level. One of the challenges 

to maintaining and sustaining the 

reform process is strong civic 

engagement. To that end, the Activities 

include resources for broad-based 

public consultation and engagement but 

also focus efforts on ensuring that 

women and disadvantaged groups are 

being engaged at the earliest stages of 

planning all the way through 

construction. 

(g) Donor Coordination 

The WASH Project has and will 

continue to benefit from coordination 

among the Parties and other donors. 

Whereas in the past the sector has been 

marked by a lack of integration at the 

Government and donor levels, and 

whereas the Government has made 

recent strides in setting the stage for 

sector reform and donors have 

responded by improving their internal 

coordination and their coordination 

with the Government, the Parties 

acknowledge that in the context of 

limited resources improved government 

management and coordination with its 

partners is necessary to the successful 

implementation of the WASH Project. 

The Parties agree that transparency and 

coordination are essential elements of 

meeting the ambitious reform agenda 

established by the Government. 

2. Land Management for Investment 

Project 

(a) Background 

In Cape Verde, no conclusive source 

of information about land property 

exists. Two different land registries each 

contain partial information about only a 

limited share of the country’s land 

parcels. Additional records systems 

hold information about state-owned 

land. No source contains complete mapbased information indicating actual 

location of a parcel of land over which 

a right is claimed. Confusion over 

ownership and boundaries has resulted 

in unauthorized land sales and the 

delay or cancellation of public as well 

as private investment projects and limits 

the ability of small firms and 

households to create value and increase 

incomes through investment in their 

property. The land rights registration 

process is time-consuming and costly 

for all land users, hampering domestic 

and foreign investment and economic 

growth. The Government seeks to create 

a single reliable and more easily 

accessible source of land rights and land 

boundaries information in order to 

strengthen Cape Verde’s investment 

climate and to reduce land rights 

registration and transaction time and 

cost. 

(b) Summary of Project and Activities 

The objective of the Land 

Management for Investment Project (the 

‘‘Land Project’’) is to reduce the time 

required for establishing secure property 

rights and to establish more conclusive 

land information in areas of near-term 

high development potential in Cape 

Verde by: Refining the legal, 

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institutional and procedural 

environment to create conditions for 

increased reliability of land information, 

greater efficiency in land administration 

transactions, and strengthened 

protection of land rights; developing 

and implementing a new land 

information management system; and 

clarifying parcel rights and boundaries 

on targeted islands with high 

investment potential. 

(i) Legal and Institutional Foundations 

Activity 

The Legal and Institutional 

Foundations Activity (the ‘‘Foundations 

Activity’’) will consist of the two 

principal sub-activities described below. 

(A) Develop legal, institutional, and 

procedural foundations. Under this subactivity, MCC Funding will support: 

(1) Legal and regulatory analysis, 

recommendations, and drafting of 

regulatory texts and procedural manuals 

for improved operations and 

coordination by land administration 

institutions over the long term; 

(2) Design of legal, regulatory and 

procedural tools and manuals enabling 

implementation and achievement of the 

objectives of the Rights and Boundaries 

Activity (described below); and 

(3) Stakeholder workshops and public 

outreach. 

(B) Develop and install land 

information and transaction systems. 

Under this sub-activity MCC Funding 

will support: 

(1) Technical assistance to 

computerize and link existing 

information about land rights and land 

parcels held in the paper-based Ministry 

of Justice registry system and in 

different municipal departments; 

(2) Design of a computerized land 

information system that will be used by 

the Ministry of Justice’s Registry and 

Notary and by municipal governments 

to efficiently manage and access 

information within their area of legal 

competence; 

(3) System programming work 

consistent with the new institutional 

and procedural arrangements and data 

access protocols; and 

(4) Installation of the system, 

acquisition of relevant hardware and 

software for system operations, training 

for users, and public outreach. 

(ii) Rights and Boundaries Activity 

Building on the Foundations Activity, 

the Rights and Boundaries Activity (the 

‘‘Rights and Boundaries Activity’’) will 

support actual clarification of parcel 

rights and boundaries in targeted 

islands with high tourism investment 

potential, including through capacity 

building of key institutions. 

Subject to the satisfaction of the 

conditions set forth below, MCC 

Funding will support: Communications; 

outreach and training, including on 

topics of environmental and social risk 

management and planning and 

geographic information production and 

management; office-based linking of 

rights and boundary information where 

data exists; field-based clarification of 

boundaries through map consultation 

and surveying; field-based clarification 

of rights through consultation of 

existing records and information 

gathering and consultation with current 

occupants; rights adjudication 

recommendations made based on 

regulations and procedures agreed as a 

result of the Foundations Activity; 

public noticing of rights and boundary 

claims and requirements/opportunities 

for submission of or objection to claims; 

dispute resolution assistance; utilization 

of a resettlement policy framework tool 

as needed per International Finance 

Corporation, Performance Standard 5; 

registration of rights that can be 

adjudicated; and inputting of final 

boundary and rights information into 

the land information and transaction 

management system created under the 

Foundations Activity. 

The Rights and Boundaries Activity 

will cover areas of land claimed or held 

as private property, as property of the 

national government, and as property of 

municipal governments. The Activity 

will commence as a pilot on the island 

of Sal and be scaled to up to three other 

target islands subject to satisfaction of 

the conditions below. Should the Parties 

agree that additional funds remain in 

the Rights and Boundaries Activity after 

completion of Sal and commitment of 

sufficient funding (including adequate 

contingencies) for the three additional 

islands, the Parties may allocate any 

remaining funds to implement the 

Activity on other islands, based on 

criteria to be agreed by MCC and MCACape Verde II. 

MCC Funding for fieldwork and 

fieldwork-related training under this 

Activity is subject to the following 

conditions: 

(A) Any new or amended laws or 

regulatory texts (regulations, ordinances 

and directives) determined to be 

necessary under the Foundations 

Activity, shall have been adopted by the 

Parliament or the relevant Government 

ministry and be in full force and effect; 

(B) An operations manual for the 

Rights and Boundaries Activity 

fieldwork satisfactory to MCC, including 

environmental and social safeguards 

and provisions, shall have been 

completed and adopted by the Ministry 

of Justice and the Ministry of 

Environment, Housing and Territorial 

Management through such instrument 

as the Parties agree is required to give 

full force and effect to such manual; and 

(C) Prior to disbursement of MCC 

Funding to implement the Activity on 

additional islands, the Government 

shall have completed the activity on Sal 

island, to a degree satisfactory to MCC, 

and any modifications to the 

implementation approach for remaining 

islands agreed shall have been agreed 

among MCC, the Government and MCACape Verde II. 

(c) Beneficiaries 

Based on estimates of incremental 

employment opportunities, the Parties 

expect that at least 3,000 households 

(approximately 13,000 people) will 

benefit from increased tourism 

development as a consequence of 

project interventions. This number 

excludes the current population on the 

islands who are expected to benefit from 

reduced time and cost of land 

registration and more conclusive rights 

and boundaries information. The 

benefits would be expected to result 

from cost savings, from increased 

investment in property, and from 

increased property values. Additional 

benefits and beneficiaries will be 

monitored during the Compact Term. 

(d) Environmental and Social Mitigation 

Measures 

The Land Project has been classified 

as a Category B project in accordance 

with MCC’s Environmental Guidelines. 

This is based on a number of risks and 

potential impacts, which the Parties 

expect to mitigate through 

environmental and social (including 

gender-based) approaches integrated 

into the Land Project. The Parties will 

integrate several safeguards into the 

Rights and Boundaries Activity in an 

effort to minimize the risk of claimants 

losing rights given the imprecisions, 

gaps, and potential for overlaps in 

existing land rights information. The 

outreach activities will support 

increased public awareness, particularly 

among vulnerable populations, of the 

types of land rights and the procedures 

and resources available for formalizing 

those rights. The procedures developed 

under the Foundations Activity and the 

resettlement policy framework will 

assist stakeholders with dispute 

resolution, with clarifying links between 

planning and zoning requirements and 

rights and responsibilities of rights 

holders, and with adequate analysis, 

planning and decision-making in 

contexts of informal occupation or of 

secondary rights, particularly for 

vulnerable groups. 

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Environmental and social risks related 

to increased economic development 

induced by the Land Project will be 

mitigated by public consultation and 

outreach, and by the development of 

tools for improved land administration 

and for integration of land information. 

This will help relevant institutions 

better manage land use and land rights 

over the long term. The Parties will 

evaluate ways in which existing 

environmental and social data, 

information on legal requirements 

associated with public lands, protected 

areas, critical habitats, and 

encumbrances can be built into land 

information systems to aid municipal 

and tourism planning, including 

integration of social safeguards. 

(e) Sustainability 

Institutional and financial 

sustainability is fundamental to 

achieving the results of the Land 

Project. MCC has provided pre-Compact 

support for detailed analyses of 

financial sustainability drivers, 

projected revenue flows, and workforce 

requirements for the land information 

management and transaction systems. 

The Parties will review the findings and 

recommendations of these studies and 

agree to modify approaches and 

methodologies as appropriate, to assure 

that system design is commensurate 

with the Government’s capacity to use 

and maintain the system over the long 

term. 

The Land Project will assure that 

legal, regulatory, and methodological 

approaches to collecting and 

maintaining boundary and rights 

information over time are consistent 

with principles of cost-effectiveness and 

equitable access to land administration 

services. 

(f) Donor Coordination 

The Land Project builds from recent 

investments in the Government’s land 

sector initiatives by Spain, the Canary 

Islands, and the World Bank. A portion 

of the investment from other donors has 

supported specific land sector studies, 

including one completed by the 

Institute for Liberty and Democracy. 

Additionally, because the Rights and 

Boundaries Activities is a pilot that can 

be scaled up and implemented 

throughout the country, the Government 

is committed to continued donor 

coordination to identify additional 

funding to support rights and boundary 

clarification on other islands. 

C. Implementation Framework 

1. Overview 

The implementation framework and 

the plan for ensuring adequate 

governance, oversight, management, 

monitoring and evaluation, and fiscal 

accountability for the use of MCC 

Funding are summarized below. MCC 

and the Government will enter into a 

Program Implementation Agreement, 

and may enter into such other 

Supplemental Agreements and 

Implementation Letters in furtherance of 

this Compact as the Parties deem 

necessary, all of which, together with 

this Compact, set out the rights, 

responsibilities, duties and other terms 

relating to the implementation of the 

Program. 

2. MCC 

MCC will take all appropriate actions 

to carry out its responsibilities in 

connection with this Compact and the 

Program Implementation Agreement, 

including the exercise of its approval 

rights in connection with the 

implementation of the Program. 

3. MCA-Cape Verde II 

In accordance with Section 3.2(b) of 

this Compact and the Program 

Implementation Agreement, MCA-Cape 

Verde II will act on the Government’s 

behalf to implement the Program and to 

exercise and perform the Government’s 

rights and responsibilities with respect 

to the oversight, management, 

monitoring and evaluation, and 

implementation of the Program, 

including, without limitation, managing 

the implementation of Projects and their 

Activities, allocating resources, and 

managing procurements. The 

Government will ensure that MCA-Cape 

Verde II takes all appropriate actions to 

implement the Program, including the 

exercise and performance of the rights 

and responsibilities designated to it by 

the Government pursuant to this 

Compact and the Program 

Implementation Agreement. Without 

limiting the foregoing, the Government 

will also ensure that MCA-Cape Verde 

II has full decision-making autonomy, 

including, inter alia, the ability, without 

consultation with, or the consent or 

approval of, any other party, to: (i) Enter 

into contracts in its own name; (ii) sue 

and be sued; (iii) establish Permitted 

Accounts in a financial institution in 

the name of MCA-Cape Verde II and 

hold MCC Funding in such accounts; 

(iv) expend MCC Funding; (v) engage a 

fiscal agent who will act on behalf of 

MCA-Cape Verde II on terms acceptable 

to MCC; (vi) engage one or more 

procurement agents who will act on 

behalf of MCA-Cape Verde II, on terms 

acceptable to MCC, to manage the 

acquisition of the goods, works, and 

services required by MCA-Cape Verde II 

to implement the Program; and (vii) 

engage one or more auditors to conduct 

audits of its accounts. The Government 

will take the necessary actions to 

establish, operate, manage and maintain 

MCA-Cape Verde II, in accordance with 

the applicable conditions precedent to 

the disbursement of Compact 

Implementation Funding set forth in 

Annex IV to this Compact. 

The Government will create 

MCA-Cape Verde II as a legally 

established program management unit 

under the Ministry of Finance. MCACape Verde II will be formed through a 

cabinet resolution, which resolution 

will be included in the Program 

Implementation Agreement. MCA-Cape 

Verde II will be created in accordance 

with MCC’s Guidelines for Accountable 

Entities and Implementation Structures, 

published on the MCC Web site (the 

‘‘Governance Guidelines’’), and will be 

in form and substance satisfactory to 

MCC. MCA-Cape Verde II, on behalf of 

the Government, will administer the 

MCC Funding. MCA-Cape Verde II will 

consist of the following bodies: a 

steering committee (the ‘‘Steering 

Committee’’); a management team (the 

‘‘Management Unit’’); and two 

stakeholders committees (each a 

‘‘Stakeholders Committee’’ and, 

collectively, the ‘‘Stakeholders 

Committees’’). As a recipient of MCC 

Funding, MCA-Cape Verde II will be 

subject to MCC audit requirements. 

MCA-Cape Verde II will be based in 

Praia, Cape Verde. 

(a) Steering Committee 

(i) Composition. The Steering 

Committee will have ultimate 

responsibility for the oversight, 

direction, and decisions of MCA-Cape 

Verde II, as well as the overall 

implementation of the Program. The 

Parties expect that the Steering 

Committee will initially be comprised of 

nine voting members consisting of 

representatives of national and 

municipal government, civil society and 

private sector and two non-voting 

observers. Membership to the Steering 

Committee is anticipated to include the 

following voting members: Minister of 

Finance and Planning; Minister of 

Environment, Housing and Land 

Planning; Minister of Justice; Minister of 

Rural Development; Chief Advisor to 

the Prime Minister; President of the 

National Municipalities Association; 

President of the Chamber of Commerce 

Association; President of the Tourism 

Chamber; and President of the 

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Non-Governmental Organization 

Association. The Steering Committee 

will also include the following nonvoting observers: a representative of the 

Ministry of External Affairs; and the 

MCC Resident Country Director. The 

Steering Committee will be chaired by 

the Minister of Finance and Planning. 

(ii) Roles and Responsibilities. The 

Steering Committee will be responsible 

for the oversight, direction, and 

decisions of MCA-Cape Verde II, as well 

as the overall implementation of the 

Program. The Steering Committee will 

hold regular meetings in accordance 

with the Governance Guidelines, at a 

minimum once per quarter. The specific 

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

MCA-Cape Verde II Regulations. On at 

least an annual basis or as otherwise 

required by the Government, the 

Steering Committee will report to the 

Government on the status and progress 

of the Compact regarding 

implementation, financial matters, 

procurements, and other matters 

identified by the Government. 

(b) Management Unit 

(i) Composition. The Management 

Unit will be led by a competitively 

selected Managing Director and is 

expected to be initially comprised of the 

following full-time officers: Managing 

Director; Administration and Finance 

Director; Economist/Monitoring and 

Evaluation Manager; Water and 

Sanitation Project Manager; Land 

Project Manager; Gender & Social 

Manager; Environment Manager; Policy 

Reform and Institutional Development 

Manager; and Procurement Manager. 

These key officers will be supported by 

appropriate additional staff to enable 

the Management Unit to execute its 

roles and responsibilities. Such 

additional staff is expected to include: 

Procurement Specialist; Administrative 

and Financial Specialist; and 

Communication Specialist, among 

others. 

(ii) Roles and Responsibilities. With 

oversight from the Steering Committee, 

the Management Unit will have the 

principal responsibility for the day-today management of the Program, 

including those roles and 

responsibilities specifically set forth in 

the Program Implementation 

Agreement. The Management Unit will 

serve as the principal link between MCC 

and the Government, and will be 

accountable for the successful execution 

of the Program, each Project, and each 

Activity. 

(c) Stakeholders Committees 

(i) Composition. Program beneficiaries 

will be represented by two project-level 

Stakeholder Committees composed of 

representatives from relevant ministries, 

municipalities, private sector and 

non-governmental organizations as 

agreed by the Government and MCC. 

The two Stakeholders Committees will 

provide input to the Steering Committee 

and the Management Unit on matters 

that relate to the Program, promoting 

transparency and ongoing consultation. 

(ii) Roles and Responsibilities. 

Consistent with the Governance 

Guidelines, the Stakeholders 

Committees will be responsible for 

continuing the consultative process 

throughout implementation of the 

Program. While the Stakeholders 

Committees will not have any decisionmaking authority, they will be 

responsible for, inter alia, reviewing, at 

the request of the Steering Committee or 

the Management Unit, certain reports, 

agreements, and documents related to 

the implementation of the Program in 

order to provide input to MCA-Cape 

Verde II regarding the implementation 

of the Program. 

4. Environmental and Social Safeguards 

All of the Projects will be 

implemented in compliance with the 

MCC Environmental Guidelines, the 

MCC Gender Policy, the MCC Gender 

Integration Guidelines, and the 

International Finance Corporation’s 

Performance Standards. Any 

involuntary resettlement will be carried 

out in accordance with the IFC 

Performance Standard 5 on Land 

Acquisition and Involuntary 

Resettlement in a manner acceptable to 

MCC. In the case of retrenchments and 

redundancies resulting from the 

implementation of the Projects, the 

Government will ensure that the 

Projects comply with national labor 

laws and best practices for managing 

retrenchment according to the IFC Good 

Practice Note: Managing Retrenchment. 

The Government also will ensure that 

the Projects comply with all national 

environmental laws and regulations, 

licenses and permits, except to the 

extent such compliance would be 

inconsistent with this Compact. 

Specifically, the Government will: 

cooperate with or complete, as the case 

may be, any ongoing environmental and 

social impact assessments, or if 

necessary undertake and complete any 

additional environmental and social 

assessments, environment and social 

management frameworks, 

environmental and social management 

plans, environmental and social audits, 

resettlement policy frameworks, and 

resettlement action plans required 

under the laws of Cape Verde, the MCC 

Environmental Guidelines, the MCC 

Gender Integration Guidelines, this 

Compact, the Program Implementation 

Agreement, or any other Supplemental 

Agreement, or as otherwise required by 

MCC, each in form and substance 

satisfactory to MCC; ensure that Projectspecific environmental and social 

management plans are developed and 

all relevant measures contained in such 

plans are integrated into project design, 

the applicable procurement documents 

and associated finalized contracts, in 

each case in form and substance 

satisfactory to MCC; and implement to 

MCC’s satisfaction appropriate 

environmental and social mitigation 

measures identified in such assessments 

or plans or developed to address 

environmental and social issues 

identified during implementation. 

Unless MCC agrees otherwise in writing, 

the Government will fund all necessary 

costs of environmental and social 

mitigation measures (including, without 

limitation, costs of resettlement) not 

specifically provided for, or that exceed 

the MCC Funding specifically allocated 

for such costs, in the Detailed Financial 

Plan for any Project. 

To maximize the positive social 

impacts of the Projects, address crosscutting social and gender issues such as 

human trafficking, child and forced 

labor, and HIV/AIDS, and to ensure 

compliance with the MCC Gender 

Policy and MCC Gender Integration 

Guidelines, MCA-Cape Verde II, on 

behalf of the Government, will develop 

a comprehensive social and gender 

integration plan which, at a minimum, 

incorporates the findings of a 

comprehensive gender analysis, 

identifies approaches for regular, 

meaningful and inclusive consultations 

with women and other vulnerable/ 

underrepresented groups, consolidates 

the findings and recommendations of 

Project-specific social and gender 

analyses and sets forth strategies for 

incorporating findings of the social and 

gender analyses into final Project 

designs, as appropriate (‘‘Social and 

Gender Integration Plan’’); and ensure, 

through monitoring and coordination 

during implementation, that final 

Activity designs, construction tender 

documents, other bidding documents, 

implementation plans, and M&E plans 

are consistent with and incorporate the 

outcomes of the social and gender 

analyses and Social and Gender 

Integration Plan. 

5. Implementing Entities 

Subject to the terms and conditions of 

this Compact, the Program 

Implementation Agreement, and any 

other related agreement entered into in 

connection with this Compact, the 

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Federal Register / Vol. 77, No. 34 / Tuesday, February 21, 2012 / Notices 9989 

Government, through MCA-Cape Verde 

II, may engage one or more entities of 

the Government to implement or assist 

in the implementation of any Project or 

Activity (or a component thereof) in 

furtherance of this Compact (each, an 

‘‘Implementing Entity’’). The 

appointment of any Implementing 

Entity will be subject to review and 

approval by MCC. The Government will 

ensure that the roles and responsibilities 

of each Implementing Entity and other 

appropriate terms are set forth in an 

agreement, in form and substance 

satisfactory to MCC (each an 

‘‘Implementing Entity Agreement’’). 

6. Fiscal Agent 

The Ministry of Finance and Planning 

will be responsible for assisting MCACape Verde II with fiscal management 

and ensuring appropriate fiscal 

accountability of MCC Funding (in such 

capacity, the ‘‘Fiscal Agent’’). The 

duties of the Fiscal Agent will include 

those set forth in the Program 

Implementation Agreement and in such 

agreements or documents as MCA-Cape 

Verde II enters into with the Fiscal 

Agent, which agreement shall be in form 

and substance satisfactory to MCC. If the 

Fiscal Agent is not able to perform its 

duties in compliance with MCC 

standards, MCC may require that MCACape Verde II engage a new fiscal agent 

to carry out those duties. 

7. Procurement 

The Parties expect that a dedicated 

unit within MCA-Cape Verde II will 

conduct and certify specified 

procurement activities in furtherance of 

this Compact with appropriate staffing 

and technical assistance support 

acceptable to MCC (in such capacity, the 

‘‘Procurement Agent’’). Once the unit is 

staffed, and prior to entry into force of 

the Compact, MCC will assess capability 

and performance of the MCA-Cape 

Verde II procurement unit and 

determine whether staffing is adequate 

and to what extent, if any, external 

advisory support is needed. If MCC 

determines that the MCA-Cape Verde II 

procurement unit is not able to perform 

its duties in compliance with MCC 

standards and guidelines, MCC may 

require that MCA-Cape Verde II engage 

additional external advisory support or 

an external procurement agent to carry 

out those duties. The roles and 

responsibilities of the Procurement 

Agent will be set forth in the Program 

Implementation Agreement and in such 

other agreements as MCA-Cape Verde II 

enters into with each Procurement 

Agent, which agreement will be in form 

and substance satisfactory to MCC. Each 

Procurement Agent will adhere to the 

procurement standards set forth in the 

MCC Program Procurement Guidelines 

and ensure that procurements are 

consistent with the procurement plan 

adopted by MCA-Cape Verde II 

pursuant to the Program 

Implementation Agreement, unless MCC 

otherwise agrees in writing. 

Annex II Multi-Year Financial Plan 

Summary 

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

1. General 

A multi-year financial plan summary 

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

is attached hereto as Exhibit A to this 

Annex II. By such time as specified in 

the PIA, the Government will adopt, 

subject to MCC approval, a multi-year 

financial plan that includes, in addition 

to the 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. 

2. Government LMIC Contribution 

During the Compact Term, the 

Government will make contributions of 

at least US$9,934,500 (equal to 15 

percent of the amount of MCC Funding 

committed under this Compact), to carry 

out the Government’s responsibilities 

under Section 2.6(a) of this Compact. 

These contributions may include inkind and financial contributions toward 

meeting the Program and Project 

Objectives. In connection with this 

obligation, the Government has 

developed a budget of the contributions 

it anticipates making over the five year 

term of the Compact. Such contributions 

will be in addition to the Government’s 

spending allocated toward the Program 

and Project Objectives in its budget for 

the year immediately preceding the 

establishment of this Compact. The 

Government’s contribution will be 

subject to any legal requirements in 

Cape Verde for the budgeting and 

appropriation of such contribution, 

including approval of the Government’s 

annual budget by its legislature. The 

Parties shall set forth in the Program 

Implementation Agreement or other 

appropriate Supplemental Agreements 

certain requirements regarding this 

Government contribution, which 

requirements may be conditions 

precedent to the Disbursement of MCC 

Funding. 

EXHIBIT A—MULTI-YEAR FINANCIAL PLAN SUMMARY

(US$ millions) 

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

1. Water, Sanitation and Hygiene Project: 

National Institutional and Regulatory Reform Activity.

Utility Reform Activity.

Infrastructure Grant Facility.

Sub-Total ........................................................................................... 2.25 4.55 9.80 13.35 9.80 1.35 41.10 

2. Land Management for Investment Project: 

Foundations Activity.

Rights and Boundaries Activity.

Sub-Total ........................................................................................... 1.16 2.70 3.69 2.57 4.56 2.58 17.26 

3. Monitoring and Evaluation (M&E) 

Sub-Total ........................................................................................... 0.09 0.22 0.31 0.26 0.30 0.21 1.39 

4. Program Administration 

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EXHIBIT A—MULTI-YEAR FINANCIAL PLAN SUMMARY—Continued 

(US$ millions) 

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

Sub-Total .................................................................................................. 0.50 1.06 1.12 1.12 1.18 1.50 6.48 

Grand Total ........................................................................................ 4.00 8.53 14.92 17.30 15.84 5.64 66.23 

Annex III Description of Monitoring 

and Evaluation Plan 

This Annex III generally describes the 

components of the Monitoring and 

Evaluation Plan (‘‘M&E Plan’’) for the 

Program. The actual content and form of 

the M&E Plan will be agreed to by MCC 

and the Government in accordance with 

MCC’s Policy for Monitoring and 

Evaluation of Compacts and Threshold 

Programs as posted from time to time on 

the MCC Web site (the ‘‘MCC Policy for 

Monitoring and Evaluation of Compacts 

and Threshold Programs’’). The M&E 

Plan may be modified as outlined in 

MCC’s Policy for Monitoring and 

Evaluation of Compacts and Threshold 

Programs with MCC approval without 

requiring an amendment to this Annex 

III. 

1. Overview 

MCC and the Government will 

formulate and agree to, and the 

Government will implement or cause to 

be implemented, an M&E Plan that 

specifies: (a) How progress toward the 

Compact Goal, Program Objectives and 

Project Objectives will be monitored 

(‘‘Monitoring Component’’); (b) a 

process and timeline for the monitoring 

of planned, ongoing, or completed 

Activities to determine their efficiency 

and effectiveness; and (c) a methodology 

for assessment and rigorous evaluation 

of the outcomes and impact of the 

Program (‘‘Evaluation Component’’). 

Information regarding the Program’s 

performance, including the M&E Plan, 

and any amendments or modifications 

thereto, as well as progress and other 

reports, will be made publicly available 

on the Web site of MCC, MCA-Cape 

Verde II and elsewhere. 

2. Program Logic 

The M&E Plan will follow a rationale 

that describes how proposed Activities 

are expected to contribute to the 

achievement of the Project Objectives, 

Program Objectives and Compact Goal. 

The Compact Goal is to reduce 

poverty through economic growth in 

Cape Verde. The Program Objectives are 

to reduce the costs upon the economy 

of inefficiently provided public services 

and to remove institutional conditions 

that impede private sector investment. 

The Project Objective of the Water, 

Sanitation and Hygiene Project is to 

establish a financially sound, 

transparent and accountable 

institutional basis for the delivery of 

water and sanitation services to Cape 

Verdean households and firms. The 

outcomes of the Project Activities are: 

(a) Institutions and procedures required 

for the regulation of corporatized 

utilities providing water and sanitation 

services and operating according to 

commercial principles; (b) the 

establishment and operation of 

commercially oriented water utilities; 

(c) improved cost-effectiveness of 

services; and (d) improved extent, 

quality and reliability of services 

provided. The Project Objective of the 

Land Management for Investment 

Project is to reduce the time required for 

establishing secure property rights and 

to establish more conclusive land 

information in areas of near-term high 

development potential in Cape Verde. 

The outcomes of the Project Activities 

are: (a) A reduction in the average time 

required to establish a clear property 

right and to complete other land-related 

transactions; (b) an increase in the 

reliability of land rights and boundaries 

information; and (c) an increase in the 

level of development activity on 

targeted islands, resulting in higher 

levels of employment, in response to 

reductions in lead time to investment. 

The combined results of the Program are 

expected to contribute to Cape Verde’s 

own poverty-reduction and economic 

growth goals as defined in the Cape 

Verde development strategy. 

3. Monitoring Component 

To monitor progress toward the 

achievement of the impact and 

outcomes of the Compact, the 

Monitoring Component of the M&E Plan 

will identify: (i) The Indicators (as 

defined below), (ii) the definitions of the 

Indicators, (iii) the sources and methods 

for data collection, (iv) the frequency for 

data collection, (v) the party or parties 

responsible for collecting and analyzing 

relevant data, and (vi) the timeline for 

reporting on each Indicator to MCC. 

Further, the Monitoring Component 

will track changes in the selected 

Indicators for measuring progress 

towards the achievement of the Program 

Objectives and Project Objectives during 

the Compact Term. MCC also intends to 

continue monitoring and evaluating the 

long-term impacts of the Compact after 

Compact expiration. The M&E Plan will 

establish baselines which measure the 

situation prior to a development 

intervention, against which progress can 

be assessed or comparisons made (each 

a, ‘‘Baseline’’). The Government will 

collect Baselines on the selected 

Indicators or verify already collected 

Baselines where applicable and as set 

forth in the M&E Plan. Gender 

disaggregated data and indicators will 

be developed for the full version of the 

M&E Plan. 

(a) Compact Indicators. The M&E Plan 

will measure the results of the Program 

using quantitative, objective and reliable 

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

have benchmarks that specify the 

expected value and the expected time 

by which that result will be achieved 

(‘‘Target’’). All Indicators will be 

disaggregated by gender, income level 

and age, and beneficiary types to the 

extent practical and applicable. Subject 

to prior written approval from MCC, the 

Government or MCA-Cape Verde II may 

add Indicators or refine the definitions 

and Targets of existing Indicators. 

(b) Program Goal Indicator. The M&E 

Plan will contain an indicator related to 

the Compact Goal that seeks to measure 

the long-term sustainable performance 

of the Water, Sanitation and Hygiene 

Project and Land Management for 

Investment Project institutions. 

(c) Other Indicators. Indicators are 

used to measure progress toward the 

expected results throughout the 

implementation period. Different types 

of indicators are needed at different 

points in time and to trace the Program 

logic. The M&E Plan will contain the 

indicators listed in Annex III as well as 

other indicators, including ‘‘common 

indicators,’’ necessary for MCC 

management oversight and 

communicating progress towards the 

achievement of compact results. 

Common Indicators are used by MCC to 

measure progress across Compacts 

within certain sectors and enable MCC 

to aggregate results across countries for 

reporting externally to key stakeholders. 

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Common indicators may be specified at 

all indicator levels (process milestone, 

output, outcome, objective, and goal). 

The M&E Plan indicators should be 

kept to the minimum necessary for 

Program oversight, Project management 

and for measuring and communicating 

progress toward expected results for 

planned activities. MCA-Cape Verde II 

may monitor additional indicators at the 

Activity level for their own management 

and communication purposes but these 

need not be included in the M&E Plan 

nor reported to MCC, unless requested 

by an MCC sector lead. MCA-Cape 

Verde II will compile and update 

baselines, pending MCC written 

approval, for key indicators as new data 

becomes available. 

Table 1: Water, Sanitation and Hygiene 

Project 

The following are Indicators and 

Targets for the monitoring of the Water, 

Sanitation and Hygiene Project. 

Common indicators will be revised from 

their Annex III abbreviated form to 

conform to the MCC Common Indicator 

Guidance in the M&E Plan. 

Disaggregation by urban/rural, gender of 

head of household and other relevant 

categories will be identified in the M&E 

Plan. 

TABLE 1—WATER, SANITATION AND HYGIENE PROJECT

Result Indicator Definition Unit Baseline Year 5 target 

Objective Level Indicators 

Reduced household cost of 

water needs.

Unit cost of all 

water consumed 

by Santiago 

households.

Total cost to consumer should include 

tariffs paid, connection costs (direct 

and otherwise), commercial purchases, value of time collecting 

water and household coping costs 

(direct and otherwise) due to reliability concerns. Information will be 

disaggregated, to the extent possible, by gender head of household 

and income quartiles.

US$/m3 ................. TBD ...................... TBD 1

Reduced subsidies 

to WASH sector.

Value of implicit 

subsidy reduction.

TBD .................................................... US$ ...................... TBD ...................... TBD 2

Reduced cost of 

network water 

delivery.

Average recovery 

price of water 

for corporatized 

utilities.

Cost of operation + 24 hour supply 

factor + maintenance investment 

(c.f., IB–NET definitions and toolkits).

US$/m3 ................. TBD 3 .................... Greater than 15% 

reduction per 

year within two 

years of 

corporatization4

Increased population served by 

corporatized utilities.

Service coverage 

by corporatized 

utilities.

Percentage of national population 

served by regulated, corporatized 

utilities.

Percentage ........... TBD5 .................... 506

Activity 1. National Institutional and Regulatory Reform 

Outcome Level Indicators 

.

Constraints to 

corporatized 

water utilities reduced.

Satisfactory 

progress against 

MCC approved 

work plan on 

legal and regulatory reforms.

Evaluation by an independent assessment mechanism.7TBD ...................... TBD ...................... TBD 

Core functionalities 

of institutions in 

place.

Indicators of core 

competencies of 

ANAS and ARE.

TBD prior to entry into force in conjunction with independent assessment mechanism.8TBD ...................... TBD ...................... TBD 

Activity 2. Utility Reform 

Outcome Level Indicators 

Sustainable performance of 

Aguas de 

Santiago.

Operating cost 

coverage.

Total annual operating revenues divided by total annual operating 

costs.

Percentage ........... TBD ...................... TBD 9

Improved reliability 

and quality of 

network water 

delivery.

Client satisfaction 

with supply reliability; i.e., continuity of service.

Total number of water and waste 

water complaints per year expressed as a percentage of the 

total number of water and waste 

water connections disaggregated 

by income quartile.

Percentage ........... TBD10 ................... TBD 

Objective measure 

of supply reliability; i.e., continuity of service.

Average hours of service per day for 

water and wastewater supply on 

Santiago..

Hours per day ...... TBD ...................... TBD 11

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TABLE 1—WATER, SANITATION AND HYGIENE PROJECT—Continued 

Result Indicator Definition Unit Baseline Year 5 target 

Client satisfaction 

with water quality.

Total number of potable water complaints per year expressed as a 

percentage of the total number of 

potable water connections 

disaggregated by income quartile..

Percentage ........... TBD12 ................... TBD 

Objective measure 

of water quality.

Fecal coliform counts (and/or residual 

C12) at the water treatment works 

and points of use (IB–NET).

Number 100ml 

(and/or mg/l).

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

Operational efficiency of Aguas 

de Santiago 

strengthened.

Non-revenue water 

of Aguas de 

Santiago.

Difference between water supplied 

and water sold (i.e. volume of 

water ‘‘lost’’) expressed as a percentage of net water supplied.

Percentage ........... 50%13 ................... 40–50% reduction 

over baseline 

Annual budgets 

and independent 

annual audits of 

participating 

Santiago municipal water utilities published.

Published and audited statements by 

Aguas de Santiago.

Number ................ 0 ........................... TBD 

Increased access 

to improved 

drinking water 

source.

Proportion of population using an 

improved drinking water source.

Proportion of Santiago population 

(households) using an improved 

drinking water source. M&E Plan 

will include disaggregation by income quartile and gender of head 

of household..

Percentage ........... 8614 ...................... TBD 15

Increased access 

to improved 

sanitation.

Proportion of population using an 

improved sanitation facility.

Proportion of Santiago population 

(households) using an improved 

sanitation facility disaggregated by 

on and off network connections. 

M&E Plan will include 

disaggregation by income quartile 

and gender of head of household.16

Percentage ........... 41 (on-network) ....

19 (off-network) ....

TBD 17

Total water consumption.Residential water 

consumption.

Average water consumption in liters 

per person per day for Santiago 

households, disaggregated by income quartile. The M&E Plan will 

include additional disaggregation 

based on the gender of head of 

household.18

Liters per capita 

per day.

17.1 (quartile 1) ....

31.7 (quartile 2) ....

33.0 (quartile 3) ....

TBD 19

62.7 (quartile 4).

Activity 3. Infrastructure Grant Facility 

Outcome Level Indicators 

Demonstrated performance as defined under IGF 

operations manual.

TBD for individual 

investments at 

signing of grant 

agreements.

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

1Targets will be established based on assumptions of decreasing costs for populations served by regulated, corporatized utilities. Baselines 

and the manner of calculation will be established in collaboration with an independent impact evaluation firm, and will use a combination of statistically representative surveys. 2 Indicator and definition to be determined based on further analysis of best available data sources. 

3Baseline and targets will be established based on inputs from an economic viability study to be financed by the Compact, as well as through 

the support of technical assistance consultants. 4Baseline will be established, and targets verified, based on inputs from the economic viability study. 

5Electra is the only company regulated by ARE, and currently operates in Praia, Sao Vicente, Boa Vista and Sal. The baseline data will be 

sourced from the 2010 Census or ARE databases, and shall be included in the M&E Plan. 6Target is based on Santiago population as a percent of national population. 

7Assessment mechanism and strategy to monitor and evaluate the quality of reform will be outlined in the M&E Plan, and shall be fully developed by year 1 of Compact implementation. The assessment mechanisms will include a plan detailing reform milestones based on Compact conditions precedent, IGF set-up criteria, and the results of studies performed prior to entry into force, including national legal reform and new institutional environment for WASH sector studies. 8 Core competency indicators will be determined through a national institutional environment study to be financed by the Compact prior to entry 

into force. It is expected that the core competencies arising from this design study shall be codified in the appropriate legislative reforms. 9Baseline and target will be included in the M&E Plan. Targets will be established using data generated from the economic viability study. 

10 Results from the 2010 Water and Sanitation Survey collected by the National Statistical Institute (INE) show that 36 percent of head of 

household respondents are either ‘‘very dissatisfied’’ (11 percent) or ‘‘dissatisfied’’ (25 percent) with the reliability of piped public water in 

Santiago, whereas 46 percent of respondents indicate that they are either ‘‘satisfied’’ (41 percent) or ‘‘very satisfied’’ (5 percent) with the reliability of piped public water in Santiago. M&E Plan will provide income disaggregation for this indicator. 

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11 Non-revenue water study and Santiago infrastructure needs and master plan study, to be financed by the Compact prior to entry into force, 

will aid in establishing baseline(s), annual targets and end-of-Compact targets as necessary. Targets for increased supply reliability will be based 

on estimated reductions of technical losses as opposed to increases in water production. 12 Results from the 2010 Water and Sanitation Survey collected by INE show that 38 percent of head of household respondents are either 

‘‘very dissatisfied’’ (18 percent) or ‘‘dissatisfied’’ (20 percent) with the potability of piped public water in Santiago, whereas 49 percent of respondents indicated that they are either ‘‘satisfied’’ (44 percent) or ‘‘very satisfied’’ (5 percent) with the potability of piped public water in Santiago. M&E 

Plan will provide income disaggregation of data for this indicator. 13 Non-revenue water study financed prior to entry into force will update baseline figure. 14 Improved sanitation and improved water sources classifications are based on the Joint Monitoring Program for Water Supply and Sanitation 

by the World Health Organization and UNICEF. Baseline data is sourced from the 2010 Water and Sanitation Survey conducted by the National 

Statistical Institute (INE) financed through 609(g) resources. Improved water source includes ‘‘household connected to the network [public water 

network, different from the sewer network] using a flush to piped sewer system, flush to septic system, borehole or flush or pour over to somewhere else.’’ 15Water consumption survey will be used to establish baseline for the M&E Plan. 16 Improved sanitation and improved water sources classifications are based on the Joint Monitoring Program for Water Supply and Sanitation 

by the World Health Organization and UNICEF. Baseline is derived from the 2010 Water and Sanitation Survey conducted by the National Statistical Institute (INE). Improved water source includes ‘‘household connected to the network [public water network, different from the sewer network] using a flush to piped sewer system, flush to septic system, borehole or flush or pour over to somewhere else.’’ 17Target to be determined based on assumptions of ERR model and information collected through immediate needs assessment study and 

Santiago master plan to be conducted prior to entry into force. 18Baseline derived from the 2010 Water and Sanitation Survey collected by INE. Quartile 1 refers to the lowest income group; quartile 4 refers 

to the highest income group. 19Targets for increased household water consumption will be based on estimated reductions of technical losses as opposed to increases in 

water production. 

Table 2: Land Management for 

Investment Project 

The following table describes the key 

Indicators and Targets for the 

monitoring the Land Management for 

Investment Project and its relevant 

components, as further described in 

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

TABLE 2—LAND MANAGEMENT FOR INVESTMENT PROJECT

Result Indicator Definition Unit Baseline Year 5 target 

Objective Level Indicators 

Increased investments.Increased tourism 

related development in islands 

with high investment potential.

‘‘Level step increase’’ above trend in 

total bed capacity and total bednights developed on St. Vicente, 

Sal and Boa Vista.20

Percentage ........... 2011–2015 trend: 

current projections estimate a 

capacity of 

approx. 16,200 

beds, 3.8 million 

bed-nights in 

201621

Greater than 5% 

level increase 

above baseline 

trends for both 

bed capacity 

and bed-nights 

Outcome Level Indicators 

Increase the efficiency and costeffectiveness of 

land rights registration and 

transactions.

Time elapsed for 

property transactions.

Elapsed time from initiation to completion of a formal property transaction, disaggregated by island.Days ..................... 73 22 ..................... 90% reduction 

over baseline.23

Cost for property 

transactions.

Costs to conduct a formal property 

transaction disaggregated by island.

US$ ...................... TBD ...................... TBD 24

More conclusive 

rights and 

boundary information in islands 

of high investment potential.

Parcels incorporated into the 

land information 

system.

Parcels incorporated are those with 

boundaries identified and conclusive rights confirmed or newly registered, disaggregated by island.

Number ................ 0 ........................... TBD 25

Land rights registered.Parcels with a land rights newly registered at the Ministry of Justice 

disaggregated by island.

Number ................ 0 ........................... TBD 26

20 Manner of calculation will be specified in the M&E Plan, in collaboration with an independent impact evaluation firm. 21 Data and targets are linked to the economic analysis and economic rate of return analysis for the project. 22Source for baseline is World Bank Doing Business Survey, 2011. The baseline will be updated with more detailed information on time for 

property transactions compiled through project preparatory studies. 23Targets reflect linkages to the economic rate of return analysis. This analysis assumes the target will be achieved by end of Compact year 

3. 24Targets will be established in the M&E Plan, and will reflect linkages to the Compact economic analysis. 25Targets shall be established following the completion of the preparatory geo-referencing activities. Information will be sourced from administrative records of the Registo Predial. 26Targets shall be established following the completion of the preparatory geo-referencing activities. Information will be sourced from administrative records of the Registo Predial. 

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(d) Data Collection and Reporting. 

The M&E Plan will establish guidelines 

for data collection and reporting, and 

identify the responsible parties. For the 

Water, Sanitation and Hygiene Project, 

studies that include baseline data 

financed by the Compact may include: 

municipal non-revenue water studies, a 

willingness to pay and barriers to 

service studies, financial and tariffsetting studies, and multiple municipal 

utility economic viability studies 

conducted in all nine municipalities on 

the island of Santiago, in collaboration 

with municipal water utility authorities. 

The M&E Plan budget will fund 

additional household surveys and 

qualitative studies as necessary. For the 

Land Management for Investment 

Project, data may be collected through 

baseline studies financed by the 

Compact, tourism receipts, labor 

statistics, qualitative studies, and 

information about parcel boundaries 

and rights refined during the project and 

held in the databases of the Ministry of 

Justice and municipal governments. 

Data collection will support monitoring 

of plausible additional benefits that may 

result from project outcomes. 

Compliance with data collection and 

reporting timelines will be conditions 

for Disbursements for the relevant 

Activities as set forth in the Program 

Implementation Agreement. The M&E 

Plan will specify the data collection 

methodologies, procedures, and analysis 

required for reporting on results at all 

levels. The M&E Plan will describe any 

interim MCC approvals for data 

collection, analysis, and reporting plans. 

(e) Data Quality Reviews. As 

determined in the M&E Plan or as 

otherwise requested by MCC, the quality 

of the data gathered through the M&E 

Plan will be periodically reviewed to 

ensure that data reported are valid, 

reliable, timely, precise and of good 

integrity. The objective of any data 

quality review will be to verify the 

quality and the consistency of 

performance data across different 

implementation units and reporting 

institutions. Such data quality reviews 

also will serve to identify where those 

levels of quality are not possible, given 

the realities of data collection. Impact 

evaluation consultants will provide 

additional quality assurance oversight. 

(f) Management Information System. 

The M&E Plan will describe the 

information system that will be used to 

collect data, store, process and deliver 

information to relevant stakeholders in 

such a way that the Program 

information collected and verified 

pursuant to the M&E Plan is at all times 

accessible and useful to those who wish 

to use it. The system development will 

take into consideration the requirement 

and data needs of the components of the 

Program, and will be aligned with 

existing MCC systems, other service 

providers, and ministries. 

(g) Role of MCA-Cape Verde. The 

monitoring and evaluation of this 

Compact spans two discrete Projects 

and multiple Activities and subActivities, and will involve a variety of 

governmental, nongovernmental, and 

private sector institutions. In 

accordance with the designation 

contemplated by Section 3.2(b) of this 

Compact, MCA-Cape Verde II is 

responsible for implementation of the 

M&E Plan. MCA-Cape Verde II will 

oversee all Compact-related monitoring 

and evaluation activities conducted for 

each of the Activities, ensuring that data 

from all implementing entities are 

consistent, accurately reported and 

aggregated into regular performance 

reports as described in the M&E Plan. 

4. Evaluation Component 

The Evaluation Component of the 

M&E Plan may contain up to three types 

of evaluations: impact evaluations; 

project performance evaluations; and 

special studies. Impact and performance 

evaluations share a common objective of 

assessing the likely program effects on 

key program outcomes; special studies 

can be conducted to answer any other 

questions that inform either program 

implementation, or the design or 

interpretation of the program 

evaluations. All of these evaluations 

will generally employ both qualitative 

and quantitative survey methods to 

improve our understanding of studyrelevant questions. MCC also expects to 

continue monitoring and evaluating the 

long-term impacts of strategically 

selected components of MCC Compacts 

even after Compact expiration. If 

warranted, components of this Compact 

may be selected for these special postCompact evaluations. As needed, MCA 

and MCC will evaluate the relevance of 

other areas of research regarding costs 

and benefits, and determine, given 

budgetary constraints, how best to 

allocate time and other resources to 

pursue them. 

The Evaluation Component of the 

M&E Plan will describe the purpose of 

the evaluation, methodology, timeline, 

required MCC approvals, and the 

process for collection and analysis of 

data for each evaluation. The results of 

all evaluations will be made publicly 

available in accordance with MCC’s 

Policy for Monitoring and Evaluation of 

Compacts and Threshold Programs. 

(a) Impact/Performance Evaluation. 

The M&E Plan will include a 

description of the methods to be used to 

evaluate the impacts of project activities 

and investments on economic outcomes. 

Where needed, these will include plans 

for integrating the evaluation method 

into Project design. Consultations with 

stakeholders will help clarify the 

strategies outlined below, and will help 

to jointly determine which approaches 

have the strongest potential for 

informative and rigorous impact 

evaluations. The M&E Plan will further 

outline in detail these methodologies. 

Final impact evaluation strategies are to 

be included in the M&E Plan. All 

evaluation strategies will incorporate 

procedures for integrating gender and 

social concerns into its analysis. The 

following is a summary of the potential 

impact evaluation methodologies. 

(i) Water, Sanitation and Hygiene 

Project. The evaluation will focus on 

three main themes: independent 

reviews and, as warranted, independent 

specification and estimation of relevant 

project ERRs; examining the broad 

institutional benefits of the changes in 

national policies and utility 

organization and management; and 

assessing household-level impacts of 

program investments and activities. At 

the household level, the evaluations 

will focus on the following program 

impacts on household and individual 

outcomes: household expenditures on 

water purchases and coping 

mechanisms; imputed value of 

individual time devoted to water 

gathering and coping; and other 

household and individual costs 

attributable to the changing water and 

sanitation environment. 

Institutional level impacts such as 

reduced operating costs or losses, and 

increased commercial efficiency may be 

evaluated using a before-after 

comparison of utility performance. The 

consistency of this indicator should be 

assessed using any historical and 

current high-frequency indicators, 

including water supplies, revenue 

collections, operating costs, etc. 

Estimates of household and individual 

costs and benefits should determine 

patterns across social, economic and 

demographic groups, including gender 

analysis. 

(ii) Land Management for Investment 

Project. The evaluation will focus on 

independent review and, if warranted, 

re-specification and estimation of 

project ERRs to account for significant 

changes in value-added to the economy 

that might not be adequately 

approximated in the ex ante project 

analysis. Evaluation of benefits should 

focus on anticipated economic impacts 

of tourism-related sector investments 

plausibly attributable to the reduced 

time and other costs of securing land 

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rights and to more conclusive rights and 

boundaries information. If project 

improvements also broadly reduce the 

costs of securing land rights and 

increase the reliability of land 

information with effects across other 

sectors and regions, other plausible 

economic benefits attributable to these 

outcomes will also be explored. 

Estimates of such benefits should 

consider compelling evidence of clearly 

distinguished patterns across sectors, or 

across social, economic and 

demographic groups, including gender 

analysis. 

(b) Special Studies. The M&E Plan 

will include a description of the 

methods to be used for special studies, 

as necessary, funded through this 

Compact or by MCC. Plans for 

conducting the special studies will be 

determined jointly between the 

Government or MCA-Cape Verde II and 

MCC before the approval of the M&E 

Plan. The M&E Plan will identify and 

make provision for any other special 

studies, ad hoc evaluations, and 

research that may be needed as part of 

the monitoring and evaluating of this 

Compact. Either MCC, MCA-Cape Verde 

II or the Government may request 

special studies or ad hoc evaluations of 

Activities, or the Project as a whole, 

prior to the expiration of the Compact 

Term. When the Government engages an 

evaluator, the engagement will be 

subject to the prior written approval of 

MCC. Contract terms must ensure nonbiased results and the publication of 

results. 

(c) Request for Ad Hoc Evaluation or 

Special Studies. If MCA-Cape Verde II 

or the Government require an ad hoc 

independent evaluation or special study 

at the request of the Government for any 

reason, including for the purpose of 

contesting an MCC determination with 

respect to a Project or Activity or to seek 

funding from other donors, no MCC 

funding resources may be applied to 

such evaluation or special study 

without MCC’s prior written approval. 

5. Other Components of the M&E Plan 

In addition to the monitoring and 

evaluation components, the M&E Plan 

will include the following components 

for the Program, Project and Activities, 

including, where appropriate, roles and 

responsibilities of the relevant parties 

and providers: 

(a) Costs. A detailed cost estimate for 

all components of the M&E Plan; and 

(b) Assumptions and Risks. Any 

assumption or risk external to the 

Program that underlies the 

accomplishment of the Program 

Objective, Project Objective and Activity 

outcomes and outputs. 

6. Approval and Implementation of the 

M&E Plan 

The approval and implementation of 

the M&E Plan, as amended from time to 

time, will be in accordance with the 

Program Implementation Agreement, 

any other relevant Supplemental 

Agreement and the MCC Policy for 

Monitoring and Evaluation of Compacts 

and Threshold Programs. 

Annex IV Conditions Precedent to 

Disbursement of Compact 

Implementation Funding 

This Annex IV sets forth the 

conditions precedent applicable to 

Disbursements of Compact 

Implementation Funding (each a ‘‘CIF 

Disbursement’’). Capitalized terms used 

in this Annex IV and not defined in this 

Compact will have the respective 

meanings assigned thereto in the 

Program Implementation Agreement. 

Upon execution of the Program 

Implementation Agreement, each CIF 

Disbursement will be subject to the 

terms of the Program Implementation 

Agreement. 

1. Conditions Precedent to Initial CIF 

Disbursement 

Each of the following must have 

occurred or been satisfied prior to the 

Initial CIF Disbursement: 

(a) The Government (or MCA-Cape 

Verde II) has delivered to MCC: 

(i) An interim fiscal accountability 

plan acceptable to MCC; and 

(ii) A CIF procurement plan 

acceptable to MCC. 

2. Conditions Precedent to Each CIF 

Disbursement 

Each of the following must have 

occurred or been satisfied prior to each 

CIF Disbursement: 

(a) The Government (or MCA-Cape 

Verde II) has delivered to MCC the 

following documents, in form and 

substance satisfactory to MCC: 

(i) A completed Disbursement 

Request, together with the applicable 

Periodic Reports, for the applicable 

Disbursement Period, all in accordance 

with the Reporting Guidelines; 

(ii) A certificate of the Government (or 

MCA-Cape Verde II), dated as of the 

date of the CIF Disbursement Request, 

in such form as provided by MCC; and 

(iii) If this Compact has entered into 

force in accordance with Article 7, (A) 

a Fiscal Agent Disbursement Certificate 

and (B) a Procurement Agent 

Disbursement Certificate; 

(b) If any proceeds of the CIF 

Disbursement are to be deposited in a 

bank account, MCC has received 

satisfactory evidence that (i) the Bank 

Agreement has been executed and (ii) 

the Permitted Accounts have been 

established; 

(c) Appointment of an entity or 

individual to provide fiscal agent 

services, as approved by MCC, until 

such time as the Government 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 

copy of the Procurement Agent 

Agreement, duly executed and in full 

force and effect, and the procurement 

agent engaged thereby is mobilized; and 

(e) MCC is satisfied, in its sole 

discretion, that: 

(i) The activities being funded with 

such CIF Disbursement are necessary, 

advisable or otherwise consistent with 

the goal of facilitating the 

implementation of the 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, MCACape Verde II or any Government entity 

has occurred and is continuing under 

this Compact or any Supplemental 

Agreement; 

(iii) There has been no violation of, 

and the use of requested funds for the 

purposes requested will not violate, the 

limitations on use or treatment of MCC 

Funding set forth in Section 2.7 of this 

Compact or in any applicable law or 

regulation; 

(iv) Any Taxes paid with MCC 

Funding through the date ninety (90) 

days prior to the start of the applicable 

Disbursement Period have been 

reimbursed by the Government in full in 

accordance with Section 2.8(c) of this 

Compact; and 

(v) The Government has satisfied all 

of its payment obligations, including 

any insurance, indemnification, tax 

payments or other obligations, and 

contributed all resources required from 

it, under this Compact and any 

Supplemental Agreement. 

3. For Any CIF Disbursement Occurring 

After This Compact Has Entered Into 

Force in Accordance With Article 7 

MCC is satisfied, in its sole discretion, 

that: 

(a) MCC has received copies of any 

reports due from any technical 

consultants (including environmental 

auditors engaged by MCA-Cape Verde 

II) for any Activity since the previous 

Disbursement Request, and all such 

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9996 Federal Register / Vol. 77, No. 34 / Tuesday, February 21, 2012 / Notices 

reports are in form and substance 

satisfactory to MCC; 

(b) 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 of the 

Implementation Plan for the Projects or 

any relevant Activities related to such 

CIF Disbursement; 

(c) There has been progress 

satisfactory to MCC on the M&E Plan 

and Social and Gender Integration Plan 

for the Program or Project or relevant 

Activity and substantial compliance 

with the requirements of the M&E Plan 

and Social and Gender Integration Plan 

(including the targets set forth therein 

and any applicable reporting 

requirements set forth therein for the 

relevant Disbursement Period); 

(d) There has been no material 

weakness or significant deficiency 

identified in any financial audit report 

delivered in accordance with this 

Compact and the Audit Plan, for the 

prior audit period which is not being 

sufficiently addressed in a corrective 

action plan satisfactory to MCC; 

(e) 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; 

(f) If any of the officers or key staff of 

MCA-Cape Verde II have been removed 

or resigned and the position remains 

vacant, MCA-Cape Verde II actively 

engaged in recruiting a replacement; 

and 

(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, the 

Compact or MCC Funding in accordance 

with Section 5.1 of this Compact. 

Annex V Definitions 

Act has the meaning provided in Section 

2.2(a). 

Activity has the meaning provided in Part 

B of Annex I. 

ADA has the meaning provided in 

paragraph 1(b)(ii)(C) of Part B of Annex I. 

Additional Representative has the meaning 

provided in Section 4.2. 

Aguas de Santiago has the meaning 

provided in paragraph 1(b)(ii) of Part B of 

Annex I. 

ANAS has the meaning provided in 

paragraph 1(b)(i) of Part B of Annex I. 

ARE has the meaning provided in 

paragraph 1(b)(i) of Part B of Annex I. 

Audit Guidelines has the meaning 

provided in Section 3.8(a). 

Baseline has the meaning provided in 

paragraph 3 of Annex III. 

Cape Verde means the Republic of Cape 

Verde. 

CIF Disbursement has the meaning 

provided in Annex IV. 

CNAS has the meaning provided in 

paragraph 1(b)(i) of Part B of Annex I. 

Compact has the meaning provided in the 

Preamble. 

Compact Goal has the meaning provided in 

Section 1.1. 

Compact Implementation Funding has the 

meaning provided in Section 2.2(a). 

Compact Records has the meaning 

provided in Section 3.7(a). 

Compact Term has the meaning provided 

in Section 7.4. 

Covered Provider has the meaning 

provided in Section 3.7(c). 

DGA has the meaning provided in 

paragraph 1(b)(i) of Part B of Annex I. 

Disbursement has the meaning provided in 

Section 2.4. 

Evaluation Component has the meaning 

provided in paragraph 1 of Annex III. 

Excess CIF Amount has the meaning 

provided in Section 2.2(c). 

Fiscal Agent has the meaning provided in 

paragraph 6 of Part C of Annex I. 

Foundations Activity has the meaning 

provided in paragraph 2(b)(i) of Part B of 

Annex I. 

Governance Guidelines means MCC’s 

Guidelines for Accountable Entities and 

Implementation Structures, as such may be 

posted on MCC’s Web site from time to time. 

Government has the meaning provided in 

the Preamble. 

Grant has the meaning provided in Section 

3.6(b). 

IEC has the meaning provided in paragraph 

1(b)(i)(A)(4) of Part B of Annex I. 

IGF has the meaning provided in paragraph 

1(b)(iii) of Part B of Annex I. 

Implementation Letter has the meaning 

provided in Section 3.5. 

Implementing Entity has the meaning 

provided in paragraph 5 of Part C of Annex 

I. 

Implementing Entity Agreement has the 

meaning provided in paragraph 5 of Part C 

of Annex I. 

Indicators has the meaning provided in 

paragraph 3(a) of Annex III. 

Inspector General has the meaning 

provided in Section 3.7(d). 

Intellectual Property means all registered 

and unregistered trademarks, service marks, 

logos, names, trade names and all other 

trademark rights; all registered and 

unregistered copyrights; all patents, 

inventions, shop rights, know how, trade 

secrets, designs, drawings, art work, plans, 

prints, manuals, computer files, computer 

software, hard copy files, catalogues, 

specifications, and other proprietary 

technology and similar information; and all 

registrations for, and applications for 

registration of, any of the foregoing, that are 

financed, in whole or in part, using MCC 

Funding. 

Land Project has the meaning provided in 

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

M&E Annex has the meaning provided in 

Annex III. 

M&E Plan has the meaning provided in 

Annex III. 

Management Unit has the meaning 

provided in paragraph 3 of Part C of Annex 

I. 

Master Plan has the meaning provided in 

paragraph 1(b)(i)(A) of Part B of Annex I. 

MCA–Cape Verde II has the meaning 

provided in Section 3.2(b). 

MCC has the meaning provided in the 

Preamble. 

MCC Environmental Guidelines has the 

meaning provided in Section 2.7(c). 

MCC Funding has the meaning provided in 

Section 2.3. 

MCC Gender Policy means the MCC 

Gender Policy (including any guidance 

documents issued in connection with the 

guidelines) posted from time to time on the 

MCC Web site or otherwise made available to 

the Government. 

MCC Policy for Monitoring and Evaluation 

of Compacts and Threshold Programs has the 

meaning provided in Annex III. 

MCC Program Procurement Guidelines has 

the meaning provided in Section 3.6(a). 

MCC Web site has the meaning provided in 

Section 2.7. 

Monitoring Component has the meaning 

provided in paragraph 1 of Annex III. 

Multi-Year Financial Plan Summary has 

the meaning provided in paragraph 1 of 

Annex II. 

National Institutional and Regulatory 

Reform Activity has the meaning provided in 

paragraph 1(b)(i) of Part B of Annex I. 

NRW has the meaning provided in 

paragraph 1(b)(ii)(C) of Part B of Annex I. 

Party and Parties have the meaning 

provided in the Preamble. 

Permitted Account has the meaning 

provided in Section 2.4. 

Principal Representative has the meaning 

provided in Section 4.2. 

Procurement Agent has the meaning 

provided in paragraph 7 of Part C of Annex 

I. 

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. 

Program Funding has the meaning 

provided in Section 2.1. 

Program Guidelines means collectively the 

Audit Guidelines, the MCC Environmental 

Guidelines, the MCC Gender Policy, the 

Governance Guidelines, the MCC Program 

Procurement Guidelines, the Reporting 

Guidelines, the MCC Policy for Monitoring 

and Evaluation of Compacts and Threshold 

Programs, the MCC Cost Principles for 

Government Affiliates Involved in Compact 

Implementation (including any successor to 

any of the foregoing) and any other 

guidelines, policies or guidance papers 

relating to the administration of MCC-funded 

compact programs and as from time to time 

published on the MCC Web site. 

Program Implementation Agreement and 

PIA have the meaning provided in Section 

3.1. 

Program Objectives 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. 

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Provider has the meaning provided in 

Section 3.7(c). 

Reporting Guidelines means the MCC 

‘‘Guidance on Quarterly MCA Disbursement 

Request and Reporting Package’’ posted by 

MCC on the MCC Web site or otherwise 

publicly made available. 

Rights and Boundaries Activity has the 

meaning provided in paragraph 2(b)(ii) of 

Part B of Annex I. 

SAAS has the meaning provided in 

paragraph 1(b)(ii)(C) of Part B of Annex I. 

SESA has the meaning provided in 

paragraph 1(b)(i)(A) of Part B of Annex I. 

Social and Gender Integration Plan has the 

meaning provided in paragraph 3 of Part A 

of Annex I. 

Steering Committee has the meaning 

provided in paragraph 3 of Part C of Annex 

I. 

Stakeholders Committee(s) has the 

meaning provided in paragraph 3 of Part C 

of Annex I. 

Supplemental Agreement means any 

agreement between (a) the Government (or 

any Government affiliate, including MCA– 

Cape Verde II) and MCC (including, but not 

limited to, the PIA) or (b) MCC and/or the 

Government (or any Government affiliate, 

including MCA–Cape Verde II), on the one 

hand, and any third party, on the other hand, 

including any of the Providers, in each case, 

setting forth the details of any funding, 

implementing or other arrangements in 

furtherance of this Compact. 

Target has the meaning provided in 

paragraph 3(a) of Annex III. 

Taxes has the meaning provided in Section 

2.8(a). 

TVET has the meaning provided in 

paragraph 1(b)(ii)(B)(5) of Part B of Annex I. 

United States Dollars or US$ means the 

lawful currency of the United States of 

America. 

Utility Reform Activity has the meaning 

provided in paragraph 1(b)(ii) of Part B of 

Annex I. 

WASH has the meaning provided in 

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

WASH Project has the meaning provided in 

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

[FR Doc. 2012–3832 Filed 2–17–12; 8:45 am] 

BILLING CODE P 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

[Notice (12–016)] 

NASA Advisory Council; Meeting 

AGENCY: National Aeronautics and 

Space Administration. 

ACTION: Notice of meeting. 

SUMMARY: In accordance with the 

Federal Advisory Committee Act, Public 

Law 92–463, as amended, the National 

Aeronautics and Space Administration 

announces a meeting of the NASA 

Advisory Council (NAC). 

DATES: Thursday, March 8, 2012, 8 

a.m.–5 p.m., local time and Friday, 

March 9, 2012, 8 a.m.–12 p.m., local 

time. 

ADDRESSES: NASA Headquarters, 300 E 

Street SW., Room 9H40, (PRC), 

Washington, DC 20456. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Marla King, NAC Administrative 

Officer, National Aeronautics and Space 

Administration Headquarters, 

Washington, DC 20546, 202/358–1148. 

SUPPLEMENTARY INFORMATION: The 

agenda for the meeting will include the 

following: 

—NASA FY 2013 Budget Request. 

—National Research Council Study on 

NASA Space Technology Roadmaps. 

—Aeronautics Committee Report. 

—Audit, Finance and Analysis 

Committee Report. 

—Commercial Space Committee Report. 

—Education and Public Outreach 

Committee Report. 

—Human Exploration and Operations 

Committee Report. 

—Information Technology Infrastructure 

Committee Report. 

—Science Committee Report. 

—Technology and Innovation 

Committee Report. 

The meeting will be open to the 

public up to the seating capacity of the 

room. This meeting is also available 

telephonically and by WebEx. You must 

use a touch tone phone to participate in 

this meeting. Any interested person may 

dial the toll free access number, 1–866– 

753–1451 or toll access number 1–203– 

875–1553 and then the numeric 

participant passcode: 6957984 followed 

by the # sign. To join via WebEx, the 

link is https://nasa.webex.com, meeting 

number 394 377 706, and password 

NACMARCH8&9 (Note: Password is 

case sensitive.). 

It is imperative that the meeting be 

held on this date to accommodate the 

scheduling priorities of the key 

participants. Visitors will need to show 

a valid picture identification such as a 

driver’s license to enter the NASA 

Headquarters building (West Lobby— 

Visitor Control Center), and must state 

that they are attending the NASA 

Advisory Council meeting in room 9H40 

before receiving an access badge. 

Foreign nationals attending this meeting 

will be required to provide a copy of 

their passport, visa, or green card in 

addition to providing the following 

information no less than 10 working 

days prior to the meeting: full name; 

gender; date/place of birth; citizenship; 

visa/green card information (number, 

type, expiration date); passport 

information (number, country, 

telephone); employer/affiliation 

information (name of institution, 

address, country, telephone); title/ 

position of attendee. To expedite 

admittance, attendees with U.S. 

citizenship can provide identifying 

information three working days in 

advance by contacting Ms. Marla King, 

via email at marla.k.king@nasa.gov or 

by telephone at (202) 358–1148. 

Patricia D. Rausch, 

Advisory Committee Management Officer, 

National Aeronautics and Space 

Administration. 

[FR Doc. 2012–3898 Filed 2–17–12; 8:45 am] 

BILLING CODE P 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

[Notice (12- 017)] 

NASA Advisory Council; Audit, 

Finance and Analysis Committee; 

Meeting 

AGENCY: National Aeronautics and 

Space Administration. 

ACTION: Notice of meeting. 

SUMMARY: In accordance with the 

Federal Advisory Committee Act, Public 

Law 92–463, as amended, the National 

Aeronautics and Space Administration 

announces a meeting of the Audit, 

Finance and Analysis Committee of the 

NASA Advisory Council. 

DATES: Wednesday, March 7, 2012, 9 

a.m.—10:45 a.m., local time. 

ADDRESSES: NASA Headquarters. 300 E 

Street SW., Conference Room 8D48, 

Washington, DC 20546. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Charlene Williams, Office of the Chief 

Financial Officer, National Aeronautics 

and Space Administration 

Headquarters, Washington, DC 20546. 

Phone: 202–358–2183. 

SUPPLEMENTARY INFORMATION: The 

agenda for the meeting includes a 

briefing on: 

• Administrative Savings. 

The meeting will be open to the 

public up to the seating capacity of the 

room. It is imperative that the meeting 

be held on this date to accommodate the 

scheduling priorities of the key 

participants. 

Visitors will need to show a valid 

picture identification such as a driver’s 

license to enter the NASA Headquarters 

building (West Lobby—Visitor Control 

Center), and must state that they are 

attending the Audit, Finance, and 

Analysis Committee meeting in room 

8R40 before receiving an access badge. 

Foreign nationals attending this meeting 

will be required to provide a copy of 

their passport, visa, or green card in 

addition to providing the following 

mstockstill on DSK4VPTVN1PROD with NOTICES