46720 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 

MILLENNIUM CHALLENGE 

CORPORATION 

[MCC FR 08–09] 

Notice of Entering Into a Compact With 

the Republic of Namibia 

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 Namibia. Representatives of 

the United States Government and the 

Republic of Namibia executed the 

Compact documents on July 28, 2008. 

Dated: August 4, 2008. 

Henry Pitney, 

Deputy General Counsel, Millennium 

Challenge Corporation. 

Summary of Millennium Challenge 

Compact With the Republic of Namibia 

1. Introduction 

Namibia is a young democracy having 

gained independence from South Africa 

in 1990. The country’s population of 2.0 

million is spread over 823,680 km, an 

area approximately twice the size, but 

with a population density one sixtieth, 

of California. According to the 2001 

census, 67 percent of the population 

lives in rural areas, primarily in the 

northern communal area (‘‘NCA’’), with 

12 percent living in the capital, 

Windhoek. The landscape is largely 

desert and desert savannah with low, 

highly variable rainfall. The economy 

continues to be dependent on the 

mining industry; with diamonds and 

other minerals accounting for more than 

50 percent of total exports in 2005. 

One of the primary constraints to 

achieving poverty reduction through 

economic growth in Namibia is an 

inadequately educated and skilled 

workforce. In addition, the economy’s 

export base is narrowly focused on 

mineral commodities, with belowpotential levels of revenue and 

employment generated in sectors of 

importance to the poor, such as 

livestock and tourism. While improving 

the quality of education and training for 

underserved populations, the Compact 

will also focus on diversifying 

Namibia’s export base by capitalizing on 

Namibia’s comparative advantages— 

large areas of semi-arid land suitable for 

livestock grazing, natural products 

indigenous to Namibia, and diverse 

wildlife and unique landscapes ideal for 

ecotourism. Through these investments, 

it is expected that incomes will rise for 

poor, rural communities that have been 

marginalized from the formal economy 

by former colonial and apartheid 

regimes. 

Namibia is classified as a lowermiddle income country (‘‘LMIC’’) with 

a population of 2.1 million, 2006 per 

capita of $3,000, and a steady economic 

growth rate averaging 4.3 percent per 

annum. Despite steady growth, Namibia 

is plagued by high levels of poverty, 

particularly in the northern communal 

areas (‘‘NCAs’’), high unemployment (30 

percent in 2006), an extreme disparity 

in wealth and income between the rich 

and the poor (second highest Gini 

coefficient in the world), and an HIV 

prevalence rate of nearly 19.6 percent in 

2005. Following 25 years of struggle for 

independence, the government of 

Namibia (the ‘‘GRN ’’) is committed to 

providing equal opportunities to 

previously disadvantaged populations, 

while advancing interracial 

reconciliation to maintain political and 

economic stability. 

2. Program Rationale 

To sustain GDP growth and increase 

income levels, Namibia must rely 

heavily on the availability of skilled 

labor. Despite high levels of investment 

in the education sector, the education 

system is unable to produce the 

quantity, levels, and types of human 

resources necessary to meet labor 

market demands. In 2005, the GRN, 

with the support of the World Bank, 

launched an ambitious 15-year reform 

process, the Education and Training 

Sector Improvement Program 

(‘‘ETSIP ’’), to improve education 

outcomes. The Compact’s education 

project supports ETSIP through strategic 

investments that leverage policy and 

institutional reform to maximize the 

efficiency, accessibility, and quality of 

the education system. 

As a result of the volatility of the 

mining sector, the GRN is focusing on 

diversifying Namibia’s economy with 

particular emphasis on two of the fastest 

growing sectors—agriculture and 

tourism. Agriculture contributes 11 

percent of GDP and earns over 25 

percent of export receipts. The livestock 

sector comprises 90 percent of all 

agriculture production in the country. 

Approximately 80 percent of livestock 

production is exported to the European 

Union and neighboring southern 

African countries. Due to increasing 

population pressures, a lack of flexible 

and efficient market outlets and the 

communal land regime in the north, 

livestock productivity in the north is 

low. In addition to livestock, there is 

significant growth potential for the 

indigenous natural products (‘‘INP’’) 

industry in Namibia. The INP industry 

is expected to grow substantially over 

the next ten years, allowing for some of 

the poorest households in Namibia to 

participate in this emerging industry. 

Overall, MCC’s investments in 

agriculture are intended to increase 

rural farmers’ productivity and income 

generated in the livestock and INP 

sectors, while opening up trade 

opportunities for meat and exports of 

high-value natural products such as 

devil’s claw, Kalahari melon seed, 

marula, and ximenia. 

Consistent with the GRNs National 

Development Plan and long-term 

national development strategy known as 

‘‘Vision 2030,’’ Namibia plans to 

develop one of its fastest growing 

‘‘export’’ industries with a focus on 

tourism. Export earnings from 

international visitors and tourism goods 

are expected to generate 15.6 percent of 

total exports ($650.6 million) in 2008 

and grow to 22.6 percent ($2.09 billion) 

by 2018. The GRN recognizes that 

tourism is an important generator of 

employment, particularly in rural areas 

where most tourism in the country 

occurs. Through MCC’s investments in 

tourism, the GRN intends to catalyze 

growth in the tourism industry and 

increase participation by Namibia’s poor 

rural population. To achieve these 

objectives, the tourism project will 

improve management and infrastructure 

in Etosha National Park , the premier 

tourism destination in Namibia, 

increase the overall number of tourism 

arrivals, and induce private investment 

in communal conservancies. 

3. Program Overview and Budget 


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Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 46721 

TABLE 1—PROGRAM BUDGET BY PROJECT

Component 

(US$ millions) 

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

Education Project ......... 8.97 10.30 29.99 53.32 34.62 7.75 144.97 

Tourism Project ............ 2.47 4.71 13.03 23.36 14.79 8.57 66.95 

Agriculture Project ........ 1.36 1.56 17.95 14.46 8.43 3.17 46.96 

Monitoring & Evaluation 0.72 1.77 1.02 1.02 1.00 1.02 6.57 

Program Management 

and Administration .... 6.00 6.60 6.60 6.60 6.60 6.60 39.00 

Total MCC Funding 19.54 24.95 68.61 98.78 65.44 27.13 304.47 

* Compact Implementation Funds (CIF) refer to funding available before the entry-into-force of the Compact. 

A. Education Project ($144.97 Million) 

The education project is intended to 

improve the education sector’s 

effectiveness, efficiency, and quality, 

through systemic reforms and critical 

near-term interventions. MCC funding 

will support key gaps within ETSIP, as 

well as complementary measures, such 

as institutional strengthening, policy 

reform, and targeted technical 

assistance, to ensure sustainable results. 

Primary activities include: 

• Improving the Quality of Education: 

Improving infrastructure and providing 

equipment in approximately 47 primary 

and secondary school campuses, 

primarily in the northern communities 

of Namibia. Additionally, this activity 

includes support to teacher training 

colleges for policy-relevant studies and 

improving science and computer 

training facilities. 

• Vocational and Skills Training: 

Improving vocational and skills training 

through assisting with the establishment 

of a National Training Fund within the 

Namibia Training Authority and making 

operational a sustainable training levy 

system. This includes funding priority 

projects, including tourism training 

(through competitive grants), 

construction and renovation of 

approximately nine Community Skills 

Development Centers (‘‘COSDECs’’), and 

facilitating private partnerships to 

address market demands for 

employment. 

• Access to and Management of 

Textbooks: Upgrading access to and 

management of textbooks through 

operational support and reforms to 

establish more transparent, competitive 

acquisition processes for new textbooks, 

and to ensure adequate distribution and 

management procedures. This includes 

funding the acquisition of science, 

math, and English textbooks for grades 

5 to 12 on a national level. 

• Regional Study and Resource 

Centers (‘‘RSRCs’’ or ‘‘Libraries’’): 

Construction of approximately three 

regional Libraries in underserved areas 

that will improve access to 

documentation, information resources, 

training materials and programs, and 

study facilities. 

• Expanding and Improving Access to 

Tertiary Education Finance: Expanding 

access to tertiary finance through 

assisting the Ministry of Education in its 

efforts to establish a sustainable and 

widely accessible tertiary and technical 

education finance system. 

• Cross-Project Support: 

Strengthening the Ministry of 

Education’s HIV/AIDS Management 

Unit and developing HIV/AIDS 

awareness and prevention plans related 

to construction activities. 

B. Tourism Project ($66.95 Million) 

The tourism project will improve the 

management and infrastructure of 

Etosha National Park, enhance the 

marketing of Namibian tourism, and 

develop the capacity of communal 

conservancies to attract investments in 

ecotourism and capture a greater share 

of the revenue generated by tourism in 

Namibia. Together, these activities will 

generate income and create employment 

opportunities for some of the poorest 

populations in Namibia, while 

preserving the natural resources that 

serve as the base for the tourism 

industry. 

Primary activities include: 

• Improved Management and 

Infrastructure of Etosha National Park: 

Improving the management capacity, 

providing improved infrastructure in 

management centers and staff housing 

in strategic locations, and providing 

road building/maintenance and game 

translocation equipment. 

• Marketing Namibian Tourism: 

Increasing tourist arrivals to Namibia by 

ramping up marketing to North 

American tourists, developing and 

marketing local and regional tourism 

route packages (with the explicit aim of 

directing tourists to conservancies), and 

developing a fully interactive Web site. 

• Ecotourism Development in 

Conservancies: Building the capacity of 

conservancies to attract investment, 

preserve their natural resources and 

receive a greater share of revenues, 

through the provision of a range of 

technical assistance to approximately 31 

high-tourism potential conservancies 

designed to render them financially selfsustainable. In addition, grant funding 

will be provided, based on individual 

conservancy needs and demand, to 

some of these conservancies to attract 

tourism enterprises. 

C. Agriculture Project ($46.96 Million) 

The agriculture project aims to 

increase the economic performance of 

the agricultural sector by strengthening 

the land tenure system, introducing 

community-based rangeland 

management practices, and building 

capacity of the livestock system to 

support farmers’ ability to increase 

productivity and profits from livestock 

sales. In addition, the project will 

increase the volume, quality, and added 

value of INPs for export to regional and 

international markets. 

Primary activities include: 

• Land Access and Management: 

Improving the communal land regime 

and introducing effective communitybased rangeland management practices 

through a comprehensive public 

awareness and outreach campaign on 

land rights, capacity building for 

Communal Land Boards, a systematic 

verification and registration process to 

regularize land, and training in 

community-based management of 

rangeland resources. 

• Livestock Support: Constructing 

approximately five new veterinary 

centers in key, high volume livestock 

areas, in under-served communities. 

This includes introducing a traceability 

system for the livestock supply chain 

that meets food safety requirements and 

assists in herd management at the farm 

level, as well as support for reducing 

costs and losses, post-farm gate, in the 

marketing system of livestock in the 

NCAs. 


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• Indigenous Natural Products: 

Assisting primary producer 

organizations to increase the volume, 

quality, and added value of the natural 

products they collect and harvest, in 

addition to advancing their operational 

and business capacity. This includes 

funding research, testing, and 

application of innovations and services 

critical to the INP industry’s immediate, 

short- and long-term competitiveness. 

4. Program Impact 

A. Education Project 

The lack of education and training of 

the Namibian population has been 

identified in MCC’s internal growth 

diagnostic, by the World Bank, and 

others as a binding constraint to growth 

and poverty reduction. As a result, welldesigned investments that enhance the 

efficiency and effectiveness of the 

education and training sector are 

expected to have a high economic rate 

of return. 

Expected results of the education 

project include: 

• Over a million students across 

Namibia will benefit from improved 

provision of textbooks and higher 

quality of education. 

• An estimated 11,000 additional 

students will receive financing for 

tertiary education. By alleviating the 

high-level skills constraint in the 

Namibian economy, greater private 

investment and employment will likely 

result from an expansion of the tertiary 

sector. In addition, a more sustainable 

fiscal framework for tertiary education 

will shift the distribution of benefits of 

public education towards the poor. 

• Up to 49,000 uneducated and 

unemployed (poor or near-poor) 

individuals over 20 years will receive 

training at the Community Skills and 

Development Centers. 

• An estimated 2,000 additional 

vocational training graduates over a 20 

year period will receive higher income 

due to improved training opportunities 

through the National Training Fund. 

• Over the course of 20 years, 47 

schools targeted for renovation and 

expansion will produce approximately 

41,700 graduates in primarily rural 

northern communities. These graduates 

will benefit from a higher quality of 

education and higher lifetime income. 

• Regional study and resource centers 

will meet the information and study 

needs of an estimated 8,000 individuals 

a year (about ten percent of the 

population of the towns where the 

centers are located), including upper 

primary, secondary and post-secondary 

students enrolled in distance learning, 

young people seeking skills upgrading, 

small business owners using computer 

facilities, and adults attending 

continuing education courses. 

B. Tourism Project 

Over the past 10 years, Namibia’s 

tourism sector has enjoyed strong 

growth of 6.9 percent per annum 

(source: World Travel and Tourism 

Council 2007). However, stronger or 

more sustained tourism growth could be 

achieved through an enhanced 

marketing effort and improved wildlife 

and natural resource management, 

which would improve the tourism 

experience in Namibia’s national 

protected areas. 

Expected results of the tourism 

project include: 

• An estimated 4,000 additional 

tourists per year as a result of marketing 

activities, and incremental added value 

by overseas tourists of approximately $7 

million. Based on a recent study of the 

benefits of the national protected areas, 

the benefits will be shared in 

proportions similar to the wider tourism 

economy, in which approximately 24 

percent of the benefits will accrue to the 

poor or near-poor. 

• Investments in Etosha National Park 

will lead to increased tourism visits and 

added value to the Namibian economy, 

as well as increased income and receipts 

at Etosha National Park. The 

investments in Etosha National Park, 

combined with those for increased 

tourism marketing, will result in 

increased wages for an estimated 23,000 

new employees in the tourism industry. 

• An estimated 7,000 individuals are 

likely to enjoy significantly higher 

income as a result of full and part time 

employment generated through this 

project. Another 111,000 conservancy 

residents are expected to receive 

benefits through dividends or 

community-level projects. 

C. Agriculture Project 

MCC interventions will improve the 

security of land rights, the equitableness 

of access to land, the productivity and 

sustainability of communal rangeland 

resources, the productivity of herds, and 

the efficiency of livestock marketing and 

quarantine in the north. These 

activities—in particular, the land access 

and management activity—will create 

enabling conditions for communal and 

poor farmers to benefit from future 

public investments in the livestock 

sector. 

Despite rapid growth in the INP 

sector, additional funding is necessary 

to improve coordination in preserving 

scarce renewable resources, address the 

lack of skills of primary producers, and 

catalyze research and development in 

the sector. 

Expected results of the agriculture 

project include: 

• Over 130,000 individuals, primarily 

in the north, will benefit from improved 

market efficiency, improved land tenure 

security, and more equitable access to 

land. Fifty communities, with an 

average of 36 cattle-owning households, 

will potentially benefit from the 

rangeland management component. 

• The INP activity is expected to 

increase incomes for over 200,000 

households, and to increase incomes for 

primary producers, a majority of whom 

are poor and female, and for whom 

small increases in cash income can 

represent important supplementary 

household income. 

5. Program Management 

The GRN will incorporate the 

Compact program into its existing 

government systems. The National 

Planning Commission (‘‘NPC’’), a 

ministry-level government agency 

charged with directing development 

resources, has been proposed as the 

designated accountable entity (‘‘MCANamibia’’). As such, it will have overall 

responsibility for the oversight, 

management, and implementation of the 

program. A program implementation 

unit within NPC will be responsible for 

the day-to-day administration of the 

Compact. In addition, the GRN has 

proposed that the Ministries of 

Education; Agriculture, Water and 

Forestry; and Environment and 

Tourism, assist in the implementation of 

the specific projects to ensure 

integration, coordination, and 

sustainability of MCC’s investments. 

A. MCA-Namibia Board of Directors 

The NPC commissioners will serve as 

the MCA-Namibia Board of Directors. 

The commission currently consists of 14 

members, six of whom are GRN officials 

specified by the NPC’s enabling statute, 

with the remaining members appointed 

by the President of Namibia. As the six 

specified GRN officials do not include 

representatives from the Ministry of 

Education or the Ministry of 

Environment and Tourism, the GRN has 

agreed that two of the appointed 

commission member slots will be filled 

with representatives from these 

ministries. The remaining appointed 

board members will be civil society and 

private sector members, selected by the 

President based on their expertise in the 

development field. 

MCA-Namibia will rely on existing 

consultative committees to serve as 

stakeholder committees for each project. 

These committees include members 


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from the public and private sectors, and 

civil society. They are broad-based and 

offer relevant technical expertise plus a 

solid understanding of socioeconomic 

and environmental realities in Namibia. 

B. MCA-Namibia Program 

Implementation Unit 

Senior management of MCA-Namibia 

will consist of the chief executive officer 

(CEO); two deputy CEOs; director of 

administration and finance; project 

director for education, tourism and 

agriculture; environment and social 

assessment manager; monitoring and 

evaluation manager; legal advisor; and 

procurement manager. In addition to 

other standard operational staff, much 

of the technical expertise will come 

from government affiliates. To support 

MCA-Namibia and strengthen financial 

and procurement controls, MCANamibia will competitively recruit an 

external fiscal agent and procurement 

agent. 

6. Program Assessment 

A. Consultative Process 

The GRN initiated consultations in all 

13 regions of the country in mid-2006. 

These consultations have been ongoing 

particularly in those sectors that the 

Compact program will support. 

Stakeholders included government 

officials at national and regional levels, 

local authority counselors and 

stakeholders, regional coordination 

committees, regional AIDS committees, 

regional emergency units, land boards, 

farmers associations, conservancy 

groups, women’s associations, church 

groups, youth groups, vulnerable 

members of society, non-governmental 

organizations, community-based 

organizations, and the private sector. An 

important and noteworthy aspect of the 

consultative process is the absence of 

major divergence between the issues 

identified at national and regional 

levels. This appears to confirm that, in 

general, there is consensus within 

Namibia on priorities for economic 

growth—a consensus built on previous 

consultative processes for Vision 2030, 

the National Development Plans, 

Participatory Poverty Assessments, and 

other sector-level consultations. 

MCA-Namibia, in close consultation 

and cooperation with the stakeholders 

for each of the program components, 

will continue to consult and inform 

Namibians country-wide on the 

Compact to ensure broad-based 

understanding, appreciation, 

commitment, and ownership of the 

program. 

B. Government Commitment 

The GRN has demonstrated 

commitment to the Compact 

development process by fully funding 

an MCA-Namibia core team since mid2006, undertaking efforts to enhance 

performance on MCC Selection 

Indicators, proposing an ambitious 

lower-middle income country (‘‘LMIC’’) 

counterpart contribution, and adopting 

certain sector-specific policy reforms 

that are complementary to the Compact 

activities. 

• Ongoing Effort of MCA-Namibia 

Core Team: GRN commitment to the 

program is evidenced by a budgetary 

commitment to the Compact 

development process amounting to over 

$1.55 million over two years, the 

establishment of a 13-member MCANamibia core team, and the provision of 

significant office space and equipment 

for the MCA-Namibia core team in 

Windhoek. Coordinated by MCANamibia, GRN officials and other nongovernmental stakeholders have been 

engaged in refining the proposal over 

the past year and half. 

• MCC Eligibility Criteria: The GRN is 

in the process of developing a 

Performance Improvement Plan (‘‘PIP’’) 

to enhance Namibia’s performance on 

the specific indicators where it falls 

below the median, namely girls’ primary 

education completion, immunization 

rates, natural resource management, 

land rights and access, costs of starting 

a business, and fiscal policy. In 

addition, the GRN has named a seniorlevel point of contact within the Office 

of the President to lead and oversee the 

indicator performance enhancement 

efforts. MCC anticipates that the GRN 

will submit the PIP by mid-2008. 

• LMIC Country Contribution: The 

GRN has proposed a substantial 

counterpart contribution to the 

Compact, which primarily entails 

investments in complementary sector 

programs of ETSIP, livestock, and 

management and business plans for 

Etosha National Park. In addition, the 

GRN is committing to fund a significant 

portion of the additional line ministry 

staff expenses required for Compact 

implementation, such as increased staff 

resources from the Directorate of 

Veterinary Services and the Ministry of 

Education. As part of ensuring 

sustainability of MCC investments, the 

GRN will provide upfront, detailed 

budget commitments for all additional 

recurrent expenditures required for the 

staffing, operations, and maintenance of 

all infrastructure included in the 

Compact. 

• Sector-Specific Policy Reforms: The 

GRN has made several notable 

advancements in the education, 

tourism, and agriculture sectors, 

encompassing: 

Education Project 

• Enactment of the National Training 

Fund within the Namibia Training 

Authority under the Vocational 

Education and Training Act of 2008; 

• Establishment and staffing of the 

National Training Authority; 

• Approval of a new National 

Textbook Policy for primary and 

secondary schools (2008); and 

• Adoption of policies for the 

Colleges of Education to allow for their 

semi-autonomy and introduction of 

performance contracts. 

Tourism Project 

• Adoption of Ministry of 

Environment and Tourism Strategic 

Plan; 

• Adoption of Etosha National Park 

Management Plan and Business Plan; 

and 

• Passage of the Environmental 

Management Bill into law establishing 

mandatory environmental review and 

mitigation procedures in Namibia 

(2007). 

Agriculture Project 

• Drafting the Access to Genetic 

Resources and Associated Traditional 

Knowledge bill that regulates the 

methods of harvesting and cultivation of 

indigenous natural products (passage 

into law by the Namibian Parliament 

and enactment by its President 

pending). 

C. Environmental and Social 

Assessment 

Education Project 

The education project is considered a 

Category B project due to the 

environmental and social impacts that 

will result from the activities. The GRN 

will identify and assess environmental 

impacts as a result of detailed design 

work completed prior to entry into 

force. Limited resettlement impacts are 

anticipated to result from the education 

project. MCA-Namibia and the Ministry 

of Education have been coordinating 

with local communities on the 

acquisition of land in compliance with 

World Bank Operational Policy 4.12 on 

Involuntary Resettlement in advance of 

the MCC investments. No resettlement 

impacts are anticipated to result from 

the infrastructure investments at the 

general schools. 

The education project is expected to 

lead to beneficial gender and social 

impacts by providing improved services 

and facilities to targeted communities. 

The COSDECs will benefit unemployed 


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46724 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 

youth, women, and low-skilled adults 

by providing training in 

entrepreneurship, business 

management, and other vocational skills 

critical to the local labor market. The 

proposed improvements at the 

approximately 47 general schools, 

including the provision of water and 

sanitation and new construction designs 

that provide disability access, will 

improve the quality of and access to 

schools for female and disabled 

learners. 

HIV/AIDS education needs 

strengthening as the guidance and 

support to teachers and trainers is 

limited. HIV/AIDS awareness and 

prevention plans will also be 

implemented on construction contracts, 

where each facility is located for the 

schools, COSDECs, and RSRCs. 

Tourism Project 

The tourism project is categorized as 

a Category A project due to potential 

site-specific environmental and social 

impacts in sensitive areas anticipated 

from the construction of national park 

management centers in fragile 

ecosystems home to small populations 

of vulnerable ethnic groups. Tourism 

development activities supported 

through an independent fund 

established to provide community-based 

wildlife organizations with equity 

shares in tourism joint-ventures and 

support for wildlife relocation activities 

will be classified as Category D. While 

the environmental and social impacts of 

Compact-supported tourism activities 

are not anticipated to be significant in 

nature, they are occurring in sensitive 

areas and will require mitigation 

through environmental management 

plans, as well as support to ongoing 

voluntary resettlement actions to 

provide land for the San ethnic group 

outside of national parks. 

The construction and rehabilitation of 

management centers in Etosha National 

Park will require an environmental 

impact assessment and site-specific 

environmental management plans. 

Social safeguards associated with the 

Etosha National Park management 

centers will include the implementation 

of HIV/AIDS awareness and prevention 

programs for both national park staff 

and construction contractors, and 

conditions to ensure park employees 

have access to schools for their children. 

Women and vulnerable groups have 

been actively involved in land 

management, resource governance, and 

revenue-generating activities through 

the tourism sector in Namibia, and 

MCC’s investment will ensure their 

continued participation. Membership in 

the conservancies is almost equally split 

between men and women, and as of 

January 2006, women comprised 37 

percent of all conservancy management 

committee members. Underrepresented 

groups, such as San and Himba peoples, 

are active members in conservancies in 

their traditional homelands, which 

provide them with revenue generating 

opportunities previously unavailable, 

and MCC funding will be used to 

increase economic opportunities 

through tourism on conservancies in 

San and Himba homelands. 

Agriculture Project 

The land access and management 

activity is a Category B activity due to 

potential site-specific environmental 

impacts stemming from land use 

management decisions. These impacts 

are not anticipated to be significant and 

can be mitigated through environmental 

management plans and participatory 

community-level decision making 

processes. 

The communal land support subactivity is intended to reduce land 

degradation and provide more secure 

access to land for the residents of the 

NCAs. Additionally, the communitybased rangeland and livestock 

management sub-activity is intended to 

improve the productivity of grasslands 

and provide communities with the 

ability to plan their grazing for more 

sustainable land use. However, MCCfunded interventions intended to 

improve land use and clarify ownership 

rights could lead to the involuntary loss 

of livelihood access or resettlement if 

community-based land use planning 

actions are abused by elites. 

The livestock support activity is a 

Category B activity due to potential sitespecific environmental impacts 

resulting from the construction and 

operation of veterinary centers, 

rehabilitation of quarantine camps, and 

construction of community, municipal 

or private sector livestock marketing 

facilities through matching funds from 

MCC. As the livestock market efficiency 

improvement intervention involves an 

intermediate funding facility, it is a 

Category D investment. While these 

impacts are not anticipated to be 

significant in nature, they will require 

mitigation through environmental 

management plans. 

MCA-Namibia will procure an 

environmental assessment to analyze 

potential environmental impacts of the 

livestock infrastructure construction 

and rehabilitation, and develop sitespecific environmental mitigation plans 

for each site. Given the remote location 

of these facilities, specific measures will 

need to be integrated into the final 

design of these facilities to ensure 

proper disposal so that untreated wastes 

do not go directly into streams or rivers, 

as is the case in some areas. 

For any veterinary infrastructure built 

through the livestock market efficiency 

improvement fund, MCA-Namibia will 

develop environmental screening and 

siting criteria, as well as guidelines for 

environmental procedures to follow 

during construction and operation of 

these facilities. Periodic and random 

performance audits of infrastructure 

funding recipients will take place to 

ensure they are complying with these 

requirements. 

The INP activity is a Category A 

activity due to potentially significant 

environmental impacts anticipated to 

result from increased harvesting, 

utilization, and export of species listed 

for protection under the Convention on 

the International Trade of Endangered 

Species. 

Millennium Challenge Compact 

Between the United States of America 

Acting Through the Millennium 

Challenge Corporation and the 

Republic of Namibia 

Table of Contents 

Article 1. Goal and Objectives 

Section 1.1 Compact Goal 

Section 1.2 Program Objective 

Section 1.3 Project Objectives 

Article 2. Funding and Resources 

Section 2.1 Program Funding 

Section 2.2 Compact Implementation 

Funding 

Section 2.3 MCC Funding 

Section 2.4 Disbursement 

Section 2.5 Interest 

Section 2.6 Namibia Resources; Budget 

Section 2.7 Limitations on 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 Responsibilities 

Section 3.3 Policy Performance 

Section 3.4 Assurances 

Section 3.5 Implementation Letter 

Section 3.6 Procurement 

Section 3.7 Records; Accounting; Covered 

Providers; Access 

Section 3.8 Audits; Reviews 

Article 4. Communications 

Section 4.1 Communications 

Section 4.2 Representatives 

Section 4.3 Signatures 

Article 5. Termination; Suspension; Refunds 

Section 5.1 Termination; Suspension 

Section 5.2 Refunds; Violation 

Section 5.3 Survival 

Section 5.4 Post-Termination Discussions 

Article 6. Compact Annexes; Amendments; 

Governing Law 

Section 6.1 Annexes 

Section 6.2 Amendments 

Section 6.3 Inconsistencies 

Section 6.4 Governing Law 


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Section 6.5 Additional Instruments 

Section 6.6 References to MCC Web site 

Section 6.7 References to Law, 

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 

Annex VI: MCA-Namibia Procurement 

Rules 

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 Namibia 

(‘‘Namibia’’) (individually a ‘‘Party’’ and 

collectively, the ‘‘Parties’’). 

Recalling that Namibia consulted with 

the private sector and civil society of the 

Republic of Namibia to determine the 

priorities for the use of Millennium 

Challenge Account assistance and 

developed and submitted to MCC a 

proposal focused on poverty reduction 

through improving human resources, 

capacities and skills, enhancing public 

and private sector investment in tourism 

and increasing agricultural productivity; 

and 

Recognizing that MCC wishes to help 

the Republic of Namibia implement a 

program to achieve the goal and 

objectives described herein (the 

‘‘Program’’); 

Capitalized terms used herein shall 

have the meanings specified in Annex V 

hereto. 

The Parties hereby agree as follows: 

Article 1. Goal and Objectives 

Section 1.1 Compact Goal 

The goal of this Compact is to reduce 

poverty in the Republic of Namibia 

through economic growth (the 

‘‘Compact Goal’’). 

Section 1.2 Program Objective 

The objective of the Program (as 

further described in Annex I) (the 

‘‘Program Objective’’) is to increase the 

competence of the Namibian workforce 

(knowledge, skills and attitude), and 

increase the productivity of agricultural 

and non-agricultural enterprises in rural 

areas. 

Section 1.3 Project Objectives 

The objectives of the Projects (as 

further described in Annex I) (each a 

‘‘Project Objective’’ and collectively, the 

‘‘Project Objectives’’) are: 

(a) The objective of the Education 

Project is to improve the quality of the 

workforce in Namibia by enhancing the 

equity and effectiveness of basic, 

vocational, and tertiary education and of 

technical skills. 

(b) The objective of the Tourism 

Project is to grow the Namibian tourism 

industry with explicit targeting of 

income streams to conservancy 

households. 

(c) The objective of the Agriculture 

Project is to increase the total value 

added from livestock in the northern 

communal areas of the Republic of 

Namibia and to increase income from 

indigenous natural products accruing to 

the poor nationwide. 

Article 2. Funding and Resources 

Section 2.1 Program Funding 

MCC hereby grants to Namibia, under 

the terms of this Compact, an amount 

not to exceed Three Hundred Four 

Million Four Hundred Seventy-Seven 

Thousand Eight Hundred Sixteen 

United States Dollars (US$304,477,816) 

(‘‘Program Funding’’) for use by 

Namibia to implement the Program. The 

allocation of Program Funding is 

generally described in Annex II to this 

Compact. 

Section 2.2 Compact Implementation 

Funding 

(a) MCC hereby grants to Namibia, 

under the terms of this Compact, in 

addition to the Program Funding 

described in Section 2.1, an amount not 

to exceed Nineteen Million Five 

Hundred Forty-Three Thousand One 

Hundred Seventy-Five United States 

Dollars (US$19,543,175) (‘‘Compact 

Implementation Funding’’) under 

Section 609(g) of the Millennium 

Challenge Act of 2003, as amended (the 

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

following purposes: 

(i) Fiscal and procurement 

administration activities and costs 

(including, for example, costs related to 

standby agents procured by MCC); 

(ii) Administrative activities 

including start-up costs such as staff 

salaries and administrative support 

expenses such as rent, computers and 

other information technology or capital 

equipment; 

(iii) Baseline surveys for monitoring 

and evaluation; 

(iv) Additional work for feasibility 

studies and development of technical 

scopes; and 

(v) Other Compact implementation 

activities approved by MCC. 

The allocation of Compact 

Implementation Funding is generally 

described in Annex II to this Compact. 

(b) Notwithstanding Section 7.3 of 

this Compact, as of the date that this 

Compact is signed by MCC and Namibia 

(i) this Section 2.2 shall be effective, and 

(ii) any other provisions of this Compact 

applicable to Compact Implementation 

Funding shall be effective for purposes 

of Compact Implementation Funding 

only, provided that the MCA-Namibia 

Procurement Rules will only be effective 

after ratification of this Compact by 

Namibia. 

(c) Each Disbursement (as defined in 

Section 2.4) of Compact Implementation 

Funding shall be subject to satisfaction 

of the conditions to such disbursement 

as set forth on Annex IV. 

(d) If, after the first anniversary of this 

Compact entering into force, MCC 

determines that the full amount of 

Compact Implementation Funding 

under Section 2.2(a) of this Compact 

exceeds the amount which reasonably 

can be utilized for the purposes and 

uses set forth in Section 2.2(a) of this 

Compact, MCC, by written notice to 

Namibia, may withdraw the excess 

amount, thereby reducing the amount of 

the Compact Implementation Funding 

as set forth in Section 2.2(a) (such 

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

such event, the amount of Compact 

Implementation Funding granted to 

Namibia under Section 2.2(a) will be 

reduced by the Excess CIF Amount, and 

MCC will have no further obligations 

with respect to such Excess CIF 

Amount. 

(e) MCC, at MCC’s option by written 

notice to Namibia, may elect to grant to 

Namibia an amount equal to all or a 

portion of such Excess CIF Amount as 

an increase in the Program Funding, and 

such additional Program Funding will 

be subject to the 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.’’

Section 2.4 Disbursement 

In accordance with this Compact and 

the Program Implementation Agreement 

(as defined in Section 3.1), MCC will 

disburse MCC Funding for expenditures 

incurred in furtherance of the Program 

(each instance, a ‘‘Disbursement’’). 

Subject to the satisfaction of all 

applicable conditions, the proceeds of 

such Disbursements will be made 


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available to Namibia, at MCC’s sole 

election, by (a) deposit to one or more 

bank accounts established by Namibia 

and acceptable to MCC (each, a 

‘‘Permitted Account’’) or (b) direct 

payment to the relevant provider of 

goods, works or services in connection 

with the implementation of the 

Program. MCC Funding may be 

expended only to cover Program 

expenditures as provided in this 

Compact and the Program 

Implementation Agreement. 

Section 2.5 Interest 

Namibia will pay to MCC any interest 

or other earnings that accrue on MCC 

Funding in accordance with the 

Program Implementation Agreement 

(whether by directing such payments to 

a bank account outside Namibia that 

MCC may from time to time indicate or 

as otherwise directed by MCC). 

Section 2.6 Namibia Resources; Budget 

(a) In accordance with Section 

609(b)(2) of the MCA Act, Namibia will 

make a contribution towards meeting 

the Objectives of this Compact. Annex 

II describes such contribution in more 

detail. In addition, Namibia will provide 

all funds and other resources, and will 

take all actions, that are necessary to 

carry out Namibia’s responsibilities and 

obligations under this Compact. 

(b) Namibia will use its best efforts to 

ensure that all MCC Funding it receives 

or is projected to receive in each of its 

fiscal years is fully accounted for in its 

annual budget on a multi-year basis. 

(c) Namibia will not reduce the 

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 Namibia discloses 

otherwise to MCC in writing, MCC 

Funding will be in addition to the 

resources that Namibia would otherwise 

receive or budget for the activities 

contemplated under this Compact and 

the Program. 

Section 2.7 Limitations on the Use of 

MCC Funding 

Namibia will ensure that MCC 

Funding will not be used for any 

purpose that would violate United 

States law or policy, as specified in this 

Compact or as further notified to 

Namibia in writing or by posting on the 

MCC Web site at http://www.mcc.gov 

(the ‘‘MCC Web site’’), including but not 

limited to the following purposes: 

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

military, police, militia, national guard 

or other quasi-military organization or 

unit; 

(b) For any activity that is likely to 

cause a substantial loss of United States 

jobs or a substantial displacement of 

United States production; 

(c) To undertake, fund or otherwise 

support any activity that is likely to 

cause a significant environmental, 

health, or safety hazard, as further 

described in MCC’s Environmental 

Guidelines posted on the MCC Web site 

(the ‘‘MCC Environmental Guidelines’’); 

or 

(d) To pay for the performance of 

abortions as a method of family 

planning or to motivate or coerce any 

person to practice abortions, to pay for 

the performance of involuntary 

sterilizations as a method of family 

planning or to coerce or provide any 

financial incentive to any person to 

undergo sterilizations or to pay for any 

biomedical research which relates, in 

whole or in part, to methods of, or the 

performance of, abortions or involuntary 

sterilization as a means of family 

planning. 

Section 2.8 Taxes 

(a) Unless the Parties otherwise 

specifically agree in writing, and subject 

to the provisions of Sections 2.8(b)(ii) 

and (iii) and 2.8(c), Namibia will ensure 

that each of the following is free from 

the payment of any existing or future 

taxes, duties, levies, contributions or 

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

Namibia (including any such Taxes 

imposed by a national, regional, local or 

other governmental or taxing authority 

of or in Namibia): (i) The Program; (ii) 

MCC Funding; (iii) interest or earnings 

on MCC Funding; (iv) any Project or 

activity implemented under the 

Program; (v) MCA-Namibia (as defined 

in Section 3.2(b)) (vi) goods, works, 

services, technology and other assets 

and activities under the Program or any 

Project; (vii) persons and entities that 

provide such goods, works, services, 

technology and assets or perform such 

activities; and (viii) income, profits and 

payments with respect thereto. The 

Parties acknowledge and agree that the 

foregoing includes, inter alia, value 

added and other transfer taxes, profit 

and income taxes, property and ad 

valorem taxes, import and export duties 

and taxes (including for goods imported 

and re-exported for personal use), 

withholding taxes, payroll taxes, and 

social security and social insurance 

contributions. 

(b) The GRN and the USG may, at 

MCC’s discretion, enter into one or more 

agreements setting forth the 

mechanisms for implementing this 

Section 2.8, including (i) waivers of 

certain filing and compliance 

requirements relating to Taxes, (ii) an 

agreement on exceptions to Section 

2.8(a) above for fees or charges for 

services that are generally applicable in 

Namibia, reasonable in amount and 

imposed on a non-discriminatory basis, 

and (iii) one or more mechanisms to 

implement the provisions of Section 

2.8(a) with respect to all or any of the 

Taxes that would otherwise be 

applicable, which may include 

exemptions from payment of such Taxes 

that have been granted in accordance 

with applicable law, refund or 

reimbursement of such Taxes by the 

Namibia to MCC or to the taxpayer, or 

payment by Namibia to MCA-Namibia 

or MCC, for the benefit of the Program, 

of an agreed amount representing any 

collectible Taxes on the items described 

in Section 2.8(a). 

(c) The provisions of Section 2.8(a) 

shall not apply to income Taxes on and 

contributions with respect to 

individuals who are nationals of 

Namibia and individuals who are 

ordinarily resident in Namibia, provided 

that such Taxes and contributions are 

equitable and are generally applicable to 

all nationals in Namibia. 

(d) If a Tax has been paid contrary to 

the requirements of this Section 2.8 or 

any agreement entered into pursuant to 

this Section 2.8, Namibia will refund 

promptly to MCC (or to another party as 

designated by MCC) the amount of such 

Tax in Namibia Dollars within thirty 

(30) days (or such other period as may 

be agreed in writing by the Parties) after 

Namibia is notified in writing (whether 

by MCC or MCA-Namibia) that such Tax 

has been paid. 

(e) No MCC Funding, proceeds thereof 

or Program assets may be applied by 

Namibia in satisfaction of its obligations 

under this Section 2.8. 

Section 2.9 Lower Middle Income 

Countries 

Section 606(b) of the MCA Act 

restricts the amount of assistance that 

MCC may provide to ‘‘lower middle 

income countries,’’ a term that is 

defined in the MCA Act and includes 

Namibia. To the extent that MCC 

determines, in MCC’s reasonable 

discretion, that the amount of Program 

Funding granted to Namibia in this 

Compact may result in a violation of 

Section 606(b) of the MCA Act, MCC, at 

any time and from time to time upon 

written notice to Namibia, may reduce 

the amount of Program Funding, or 

withhold any Disbursement of Program 

Funding, to avoid or remedy such a 

violation. 


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Article 3. Implementation 

Section 3.1 Program Implementation 

Agreement 

Namibia will implement the Program 

in accordance with this Compact and as 

further specified in an agreement 

entered into between the GRN and the 

USG relating to, among other matters, 

implementation arrangements, fiscal 

accountability and disbursement and 

use of MCC Funding (the ‘‘Program 

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

Section 3.2 Responsibilities 

(a) Namibia has principal 

responsibility for overseeing and 

managing the implementation of the 

Program. 

(b) Namibia hereby designates the 

National Planning Commission 

(‘‘NPC’’), a governmental entity 

established under the laws of the 

Republic of Namibia pursuant to the 

National Planning Commission Act, 

1994 (the ‘‘NPC Act’’), as the 

accountable entity to implement the 

Program and to perform Namibia’s 

rights and responsibilities to oversee, 

manage and implement the Program, 

including without limitation, managing 

the implementation of Projects and their 

activities, allocating resources and 

managing procurements. The NPC, 

acting in such designated capacity, will 

be referred to herein as ‘‘MCANamibia,’’ and has the authority to bind 

Namibia with regard to all Program 

activities. The designation of this 

Section 3.2(b) will not relieve Namibia 

of any obligations and rights, for which 

Namibia retains full responsibility. 

(c) Namibia will ensure that no 

current law or regulation in Namibia 

makes unlawful or otherwise prevents 

or hinders the performance of any of 

Namibia’s obligations under this 

Compact, the PIA or any other related 

agreement or any transaction 

contemplated hereby or thereby. 

Furthermore, Namibia will use its best 

efforts to ensure that no future law or 

regulation in Namibia will make 

unlawful or otherwise prevent or hinder 

the performance of any of Namibia’s 

obligations under this Compact, the PIA 

or any other related agreement or any 

transaction contemplated hereby or 

thereby. 

(d) Namibia will ensure that any 

assets or services funded in whole or in 

part (directly or indirectly) by MCC 

Funding will be used solely in 

furtherance of this Compact and the 

Program unless otherwise agreed by 

MCC in writing. 

(e) Namibia will take all necessary or 

appropriate steps to achieve the 

Program Objective and Project 

Objectives during the Compact Term (as 

defined in Section 7.4). 

Section 3.3 Policy Performance 

In addition to undertaking the specific 

policy, legal and regulatory reform 

commitments identified in Annex I (if 

any), Namibia will seek to maintain and 

to improve its level of performance 

under the policy criteria identified in 

Section 607 of the MCA Act, and the 

selection criteria and methodology used 

by MCC. 

Section 3.4 Assurances 

Namibia assures MCC that: 

(a) As of the date this Compact is 

signed by Namibia, the information 

provided to MCC by or on behalf of 

Namibia in the course of reaching 

agreement with MCC on this Compact is 

true, correct and complete in all 

material respects; 

(b) This Compact, upon its ratification 

by Namibia, does not, and will not, 

conflict with any other obligation of 

Namibia, any other international 

agreement or obligation of Namibia or 

any of the laws of Namibia; and 

(c) Namibia will not invoke any of the 

provisions of its internal law to justify 

or excuse a failure to perform its duties 

or responsibilities under this Compact. 

Section 3.5 Implementation Letters 

To assist Namibia in the 

implementation of this Compact, from 

time to time, MCC may issue 

implementation letters that will furnish 

additional guidance about 

implementation of this Compact, the 

PIA or other related agreements (each, 

an ‘‘Implementation Letter’’). The 

Parties may also issue jointly agreedupon Implementation Letters to confirm 

and record their mutual understanding 

on aspects related to the 

implementation of this Compact, the 

PIA or other related agreements. Such 

Implementation Letters will be applied 

when implementing the Program. 

Section 3.6 Procurement 

Namibia will ensure that the 

procurement of all goods, works and 

services by Namibia or any Provider (as 

defined in Section 3.7(c)) to implement 

the Program will be consistent with the 

MCA-Namibia Program Procurement 

Rules attached hereto as Annex VI (the 

‘‘MCA-Namibia Procurement Rules’’) as 

provided for in the Program 

Implementation Agreement. The 

Procurement Rules will include, among 

others, the following requirements: 

(a) Open, fair, and competitive 

procedures must be used in a 

transparent manner to solicit, award and 

administer contracts and to procure 

goods, works and services; 

(b) Solicitations for goods, works, and 

services must be based upon a clear and 

accurate description of the goods, works 

and services to be acquired; 

(c) Contracts must be awarded only to 

qualified contractors that have the 

capability and willingness to perform 

the contracts in accordance with their 

terms on a cost effective and timely 

basis; and 

(d) No more than a commercially 

reasonable price, as determined, for 

example, by a comparison of price 

quotations and market prices, will be 

paid to procure goods, works and 

services. 

Section 3.7 Records; Accounting; 

Covered Providers; Access 

(a) Namibia Books and Records. 

Namibia will maintain, and will use its 

best efforts to ensure that all Covered 

Providers (as defined in Section 3.7(c)) 

maintain accounting books, records, 

documents and other evidence relating 

to the Program adequate to show to 

MCC’s satisfaction the use of all MCC 

Funding (‘‘Compact Records’’). In 

addition, Namibia will furnish or cause 

to be furnished to MCC, upon its 

request, all such Compact Records. 

(b) Accounting. Namibia will 

maintain and will use its best efforts to 

ensure that all Covered Providers 

maintain Compact Records in 

accordance with generally accepted 

accounting principles prevailing in the 

United States, or at Namibia’s option 

and with MCC’s prior written approval, 

other accounting principles, such as 

those (i) prescribed by the International 

Accounting Standards Board, or (ii) then 

prevailing in Namibia. Compact Records 

must be maintained for at least five (5) 

years after the end of the Compact Term 

or for such longer period, if any, 

required to resolve any litigation, claims 

or audit findings or any statutory 

requirements. 

(c) Providers and Covered Providers. 

Unless the Parties agree otherwise in 

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

Namibia that receives or uses MCC 

Funding or any other Program asset in 

carrying out activities in furtherance of 

this Compact or (ii) any third party that 

receives at least US$50,000 in the 

aggregate of MCC Funding (other than as 

salary or compensation as an employee 

of an entity of Namibia) during the 

Compact Term. A ‘‘Covered Provider’’ is 

(i) a non-United States Provider that 

receives (other than pursuant to a direct 

contract or agreement with MCC) 

US$300,000 or more of MCC Funding in 

any Namibia fiscal year or any other 

non-United States person or entity that 


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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 Namibia 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. 

(d) Access. Upon MCC’s request, 

Namibia, at all reasonable times, will 

permit, or cause to be permitted, 

authorized representatives of MCC, an 

authorized United States inspector 

general, the United States Government 

Accountability Office, any auditor 

responsible for an audit contemplated 

herein or otherwise conducted in 

furtherance of this Compact, and any 

agents or representatives engaged by 

MCC or Namibia to conduct any 

assessment, review or evaluation of the 

Program, the opportunity to audit, 

review, evaluate or inspect facilities and 

activities funded in whole or in part by 

MCC Funding. 

Section 3.8 Audits; Reviews 

(a) Audits. Except as the Parties may 

otherwise agree in writing, Namibia 

will, on at least a semi-annual basis, 

conduct, or cause to be conducted, 

financial audits of all Disbursements of 

MCC Funding covering the period from 

signing of this Compact until the earlier 

of the following December 31 or June 30 

and covering each six-month period 

thereafter ending December 31 and June 

30, through the end of the Compact 

Term, in accordance with the terms of 

the Program Implementation 

Agreement. In addition, upon MCC’s 

request, Namibia will ensure that such 

audits are conducted by an independent 

auditor approved by MCC and named 

on the list of local auditors approved by 

the Inspector General of MCC (the 

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

selected in accordance with the 

‘‘Guidelines for Financial Audits 

Contracted by MCA’’ (the ‘‘Audit 

Guidelines’’) issued and revised from 

time to time by the Inspector General, 

which are posted on the MCC Web site. 

Audits will be performed in accordance 

with the Audit Guidelines and be 

subject to quality assurance oversight by 

the Inspector General. Each audit must 

be completed and the audit report 

delivered to MCC no later than 90 days 

after the first period to be audited and 

no later than 90 days after each June 30 

and December 31 thereafter, or such 

other period as the Parties may 

otherwise agree in writing. 

(b) Audits of United States Entities. 

Namibia will ensure that agreements 

between Namibia or any Provider, on 

the one hand, and a United States 

nonprofit organization, on the other 

hand, that are financed with MCC 

Funding state that the United States 

nonprofit organization is subject to the 

applicable audit requirements contained 

in OMB Circular A–133 issued by the 

United States Government Office of 

Management and Budget (‘‘OMB’’). 

Namibia will ensure that agreements 

between Namibia or any Provider, on 

the one hand, and a United States forprofit Covered Provider, on the other 

hand, that are financed with MCC 

Funding state that the United States forprofit organization is subject to audit by 

the applicable United States 

Government agency, unless Namibia 

and MCC agree otherwise in writing. 

(c) Corrective Actions. Namibia will 

use its best efforts to ensure that 

Covered Providers take, where 

necessary, appropriate and timely 

corrective actions in response to audits, 

consider whether a Covered Provider’s 

audit necessitates adjustment of 

Namibia’s records, and require each 

such Covered Provider to permit 

independent auditors to have access to 

its records and financial statements as 

necessary. 

(d) Audit by MCC. MCC will have the 

right to arrange for audits of Namibia’s 

use 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: (a) Before this Compact 

enters into force, Vice President, 

Compact Development; and (b) after this 

Compact enters into force, Vice 

President, Compact Implementation, (in 

each case, with a copy to the Vice 

President and General Counsel), 875 

Fifteenth Street, NW., Washington, DC 

20005, United States of America, 

Facsimile: (202) 521–3700, Telephone: 

(202) 521–3600, E-mail: 

VPDevelopment@mcc.gov (Vice 

President, Compact Development), 

VPImplementation@mcc.gov (Vice 

President, Compact Implementation), 

VPGeneralCounsel@mcc.gov (Vice 

President and General Counsel). 

To Namibia: 

The Director General, National 

Planning Commission, Office of the 

President, Government Office Park, 

Luther Street, Block D, Room 206, 

Private Bag 12005, Windhoek, Republic 

of Namibia, Tel: +264 61 283 4222, Fax: 

+264 61 250 751. 

with a copy to: 

MCA-Namibia, Attention: Chief 

Executive Officer, c/o National Planning 

Commission, Office of the President, 

Government Office Park, Luther Street, 

Block D, Room 206, Private Bag 12005, 

Windhoek, Republic of Namibia, Tel: 

+264 61 283 4222, Fax: +264 61 250 

751. 

Section 4.2 Representatives 

For all purposes of this Compact 

(including, without limitation, signing 

agreements supplemental to this 

Compact), Namibia will be represented 

by the individual holding the position 

of, or acting as, the Director General of 

NPC, and MCC will be represented by 

(a) before this Compact enters into force, 

the individual holding the position of, 

or acting as, Vice President, Compact 

Development, and (b) after this Compact 

enters into force, the individual holding 

the position of, or acting as, Vice 

President, Compact Implementation 

(each of the foregoing, a ‘‘Principal 

Representative’’). Each Party, by written 

notice to the other Party, may designate 

one or more additional representatives 

(each, an ‘‘Additional Representative’’) 

for all purposes other than signing 

amendments to this Compact. Namibia 

hereby designates the chief executive 

officer of MCA-Namibia as an 

Additional Officer. A Party may change 

its Principal Representative to a new 

representative that holds a position of 

equal or higher rank upon written notice 

to the other Party. 

Section 4.3 Signatures 

With respect to all documents other 

than this Compact or an amendment to 

this Compact, a signature delivered by 

facsimile or electronic mail will be 

binding on the Party delivering such 

signature to the same extent as an 

original signature would be. 

Article 5. Termination; Suspension; 

Refunds 

Section 5.1 Termination; Suspension 

(a) Either Party may terminate this 

Compact without cause in its entirety by 

giving the other Party thirty (30) days’

written notice. 


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(b) MCC may, immediately, upon 

written notice to Namibia, 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, in its reasonable 

discretion, as a basis for suspension or 

termination has occurred, which 

circumstances include but are not 

limited to the following: 

(i) Namibia fails to comply with its 

obligations under this Compact, the PIA 

or any other agreement or arrangement 

entered into by Namibia in connection 

with this Compact or the Program; 

(ii) An event or series of events has 

occurred that MCC determines makes it 

probable that the Program Objective or 

any of the Project Objectives will not be 

achieved during the Compact Term or 

that Namibia will not be able to perform 

its obligations under this Compact; 

(iii) A use of MCC Funding or 

continued implementation of the 

Program violates or would violate 

applicable law or United States 

Government policy, whether now or 

hereafter in effect; 

(iv) Namibia or any other person or 

entity receiving MCC Funding or using 

assets acquired in whole or in part with 

MCC Funding is engaged in activities 

that are contrary to the national security 

interests of the United States; 

(v) an act has been committed or an 

omission or an event has occurred that 

would render Namibia ineligible to 

receive United States economic 

assistance under Part I of the Foreign 

Assistance Act of 1961, as amended (22 

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

application of any provision of the 

Foreign Assistance Act of 1961 or any 

other provision of law; 

(vi) Namibia has engaged in a pattern 

of actions inconsistent with the criteria 

used to determine the eligibility of 

Namibia for assistance under the MCA 

Act ; and 

(vii) Namibia or another person or 

entity receiving MCC Funding or using 

assets acquired in whole or in part with 

MCC Funding is found to have been 

convicted of a narcotics offense or to 

have been engaged in drug trafficking. 

(c) All Disbursements will cease upon 

expiration, suspension, or termination 

of this Compact; provided, however, 

MCC Funding may be used, in 

compliance with this Compact and the 

PIA, to pay for (i) reasonable 

expenditures for goods, works or 

services that are properly incurred 

under or in furtherance of the Program 

before expiration, suspension or 

termination of this Compact, and (ii) 

reasonable expenditures (including 

administrative expenses) properly 

incurred in connection with the 

winding up of the Program within 120 

days after the expiration, suspension or 

termination of this Compact, so long as 

the request for such expenditures is 

submitted within ninety (90) days after 

such expiration, suspension or 

termination. 

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

expiration, suspension or termination of 

this Compact, (i) any amounts of MCC 

Funding not disbursed by MCC to 

Namibia will be automatically released 

from any obligation in connection with 

this Compact, and (ii) any amounts of 

MCC Funding disbursed by MCC but 

not expended before the expiration, 

suspension or termination of this 

Compact, plus accrued interest thereon 

will be returned to MCC within thirty 

(30) days after Namibia receives MCC’s 

request for such return; provided, 

however, that if this Compact is 

suspended or terminated in part, MCC 

may request a refund for only the 

amount of MCC Funding allocated to 

the suspended or terminated portion. 

(e) MCC may reinstate any suspended 

or terminated MCC Funding under this 

Compact if MCC determines that 

Namibia or other relevant person or 

entity has committed to correct each 

condition for which MCC Funding was 

suspended or terminated. 

Section 5.2 Refunds; Violation 

(a) If any MCC Funding, any interest 

or earnings thereon, or any asset 

acquired in whole or in part with MCC 

Funding is used for any purpose in 

violation of the terms of this Compact, 

then MCC may require Namibia to repay 

to MCC in United States Dollars the 

value of the misused MCC Funding, 

interest, earnings, or asset, plus interest 

within thirty (30) days after Namibia’s 

receipt of MCC’s request for repayment. 

Namibia will not use MCC Funding, 

proceeds thereof or Program assets to 

make such payment. 

(b) Notwithstanding any other 

provision in this Compact or any other 

agreement to the contrary, MCC’s right 

under this Section 5.2 for a refund will 

continue during the Compact Term and 

for a period of (i) five years thereafter or 

(ii) one year after MCC receives actual 

knowledge of such violation, whichever 

is later. 

Section 5.3 Survival 

Namibia’s responsibilities under 

Sections 2.4, 2.6, 2.7, 3.7, 3.8, 5.1(c), 

5.1(d), 5.2, 5.3, 5.4 and 6.2 of this 

Compact will survive the expiration, 

suspension or termination of this 

Compact. 

Section 5.4 Post-Termination 

Discussions 

Following the termination of this 

Compact pursuant to Section 5.1(b), at 

Namibia’s request, the Parties will meet 

at a mutually convenient time and 

location for the purpose of notifying 

Namibia of the circumstances or reasons 

for such termination to the extent it has 

not previously received such notice. 

Notwithstanding the Parties’ agreement 

to meet, which will be honored in good 

faith, any matters discussed will be nonbinding (unless otherwise agreed and 

recorded by the Parties), will not give 

rise to a claim by either Party, and MCC 

will not be obligated to reinstate the 

Compact following any such meeting. 

Article 6. Compact Annexes; 

Amendments; Governing Law 

Section 6.1 Annexes 

Each annex to this Compact 

constitutes an integral part hereof, and 

references to ‘‘Annex’’ mean an annex to 

this Compact unless otherwise expressly 

stated. 

Section 6.2 Amendments 

(a) The Parties may amend this 

Compact only by a written agreement 

signed by the Principal Representatives. 

(b) Without formally amending this 

Compact, the Parties may agree in 

writing, signed by the Principal 

Representatives, to modify any Annex to 

this Compact to (i) suspend, terminate 

or modify any project described in 

Annex I (each, a ‘‘Project’’ and 

collectively, the ‘‘Projects’’) or to create 

a new project, (ii) change the 

designations and allocations of funds 

among the Projects, the Project 

activities, or any activity under Program 

administration or monitoring and 

evaluation, or between a Project 

identified as of the entry into force of 

this Compact and a new project, or (iii) 

add, delete or waive any condition 

precedent described in Annex IV, or (iv) 

amend the MCA-Namibia Procurement 

Rules, provided that any such 

modification (1) is consistent in all 

material respects with the Program 

Objective, (2) does not cause the amount 

of Program Funding to exceed the 

aggregate amount specified in Section 

2.1 of this Compact (as may be modified 

by operation of Section 2.2(e) of this 

Compact), (3) does not cause the amount 

of Compact Implementation Funding to 

exceed the aggregate amount specified 

in Section 2.2(a) of this Compact, (4) 

does not cause Namibia’s 

responsibilities or contribution of 

resources to be less than specified in 

this Compact, (5) does not extend the 

Compact Term and (6) in the case of a 


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modification to change the designations 

or allocations of funds among Projects, 

does not materially adversely affect any 

activity under Program administration 

or monitoring and evaluation. 

(c) Any modification of any annex to 

this Compact or to any other provision 

of this Compact pursuant to this Section 

6.2 shall be binding on Namibia without 

the need for further ratification by 

Namibia, any further parliamentary 

action, or satisfaction of any additional 

domestic requirements of Namibia. 

Section 6.3 Inconsistencies 

In the event of any conflict or 

inconsistency between: 

(a) any annex to this Compact and any 

of Articles 1 through 7, such Articles 1 

through 7 will prevail; or 

(b) this Compact and any other 

agreement between the Parties regarding 

the Program, this Compact will prevail. 

Section 6.4 Governing Law 

This Compact is an international 

agreement and as such is governed by 

the principles of international law. 

Section 6.5 Additional Instruments 

Any reference to activities, obligations 

or rights undertaken or existing under or 

in furtherance of this Compact or 

similar language will include activities, 

obligations and rights undertaken by, 

existing under or in furtherance of any 

agreement, document or instrument 

related to this Compact and the 

Program. 

Section 6.6 References to MCC Web 

Site 

Any reference in this Compact, the 

PIA or any other agreement entered into 

in connection with this Compact, to a 

document or information available on, 

or notified by posting on the MCC Web 

site will be deemed a reference to such 

document or information as updated or 

substituted on the MCC Web site from 

time to time. 

Section 6.7 References to Laws, 

Regulations, Policies and Guidelines 

Each reference in this Compact, the 

PIA or any other agreement entered into 

in connection with this Compact, to a 

law, regulation, policy, guideline or 

similar document will be construed as 

a reference to such law, regulation, 

policy, guideline or similar document as 

it may, from time to time, be amended, 

revised, replaced, or extended and will 

include any law, regulation, policy, 

guideline or similar document issued 

under or otherwise applicable or related 

to such law, regulation, policy, 

guideline or similar document. 

Section 6.8 MCC Status 

MCC is a United States Government 

corporation acting on behalf of the 

United States Government in the 

implementation of this Compact. MCC 

and the United States Government have 

no liability under this Compact, the 

Program Implementation Agreement or 

any supplemental agreement, are 

immune from any action or proceeding 

arising under or relating to any of the 

foregoing documents, and Namibia 

hereby waives and releases all claims 

related to any such liability. In matters 

arising under or relating to this 

Compact, the Program Implementation 

Agreement, or any supplemental 

agreement, neither MCC nor the United 

States Government will be subject to the 

jurisdiction of the courts or any other 

body of Namibia. 

Article 7. Entry Into Force 

Section 7.1 Domestic Requirements 

Before this Compact enters into force, 

Namibia will take all necessary steps to 

ensure that immediately upon this 

Compact entering into force, (a) this 

Compact and the PIA and all of the 

provisions of this Compact and the PIA 

are valid and binding and are in full 

force and effect in Namibia, (b) this 

Compact, the PIA and any other 

agreement entered into in connection 

with this Compact to which Namibia 

and MCC are parties (if so stipulated 

therein) are international agreements, 

and (c) no laws of Namibia (other than 

the constitution of Namibia), whether 

now or hereafter in effect, will take 

precedence or prevail over the terms of 

this Compact or the PIA. 

Section 7.2 Conditions Precedent to 

Entry Into Force 

This Compact will not enter into force 

unless and until each of the following 

conditions have been satisfied: 

(a) The PIA must have been executed 

by the parties thereto and have become 

effective; 

(b) Namibia must have delivered to 

MCC: 

(i) A certificate signed and dated by 

the Principal Representative of Namibia, 

or such other duly authorized 

representative of Namibia acceptable to 

MCC, certifying that Namibia has 

satisfied the requirements of Section 

7.1; 

(ii) A legal opinion from the Attorney 

General of Namibia (or other entity 

acceptable to MCC), in form and 

substance satisfactory to MCC; and 

(iii) A certified copy of the Instrument 

of Ratification evidencing the 

ratification of this Compact by Namibia, 

which MCC may post on its Web site or 

otherwise make publicly available; and 

(c) MCC must determine that after 

signature of this Compact, Namibia has 

not engaged in any action or omission 

that is inconsistent with the eligibility 

criteria for MCC Funding. 

Section 7.3 Date of Entry Into Force 

This Compact will enter into force on 

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

in an exchange of letters between the 

Principal Representatives confirming 

that each Party has completed its 

domestic requirements for entry into 

force of this Compact and (b) the date 

that all conditions set forth in Section 

7.2 have been satisfied. 

Section 7.4 Compact Term 

This Compact will remain in force for 

five years after its entry into force, 

unless terminated earlier under Section 

5.1 (the ‘‘Compact Term’’). 

Section 7.5 Provisional Application 

Upon signature of this Compact and 

ratification by Namibia of this Compact 

and until it has entered into force in 

accordance with Section 7.3, the Parties 

will provisionally apply the terms of 

this Compact, provided that no MCC 

Funding, other than Compact 

Implementation Funding, will be made 

available or disbursed before this 

Compact enters into force. 

In Witness Whereof, the undersigned, 

duly authorized, have signed this 

Compact this 28th day of July, 2008. 

Done at Windhoek, Namibia. 

For Millennium Challenge 

Corporation, on behalf of the United 

States of America, Name: Rodney G. 

Bent, Title: Deputy Chief Executive 

Officer. 

For the Republic of Namibia, Name: 

Professor Peter H. Katjavivi, Title: 

Director-General, National Planning 

Commission. 

Annex I Program Description 

A. Program Overview 

This Annex I describes the Program 

that MCC Funding will support in 

Namibia during the Compact Term. 

1. Background and Consultative Process 

(a) Background. 

Namibia, a large and sparsely 

populated country on Africa’s 

southwest coast, has a population of 

approximately 2.1 million. It gained 

independence in 1990 after a century of 

foreign domination, including a period 

of half a century of apartheid. While the 

country has experienced steady 

economic growth since achieving 


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1According to the World Bank’s ‘‘International 

Bank for Reconstruction and Development Interim 

Strategy Note: An Engagement Framework for the 

Republic of Namibia for FY 08–09,’’ April 25, 2007, 

Namibia has experienced an average of 4.3 percent 

economic growth per annum. 

2 Ibid. 

3 Ibid. 

4According to International Monetary Fund 

report (‘‘Namibia: 2007 Article IV Consultation—

Staff Report; Public Information Notice on the 

Executive Board Discussion; and Statement by the 

Executive Director for Namibia,’’ February 2008), 

Namibia has the second highest Gini coefficient in 

the world at 0.64. 

5http://www.unicef.org/infobycountry/ 

namibia_statistics.html. 

6Launched by H.E. President Sam Nujoma, in 

June 2004, Vision 2030 is the Government’s longterm national strategy for development ending in 

the year 2030. 

7Figures in this section refer to MCC’s economic 

and beneficiary analysis for a period of 20 years and 

refer to direct and indirect beneficiaries. 

independence,1 as a consequence of its 

history, approximately 27 percent 2 of 

its population lives in poverty 

(particularly in the northern communal 

areas or ‘‘NCAs’’), and in 2006 its per 

capita income was just US$3,000.3

Additionally, the distribution of wealth 

and income within the country is highly 

unequal.4 Unemployment is high 

(approximately 30 percent in 2006) and 

the HIV prevalence rate is more than 19 

percent.5 Despite facing such seemingly 

daunting obstacles to improving its 

social and economic conditions, 

Namibia is committed to providing 

equal opportunity to previously 

disadvantaged populations, while 

maintaining political and economic 

stability. 

The Compact Goal is to reduce 

poverty through economic growth in 

Namibia. One of the ways to achieve 

such poverty reduction in Namibia is to 

create a skilled and educated labor 

force. Another way is to expand and 

diversify the economy’s export base, 

which is currently narrowly focused on 

mineral commodities, by supporting 

sectors such as livestock, indigenous 

natural products and tourism. The 

Program will focus on improving the 

quality of education and training for 

underserved populations, and attempt 

to capitalize on Namibia’s comparative 

advantages, namely large areas of semiarid communal land suitable for 

livestock grazing, natural products 

indigenous to Namibia, and diverse 

wildlife and unique landscapes ideal for 

ecotourism. This approach is expected 

to have the greatest impact on 

alleviating poverty. 

(b) Consultative Process. 

In connection with its proposal for 

this Compact, Namibia undertook an 

extensive consultative process. Namibia 

held consultations in all 13 regions of 

the country and began national level 

consultations in mid-2006, which have 

been on-going particularly in those 

sectors that the Program will support. 

Participating stakeholders included 

government officials at central and 

regional levels, local authority 

councilors and stakeholders, regional 

coordination committees, regional AIDS 

committees, regional emergency units, 

communal land boards (‘‘CLBs’’), 

farmers’ associations, conservancy 

groups, women’s associations, church 

groups, youth groups, vulnerable 

members of society, non-governmental 

organizations (NGOs), community based 

organizations, and the private sector. 

Worthy of note is the fact that the 

consultative process did not reveal a 

major divergence between the issues 

identified at national and regional 

levels. This appears to confirm that, in 

general, there is consensus within 

Namibia on priorities for economic 

growth. This consensus was built on 

previous consultative processes for 

Vision 2030,6 the 5-year National 

Development Plans, Participatory 

Poverty Assessments and other sectorlevel consultations. MCA-Namibia, in 

close consultation and cooperation with 

the stakeholders for each of the 

Program’s components, will continue to 

consult and inform Namibians countrywide on this Compact to ensure broadbased understanding, appreciation, 

commitment, and ownership of the 

proposed investments. 

2. Description of Program and 

Beneficiaries 7

The Program, whose objective is to 

increase the knowledge, skills and 

competence of the Namibian workforce, 

and to increase the productivity of 

agricultural and non-agricultural 

enterprises in communal areas, consists 

of three Projects: the Education Project, 

the Tourism Project and the Agriculture 

Project. Each Project (the details of 

which are set forth below) is designed 

to help address Namibia’s constraints to 

economic growth and lead to 

sustainable poverty reduction. 

Specifically, the Education Project aims 

to increase skilled labor by helping to 

create a more efficient and effective 

educational system that will benefit 

approximately 1,000,000 young people, 

and ultimately increase employment 

opportunities. The Tourism Project will 

stimulate investment and income 

generation in poor, rural communities 

through increasing the income for an 

estimated 23,000 tourism-related 

employees and benefitting over 100,000 

individuals living in conservancies. 

Lastly, the Agriculture Project will 

improve productivity in the livestock 

and INP sectors, and contribute to 

enhanced household incomes for over 

400,000 Namibians. 

Specific anticipated results of the 

Program over a twenty-year period 

include: 

(a) A higher quality of education for 

approximately one million primary and 

secondary school learners across 

Namibia from an improved delivery 

system for textbooks; 

(b) Access to financing for tertiary 

education for at least 60 percent of all 

qualifying applicants demonstrating 

financial need; 

(c) Training of up to 49,000 lowincome individuals who are either 

unemployed and/or unskilled at the 

Community Skills and Development 

Centers (‘‘COSDECs’’); 

(d) Training in the tourism sector for 

more than 2,600 additional trainees and 

training in other high-priority 

vocational areas (to be further 

indentified) for additional students 

under an improved capacity for marketrelevant training in the competitive 

grants program; 

(e) A higher quality of education for 

approximately 41,700 students, 

primarily in rural communities, and 

which is expected to result in higher 

lifetime income for these students due 

to the proposed investments in the 

targeted primary and secondary schools; 

(f) An increase in tourism by an 

estimated 4,000 additional overseas 

tourists per year as a result of marketing 

activities, resulting in an incremental 

present added value by these tourists of 

approximately US$7 million; 

(g) Increased employment income for 

over 7,000 individuals due to enhanced 

investment in conservancies; 

(h) Increased tourism visits and value 

added to the Namibian economy 

resulting from investments in Etosha 

National Park; 

(i) Either increased employment, 

wages or household income for an 

estimated 23,000 people as a result of 

the Tourism Project; 

(j) Improved market efficiency, 

improved land tenure security, and 

more equitable access to land 

benefitting over 130,000 individuals; 

(k) Increased income to approximately 

1,800 farmers across 50 communities 

due to the rangeland management 

component; and 

(l) Increased incomes for over 15,000 

households as a result of the Indigenous 

Natural Products (‘‘INP’’) component of 

the Agriculture Project. 

3. Environmental and Social 

Accountability 

All of the Projects will be 

implemented in compliance with the 


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MCC Environmental Guidelines, MCC’s 

guidance on the integration of gender in 

Program implementation delivered by 

MCC to Namibia or posted on the MCC 

Web site (the ‘‘MCC Gender Policy’’) and 

the World Bank’s Operational Policy on 

Involuntary Resettlement in effect as of 

July 2007 (‘‘OP 4.12’’). Namibia will also 

ensure that the Projects comply with all 

national environmental laws and 

regulations, licenses and permits, except 

to the extent such compliance would be 

inconsistent with this Compact. 

Namibia will: (a) Undertake and 

complete any strategic environmental 

(and social) assessments (‘‘SEA’’), 

environmental impact assessments 

(‘‘EIA’’), environmental assessments 

(‘‘EA’’), environmental management 

plans (‘‘EMP’’) and resettlement action 

plans (‘‘RAP’’), in form and substance 

satisfactory to MCC, and as required 

under the laws of Namibia, the MCC 

Environmental Guidelines, this 

Compact, the Program Implementation 

Agreement or other supplement 

agreement or as otherwise required by 

MCC; (b) implement to MCC’s 

satisfaction environmental and social 

mitigation measures identified in such 

assessments or plans; and (c) commit to 

fund environmental mitigation, 

(including costs of resettlement) in 

excess of MCC Funding not specifically 

provided for in the budget for any 

Project. 

Description of Projects 

Set forth below is a description of 

each of the Projects that Namibia will 

implement, or cause to be implemented, 

using MCC Funding to advance the 

applicable Project Objective. In 

addition, specific activities that will be 

undertaken within each Project (each, 

an ‘‘Activity’’), including sub-activities, 

are also described. 

B. Education Project 

1. Summary of Project and Activities 

MCC Funding will be used to improve 

the effectiveness, efficiency and quality 

of Namibia’s education sector through 

systemic reforms and critical near-term 

interventions that are consistent with 

the objectives of Namibia’s ETSIP 

Program (the ‘‘Education Project’’). 

ETSIP is Namibia’s 15-year sector-wide 

Education and Training Sector 

Improvement Program, whose mission 

is to create a knowledge-based economy 

through increasing the effectiveness, 

efficiency and quality of Namibia’s 

education and training system. 

Specifically, MCC Funding will support 

key gaps within ETSIP, as well as fund 

complementary measures, such as 

institutional strengthening, policy 

reform and targeted technical assistance 

to ensure sustainable results. 

The Activities that will be undertaken 

in furtherance of the Education Project 

are: 

(a) Improving the Quality of 

Education (the ‘‘Education Quality 

Activity’’): This Activity involves the 

rehabilitation and renovation of 

infrastructure (including teacher 

housing) and equipment in 

approximately 47 primary and 

secondary schools, and the funding of 

training programs for school 

administrators and teachers. 

Additionally, this Activity includes 

funding for policy-relevant studies and 

improvements in science and computer 

training facilities at teacher training 

colleges. To reinforce Activity 

outcomes, Namibia will implement 

teacher education reform guidelines. 

(b) Improving Vocational and Skills 

Training (the ‘‘Vocational and Skills 

Training Activity’’): With MCC Funding, 

the Vocational and Skills Training 

Activity will assist with the 

establishment of a National Training 

Fund (‘‘NTF’’) within the Namibia 

Training Authority (‘‘NTA’’). MCC 

Funding will be used for the provision 

of technical assistance for the NTF and 

the creation of a training levy system 

that will sustain the NTF in the future. 

MCC Funding will also support priority 

vocational and skills training areas 

(including but not limited to tourism) 

selected under criteria developed by the 

NTA, which criteria will be employed 

through a competitive grants program to 

be implemented under this Activity. 

Namibia and MCA-Namibia commit to 

achieving satisfactory progress during 

the implementation of MCC supported 

training toward the effective operation 

of the NTF, which will include: 

possessing a proper governance 

structure (including the appointment of 

the NTA Board and the standing 

councils and committees), the adoption 

of selection criteria for the award of 

grants, the creation and implementation 

of the final sustainable levy structure, 

and the deployment of NTF funding so 

that public entities will not be 

privileged to the detriment of funding 

for private entities engaged in training. 

Finally, the NTF will operate on a 

sustainable basis and provide funding 

on a needs basis. MCC Funding will also 

be utilized (a) for the construction or 

renovation of approximately nine 

COSDECs, and (b) to support efforts so 

that the private-training industry 

responds to the training demands of 

Namibia’s market economy. 

(c) Improving Access to and 

Management of Textbooks (the 

‘‘Textbook Activity’’): This Activity will 

focus on expanding access to and 

improving the distribution and 

management of textbooks within 

primary and secondary schools through 

operational support and reforms in the 

textbook acquisition process designed to 

make the process more transparent and 

competitive. This Activity will include 

funding for the acquisition of science, 

math and English textbooks for grades 

5—12 on a national level and improving 

classroom use of textbooks. These 

acquisitions will be conducted in two 

phases. The first phase will fill actual 

gaps as determined by a textbook 

baseline study. The second phase will 

support a pilot procurement program 

aimed at improving textbook acquisition 

once MCC is satisfied that the 

supporting documentation 

(implementation plan for the 2008 

Textbook Policy) is complied with such 

that there is a greater transparency and 

accountability in the acquisition, 

distribution and storage of textbooks. A 

system for monitoring textbook supply 

and demand will also be implemented. 

(d) Investing in Regional Study and 

Resource Centers (the ‘‘RSRC Activity’’): 

This Activity will fund the construction 

of approximately three regional study 

and resource centers (‘‘RSRCs’’) in 

underserved areas that will improve 

community access to documentation, 

information resources, training 

materials and programs, as well as study 

facilities. Additionally, technical 

assistance and training will be provided 

for RSRC staff. Namibia will ensure that 

the MCC constructed RSRCs will offer 

expanded hours of operation with both 

day and evening hours as provided for 

by the 1997 ‘‘Information for SelfReliance and Development: A Policy 

Framework for Libraries and Allied 

Information Agencies for Namibia.’’

These extra hours will meet the needs 

of both students and individuals that 

work during the day. 

(e) Expanding and Improving Access 

to, Equity, and Sustainability of Tertiary 

Education Finance (the ‘‘Tertiary 

Education Finance Activity’’): This 

Activity’s focus is expanding access to 

tertiary finance. This will be achieved 

by providing technical assistance to the 

Ministry of Education (‘‘MoE’’) to 

support its efforts to establish a 

sustainable and widely accessible 

tertiary and technical education finance 

system, including, inter alia, improved 

loan and recovery rates and targeting of 

financing subsidies to those in need. 

(f) Cross-Project Support: To further 

support the Activities of this Project, 

MCC Funding will also be used to 

strengthen the HIV/AIDS program 

within the MoE HIV/AIDS Management 

Unit, including development of HIV/ 


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8Figures in this section are based on MCC’s 

economic and beneficiary analysis and are over a 

20-year period. 

9No environmental or social assessment or 

management planning is required under MCC’s 

Environmental Guidelines for the Textbook Activity 

or the Tertiary Education Finance Activity. 

AIDS awareness and prevention plans 

related to construction activities. 

2. Beneficiaries 8

Beneficiaries of the Education Quality 

Activity are primarily students of the 

target schools, where 47 percent of 

beneficiary students are estimated to 

live in households with consumption of 

less than US$2 per day per person. The 

target schools currently enroll 

approximately 18,400 students. Over the 

course of 20 years, the schools will 

educate an estimated 41,700 primary 

and secondary students. In addition, 

roughly a third of the teachers at the 47 

schools receiving teacher housing will 

realize a marked improvement in living 

conditions. Overall, males and females 

will be exposed to the new schools in 

equal proportion. Namibia has generally 

achieved gender parity within its school 

system, although there are some 

differences between regions and some 

school phases. 

Based on MCA–N forecasts, the 

RSRCs would serve at least 8,000 

individuals a year (about 10 percent of 

population of the towns where the 

centers are located). There are over 

120,000 learners within regional reach 

of the centers who could benefit from 

the mobile services provided from the 

centers and from visits to the centers. 

These centers will be located in the 

principal towns of relatively poor and 

under-served regions. 

Beneficiaries of the COSDECs tend to 

be unskilled and/or unemployed 

individuals, and program benefits are 

projected to benefit up to 2,800 COSDEC 

trainees per year (or 49,000 over 20 

years). 

The Textbook Activity will benefit the 

poorer segments of the student 

population. The current need for 

textbooks is relatively higher at schools 

in poor communities, since wealthier 

communities tend to have betterfinanced and resourced schools. 

The Tertiary Education Finance 

Activity will help Namibia to achieve a 

reduction in defaults and an increase in 

the number of qualified but 

disadvantaged individuals accessing 

loans and obtaining tertiary education. 

The assistance will enable better 

targeting of public funds to the most 

disadvantaged students, rather than 

those with the ability to pay. Better cost 

recovery will also allow reduced direct 

public spending on tertiary education 

loans. 

3. Sustainability 

In acknowledgement of the financial 

commitment required to address 

essential maintenance needs of general 

schools, the MoE has embarked on a 

major program of periodic maintenance 

and renovations for these schools. A 

2005 MoE policy directive has 

stipulated that 25 percent of its 

development budget is set aside each 

year for maintenance (instead of 

spending that portion on new 

construction), which is significantly 

above the Ministry of Works 

recommended allocation of 5 percent. 

Further, through ETSIP funds, MoE has 

committed to allocating a set percentage 

towards school hostel maintenance. 

At the local level, the MoE has also 

initiated a pilot program of funding 

individual ‘‘School Development 

Funds’’ on a revolving basis, which 

currently reaches an estimated 150 

schools (or nearly 10 percent of the 

school network). This program involves 

delegation of authority to schools to 

undertake minor repairs, as a means of 

removing responsibility for such 

activities from the Regional Education 

and Ministry of Works’ offices. To 

support effective use of the School 

Development Funds, the MoE has begun 

to require that each school prepare and 

submit three-year rolling maintenance 

plans. 

Additionally, in light of the increasing 

expenditures for utilities at the school 

level, the MoE has begun to further 

involve school principals in the flow of 

information regarding costs and billing, 

and has also introduced pilot programs 

in which schools are assuming greater 

responsibility for certain recurring 

expenses. 

In establishing ETSIP, Namibia has 

demonstrated a commitment to 

undertaking substantial policy and 

institutional changes to catalyze key 

improvements in the quality of 

Namibian education. Specifically, 

Namibia has supported the efforts of the 

MoE to develop and implement new 

policies, procedures, and guidelines 

affecting the delivery of pre-primary to 

secondary education. Prominent 

institutional changes that are being 

enacted by MoE are presented below. In 

addition, to provide further support to 

the MoE in their long-term reform 

efforts, the MCC will fund targeted 

training and technical assistance with 

key institutional changes and policy 

implementation processes. 

4. Environmental and Social Mitigation 

Measures 

The Education Project is categorized 

under MCC’s Environmental Guidelines 

as a Category B Project due to the 

environmental and social impacts that 

will result from certain activities.9 EAs 

and EMPs will be developed to assess 

the environmental and social impacts of 

the construction activities within the 

Education Quality, Vocational and 

Skills Training, and RSRCs Activities. 

Any resettlement impacts resulting from 

the Education Project will be identified 

and documented in compliance with OP 

4.12. 

The Education Quality Activity will 

include the implementation of a general 

hygiene program at schools, which will 

be implemented by MoE. Furthermore, 

under the Education Quality Activity, 

disability access will be provided at the 

47 general schools, which will reinforce 

the existing MoE requirement for 

disability access in all new school 

buildings. The Education Quality 

Activity will also benefit vulnerable 

groups in Namibia, such as the San 

people. 

The MoE HIV/AIDS Management Unit 

(‘‘HAMU’’) will receive targeted 

management strengthening support, 

which will include activities intended 

to mainstream HIV/AIDS education and 

training across all MoE directorates, 

associated institutions, and planning 

activities. The technical advisor 

working with HAMU will also develop 

and implement HIV/AIDS awareness 

and prevention plans for school 

populations and communities where 

each educational facility is located for 

the Education Quality, Vocational and 

Skills Training, and RSRCs Activities. 

5. Donor Coordination 

The first phase for the 

implementation of ETSIP (2006–2013) 

has been programmed in detail. 

Through ETSIP, Namibia coordinates 

donors to participate in a sector-wide 

program mainly through budget support 

and extra-budgetary support, and the 

Activities of the Education Project are 

drawn from this program. Namibia’s 

pledged contribution to this plan 

includes US$162 million over 2006–

2020, or approximately US$13 million 

annually. 

The Education Project will focus on 

certain aspects within ETSIP in order to 

complement the implementation of the 

overall sector program, and MCC has 

coordinated closely with the lead 

development partners in this effort, 

namely the World Bank and EU. With 

respect to other ETSIP development 

partners (who fund major projects rather 


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than provide general budget support), 

MCC has discussed project activities 

with USAID, PEPFAR, Finland, 

Sweden, Norway, KfW of Germany, and 

Luxembourg. For the NTF, MCC is 

cooperating specifically with the 

Luxembourg Development Agency. 

6. USAID 

As a member of ETSIP, MCC and 

MCA-Namibia have had ongoing 

discussions with USAID in the 

development of this Compact. 

7. Policy, Legal and Regulatory Reforms 

As noted above, Namibia’s 

establishment of a fifteen-year national 

reform program for the education sector 

demonstrates a commitment to 

undertake substantial policy and 

institutional changes to catalyze key 

improvements in the quality of 

Namibian education and skills 

development. Specifically, Namibia has 

supported the efforts of the MoE to 

develop and implement new policies, 

procedures, and guidelines affecting the 

delivery of primary to secondary 

education. In addition, to provide 

further support to the MoE in their longterm reform efforts, MCC Funding will 

support targeted training and technical 

assistance with key institutional 

changes and policy implementation 

processes. 

With respect to sector-specific policy 

reform commitments, Namibia has made 

several notable advancements in 

education, encompassing: 

• Enactment of the National Training 

Fund within the NTA under the 

Vocational Education and Training 

(‘‘VET’’) Act of 2008; 

• Establishing and staffing the NTA 

as provided for in the VET Act; 

• Approval of a new National 

Textbook Policy and implementation 

plan for primary and secondary schools 

(2008); and 

• Adoption of policies concerning the 

Colleges of Education to allow for their 

semi-autonomy and introduction of 

performance-based contracts. 

In addition, Namibia will implement 

reforms at the teacher training colleges 

aimed at: (a) Improving and adapting 

curriculum; (b) setting fees and charges; 

(c) establishing policies and procedures 

to raise outside funds; (d) setting 

admissions standards; (e) improving 

screening of teacher applicants; and (f) 

improving management and 

maintenance of facilities. 

C. Tourism Project 

1. Summary of Project and Activities 

Consistent with Namibia’s national 

development strategies and in support 

of reform efforts already underway, 

MCC Funding will support three 

priority Activities in the tourism sector 

(the ‘‘Tourism Project’’): (a) Improve the 

management and infrastructure of 

Etosha National Park (‘‘ENP’’); (b) 

enhance the marketing of Namibian 

tourism; and, (c) develop the capacity of 

communal conservancies to attract 

investments in ecotourism and capture 

a greater share of the revenue generated 

by tourism in Namibia. Together, these 

Activities will generate income and 

create employment opportunities for 

some of the poorest populations in 

Namibia, while conserving the natural 

resources that serve as the foundation 

for the tourism industry. 

The Activities that will be undertaken 

in furtherance of the Tourism Project 

are: 

(a) Improved Management and 

Infrastructure of Etosha National Park 

(the ‘‘ENP Activity’’): This Activity aims 

to improve the management capacity of 

ENP, promote private sector investment 

in and around Namibia’s national parks, 

increase tourism revenue nationally, 

and benefit rural communal 

conservancies. Achieving these goals 

requires improving budget control and 

management of the park and increasing 

private sector investment in jointventure lodges around ENP and jointventure lodges and services within and 

near other national parks, among other 

things (collectively, the ‘‘Performance 

Targets’’). MCC Funding will support 

technical assistance in support of 

improved management and a study of 

tourism carrying capacity and potential 

tourism investments in and around ENP 

and other national parks in the north, as 

well as investments in infrastructure for 

management centers and staff housing, 

road building and maintenance and the 

purchase of game translocation 

equipment. 

(b) Marketing Namibian Tourism (the 

‘‘Marketing Activity’’): The Marketing 

Activity’s aim is to increase tourist 

arrivals to Namibia by expanding 

marketing to North American tourists, 

developing and marketing local and 

regional tourism route packages, and 

developing a fully interactive Web site. 

The development and marketing of local 

and regional tourism route packages 

will focus on conservancy sites with the 

explicit aim of directing anticipated 

increases in tourism visitors to 

communal areas. MCC Funding will 

provide financing to support these 

goals. 

(c) Ecotourism Development in 

Conservancies (the ‘‘Conservancy 

Support Activity’’): MCC Funding under 

this Activity will assist Namibia in 

building conservancy capacity to protect 

its natural resources, attract investment, 

and achieve financial sustainability so 

that households in communal 

conservancy areas (or conservancies) 

can receive a greater share of revenues. 

Based on individual conservancy needs 

and demands, the Activity will provide 

a range of technical assistance services 

and grant funding to approximately 31 

high-tourism potential conservancies. 

Such assistance and funding will help 

to mitigate existing barriers to tourism 

enterprise investment and help render 

the conservancies financially selfsustainable. In addition, grant funding 

to promote joint-venture tourism 

enterprises between conservancies and 

the private sector will be provided to a 

subset of approximately 15 of the 31 

conservancies. 

2. Beneficiaries 

The main benefits of the Tourism 

Project accrue through increased 

tourism visits and value added to the 

Namibian economy. It is estimated that 

the Marketing Activity will result in an 

additional 4,000 tourists per year on 

average, which translates into an 

incremental (present) value added by 

overseas tourists of approximately US$7 

million (MCC calculations based on data 

provided by National Tourism Board 

and 2004 parks valuation study by 

Turpie et al. 2004). 

The distribution of benefits will track 

the general distribution of income in 

Namibia, meaning approximately 23 

percent of benefits will accrue to the 

poor (source: MET July 2006). Primary 

benefit streams of this Project include 

increased employment income, 

conservancy income (to be reinvested or 

distributed to members), profits to joint 

venture partners, and increased wildlife 

populations. There are 118,000 

residents within the approximate 31 

conservancies targeted for support. A 

projected 7,000 individuals are to enjoy 

significantly higher income as a result of 

full and part time employment 

generated through this Project (MCC 

projection based upon 2007 

conservancy data). The other 111,000 

conservancy residents are expected to 

receive benefits through small 

dividends or community-sponsored 

projects. 

3. Sustainability 

In 2007 Etosha National Park earned 

revenues of approximately US$3 

million, mostly generated through daily 

usage fees collected at entry gates. This 

revenue goes directly to the Ministry of 

Finance (‘‘MoF’’) which then allocates 

approximately US$2.25 million back to 

the park to cover operating costs. MoF 

retains about US$100,000 with the 


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remaining US$650,000 going into a 

collective Game Products Trust Fund 

available to the national parks network. 

ENP is currently allocating a 

disproportionately high percentage of its 

total operating budget to staff and 

transport costs. The Tourism Project 

will assist ENP in achieving a more 

balanced budget through growth in park 

visitors, an increase in park usage fees, 

and concessions awarded to the private 

sector. In addition, delegating more 

authority to ENP to manage its own 

budget should increase revenue and 

productivity. Further, use of MCC 

Funding for the ENP Activity will be 

contingent upon meeting the applicable 

performance targets which include the 

development of an integrated master 

plan for maintenance of all 

infrastructure and equipment within 

ENP and demonstration of sufficient 

budget to implement the plan. 

The NTB receives an annual budget 

allocation of approximately US$3.5 

million and an additional US$1.5 

million in revenue collected through a 

2 percent bed night levy charged for all 

overnight stays in hotels or lodges. The 

Tourism Project, which is expected to 

increase tourist arrivals through 

enhanced tourism marketing, will likely 

result in an increase of revenue to NTB 

as bed night levies increase. 

Financial sustainability of 

conservancies is a primary objective of 

this Project as it will aim to develop the 

capacity of conservancies to attract 

private sector investment and receive a 

greater share of the tourism generated 

revenues. In 2007, benefits amounted to 

more than US$1.68 million in gross 

revenues and US$1.26 million in wage 

income, 66 percent of which were 

directly derived from tourism 

enterprises and represent a substantial 

increase in the period since 1994. 

4. Environmental and Social Mitigation 

Measures 

The Tourism Project is categorized 

under MCC’s Environmental Guidelines 

as a Category A project due to potential 

site-specific environmental and social 

impacts in sensitive areas anticipated 

from the construction of management 

centers in fragile ecosystems and in an 

area that is the traditional homeland to 

vulnerable ethnic groups. Tourism 

activities supported by the independent 

fund established under the Conservancy 

Support Activity will be classified as a 

Category D Activity under MCC’s 

Environmental Guidelines. 

To ensure the environmental 

sustainability of the Tourism Project 

and mitigate any environmental and 

social impacts, an (EIA) and site-specific 

EMP will be developed for the 

construction and rehabilitation of 

management centers in ENP. EMPs will 

include actions to limit or mitigate 

impacts of construction on fragile 

ecosystems within ENP, ensure proper 

waste management, and prevent the 

spread of invasive species. HIV/AIDS 

awareness and prevention programs for 

ENP staff and construction contractors 

will also be developed and 

implemented. Any resettlement impacts 

resulting from the Tourism Project will 

be identified and documented in 

compliance with OP 4.12. MET will 

provide alternative housing for the 

indigenous San peoples at Governmentfunded official park employee housing 

sites or on lands transferred to the San 

prior to any eviction and/or demolition 

of their existing housing at Okakuejo. 

Transportation to the primary school at 

Ombika will be provided for the 

children of ENP staff living at Okakuejo. 

MCC Funding that supports grants to 

conservancies will comply with MCC’s 

Environmental Guidelines. 

Additionally, signed contracts between 

communal conservancies and investors 

will include benefits sharing and 

employment guarantees. Periodic and 

random audits of the performance of a 

subset of grant funding recipients will 

be conducted to ensure compliance with 

both MCC Environmental Guidelines 

and Namibian environmental 

requirements. Furthermore, targeted 

training to ensure that women and 

vulnerable groups have access to 

revenue-generating opportunities will 

be included as part of the overall 

Conservancy Support Activity. 

Disbursement of grant funds for wildlife 

relocation or joint venture activities on 

conservancy or national park lands and 

all activities supported by these funds 

shall comply with MCC’s 

Environmental Guidelines, whose terms 

shall also be included in any manual 

produced for the distribution of such 

grant funds. 

5. Donor Coordination 

Multiple donors, most notably KfW, 

GTZ and UNDP have provided technical 

assistance and funding for the 

infrastructure and capacity building 

needs of the national parks. UNDP 

through its ‘‘Strengthening the Protected 

Areas Network’’ (‘‘SPAN’’) Project, aims 

to improve management effectiveness of 

Namibia’s national system of protected 

areas and includes the development of 

the new Concession Policy (approved by 

Namibia in 2007), support to make this 

policy operational and support for 

financial transformation of park 

management. These activities will 

complement efforts to support and 

accelerate management reform of ENP. 

MCC’s technical assessment of the staff 

housing centers was based on concept 

designs funded by UNDP. MCANamibia will coordinate efforts with 

UNDP’s SPAN Project and will work 

with MET to implement the ENP 

Activity. 

Multiple donors over the past ten 

years have provided technical assistance 

to conservancies in building 

governance, sustainable natural resource 

management, and tourism potential of 

existing and newly-formed 

conservancies. The most important 

donor assistance has come from USAID 

(through the recently completed LIFE–

PLUS Project); the World Wildlife Fund 

for Nature; the Swedish International 

Development Agency (SIDA); 

Department for International 

Development (DFID); Danish 

International Development Agency 

(DANIDA); and the World Bank 

(through the Integrated CommunityBased Ecosystem Management (ICEMA) 

Project). The Conservancy Support 

Activity will build on this previous 

work and benefit from the capacity and 

experience that has been developed. 

This Activity will also support joint 

ventures on conservancies 

complementing current efforts by the 

ICEMA Project. 

6. USAID 

USAID has been a key donor in 

community-based natural resources 

management programs in Namibia. This 

Compact will build on the USAIDfunded LIFE PLUS project which 

includes a focus on conservancy 

support. 

7. Policy, Legal and Regulatory Reforms 

The Tourism Project aims to support 

and accelerate MET reforms in the 

management of Namibia’s national park 

system. A portion of MCC Funding to 

support the ENP Activity will be 

contingent on meeting the applicable 

performance targets, which focus on 

management reforms of ENP in order to 

improve management. The Tourism 

Project will also provide technical 

assistance to support MET’s efforts to 

meet these performance targets. 

Namibia recently passed legislation to 

increase the bed night levy to 2 percent, 

which creates a sustainable mechanism 

for continued funding to NTB, 

especially as tourist arrivals grow. As 

tourism in Namibia grows, the returns 

from investments by the private sector 

will also grow and allow the private 

sector to play a greater role in marketing 

Namibian tourism products. 

To facilitate implementation of the 

Conservancy Support Activity, Namibia 

will expedite the consideration and 


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approval of leasehold applications 

submitted by conservancies under this 

Activity. 

With respect to sector-specific policy 

reform commitments, Namibia has made 

several recent notable advancements in 

tourism, encompassing: 

• Adoption of the Ministry of 

Environment and Tourism’s Strategic 

Plan that establishes objectives and 

targets for the tourism sector in 

Namibia; 

• Adoption of Etosha National Park 

Management Plan and Business Plan 

that establishes objectives and targets 

for ENP; 

• Passage of the Environmental 

Management Bill into law establishing 

mandatory environmental review and 

mitigation procedures in Namibia 

(2007); and 

• Policy on Tourism and Wildlife 

Concessions on State Land (2007). 

D. Agriculture Project 

1. Summary of Project and Activities 

MCC Funding will support 

investments aimed at achieving a 

sustainable increase in the economic 

performance of the agricultural sector 

(the ‘‘Agriculture Project’’). Included in 

this Project are Activities that 

strengthen the land tenure system in the 

NCAs, introduce improved rangeland 

management practices, and strengthen 

animal health services, regulatory 

capacity, and livestock marketing 

efficiencies, all of which are expected to 

increase productivity and profitability 

of livestock production and sale. In 

addition, the Project will increase the 

volume, quality and value-added of 

INPs for export to regional and 

international markets. 

The Activities to be undertaken in 

furtherance of the Agriculture Project 

are: 

(a) Land Access and Management 

(‘‘Land Access and Management 

Activity’’): This Activity includes two 

sub-activities, one which focuses on 

improving the communal land regime 

(the ‘‘Communal Land Support 

Activity’’) and the second which focuses 

on introducing effective communitybased rangeland management practices 

(the ‘‘CBLRM Activity’’). 

Under the Communal Land Support 

Activity, MCC will fund: a 

comprehensive public awareness and 

outreach campaign to educate the public 

regarding their land rights; the 

streamlining of administrative 

procedures; a systematic verification 

and registration process that will result 

in the formalization of land rights in the 

NCAs; and capacity building for 

Communal Land Boards and other land 

administration institutions. 

The CBLRM Activity aims to improve 

livestock quality and value by 

supporting training in community-based 

management of rangeland resources, 

herd management, and business 

management skills, including specific 

outreach to women in small ruminant 

production and marketing, among 

participating communities. In addition, 

these communities will be eligible to 

receive limited rangeland management 

infrastructure (e.g. water points, kraals) 

to support community rangeland 

management plans. 

(b) Livestock Support (the ‘‘Livestock 

Support Activity’’): This Activity 

involves: (i) Construction of 

approximately five veterinary centers in 

the NCA and underserved areas, and 

rehabilitation of two quarantine camps 

in the Caprivi region; (ii) 

implementation of a traceability system 

to better meet the food safety 

requirements in local and external 

markets; and (iii) establishment of a 

fund to invest in post-farmgate 

improvements fostering greater 

efficiencies in livestock marketing, 

transport, and quarantine (the 

‘‘Livestock Market Efficiency Fund’’). 

The Livestock Market Efficiency Fund 

will also focus on diversifying market 

opportunities, including sanitary 

regulatory capacity building in the NCA. 

An operations manual will be 

developed by MCA-Namibia, and 

approved by MCC, which defines 

procedures, eligibility and selection 

criteria for the Livestock Market 

Efficiency Fund. 

(c) Indigenous Natural Products (the 

‘‘INP Activity’’): The INP Activity’s goal 

is to increase the volume, quality, and 

value addition of the natural products 

that Primary Producer Organizations 

(‘‘PPOs’’) collect and harvest, and to 

advance their operational and business 

capacity. In addition, this Activity will 

improve market information to PPO’s, 

provide capacity building for the 

Indigenous Plant Task Team (‘‘IPTT’’) 

and support the formulation of 

regulations, policies and 

implementation plans to ensure the 

protection of indigenous knowledge. 

MCA-Namibia will develop, subject to 

MCC approval, a grants-making manual 

that will guide the review, selection and 

approval process of grants to PPOs. This 

Activity includes a fund to support 

research, testing and application of new 

innovations and services critical to the 

INP industry’s immediate, short-term 

and long-term competitiveness (the 

‘‘INP Innovation Fund’’). MCA-Namibia 

will develop, subject to MCC approval, 

an operations manual to guide the 

management of the INP Innovation 

Fund. 

2. Beneficiaries 

Direct and indirect beneficiaries of the 

Livestock Support and the Communal 

Land Support Activities are estimated at 

135,000. In addition, over 24,000 

households will benefit from improved 

veterinary services, and an estimated 

1,800 households across 50 

communities are anticipated to benefit 

from the rangeland management 

program. 

The INP Activity is expected to 

increase income for up to 15,000 

primary producers, a majority of whom 

are poor and female and for whom small 

increases in cash income are important 

supplementary household income for 

up to 75,000 individuals. 

3. Sustainability 

The Land Access and Management 

Activity will directly support 

sustainability through the strengthening 

of structures and systems of land-related 

institutions that expedite land 

management processes at various levels 

of government. This includes access to 

basic information in the form of spatial 

data, topographic maps, and integrated 

information systems on land holdings 

that assist in decision-making, planning, 

and maintenance of proper registers of 

land rights. The institutional 

sustainability of the Communal Land 

Support Activity will depend upon the 

allocation of sufficient budgetary 

provisions and technically-skilled staff 

to the CLBs in the NCAs. 

The veterinary service centers that 

will be constructed as part of the 

Livestock Support Activity are a public 

good which Namibia is committed to 

fully fund in terms of staff and 

operational costs. The Ministry of 

Agriculture’s five-year budget plan 

provides for the financial needs of these 

five centers. 

After the initial MCC-funded tagging 

exercise, the Livestock Traceability 

System will be a shared public-private 

cost whereby the GRN and cattle owners 

cover the costs of tags and operations of 

the information system. The GRN will 

cover the costs associated with 

information entry into the traceability 

database. 

The sustainability of the Livestock 

Market Efficiency Improvement subactivity will be achieved primarily by 

attracting and supporting successful 

private sector solutions. Some of these 

may not be sustained in the long term, 

but represent short-term measures that 

create incentives for farmers to 

overcome post-farmgate costs/losses. 

Potential long-term solutions include 

the establishment of more strategic 

market infrastructure in conjunction 


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with the private sector and/or public 

sector. 

The sustainability of the INP Activity 

is enhanced by the business capacities 

that are developed among the PPO 

clients, SME processors, traders, IPTT 

and the linkages they make with global 

buyers of raw, semi-processed and 

finished INPs. Significant economic 

growth opportunities for the Namibian 

INP industry have been documented by 

both researchers and private firms. 

4. Environmental and Social Mitigation 

Measures 

The Agriculture Project is categorized 

under MCC’s Environmental Guidelines 

as a Category B Project due to potential 

site-specific environmental and social 

impacts anticipated to result from land 

use management decisions, the 

construction and operation of veterinary 

centers and rehabilitation of quarantine 

camps. The Livestock Market Efficiency 

Fund, which involves an intermediate 

funding facility, is categorized under 

MCC’s Environmental Guidelines as a 

Category D Activity. The INP Activity is 

categorized under MCC’s Environmental 

Guidelines as a Category A Activity due 

to potentially significant environmental 

impacts anticipated to result from 

increased harvesting, utilization and 

export of species listed for protection 

under the Convention on the 

International Trade of Endangered 

Species (‘‘CITES’’). 

The Land Access and Management 

Activity will involve the development 

of EAs and EMPs to mitigate any 

adverse impacts. Participatory 

community-level decision making 

processes will further mitigate against 

adverse impacts. The Livestock Support 

Activity will involve an EA to analyze 

the environmental and social impacts of 

the veterinary centers, quarantine 

camps, and livestock marketing 

facilities and include the development 

of site-specific EMPs. The EMPs will 

define the regulations and specific 

training needed to govern the use of 

Restricted Use Pesticides and other 

substances in compliance with 

Namibia’s Environmental Management 

Act and MCC Environmental 

Guidelines. Any post-farmgate 

infrastructure built through the 

Livestock Market Efficiency 

Improvement sub-activity will involve 

the application of environmental 

screening and siting criteria and 

periodic audits of the performance of 

infrastructure funding recipients. The 

INP Activity will involve an EIA and an 

EMP to identify impacts and develop 

appropriate mitigation measures. These 

measures will address any potential 

environmental impacts that could result 

from the harvesting, utilization and 

export of species listed for protection 

under CITES. 

Any resettlement impacts resulting 

from the Agriculture Project will be 

identified and documented in 

compliance with OP 4.12. In particular, 

the Land Access and Management 

Activity will clarify procedures to 

ensure that community decision making 

regarding restricting access to land 

includes measures to mitigate adverse 

impacts on livelihoods. HIV/AIDS 

awareness and prevention plans will be 

developed under the Agriculture Project 

and implemented in relation to 

construction activities. Furthermore, 

trafficking in persons for livestockrelated labor under the Livestock 

Support Activity will need to be 

addressed through the development and 

implementation of anti-trafficking 

measures. Gender integration plans will 

be developed to provide design 

recommendations and to ensure 

women’s participation throughout 

implementation for all Activities with a 

particular focus on including women in 

land and natural resources management 

decision making. The Livestock Market 

Efficiency Fund and the INP Innovation 

Fund will comply with MCC’s 

Environmental Guidelines, whose terms 

will be included in the grants-making 

manuals. Increased demand for INPs is 

likely to provide significant income 

benefits to female-headed households 

and vulnerable groups such as the San 

people. 

5. Donor Coordination 

The Activities of the Agriculture 

Project build on other donors’ previous 

initiatives in the livestock and land 

management sub-sectors. The Livestock 

Activity will build upon previous and 

current donor support to improve 

livestock marketing by communal 

farmers. The Communal Land Support 

sub-activity will build upon other GRN 

and donor-funded land reform 

initiatives to ensure coordination and 

avoid duplication. Community-based 

Rangeland and Livestock Management 

sub-activities build upon several 

successful community-led solutions to 

natural resources management. Various 

donors have supported the 

commercialization of natural products, 

namely USAID, the EU, the GEF facility, 

the FAO, and Oxfam. Previous programs 

in this sector have largely targeted the 

upper end of the value chain, and MCC 

Funding will complement these efforts 

by working closely with the first-stage 

primary producers. 

6. USAID 

MCC Funding will build on USAIDfunded projects in natural resources 

management, specifically the natural 

products sector. 

7. Policy, Legal and Regulatory Reforms 

Namibia has committed to adopt the 

‘‘Access to Genetic Resources and 

Associated Traditional Knowledge’’

draft bill into law, which shall reflect, 

and not deviate in a significant manner 

from, the terms of CITES. 

E. Implementation Framework 

1. Overview 

Namibia will generally implement the 

Program through its existing 

government systems. The National 

Planning Commission, a ministry-level 

government agency charged with 

directing development resources, has 

been confirmed as the designated 

accountable entity. As such, it will have 

overall responsibility for the oversight, 

management and implementation of the 

Program. A program implementation 

unit, within NPC will serve as the 

management unit and will be 

responsible for the day-to-day 

administration of this Compact. In 

addition, the Ministries of Education; 

Agriculture, Water and Forestry; 

Environment and Tourism; and Lands 

and Resettlement, and other 

governmental institutions, will 

undertake certain aspects of the 

implementation of specific Projects to 

ensure integration, coordination and 

sustainability of the MCC investments. 

2. MCA-Namibia 

(a) Board of Directors. 

(i) Composition. 

The NPC Commissioners serve as the 

MCA-Namibia Board of Directors. The 

Commission currently consists of 14 

members, six of whom are ministers 

specified by the NPC’s enabling statute, 

with the remaining members appointed 

by the President of Namibia. As the six 

specified ministers do not include 

representatives from the MoE or the 

MET, Namibia agrees that two of the 

appointed commission member slots 

will be filled with representatives from 

these ministries. In addition, Namibia 

has agreed that the remaining six 

appointed slots will be filled, as their 

current terms expire, with civil society 

and private sector representatives 

selected through a process that allows 

the private sector and civil society 

groups whose interests relate to the 

Projects to nominate potential 

candidates. The below ministries will be 

represented by the Minister or a 


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delegate no lower than the Permanent 

Secretary level: 

• National Planning Commission 

(Chairperson is the Director General) 

• Ministry of Agriculture, Water and 

Forestry 

• Ministry of Finance 

• Ministry of Trade and Industry 

• Ministry of Works and Transport 

• Ministry of Regional and Local 

Government, Housing and Rural 

Development 

• Ministry of Education 

• Ministry of Environment and 

Tourism 

The existing appointees to the NPC 

Commission, as of the date hereof, are 

civil society and private sector 

members, selected by the President 

based on their expertise and the sectors 

they represent are listed below: 

• Representative of the Namibia 

Chamber of Commerce and Industry 

• Founder, Desert Research 

Foundation of Namibia (DRFN) 

• Director of Primary Health Care, 

Ministry of Health and Social Services 

• Deputy Director of Environmental 

Affairs, Ministry of Environment and 

Tourism 

• President, National Union for 

Namibia Workers (NUNW) 

• Secretary General, National Youth 

Council of Namibia 

• Head of ETSIP, Ministry of 

Education 

• CEO, Federation of Namibia 

Tourism Associations (FENATA) 

Since there is an equal number of 

Board members, for voting purposes, the 

Director General will hold a tie-breaking 

vote. 

(ii) Roles and Responsibilities. The 

roles and responsibilities of the MCANamibia Board will be as set forth in the 

bylaws of MCA-Namibia annexed to the 

Program Implementation Agreement (to 

the extent not inconsistent with the NPC 

Act). 

(b) Management Unit. 

(i) Composition. 

Appointed by the Director General of 

the NPC, with MCC’s approval, MCANamibia will be managed by a Chief 

Executive Officer (‘‘CEO’’). Senior 

management will also include the 

following officers: Two Deputy CEOs; 

Director of Administration and Finance; 

Project Directors for Education, Tourism 

and Agriculture; Environment and 

Social Assessment Director; Monitoring 

and Evaluation Director; Legal Advisor; 

and Procurement Manager. In addition 

to other standard operational staff, 

much of the technical expertise will 

come from the implementing entities. 

MCA-Namibia will support limited staff 

within the Ministry of Education, 

Ministry of Agriculture, Ministry of 

Environment and Tourism, and the 

Namibia Tourism Board, who will 

support Compact Activities while 

ensuring close integration with national 

priorities and strategies. 

(ii) Roles and Responsibilities. 

The roles and responsibilities of the 

Management Unit will be set forth in the 

bylaws of MCA-Namibia annexed to the 

Program Implementation Agreement. 

3. Stakeholder/Consultative Committees 

MCA-Namibia will rely on existing 

consultative mechanisms for each of the 

Projects. For the Education Project, this 

will be the ETSIP Programme 

Coordinating Committee and the NTA 

Board. For the Tourism Project, MCANamibia will consult with the Namibian 

Association for Conservancy Support 

Organisations (NACSO). For the 

Agriculture Project, consultations will 

be with the Technical Committee on 

Land and Social Issues, the Veterinary 

Cordon Fence (VCF) Task Force, 

farmers’ organizations, and the 

Indigenous Plants Task Team (IPTT). 

These committees include members 

from the public and private sectors and 

civil society. They are broad-based and 

offer relevant technical expertise plus a 

solid understanding of socio-economic 

and environmental realities in Namibia. 

The MCA-Namibia Project Directors 

will present Program-related matters to 

these consultative bodies and report 

back to the MCA-Namibia Board on the 

advice provided by them. The 

committees may also pro-actively 

approach MCA-Namibia with their 

concerns related to the Program design 

and implementation. Regular, periodic 

interaction between MCA-Namibia and 

the consultative bodies is anticipated. 

4. Implementing Entities 

Subject to the terms and conditions of 

this Compact and any other 

supplemental agreement entered into in 

connection with this Compact, MCANamibia may engage one or more 

entities of Namibia to implement and 

carry out any Project or Activity (or a 

component thereof) to be carried out in 

furtherance of this Compact (each, an 

‘‘Implementing Entity’’). Namibia will 

ensure that MCA-Namibia enters into an 

agreement with each Implementing 

Entity, in form and substance 

satisfactory to MCC, that sets forth the 

roles and responsibilities of such 

Implementing Entity, the MCA-Namibia 

officer to whom such Implementing 

Entity will report and other appropriate 

terms and conditions (each an 

‘‘Implementing Entity Agreement’’). 

5. Fiscal Agent 

Unless MCC otherwise agrees in 

writing, Namibia will ensure that MCANamibia engages a fiscal agent (a ‘‘Fiscal 

Agent’’), who will be responsible for 

assisting MCA-Namibia with its fiscal 

management and assure appropriate 

fiscal accountability of MCC Funding, 

and whose duties will include those set 

forth in the Program Implementation 

Agreement. 

6. Procurement Agent 

Unless MCC otherwise agrees in 

writing, Namibia will ensure that MCANamibia engages one or more 

procurement agents (each, a 

‘‘Procurement Agent’’) to carry out and 

certify specified procurement activities 

in furtherance of this Compact. The 

roles and responsibilities of each 

Procurement Agent will be set forth in 

the Program Implementation Agreement 

or such agreement as MCA-Namibia 

enters into with each Procurement 

Agent, which agreement shall be in form 

and substance satisfactory to MCC. Any 

Procurement Agent will adhere to the 

procurement standards set forth in the 

MCA-Namibia Procurement Rules and 

ensure procurements are consistent with 

the procurement plan adopted by MCANamibia pursuant to the Program 

Implementation Agreement, unless MCC 

otherwise agrees in writing. 

Annex II Multi-Year Financial Plan 

Summary 

This Annex II to this Compact (the 

‘‘Financial Plan Annex’’) summarizes 

the Multi-Year Financial Plan for the 

Program. 

1. General. 

A multi-year financial plan summary 

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

is attached hereto as Exhibit A. By such 

time as specified in the PIA, Namibia 

will adopt, subject to MCC approval, a 

Multi-Year Financial Plan that includes, 

in addition to the multi-year summary 

of estimated MCC Funding and 

Namibia’s contribution of funds and 

resources, an estimated draw-down rate 

for the first year of the Compact Term 

based on the achievement of 

performance milestones, as appropriate, 

and the satisfaction or waiver of 

conditions precedent. Each year, at least 

thirty (30) days prior to the anniversary 

of the date on which this Compact 

enters into force, the Parties shall 

mutually agree in writing to a detailed 

budget for the upcoming year of the 

Program, which shall include a more 

detailed budget for such year, taking 

into account the status of the Program 

at such time and making any necessary 


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adjustments to the Multi-Year Financial 

Plan. 

2. Government LMIC Contribution 

During the Compact Term, Namibia 

shall make contributions, relative to its 

national budget and taking into account 

prevailing economic conditions, as are 

necessary to carry out Namibia’s 

responsibilities and obligations under 

Section 2.6(a) of this Compact. These 

contributions may include in-kind and 

financial contributions (including 

obligations of Namibia on any debt 

incurred toward meeting these 

contribution obligations). In connection 

with this obligation Namibia has 

developed a budget over the five year 

term of the Compact to complement 

MCC Funding through budget 

allocations to its sectors in education, 

tourism and agriculture. Namibia 

anticipates making contributions from 

its national budget of approximately 

US$165,483,800 over the Compact 

Term. Such contribution shall be in 

addition to Namibia’s spending 

allocated toward such Project Objectives 

in its budget for the year immediately 

preceding the establishment of this 

Compact. Namibia’s contribution 

remains subject to any legal 

requirements in Namibia for the 

budgeting and appropriation of such 

contribution, including approval of 

Namibia’s annual budget by its 

Parliament. The Parties may set forth in 

appropriate supplemental agreements 

certain requirements regarding this 

Government contribution, which 

requirements may be conditions 

precedent to the Disbursement of MCC 

Funding. 

Annex III Description of Monitoring 

and Evaluation Plan 

This Annex III (this ‘‘M&E Annex’’) 

generally describes the components of 

the Monitoring and Evaluation Plan 

(‘‘M&E Plan’’) for the Program. 

1. Overview 

MCC and Namibia will formulate, 

agree to and Namibia will implement, or 

cause to be implemented, an M&E Plan 

that specifies (a) how progress toward 

the Program goal and objectives will be 

monitored, (‘‘Monitoring Component’’), 

(b) process and timeline for the 

monitoring of planned, ongoing, or 

completed Project Activities to 

determine their efficiency and 

effectiveness, and (c) a methodology for 

assessment and rigorous evaluation of 

the outcomes and impact of the Program 

(‘‘Evaluation Component’’). Information 

regarding the Program’s performance, 

including the M&E Plan, and any 

amendments or modifications thereto, 

as well as progress and other reports, 

will be made publicly available on the 

Web site of MCA-Namibia and 

elsewhere. 

2. Program Logic 

The M&E Plan will be built on a series 

of logic models which illustrate how the 

Program, Projects and Project Activities 

contribute to poverty reduction and 

economic growth in Namibia. The chart 

below provides a visual representation 

of each Project’s objectives and outcome 

statement that this Compact will seek to 

achieve. In sum, the goal of the Program 

is to contribute to economic growth and 


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poverty reduction among targeted 

beneficiaries primarily in the northern 

area of Namibia. 

The following chart stating the Project 

objectives and the outcomes illustrates 

how each of the Projects addresses 

poverty reduction in the applicable 

sectors: 

3. Monitoring Component 

To monitor progress toward the 

achievement of the impact and 

outcomes, the Monitoring Component of 

the M&E Plan will identify (a) the 

indicators, (b) the definitions of the 

indicators, (c) the sources and methods 

for data collection, (d) the frequency for 

data collection, (e) the party or parties 

responsible, and (f) the timeline for 

reporting on each indicator to MCC. 

Further, the Monitoring Component 

will track changes in the selected 

indicators for measuring progress 

towards the achievement of the 

objectives during the Compact Term. 

Before the initiation of implementation 

activities for each Project, MCANamibia will collect baseline data on 

the selected indicators or verify already 

collected baseline data. 

(a) Indicators. The M&E Plan will 

measure the results of the Program using 

quantitative, objective and reliable data 

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

benchmarks that specify the expected 

value and the expected time by which 

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

The M&E Plan will be based on a logical 

framework approach that classifies 

indicators as goal, outcome, output, and 

process milestones. The Compact Goal 

indicators (‘‘Goal Indicators’’) will 

measure the general contribution of the 

Projects to the national economic 

growth and poverty reduction. Second, 

the Project objective and outcome 

(‘‘Project Objective and Outcome 

Indicators’’) will measure the final 

result of each Project. Third, Output 

Indicators and process milestones 

(‘‘Project Activity Indicators’’) will 

measure the early and intermediate 

results of the Project Activities. For each 

Project Objective, Outcome, and 

Activity Indicator, the M&E Plan will 

define a strategy for obtaining and 

verifying the value of such indicator 

prior to undertaking any activity that 

affects the value of such Indicator (such 

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

be disaggregated by gender, income 

level and age, and beneficiary types to 

the extent practicable. Subject to prior 

written approval from MCC, MCANamibia may add indicators or refine 

the definitions and Targets of existing 

indicators. 

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

the Goal Indicators listed in the table 

below specifying the definition, 

baseline, and end of Compact Target for 

each. 

GOAL LEVEL

Result Indicator Definition of indicator Baseline Target 

Economic Growth and Reduction of Poverty.Poverty Rate 10 ........................ Relative poverty: Percent of households devoting more than 60 percent of total household 

income to food expenses.11

28% 20% 

Extreme poverty: Percentage of household devoting more than 80 per cent of total income 

to food expenses.12

4% 2% 


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10 Definitions of Relative and Extreme poverty 

inline with that of the NDP 3. 

11Baseline from the National Development Plan 

3 (NDP 3). Target taken from the NDP 3 and is thus 

inline with National development objectives and 

goals. 

12Baseline from the NDP 3. 

13Target taken from the National Development 

Plan 3 (NDP 3) and is thus inline with National 

development objectives and goals. 

14Namibia Household Income and Expenditure 

Survey 2003/2004 Preliminary Report, March 2006. 

The stated average annual adjusted income per 

household is N$42,129 with per capita income of 

N$8,556 and adjusted per capita income of 

N$10,357. The baseline figure uses an average 

NAD–US$ exchange rate for 2003/04 of N$6,985 : 

US$1. 

GOAL LEVEL—Continued 

Result Indicator Definition of indicator Baseline Target 

Unemployment Rate 13 ............ Percentage of economically active population 

who are currently unemployed.

35% 33.6% 

Average Income per Household.14The average annual household consumption 

expenditures in cash, in-kind and non consumption expenditures such as savings and 

investment and other nonconsumption disbursements (corrected for CPI).

US$6,031 TBD 

(ii) Project Objective, Outcome and 

Activity Indicators. The M&E Plan will 

contain Project Objective, Outcome, and 

Activity Indicators which will measure 

the results for the 3 (three) main Projects 

and are listed below with their 

definitions, baseline and targets. Prior to 

the initiation of implementation of a 

Project Activity, MCC and MCANamibia will agree on a final set of 

Activity Indicators. The M&E Plan will 

contain these indicators or will be 

amended to contain these indicators. 

PROJECT: EDUCATION 15

OBJECTIVE LEVEL

Result Indicator Definition of indicator Baseline Year 5 

Enhanced learning and cognitive 

development of students.

Transition Rate of 5th and 8th 

Grade Students.

Number of 5th grade students who pass the national transitional examinations for 5th 

grades.16

1,528 1,554 

Number of 8th grade students who pass the national transitional examinations for 8th 

grades.17

2,982 3,018 

National Pass Rate of JSC and 

NSSC Learners in the Basic 

Subjects of the DNEA Examination.18

Percentage of learners achieving D or better in 

mathematics, life science, physical science, 

and English as a second language on JSC 

(grade 10).

43% 19 53% 

Percentage of learners achieving D or better in 

mathematics, life science, physical science, 

and English as a second language on NSSC 

Ordinary Level exams (grade 12).

31% 41% 

Increased supply level of skills 

demanded by employers.

Employment rate of COSDEC 

participants in the national industries.

Percentage completing COSDEC who are full 

time or self employed in the sector of studies 

within the national industries one year after 

completion of required course of studies in the 

COSDEC program.

49% 70% 

Employment rate of other vocational skill development programs in national industries.Percentage who are full time or self-employed 

one year after completion of vocational skill 

training programs.

40% 75% 

OUTCOME LEVEL

Result Indicator Definition of indicator Baseline Year 5 

Activity: Improving the Quality of General Education 

Enhanced learning and 

cognitive development of 

students at MCC target 

schools.

DNEA examination results 

(MCC target schools).20

Percentage of learners at MCC target schools achieving D or better in mathematics, life science, physical 

science, and English JSC exam (grade 10).21

43% 53% 

Transition rate of 5th and 

8th grade students (MCC 

target schools).

Percentage of 5th and 8th grade students 

passing the national transition examination in MCC target schools.

5th 1,528 1,554 

8th 2,982 3,018 


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Survival Rate ...................... Percentage of 5th, 8th and 11th grade 

students who have remained in each 

phase of school since first grade.

22 5th 94.1% 94.3% 

23 8th 80.7% 84.6% 24 11th 38.6% 40.0% 

Repetition Rate .................. Percentage of 1st, 5th, and 8th grade students who have dropped out or repeated grade levels.

25 1st 19.7% 19.5% 

26 5th 22.8% 22.6% 

27 8th 21.1% 21.0% 

Activity: Improving Vocational and Skills Training 

Enhanced workforce skills .. Completion rate of 

COSDEC participants.28

Percentage of total participants who completed required course work within the specified time period 

of the program.

70% 85% 

Completion rate of participants of other Vocational 

skill training programs.

Percentage of total participants of other Vocational 

skill training who completed required activities within 

the specified time period of the program.

TBD 80% 

COSDEC enrollment Rate Total COSDEC participant enrollment within a year ..... 1,150 3,000 

Vocational Skills training 

enrollment rate.29

Total MCC assisted Vocational Skill training program 

enrollment within a year.

1,670 2,171 

Annual Revenue to NTF .... Funds contributed to NTF from Employers (Private 

sector training levy and other sources) (2008 US$).

US$0 US$1,600,000 

Activity: Upgrading Access to and Management of Adequate Textbooks 

Gaps filled in the current 

provision of books.

% of schools meeting the 

target of Textbook Students ratio.30

Total number of schools as a percentage of the total 

number of national schools who are meeting the targeted student textbook ratio of 1:2.

TBD TBD 

Efficiency in textbook procurement and delivery.Textbook Inventory Turning 

Rate.31

% of textbook inventory delivered on time to schools 

out of the total textbooks procured for a given year.

TBD 95% 

Activity: Investment in Regional Study and Resource Centers 

Increased use of information for formal education, 

informal learning, business, and research.

Resource and learning materials loaned out per 

year.32

The total number of library books loaned out per year 

in the MCA assisted libraries.

33,921 84,406 

Total number of visits to 

new RSRCs.

Total number of annual visits to 3 new MCC-funded 

RSRCs.

31,000 100,000 

Activity: Expanding and Improving Access to Tertiary Finance 

Increased financing available for tertiary education.% of qualified financial aid 

applicants receiving loans 

for the school year.

Percentage of the total qualified financial aid applicants enrolled in tertiary institutions who actually received students loans for the school year.20% 60% 

Repayment rates 33 ............ Percentage of loans awarded under the new system 

being paid on time.

20% 75% 

PROJECT: TOURISM

OBJECTIVE LEVEL

Result Indicator Definition of indicator Baseline Year 5 

Growth of tourism industry targeting poor beneficiaries.Annual total tourist arrivals in 

Namibia by origin.34

Total number of tourist arrivals recorded per 

annum (excluding South African and Angolan multi purpose business-tourism visits).

864,451 1,057,000 

Total Tourism Industry employment.35Total direct employment created within the 

tourism industry by travel and tourism companies excluding government agencies and 

supplier company employments.

21,508 24,573 

Increased Household (HH) income.36Increases in income of HH in targeted communal conservancies areas.27,885 41,827 


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PROJECT: TOURISM—Continued 

OBJECTIVE LEVEL

Result Indicator Definition of indicator Baseline Year 5 

Activity: Improving Management and Infrastructure in Etosha National Park 

Improved management and 

management efficiency of the 

ENP.

Total ENP revenue 37 ............... Annual total revenue generated by ENP including gate receipts and concession fees 

(2007 US$).

2,963,538 4,142,529 

Park attendance 38 ................... The annual total park attendance for ENP 

based on park entry records.

200,000 293,000 

Activity: Marketing Namibia in Tourism 

Increased awareness of Namibia’s tourism products.Number of tourist arrivals from 

new targeted markets.

Total number of tourist arrivals recorded for 

new targeted markets (target expressed as 

a percent change over the baseline) 39.

19,342 40 30,947 

Activity: Ecotourism Development for Communal Conservancies 

Conservancy benefits to 

households and community.

Fraction of conservancy revenues paid out as 

household income/dividends plus amounts 

invested in community projects (schools, 

clinics, social services) and new enterprise 

expansion. Figure is the average across all 

MCC-supported conservancies.

41 34% 75% 

Increased commercial capacity 

of conservancies.

Total revenue to targeted registered conservancies.42The total revenue generated by all conservancies supported by MCC—including inkind revenues (target expressed as a percent change over the baseline, 2008 US$).2,952,175 4,149,422 

Conservancy sustainability The number of conservancies achieving a 

positive net income 43.

Of 17 established conservancies (registered before Aug 1, 2003).

44 9 16 

Of 14 beginning conservancies (registered 

after Aug 1, 2003).

45 0 7 

PROJECT: AGRICULTURE

OBJECTIVE LEVEL

Result Indicator Definition of indicator Baseline Year 5 

Increased health of cattle .......... Mortality Rate 46 ....................... Percentage of the total population that dies of 

diseases per annum NCAs.

0.03% TBD 

Enhanced and efficient marketing system.Annual Turnover 47 (formal 

Market).

Number of cattle slaughtered in formal markets (public and private abattoirs) in the 

NCAs.

19,000 28,000 

Increased INP growth with benefits accruing to households.Percent increase in INP revenue.Percent increase in INP revenue from base 

year (corrected for CPI inflation) among 

members of PPOs targeted for assistance.

na 50% 

OUTCOME LEVEL

Result Indicator Definition of indicator Baseline Year 5 

Activity: Livestock Activity 

Provision of High Quality Veterinary Services.CBPP vaccination Rate 48 ........ Percentage of livestock in the NCAs vaccinated against CBPP.78% 95% 

Frequency of NCA homestead/ 

village visits by DVS.

Average number of service contacts per 

household per year by DVS.

1 2 

Efficient Traceability system ...... Total livestock movement 

transactions recorded.49

Total recorded livestock movements through 

transit holdings such as market places and 

exhibition sites.

TBD TBD 


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15Education indicators with target from ETSIP 

will be adjusted in accordance with the annual 

ETSIP reviews. 

16 In the absence of disaggregated data specific for 

the 47 target schools the baseline represents the 

national average for all schools offering grade 5, 

calculated for 36 schools, out of the target 47 that 

offers grade 5. To be revised once disaggregated 

data for the 47 target schools is available. Target is 

based on an average annual rate of increase of 

0.329% per annum for transition of 5th graders. To 

be revised once disaggregated data for the 47 target 

schools is available. Data from EMIS 2007. 

17 In the absence of disaggregated data specific for 

the 47 target schools the baseline represents the 

national average for all schools offering grade 8, 

calculated for all 47 schools offering grade 8. To be 

revised once disaggregated data for the 47 target 

schools is available. Target is based on an average 

annual rate of increase of 0.241% per annum for 

transition of 8th graders. To be revised once 

disaggregated data for the 47 target schools is 

available. Data from EMIS 2007. 

18ETSIP target for 2011 = 52.1%. ETSIP targets 

are being reviewed so this target will be revised 

once ETSIP data are available (July 08). 

19ETSIP target for 2011 = 62.9%. ETSIP targets 

are being reviewed so this target will be revised 

once ETSIP data available (July 08). 

20This is representative of the national average of 

all schools. A baseline will be established for the 

MCC target schools. 

21MCC target school figures only include junior 

secondary as most MCC target schools only offer 

this level to date. As more schools begin offering 

senior secondary, an indicator may be added for the 

NSSC. 

22Target based on annual average rate of change 

(for 2000–2006) of 0.04%; to be revised against 

revised ETSIP targets. Data from EMIS 2007. 

23Target based on annual average rate of change 

(for 2000–2006) of 0.94%; to be revised against 

revised ETSIP targets. Data from EMIS 2007. 

24Target based on annual average rate of change 

(for 2000–2006) of 0.68%; but to be revised against 

revised ETSIP targets. Data from EMIS 2007. 

25Target based on annual average rate of change 

(for 2000–2006) of 0.341%; but to be revised against 

revised ETSIP targets. Data from EMIS 2007. 

26Target based on annual average rate of change 

(for 2000–2006) of 0.15%; but to be revised against 

revised ETSIP targets. Data from EMIS 2007. 

27Target based on annual average rate of change 

(for 2000–2006) of 0.132%; but to be revised against 

revised ETSIP targets. Data from EMIS 2007. 

28ETSIP indicator with a baseline target for 2008. 

29 Year 5 Target is based on a 30% increase of the 

baseline. 

30Baseline to be determined during MCC funded 

textbook survey. Target of 1 textbook per every 2 

students inline with ETSIP target and can be 

amended against revised ETSIP targets. 

31Baseline to be determined during MCC funded 

textbook survey. 

32Baseline from MoE. Year 5 target is based on 

an annual increase of 20%. 

33Baseline based on loan repayment rate for 2007. 

34NTB data. 

35Baseline data is based on preliminary figures 

from Namibia’s 2007 Tourism Satellite Accounts 

(TSA). The year 5 target is based on projected 2.7% 

annual growth. 

36Baseline is based on average income to 

conservancy households for the 31 MCC target 

conservancies at an average US$–NAD exchange 

rate for 2007 of US$1 : NAD 7.195. The target is 

projected as 50% growth of the baseline. To be 

confirmed before Compact entry into force. 

37Baseline based on CPI adjusted total revenue 

for 2007 at an average US$–NAD exchange rate for 

2007 of US$1 : NAD 7.195. 

38Baseline data from MET. Year 1 target is the 

same as the baseline as MCA interventions will 

only impact from Year 2. The year 5 target is based 

on annual 10% growth. The target will be revised 

based on the outcome of the MCC-funded Carrying 

Capacity study for ENP. 

39Baseline refers only to USA arrivals. 

40The year 5 Target is based on a 60% increase 

from the baseline. 

41Baseline is an estimate. Actual figure will be 

determined before Compact entry into force. 

42Baseline data is based on 23 registered 

conservancies, out of the 31 proposed for MCC 

support, that generate revenue (US$1 = N$ 7.195). 

The remaining 8 conservancies are emerging with 

high potential for revenue generation. The baseline 

is corrected for the 2007 average CPI. 

43The calculation of profit (profit = revenue ¥ 

cost) will include all relevant costs such as in kind 

services from donors (i.e. negotiating assistance and 

auditing services) and amortization of capital 

investment. 

44Baseline is an estimate. Actual figure will be 

determined before Compact entry into force. 

45Baseline is an estimate. Actual figure will be 

determined before Compact entry into force. 

46Baseline is based on total mortality as 

percentage of total estimated cattle population in 

the NCA. Data will be revised against the outcome 

of the MCC funded livestock survey. 

47Baseline data from Meatco. Target is projected 

at 8% annual growth. 

48Baseline data from Directorate of Veterinary 

Services (DVS), MAWF. Target is projected at 4% 

annual growth. 

49Baselines and targets to be determined during 

the MCC-funded livestock survey. 

50Estimation from MCC ERR calculation. 

51Baseline calculated as percent difference in the 

average value of cattle sold in 2006 and 2007. Data 

from Meatco. 

OUTCOME LEVEL—Continued 

Result Indicator Definition of indicator Baseline Year 5 

Number of livestock tagged in 

the NCAs.

Number of livestock tagged in the NCAs under 

MCC mass tagging (cumulative) and subsequent owner tagging.

0 1,170,000 

Enhanced efficiency of livestock 

quarantine and marketing.

Post farmgate cost reduction .. The cost saving to herders from improvements 

in the efficiency of marketing, transport, and 

quarantining of livestock.

0 50 50% 

Activity: Land Access and Management Activity 

Community adoption of Rangeland Management techniques 

and methodologies.

Value of livestock sold by communities in formal markets.51Average percent difference in total value of 

livestock sold in previous year between target communities adopting techniques and 

comparison communities.

19% 50% 

Adoption rate of improved 

rangeland management 

methodology and techniques.

Percentage of targeted communities practicing 

appropriate rangeland management techniques and methodology.

0% 40% 

Activity: Indigenous Natural Products Activity 

Market access for INPs ............. Percentage of targeted PPOs 

granted certification.

Percentage of targeted PPOs certified for organic production and fair trade status.0 67% 

(b) Data Collection and Reporting. The 

M&E Plan will establish guidelines for 

data collection and reporting, and 

identify the responsible parties. 

Compliance with data collection and 

reporting timelines will be conditions 

for disbursements for the relevant 

Project Activities as set forth in the 

Program Implementation Agreement. 

The M&E Plan will specify the data 

collection methodologies, procedures, 

and analysis required for reporting on 

results at all levels. The M&E Plan will 

describe any interim MCC approvals for 

data collection, analysis, and reporting 

plans. 

(c) Data Quality Reviews. As 

determined in the M&E Plan or as 

otherwise requested by MCC, the quality 

of the data gathered through the M&E 

Plan will be reviewed to ensure that 

data reported are as valid, reliable, and 

timely as resources will allow. The 

objective of any data quality review will 

be to verify the quality and the 


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consistency of performance data, across 

different implementation units and 

reporting institutions. Such data quality 

reviews also will serve to identify where 

those levels of quality are not possible, 

given the realities of data collection. 

(d) Management Information System. 

The M&E Plan will describe the 

information system that will be used to 

collect data, store, process and deliver 

information to relevant stakeholders in 

such a way that the Program 

information collected and verified 

pursuant to the M&E Plan is at all times 

accessible and useful to those who wish 

to use it. The system development will 

take into consideration the requirement 

and data needs of the components of the 

Program, and will be aligned with MCC 

existing systems, other service 

providers, and ministries. 

(e) Role of MCA-Namibia. The 

monitoring and evaluation of this 

Compact spans across three discrete 

Projects and will involve a variety of 

governmental, non-governmental, and 

private sector institutions. MCANamibia holds full responsibility for 

implementation of the M&E Plan. MCANamibia will oversee all Compactrelated monitoring and evaluation 

activities conducted by each of the 

Projects, ensuring that data from all 

implementing entities is consistent, and 

accurately reported and aggregated into 

regular Compact performance reports as 

described in the M&E Plan. 

4. Evaluation Component 

The Evaluation Component of the 

M&E Plan will contain three types of 

evaluations: Impact Evaluations, Project 

Performance Evaluations, and Special 

Studies. Plans for each type of 

evaluation will be finalized before MCC 

Disbursement for specific Program or 

Project activities. The Evaluation 

Component of the M&E Plan will 

describe the purpose of the evaluation, 

methodology, timeline, required MCC 

approvals, as well as the process for 

collection and analysis of data for each 

evaluation. The results of all evaluations 

will be made publicly available in 

accordance with MCC Guidelines for 

Monitoring and Evaluation Plans. 

(a) Impact Evaluation: The M&E Plan 

will include a description of the 

methods to be used for impact 

evaluations and plans for integrating the 

evaluation method into project design. 

Based on in-country consultation with 

stakeholders, the following strategies 

outlined below were jointly determined 

as having the strongest potential for 

rigorous impact evaluation. The M&E 

Plan will further outline in detail these 

methodologies. Final impact evaluation 

strategies are to be jointly determined 

before the approval of the M&E Plan and 

before entry into force of this Compact. 

The following is a summary of the 

potential impact evaluation 

methodologies: 

(i) Agriculture Project: The CBLRM 

Activity will be subjected to rigorous 

impact evaluation. The evaluation will 

address the effectiveness of the Activity 

in improving herders’ value, grade and 

incomes. As the Activity is envisioned 

as a pilot, the evaluation will contribute 

to the justification for scaling up the 

Activity through arrangements outside 

this Compact. The evaluation will 

include measurement of outcomes of 

communities outside the target 

communities. The appropriate rigorous 

methodology will be used. 

(ii) Education Project: The purpose of 

the impact evaluation will be to assess 

the effectiveness of the Education 

Quality Activity through: (1) The 

quantity of education services provided; 

(2) the quality of education services 

provided; and (3) learning outcomes. 

The evaluation will include 

measurements taken from non-MCC 

target schools to establish a comparison 

group. 

The evaluation may also address the 

Textbook Activity and other activities 

that may improve school supervision. 

(b) Projects Evaluation. The M&E Plan 

will make provision for project level 

evaluations. MCA-Namibia, with the 

prior written approval of MCC, will 

engage independent evaluators to design 

the Project Performance Evaluations to 

be conducted at the end of each Project 

or MCC may engage the independent 

evaluators. The Project Performance 

Evaluations must at a minimum (i) 

evaluate the efficiency and effectiveness 

of the Project Activities; (ii) estimate, 

quantitatively and in a statistically valid 

way, the causal relationship between 

the expected impact (to the extent 

possible), the intended outcomes and 

outputs; (iii) determine if and analyze 

the reasons why this Compact Goal, 

Program Objective and Project 

Objectives were or were not achieved; 

(iv) identify positive and negative 

unintended results of the Program; (v) 

provide lessons learned that may be 

applied to similar projects; (vi) assess 

the likelihood that results will be 

sustained over time; and (vii) any other 

guidance and direction that will be 

provided in the M&E Plan. To the extent 

engaged by MCA-Namibia, such an 

independent evaluator will review the 

plans for the collection of baseline data 

and, as applicable, plans for selecting 

comparison groups. 

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

include a description of the methods to 

be used for Special Studies funded 

through this Compact or by MCC. 

Plans for conducting the Special 

Studies will be determined jointly 

between MCA-Namibia and MCC before 

the approval of the M&E Plan and before 

entry into force of this Compact. The 

M&E Plan will identify and make 

provision for any other special studies, 

ad hoc evaluations, and research that 

may be needed as part of the monitoring 

and evaluating of this Compact. Either 

MCC or MCA-Namibia may request 

special studies or ad hoc evaluations of 

Projects, Project Activities, or the 

Program as a whole prior to the 

expiration of the Compact Term. When 

MCA-Namibia engages the evaluator, 

the evaluator will be an externally 

contracted and independently source 

selected by MCA-Namibia. The 

aforementioned engagement will be 

subject to the prior written approval of 

MCC, following a tender in accordance 

with the MCA-Namibia Procurement 

Rules, and in accordance with any 

relevant Implementation Letter or 

supplemental agreement. Contract terms 

must ensure non-biased results and the 

publication of results. 

(c) Request for Ad Hoc Evaluation or 

Special Study: If MCA-Namibia requires 

an ad hoc independent evaluation or 

special study at the request of Namibia 

for any reason, including for the 

purpose of contesting an MCC 

determination with respect to a Project 

or Project Activity or to seek funding 

from other donors, no MCC Funding or 

MCA-Namibia resources may be applied 

to such evaluation or special study 

without MCC’s prior written approval. 

5. Other Components of the M&E Plan 

In addition to the Monitoring and 

Evaluation Components, the M&E Plan 

will include the following components 

for the Program, Projects and Project 

Activities, including, where 

appropriate, roles and responsibilities of 

the relevant parties and providers: 

(a) Costs. A detailed cost estimate for 

all components of the M&E Plan. 

(b) Assumptions and Risks. Any 

assumption and risk external to the 

Program that underlies the 

accomplishment of the Objectives and 

Project Activity Outcomes. However, 

such assumptions and risks will not 

excuse Parties’ performance unless 

otherwise expressly agreed to in writing 

by all Parties. 

6. Implementation of the M&E Plan 

(a) Approval and Implementation. 

The approval and implementation of the 

M&E Plan, as amended from time to 

time, will be in accordance with this 


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M&E Annex, PIA, and any other 

relevant supplemental agreement. 

Annex IV Conditions to Disbursement 

of Compact Implementation Funding 

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. 

1. Conditions to Each CIF Disbursement 

(a) Delivery by Namibia (or MCANamibia) to MCC of the following 

documents, in form and substance 

satisfactory to MCC: 

(i) a complete, correct and fully 

executed Disbursement Request for the 

relevant Disbursement Period, together 

with the Periodic Reports covering such 

Disbursement Period. 

(ii) any proposed waiver or deferral 

(together with a justification) of any 

condition to Disbursement. 

(iii) a completed Detailed Financial 

Plan covering Compact Implementation 

Funding. 

(b) Prior to the deposit of any 

Disbursement of Compact 

Implementation Funding (each a ‘‘CIF 

Disbursement ’’) into any Permitted 

Account in accordance with an 

approved Disbursement Request, MCC 

will have received satisfactory evidence 

of the establishment of the Permitted 

Accounts. 

(c) The monitoring and evaluation 

officer for MCA-Namibia has been 

selected and approved by MCC and 

remains engaged, or in the event a 

position is vacant, MCA-Namibia is 

actively recruiting for the position. 

(d) The Fiscal Agent Agreement shall 

be executed and effective and the Fiscal 

Agent shall be mobilized. 

(e) The Procurement Agent Agreement 

shall be executed and effective and the 

Procurement Agent shall be mobilized. 

(f) The Bank Agreement shall be 

executed and effective and the Bank 

shall be mobilized. 

(g) If applicable, the tax agreements 

described in Section 2.8(b) of this 

Compact shall be executed and 

effective, together with any laws, rules 

or regulations necessary to give effect 

thereto. 

(h) MCC is satisfied, in its sole 

discretion, that (i) the activities being 

funded by such CIF Disbursement are 

necessary, advisable or otherwise 

consistent with the goal of facilitating 

the implementation of the Compact and 

will not violate any applicable law or 

regulation; (ii) no material default or 

breach of any covenant, obligation or 

responsibility by Namibia, MCANamibia or any Namibia entity has 

occurred and is continuing under this 

Compact or any supplemental 

agreement; (iii) there has been no 

violation of, and the use of requested 

funds for the purposes requested will 

not violate, the limitations on use or 

treatment of MCC Funding set forth in 

this Compact, including under Section 

2.7; (iv) any Taxes paid with MCC 

Funding through the date 90 days prior 

to the start of the applicable 

Disbursement Period have been 

reimbursed by Namibia in full in 

accordance with Section 2.8 of this 

Compact; and (v) Namibia has satisfied 

all of its payment obligations, including 

any insurance, indemnification, tax 

payments or other obligations, and 

contributed all resources required from 

it, under this Compact and any 

supplemental agreement. 

(i) Namibia has provided MCC with 

evidence that the regulations exempting 

the Projects and contractors to be 

engaged to work on the Projects from 

the provisions of the Architects and 

Quantity Surveyors Act 13 of 1979 and 

Engineering Profession Act 18 of 1986 

have been passed and are in full force 

and effect, in each case in accordance 

with their terms. 

(j) For any CIF Disbursement 

occurring after this Compact has entered 

into force: MCC is satisfied, in its sole 

discretion, that (i) MCC has received the 

reports then due from any technical 

consultants (including environmental 

auditors engaged by MCA-Namibia for 

any Project Activity), and all such 

reports are in form and substance 

satisfactory to MCC; (ii) the 

Implementation Plan Documents 

submitted to MCC are current and 

updated and are in form and substance 

satisfactory to MCC, and there has been 

satisfactory progress on the components 

of the Implementation Plan for any 

relevant Projects or Project activities 

related to such CIF Disbursement; (iii) 

there has been satisfactory progress on 

the M&E Plan for the Program, relevant 

Project or Project Activity and 

substantial compliance with the 

requirements of such M&E Plan 

(including the targets set forth therein 

and any applicable reporting 

requirements set forth therein for the 

relevant Disbursement Period); (iv) there 

has been no material negative finding in 

any financial audit report delivered in 

accordance with this Compact and 

Audit Plan, for the prior two quarters (or 

such other period as the Audit Plan may 

require); (v) MCC does not have grounds 

for concluding that any matter certified 

to it in the related MCA Disbursement 

Certificate, Fiscal Agent Disbursement 

Certificate or Procurement Agent 

Certificate is not as certified; and (vi) if 

any of the officers or key staff of MCANamibia have been removed or resigned 

and the position remains vacant, MCANamibia is actively engaged in 

recruiting a replacement. 

(k) MCC has not determined, in its 

sole discretion, that an act, omission, 

condition, or event has occurred that 

would be the basis for MCC to suspend 

or terminate, in whole or in part, MCC 

Funding in accordance with Section 5.1 

of this Compact. 

(l) Namibia has provided MCC with 

evidence, in form and substance 

satisfactory to MCC, that the program 

implementation unit that will serve as 

the management unit of MCA-Namibia 

has been established within NPC and 

has been exempted from the application 

of the Public Service Commission Act 

13 of 1995. 

Annex V Definitions 

Additional Representative has the 

meaning provided in Section 4.2. 

Activity has the meaning provided in 

Part A of Annex I. 

Agriculture Project has the meaning 

provided in Part D of Annex I. 

Audit Guidelines has the meaning 

provided in Section 3.8(a). 

Baseline has the meaning provided in 

paragraph 3(a) of Annex III. 

CBLRM Activity has the meaning 

provided in Part D of Annex I. 

CEO has the meaning provided in of 

Part E of Annex I. 

CIF Disbursement has the meaning 

provided in paragraph 1(b) of Annex IV. 

CLBs has the meaning provided in 

Part A of Annex I. 

CITES has the meaning provided in 

Part D of Annex I. 

Communal Land Support Activity has 

the meaning provided in Part D 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. 

Conservancy Support Activity has the 

meaning provided in Part C of Annex I. 

COSDECs has the meaning provided 

in Part A of Annex I. 

Covered Provider has the meaning 

provided in Section 3.7(c). 

Disbursement has the meaning 

provided in Section 2.4. 

EA has the meaning provided in Part 

A of Annex I. 

Education Project has the meaning 

provided in Part B of Annex I. 

Education Quality Activity has the 

meaning provided in Part B of Annex I. 


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1References to ‘‘goods’’ and ‘‘works’’ in these 

Rules include related services such as 

transportation, insurance, installation, 

commissioning, training, and initial maintenance. 

‘‘Goods’’ includes commodities, raw materials, 

machinery, equipment, and industrial plants. The 

provisions of these Rules also apply to services 

Continued 

EIA has the meaning provided in Part 

A of Annex I. 

EMP has the meaning provided in Part 

A of Annex I. 

ENP has the meaning provided in Part 

C of Annex I. 

ENP Activity has the meaning 

provided in Part C of Annex I. 

Evaluation Component has the 

meaning provided in paragraph 1 of 

Annex III. 

Excess CIF Amount has the meaning 

provided in Section 2.2(d). 

Financial Plan Annex has the 

meaning provided in Annex II. 

Fiscal Agent has the meaning 

provided in Part E of Annex I. 

Goal Indicators has the meaning 

provided in paragraph 3(a) of Annex III. 

GRN means the Government of the 

Republic of Namibia. 

HAMU has the meaning provided in 

Part B of Annex I. 

Implementation Letter has the 

meaning provided in Section 3.5. 

Implementing Entity has the meaning 

provided Part E of Annex I. 

Implementing Entity Agreement has 

the meaning provided in Part E of 

Annex I. 

Indicators has the meaning provided 

in paragraph 3(a) of Annex III. 

INP has the meaning provided in of 

Part A of Annex I. 

INP Activity has the meaning 

provided in Part D of Annex I. 

INP Innovation Fund has the meaning 

provided in Part D of Annex I. 

Inspector General has the meaning 

provided in Section 3.8(a). 

IPTT has the meaning provided in 

Part D of Annex I. 

Land Access and Management 

Activity has the meaning provided in 

Part D of Annex I. 

Livestock Market Efficiency Fund has 

the meaning provided in Part D of 

Annex I. 

Livestock Support Activity has the 

meaning provided in Part D of Annex I. 

M&E Annex has the meaning 

provided in Annex III. 

M&E Plan has the meaning provided 

in Annex III. 

Marketing Activity has the meaning 

provided in Part C of Annex I. 

MCA Act has the meaning provided in 

Section 2.2(a). 

MCA-Namibia has the meaning 

provided in Section 3.2(b). 

MCA-Namibia Procurement Rules has 

the meaning provided in Section 3.6. 

MCC has the meaning provided in the 

Preamble. 

MCC Environmental Guidelines has 

the meaning provided in Section 2.7(c). 

MCC Funding has the meaning 

provided in Section 2.3. 

MCC Gender Policy has the meaning 

provided of Part A of Annex I. 

MCC Web site has the meaning 

provided in Section 2.7. 

MoE has the meaning provided in of 

Part B of Annex I. 

MoF has the meaning provided in of 

Part C of Annex I. 

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. 

Namibia has the meaning provided in 

the Preamble. 

NCAs has the meaning provided of 

Part A of Annex I. 

NPC has the meaning provided in 

Section 3.2(b). 

NPC Act has the meaning provided in 

Section 3.2(b). 

NTA has the meaning provided of Part 

B of Annex I. 

NTF has the meaning provided in Part 

B of Annex I. 

OMB has the meaning provided in 

Section 3.8(b). 

OP 4.12 has the meaning provided 

Part A of Annex I. 

Party and Parties has the meaning 

provided in the Preamble. 

Performance Targets has the meaning 

provided in Part C of Annex I. 

Permitted Account has the meaning 

provided in Section 2.4. 

PPOs has the meaning provided Part 

D of Annex I. 

Principal Representative has the 

meaning provided in Section 4.2. 

Procurement Agent has the meaning 

provided in of Part E of Annex I. 

Program has the meaning provided in 

the Preamble. 

Program Funding has the meaning 

provided in Section 2.1. 

Program Implementation Agreement 

or PIA has the meaning provided in 

Section 3.1. 

Program Objective has the meaning 

provided in Section 1.2. 

Project Activity Indicators has the 

meaning provided in paragraph 3(a) of 

Annex III. 

Project Objective(s) has the meaning 

provided in Section 1.3. 

Project Objective Indicators has the 

meaning provided in paragraph 3(a) of 

Annex III. 

Project(s) has the meaning provided 

in Section 6.2(b). 

Provider has the meaning provided in 

Section 3.7(c). 

RAP has the meaning provided in Part 

A of Annex I. 

Resettlement means involuntary 

resettlement, specifically (a) the 

involuntary taking of land resulting in 

(i) relocation or loss of shelter; (ii) loss 

of assets or access to assets; or (iii) loss 

of income sources or means of 

livelihood, whether or not the affected 

persons must move to another location; 

or (b) the involuntary restriction of 

access to legally designated parks and 

protected areas resulting in adverse 

impacts on the livelihoods of the 

displaced persons. 

RSRC Activity has the meaning 

provided in Part B of Annex I. 

RSRCs has the meaning provided in 

Part B of Annex I. 

SEA has the meaning provided Part A 

of Annex I. 

SPAN has the meaning provided in 

Part C of Annex I. 

Target has the meaning provided in 

paragraph 3(a) of Annex III. 

Taxes has the meaning provided in 

Section 2.8(a). 

Tertiary Education Finance Activity 

has the meaning provided in Part B of 

Annex I. 

Textbook Activity has the meaning 

provided in Part B of Annex I. 

Tourism Project has the meaning 

provided in Part C of Annex I. 

US$ means United States Dollars. 

USG means the Government of the 

United States of America. 

VET has the meaning provided in Part 

B of Annex I. 

Vocational and Skills Training 

Activity has the meaning provided in 

Part B of Annex I. 

Annex VI MCA-Namibia Procurement 

Rules 

Part 1. Conduct and Administration of 

Procurement 

The principles, rules and procedures 

agreed herein (‘‘Procurement Rules’’ or 

‘‘Rules’’) shall govern the conduct and 

administration by MCA-Namibia of the 

procurement of the goods, works, 

consultant and non-consultant services 

that need to be acquired to implement 

the projects funded under the Compact 

(‘‘Project’’ or ‘‘Projects’’). 

Section 1. A. Procurement Rules: 

Procurement of Goods, Works and NonConsultant Services 

I. Introduction 

Purpose 

1.1 The principles, rules and 

procedures set out in this Section 1.A of 

these Rules shall govern the conduct 

and administration of the procurement 

of the goods, works and non-consultant 

services 1 that need to be acquired to 


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which are bid and contracted on the basis of 

performance of a measurable physical output, such 

as drilling, mapping, and similar operations. The 

Rules governing consultant services are set out 

below at Section 1.B. 

2These four principles are set out in Section 3.6 

of the Compact. 

3This includes those cases where MCA-Namibia 

employs an independent procurement agent, but 

excludes tenders awarded by MCC under its own 

procurement rules. 

4Firms and individuals from any country subject 

to sanction or restriction by law or policy of the 

United States are not eligible to compete for MCCfunded contracts. See Paragraph 1.8(e) of Section 

1.A of these Rules. 

5See Paragraph 2.5 of Section 1.A of these Rules. 

6Other than Force Account units, as permitted 

under Paragraph 3.8 of Section 1.A of these Rules. 

7As of July 2008, this list includes Cuba, Iran, 

North Korea, Sudan and Syria. 

implement the Projects under the 

Compact. 

General Considerations 

1.2.1 MCA-Namibia is responsible 

for implementing the Projects, and 

therefore for selecting the contractors 

and suppliers, and awarding and 

subsequently administering the 

contracts. While in practice the specific 

procurement rules and procedures to be 

followed in the implementation of a 

Project depend on the circumstances of 

the particular case, the following four 

considerations (the ‘‘Procurement 

Principles’’) are agreed to generally 

guide the application of these Rules: 2

(a) Open, fair and competitive 

procedures used in a transparent 

manner to solicit, award and administer 

contracts to procure goods, works and 

non-consultant services; 

(b) Solicitations for goods, works and 

non-consultant services shall be based 

upon a clear and accurate description of 

the goods, works or non-consultant 

services to be acquired; 

(c) Contracts shall be awarded only to 

qualified and capable suppliers and 

contractors that have the capability and 

willingness to perform the contracts in 

accordance with the terms and 

conditions of the applicable contracts 

and on a cost-effective and timely basis; 

and 

(d) No more than a commercially 

reasonable price (as determined, for 

example, by a comparison of price 

quotations and market prices) shall be 

paid to procure goods, works and nonconsultant services. 

1.2.2 MCA-Namibia shall ensure 

that all the procurements for goods, 

works and non-consultant services in 

furtherance of the Compact and funded 

in whole or in part, directly or 

indirectly, with MCC funding shall 

comply with these Procurement 

Principles. 

1.3 A competitive bidding process 

(‘‘Competitive Bidding’’ or ‘‘CB’’) shall 

serve as the standard for all 

procurements for all MCC-funded 

goods, works, and non-consultant 

services conducted in accordance with 

these Rules as set out in Sub-Section 

1.A.II below, except in those instances 

where MCC and MCA-Namibia agree to 

pursue other methods of procurement. 

Sub-Section 1.A.III describes these 

other methods of procurement and the 

circumstances under which their 

application would be more appropriate. 

The particular methods to be followed 

for procurements under the Compact 

shall be set out in Procurement Plans 

approved by MCC. 

1.4 Reserved. 

Applicability of Section 1.A of These 

Rules 

1.5 The procedures outlined in this 

Section 1.A of these Rules apply to all 

contracts for goods, works and nonconsultant services funded by MCC 

under the Compact.3

Eligibility 

1.6 To foster competition MCC 

permits firms and individuals from 

almost all countries 4 to offer goods, 

works, and non-consultant services for 

MCC-funded Projects. Any conditions 

for participation shall be limited to 

those that are essential to ensure the 

firm’s capability to fulfill the contract in 

question. 

1.7 In connection with any MCCfunded contract, MCA-Namibia shall 

not deny pre- or post-qualification to a 

firm for reasons unrelated to its 

capability and resources to perform the 

contract successfully; nor shall MCANamibia disqualify any bidder for such 

reasons. Consequently, MCA-Namibia 

should carry out due diligence on the 

legal, technical and financial 

qualifications of bidders to be assured of 

their capabilities in relation to the 

specific contract. 

1.8 As exceptions to the foregoing: 

(a) Firms of a country or goods 

manufactured in a country may be 

excluded if, (i) as a matter of law or 

official regulation, the Republic of 

Namibia prohibits commercial relations 

with that country, provided that MCC is 

satisfied that such exclusion does not 

preclude effective competition for the 

supply of goods or works required, or 

(ii) by an act of compliance with a 

decision of the United Nations Security 

Council taken under Chapter VII of the 

Charter of the United Nations, the 

Republic of Namibia prohibits any 

import of goods from, or payments to, a 

particular country, person, or entity. 

Where the Republic of Namibia 

prohibits payments to a particular firm 

or for particular goods by such an act of 

compliance, that firm may be excluded. 

(b) A firm which has been engaged to 

provide consultant services for the 

preparation or implementation of a 

Project, and any of its affiliates, shall be 

disqualified from subsequently 

providing goods, works, consultant or 

non-consultant services resulting from 

or directly related to the firm’s 

consultant services for such preparation 

or implementation. This provision does 

not apply to the various firms 

(consultants, contractors, or suppliers) 

which together are performing the 

contractor’s obligations under a turnkey 

or design and build contract.5

(c) Government-owned enterprises in 

the Republic of Namibia may participate 

if they are receiving no state subsidy 

and can demonstrate that they do not 

receive a cross-subsidy of income as a 

result of statutory powers.6

(d) A firm declared ineligible through 

MCC’s Excluded Parties Verification 

procedures located at http:// 

www.mcc.gov/documents/mcc-ppgeligibilityverification.pdf shall be 

ineligible to be awarded an MCC-funded 

contract. This would also remove from 

eligibility any procurement from a 

country or from a firm that is organized 

in or has its principal place of business 

or a significant portion of its operations 

in any country that is subject to sanction 

or restriction by law or policy of the 

United States.7

Advance Contracting and Retroactive 

Financing 

1.9 The process of identifying and 

selecting contractors for the provision of 

goods, works or non-consultant services 

to implement projects funded under the 

Compact before the Compact enters into 

force is referred to as advance 

contracting. Similarly, payments made 

under a contract that is signed prior to 

the Compact entering into force for 

which MCA-Namibia would seek 

reimbursement from MCC is known as 

retroactive financing. MCA-Namibia 

will not engage in any advance 

contracting or be entitled to any 

retroactive financing, without the prior 

approval of MCC. 

Joint Ventures 

1.10 Any firm may bid 

independently or in joint venture 

confirming joint and several liability, 

with domestic firms and/or with foreign 

firms, but MCC does not accept 

conditions of bidding which require 

mandatory joint ventures or other forms 

of mandatory association between firms. 


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8See Paragraphs 1.16.1, 1.16.2 and 1.16.3 of 

Section 1.A of these Rules. 

MCC Review 

1.11 MCC shall be entitled to review 

MCA-Namibia procurement procedures, 

documents, bid evaluations, award 

recommendations, and contracts to 

ensure that the procurement process is 

carried out in accordance with the 

agreed procedures. These review 

procedures are described in Attachment 

1 of these Rules. 

Misprocurement 

1.12 MCC does not fund 

expenditures for goods, works and nonconsultant services which have not been 

procured in accordance with the agreed 

provisions as detailed in the Compact, 

these Rules and the approved 

Procurement Plans.8 In such cases, MCC 

will declare misprocurement, and may 

cancel that portion of the Compact 

allocated to the goods, works or nonconsultant services that have been 

misprocured if corrective measures 

satisfactory to MCC are not taken. MCC 

may, in addition, exercise other 

remedies provided for under the 

Compact. Even once the contract is 

awarded after obtaining an approval 

from MCC, MCC may still declare 

misprocurement if it concludes that the 

approval was issued on the basis of 

incomplete, inaccurate, or misleading 

information furnished by MCA-Namibia 

or the terms and conditions of the 

contract had been modified without 

MCC approval. 

References to MCC 

1.13 MCA-Namibia shall use the 

following language when referring to 

MCC in procurement documents: 

The United States of America, acting 

through the Millennium Challenge 

Corporation (‘‘MCC’’) and the Republic of 

Namibia (the ‘‘Government’’) have entered 

into a Millennium Challenge Compact for 

Millennium Challenge Account assistance to 

help facilitate poverty reduction through 

economic growth in the Republic of Namibia 

(the ‘‘Compact’’) in the amount of [Insert 

amount of Compact] US$ (‘‘MCC Funding’’). 

MCA-Namibia on behalf of the Government 

intends to apply a portion of the proceeds of 

MCC Funding to eligible payments under this 

contract. Payments by MCA-Namibia will be 

subject, in all respects, to the terms and 

conditions, including restrictions on the use 

of MCC Funding, of the Compact. No party 

other than the Government and MCANamibia shall derive any rights from the 

Compact or have any claim to the proceeds 

of MCC Funding. 

Fraud and Corruption 

1.14 MCC requires that all 

beneficiaries of MCC funding, including 

MCA-Namibia and any bidders, 

suppliers, contractors, and 

subcontractors under any MCC-funded 

contracts observe the highest standards 

of ethics during the procurement and 

execution of such contracts. In 

pursuance of this policy, the following 

provisions shall apply. 

(a) For the purposes of these 

provisions, the terms set forth below are 

defined as follows: 

(i) ‘‘Corrupt practice’’ means the 

offering, giving, receiving, or soliciting, 

directly or indirectly, of anything of 

value to influence the actions of a 

public official (including MCA-Namibia 

and MCC staff and employees of other 

organizations taking or reviewing 

selection decisions) in the selection 

process or in contract execution or the 

making of any payment to any third 

party, in connection with or in 

furtherance of a contract, in violation of 

(aa) the United States Foreign Corrupt 

Practices Act of 1977, as amended (15 

U.S.C. 78a et seq.) (‘‘FCPA’’), or any 

other actions taken that otherwise 

would be in violation of the FCPA if the 

FCPA were applicable, or (bb) any 

applicable law in the Republic of 

Namibia; 

(ii) ‘‘Fraudulent practice’’ means any 

act or omission, including any 

misrepresentation, in order to influence 

(or attempt to influence) a selection 

process or the execution of a contract to 

obtain a financial or other benefit, or to 

avoid (or attempt to avoid) an 

obligation; 

(iii) ‘‘Collusive practice’’ means a 

scheme or arrangement between two or 

more parties, with or without the 

knowledge of MCA-Namibia, designed 

to establish prices at artificial, 

noncompetitive levels or to otherwise 

deprive MCA-Namibia of the benefits of 

free and open competition; 

(iv) ‘‘Coercive practice’’ means 

impairing or harming or threatening to 

impair or harm, directly or indirectly, 

persons or their property, to influence 

their participation in a procurement 

process, or affect the execution of a 

contract; 

(v) ‘‘Obstructive practice’’ means: 

(aa) Destroying, falsifying, altering or 

concealing of evidence material to the 

investigation or making false statements 

to investigators in order to impede an 

investigation into allegations of a 

corrupt, fraudulent, coercive, collusive, 

or prohibited practice; and threatening, 

harassing, or intimidating any party to 

prevent it from disclosing its knowledge 

of matters relevant to the investigation 

or from pursuing the investigation; and 

(bb) Acts intended to impede the 

exercise of the inspection and audit 

rights of MCC provided under the 

Compact; and 

(vi) ‘‘Prohibited practice’’ means any 

action that violates Section E 

(Compliance with Anti-Corruption 

Legislation), Section F (Compliance 

with Anti-Money Laundering 

Legislation) and Section G (Compliance 

with Terrorist Financing Statutes and 

Other Restrictions) of the ‘‘General 

Provisions Annex’’ that will be made a 

part of MCC-funded contracts and may 

be found on the MCC Web site at 

http://www.mcc.gov/guidance/compact/ 

general_provisions.pdf. 

(b) MCA-Namibia will reject a bid 

(and MCC will deny approval of a 

proposal for contract award) if it 

determines that the bidder 

recommended for award has, directly or 

through an agent, engaged in corrupt, 

fraudulent, collusive, coercive, 

obstructive or prohibited practices in 

competing for the contract in question. 

(c) MCC and MCA-Namibia have the 

right to sanction a bidder, supplier, 

contractor, or subcontractor, including 

declaring such party ineligible, either 

indefinitely or for a stated period of 

time, to be awarded an MCC-funded 

contract if at any time either MCANamibia or MCC determines that the 

bidder, supplier, contractor, or 

subcontractor has, directly or through 

an agent, engaged in corrupt, fraudulent, 

collusive, coercive, obstructive or 

prohibited practices in competing for, or 

in executing, such a contract. 

(d) MCC and MCA-Namibia have the 

right to require that a provision be 

included in solicitation documents and 

in MCC-funded contracts requiring a 

bidder, supplier, contractor, or 

subcontractor to permit MCA-Namibia, 

MCC, or any designee of MCC, to 

inspect its accounts, records and other 

documents relating to the submission of 

a bid or performance of a MCC-funded 

contract and to have them audited by 

auditors appointed by MCC or MCANamibia with the approval of MCC. 

(e) MCC has the right to cancel the 

portion of MCC funding allocated to a 

contract if it determines at any time that 

representatives of a beneficiary of the 

MCC funding engaged in corrupt, 

fraudulent, collusive, coercive, 

obstructive or prohibited practices 

during the selection process or the 

execution of a MCC-funded contract, 

without MCA-Namibia having taken 

timely and appropriate action 

satisfactory to MCC to remedy the 

situation. 

1.15 To the extent required by 

Namibian law, MCA-Namibia shall 

introduce, into bid forms for large 

contracts funded by MCC, an 

undertaking of the bidder to observe, in 

competing for and executing a contract, 

the country’s laws against fraud and 


hsrobinson on PROD1PC76 with NOTICES2
46750 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 

9When consultant services also need to be 

procured, the Procurement Plan must also include 

such procurements in accordance with the 

requirements at Section 1.5 Par. 1.24 of these Rules. 

10A ‘‘substantial deviation’’ is a change that adds 

a procurement action or actions that have a 

cumulative value of $10,000 or more, changes the 

procurement method, significantly increases or 

decreases the budget, or increases the budget 

allocations above the threshold for the designated 

method of procurement or selection procedure. 

11See Paragraphs 1.6, 1.7 and 1.8 of Section 1.A 

of these Rules. 

12For purposes of these Rules, ‘‘plant’’ refers to 

installed equipment, as in a production facility. 

13See Paragraphs. 2.49–2.54 of Section 1.A of 

these Rules for the bid evaluation procedures. 

14Also see Paragraphs 3.14 and 3.15 of Section 

1.A of these Rules for performance-based 

contracting. 

15 In revising the bidding documents in the 

second stage MCA-Namibia should respect the 

confidentiality of the bidders’ technical proposals 

used in the first stage, consistent with requirements 

of transparency and intellectual property rights. 

corruption (including bribery), as listed 

in the solicitation documents. In the 

event such an undertaking is not 

required by Namibian law, MCANamibia may introduce the undertaking 

with the approval of MCC. 

Procurement Plan 

1.16.1 MCA-Namibia shall prepare 

periodic procurement plans, that are 

updated at least semi-annually, for 

acquiring goods, works and nonconsultant services needed to 

implement the Compact (each a 

‘‘Procurement Plan’’). Each Procurement 

Plan shall be adopted by the governing 

body of MCA-Namibia and shall be 

submitted to MCC for its approval. Each 

Procurement Plan,9 typically covering a 

six (6) month period, (a) lists the 

particular contracts for the goods, 

works, and/or non-consultant services 

required to implement the Compact for 

the period covered in such Procurement 

Plan; (b) identifies the proposed method 

of procurement for such contracts as 

determined according to these Rules; 

and (c) sets forth the estimated value for 

each contract. 

1.16.2 MCA-Namibia shall ensure 

that all goods, works and nonconsultant services shall be procured 

using the procurement method 

approved in each Procurement Plan. 

Compliance, satisfactory to MCC, with 

the approved Procurement Plan shall be 

a condition precedent to MCC 

Disbursements or payments. 

1.16.3 MCA-Namibia shall not 

initiate any procurement action that is 

a substantial deviation 10 from the 

applicable adopted and approved 

Procurement Plan without the prior 

approval of MCC. If MCA-Namibia 

determines that such a deviation is 

necessary or appropriate, MCA-Namibia 

shall submit a request to MCC for its 

approval of an amended Procurement 

Plan. If approved by MCC, MCANamibia shall comply with any 

instructions contained in the MCC 

approval, including any publication 

requirements. Any substantial deviation 

from a Procurement Plan as approved 

and adopted shall be submitted to the 

governing body of MCA-Namibia for 

adoption of the amended Procurement 

Plan. 

II. Competitive Bidding 

A. General 

Introduction 

2.1 The objective of Competitive 

Bidding, as described in these Rules, is 

to provide all eligible prospective 

bidders 11 with timely and adequate 

notification of MCA-Namibia’s 

requirements and an equal opportunity 

to bid for the required goods, works and 

non-consultant services. 

Type and Size of Contracts 

2.2 The solicitation documents shall 

clearly state the type of contract to be 

entered into and contain the proposed 

contract provisions appropriate for the 

type of contract to be used. 

Reimbursable cost contracts are 

acceptable to MCC only in exceptional 

circumstances such as conditions of 

high risk or where costs cannot be 

determined in advance with sufficient 

accuracy. Such contracts shall include 

appropriate incentives to limit costs and 

shall reference MCC Cost Principles 

(‘‘MCC Cost Principles’’) found at the 

MCC Web site, http://www.mcc.gov. 

Requirements contracts, indefinite 

delivery-indefinite quantity (‘‘IDIQ’’) 

contracts and blanket purchase 

agreements may also be used. 

2.3 The size and scope of individual 

contracts will depend on the magnitude, 

nature, and location of the Project. For 

Projects requiring a variety of goods and 

works, separate contracts generally are 

awarded for the supply and/or 

installation of different items of 

equipment and plant 12 and for the 

works. 

2.4 For a Project requiring similar 

but separate items of goods or works, 

bids may be invited under alternative 

contract options that would attract the 

interest of both small and large firms 

which could be allowed, at their option, 

to bid for individual contracts (slices) or 

for a group of similar contracts 

(package). All bids and combinations of 

bids shall be received by the same 

deadline and opened and evaluated 

simultaneously so as to determine the 

bid or combination of bids offering the 

lowest evaluated cost to MCANamibia.13

2.5 In certain cases a turnkey 

contract may be required under which 

the design and engineering, the supply 

and installation of equipment, and the 

construction of a complete facility or 

works are provided under one contract. 

Alternatively, MCA-Namibia may 

remain responsible for the design and 

engineering, and invite bids for a single 

responsibility contract for the supply 

and installation of all goods and works 

required for the Project component. 

Design and build, and management 

contracting contracts may also be 

appropriate.14

Two-Stage Bidding 

2.6 In the case of turnkey contracts 

or contracts for large complex facilities 

or works of a special nature, or complex 

information and communication 

technology, it may be undesirable or 

impractical to prepare complete 

technical specifications in advance. In 

such a case, a Two-Stage Bidding 

procedure may be used, under which 

first un-priced technical proposals on 

the basis of a conceptual design or 

performance specifications are invited, 

subject to technical as well as 

commercial clarifications and 

adjustments, to be followed by amended 

bidding documents 15 and the 

submission of final technical proposals 

and priced bids in the second stage. 

Notification and Advertising 

2.7 On at least a semi-annual basis, 

MCA-Namibia shall publicize the 

procurements planned for the upcoming 

period as identified in the adopted 

Procurement Plan, which was approved 

by MCC (each a ‘‘General Procurement 

Notice’’). The General Procurement 

Notice shall be in a form acceptable to 

MCC and include information derived 

from the Procurement Plan and the 

name, telephone (or fax) number, and 

e-mail and postal address of MCANamibia agent responsible for 

procurement and the address of the Web 

site(s) where Specific Procurement 

Notices will be posted. If known, the 

scheduled date for availability of 

solicitation documents for each 

procurement (including prequalification 

or bidding documents) should be 

indicated. Such solicitation documents 

shall not be released to the public 

earlier than the date of publication of 

the General and Specific Procurement 

Notices. The General Procurement 

Notice shall be advertised in a manner 

to provide reasonable notice of planned 

procurements to potential suppliers and 

contractors. Advertisement of the 


hsrobinson on PROD1PC76 with NOTICES2
Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 46751 

16UNDB is a publication of the United Nations. 

Subscription information is available from: 

Development Business, United Nations, GCPO Box 

5850, New York, NY 10163–5850, USA (Web site: 

http://www.devbusiness.com; e-mail: 

dbsubscribe@un.org); Development Gateway Market 

is an electronic portal of Development Gateway 

Foundation, 1889 F Street, NW., Washington, DC 

20006, USA (Web site: http://www.dgmarket.com). 

17Also see Paragraph 2.44 of Section 1.A of these 

Rules. 

18The format of the bid security shall be in 

accordance with what was approved by MCC with 

its approval of MCA-Namibia’s Standard Bidding 

Documents and shall be issued by a reputable bank 

or financial institution selected by the bidder. If the 

institution issuing the security is located outside 

the Republic of Namibia, it shall have a 

correspondent financial institution located in the 

Republic of Namibia to make it enforceable. 

General Procurement Notice shall 

include posting in English at MCANamibia’s Web site (or such other 

appropriate Web site designated by 

MCA-Namibia and approved by MCC), 

the Development Gateway Market Web 

site at www.dgmarket.com (‘‘dgMarket’’) 

and the United Nations Development 

Business online Web site at 

www.devbusiness.com (‘‘UNDB 

Online’’).16 MCA-Namibia shall also 

publish the General Procurement Notice 

in a newspaper of wide circulation in 

the Republic of Namibia and in such 

other media outlets as appropriate or as 

requested from time to time by MCC. 

2.8 Invitations to prequalify or to 

bid, as the case may be, shall be 

advertised as Specific Procurement 

Notices (each, a ‘‘Specific Procurement 

Notice’’). For contracts for Goods and 

Non-consulting services valued at or 

over US $200,000 and contracts for 

Works valued at or over US $1,000,000, 

such invitations shall be published in at 

least one newspaper of national 

circulation in the Republic of Namibia, 

posted on MCA-Namibia’s Web site (or 

such other appropriate Web site 

designated by MCA-Namibia and 

approved by MCC) and at dgMarket Web 

site and UNDB Online. Publication in 

local print and broadcast and other 

national and international media is 

encouraged as long as the posting does 

not pre-date the required postings. 

For contracts for Works valued at or 

over US$200,000 and under 

US$1,000,000, such invitations shall be 

published in at least one newspaper of 

national circulation in the Republic of 

Namibia and posted on MCA-Namibia’s 

Web site (or such other appropriate Web 

site designated by MCA-Namibia and 

approved by MCC). The text of the 

notice may be subject to prior approval 

by MCC. Notification shall be given in 

sufficient time to enable prospective 

bidders to obtain prequalification or 

bidding documents and prepare and 

submit their responses taking into 

consideration the estimated value of the 

contract and period of advance notice 

given with the General Procurement 

Notice.17

Prequalification of Bidders 

2.9 Prequalification is usually 

necessary for large or complex works, or 

in any other circumstances in which the 

high costs of preparing detailed bids 

could discourage competition, such as 

custom designed equipment, industrial 

plants, specialized services, some 

complex information and technology 

and contracts to be let under turnkey, 

design and build, or management 

contracting. This also ensures that 

invitations to bid are extended only to 

those who have adequate capabilities 

and resources. Prequalification shall be 

based entirely upon the capability and 

resources of prospective bidders to 

perform the particular contract 

satisfactorily, taking into account their 

(a) experience and past performance on 

similar contracts, (b) capabilities with 

respect to personnel, equipment, and 

construction or manufacturing facilities, 

and (c) financial position. 

2.10 The invitation to prequalify for 

bidding on specific contracts or groups 

of similar contracts shall be advertised 

as described in Paragraphs 2.7 and 2.8 

above. The scope of the contract and a 

clear statement of the requirements for 

qualification shall be sent to those who 

responded to the invitation. All such 

applicants that meet the specified 

criteria shall be allowed to bid. MCANamibia shall inform all applicants of 

the results of prequalification. As soon 

as prequalification is completed, the 

bidding documents shall be made 

available to the qualified prospective 

bidders. For prequalification for groups 

of contracts to be awarded over a period 

of time, a limit for the number or total 

value of awards to any one bidder may 

be made on the basis of the bidder’s 

resources. The list of prequalified firms 

in such instances shall be updated 

periodically. Verification of the 

information provided in the submission 

for prequalification shall be confirmed 

at the time of award of contract, and 

award may be denied to a bidder that is 

judged no longer to have the capability 

or resources to perform the contract 

successfully. 

B. Bidding Documents 

General 

2.11 The bidding documents shall 

furnish all information necessary for a 

prospective bidder to prepare a bid for 

the goods, works and non-consultant 

services to be provided. While the detail 

and complexity of these documents may 

vary with the size and nature of the 

proposed bid package and contract, they 

generally include: Invitation to bid; 

instructions to bidders; form of bid; 

form of contract; conditions of contract, 

both general and special; specifications 

and drawings; relevant technical data 

(including of geological and 

environmental nature); list of goods or 

bill of quantities; delivery time or 

schedule of completion; and necessary 

appendices, such as formats for various 

securities. The basis for bid evaluation 

and selection of the lowest evaluated 

bid shall be clearly outlined in the 

instructions to bidders and/or the 

specifications. If a fee is charged for the 

bidding documents, it shall be 

reasonable and reflect only the cost of 

their printing and delivery to 

prospective bidders, and shall not be so 

high as to discourage qualified bidders. 

MCA-Namibia may use an electronic 

system to distribute bidding documents, 

provided that MCC is satisfied with the 

adequacy of such system. If bidding 

documents are distributed 

electronically, the electronic system 

shall be secure to avoid modifications to 

the bidding documents and shall not 

restrict the access of bidders to the 

bidding documents. Guidance on 

critical components of the bidding 

documents is given in the following 

paragraphs. 

2.12 MCA-Namibia shall use the 

appropriate Standard Solicitation 

Documents, including the Standard 

Bidding Documents, as approved by 

MCC pursuant to Part 3 of these Rules, 

and as may be modified to address 

Project-specific conditions, subject to 

approval by MCC when the change is 

material. To the extent possible, such 

changes shall be introduced through bid 

or contract data sheets or through 

special conditions of contract, and not 

by introducing changes in the standard 

wording of MCA-Namibia’s Standard 

Solicitation Documents. 

Validity of Bids and Bid Security 

2.13 Bidders shall be required to 

submit bids valid for a period specified 

in the bidding documents which shall 

be sufficient to enable MCA-Namibia to 

complete the comparison and 

evaluation of bids, review the 

recommendation of award with MCC (if 

required), and obtain all the necessary 

approvals so that the contract can be 

awarded within that period. 

2.14 MCA-Namibia has the option of 

requiring a bid security. When used, the 

bid security shall be in the amount and 

form specified in the bidding 

documents 18 and shall remain valid for 

a sufficient time beyond the validity 


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46752 Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 

19See § 2.52. 

20Refer to INCOTERMS 2000, published by the 

International Chamber of Commerce, Cours Albert 

1er, 75008 Paris, France, for definition of CIP. 

21Refer to INCOTERMS 2000, published by the 

International Chamber of Commerce, Cours Albert 

1er, 75008 Paris, France, for definition of EXW. 

22See Paragraphs 1.6, 1.7 and 1.8 of Section 1.A 

of these Rules. 

period of the bids, in order to provide 

reasonable time for MCA-Namibia to act 

if the security is to be called. Bid 

security shall be released to 

unsuccessful bidders once the contract 

has been signed with the winning 

bidder. In place of a bid security, MCANamibia may require bidders to sign a 

declaration accepting that if they 

withdraw or modify their bids during 

the period of validity or they are 

awarded the contract and they fail to 

sign the contract or to submit a 

performance security before the 

deadline defined in the bidding 

documents, the bidder will be 

suspended for a period of time from 

being eligible for bidding in any 

contract with MCA-Namibia. 

Language 

2.15.1 All advertisements for 

contracts and notices of contract awards 

whether posted at MCA-Namibia’s Web 

site, at dgMarket, or UNDB Online shall 

be posted in English. 

2.15.2 For all contracts, the 

solicitation documents as well as the 

documents responding to these 

solicitations, including the proposals, 

shall be prepared in English. All 

contracts shall be written in English and 

this language shall govern contractual 

relations between MCA-Namibia and 

the contractor. 

Clarity of Bidding Documents 

2.16 Bidding documents shall be so 

worded as to permit international 

competition and shall set forth clearly 

and precisely the work to be carried out, 

the location of the work, the goods to be 

supplied, the place of delivery or 

installation, the schedule for delivery or 

completion, minimum performance 

requirements, and the warranty and 

maintenance requirements, as well as 

any other pertinent terms and 

conditions. In addition, the bidding 

documents, where appropriate, shall 

define the tests, standards, and methods 

that will be employed to judge the 

conformity of equipment as delivered, 

or works as performed, with the 

specifications. Drawings shall be 

consistent with the text of the 

specifications, and an order of 

precedence between the two shall be 

specified. 

2.17 The bidding documents shall 

specify any factors, in addition to price, 

which will be taken into account in 

evaluating bids, and how such factors 

will be quantified or otherwise 

evaluated. If bids based on alternative 

designs, materials, completion 

schedules, etc., are permitted, 

conditions for their acceptability and 

the method of their evaluation shall be 

expressly stated.19

2.18 All prospective bidders shall be 

provided the same information, and 

shall be assured of equal opportunities 

to obtain additional information on a 

timely basis. MCA-Namibia shall 

provide reasonable access to Project 

sites for visits by prospective bidders. 

For works or complex supply contracts, 

particularly for those requiring 

refurbishing existing works or 

equipment, a pre-bid conference may be 

arranged whereby potential bidders may 

meet with representatives of MCANamibia to seek clarifications (in person 

or online). Minutes of the conference 

shall be provided to all prospective 

bidders with a copy included in the 

record of the procurement. Any 

additional information, clarification, 

correction of errors, or modifications of 

bidding documents shall be sent to each 

recipient of the original bidding 

documents in sufficient time before the 

deadline for receipt of bids to enable 

bidders to take appropriate actions. If 

necessary, the deadline shall be 

extended. MCC shall receive a copy of 

modifications to the bidding documents 

and be consulted for issuing its approval 

when the contract is subject to prior 

review by MCC. 

Standards 

2.19 Standards and technical 

specifications quoted in bidding 

documents shall promote the broadest 

possible competition, while assuring the 

critical performance or other 

requirements for the goods and/or works 

under procurement. As far as possible, 

MCA-Namibia shall specify 

internationally accepted standards such 

as those issued by the International 

Standards Organization with which the 

equipment or materials or workmanship 

shall comply. Where such international 

standards are unavailable or are 

inappropriate, national standards may 

be specified. 

In all cases, the bidding documents 

shall state that equipment, material, or 

workmanship meeting other standards, 

which promise at least substantial 

equivalence, will also be accepted. 

Use of Brand Names 

2.20 Specifications shall be based on 

relevant characteristics and/or 

performance requirements. References 

to brand names, catalog numbers, or 

similar classifications shall be avoided. 

If it is necessary to quote a brand name 

or catalog number of a particular 

manufacturer to clarify an otherwise 

incomplete specification, the words ‘‘or 

equivalent’’ shall be added after such 

reference. The specification shall permit 

the acceptance of offers for goods which 

have similar characteristics and which 

provide performance at least 

substantially equivalent to those 

specified. 

Pricing 

2.21 Bids for goods shall be invited 

on the basis of (a) CIP 20 for all goods 

manufactured abroad, including those 

previously imported, and (b) EXW21 for 

goods manufactured or assembled in the 

Republic of Namibia, plus the cost of 

inland transportation and insurance to 

the place of destination, subject to any 

modifications set forth in the 

solicitation documents. Bidders shall be 

allowed to arrange for ocean and other 

transportation and related insurance 

from any eligible source.22 Where 

installation, commissioning, or other 

similar services are required to be 

performed by the bidder, as in the case 

of ‘‘supply and installation’’ contracts, 

the bidder shall be required to quote for 

these services, in addition. 

2.22 In the case of turnkey contracts, 

the bidder shall be required to quote the 

price of the installed plant at site, 

including all costs for supply of 

equipment, marine and local 

transportation and insurance, 

installation, and commissioning, as well 

as associated works and all other 

services included in the scope of 

contract such as design, maintenance, 

operation, etc. 

2.23 Bidders for works contracts 

shall be required to quote unit prices or 

lump sum prices for the performance of 

the works. Bidders shall be allowed to 

obtain all inputs from any eligible 

source so that they may offer their most 

competitive bids. 

Price Adjustment 

2.24 Bidding documents shall state 

either (a) that bid prices will be fixed or 

(b) that price adjustments will be made 

to reflect any changes (upwards or 

downwards) in major cost components 

of the contract, such as labor, 

equipment, materials, and fuel. Price 

adjustment provisions might be 

included in contracts which extend 

beyond eighteen months with the 

approval of MCC. 

2.25 Prices may be adjusted by the 

use of a prescribed formula (or 


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23The format of the performance security shall be 

in accordance with the Standard Bidding 

Documents and shall be issued by a reputable bank 

or financial institution selected by the bidder. If the 

institution issuing the security is located outside 

the Republic of Namibia, it shall have a 

correspondent financial institution located in the 

Republic of Namibia to make it enforceable. 

formulae) which breaks down the total 

price into components that are adjusted 

by price indices specified for each 

component or, alternatively, on the 

basis of documentary evidence 

(including actual invoices) provided by 

the supplier or contractor. The use of 

the formula method of price adjustment 

is preferable to that of documentary 

evidence. The method to be used, the 

formula (if applicable), and the base 

date for application shall be clearly 

defined in the bidding documents. If the 

payment currency is different from the 

source of the input and corresponding 

index, a correction factor shall be 

applied in the formula, to avoid 

incorrect adjustment. 

Transportation and Insurance 

2.26 Bidding documents shall 

permit suppliers and contractors to 

arrange transportation and insurance 

from any eligible source. Bidding 

documents shall state the types and 

terms of insurance to be provided by the 

bidder. The indemnity payable under 

transportation insurance shall be at least 

110 percent of the contract amount 

denominated in United States dollars or 

local currency of the Republic of 

Namibia depending upon the currency 

of the contract. For works, a contractor’s 

‘‘all risk’’ form of policy usually shall be 

specified. For large Projects with several 

contractors on a site, a ‘‘wrap up’’ or 

total Project insurance arrangement may 

be obtained by MCA-Namibia, in which 

case MCA-Namibia shall seek 

competition for such insurance. 

2.27 Reserved. 

Currency Provisions 

2.28 Bidding documents shall state 

the currency or currencies in which 

bidders are to state their prices. All bids 

are to be denominated and paid only in 

United States dollars, the local currency 

of the Republic of Namibia, or a 

combination of the two as stated in the 

bidding documents. No other currency 

is permitted. 

Currency of Bid 

2.29 The bidding documents shall 

caution bidders that the bid price must 

be expressed in the currency requested. 

The requested currency may be either 

United States dollars, the currency of 

the Republic of Namibia, or a 

combination of the two. Bids may not be 

requested or expressed in any other 

currency. 

2.30 Reserved. 

Currency Conversion for Bid 

Comparison 

2.31 The bid price is the sum of all 

payments in United States dollars or the 

currency of the Republic of Namibia as 

applicable. For the purpose of 

comparing prices, bid prices shall be 

converted to either one of the two 

currencies as selected by MCA-Namibia 

and stated in the bidding documents. 

MCA-Namibia shall make this 

conversion by using the forward or 

selling (exchange) rates, as appropriate, 

for those currencies quoted by an 

official, public source (such as the Bank 

of Namibia), by a commercial bank or by 

an internationally circulated newspaper 

for similar transactions on a date 

selected in advance. Such source and 

date to be specified in the bidding 

documents, provided that the date shall 

not be earlier than four weeks prior to 

the deadline for the receipt of bids, nor 

later than the original date for the 

expiration of the period of bid validity. 

Currency of Payment 

2.32 Payment of the contract price 

shall be made in the currency (or 

currencies) as stated in the bidding 

documents. 

2.33 Reserved. 

Terms and Methods of Payment 

2.34 Payment terms shall be in 

accordance with the international 

commercial practices applicable to the 

specific goods, works and nonconsultant services. The contract shall 

provide for the payment of interest if 

payment is delayed due to the fault of 

MCA-Namibia or its agents beyond the 

time allowed in the contract; the rate of 

charges shall be specified in the 

contract. 

(a) Contracts for supply of goods shall 

provide for full payment on the delivery 

and inspection, if so required, of the 

contracted goods except for contracts 

involving installation, commissioning 

and testing, in which case a portion of 

the payment may be made after the 

supplier has complied with all its 

obligations under the contract. In major 

contracts for goods and plants, 

provision shall be made for partial 

payments for work done and, in 

contracts of long duration, for partial 

payments during the period of 

manufacture or assembly. 

(b) Contracts for works shall provide 

in appropriate cases for partial 

payments for work done in furtherance 

of contract performance and reasonable 

retention amounts to be released upon 

compliance with the contractor’s 

obligations under contract. 

2.35 Any payment for work done in 

furtherance of the contract shall be 

related to the estimated amount of these 

expenses and be specified in the 

bidding documents. Amounts and 

timing of other payments to be made, 

such as for materials delivered to the 

site for incorporation in the works, shall 

also be specified. Payment made in 

advance of work done, including 

payment made upon signature of a 

contract for goods or works (advance 

payments) requires prior approval of 

MCC and a commitment of a security 

guarantee or bond in the amount of the 

advance payment. The bidding 

documents shall specify the 

arrangements for any security required 

for advance payments. 

2.36 Bidding documents shall 

specify the payment method. Terms of 

payment may not be used as an 

evaluation criterion and may not affect 

the bid evaluation. 

Alternative Bids 

2.37 The bidding documents shall 

clearly indicate when bidders are 

allowed to submit alternative bids, how 

alternative bids should be submitted, 

how bid prices should be offered and 

the basis on which alternative bids shall 

be evaluated. 

Conditions of Contract 

2.38 The contract documents shall 

clearly define the scope of work to be 

performed, the goods to be supplied, the 

rights and obligations of MCA-Namibia 

and of the supplier or contractor, and 

the functions and authority of the 

engineer, architect, or construction 

manager, if one is employed by MCANamibia, in the supervision and 

administration of the contract. In 

addition to the general conditions of 

contract, any special conditions 

particular to the specific goods, works 

or non-consultant services to be 

procured and the location of the Project 

shall be included. 

Performance Security 

2.39 Bidding documents for works 

shall require a security in an amount 

sufficient to protect MCA-Namibia in 

case of breach of contract by the 

contractor. This security shall be 

provided in an appropriate form and 

amount, as specified by MCA-Namibia 

in the bidding document.23 The amount 

of the security may vary, depending on 

the type of security furnished and on 

the nature and magnitude of the works. 

A portion of this security shall extend 

sufficiently beyond the date of 

completion of the works to cover the 


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24To allow sufficient time to take the bids to the 

place announced for public bid opening. 

25See Paragraph 2.44 of Section 1.A of these 

Rules. 

26See Paragraph 2.50 of Section 1.A of these 

Rules regarding corrections. 

27See Paragraph 2.52 of Section 1.A of these 

Rules. 

28MCA-Namibia may ask for prices on a CIF basis 

(and bids compared on that same basis) only when 

defects liability or maintenance period 

up to final acceptance by MCA-Namibia. 

2.40 In contracts for the supply of 

goods, the need for performance 

security depends on the market 

conditions and commercial practice for 

the particular kind of goods. Suppliers 

or manufacturers may be required to 

provide a security to protect against 

nonperformance of the contract and to 

cover warranty obligations. The security 

shall be reasonable in amount. 

Liquidated Damages and Bonus Clauses 

2.41 Provisions for liquidated 

damages or similar provisions in an 

appropriate amount shall be included in 

the conditions of contract when delays 

in the delivery of goods, completion of 

works or failure of the goods, works or 

non-consultant services to meet 

performance requirements would result 

in extra cost or loss of revenue or loss 

of other benefits to MCA-Namibia. With 

prior approval of MCC, provision may 

also be made for a bonus to be paid to 

suppliers or contractors for completion 

of works or delivery of goods ahead of 

the times specified in the contract when 

such earlier completion or delivery 

would be of benefit to MCA-Namibia. 

Force Majeure 

2.42 The conditions of contract shall 

stipulate that failure on the part of the 

parties to perform their obligations 

under the contract will not be 

considered a default if such failure is 

the result of an event of force majeure 

as defined in the conditions of contract. 

Applicable Law and Settlement of 

Disputes 

2.43 The conditions of contract shall 

include provisions dealing with the 

applicable law and the forum for the 

settlement of disputes. Settlement of 

disputes shall take place in the Republic 

of Namibia with the possibility for 

international arbitration in the cases 

where the parties so agree. In the case 

of works contracts, supply and 

installation contracts, and turnkey 

contracts, the dispute settlement 

provision might also include 

mechanisms such as dispute review 

boards or adjudicators, which are 

designed to permit a speedier dispute 

settlement. 

C. Bid Opening, Evaluation, and Award 

of Contract 

Time for Preparation of Bids 

2.44 The time allowed for the 

preparation and submission of bids 

shall be determined with due 

consideration of the particular 

circumstances of the Project, the 

magnitude and complexity of the 

contract, and the period of advanced 

notice provided by the General 

Procurement Notice. Where large works 

or complex items of equipment are 

involved, the period shall be long 

enough to enable prospective bidders to 

conduct investigations before 

submitting their bids. In such cases, 

MCA-Namibia may convene pre-bid 

conferences and arrange site visits. 

Bidders shall be permitted to submit 

bids by mail or by hand. MCA-Namibia 

may also use electronic systems 

permitting bidders to submit bids by 

electronic means, provided MCC is 

satisfied with the adequacy of the 

system, including, inter alia, that the 

system is secure, maintains the 

confidentiality and authenticity of bids 

submitted, uses an electronic signature 

system or equivalent to keep bidders 

bound to their bids, and only allows 

bids to be opened with due 

simultaneous electronic authorization of 

the bidder and MCA-Namibia. In this 

case, bidders shall continue to have the 

option to submit their bids in hard copy. 

The deadline and place for receipt of 

bids shall be specified in the invitation 

to bid. 

Bid Opening Procedures 

2.45 The time for the bid opening 

shall be the same as for the deadline for 

receipt of bids or promptly 24 thereafter, 

and shall be announced, together with 

the place for bid opening, in the 

invitation to bid. MCA-Namibia shall 

open all bids at the stipulated time and 

place. Bids shall be opened in public; 

bidders or their representatives shall be 

allowed to be present (in person or 

online, when electronic bidding is used) 

and the general public, at the discretion 

of MCA-Namibia. The name of the 

bidder and total amount of each bid, 

and of any alternative bids if they have 

been requested or permitted, shall be 

read aloud (and posted online when 

electronic bidding is used) and recorded 

when opened and a copy of this record 

shall be sent to all bidders who 

submitted bids in time. Bids received 

after the time stipulated, as well as 

those not opened and read aloud at bid 

opening, shall not be considered. 

Clarifications or Alterations of Bids 

2.46 Except as otherwise provided 

in Paragraphs 2.63 and 2.64 of Section 

1.A of these Rules, bidders shall not be 

requested or permitted to alter their bids 

after the deadline for receipt of bids. 

MCA-Namibia shall ask bidders for 

clarification needed to evaluate their 

bids but shall not ask or permit bidders 

to change the substance or price of their 

bids after the bid opening. Requests for 

clarification and the bidders’ responses 

shall be made in writing, in hard copy 

and/or by an electronic system 

satisfactory to MCC.25

Confidentiality 

2.47 After the public opening of 

bids, information relating to the 

examination, clarification, and 

evaluation of bids and 

recommendations concerning awards 

shall not be disclosed to bidders or 

other persons not officially concerned 

with this process until the publication 

of contract award. 

Examination of Bids 

2.48 MCA-Namibia shall ascertain 

whether the bids (a) meet the eligibility 

requirements specified in Paragraphs 

1.6, 1.7 and 1.8 of Section 1.A of these 

Rules, (b) have been properly signed, (c) 

are accompanied by the required 

securities or required declaration signed 

as specified in Paragraph 2.14 of Section 

1.A of these Rules, (d) are substantially 

responsive to the bidding documents, 

and (e) are otherwise generally in order. 

If a bid is not substantially responsive, 

that is, it contains material deviations 

from or reservations to the terms, 

conditions, and specifications in the 

bidding documents, it shall not be 

considered further. The bidder shall not 

be permitted to correct or withdraw 

material deviations or reservations once 

bids have been opened.26

Evaluation and Comparison of Bids 

2.49 The purpose of bid evaluation 

is to determine the cost and benefits of 

each bid in a manner that permits a 

comparison to be made. Subject to 

Paragraph 2.58 of Section 1.A of these 

Rules, the bid best meeting the 

evaluation criteria and other non-price 

factors (including, but not limited to, 

warranties and delivery periods),27 but 

not necessarily the lowest submitted 

price, shall be selected for award. 

2.50 The bid price read aloud at the 

bid opening shall be adjusted to correct 

any arithmetical errors. Also, for the 

purpose of evaluation, adjustments shall 

be made for any quantifiable 

nonmaterial deviations or reservations. 

2.51 The evaluation and comparison 

of bids shall be on CIP prices for the 

supply of imported goods 28 and EXW 


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the goods are carried by sea and the goods are not 

containerized. CIF shall not be used for anything 

other than sea transport. CIP can be used for any 

mode of transport, including sea and multimodal 

transport. 

29The evaluation of bids shall not take into 

account: (a) Customs duties and other taxes levied 

on imported goods quoted CIP (which are excluded 

of custom duties); (b) sales and similar taxes levied 

in connection with the sale or delivery of the goods. 

30Referred to as ‘‘lowest evaluated bidder’’ and 

‘‘lowest evaluated bid,’’ respectively. 

prices, plus cost of inland transportation 

and insurance to the place of 

destination, for goods manufactured 

within the Republic of Namibia, 

together with prices for any required 

installation, training, commissioning, 

and other similar services.29

2.52 Bidding documents shall also 

specify the relevant factors in addition 

to price to be considered in bid 

evaluation and the manner in which 

they will be applied for the purpose of 

determining the lowest evaluated bid. 

For goods and equipment, other factors 

may be taken into consideration 

including, among others, delivery time, 

operating costs, efficiency and 

compatibility of the equipment, 

availability of service and spare parts, 

and related training, safety, and 

environmental benefits. The factors 

other than price to be used for 

determining the lowest evaluated bid 

shall, to the extent practicable, be 

expressed in monetary terms, or given a 

relative weight in the evaluation 

provisions in the bidding documents. 

2.53 Bid evaluation for works shall 

be strictly in monetary terms. Any 

procedure under which bids above or 

below a predetermined assessment of 

bid values are automatically 

disqualified is not acceptable. If time is 

a critical factor, the value of early 

completion to MCA-Namibia may be 

taken into account according to criteria 

presented in the bidding documents, 

only if the conditions of contract 

provide for commensurate penalties for 

noncompliance and MCC has granted 

prior approval. 

2.54 MCA-Namibia shall prepare a 

detailed report on the evaluation and 

comparison of bids setting forth the 

specific reasons on which the 

recommendation is based for the award 

of the contract. 

Domestic Preferences 

2.55 Application of domestic 

preferences for nationality or local 

content shall not be permitted. 

2.56 Reserved. 

Extension of Validity of Bids 

2.57 MCA-Namibia shall use best 

efforts to complete evaluation of bids 

and award of contract within the initial 

period of bid validity so that extensions 

are not necessary. An extension of bid 

validity, if justified by exceptional 

circumstances, shall be requested in 

writing from all bidders before the 

expiration date. The extension shall be 

for the minimum period required to 

complete the evaluation, obtain the 

necessary approvals, and award the 

contract. Whenever an extension of bid 

validity period is requested, bidders 

shall not be requested or be permitted 

to change the quoted (base) price or 

other conditions of their bid. Bidders 

shall have the right to refuse to grant 

such an extension. If the bidding 

documents require a bid security, 

bidders may exercise their right to 

refuse to grant such an extension 

without forfeiting their bid security, but 

those who are willing to extend the 

validity of their bid shall be required to 

provide a suitable extension of bid 

security. 

Postqualification of Bidders 

2.58 If bidders have not been 

prequalified, MCA-Namibia shall 

determine whether the bidder whose 

bid has been determined to best meet 

the evaluation criteria, subject to 

Section 2.49, has the capability and 

resources to effectively carry out the 

contract as offered in the bid. The 

criteria to be met shall be set out in the 

bidding documents, and if the bidder 

does not meet them, the bid shall be 

rejected. In such an event, MCANamibia shall make a similar 

determination and also confirm 

eligibility of the next-lowest evaluated 

bidder. 

Award of Contract 

2.59 MCA-Namibia shall award the 

contract, within the period of the 

validity of bids, to the bidder who meets 

the appropriate standards of capability 

and resources and whose bid has been 

determined (a) to be substantially 

responsive to the bidding documents 

and (b) to best meet the evaluation 

criteria, subject to Section 2.49.30 A 

bidder shall not be required, as a 

condition of award, to undertake 

responsibilities for work not stipulated 

in the bidding documents or otherwise 

to modify the bid as originally 

submitted. 

Publication of the Award of Contract 

2.60 After the award of contract, 

MCA-Namibia shall post at UNDB 

Online, at dgMarket and at MCANamibia’s Web site (or such other 

appropriate Web site designated by 

MCA-Namibia and approved by MCC) 

the results, identifying the procurement, 

the name of the winning bidder and the 

price, duration, and summary scope of 

the contract. The same information shall 

be sent to all bidders who have 

submitted bids. The posting at UNDB 

Online and at dgMarket shall be done 

monthly and at MCA-Namibia’s Web 

site (or such other appropriate Web site 

designated by MCA-Namibia and 

approved by MCC) at least weekly. The 

posting shall be in a format of a 

summarized table covering the previous 

period. All such postings shall be in 

English. 

Rejection of All Bids 

2.61 Bidding documents usually 

provide that MCA-Namibia may reject 

all bids. Rejection of all bids is justified 

when there is lack of effective 

competition, or bids are not 

substantially responsive or when bid 

prices are unreasonable or are 

substantially higher than existing 

budget. Lack of competition shall not be 

determined solely on the basis of the 

number of bidders. Even when only one 

bid is submitted, the bidding process 

may be considered valid if the bid was 

satisfactorily advertised and prices are 

reasonable in comparison to market 

values. MCA-Namibia may, after 

approval by MCC, reject all bids. If all 

bids are rejected, MCA-Namibia shall 

review the causes justifying the 

rejection and consider making revisions 

to the conditions of contract, design and 

specifications, scope of the contract, or 

a combination of these, before inviting 

new bids. 

2.62 If the rejection of all bids is due 

to lack of competition, wider advertising 

shall be considered. If the rejection is 

due to most or all of the bids being non 

responsive, new bids may be invited 

from the initially prequalified firms, or 

with approval of MCC from only those 

that submitted bids in the first instance. 

2.63 All bids shall not be rejected 

and new bids invited on the same 

bidding and contract documents solely 

for the purpose of obtaining lower 

prices. If the lowest evaluated 

responsive bid exceeds MCA-Namibia 

pre-bid cost estimates by a substantial 

margin, MCA-Namibia shall investigate 

causes for the excessive cost and 

consider requesting new bids as 

described in the previous paragraphs. 

Alternatively, MCA-Namibia may 

negotiate with the lowest evaluated 

bidder to try to obtain a satisfactory 

contract through a reduction in the 

scope and/or a reallocation of risk and 

responsibility which can be reflected in 

a reduction of the contract price. 

However, substantial reduction in the 

scope or modification to the contract 


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31Contracts shall not be divided into smaller 

units in order to make them less attractive for CB 

procedures; any proposal to divide a contract into 

smaller packages shall require the prior approval of 

MCC. 

documents generally will require 

rebidding. 

2.64 The prior approval of MCC 

shall be obtained before rejecting all 

bids, soliciting new bids, or entering 

into negotiations with the lowest 

evaluated bidder. Within two weeks of 

the rejection of all bids, MCA-Namibia 

shall post at dgMarket and MCANamibia’s Web site (or such other 

appropriate Web site designated by 

MCA-Namibia and approved by MCC) 

notification of the cancellation of the 

procurement. The notification shall 

identify the procurement and state 

briefly the reason for cancelling the 

procurement. The same information 

shall be sent to all bidders who have 

submitted bids. All such postings shall 

be in English. 

Debriefing 

2.65 The bidding documents shall 

specify that any bidder who wishes to 

ascertain the grounds on which its bid 

was not selected, may request an 

explanation from MCA-Namibia. MCANamibia shall promptly provide an 

explanation of why such bid was not 

selected, either in writing and/or in a 

debriefing meeting, at the option of 

MCA-Namibia. The requesting bidder 

shall bear all the costs of attending such 

a debriefing. 

D. Modified CB 

2.66 Reserved. 

2.67 Reserved. 

Procurement of Commodities 

2.68 Market prices of commodities, 

such as grain, animal feed, cooking oil, 

fuel, fertilizer, and metals, fluctuate 

depending upon the demand and 

supply at any particular time. Many are 

quoted in established commodity 

markets. Procurement often involves 

multiple awards for partial quantities to 

assure security of supply and multiple 

purchases over a period of time to take 

advantage of favorable market 

conditions and to keep inventories low. 

A list of prequalified bidders may be 

drawn up to whom periodic invitations 

are issued. Bidders may be invited to 

quote prices linked to the market price 

at the time of or prior to the shipments. 

Bid validities shall be as short as 

possible. Bid prices must be 

denominated and paid in either United 

States dollars or the local currency of 

the Republic of Namibia. The currency 

shall be specified in the bidding 

document. Bidding documents may 

permit telexed or faxed bids or bids 

submitted by electronic means, and in 

such cases either no bid security is 

required, or standing bid securities valid 

over a specified period of time have 

been submitted by prequalified bidders. 

Standard contract conditions and forms 

consistent with market practices shall 

be used. 

III. Other Methods of Procurement 

General 

3.1 This Section describes the 

methods of procurement that can be 

used where CB would not be the most 

economic and efficient method of 

procurement, and where other methods 

are deemed more appropriate.31

Paragraphs 3.2 to 3.7 of Section 1.A of 

these Rules describe the generally used 

methods in descending order of 

preference and the remaining 

paragraphs describe the methods used 

in specific circumstances. 

Limited Bidding (‘‘LB’’) 

3.2 Limited Bidding is essentially 

CB by direct invitation without open 

advertisement. It may be an appropriate 

method of procurement where (a) there 

are only a limited number of suppliers, 

or (b) other exceptional reasons may 

justify departure from full CB 

procedures. Under LB, MCA-Namibia 

shall seek bids from a list of potential 

suppliers or contractors broad enough to 

assure competitive prices, such list to 

include all suppliers or contractors 

when there are only a limited number. 

In all respects other than advertisement, 

CB procedures shall apply, including 

the publication of the contract award as 

indicated in Paragraph 2.60 of Section 

1.A of these Rules. 

3.3 Reserved. 

3.4 Reserved. 

Shopping 

3.5 Shopping is a procurement 

method based on comparing price 

quotations obtained from several 

suppliers (in the case of goods) or from 

several contractors (in the case of civil 

works), with a minimum of three, to 

assure competitive prices, and is an 

appropriate method for procuring 

readily available off the shelf goods or 

standard specification commodities of 

small value, or simple civil works of 

small value. (Small value is defined as 

procurements valued at less than 

US$200,000 in the aggregate from one 

contractor). Requests for quotations 

shall indicate the description and 

quantity of the goods or specifications of 

works or non-consultant services, as 

well as desired delivery (or completion) 

time and place. Quotations may be 

submitted by letter, facsimile or by 

electronic means. The evaluation of 

quotations shall follow the same 

principles as of Competitive Bidding. 

The terms of the accepted offer shall be 

incorporated in a purchase order or brief 

contract. 

Direct Contracting 

3.6 Direct contracting is contracting 

without competition (single-source) and 

may be an appropriate method under 

the following circumstances: 

(a) An existing contract for goods, 

works or non-consultant services, 

awarded in accordance with procedures 

acceptable to MCC, may be extended, 

within reasonable limits, for additional 

goods, works or non-consultant services 

of a similar nature. MCC shall be 

satisfied in such cases that no advantage 

could be obtained by further 

competition and that the prices on the 

extended contract are reasonable. 

Provisions for such an extension, if 

considered likely in advance, shall be 

included in the original contract. 

(b) Standardization of equipment or 

spare parts, to be compatible with 

existing equipment, may justify 

additional purchases from the original 

supplier. For such purchases to be 

justified, the original equipment shall be 

suitable, the number of new items shall 

generally be less than the existing 

number, the price shall be reasonable, 

and the advantages of another make or 

source of equipment shall have been 

considered and rejected on grounds 

acceptable to MCC. 

(c) The required equipment is 

proprietary and obtainable only from 

one source. 

(d) The contractor responsible for a 

process design requires the purchase of 

critical items from a particular supplier 

as a condition of a performance 

guarantee. 

(e) In exceptional cases, such as in 

response to natural disasters. 

(f) The value of the contract is under 

US$2,000. 

3.7 For all procurements valued 

above US$2,000, MCA-Namibia, after 

the contract signature, shall post at 

MCA-Namibia’s Web site or such 

appropriate Web site designated by 

MCA-Namibia and approved by MCC, at 

dgMarket and at UNDB Online the name 

of the contractor, price, duration, and 

summary scope of the direct contract. 

This publication may be done quarterly 

and in the format of a summarized table 

covering the previous period. 

Force Account 

3.8 Force Account, that is, 

construction by the use of the 

government’s own personnel and 


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32A government-owned construction unit that is 

not managerially and financially autonomous shall 

be considered a force account unit. ‘‘Force account’’

is otherwise known as ‘‘direct labor,’’

‘‘departmental forces,’’ or ‘‘direct work.’’

33BOO: Build, Own, Operate; BOT: Build, 

Operate, Transfer; BOOT: Build, Own, Operate, 

Transfer. 

34For projects such as toll roads, tunnels, harbors, 

bridges, power stations, waste disposal plants, and 

water distribution systems. 

35The use of Performance Based Procurement in 

MCC funded projects should be the result of the 

satisfactory technical analysis of the different 

options available and should be subject to prior 

approval by MCC for incorporation into the 

Procurement Plan. 

36Examples of such type of procurement are: (i) 

For the case of procurement of services: Provision 

of medical services, i.e. payments for specific 

services, like office visits, or defined laboratory 

tests, etc.; (ii) for the case of procurement of a 

facility: Design, Procurement, Construction, and 

Commissioning of a thermal power plant to be 

operated by a grantee; (iii) for the case of 

procurement of a facility and services: Design, 

Procurement, Construction (or Rehabilitation) of a 

road and operation and maintenance of the road for 

5 years after construction. 

equipment,32 may be the only practical 

method for constructing some kinds of 

works. The use of Force Account may be 

justified where: 

(a) Quantities of work involved 

cannot be defined in advance; 

(b) Works are small and scattered or 

in remote locations for which qualified 

construction firms are unlikely to bid at 

reasonable prices; 

(c) Work is required to be carried out 

without disrupting ongoing operations; 

(d) Risks of unavoidable work 

interruption are better borne by MCA 

Entity than by a contractor; and 

(e) There are emergencies needing 

prompt attention. 

3.9 Reserved. 

Procurement Agents and Fiscal Agents 

3.10 MCA-Namibia may wish (or be 

required by MCC) to employ, as their 

agents, firms specializing in handling 

procurement and/or financial 

management services. Such agents shall 

be selected following these Rules (or 

such other procedures as MCC may 

approve) and the procedures set out in 

the RFP requesting such agent services. 

The procurement agent shall follow all 

the procurement procedures provided 

for in the Compact, any agreement 

supplemental to the Compact (each a 

‘‘Supplemental Agreement’’), and these 

Rules, conduct procurement in 

conformance with a Procurement Plan 

approved by MCC, use appropriately the 

Standard Solicitation Documents as 

approved by MCC, follow review 

procedures, and properly document the 

procurement activity. Management 

contractors may be employed in a 

similar manner for a fee to contract for 

miscellaneous works involving 

reconstruction, repairs, rehabilitation, 

and new construction in emergency 

situations, or where large numbers of 

small contracts are involved. 

Inspection Agents 

3.11 Preshipment inspection and 

certification of imports is one of the 

safeguards MCA-Namibia may choose to 

adopt, particularly for any large import 

program. The inspection and 

certification usually covers quality, 

quantity, and reasonableness of price. 

Imports procured through CB 

procedures shall not be subject to price 

verification, but only verification for 

quality and quantity. However, imports 

not procured through CB may 

additionally be subjected to price 

verification. The inspection agents 

ordinarily are paid for on a fee basis 

levied on the value of the goods. 

3.12 Reserved. 

Procurement Under BOO/BOT/BOOT, 

Concessions and Similar Private Sector 

Arrangements 

3.13 Where MCC is participating in 

funding the cost of a Project procured 

under a BOO/BOT/ BOOT,33

concessions or similar types of private 

sector arrangements, either of the 

following procurement procedures shall 

be used, as provided for in the Compact 

including the Supplemental Agreements 

and further elaborated in the 

Procurement Plan approved by MCC: 

(a) The concessionaire or 

entrepreneur under the BOO/BOT/ 

BOOT or similar type of contract 34 shall 

be selected under CB procedures 

acceptable to MCC, which may include 

several stages in order to arrive at the 

optimal combination of evaluation 

criteria, such as the cost and magnitude 

of the financing offered, the 

performance specifications of the 

facilities offered, the cost charged to the 

user or purchaser, other income 

generated for MCA-Namibia or 

purchaser by the facility, and the period 

of the facility’s depreciation; or 

(b) If the said concessionaire or 

entrepreneur has not been selected in 

the manner set forth in Subparagraph (a) 

above, the goods, works, consultant or 

non-consultant services required for the 

facility and to be funded by MCC shall 

be procured in accordance with CB 

procedures defined in Sub-Section 1.A. 

II. 

Performance Based Procurement 

(‘‘Performance Based Procurement’’ or 

‘‘Output Based Procurement’’) 

3.14 Performance Based 

Procurement,35 also called Output 

Based Procurement, refers to 

competitive procurement processes 

resulting in a contractual relationship 

where payments are made for measured 

outputs instead of the traditional way 

where inputs are measured. The 

technical specifications define the 

desired result and which outputs will be 

measured including how they will be 

measured. Those outputs aim at 

satisfying a functional need both in 

terms of quality, quantity and reliability. 

Payment is made in accordance with the 

quantity of outputs delivered, subject to 

their delivery at the level of quality 

required. Reductions from payments (or 

retentions) may be made for lowerquality levels of outputs and, in certain 

cases, premiums may be paid for higher 

quality levels of outputs. The bidding 

documents do not normally prescribe 

the inputs, nor a work method for the 

contractor. The contractor is free to 

propose the most appropriate solution, 

based on mature and well proven 

experience and shall demonstrate that 

the level of quality specified in the 

bidding documents will be achieved. 

3.15 Performance Based 

Procurement can involve: (a) The 

provision of services to be paid on the 

basis of outputs; (b) design, supply, 

construction (or rehabilitation) and 

commissioning of a facility to be 

operated by MCA-Namibia; or (c) 

design, supply, construction (or 

rehabilitation) of a facility and provision 

of services for its operation and 

maintenance for a defined period of 

years after its commissioning.36 For the 

cases where design, supply and/or 

construction are required, 

prequalification is normally required 

and the use of Two-Stage Bidding as 

indicated in Paragraph 2.6 of Section 

1.A of these Rules will usually apply. 

3.16 Reserved. 

3.17 Reserved. 

Appendix 1: Review by MCC of 

Procurement Decisions 

Procurement Plans 

1. MCC shall review procurement 

arrangements proposed by MCANamibia in the Procurement Plan for its 

conformity with the Compact and these 

Rules. MCA-Namibia shall update the 

Procurement Plan at least on a semiannual basis. Any amendments 

proposed to the Procurement Plan shall 

be submitted to MCC for prior approval. 

Prior Review 

2. The thresholds for review of 

procurement decisions prior to award of 

a contract and any modification to such 

contracts are set out in Attachment 1 of 

these Rules. 


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37See Paragraphs 3.15–3.20 of Section 1.B of 

these Rules for particular types of consultants. 

Individual consultants are covered in Sub-Section 

1.B.V. 

38These four principles are set out in Section 3.6 

of the Compact. 

39As to these latter services, Section 1.A of these 

Rules shall apply. 

Post Review 

3. MCA-Namibia shall retain all 

documentation with respect to each 

contract during implementation of the 

Compact and up to five years after the 

expiration or termination of the 

Compact. This documentation is subject 

to examination by MCC, its oversight 

agencies and by its consultants and 

should include, but is not to be limited 

to, the signed original of the contract, 

the analysis of the respective proposals, 

recommendations for award, the record 

of MCC approvals, and the record of any 

bid challenge. MCA-Namibia shall also 

furnish such documentation to MCC 

upon request. If MCC determines that 

the goods, works or non-consultant 

services were not procured in 

accordance with the agreed procedures, 

as reflected in the Compact including 

the Supplemental Agreements and 

further detailed in the Procurement Plan 

approved by MCC, or that the contract 

itself is not consistent with such 

procedures, it may declare 

misprocurement as established in 

Paragraph 1.12 of Section 1.A of these 

Rules. MCC shall promptly inform 

MCA-Namibia of the reasons for such 

determination. 

Appendix 2 

Reserved. 

Appendix 3: Guidance to Bidders 

Bidders may learn about the 

Millennium Challenge Corporation and 

its programs at www.mcc.gov and about 

the MCC program in the Republic of 

Namibia at the Web site established by 

MCA-Namibia or such other appropriate 

Web site designed by MCA-Namibia and 

approved by MCC. 

Section 1.B. Program Procurement 

Rules: Procurement of Consultants and 

Consultant Services 

I. Introduction 

Purpose 

1.1 The principles, rules and 

procedures set out in this Section 1.B of 

these Rules shall govern the conduct 

and administration of the procurement 

of the consultants and consultant 

services that need to be acquired to 

implement the Projects under the 

Compact. 

1.2 Reserved 

1.3 For the purpose of these Rules, 

the term consultants includes a wide 

variety of entities, including consulting 

firms, engineering firms, construction 

managers, management firms, 

procurement agents, inspection agents, 

auditors, multinational organizations, 

investment and merchant banks, 

universities, research institutions, 

nongovernmental organizations, and 

individuals.37

General Considerations 

1.4.1 MCA-Namibia is responsible 

for implementing the Projects, and 

therefore for selecting the consultants, 

and awarding and subsequently 

administering the contracts. While in 

practice the specific procurement rules 

and procedures to be followed in the 

implementation of a Project depend on 

the circumstances of the particular case, 

the following Procurement Principles 

shall generally guide the application of 

these Rules: 

(a) Open, fair and competitive 

procedures used in a transparent 

manner to solicit, award and administer 

contracts to procure consultant services; 

(b) Solicitations for consultant 

services shall be based upon a clear and 

accurate description of the consultant 

services to be acquired; 

(c) Contracts shall be awarded only to 

qualified and capable consultants that 

have the capability and willingness to 

perform the contracts in accordance 

with the terms and conditions of the 

applicable contracts and on a costeffective and timely basis; and 

(d) No more than a commercially 

reasonable price (as determined, for 

example, by a comparison of price 

quotations and market prices) shall be 

paid to procure the consultant 

services.38

1.4.2 MCA-Namibia shall ensure 

that all the procurements for consultant 

services in furtherance of the Compact 

and funded in whole or in part, directly 

or indirectly, by MCC funding shall 

comply with these Procurement 

Principles. 

1.5 MCC considers that, in the 

majority of cases, these considerations 

can best be addressed through 

competition among qualified firms in 

which the selection is based on the 

quality of the proposal and the cost of 

the services to be provided. SubSections 1.B.II and III of these Rules 

describe the different methods of 

selection of consultants and the 

circumstances in which they are 

appropriate. Since Quality and Cost 

Based Selection (‘‘QCBS’’) is the most 

commonly recommended method, SubSection 1.B.II of these Rules describes in 

detail the procedures for QCBS. 

However, QCBS is not the most 

appropriate method of selection for all 

cases; therefore, Sub-Section 1.B.III 

describes other methods of selection 

and the circumstances in which they are 

more appropriate. 

1.6 The particular methods to be 

followed for the selection of consultants 

under the Compact shall be set out in 

the Procurement Plans. 

Applicability of Rules 

1.7 The consultant services to which 

Section 1.B of these Rules apply are of 

an intellectual and advisory nature. This 

Section of these Rules does not apply to 

other types of services in which the 

physical aspects of the activity 

predominate (for example, operation 

and maintenance of facilities or plants, 

surveys, exploratory drilling, aerial 

photography, satellite imagery, and 

services contracted on the basis of 

performance of measurable physical 

output).39

1.8 Reserved 

Conflict of Interest 

1.9 Consultants shall provide 

professional, objective, and impartial 

advice and at all times hold the interests 

of MCA-Namibia paramount, without 

any consideration for future work, and, 

in providing advice, consultants shall 

avoid conflicts with other assignments 

and their own corporate interests. 

Consultants shall not be hired for any 

assignment that would be in conflict 

with their prior or current obligations to 

other clients, or that may place them in 

a position of being unable to carry out 

the assignment in the best interest of 

MCA-Namibia. Without limitation on 

the generality of the forgoing, 

consultants shall not be hired under the 

circumstances set forth below: 

(a) Conflict between consultant 

activities and procurement of goods, 

works or non-consultant services: A 

firm that has been engaged by MCANamibia to provide goods, works, or 

non-consultant services for a Project, 

and each of its affiliates, shall be 

disqualified from providing consultant 

services related to those goods, works or 

non-consultant services. Conversely, a 

firm hired to provide consultant 

services for the preparation or 

implementation of a Project, and each of 

its affiliates, shall be disqualified from 

subsequently providing goods, works or 

non-consultant services resulting from 

or directly related to the firm’s 

consultant services for such preparation 

or implementation. 

(b) Conflict among consultant 

assignments: Neither consultants 

(including their personnel and subconsultants) nor any of their affiliates 


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40Firms and individuals from any country subject 

to sanction or restriction by law or policy of the 

United States are not eligible to compete for MCCfunded contracts. See Sub-paragraph 1.11(f) below. 

41For purposes of this Sub-paragraph, the 

relevant World Bank Group Anti-Corruption 

policies are set forth in the Guidelines On 

Preventing and Combating Fraud and Corruption in 

Projects financed by IBRD Loans and IDA Credits 

and Grants, and in the Anti-corruption Guidelines 

for IFC, MIGA, and World Bank Guarantee 

Transactions. 

42As of July 2008, this list includes Cuba, Iran, 

North Korea, Sudan and Syria. 

43Short list: see Paragraphs 2.6, 2.7 and 2.8 of 1.B 

of these Rules; Long list: a preliminary list of 

potential firms from which the short list would be 

established. 

shall be hired for any assignment that, 

by its nature, may be in conflict with 

another assignment of the consultants. 

(c) Relationships with MCA-Namibia 

staff: Consultants (including their 

personnel and sub-consultants) that 

have a business or family relationship 

with a member of MCA-Namibia staff 

(or of the Project implementing agency’s 

staff, or of a beneficiary of the Compact) 

who are directly or indirectly involved 

in any part of: (i) The preparation of the 

TOR of the contract, (ii) the selection 

process for such contract, or (iii) the 

supervision of such contract may not be 

awarded a contract, unless the conflict 

stemming from this relationship has 

been resolved in a manner acceptable to 

MCC throughout the selection process 

and the execution of the contract. 

Unfair Competitive Advantage 

1.10 Fairness and transparency in 

the selection process require that 

consultants or their affiliates competing 

for a specific assignment do not derive 

a competitive advantage from having 

provided consultant services related to 

the assignment in question. To that end, 

MCA-Namibia shall make available to 

all the short-listed consultants, together 

with the Request for Proposals (RFP), all 

information that would in that respect 

give a consultant a competitive 

advantage. 

Eligibility 

1.11 To foster competition MCC 

permits firms and individuals from 

almost all countries 40 to offer 

consultant services for MCC-funded 

Projects. Any conditions for 

participation shall be limited to those 

that are essential to ensure the firm’s or 

individual’s capability to fulfill the 

contract in question. However, 

(a) Consultants may be excluded if: (i) 

As a matter of law or official regulation, 

the Republic of Namibia prohibits 

commercial relations with the 

consultant’s country, provided that 

MCC is satisfied that such exclusion 

does not preclude effective competition 

for the consultant services required, or 

(ii) by an act of compliance with a 

decision of the United Nations Security 

Council taken under Chapter VII of the 

Charter of the United Nations, the 

Republic of Namibia prohibits any 

payments to a particular firm or person 

or for particular goods by such an act of 

compliance, that the firm or individual 

may be excluded. 

(b) Government-owned enterprises in 

the Republic of Namibia may participate 

if they are receiving no state subsidy 

and can demonstrate that they do not 

receive a cross-subsidy of income as a 

result of statutory powers. 

(c) As an exception to (b), 

government-owned universities or 

research centers may participate. 

(d) Government officials and civil 

servants may not be hired under 

consultant contracts, either as 

individuals or as members of a team of 

a consultant firm. 

(e) A firm declared ineligible by the 

World Bank for any reason, including in 

accordance with The World Bank Group 

Anti-Corruption policies 41 shall be 

ineligible to be awarded a MCC-funded 

contract during the period of time the 

firm is sanctioned by The World Bank. 

(f) Any person or entity that has been 

blacklisted from participation in 

procurements funded with The World 

Bank assistance or debarred or 

suspended from participation in 

procurements funded by the United 

States Federal Government or otherwise 

prohibited by applicable United States 

law or Executive Order or United States 

policies, including under any thenexisting anti-terrorist policies, shall be 

excluded from procurements awarded 

under the Compact. Without limiting 

the foregoing, this would remove from 

eligibility any procurement from a 

country or from a firm that is organized 

in or has its principle place of business 

or a significant portion of its operations 

in any country that is subject to sanction 

or restriction by law or policy of the 

United States.42

Advance Contracting and Retroactive 

Financing 

1.12 The process of identifying and 

selecting consultants to implement 

projects funded under the Compact 

before the Compact enters into force is 

referred to as advance contracting. 

Similarly, payments made under a 

contract that is signed prior to the 

Compact entering into force for which 

MCA-Namibia would seek 

reimbursement from MCC is known as 

retroactive financing. MCA-Namibia 

will not engage in any advance 

contracting or be entitled to any 

retroactive financing, without the prior 

approval of MCC. 

Associations Between Consultants 

1.13 Consultants may associate with 

each other in the form of a joint venture 

or of a sub-consultancy agreement to 

complement their respective areas of 

expertise, strengthen the technical 

responsiveness of their proposals and 

make available bigger pools of experts, 

provide better approaches and 

methodologies, and, in some cases, to 

offer lower prices. Such an association 

may be for the long term (independent 

of any particular assignment) or for a 

specific assignment. If MCA-Namibia 

employs an association in the form of a 

joint venture, the association should 

appoint one of the firms to represent the 

association; all members of the joint 

venture shall sign the contract and shall 

be jointly and severally liable for the 

entire assignment. Once the solicitation 

documents, including Requests for 

Proposals, are issued, any association in 

the form of joint venture or subconsultancy among short-listed firms, if 

applicable, shall be permissible only 

with the approval of MCA-Namibia, 

unless specifically permitted in the 

terms of the Request for Proposals. 

MCA-Namibia shall not require 

consultants to form associations with 

any specific firm or group of firms. 

MCC Review, Assistance, and 

Monitoring 

1.14 MCC reviews the hiring of 

consultants by MCA-Namibia to satisfy 

itself that the selection process is 

carried out in accordance with the 

provisions of these Rules. The 

thresholds for MCC review are 

described in Attachment 1 of these 

Rules. 

1.15 MCC does not furnish a short 

list or a long list 43 of firms or 

individuals to MCA-Namibia. However, 

if MCA-Namibia undertakes a 

shortlisting procedure before inviting 

proposals, the record of the shortlisting 

procedure together with the final short 

list shall be submitted to MCC for 

approval before MCA-Namibia issues 

the RFP if the estimated value of the 

anticipated contract exceeds the 

thresholds in Attachment 1 of these 

Rules. 

1.16 MCA-Namibia shall supervise 

the performance of the consultants and 

ensure that they carry out the 

assignments in accordance with the 

contract. Without assuming the 

responsibilities of MCA-Namibia or the 

consultants, MCC shall monitor the 

work as necessary to satisfy itself that it 


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44See Paragraph 1.24.1, 1.24.2, and 1.24.3 of 

Section 1.B of these Rules. 

is being carried out according to 

appropriate standards and is based on 

acceptable data. As appropriate, MCC 

may take part in discussions between 

MCA-Namibia and the consultants and, 

if necessary, may help MCA-Namibia in 

addressing issues related to the 

assignment. If a significant portion of 

Project preparation work is being 

carried out in the consultants’ home 

offices, MCC staff may, with approval of 

MCA-Namibia, visit these offices to 

review the consultants’ work. 

Misprocurement 

1.17 MCC does not fund 

expenditures for consultant services if 

the consultants or consultant services 

selected have not been contracted in 

accordance with the agreed provisions 

as detailed in the Compact and 

Supplemental Agreements, these Rules 

and the approved Procurement Plans.44

In such cases, MCC will declare 

misprocurement and cancel that portion 

of the Compact allocated to the services 

that have been misprocured if corrective 

measures satisfactory to MCC are not 

taken. MCC may, in addition, exercise 

other remedies provided for under the 

Compact. Even once the contract is 

awarded after obtaining an approval 

from MCC, MCC may still declare 

misprocurement if it concludes that the 

approval was issued on the basis of 

incomplete, inaccurate, or misleading 

information furnished by MCA-Namibia 

or the terms and conditions of the 

contract had been modified without 

MCC approval. 

References to MCC 

1.18 MCA-Namibia shall use the 

following language when referring to 

MCC in procurement documents: 

The United States of America, acting 

through the Millennium Challenge 

Corporation (‘‘MCC’’) and the Republic of 

Namibia (the ‘‘Government’’) have entered 

into a Millennium Challenge Compact for 

Millennium Challenge Account assistance to 

help facilitate poverty reduction through 

economic growth in the Republic of Namibia 

(the ‘‘Compact’’) in the amount of [Insert 

amount of Compact] US$ (‘‘MCC Funding’’). 

MCA-Namibia on behalf of the Government 

intends to apply a portion of the proceeds of 

MCC Funding to eligible payments under this 

contract. Payments by MCA-Namibia will be 

subject, in all respects, to the terms and 

conditions, including restrictions on the use 

of MCC Funding, of the Compact. No party 

other than the Government and MCANamibia shall derive any rights from the 

Compact or have any claim to the proceeds 

of MCC Funding. 

Training or Transfer of Knowledge 

1.19 If the assignment includes an 

important component for training or 

transfer of knowledge to MCA-Namibia 

staff or national consultants, the TOR 

shall indicate the objectives, nature, 

scope, and goals of the training program, 

including details on trainers and 

trainees, skills to be transferred, time 

frame, and monitoring and evaluation 

arrangements. The cost for the training 

program shall be included in the 

consultant’s contract and in the budget 

for the assignment. 

Language 

1.20 All advertisements for contracts 

and notices of contract awards, whether 

posted at MCA-Namibia’s Web site, at 

dgMarket, or UNDB Online, shall be 

posted in English. 

1.21 For all contracts, the 

solicitation documents as well as the 

documents responding to these 

solicitations, including the proposals, 

shall be prepared in English. All 

contracts shall be written in English and 

this language shall govern contractual 

relations between MCA-Namibia and 

the consultant. 

Fraud and Corruption 

1.22 MCC requires that MCANamibia (and other beneficiaries of 

MCC funding), as well as consultants 

and their subcontractors under any 

MCC-funded contracts, observe the 

highest standards of ethics during the 

procurement and execution of such 

contracts. In pursuance of this policy, 

the following provisions shall apply. 

(a) For the purposes of these 

provisions, the terms set forth below are 

defined as follows: 

(i) ‘‘Corrupt practice’’ means the 

offering, giving, receiving, or soliciting, 

directly or indirectly, of anything of 

value to influence the actions of a 

public official (including MCA-Namibia 

and MCC staff and employees of other 

organizations taking or reviewing 

selection decisions) in the selection 

process or in contract execution or the 

making of any payment to any third 

party, in connection with or in 

furtherance of a contract, in violation of 

(aa) the United States Foreign Corrupt 

Practices Act of 1977, as amended (15 

U.S.C. 78a et seq.) (‘‘FCPA’’), or any 

other actions taken that otherwise 

would be in violation of the FCPA if the 

FCPA were applicable, or (bb) any 

applicable law in the Republic of 

Namibia; 

(ii) ‘‘Fraudulent practice’’ means any 

act or omission, including any 

misrepresentation, in order to influence 

(or attempt to influence) a selection 

process or the execution of a contract to 

obtain a financial or other benefit, or to 

avoid (or attempt to avoid) an 

obligation; 

(iii) ‘‘Collusive practice’’ means a 

scheme or arrangement between two or 

more parties, with or without the 

knowledge of MCA-Namibia, designed 

to establish prices at artificial, 

noncompetitive levels or to otherwise 

deprive MCA-Namibia of the benefits of 

free and open competition; 

(iv) ‘‘Coercive practice’’ means 

impairing or harming or threatening to 

impair or harm, directly or indirectly, 

persons or their property, to influence 

their participation in a procurement 

process, or affect the execution of a 

contract; 

(v) ‘‘Obstructive practice’’ means: 

(aa) Destroying, falsifying, altering or 

concealing of evidence material to the 

investigation or making false statements 

to investigators in order to impede an 

investigation into allegations of a 

corrupt, fraudulent, coercive, collusive, 

or prohibited practice; and threatening, 

harassing, or intimidating any party to 

prevent it from disclosing its knowledge 

of matters relevant to the investigation 

or from pursuing the investigation; and 

(bb) Acts intended to impede the 

exercise of the inspection and audit 

rights of MCC provided under the 

Compact; and 

(vi) ‘‘Prohibited practice’’ means any 

action that violates Section E 

(Compliance with Anti-Corruption 

Legislation), Section F (Compliance 

with Anti-Money Laundering 

Legislation) and Section G (Compliance 

with Terrorist Financing Statutes and 

Other Restrictions) of the ‘‘General 

Provisions Annex’’ that will be made a 

part of MCC-funded contracts and may 

be found on the MCC Web site at http:// 

www.mcc.gov/guidance/compact/ 

general_provisions.pdf. 

(b) MCA-Namibia will reject a 

proposal (and MCC will deny approval 

of a proposal for contract award) if it 

determines that the consultant 

recommended for award has, directly or 

through an agent, engaged in corrupt, 

fraudulent, collusive, coercive, 

obstructive or prohibited practices in 

competing for the contract in question. 

(c) MCC has the right to cancel the 

portion of MCC funding allocated to a 

contract if it determines at any time that 

representatives of a beneficiary of the 

MCC funding engaged in corrupt, 

fraudulent, collusive, coercive, 

obstructive or prohibited practices 

during the selection process or the 

execution of a MCC-funded contract, 

without MCA-Namibia having taken 

timely and appropriate action 


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45When goods, works and non-consultant 

services also need to be procured, the Procurement 

Plan must also include such procurements in 

accordance with the requirements at Section 1.A, 

Paragraphs 1.16.1, 1.16.2, and 1.16.3 of these Rules. 

satisfactory to MCC to remedy the 

situation. 

(d) MCC and MCA-Namibia have the 

right to sanction a consultant, including 

declaring such party ineligible, either 

indefinitely or for a stated period of 

time, to be awarded an MCC-funded 

contract if at any time either MCANamibia or MCC determines that the 

bidder, supplier, contractor, or 

subcontractor has, directly or through 

an agent, engaged in corrupt, fraudulent, 

collusive, coercive, obstructive or 

prohibited practices in competing for, or 

in executing, such a contract. 

(e) MCC and MCA-Namibia have the 

right to require that a provision be 

included in solicitation documents and 

in MCC-funded contracts requiring a 

consultant to permit MCA-Namibia, 

MCC, or any designee of MCC, to 

inspect its accounts, records and other 

documents relating to the submission of 

a proposal or performance of a MCCfunded contract and to have them 

audited by auditors appointed by MCC 

or MCA-Namibia with the approval of 

MCC. 

1.23 To the extent required by 

Namibian law, MCA-Namibia shall 

introduce, into bid forms for large 

contracts funded by MCC, an 

undertaking of the bidder to observe, in 

competing for and executing a contract, 

the country’s laws against fraud and 

corruption (including bribery), as listed 

in the solicitation documents. In the 

event such an undertaking is not 

required by Namibian law, MCANamibia may introduce the undertaking 

with the approval of MCC. 

Procurement Plan 

1.24.1 MCA-Namibia shall prepare 

periodic procurement plans that are 

updated at least semi-annually, for 

acquiring consultant services needed to 

implement the Compact (‘‘Procurement 

Plan’’). Each Procurement Plan shall be 

adopted by the governing body of MCANamibia and shall be submitted to MCC 

for its approval. Each Procurement 

Plan,45 typically covering a six (6) 

month period, (a) lists the particular 

contracts for the consultant services 

required to implement the Compact for 

the period covered in such Procurement 

Plan; (b) identifies the proposed method 

of procurement and selection procedure 

for such contracts as determined 

according to the rules set out in these 

Rules; and (c) sets forth the estimated 

value for each consultant contract. 

1.24.2 MCA-Namibia shall ensure 

that all consultant services shall be 

procured using the procurement method 

and selection procedure approved in 

each Procurement Plan. Compliance, 

satisfactory to MCC, with the approved 

Procurement Plan shall be a condition 

precedent to MCC Disbursements. 

1.24.3 MCA-Namibia shall not 

initiate any procurement action that is 

a substantial deviation from the 

applicable adopted and approved 

Procurement Plan without the prior 

approval of MCC. If MCA-Namibia 

determines that such a deviation is 

necessary or appropriate, MCA-Namibia 

shall submit a request to MCC for its 

approval of an amended Procurement 

Plan. If approved by MCC, MCANamibia shall comply with any 

instructions contained in the MCC 

approval, including any publication 

requirements. Any substantial deviation 

from a Procurement Plan as approved 

and adopted shall be submitted to the 

governing body of MCA-Namibia for 

adoption of the amended Procurement 

Plan. 

II. Quality and Cost Based Selection 

The Selection Process 

2.1 QCBS uses a competitive process 

that takes into account the quality of the 

proposal and the cost of the services in 

the selection of the successful firm. Cost 

as a factor of selection shall be used 

judiciously. The relative weight to be 

given to the quality and cost shall be 

determined for each case depending on 

the nature of the assignment. 

2.2 The selection process includes 

the following steps unless MCC 

approves a modification in the 

procedure that is justified under the 

circumstances of a particular 

procurement: 

(a) Preparation of the Terms of 

Reference; 

(b) Preparation of a cost estimate and 

the budget; 

(c) Advertising; 

(d) Preparation of the short list of 

consultants; (This step is not 

mandatory. MCA-Namibia may at its 

discretion issue the Request for 

Proposals to all consultants expressing 

interest in the procurement.) 

(e) Preparation and issuance of the 

Request for Proposals which should 

include: the Letter of Invitation; 

Instructions to Consultants; the Terms 

of Reference and the proposed draft 

contract; 

(f) Receipt of proposals; 

(g) Evaluation of technical proposals: 

consideration of quality; 

(h) Public opening of financial 

proposals; 

(i) Evaluation of financial proposals; 

(j) Final evaluation of quality and 

cost; and 

(k) Negotiations and award of the 

contract to the selected firm. 

Terms of Reference (‘‘TOR’’) 

2.3 MCA-Namibia shall be 

responsible for preparing the TOR for 

the assignment. The TOR shall be 

prepared by a person(s) or a firm 

specialized in the area of the 

assignment. The scope of the services 

described in the TOR shall be 

compatible with the available budget. 

The TOR shall define clearly the 

objectives, goals, and scope of the 

assignment and provide background 

information (including a list of existing 

relevant studies and basic data) to 

facilitate the consultants’ preparation of 

their proposals. If transfer of knowledge 

or training is an objective, it should be 

specifically outlined along with details 

of number of staff to be trained, and so 

forth, to enable consultants to estimate 

the required resources. The TOR shall 

list the services and surveys necessary 

to carry out the assignment and the 

expected outputs (for example, reports, 

data, maps, surveys). It shall also list 

criteria that will be used to evaluate the 

bids. However, the TOR should not be 

too detailed or inflexible, so as to 

prevent competing consultants from 

proposing their own methodology and 

staffing. Firms shall be encouraged to 

comment on the TOR in their proposals. 

The respective responsibilities of MCANamibia, the implementing entity (if 

relevant) and the consultant should be 

defined clearly in the TOR. 

Cost Estimate (Budget) 

2.4 Preparation of a well thoughtthrough cost estimate is essential if MCC 

funding is to be managed properly. The 

cost estimate shall be based on MCANamibia’s assessment of the resources 

needed to carry out the assignment: staff 

time, logistical support, and physical 

inputs (e.g. vehicles and laboratory 

equipment). 

Advertising 

2.5.1 On at least a semi-annual basis, 

MCA-Namibia shall publicize in the 

General Procurement Notice (GPN) the 

procurements planned for consultant 

services for the upcoming period as 

identified in the adopted Procurement 

Plan which was approved by MCC. The 

General Procurement Notice shall be in 

the form acceptable to MCC and shall 

include information derived from the 

Procurement Plan and the name, 

telephone (or fax) number, and address 

of the MCA-Namibia agent responsible 

for procurement and the address of the 


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46UNDB is a publication of the United Nations. 

Subscription information is available from: 

Development Business, United Nations, GCPO Box 

5850, New York, NY 10163–5850, USA (Web site: 

http://www.devbusiness.com; e-mail: 

dbsubscribe@un.org); Development Gateway Market 

is an electronic portal of Development Gateway 

Foundation, 1889 F Street, NW., Washington, DC 

20006, USA (Web site: http://www.dgmarket.com). 

47Also see Paragraph 2.13 of Section 1.B of these 

Rules. 

48 Dollar thresholds defining ‘‘small’’ shall be 

determined in each case, taking into account the 

nature and complexity of the assignment, but 

generally will not exceed US$200,000. 

Web site(s) where Specific Procurement 

Notices will be posted. If known, the 

scheduled date for availability of 

solicitation documents for each 

procurement should be indicated. Such 

solicitation documents shall not be 

released to the public earlier than the 

date of publication of the General and 

Specific Procurement Notices. The 

General Procurement Notice shall be 

advertised in a manner to provide 

reasonable notice of planned 

procurements to potential consultants. 

Advertisement of the General 

Procurement Notice shall include 

posting in English at MCA-Namibia’s 

Web site (or such other appropriate Web 

site designated by MCA-Namibia and 

approved by MCC), dgMarket and 

UNDB Online.46 MCA-Namibia shall 

also publish the General Procurement 

Notice in a newspaper of wide 

circulation in the Republic of Namibia 

and in such other media outlets as 

appropriate or as requested from time to 

time by MCC. 

2.5.2 Request for Expressions of 

Interest (EOI), Request for Proposals 

(RFP) or Request for Consultant 

Qualifications (RCQ) shall be advertised 

as Specific Procurement Notices (SPN). 

For contracts valued less than or equal 

to US$500,000, such requests shall be 

published in at least one newspaper of 

national circulation in the Republic of 

Namibia and posted at MCA-Namibia’s 

Web site (or such other appropriate Web 

site designated by MCA-Namibia and 

approved by MCC). For contracts valued 

over US$500,000, MCA-Namibia must 

also post the Specific Procurement 

Notice at UNDB Online and at the 

dgMarket Web site. Publication in local 

print and broadcast and other national 

and international media is encouraged 

as long as the posting does not pre-date 

the required postings. The text of the 

notice, whether an EOI, an RFP or an 

RCQ may be subject to review by MCC. 

Notification shall be given in sufficient 

time to enable prospective consultants 

to obtain information, or the relevant 

solicitation documents, and prepare and 

submit their responses, taking into 

consideration the estimated value of the 

contract and period of advance notice 

given with the General Procurement 

Notice.47

Short List of Consultants 

2.6 At its discretion, MCA-Namibia 

may advertise for expressions of interest 

and invite only short-listed firms or 

individuals to submit proposals or 

qualifications as appropriate for the 

selection procedure chosen for the 

particular procurement, or MCANamibia may begin the procurement 

with an open request for proposals or 

consultation qualifications. When MCANamibia chooses to begin a procurement 

with a shortlisting procedure, MCANamibia is responsible for preparation 

of the short list. There is no maximum 

limit to the number of firms that may be 

short-listed and care should be taken 

not to eliminate any qualified 

participants from competing for the 

consultant contract. Consideration for 

shortlisting must be given to all firms or 

organizations—national and 

international—expressing interest and 

possessing the relevant qualifications. 

The method for developing a short list 

shall be fair and objective according to 

pre-announced criteria. 

2.7 Reserved. 

2.8 Selection based upon 

Consultants Qualifications is generally 

used for small assignments.48

Preparation and Issuance of the Request 

for Proposals (‘‘RFP’’) 

2.9 The RFP shall include (a) a 

Letter of Invitation, (b) Information to 

Consultants, (c) the TOR, and (d) the 

proposed contract. MCA-Namibia shall 

use the applicable Standard Proposal 

Documents, as approved byMCC 

pursuant to Part 3 of these Rules, as may 

be modified to address project-specific 

conditions, subject to MCC approval 

when the change is material. MCANamibia may use an electronic system 

to distribute the RFP, provided that 

MCC is satisfied with the adequacy of 

such system. If the RFP is distributed 

electronically, the electronic system 

shall be secure to avoid modifications to 

the RFP and shall not unfairly restrict 

the access of consultants to the RFP. 

Letter of Invitation (‘‘LOI’’) 

2.10 The LOI shall state the 

intention of MCA-Namibia to enter into 

a contract for the provision of 

consultant services, the source of funds, 

the details of MCA-Namibia and the 

date, time, and address for submission 

of proposals. 

Instructions to Consultants (‘‘ITC’’) 

2.11 The ITC shall contain all 

necessary information that would help 

consultants prepare responsive 

proposals, and shall bring as much 

transparency as possible to the selection 

procedure by providing information on 

the evaluation process and by indicating 

the evaluation criteria and methodology 

and their relative weights and the 

minimum passing quality score. The 

ITC may indicate an estimate of the 

level of key staff inputs (in staff time) 

required of the consultants or may 

provide the total budget, but neither 

item of information is required. The ITC 

shall specify the proposal validity 

period, which should be adequate for 

the evaluation of proposals, decision on 

award, MCC review, and finalization of 

contract negotiations. A detailed list of 

the information that should be included 

in the ITC is provided in Appendix 2 of 

this Section 1.B. 

Contract 

2.12 Sub-Section 1.B.IV of these 

Rules briefly discusses the most 

common types of contracts. MCANamibia shall use an appropriate form 

of contract acceptable to MCC. Any 

changes to standard conditions shall be 

introduced generally through the forms 

and procedures defined in the Standard 

Proposal Documents. When the 

Standard Proposal Documents are not 

appropriate (for example, for 

preshipment inspection and 

procurement services), MCA-Namibia 

shall use other contract forms 

acceptable to MCC. 

Receipt of Proposals 

2.13 MCA-Namibia shall allow 

enough time for the consultants to 

prepare their proposals. The time 

allowed shall depend on the 

assignment, the value of the contract, 

the difficulty of preparing a technical 

proposal and the duration of the 

advance notice given with posting of the 

General Procurement Notice. During 

this interval, the firms may request 

clarifications about the information 

provided in the RFP. MCA-Namibia 

shall provide these clarifications in 

writing and copy them to all firms either 

registered or on the short list (who 

intend to submit proposals). If 

necessary, MCA-Namibia shall extend 

the deadline for submission of 

proposals. The technical and financial 

proposals shall be submitted at the same 

time. No amendments to the technical 

or financial proposals shall be accepted 

after the deadline. To safeguard the 

integrity of the process, the technical 

and financial proposals shall be 


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submitted in separate sealed envelopes. 

The technical envelopes shall be opened 

immediately by a committee of officials 

drawn from the relevant departments 

(technical, finance or legal, as 

appropriate), after the closing time for 

submission of proposals. The financial 

proposals shall remain sealed and shall 

be properly secured until they are 

opened publicly. Any proposal received 

after the closing time for submission of 

proposals shall be returned unopened 

after the time for protest has expired. 

MCA-Namibia may use electronic 

systems permitting consultants to 

submit proposals by electronic means, 

provided MCC is satisfied with the 

adequacy of the system, including, inter 

alia, that the system is secure, maintains 

the confidentiality and authenticity of 

proposals submitted, uses an electronic 

signature system or equivalent to keep 

consultants bound to their proposals, 

and only allows proposals to be opened 

with due simultaneous electronic 

authorization of the consultant and 

MCA-Namibia. In this case, consultants 

shall continue to have the option to 

submit their proposals in hard copy. 

Evaluation of Proposals: Consideration 

of Quality and Cost 

2.14 The evaluation of the proposals 

shall be carried out in two stages: 1. 

quality, 2. cost. Evaluators of technical 

proposals shall not have access to the 

financial proposals until the technical 

evaluation, including any required MCC 

reviews and approvals, is concluded. 

Financial proposals shall be opened 

only thereafter. The evaluation shall be 

carried out in full conformity with the 

provisions of the RFP. 

Evaluation of the Quality 

2.15 MCA-Namibia shall evaluate 

each technical proposal (using a 

technical evaluation panel of generally 

three or more technical specialists in the 

sector), taking into account appropriate 

evaluation criteria as set out in the RFP. 

Evaluation criteria may include (a) the 

consultant’s relevant experience for the 

assignment, (b) the quality of the 

methodology proposed, and (c) the 

qualifications of the key staff proposed. 

The relative weight of each criterion 

shall be disclosed in the RFP. The score 

for each proposal may be determined 

based upon the total point system or 

other methodology for evaluating and 

comparing responses fairly. When 

applying the total point method, each 

criterion is marked on a scale of 1 to 100 

according to the specific needs of the 

assignment. 

2.16 MCA-Namibia may divide these 

criteria into sub-criteria. For example, 

sub-criteria under methodology might 

be innovation and level of detail. 

However, the number of sub-criteria 

should be limited to the essential. MCC 

recommends against the use of 

exceedingly detailed lists of sub-criteria 

that may render the evaluation a 

mechanical exercise more than a 

professional assessment of the 

proposals. If the shortlisting procedure 

was applied, the weight given to 

experience can be relatively modest, 

since this criterion has already been 

taken into account during the 

shortlisting process. More weight might 

be given to the methodology in the case 

of more complex assignments (for 

example, multidisciplinary feasibility or 

management studies). 

2.17 Evaluation of key personnel is 

recommended. Since key personnel 

ultimately determine the quality of 

performance, more weight shall be 

assigned to this criterion if the proposed 

assignment is complex. MCA-Namibia 

shall review the qualifications and 

experience of proposed key personnel in 

their curricula vitae, which must be 

accurate, complete, and signed by an 

authorized official of the consultant firm 

and the individual proposed. The 

individuals might be rated in the 

following three sub-criteria, as relevant 

to the task: 

(a) General qualifications: General 

education and training, length of 

experience, positions held, time with 

the consultant firm as staff, experience 

in developing countries, and so forth; 

(b) Adequacy for the assignment: 

education, training, and experience in 

the specific sector, field, subject, and so 

forth, relevant to the particular 

assignment; and 

(c) Experience in the region: 

knowledge of the local language, 

culture, administrative system, 

government organization, and so forth. 

2.18 MCA-Namibia shall evaluate 

each proposal on the basis of its 

responsiveness to the TOR. A proposal 

shall be considered unsuitable and shall 

be rejected at this stage if it does not 

respond to important aspects of the TOR 

or it fails to achieve a minimum 

technical score specified in the RFP. 

2.19 At the end of the process, MCANamibia shall prepare a technical 

evaluation report of the ‘‘quality’’ of the 

proposals and, in the case of contracts 

subject to prior review, submit it to 

MCC for its review and approval. The 

report shall substantiate the results of 

the evaluation and describe the relative 

strengths and weaknesses of the 

proposals. All records relating to the 

evaluation, such as individual mark 

sheets, shall be retained until 

completion of the Project and its audit. 

Evaluation of Financial Proposals 

2.20 After the evaluation of quality 

is completed and the required reviews 

and approvals have been issued, MCANamibia shall inform the consultants 

who have submitted proposals of the 

technical points assigned to each 

consultant and shall notify those 

consultants whose proposals did not 

meet the minimum qualifying mark or 

were considered nonresponsive to the 

RFP and the TOR that their financial 

proposals will be returned unopened 

after the signature of the contract. MCANamibia shall simultaneously notify the 

consultants that have secured at least 

the minimum qualifying mark of the 

date, time, and place set for opening the 

financial proposals. If the procurement 

is on the critical path for 

implementation of the Compact, the 

opening date may be defined to allow 

very short notice for consultants to 

make arrangements to attend the 

opening of the financial proposals. In 

such case, MCA-Namibia shall arrange 

for the record of the proceedings of the 

opening to be signed by at least two 

independent witnesses. The financial 

proposals shall be opened publicly in 

the presence of representatives of the 

consultants who choose to attend (in 

person or online). The name of the 

consultant, the technical points, and the 

proposed prices shall be read aloud (and 

posted online when electronic 

submission of proposals is used) and 

recorded when the financial proposals 

are opened. MCA-Namibia shall also 

prepare the minutes of the public 

opening and a copy of this record shall 

be included in the record of the 

procurement and provided to all 

consultants who submitted proposals. A 

copy of the record shall be sent to MCC 

when the proposed award is subject to 

prior review by MCC. 

2.21 MCA-Namibia shall then 

review the financial proposals. If there 

are any arithmetical errors, they shall be 

corrected. For the purpose of comparing 

proposals, the RFP shall require that all 

proposals be stated in the same currency 

(local currency of the Republic of 

Namibia, or US$ or a combination of the 

two) as required in the RFP. If there is 

a need to make a conversion between 

the two allowable currencies, the RFP 

shall specify the source of the exchange 

rate to be used and the date of that 

exchange rate, provided that the date 

shall not be earlier than four weeks 

prior to the deadline for submission of 

proposals, nor later than the original 

date of expiration of the period of 

validity of the proposal. Any proposal 

that deviates from the currency 


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requirement as stated in the RFP may be 

rejected as non-responsive. 

2.22 For the purpose of evaluation, 

the financial proposals shall include or 

exclude local identifiable direct or 

indirect taxes as instructed in the RFP. 

The financial proposal shall include all 

consultants’ remuneration and other 

expenses such as travel, translation, 

report printing, or secretarial expenses. 

When the total point evaluation 

methodology is used, the financial 

proposal with the lowest price may be 

given a financial score of 100 and other 

proposals given financial scores that are 

inversely proportional to their prices. 

Alternatively, a directly proportional or 

other methodology may be used in 

allocating the marks for the financial 

proposal. The methodology to be used 

shall be described in the RFP. 

Combined Quality and Price Evaluation 

2.23.1 The total score shall be 

obtained by weighing the quality and 

price scores and adding them. The 

weight for the financial proposal shall 

be assigned, taking into account the 

complexity of the assignment and the 

relative importance of quality. The 

proposed weightings for quality and 

price shall be specified in the RFP. The 

firm obtaining the highest total score 

shall be invited for negotiations. 

2.23.2 When the procurement is 

subject to MCC prior review for 

proposed award, MCA-Namibia, before 

inviting the firm obtaining the highest 

total score for negotiations, shall furnish 

to MCC for its review and approval a 

full description of the procurement 

process including an account of all 

protests and appeals and other 

significant problems or defects during 

the process and a description of how 

these were resolved. 

Negotiations and Award of Contract 

2.24 Negotiations shall include 

discussions of the TOR, the 

methodology, staffing, inputs by MCANamibia and special conditions of the 

contract. These discussions shall not 

substantially alter the original TOR or 

the terms of the contract, lest the 

procurement process be invalidated. 

Major reductions in work inputs should 

not be made solely to meet the budget. 

The final TOR and the agreed 

methodology shall be incorporated into 

‘‘Description of Services,’’ which shall 

form part of the contract. 

2.25 The selected firm should not be 

allowed to substitute key staff, unless 

both parties agree that undue delay in 

the selection process makes such 

substitution unavoidable or that such 

changes are critical to meet the 

objectives of the assignment. If this is 

not the case and if it is established that 

key staff were included in the proposal 

without confirming their availability, 

the firm may be disqualified and the 

process continued with the next ranked 

firm. The key staff proposed for 

substitution shall have qualifications 

equal to or better than the key staff 

initially proposed. 

2.26 Financial negotiations shall 

include clarification of the consultants’

tax liability in the Republic of Namibia 

(if any) to ensure that the contract is 

consistent with the provisions of the 

Compact and Supplemental Agreement. 

As payments under fixed-price contracts 

are based on work done and delivery of 

outputs (or products), the offered price 

shall include all costs (staff time, 

overhead, travel, hotel, etc.). 

Consequently, if the selection method 

for a fixed-price contract included price 

as a component, this price shall not be 

negotiated. In the case of Time-Based 

Contracts, payment is based on inputs 

(staff time and reimbursables) and the 

offered price shall include staff rates 

and an estimation of the amount of 

reimbursables. When the selection 

method includes price as a component, 

negotiations of staff rates should not 

take place, except in special 

circumstances, such as when staff rates 

offered are much higher than rates 

typically charged by consultants in 

similar circumstances for similar 

contracts. Consequently, the prohibition 

of negotiation does not preclude the 

right of MCA-Namibia to ask for 

clarifications, and, if fees are very high, 

to ask for change of fees, after due 

consultation with MCC. Reimbursables 

are to be paid on actual expenses 

incurred at cost, subject to limitations 

set out in MCC Cost Principles, upon 

presentation of receipts and therefore 

are not subject to negotiations. However, 

if MCA-Namibia wants to define 

ceilings for unit prices of certain 

reimbursables (like travel or hotel rates), 

it should indicate the maximum levels 

of those rates in the RFP or define a per 

diem in the RFP. If the contract permits 

reimbursement of any costs, the 

reimbursement rates shall be limited by 

applicable MCC Cost Principles (‘‘MCC 

Cost Principles’’) found at the MCC Web 

site, http://www.mcc.gov. 

2.27 If the negotiations fail to result 

in an acceptable contract, MCA-Namibia 

shall terminate the negotiations and 

invite the next ranked firm for 

negotiations. MCA-Namibia shall 

consult with MCC prior to taking this 

step. The consultant shall be informed 

of the reasons for termination of the 

negotiations. Once negotiations are 

commenced with the next ranked firm, 

MCA-Namibia shall not reopen the 

earlier negotiations. After negotiations 

are successfully completed and all 

required reviews and approvals have 

been issued, MCA-Namibia shall 

promptly notify other firms on the short 

list that they were unsuccessful. 

Publication of the Award of Contract 

2.28 After the award of contract, 

MCA-Namibia shall post at UNDB 

Online, at dgMarket and at MCANamibia’s Web site (or such other 

appropriate Web site designated by 

MCA-Namibia and approved by MCC) 

the results, identifying the procurement, 

the name of the winning consultant and 

the price, duration, and summary scope 

of the contract. The same information 

shall be sent to all consultants who have 

submitted proposals. The posting at 

UNDB Online and at dgMarket must be 

done monthly and at MCA-Namibia’s 

Web site (or such other appropriate Web 

site designated by MCA-Namibia and 

approved by MCC) at least weekly. The 

posting shall be in a format of a 

summarized table covering the previous 

period. All such postings shall be in 

English. 

Debriefing 

2.29 In the publication of contract 

award referred to in Paragraph 2.28 

above, MCA-Namibia shall specify that 

any consultant who wishes to ascertain 

the grounds on which its proposal was 

not selected should request an 

explanation from MCA-Namibia. MCANamibia shall promptly provide the 

explanation as to why such proposal 

was not selected, in writing and/or in a 

debriefing meeting, at the option of the 

consultant. The requesting consultant 

shall bear all the costs of attending such 

a debriefing. 

Rejection of All Proposals, and Reinvitation 

2.30 MCA-Namibia will be justified 

in rejecting all proposals only if all 

proposals are nonresponsive because 

they present major deficiencies in 

complying with the TOR, if they involve 

prices substantially higher than the 

original estimate, or if contracting for 

the services is no longer in the best 

interest of implementation of the 

Compact. In the case of a higher price, 

the feasibility of increasing the budget, 

or scaling down the scope of services 

with the firm should be investigated in 

consultation with MCC. Before all the 

proposals are rejected and new 

proposals are invited, MCA-Namibia 

shall notify MCC, indicating the reasons 

for rejection of all proposals, and shall 

obtain MCC’s approval before 

proceeding with the rejection and the 

new process. The new process may 


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49All provisions of Sub-Section 1.B.II shall be 

applied with the modifications and suppressions 

required by the method for selecting consultants 

used in the specific case. Advertisement is not 

required when single source selection is used. 

50This method shall not be used as a substitute 

for QCBS and shall be used only for the specific 

cases of very standard and routine technical nature 

where the intellectual component is minor. For this 

method the minimum qualifying mark shall be 70 

points or higher. 51 Dollar thresholds defining ‘‘small’’ shall be 

determined and justified in writing in each case, 

taking into account the nature and complexity of 

the assignment, but shall not exceed US$$200,000 

except in exceptional circumstances and 

specifically approved by MCC. 

include revising the RFP (including the 

short list) and the budget. These 

revisions shall be agreed upon with 

MCC. Within two weeks of the rejection 

of all proposals, MCA-Namibia shall 

post at dgMarket and MCA-Namibia’s 

Web site (or such other appropriate Web 

site designated by MCA-Namibia and 

approved by MCC) notification of the 

cancellation of the procurement. The 

notification shall identify the 

procurement and state briefly the 

reasons for cancellation. The same 

information shall be sent to all those 

who have submitted proposals. All such 

postings shall be in English. 

Confidentiality 

2.31 Information relating to 

evaluation of proposals and 

recommendations concerning awards 

shall not be disclosed to the consultants 

who submitted the proposals, or to other 

persons not officially concerned with 

the process, until the publication of the 

award of contract, except as provided in 

Paragraphs 2.20 and 2.27 of Section 1.B 

of these Rules. 

III. Other Methods of Selection 

General 

3.1 This Sub-Section 1.B.III 

describes the selection methods other 

than QCBS, and the circumstances 

under which they are acceptable. All the 

relevant 49 provisions of Sub-Section 

1.B.II (QCBS) shall apply whenever 

competition is used. 

Quality Based Selection (‘‘QBS’’) 

3.2 QBS may be appropriate for the 

following types of assignments: 

(a) Complex or highly specialized 

assignments for which it is difficult to 

define precise TORs and the required 

input from the consultants, and for 

which MCA-Namibia expects the 

consultants to demonstrate innovation 

in their proposals; 

(b) Assignments that have a high 

downstream impact and in which the 

objective is to have the best experts; and 

(c) Assignments that can be carried 

out in substantially different ways, such 

that proposals will not be comparable. 

3.3 In QBS, the RFP may request 

submission of a technical proposal only 

(without the financial proposal), or 

request submission of both technical 

and financial proposals at the same 

time, but in separate envelopes (twoenvelope system). The procurement 

shall be advertised according to the 

requirements set out in Paragraphs 2.5.1 

and 2.5.2 of Section 1.B, and may, at the 

discretion of MCA-Namibia, be 

preceded by a shortlisting procedure 

(see Paragraphs 2.6 to 2.8 of Section 

1.B). The RFP may provide either the 

estimated budget or the estimated 

number of key staff time, specifying that 

this information is given as an 

indication only and that consultants 

shall be free to propose their own 

estimates. 

3.4 If technical proposals alone were 

invited, after evaluating the technical 

proposals using the same methodology 

as in QCBS, MCA-Namibia shall ask the 

consultant with the highest ranked 

technical proposal to submit a detailed 

financial proposal. MCA-Namibia and 

the consultant shall then negotiate the 

financial proposal and the contract. All 

other aspects of the selection process 

shall be identical to those of QCBS, 

including the publication of the award 

of contract as described in Paragraph 

2.28. If consultants were requested to 

provide financial proposals initially 

together with the technical proposals, 

safeguards shall be built in as in QCBS 

to ensure that, after the negotiations are 

successfully concluded, the financial 

proposal of only the selected firm is 

opened and the rest are returned 

unopened. 

Selection Under a Fixed Budget (‘‘FBS’’) 

3.5 This method is appropriate 

when the assignment is simple and can 

be precisely defined. The RFP shall 

indicate the available budget and 

request the consultants to provide their 

best technical and financial proposals, 

which stay within the budget, in 

separate envelopes. The TOR should be 

particularly well prepared to make sure 

that the budget is sufficient for the 

consultants to perform the expected 

tasks. The procurement shall be 

advertised according to the 

requirements set out in Paragraphs 2.5.1 

and 2.5.2 of Section 1.B, and may, at the 

discretion of MCA-Namibia, be 

preceded by a shortlisting procedure 

(see Paragraphs 2.6 to 2.8 of Section 

1.B). Evaluation of all technical 

proposals shall be carried out first as in 

the QCBS method. Then the financial 

proposals shall be opened in public and 

prices shall be read aloud. Proposals 

that exceed the indicated budget shall 

be rejected. The consultant who has 

submitted the highest ranked technical 

proposal shall be selected and invited to 

negotiate a contract. The publication of 

the Award of Contract shall be as 

described in Paragraph 2.28. 

Least-Cost Selection (‘‘LCS’’) 

3.6 This method is appropriate for 

selecting consultants for assignments of 

a standard or routine nature (audits, 

engineering design of noncomplex 

works, etc.) where well established 

practices and standards exist. Under 

this method, a ‘‘minimum’’ qualifying 

mark for the ‘‘quality’’ is established. 

Proposals, to be submitted in two 

envelopes, are invited. The procurement 

shall be advertised according to the 

requirements set out in Paragraphs 2.5.1 

and 2.5.2 of Section 1.B, and may, at the 

discretion of MCA-Namibia, be 

preceded by a shortlisting procedure 

(see Paragraphs 2.6 to 2.8 of Section 

1.B). Technical proposals are opened 

first and evaluated. Those securing less 

than the minimum qualifying mark 50

are rejected, and the financial proposals 

of the rest are opened in public. The 

firm with the lowest price shall then be 

selected and the publication of the 

award of contract shall be as described 

in Paragraph 2.28. Under this method, 

the minimum qualifying mark shall be 

established, understanding that all 

proposals above the minimum compete 

only on ‘‘price.’’ The minimum 

qualifying mark shall be stated in the 

RFP. 

Selection Based on the Consultants’

Qualifications (‘‘CQS’’) 

3.7 This method may be used for 

small 51 assignments for which the need 

for preparing and evaluating 

competitive proposals is not justified. In 

such cases, MCA-Namibia shall prepare 

the TOR, request information on the 

consultants’ experience and competence 

relevant to the assignment, and select 

the firm with the most appropriate 

qualifications and references. The 

procurement shall be advertised 

according to the requirements set out in 

Paragraphs 2.5.1 and 2.5.2 of Section 

1.B and may, at the discretion of MCANamibia, be preceded by a shortlisting 

procedure (see Paragraphs 2.6 to 2.8 of 

Section 1.B). The selected firm shall be 

asked to submit a combined technical 

and financial proposal and then be 

invited to negotiate the contract. 

3.8 The publication of the award of 

contract shall be as described in 

Paragraph 2.28. 


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52 Dollar thresholds defining ‘‘very small’’ shall 

be determined in each case, taking into account the 

nature and complexity of the assignment, but shall 

not exceed USD2,000. 

53Percentage contracts directly relate the fees 

paid to the consultant to the estimated or actual 

project construction cost, the cost of the goods 

procured or inspected or other measure of service 

such as in the case of Procurement Agent, the value 

of contracts procured or for Fiscal Agent the 

amount of funds disbursed. Percentage contracts 

must be distinguished from cost-plus-percentage-ofcost type contracts which are prohibited as such 

contracts motivate a supplier, contractor or 

consultant to increase its profits by increasing cost 

of performance. 

Single-Source Selection (‘‘SSS’’) 

3.9 Single-source selection of 

consultants does not provide the 

benefits of competition with regard to 

quality and cost, lacks transparency in 

selection, and could encourage 

unacceptable practices. Therefore, 

single-source selection shall be used 

only in exceptional cases. The 

justification for single-source selection 

shall be examined in the context of the 

overall interests of MCA-Namibia and 

implementation of the Compact and the 

responsibility of MCC to ensure 

economy and efficiency and provide 

equal opportunity to all qualified 

consultants. 

3.10 Single-source selection may be 

appropriate only if it presents a clear 

advantage over competition: (a) For 

tasks that represent a natural 

continuation of previous work carried 

out by the firm (see Paragraph 3.11), (b) 

in emergency cases, such as in response 

to disasters and for consultant services 

required during the period of time 

immediately following the emergency, 

(c) for very small 52 assignments, or (d) 

when only one firm is qualified or has 

experience of exceptional worth for the 

assignment. 

3.11 When continuity for 

downstream work is essential, the initial 

RFP shall outline this prospect, and if 

practical, the factors used for the 

selection of the consultant shall take the 

likelihood of continuation into account. 

Continuity in the technical approach, 

experience acquired, and continued 

professional liability of the same 

consultant may make continuation with 

the initial consultant preferable to a new 

competition, subject to satisfactory 

performance in the initial assignment. 

For such downstream assignments, 

MCA-Namibia shall ask the initially 

selected consultant to prepare technical 

and financial proposals on the basis of 

the TOR furnished by MCA-Namibia, 

which shall then be negotiated. 

3.12 If the initial assignment was not 

awarded on a competitive basis or if the 

downstream assignment is substantially 

larger in value, a competitive process 

acceptable to MCC shall normally be 

followed in which the consultant 

carrying out the initial work is not 

excluded from consideration if it 

expresses interest. MCC will consider 

exceptions to this rule only under 

special circumstances and only when a 

new competitive process is not 

practicable. 

3.13 The publication of the award of 

contract shall be as described in Section 

1.B, Paragraph 2.28. 

3.14 Reserved. 

Selection of Particular Types of 

Consultants 

3.15 Reserved. 

3.16 Reserved. 

3.17 Procurement Agents and Fiscal 

Agents. MCA-Namibia may wish (or be 

required by MCC) to employ, as its 

agents, firms that specialize in handling 

procurement and/or financial 

management services. Such agents shall 

be selected following these Rules (or 

such other procedures as MCC may 

approve) and the procedures set out in 

the RFP requesting such agent services. 

When performing procurement agent 

services, the procurement agent shall 

follow the procurement procedures 

outlined in the Compact and 

Supplemental Agreements, in the 

Procurement Plan approved by MCC, 

and in these Rules. 

3.18 Inspection Agents. MCANamibia may wish to employ inspection 

agencies to inspect and certify goods 

prior to shipment or on arrival in the 

Republic of Namibia. The inspection by 

such agencies usually covers the quality 

and quantity of the goods concerned 

and reasonableness of price. Inspection 

agencies shall be selected using the 

procedures set out in the approved and 

adopted Procurement Plan. 

3.19 Banks. MCA-Namibia may 

require the services of investment and 

commercial banks, financial firms, and 

fund managers to implement the 

Compact. To procure these services, the 

RFP shall specify clearly how proposals 

will be presented and how they will be 

compared. 

3.20 Auditors. Auditors typically 

carry out auditing tasks under well 

defined TOR and professional 

standards. MCA-Namibia shall select 

auditors according to the instructions 

provided to it by MCC including MCC’s 

Standard Proposal Document for auditor 

services. 

3.21 Service Delivery Contractors. 

Projects in the social sectors in 

particular may involve hiring of large 

numbers of individuals who deliver 

services on a contract basis (for 

example, social workers, such as nurses 

and paramedics). The job descriptions, 

minimum qualifications, terms of 

employment, selection procedures, and 

the extent of MCC review of these 

procedures and documents shall be 

described in the Project documentation, 

and the contract shall be included in the 

Procurement Plan approved by MCC. 

IV. Types of Contracts and Important 

Provisions 

Types of Contracts 

4.1 Fixed-Price Contract (‘‘FixedPrice Contract’’). Fixed-Price Contracts 

may take various forms such as lump 

sum, unit price and percentage fees.53

Fixed-Price Contracts are used mainly 

for assignments in which the content 

and the duration of the services and the 

required output of the consultants are 

clearly defined. They are widely used 

for simple planning and feasibility 

studies, environmental studies, detailed 

design of standard or common 

structures, preparation of data 

processing systems, and so forth. 

Payments are linked to work done in 

performance of the contract and to 

outputs (deliverables), such as reports, 

drawings, bills of quantities, bidding 

documents, and software programs. 

Fixed-Price Contracts are easier to 

administer than Time-Based Contracts 

(defined below) because payments are 

due on clearly specified outputs. 

4.2 Time-Based Contract (‘‘TimeBased Contract’’). This type of contract 

is appropriate when it is difficult to 

define the scope and the length of 

services, either because the services are 

related to activities by others for which 

the completion period may vary, or 

because the input of the consultants 

required to attain the objectives of the 

assignment is difficult to assess. 

Payments are based on agreed hourly, 

daily, weekly, or monthly rates for staff 

(who are normally named in the 

contract) and on reimbursable items 

using actual expenses and/or agreed 

unit prices. Time-based contracts need 

to be closely monitored and 

administered by MCA-Namibia to 

ensure that the assignment is 

progressing satisfactorily and that 

payments claimed by the consultants 

are appropriate. For contracts that 

permit reimbursement of any costs, the 

reimbursement rates shall be limited by 

applicable MCC Cost Principles. The 

costs shall also be subject to audit in 

accordance with the requirements set 

out in the Compact and the 

Supplemental Agreements. 

4.3 Reserved. 


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54MCA-Namibia is encouraged to secure 

insurance for potential risks above these limits. 

4.4 Percentage Contract. These 

contracts are commonly used for 

architectural services. They may also be 

used for procurement and inspection 

agents. Percentage Contracts directly 

relate the fees paid to the consultant to 

the estimated or actual Project 

construction cost, or the cost of the 

goods procured or inspected. The 

contracts are negotiated on the basis of 

market norms for the services and/or 

estimated staff-month costs for the 

services, or competitively bid. It should 

be borne in mind that in the case of 

architectural or engineering services, 

Percentage Contracts implicitly lack 

incentive for economic design and are 

hence discouraged. Therefore, the use of 

such a contract for architectural services 

is recommended only it if is based on 

a fixed target cost and covers precisely 

defined services (for example, not works 

supervision). 

4.5.1 Indefinite Delivery and 

Indefinite Quantity (‘‘IDIQ’’) Contract. 

These contracts are used when MCANamibia needs to have ‘‘on call’’

specialized services to provide advice 

on a particular activity, the extent and 

timing of which cannot be defined in 

advance. These are commonly used to 

retain ‘‘advisers’’ for implementation of 

complex Projects, expert adjudicators 

for dispute resolution panels, 

institutional reforms, procurement 

advice, technical troubleshooting, and 

so forth, normally for a period of a year 

or more. 

4.5.2 Requirements and Blanket 

Purchase Agreements (‘‘BPA’’) 

Contracts. MCA-Namibia may use these 

contract types for reoccurring needs. 

Important Provisions 

4.6 RFPs shall clearly state that 

firms must express the price for their 

services in the currency stated in the 

RFP, which in every case must be either 

U.S. dollars or the local currency of the 

Republic of Namibia or a combination 

thereof. MCA-Namibia may require 

consultants to state the portion of the 

price representing costs in the local 

currency of the Republic of Namibia. 

Payment under the contract shall be 

made in the currency or currencies as 

stated in the RFP. 

4.7 Reserved. 

4.8 Payment Provisions. Payment 

provisions, including amounts to be 

paid, schedule of payments, and 

payment procedures, shall be set out in 

the RFP to the extent possible. Payments 

may be made at regular intervals, 

milestones and outputs as described in 

the RFP and agreed in the contract. 

4.9 Except as otherwise stated in any 

related provision of the Compact and 

Supplemental Agreements, payments 

shall be made promptly in accordance 

with the contract provisions. To that 

end: 

(a) Consultants will be paid directly 

by the Fiscal Agent; and, 

(b) The contract shall provide for the 

payment of interest if payment is 

delayed beyond the time allowed in the 

contract due to the fault of MCANamibia or its agents; the rate of charges 

shall be specified in the contract. 

4.10 Bid and Performance 

Securities. Bid and performance 

securities are not always recommended 

for consultants’ services. Their 

enforcement is often subject to judgment 

calls, they can be easily abused, and 

they tend to increase the costs to the 

consultant industry without evident 

benefits, which are eventually passed on 

to MCA-Namibia. However, they can be 

useful where Compact implementation 

would be damaged by poor consultant 

performance. 

4.11 Reserved. 

4.12 Conflict of Interest. The 

consultant shall not receive any 

remuneration in connection with the 

assignment except as provided in the 

contract. The consultant and its 

affiliates shall not engage in consultant 

or other activities that conflict with the 

interest of MCA-Namibia under the 

contract. The contract shall include 

provisions limiting future engagement 

of the consultant or other services 

resulting from or directly related to the 

firm’s consultant services in accordance 

with the requirements of Paragraphs 1.9 

and 1.10 of Section 1.B of these Rules. 

4.13 Professional Liability. The 

consultant is expected to carry out its 

assignment with due diligence and in 

accordance with prevailing standards of 

the profession. As the consultant’s 

liability to MCA-Namibia will be 

governed by the applicable law, the 

contract need not deal with this matter 

unless the parties wish to limit this 

liability. If they do so, they should 

ensure that (a) there must be no such 

limitation in case of the consultant’s 

gross negligence or willful misconduct; 

(b) the consultant’s liability to MCANamibia may in no case be limited to 

less than a multiplier of the total value 

of the contract to be indicated in the 

RFP and in the special conditions of the 

contract (the amount of such limitation 

will depend on each specific case); 54

and (c) any such limitation may deal 

only with the consultant’s liability 

toward MCA-Namibia and not with the 

consultant’s liability toward third 

parties. 

4.14 Staff Substitution. During an 

assignment, if substitution is necessary 

(for example, because of ill health or 

because a staff member proves to be 

unsuitable), the consultant shall 

propose other staff of at least the same 

level of qualifications for approval by 

MCA-Namibia. 

4.15 Applicable Law and Settlement 

of Disputes. The contract shall include 

provisions dealing with the applicable 

law and the forum for the settlement of 

disputes. Settlement of disputes shall 

take place in the Republic of Namibia 

with the possibility for international 

arbitration where the parties so agree. 

V. Selection of Individual Consultants 

5.1 Individual consultants are 

employed on assignments for which (a) 

teams of personnel are not required, (b) 

additional outside (home office) 

professional support is not required, 

and (c) the experience and 

qualifications of the individual are the 

paramount requirement. When 

coordination, administration, or 

collective responsibility may become 

difficult because of the number of 

individuals, it would be advisable to 

employ a firm. 

5.2 Individual consultants are 

selected on the basis of their 

qualifications for the assignment. The 

procurement shall be advertised 

according to the requirements set out in 

Paragraphs 2.5.1 and 2.5.2 of Section 

1.B and may, at the discretion of MCANamibia, be preceded by a shortlisting 

procedure (see Paragraphs 2.6 to 2.8 of 

Section 1.B). Consultants do not need to 

submit proposals but shall be selected 

through evaluation and comparison of 

qualifications. Individuals considered 

for comparison of qualifications shall 

meet the minimum relevant 

qualifications and those selected to be 

contracted by MCA-Namibia shall be the 

best qualified and shall be fully capable 

of carrying out the assignment. 

Capability is judged on the basis of 

evidence of knowledge and past 

experience relevant to the services to be 

provided and past performance based 

upon references and recommendations. 

5.3 From time to time, permanent 

staff or associates of a consultant firm 

may be available as individual 

consultants. In such cases, the conflict 

of interest provisions described in these 

Rules shall apply to the parent firm. 

5.4 Individual consultants may be 

selected on a sole-source basis with due 

justification in exceptional cases such as 

for: (a) Tasks that are a continuation of 

previous work that the consultant has 

carried out and for which the consultant 

was selected competitively; (b) certain 

assignments with total expected 


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duration of less than six months; (c) 

emergency situations resulting from 

natural disasters; and (d) when the 

individual is the only consultant 

qualified for the assignment. 

Appendix 1: Review by MCC of the 

Selection of Consultants 

Scheduling the Selection Process 

1. If required by the thresholds set 

forth in Attachment 1 of these Rules, 

MCC shall review the selection process 

for the hiring of consultants proposed 

by MCA-Namibia in the Procurement 

Plan to ensure compliance with the 

Compact and the Supplemental 

Agreements. Each Procurement Plan 

typically covers a period of at least six 

months and is updated at least semiannually. Any revisions proposed to the 

Procurement Plan shall be furnished to 

MCC for its prior approval. 

Prior Review 

The thresholds for review of 

procurement decisions prior to award of 

a contract and any modification to such 

contract are set out in Attachment 1 of 

these Rules. 

Post Review 

MCA-Namibia shall retain all 

documentation with respect to each 

contract for at least five years after the 

closing date of the Compact for 

examination by MCC, its auditors, its 

oversight authorities and independent 

auditors of MCA-Namibia. This 

documentation shall include, but shall 

not be limited to, the signed original of 

the contract, the analysis of the 

respective proposals, and 

recommendations for award. For 

contracts awarded on the basis of singlesource selection, documentation shall 

include the record of justification, the 

qualifications and experience of the 

consultants, and the signed original of 

the contract. MCA-Namibia shall also 

furnish such documentation to MCC 

upon request. MCC shall, if it 

determines that the contract was not 

awarded in accordance with the agreed 

procedures as reflected in the Compact, 

including the Supplemental Agreements 

and further elaborated in the 

Procurement Plan approved by MCC, or 

the contract itself is not consistent with 

such procedures, promptly inform 

MCA-Namibia that Paragraph 1.17 

(Misprocurement) of Section 1.B of 

these Rules shall apply and state the 

reasons for such determination. 

Appendix 2: Instructions to Consultants 

1. When procuring consultant 

services, MCA-Namibia shall use MCANamibia Standard Solicitation 

Documents including the Standard 

Proposal Document accepted by MCC. 

These documents shall include 

Instructions to Consultants and TORs 

providing adequate information on the 

following aspects of the assignment and 

the procurement process: 

(a) A description of the assignment; 

(b) Standard formats for the technical 

and financial proposals; 

(c) The names and contact 

information of officials to whom 

clarifications shall be addressed and 

with whom the consultants’

representative shall meet, if necessary; 

(d) Details of the selection procedure 

to be followed, including (i) a 

description of the two-stage process, if 

appropriate; (ii) a listing of the technical 

evaluation criteria and weight given to 

each criterion; (iii) the details of the 

financial evaluation; (iv) the relative 

weight given to quality and price in the 

case of QCBS; (v) the minimum pass 

score for quality; and (vi) the details on 

the public opening of financial 

proposals; 

(e) Estimate of the level of key staff 

inputs (in staff months) required of the 

consultants or an indicative value of the 

proposed contract, but generally not 

both; 

(f) Indication of minimum experience, 

academic achievement, and so forth, 

expected of key staff; 

(g) Details and status of MCC funding; 

(h) Information on negotiations; 

financial and other information that 

shall be required of the selected firm 

during negotiation of the contract; 

(i) Deadline for submission of 

proposals; 

(j) Currency(ies) in which the costs of 

services shall be expressed, compared, 

and paid; 

(k) Reference to any local laws that 

may be particularly relevant to the 

proposed consultants’ contract; 

(l) Statement that the firm and any of 

its affiliates shall be disqualified from 

providing downstream goods, works, 

consultant or non-consultant services 

under the Project if, in the judgment of 

MCA-Namibia or MCC, such activities 

constitute a conflict of interest with the 

services provided under the assignment; 

(m) Method in which the proposal 

shall be submitted, including the 

requirement that the technical proposals 

and financial proposals be sealed and 

submitted separately in a manner that 

shall ensure that the technical 

evaluation is not influenced by price; 

(n) Request that the invited firm (i) 

acknowledges receipt of the RFP and (ii) 

informs MCA-Namibia whether or not it 

will be submitting a proposal; 

(o) If applicable, the short list of 

consultants being invited to submit 

proposals and whether or not 

associations between short-listed 

consultants are acceptable; 

(p) Period for which the consultants’

proposals shall be held valid and during 

which the consultants shall undertake 

to maintain, without change, the 

proposed key staff, and shall hold to 

both the rates and total price proposed; 

in case of extension of the proposal 

validity period, the right of the 

consultants not to maintain their 

proposal; 

(q) Anticipated date on which the 

selected consultant shall be expected to 

commence the assignment; 

(r) Statement regarding tax liabilities 

in reference to and accordance with the 

Compact and the Supplemental 

Agreements; 

(s) Details of the services, facilities, 

equipment, and staff to be provided by 

MCA-Namibia; 

(t) Phasing of the assignment, if 

appropriate; likelihood of follow up 

assignments; 

(u) Procedure to handle clarifications 

about the information given in the RFP; 

(v) Any conditions for subcontracting 

part of the assignment; and 

(w) Notice of Bid Challenge System. 

Appendix 3: Guidance to Consultants 

Consultants can find information 

about the Millennium Challenge 

Corporation and its programs at 

www.mcc.gov and about MCC Programs 

in the Republic of Namibia at the Web 

site established by MCA-Namibia (or 

such other appropriate Web site 

designated by MCA-Namibia and 

approved by MCC). 

Part 2. Reports and Records 

Complete and uniform procurement 

records shall be maintained according to 

a standard format approved by MCC. 

MCA-Namibia shall also maintain and 

submit quarterly to MCC a cumulative 

report of all procurement activity 

(‘‘Procurement Performance Report’’), 

including explanations of any variance 

from the Procurement Plan, in the 

format mandated by MCC. The standard 

form with instructions is found on the 

MCC Web site, http://www.mcc.gov. 

Part 3. Standard Solicitation Documents 

MCA-Namibia shall develop standard 

documents to invite quotations, bids, 

proposals and qualifications (‘‘Standard 

Solicitation Documents’’) including 

standard bidding and proposal 

documents (‘‘Standard Bidding 

Documents’’ and ‘‘Standard Proposal 

Documents’’). Any Standard Solicitation 

Document used to procure contracts 

valued over US$100,000 must be 

available in English and is subject to 

review and approval by MCC. The 


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instructions to bidders and consultants 

in Standard Solicitation Documents 

must set out or reference the rules and 

procedures governing the procurement. 

The instructions to bidders and 

instructions to consultants must also 

state the currency or currencies for the 

quotes, bids or financial proposals, as 

appropriate, and shall specify that 

payment be made in either United 

States dollars or the local currency of 

the Republic of Namibia. 

The terms and conditions of 

procurement contracts shall be set out 

in the applicable solicitation 

documents. The terms and conditions 

shall include a provision stipulating the 

governing law and the procedures for 

resolving contract disputes. The term 

and conditions also shall include 

provisions as required or specified by 

these Rules and other Compact 

documents including provisions that 

stipulate (a) MCC status and rights; (b) 

limitations on use or treatment of MCC 

funding; (c) procurement requirements; 

(d) records and information, access, 

audits and reviews, and reports; (e) 

compliance with rules on prohibited 

activities, restricted parties, and 

eligibility requirements of prohibited 

source provisions in accordance with 

then-applicable U.S. law, regulations 

and policy; (f) publicity, information 

and marketing; (g) insurance 

requirements; (h) conflict of interest; 

and (i) inconsistencies, as well as any 

other terms and conditions as applicable 

to a contract or agreement of that nature 

or otherwise as MCA-Namibia, solely 

upon the written instructions of MCC, 

may require from time to time. A 

summary of the applicable provisions 

described in (a) through (i) of this 

Section may be found on the MCC Web 

site at http://www.mcc.gov/guidance/ 

compact/general_provisions.pdf. MCC 

has the right to review and approve any 

proposed contracts and any material 

modifications to any executed contract. 

Part 4. Review and Approval 

Requirements 

Certain important procurement 

actions and decisions shall be subject to 

prior review or approval by levels of 

authority within MCA-Namibia or by 

MCC, as provided in Attachment 1 of 

these Rules. This system of review and 

approval requirements is intended to 

ensure adequate oversight and 

monitoring of MCC-funded procurement 

activities, help detect errors when they 

can be easily corrected and to otherwise 

avoid problems in such procurement 

activities. It is subject to modification or 

exception at any time by MCC. 

MCA-Namibia shall ensure that all 

procurement actions described in 

Attachment 1 for goods, works, 

consultant and non-consultant services 

in furtherance of the Compact and 

funded in whole or in part by MCC 

funding shall be subject to the prior 

approval of the authorized entity, 

officer(s) or bodies designated on 

Attachment 1 for the corresponding type 

of action or dollar amount threshold, 

unless MCC has granted a written 

exception to the approval requirement 

set out in Attachment 1. 

Notwithstanding the approval 

requirements set out in Attachment 1, 

MCC shall have the right to take review 

and require prior approval of any other 

procurement action, decision or 

document. 

Part 5. Bid Challenge System 

MCA-Namibia shall establish a bid 

challenge system that provides 

suppliers, contractors and consultants 

the ability to seek review of 

procurement actions and decisions 

(‘‘Bid Challenge System’’). The 

organization, rules and procedures of 

such Bid Challenge System shall be 

subject to MCC approval. The Bid 

Challenge System must include a first 

level of review by MCA-Namibia with 

an appeal to a review body. The review 

body must be impartial and 

independent and shall have no interest 

(through financial, family, business or 

beneficial ownership or otherwise) in 

the outcome of the procurement, nor be 

involved in or related to the 

procurement process. The review body 

must follow clear and transparent 

written procedures and shall issue a 

timely written decision on any bid 

challenge that is timely and properly 

filed. The review body must have the 

authority to order a correction of a 

violation of the procurement principles 

and procedures or to order 

compensation for loss or damage 

suffered by a successful challenger, to 

the extent of the cost of preparation of 

the bid and the challenge. The review 

body must also have the power to order 

suspension of a procurement that is 

under challenge in order to preserve the 

commercial opportunity pending the 

outcome of the review. Notice of the Bid 

Challenge System must be set out in the 

solicitation documents. Standard notice 

provisions shall be subject to MCC 

approval. MCA-Namibia shall ensure 

that all bid challenges are accepted, 

reviewed and processed in accordance 

with the rules and procedures of the Bid 

Challenge System as approved by MCC. 

Part 6. Subcontracting 

(a) Every contract or subcontract for 

goods, works, consultant or nonconsultant services with any party that 

receives at least US$50,000 in the 

aggregate of MCC funding shall require 

the contracting party to follow the 

fundamental procurement principles 

promoting transparency, openness, 

competition and fairness to the 

maximum extent possible, remaining 

consistent with the objectives and 

requirements of the contract when 

subcontracting for goods, works, 

consultant or non-consultant services. 

(b) In every contract or subcontract 

valued in excess of US$1,000,000, the 

contracting party shall be required to 

have written procurement procedures 

that may be subject to review by MCANamibia and MCC. 

(c) Any contractor or subcontractor 

planning to subcontract for a major item 

of goods, works, consultant or nonconsultant services (deemed major if 

valued in excess of US$100,000) shall 

seek MCA-Namibia’s prior written 

approval of the subcontractor. 

Part 7. Amendments and Exceptions 

These Rules will be amended, or 

otherwise modified, from time to time, 

at MCC’s request, to reflect changes in 

U.S. law, regulations or policy related to 

the funding of procurements. In 

addition, these Rules may be amended 

by written agreement of MCC and MCANamibia, and MCA-Namibia will 

consider in good faith any amendment 

for the purpose of ensuring continuity 

and compatibility between these Rules 

and the MCC Program Procurement 

Guidelines. On a case by case basis, the 

MCC may grant a waiver or exception to 

the Rules. Such waiver or exception 

must be in writing and shall be effective 

only to the extent specifically set forth 

in such writing. 

Part 8. Publication of MCA-Namibia 

Procurement Rules 

MCA-Namibia shall ensure that these 

Rules (including any amendments 

thereto) are published on MCANamibia’s Web site (or such other 

appropriate Web site designated by 

MCA-Namibia and approved by MCC). 

MCA-Namibia Procurement Rules 

Attachment 1 

Approval Requirements 


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REVIEW OF PROCUREMENT DECISIONS—GOODS, WORKS AND NON-CONSULTANT SERVICES

Procurement procedure or method Decision 55

Level of review 

(thresholds expressed in US$) 

MCA-Namibia Director of Procurement 

Governing Body of MCA-Namibia 56 MCC 

Procurement Plans .............................. All .......................... All ......................................................... All. 

Amendments to Procurement Plans ... All .......................... Substantial Deviation ........................... All. 

Pre-qualification ..... Pre-qualification documents and advertising procedures.All .......................... None .................................................... Above 1,000,000. 

Report with proposed list of entities 

qualified.

All .......................... Above 500,000 .................................... Above 500,000. 

Record of Bid Challenges ................... All .......................... All ......................................................... All. 

Competitive Bidding Bidding Documents ............................. All .......................... None .................................................... Above 1,000,000 

Goods. Above 

5,000,000 Works. 

Technical Evaluation or Review Report with Proposed Award.All .......................... None .................................................... Above 250,000. 

Final Contract ...................................... All .......................... Above 250,000 .................................... Above 250,000. 

Record of Bid Challenges ................... All .......................... All ......................................................... All. 

Limited Bidding ...... Short list .............................................. All .......................... None .................................................... Above 100,000. 

Bidding Documents ............................. All .......................... None .................................................... Above 500,000. 

Technical Evaluation or Review Report with Proposed Award.All .......................... None .................................................... Above 1,000,000. 

Final Contract ...................................... All .......................... Above 1,000,000 ................................. Above 1,000,000. 

Record of Bid Challenges ................... All .......................... All ......................................................... All. 

Shopping ................ Short list .............................................. Over 2,000 ............ None .................................................... None. 

Record of Purchases ........................... Weekly .................. Monthly ................................................ None. 

Record of Bid Challenges ................... All .......................... All ......................................................... Quarterly record of 

decisions. 

Direct Contracting .. Proposed Award .................................. Over 2,000 ............ None .................................................... Above 50,000. 

Final Contract ...................................... Over 2,000 (Under 

2,000 review 

monthly report).

Above 50,000 ...................................... Above 50,000. 

Record of Bid Challenges ................... All .......................... All ......................................................... All. 

Force Account ........ Selection of using equipment owned 

by or employees of Government for 

performing works.

All .......................... All ......................................................... All. 

Proposed contract ............................... All .......................... None .................................................... All. 

Final contract ....................................... All .......................... All ......................................................... All. 

All Procurement Actions.Contract Modifications and Change 

Orders.

All .......................... For all contract awards approved previously if increases value of Contract by 10% or more, or raises a 

contract which did not require approval above an approval threshold 

or if extends Contract original term 

by 25% or more without value increase.

If increases value 

of Contract by 

10% or more. 

REVIEW OF PROCUREMENT DECISIONS—CONSULTANT SERVICES

Procurement procedure or method Decision 

Level of review 

(thresholds expressed in US$) 

MCA-Namibia Director of Procurement 

Governing Body of MCA-Namibia MCC 

Procurement Plans .............................. All .......................... All ......................................................... All. 

Amendments to Procurement Plans ... All .......................... Substantial Deviation ........................... All. 

Quality and Cost 

Based Selection.

Request for Expression of Interest ..... All .......................... None .................................................... Above 500,000. 

Technical Evaluation Panel ................. All .......................... None .................................................... Above 500,000. 

Short list .............................................. All .......................... None .................................................... Above 100,000. 

Proposal Documents ........................... All .......................... None .................................................... Above 500,000. 

Technical Evaluation Report ............... All .......................... None .................................................... Above 100,000. 

Proposed Award .................................. All .......................... None .................................................... Above 100,000. 

Final Contract ...................................... All .......................... Above 100,000 .................................... Above 100,000. 

Record of Bid Challenges ................... All .......................... All ......................................................... All. 

Quality Based Selection and Selection under Fixed 

Budget.

Request for Expression of Interest ..... All .......................... None .................................................... Above 500,000. 


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Federal Register / Vol. 73, No. 155 / Monday, August 11, 2008 / Notices 46771 

55Within each ‘‘procurement Procedure or 

Method,’’ each separate ‘‘Decision’’ shown is an 

independent requirement, and all requisite 

approvals must be received for each such 

‘‘Decision’’ before proceeding, sequentially from top 

to bottom, to the next ‘‘Decision’’ requirement. 

56Notwithstanding the thresholds set forth in this 

Attachment 2 of these Rules with respect to the 

Governing Body of MCA-Namibia, the Governing 

Body may exercise its authority to review any 

procurement decision with prior notice to the 

principal officer of MCA-Namibia. 

REVIEW OF PROCUREMENT DECISIONS—CONSULTANT SERVICES—Continued 

Procurement procedure or method Decision 

Level of review 

(thresholds expressed in US$) 

MCA-Namibia Director of Procurement 

Governing Body of MCA-Namibia MCC 

Technical Evaluation Panel ................. All .......................... None .................................................... Above 500,000. 

Short list .............................................. All .......................... None .................................................... Above 100,000. 

Proposal Documents ........................... All .......................... None .................................................... Above 500,000. 

Technical Evaluation Report for QBS 

only.

All .......................... None .................................................... Above 100,000. 

Proposed Award .................................. All .......................... Above 100,000 .................................... Above 100,000. 

Final Contract ...................................... All .......................... Above 100,000 .................................... Above 100,000. 

Record of Bid Challenges ................... All .......................... All ......................................................... All. 

Least-Cost Selection.Request for Expression of Interest ..... All .......................... None .................................................... None. 

Technical Evaluation Panel ................. All .......................... None .................................................... None. 

Short list .............................................. All .......................... None .................................................... Above 100,000. 

Proposal Documents ........................... All .......................... None .................................................... None. 

Proposed Award .................................. All .......................... None .................................................... Above 100,000. 

Final Contract ...................................... All .......................... Above 100,000 .................................... None. 

Record of Bid Challenges ................... All .......................... All ......................................................... All. 

Selection Based on 

Consultant’s 

Qualifications.

Request for Expression of Interest ..... All .......................... None .................................................... None. 

Technical Evaluation Panel ................. All .......................... None .................................................... None. 

Short list .............................................. All .......................... None .................................................... Above 50,000. 

Standard Solicitation Documents ........ All .......................... None .................................................... None. 

Technical Evaluation Report ............... All .......................... None .................................................... None. 

Proposed Award .................................. All .......................... None .................................................... None. 

Final Contract ...................................... All .......................... Above 50,000 ...................................... Above 50,000. 

Record of Bid Challenges ................... All .......................... All ......................................................... All. 

Single-Source Selection.Proposed Award .................................. All .......................... None .................................................... Above 50,000. 

Final Contract ...................................... All .......................... Above 50,000 ...................................... Above 50,000. 

Record of Bid Challenges ................... All .......................... All ......................................................... All. 

Selection of Individual Consultants.Short list .............................................. All .......................... None .................................................... Above 50,000. 

Technical Evaluation Panel ................. All .......................... None .................................................... Above 50,000. 

Technical Evaluation Report ............... All .......................... None .................................................... None. 

Proposed Award .................................. All .......................... None .................................................... None. 

Final Contract ...................................... All .......................... Above 50,000 ...................................... Above 50,000. 

Record of Bid Challenges ................... All .......................... All ......................................................... All. 

All Procurement Actions.Contract Modifications and Change 

Orders.

All .......................... For all contract awards approved previously if increases value of contract, or raises a contract which did 

not require approval above an approval threshold or if extends contract original term by 25% or more 

without value increase.

If increases value 

of contract by 

10% or more. 

MCA-Namibia Procurement Rules 

Attachment 2 

Glossary of Terms 

Bid Challenge System shall have the 

meaning set forth in Part 5. 

Blanket Purchase Agreement or BPA 

shall have the meaning set forth in 

Section 1B, Par. 4.5.2. 

Consultant’s Qualifications or CBS 

shall have the meaning set forth in 

Section 1B, Par. 3.7. 

Compact means the Millennium 

Challenge Compact entered into 

between the United States of America, 

acting through the Millennium 

Challenge Corporation, and the 

Republic of Namibia. 

Competitive Bidding or CB shall have 

the meaning set forth in Section 1A, Par. 

1.3. 

Direct Contracting shall have the 

meaning set forth in Section 1A, Pars. 

3.6 and 3.7. 

dgMarket shall have the meaning set 

forth in Section 1A, Par 2.7. 

Fixed Budget or FBS shall have the 

meaning set forth in Section 1B, Par. 

3.5. 

Fixed Price Contract shall have the 

meaning set forth in Section 1B, Par. 

4.1. 

Force Account shall have the meaning 

set forth in Section 1A, Par.3.8. 

General Procurement Notice shall 

have the meaning set forth in Section 

1A, Par. 2.7. 

Indefinite Delivery and Indefinite 

Quantity Contract or IDIQ Contract shall 

have the meaning set forth in Section 

1B, Par. 4.5.1. 


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Instructions to Consultants or ITC 

shall have the meaning set forth in 

Section 1B, Par. 2.11. 

Least-Cost Selection or LCS shall have 

the meaning set forth in Section 1B, Par. 

3.6. 

Letter of Invitation or LOI shall have 

the meaning set forth in Section 1B, Par. 

2.10. 

Limited Bidding or LB shall have the 

meaning set forth in Part 1A, Par.3.2. 

MCA-Namibia means the National 

Planning Commission of the Republic of 

Namibia, in its capacity as the 

accountable entity responsible to 

oversee, manage and implement the 

Program, on behalf of the Republic of 

Namibia. 

MCC means the Millennium 

Challenge Corporation. 

MCC Cost Principles means MCC’s 

‘‘Cost Principles for CostReimbursement Contracts under MCCFinanced Grants’’ and ‘‘Cost Principles 

for Government Affiliates Involved in 

MCC Compact Implementation,’’ both 

located on MCC’s Web site at http:// 

www.mcc.gov. 

Performance Based Procurement or 

Output Based Procurement shall have 

the meaning set forth in Section 1A, Par. 

3.14. 

Procurement Plan shall have the 

meaning set forth in Section 1A, Par. 

1.16.1. 

Procurement Performance Report 

shall have the meaning set forth in Part 

2. 

Procurement Principles shall have the 

meaning set forth in Section 1A, Par 

1.2.1 and Section 1B, Par. 1.4.1. 

Procurement Rules or Rules shall have 

the meaning set forth in Part 1, 

Preamble. 

Project(s) shall have the meaning set 

forth in Part 1, Preamble. 

Quality Based Selection or QBS shall 

have the meaning set forth in Section 

1B, Pars. 3.2 thru 3.2. 

Quality Cost Based Selection or QCBS 

shall have the meaning set forth in 

Section 1B, Par. 1.5. 

Request for Expression of Interest or 

EOI shall have the meaning set forth in 

Section 1B, Par. 2.5.2. 

Request for Proposals or RFP shall 

have the meaning set forth in Section 

1B, Par. 2.9. 

Single-Source Selection or SSS shall 

have the meaning set forth in Section 

1B, Pars. 3.9 thru 3.13. 

Shopping shall have the meaning set 

forth in Section 1A, Par. 3.5. 

Specific Procurement Notice shall 

have the meaning set forth in Section 

1A, Par. 2.8 and Section 1B, Par. 2.5.2. 

Standard Bidding Documents shall 

have the meaning set forth in Part 3. 

Standard Proposal Documents shall 

have the meaning set forth in Part 3. 

Standard Solicitation Documents 

shall have the meaning set forth in Part 

3. 

Supplemental Agreement shall have 

the meaning set forth in Section 1A, Par. 

3.10. 

Terms of Reference or TOR shall have 

the meaning set forth in Section 1B, Par. 

2.3. 

Time-Based Contract shall have the 

meaning set forth in Section 1B, Par. 

4.2. 

Two-Stage Bidding shall have the 

meaning set forth in Section 1A, Par. 

2.6. 

UNDB Online shall have the meaning 

set forth in Section 1A, Par. 2.7. 

[FR Doc. E8–18201 Filed 8–8–08; 8:45 am] 

BILLING CODE 9211–03–P 


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