[Federal Register Volume 73, Number 186 (Wednesday, September 24, 2008)]
[Notices]
[Pages 55141-55164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-22431]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 08-14]


Notice of Amendment to Compact With the Government of the 
Republic of Mali

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: In accordance with Section 609(i)(2) of the Millennium 
Challenge Act of 2003, as amended (Pub. L. 108-199, Division D), the 
Millennium Challenge Corporation is publishing a summary, justification 
and the complete text of the Amendment to Millennium Challenge Compact 
between the United States of America, acting through the Millennium 
Challenge Corporation, and the Government of the Republic of Mali. 
Representatives of the United States Government and the Government of 
the Republic of Mali executed the Amendment documents on September 11, 
2008.

    Dated: September 19, 2008.
William G. Anderson, Jr.,
Vice President and General Counsel, Millennium Challenge Corporation.

Summary of Amendment to Millennium Challenge Compact With the 
Government of the Republic of Mali

    The Board of Directors of the Millennium Challenge Corporation 
(MCC) has approved an amendment (the Amendment ) to the existing 
approximately $460.8 million, five-year Millennium Challenge Compact 
(the Compact ) between the United States of America, acting through 
MCC, and the Government of the Republic of Mali.

Background

    The Millennium Challenge Compact between the United States of 
America and the Government of the Republic of Mali was signed November 
13, 2006, and entered into force on September 17, 2007. The Mali 
Compact previously had three major projects--the Alatona Irrigation 
Project, the Airport Improvement Project, and the Industrial Park 
Project (each as defined in the Compact). Extensive feasibility studies 
of the Industrial Park Project and Airport Improvement Project 
highlighted the following issues:
    Policy and institutional arrangements related to the industrial 
park and industrial development were not in place, and reforms critical 
to a successful industrial park would have taken several years and 
significant effort to achieve. Therefore, it was no longer advisable to 
invest in industrial park physical infrastructure.
    The estimated costs of both the Airport Improvement and Industrial 
Park Projects were significantly higher than the amounts budgeted for 
such projects in the Compact. After a series of extensive 
consultations, MCA-Mali (the Malian entity implementing the Compact) 
formally requested that the Industrial Park Project be eliminated from 
the Compact and that funds from such project be reallocated and used 
for the Airport Improvement Project. It was agreed that the Alatona 
Irrigation Project would remain as set forth in the existing terms of 
the Compact with respect to its scope and budget allocation.

Scope of the Amendment

    The Amendment memorializes the proposed restructuring by enacting 
the following changes: (a) Funds currently allocated under the Compact 
to the Industrial Park Project will be reallocated to the Airport 
Improvement Project; and (b) the description of the Airport Improvement 
Project will be refined based on the results of the feasibility 
studies.
    In addition, given the challenges to achieving full implementation 
of the Airport Improvement Project within the term of the Compact, the 
Amendment revised the description of the Airport Improvement Project in 
the annexes to the Compact to allow the MCC to have future decision 
points regarding the scope of the Airport Improvement Project without 
having to further amend the Compact. No material changes are currently 
required to the scope or budget for the Alatona Irrigation Project.
    Finally, the Amendment revised the amendment provision of the 
Compact to permit additional amendments to the Compact, if necessary, 
without requiring such amendments to be subject to the domestic 
approval process that was required for the Compact, and the Amendment 
will update certain information, such as the MCC Principal 
Representative and the name of certain Government of Mali ministries on 
the MCA-Mali board of directors.

Effect of the Amendment

    The restructuring of the Compact will decrease overall compact risk 
since the Industrial Park Project was the most risky project under the 
Compact. The Amendment will decrease the environmental and social 
footprint of the Compact program; thereby decreasing the overall risks.
    The Airport Improvement Project will be implemented under 
significant time constraints, taking into account that the Compact 
entered into force on September 17, 2007. Although there appears ample 
time to design and renovate the Airport runway and other 
infrastructure, the schedule to design and construct the proposed new 
terminal building is tight. It also must be taken into account that, 
worldwide, implementation delays are common with airports and large 
construction projects of this nature.
    An implementation plan to address the completion risk has been 
developed and incorporated into the restructuring of the Compact, which 
includes a series of milestones for the preparation of a design brief 
for the proposed new terminal building, the mobilization of a project 
management team, and the activation of a design and supervision 
consultant. In the event one or more of these milestones are missed, 
the implementation plan will be revised by MCC. Under the new plan, MCC 
believes that the Airport Improvement Project will be completed within 
the five-year term of the Compact.

Amendment to Millennium Challenge Compact Between the United States of 
America Acting Through the Millennium Challenge Corporation and the 
Government of the Republic of Mali Amendment to Millennium Challenge 
Compact

    This Amendment to Millennium Challenge Compact (this ``Amendment'') 
is made by and between the United States of America, acting through the 
Millennium Challenge Corporation, a United States government 
corporation (``MCC''), and the Government of the Republic of Mali (the 
``Government'') (each referred to herein individually as a ``Party'' 
and collectively, as the ``Parties''). All capitalized terms used in 
this Amendment that are not otherwise defined herein have the meanings 
given to such terms in the Compact (as defined below).

Recitals

    Whereas, the Parties entered into that certain Millennium Challenge 
Compact by and between the United States of America, acting through 
MCC, and the Government, on November 13, 2006 (the ``Compact ''), which 
entered into force on September 17, 2007, pursuant to which MCC grants 
to the Government, subject to the terms and conditions of the Compact, 
MCC Funding in an amount not to exceed Four Hundred

[[Page 55142]]

Sixty Million Eight Hundred Eleven Thousand One Hundred and Sixty-Four 
United States Dollars (US$ 460,811,164) for a program to reduce poverty 
through economic growth in Mali (the ``Program'');
    Whereas, results of early studies and procurements suggest that the 
Program Objective, originally conceived as comprising three Project 
Objectives at the time of Compact signature, should be restructured to 
remove one Project Objective, revise the scope of another Project 
Objective, reallocate MCC Funding from the removed Project Objective to 
the rescoped Project Objective and correct the projections of the final 
Project Objective (the ``Program Restructuring'');
    Whereas, the Parties further desire to revise the description of 
the Board to acknowledge agreements made between the Parties and with 
MCA-Mali following the date of signature of the Compact;
    Whereas, in an effort to memorialize the Program Restructuring, the 
Parties hereby desire to amend certain parts of the Compact and its 
Annexes without changing the overall value or term of the Compact.
    Now, Therefore, in consideration of the foregoing and the mutual 
covenants and agreements set forth herein and in the Compact, the 
Parties hereby agree as follows:

Amendments

1. Amendment to Section 1.1

    Section 1.1 (Compact Goal; Objectives) of the Compact is hereby 
amended and restated as follows:
    Section 1.1 Compact Goal; Objectives. The goal of this Compact is 
to reduce poverty through economic growth in Mali by increasing 
production and productivity of agriculture, as well as expanding Mali's 
access to markets and trade (the ``Compact Goal ''). The key to 
advancing the Compact Goal is through the development of critical 
infrastructure and policy reform for productive sectors and addressing 
Mali's constraints to growth by capitalizing on two of its major 
assets, the Bamako-S[eacute]nou International Airport (the ``Airport 
''), the gateway for regional and international trade, and the 
agricultural potential of the Niger River (collectively, the ``Program 
Objective''). The Parties have identified the following project-level 
objectives (each, a ``Project Objective'') of this Compact to advance 
the Program Objective, and thus the Compact Goal, each of which is 
described in more detail in the Annexes attached hereto:
    (a) Establish an independent and secure link to the regional and 
global economy through infrastructure investments at the Airport and 
policy reform of the national air transport system (the ``Bamako-
S[eacute]nou Airport Improvement Project Objective''); and
    (b) Increase the agricultural production and productivity in the 
Alatona zone of the Office du Niger (``ON '') through the construction 
of a road, irrigation infrastructure, social infrastructure, 
agricultural services, land allocation and increased access to credit 
(the ``Alatona Irrigation Project Objective'').
    The Government expects to achieve, and shall use its best efforts 
to ensure the achievement of, the Compact Goal, Program Objective and 
Project Objectives during the Compact Term. The Program Objective and 
the individual Project Objectives are collectively referred to herein 
as ``Objectives'' and each individually as an ``Objective.''

2. Amendment to Section 5.1

    Section 5.1 (Communications) of the Compact is amended by replacing 
the notice information with the following:
    ``To MCC: Millennium Challenge Corporation, Attention: Vice 
President for Compact Implementation, (with a copy to the Vice 
President and General Counsel), 875 15th Street, NW., Washington, DC 
20005, United States of America, Facsimile: +1 (202) 521-3700, 
Telephone: +1 (202) 521-3600, E-mail: <a href="/cdn-cgi/l/email-protection#1244425b7f627e777f777c6673667b7d7c527f71713c757d64"><span class="__cf_email__" data-cfemail="7224223b1f021e171f171c0613061b1d1c321f11115c151d04">[email protected]</span></a> (Vice 
President for Compact Implementation); <a href="/cdn-cgi/l/email-protection#15434552707b70677479567a607b667079557876763b727a63"><span class="__cf_email__" data-cfemail="ebbdbbac8e858e998a87a8849e85988e87ab868888c58c849d">[email protected]</span></a> (Vice 
President and General Counsel)
    To the Government: Secretary General of the Presidency, BP 10 
Koulouba, Republic of Mali, Facsimile: +223 223-80-30, Telephone: +223 
223-0026, E-mail: <a href="/cdn-cgi/l/email-protection#5a393e333b343d351a31352f36352f383b742a28743736"><span class="__cf_email__" data-cfemail="adcec9c4ccc3cac2edc6c2d8c1c2d8cfcc83dddf83c0c1">[email protected]</span></a>.''

3. Amendment to Section 5.2

    Section 5.2 (Representatives) of the Compact is amended by (i) 
deleting the words ``Vice President for Operations'' therein and 
replacing them with ``Vice President for Compact Implementation'' and 
(ii) deleting the words ``Prime Minister'' and replacing them with 
``Secretary General of the Presidency.''

4. Amendment to Section 5.3

    Section 5.3 (Amendments) of the Compact is amended and restated as 
follows:
    ``Section 5.3 Amendments. The Parties may amend this Compact only 
by a written agreement signed by the Principal Representatives of the 
Parties.''

5. Amendment to Section 5.11

    Section 5.11 (Signatures) of the Compact shall be amended by 
deleting the phrase ``or an amendment to this Compact pursuant to 
Section 5.3'' from the text of the first sentence of Section 5.3.

6. Amendment to Exhibit A

    Exhibit A (Definitions) of the Compact shall be amended by: (i) 
deleting the following terms and their definitions in their entirety: 
``BDS,'' ``Industrial Park,'' ``Industrial Park Project.'' ``Industrial 
Park Project Objective,'' the second ``Institutional Strengthening 
Activity,'' ``MSMEs,'' ``Primary and Secondary Infrastructure 
Activity,'' ``Resettlement Activity,'' and ``Revenue Authority,'' and 
(ii) replacing all references to ``Schedule 3 of Annex I'' with 
references to ``Schedule 2 of Annex I.''

7. Amendment to Annex I

    Annex I (Program Description) of the Compact shall be amended by 
deleting such Annex I (including its Schedules) in its entirety and 
replacing it with the substitute Annex I (including attached Schedules) 
attached hereto as Exhibit A.

8. Amendment to Annex II

    Annex II (Summary of Multi-Year Financial Plan) of the Compact 
shall be amended by deleting such Annex II (including its Exhibit) in 
its entirety and replacing it with the substitute Annex II (including 
the attached Exhibit) attached hereto as Exhibit B.

9. Amendment to Annex III

    Annex III (Description of the M&E Plan) of the Compact shall be 
amended by deleting such Annex III in its entirety and replacing it 
with the substitute Annex III attached hereto as Exhibit C.

General Provisions

10. Further Assurances

    Each Party hereby covenants and agrees, without necessity of any 
further consideration, to execute and deliver any and all such further 
documents and take any and all such other action as may be reasonably 
necessary or appropriate to carry out the intent and purpose of this 
Amendment.

11. Effect of This Amendment

    From and after the Amendment Effective Date (as defined below), the 
Compact and this Amendment shall be read together and construed as one 
document, and each reference in the Compact to the ``Compact,'' 
``hereunder,'' ``hereof'' or words of like import referring to the 
Compact, and each reference to the ``Compact,''

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``thereunder,'' ``thereof'' or words of like import in any Supplemental 
Agreement or in any other document or instrument delivered pursuant to 
the Compact or any Supplemental Agreement, shall mean and be construed 
as a reference to the Compact, as amended by this Amendment.

12. Limitations

    Except as expressly amended by this Amendment, all of the 
provisions of the Compact remain unchanged and in full force and 
effect.

13. Amendment Effective Date

    This Amendment shall enter into force on the date of the last 
letter in an exchange of letters between the Principal Representatives 
of each Party confirming that each Party has completed its domestic 
requirements for entry into force of this Amendment (including as set 
forth in Paragraph 14) and that all conditions set forth in Paragraph 
15 have been satisfied by the Government and MCC (the ``Amendment 
Effective Date'').

14. Domestic Requirements

    Prior to entry into force of this Amendment, the Government shall 
proceed in a timely manner to seek domestic ratification of this 
Amendment as necessary or required by the laws of Mali, or similar 
domestic requirement, in order that: (a) This Amendment shall be 
considered an international agreement under Mali law, (b) no laws of 
Mali (other than the Constitution of Mali) now or hereafter in effect 
shall take precedence or prevail over this Amendment or the Compact, as 
amended hereby, during the Compact Term (or a longer period to the 
extent provisions of the Compact remain in force following the 
expiration of the Compact Term pursuant to Section 5.13 of the 
Compact), and (c) each of the provisions of this Amendment is valid, 
binding and in full force and effect under the laws of Mali. The 
Government shall initiate such process promptly after the conclusion of 
this Amendment.

15. Condition Precedent to Amendment Effective Date

    As a condition precedent to the Amendment Effective Date, the 
Government shall deliver a certificate signed and dated by the 
Principal Representative of the Government, or such other duly 
authorized representative of the Government acceptable to MCC, that:
    (a) Certifies that the Government has completed all of its domestic 
requirements in order that, and attaches a legal opinion from the 
Supreme Court of Mali (or such other competent person acceptable to 
MCC) to the effect that, (1) this Amendment shall have the status of an 
international agreement, and the Compact, as amended hereby, continues 
to have the status of an international agreement, (2) no laws of Mali 
(other than the Constitution of Mali) now or hereafter in effect shall 
take precedence or prevail over this Amendment, or the Compact as 
amended hereby, during the Compact Term (or a longer period to the 
extent provisions of this Compact remain in force following the Compact 
Term pursuant to Section 5.13 of the Compact), and (3) each of the 
provisions of this Amendment shall be valid, binding and in full force 
and effect under the laws of Mali, and the Compact, as amended hereby, 
continues to be valid, binding and in full force and effect under the 
laws of Mali; and
    (b) Attaches thereto, and certifies that such attachments are true, 
correct and complete copies of all decrees, legislation, regulations or 
other governmental documents relating to its domestic requirements for 
this Amendment to enter into force and the satisfaction of Paragraph 
14, which MCC may post on its Web site or otherwise make publicly 
available.

16. English Language

    This Amendment is prepared and executed in English and, in the 
event of any ambiguity or conflict between this official English 
version and any translation made for the convenience of the Parties, 
this official English version will prevail.

17. Governing Law

    The Parties acknowledge and agree that this Amendment is an 
international agreement entered into for the purpose of amending the 
Compact and as such will be interpreted in a manner consistent with the 
Compact and will be governed by the principles of international law.

18. Counterparts

    This Amendment may be executed in counterparts, each of which shall 
constitute an original, but when taken together, shall constitute one 
instrument.

19. Provisional Application

    Upon signature of this Amendment, the Parties will provisionally 
apply this Amendment until the Amendment Effective Date.
    In Witness Whereof, the undersigned, duly authorized by their 
respective governments, have signed this Amendment to be dated the 
later of the dates indicated below their signatures and this Amendment 
shall become effective in accordance with Paragraph 13.
    Millennium Challenge Corporation, on behalf of the United States of 
America, Name: Darius Mans, Title: Vice President for Compact 
Implementation, Date: 9/11/08.
    The Government of the Republic of Mali, Name: Diango Cissoko, 
Title: Secretary General of the Presidency, Date: 9/11/08.

Exhibit A Annex I (Program Description)

Annex I Program Description

    This Annex I to the Compact (this ``Program Annex'') generally 
describes the Program that MCC Funding will support in Mali during the 
Compact Term and the results to be achieved from the investment of MCC 
Funding. Prior to any MCC Disbursement or Re-Disbursement, including 
for the Projects described herein, MCC, the Government (or a mutually 
acceptable Government Affiliate) and MCA-Mali shall enter into the 
Disbursement Agreement, which agreement shall be in form and substance 
mutually satisfactory to the Parties, and signed by the Principal 
Representative of each Party (or in the case of a Government Affiliate, 
the principal representative of such Government Affiliate) and of MCA-
Mali.
    Except as specifically provided herein, the Parties may amend this 
Program Annex without amending the Compact only by written agreement 
signed by the Principal Representative of each Party. Each capitalized 
term used but not defined in this Program Annex shall have the same 
meaning given such term elsewhere in this Compact. Unless otherwise 
expressly stated, each Section reference herein is to the relevant 
Section of the main body of this Compact.
1. Background; Consultative Process
    (a) Background.
    Mali is a landlocked country of 1.24 million sq km that shares a 
border with seven West African countries. One of the world's poorest 
countries, Mali ranks 174 out of 177 on the United Nations Development 
Program's Human Development Index, with low levels of literacy (19%) 
and life expectancy of 47.9 years. Sixty-four percent of Mali's 
approximately 13 million people are poor, a third living in extreme 
poverty. MCC's investments will support the development of key 
infrastructure and policy reform for productive sectors, by addressing 
the country's constraints to growth and capitalizing on two of Mali's 
major assets, the Airport, gateway for

[[Page 55144]]

regional and international trade, and the Niger River Delta for 
irrigated agriculture. As proposed by the Government, the Program will 
create a platform for increased production and productivity of 
agriculture, as well as expand Mali's access to markets and trade.
    Investment in the Airport infrastructure will establish an 
independent and secure link to the regional and global economy, 
addressing the specific need of a landlocked, developing country. The 
investments in the Alatona zone of ON will be a catalyst for the 
transformation and commercialization of family farms. It will support 
Mali's national development strategy to increase the contribution of 
the rural sector to economic growth and help achieve national food 
security. These investments will be strengthened by policy reforms and 
institutional support such as formal land titles for the rural poor, 
demand-driven rural advisory services, an improved business 
environment, and increased access to markets and trade. These hard and 
soft investments will impact the poor in Mali, particularly Malian 
farmers, not only in Project zones but, over time, on a national and 
regional scale. The Program reinforces the Government's approach and 
commitment to democracy, decentralization, and empowerment of local 
communities. MCC-financed interventions will complement and reinforce 
national strategies for poverty reduction and economic growth.
    (b) Consultative Process.
    The Program strongly supports the third pillar of the poverty 
reduction strategy paper (``PRSP''): development of infrastructure and 
key support for productive sectors. The participatory process of the 
PRSP is characterized as having ``breadth'' and being ``systematic.'' 
The national structure for the implementation of the PRSP identified 
the following among the top constraints to economic growth in its 
consultative process:
    (i) Climatic risks affecting the rural sector with consequences on 
the national economy;
    (ii) High cost of factors of production;
    (iii) Fluctuations in prices of principal import and export 
products; and
    (iv) Isolation/landlocked nature of the country.
    The Program was designed to address these constraints. Priorities 
were defined by the national PRSP structure and refinement occurred in 
consultation with civil society and the private sector. This 
consultative process enriched and helped form the Proposal and its 
development. The insistence on rural land ownership and titling derived 
from dialogue with civil society and private sector actors. The need 
for inclusion of a strong component of social services for the Alatona 
zone was also reinforced through the consultative process.
    Members of the Government, private sector, and civil society 
(national non-governmental organizations and U.S. non-governmental 
organizations) played an active role in developing the Millennium 
Challenge Account proposal. Local non-governmental organizations 
(``NGOs''), including village-level women's associations, were directly 
involved in the process through numerous on-site workshops and meetings 
in the ON region. Consultations also took place with private sector and 
civil society actors around Bamako, as well as communities surrounding 
the Airport domain, who emphasized the need for improved infrastructure 
and increased economic activity to reduce poverty. Lastly, the 
Consultative Process involved participation of the U.S. NGO community, 
that has a strong presence in Mali, working on health, education, 
agriculture, governance, and economic development programs throughout 
the country.
2. Overview.
    (a) Projects. The Parties have identified the Projects that the 
Government will implement, or cause to be implemented, using MCC 
Funding to advance each Objective. Each Project is described in the 
Schedules to this Program Annex. The Schedules to this Program Annex 
also identify one or more of the activities that will be undertaken in 
furtherance of each Project (each, a ``Project Activity''), as well as 
the various activities within each Project Activity. Notwithstanding 
anything to the contrary in this Compact, the Parties may agree to 
modify, amend, terminate or suspend these Projects or to create a new 
project by written agreement signed by the Principal Representative of 
each Party without amending this Compact; provided, however, any such 
modification or amendment of a Project or creation of a new project 
shall (i) be consistent with the Compact Goal; (ii) not cause the 
amount of MCC Funding to exceed the aggregate amount specified in 
Section 2.1(a) of this Compact; (iii) not cause the Government's 
responsibilities or contribution of resources to be less than specified 
in Section 2.2 of this Compact or elsewhere in this Compact; and (iv) 
not extend the Compact Term.
    (b) Beneficiaries. The intended beneficiaries of each Project are 
described in the respective Schedule to this Program Annex and Annex 
III to the extent identified as of the date hereof. The intended 
beneficiaries shall be identified more precisely during the initial 
phases of implementation of the Program. The Government shall provide 
to MCC information on the population of the areas in which the Projects 
will be active, disaggregated by gender, income level and age. The 
Parties shall agree upon the description of the intended beneficiaries 
and the Parties will make publicly available a more detailed 
description of the intended beneficiaries of the Program, including 
publishing such description on the MCA-Mali Web site.
    (c) Civil Society. Civil society shall participate in overseeing 
the implementation of the Program through its representation on the 
Board and the Advisory Councils, as provided in Section 3(d) and 
Section 3(e), respectively, of this Program Annex. In addition, ongoing 
consultations with the civil society regarding the manner in which each 
Project is being implemented will take place throughout the Compact 
Term.
    (d) Monitoring and Evaluation. Annex III generally describes the 
plan to measure and evaluate progress toward achievement of the Compact 
Goal and the Objectives (the ``M&E Plan''). As outlined in the 
Disbursement Agreement and other Supplemental Agreements, continued 
disbursement of MCC Funding under this Compact (whether as MCC 
Disbursements or Re-Disbursements) shall be contingent on, among other 
things, successful achievement of certain Targets as set forth in the 
M&E Plan.
3. Implementation Framework
    The implementation framework and the plan for ensuring adequate 
governance, oversight, management, monitoring and evaluation (``M&E'') 
and fiscal accountability for the use of MCC Funding is summarized 
below and in the Schedules attached to this Program Annex, and as may 
otherwise be agreed in writing by the Parties.
    (a) General. The elements of the implementation framework will be 
further described in the Supplemental Agreements and in a set of 
detailed documents for the implementation of the Program, consisting of 
(i) a Multi-Year Financial Plan, (ii) a Fiscal Accountability Plan, 
(iii) a Procurement Plan, (iv) an M&E Plan, and (v) a Work Plan (each, 
an ``Implementation Document''). MCA-Mali shall adopt each 
Implementation Document in

[[Page 55145]]

accordance with the requirements and timeframe as may be specified in 
this Program Annex, Annex II, Annex III, and the Disbursement Agreement 
or as may otherwise be agreed by the Parties from time to time. MCA-
Mali may amend any Implementation Document without amending this 
Compact, provided that any material amendment of such Implementation 
Document has been approved by MCC and is otherwise consistent with the 
requirements of this Compact and any Supplemental Agreement. By such 
time as may be specified in the Disbursement Agreement, or as may 
otherwise be agreed by the Parties from time to time, MCA-Mali shall 
adopt a work plan for the overall administration of the Program (the 
``Work Plan''). The Work Plan shall set forth, with respect to (i) the 
administration of the Program, (ii) the monitoring and evaluation of 
the Program, and (iii) the implementation of each Project, the 
following: (1) each activity to be undertaken or funded by MCC Funding 
(to the level of detail mutually acceptable to MCA-Mali and MCC), (2) 
the Detailed Budget, and (3) where appropriate, the allocation of roles 
and responsibilities for specific activities, other programmatic 
guidelines, performance requirements, targets, and other expectations 
related thereto.
    (b) Government.
    (i) The Government shall promptly take all necessary and 
appropriate actions to carry out the Government Responsibilities and 
other obligations or responsibilities of the Government under and in 
furtherance of this Compact, including undertaking or pursuing such 
legal, legislative or regulatory actions or procedural changes and 
contractual arrangements as may be necessary or appropriate to achieve 
the Objectives, to successfully implement the Program, to designate any 
rights or responsibilities to any Permitted Designee, and to establish 
a legal entity, in a form mutually agreeable to the Parties (``MCA-
Mali''), which shall be a Permitted Designee and shall be responsible 
for the oversight and management of the implementation of this Compact 
on behalf of the Government. The Government shall promptly deliver to 
MCC certified copies of any documents, orders, decrees, laws or 
regulations evidencing such legal, legislative, regulatory, procedural, 
contractual or other actions.
    (ii) The Government shall ensure that MCA-Mali is duly authorized 
and organized, sufficiently staffed and empowered to carry out fully 
the Designated Rights and Responsibilities. Without limiting the 
generality of the preceding sentence, MCA-Mali shall be organized, and 
have such roles and responsibilities, as described in Section 3(d) of 
this Program Annex and as provided in the Governing Documents.
    (c) MCC.
    (i) Notwithstanding Section 3.11 of this Compact or any provision 
in this Program Annex to the contrary, and except as may be otherwise 
agreed upon by the Parties from time to time, MCC must approve in 
writing each of the following transactions, activities, agreements and 
documents prior to the execution or carrying out of such transaction, 
activity, agreement or document and prior to MCC Disbursements or Re-
Disbursements in connection therewith:
    (1) MCC Disbursements;
    (2) Each Implementation Document (including each component thereto) 
and any material amendments and supplements thereto;
    (3) Any Audit Plan;
    (4) Agreements (i) between the Government and MCA-Mali, (ii) 
between the Government, a Government Affiliate, MCA-Mali or any other 
Permitted Designee, on the one hand, and any Provider or Affiliate of a 
Provider, on the other hand, which require such MCC approval under 
applicable law, the Disbursement Agreement, any Governing Document, or 
any other Supplemental Agreement, or (iii) in which the Government, a 
Government Affiliate, MCA-Mali or any other Permitted Designee 
appoints, hires, or engages any of the following in furtherance of this 
Compact:
    (A) Auditor;
    (B) Reviewer;
    (C) Fiscal Agent;
    (D) Procurement Agent;
    (E) Bank;
    (F) Implementing Entity (as required under Section 3(f) of this 
Program Annex); and
    (G) A member of the Board (including any Observer), any Officer or 
any other key employee of MCA-Mali (including agreements involving the 
terms of any compensation for any such person).
    (Any agreement described in clause (i) through (iii) of this 
Section 3(c)(i)(4) of this Program Annex and any amendments and 
supplements thereto, each, a ``Material Agreement'');
    (5) Any modification, termination or suspension of a Material 
Agreement, or any action that would have the effect of such a 
modification, termination or suspension of a Material Agreement;
    (6) Any agreement that is (A) not at arm's length or (B) with a 
party related to the Government, MCA-Mali or any of their respective 
Affiliates;
    (7) Any Re-Disbursement that requires such MCC approval under 
applicable law, any Governing Document, or any other Supplemental 
Agreement (each, a ``Material Re-Disbursement'');
    (8) Any pledge of any MCC Funding or any Program Assets, or any 
guarantee, directly or indirectly, of any indebtedness (each, a 
``Pledge'');
    (9) Any decree, legislation, regulation, contractual arrangement 
(including the Governance Agreement), or other charter document 
establishing or governing MCA-Mali (each, a ``Governing Document '');
    (10) Any disposition, in whole or in part, liquidation, 
dissolution, winding up, reorganization or other change of (A) MCA-
Mali, including any revocation or modification of or supplement to any 
Governing Document related thereto, or (B) any subsidiary or Affiliate 
of MCA-Mali;
    (11) Any change in character or location of any Permitted Account;
    (12) Formation or acquisition of any direct or indirect subsidiary, 
or other Affiliate, of MCA-Mali;
    (13) (A) Any change of any member of the Board (including any 
Observer), of the member serving as the Chair or in the composition or 
size of the Board, and the filling of any vacant seat of any member of 
the Board (including any Observer), (B) any change of any Officer or 
other key employee of MCA-Mali or in the composition or size of the 
Management, and the filling of any vacant position of any Officer or 
other key employee of MCA-Mali, and (C) any material change in the 
composition or size of any Advisory Council;
    (14) Any decision by MCA-Mali to engage, to accept or to manage any 
funds from any donor agencies or organizations in addition to MCC 
Funding during the Compact Term;
    (15) Any decision to amend, supplement, replace, terminate, or 
otherwise change any of the foregoing; and
    (16) Any other activity, agreement, document or transaction 
requiring the approval of MCC in this Compact, applicable law, any 
Governing Document, the Disbursement Agreement, or any other 
Supplemental Agreement between the Parties.
    (ii) MCC shall have the authority to exercise its approval rights 
set forth in this Section 3(c) of this Program Annex in its sole 
discretion and independent of any participation or position taken by 
the MCC Representative at a meeting of the Board. MCC retains the right 
to revoke its approval of any matter, agreement, or action if MCC 
concludes, in its sole discretion, that its approval was issued on the 
basis of incomplete, inaccurate or misleading information furnished by 
the Government, any

[[Page 55146]]

Government Affiliate, MCA-Mali or any other Permitted Designee. 
Notwithstanding any provision in this Compact or any Supplemental 
Agreement to the contrary, the exercise by MCC of its approval rights 
under this Compact or any Supplemental Agreement shall not (1) diminish 
or otherwise affect the Government Responsibilities or any other 
obligations or responsibilities of the Government under this Compact or 
any Supplemental Agreement, (2) transfer any such obligations or 
responsibilities of the Government, or (3) otherwise subject MCC to any 
liability.
    (d) MCA-Mali.
    (i) General. Unless otherwise agreed by the Parties in writing, 
MCA-Mali shall, as a Permitted Designee, be responsible for the 
oversight and management of the implementation of this Compact. MCA-
Mali shall be governed by applicable law and the Governing Documents. 
Each Governing Document shall be in form and substance satisfactory to 
MCC and effective on or before the time specified in the Disbursement 
Agreement, and based on the following principles:
    (1) The Government shall ensure that MCA-Mali shall not assign, 
delegate or contract any of the Designated Rights and Responsibilities 
without the prior written consent of the Government and MCC. MCA-Mali 
shall not establish any Affiliates or subsidiaries (direct or indirect) 
without the prior written consent of the Government and MCC.
    (2) Unless otherwise agreed by the Parties in writing, MCA-Mali 
shall consist of (A) an independent board of directors (the ``Board'') 
to oversee MCA-Mali's responsibilities and obligations under this 
Compact (including any Designated Rights and Responsibilities) and (B) 
a management unit to have overall management (the ``Management'') 
responsibility for the implementation of this Compact.
    (3) The Government shall ensure that the Governing Documents comply 
with the requirements set forth in this Program Annex.
    (ii) Board.
    (1) Formation. The Government shall ensure that the Board shall be 
formed, constituted, governed and operated in accordance with the terms 
and conditions set forth in the Governing Documents and any 
Supplemental Agreement.
    (2) Composition. Unless otherwise agreed by the Parties in writing, 
the Board shall consist of no more than eleven (11) voting members and 
two (2) non-voting observers identified below.
    (A) The Board shall initially be composed of eleven (11) voting 
members as follows, provided that the members identified in subsections 
(i)--(vi) below (each, a ``Government Member,'' and each of the other 
voting members, a ``Civil Member'') may be replaced by another 
government official from a ministry or other government body relevant 
to the Program activities pursuant to the Governing Documents, subject 
to approval by MCC (such replacement to be referred to thereafter as a 
Government Member):
    (i) Representative from the President's Office, appointed as the 
chair (``Chair'') as provided in the Governing Documents;
    (ii) Representative from the Ministry responsible for 
transportation;
    (iii) Representative from the Ministry responsible for finance;
    (iv) Representative from the Ministry responsible for economy;
    (v) Representative from the Ministry responsible for agriculture;
    (vi) Representative from the Ministry responsible for territorial 
administration;
    (vii) Representative from the National Committee for Business 
Owners;
    (viii) Representative from the Chamber of Commerce and Industry;
    (ix) Representative from the Chamber of Agriculture;
    (x) Representative from civil society organizations representing 
youth, selected by the relevant national NGOs and civil society 
organizations and based on selection criteria agreed upon by the 
Parties; and
    (xi) Representative from civil society organizations representing 
women, selected by the relevant national NGOs and civil society 
organizations and based on selection criteria agreed upon by the 
Parties.
    (B) The non-voting observers of the Board (each, an ``Observer'') 
shall be:
    (i) A representative designated by MCC (the ``MCC 
Representative''); and
    (ii) A representative of environmental NGOs, selected by the 
relevant national NGOs and civil society organizations and based on 
selection criteria agreed upon by the Parties.
    (C) Each Government Member position (other than the Chair) shall be 
filled by the individual, during the Compact Term, holding the office 
identified and all Government Members (including the Chair) shall serve 
in their capacity as the applicable Government officials and not in 
their personal capacity.
    (D) Each Civil Member shall serve for the Compact Term.
    (E) The Voting Members, by majority vote, may alter the size of the 
Board in accordance with the Governing Documents so long as the total 
does not exceed eleven (11) members.
    (F) Each Observer shall have rights to attend all meetings of the 
Board, participate in the discussions of the Board, and receive all 
information and documents provided to the Board, together with any 
other rights of access to records, employees or facilities as would be 
granted to a member of the Board under the Governing Documents.
    (G) The Voting Members shall exercise their duties solely in 
accordance with the best interests of MCA-Mali, the Program, the 
Compact Goal and the Objectives, and shall not undertake any action 
that is contrary to those interests or would result in personal gain or 
a conflict of interest.
    (3) Roles and Responsibilities. The roles and responsibilities of 
the Board shall include the following:
    (A) The Board shall oversee the Management, the overall 
implementation of the Program, and the performance of the Designated 
Rights and Responsibilities.
    (B) Certain actions may be taken and certain agreements, documents 
or instruments executed and delivered, as the case may be, by MCA-Mali 
only upon the approval and authorization of the Board as provided under 
applicable law or as set forth in any Governing Document, including 
each MCC Disbursement Request, selection or termination of certain 
Providers and any Implementation Document.
    (C) The Chair, unless otherwise provided in the applicable 
Governing Documents, shall certify any documents or reports delivered 
to MCC in satisfaction of the Government's reporting requirements under 
this Compact or any Supplemental Agreement between the Parties (the 
``Compact Reports'') or any other documents or reports from time to 
time delivered to MCC by MCA-Mali (whether or not such documents or 
reports are required to be delivered to MCC), and that such documents 
or reports are true, correct and complete.
    (D) Without limiting the generality of the Designated Rights and 
Responsibilities that the Government may designate to MCA-Mali, and 
subject to MCC's contractual rights of approval as set forth in Section 
3(c) of this Program Annex, elsewhere in this Compact or any 
Supplemental Agreement, the Board shall have the exclusive authority as 
between the Board and the Management for all actions defined for the 
Board in any Governing Document and which are expressly designated 
therein as responsibilities that cannot be delegated further.
    (E) The Board shall meet with and exchange information with the 
Advisory

[[Page 55147]]

Councils, as contemplated in Section 3(e) of this Program Annex. 
Without limiting the generality of the foregoing, the Board shall take 
each Advisory Council's suggestions into consideration in connection 
with any amendment to the M&E Plan, pursuant to Section 5(b) of Annex 
III.
    (4) Indemnification of Civil Members, Observers, and Officers. The 
Government shall ensure, at the Government's sole cost and expense, 
that appropriate insurance is obtained and appropriate indemnifications 
and other protections are provided, acceptable to MCC and to the 
fullest extent permitted under the laws of Mali, to ensure that (A) the 
Civil Members and the Observers shall not be held personally liable for 
the actions or omissions of the Board or MCA-Mali and (B) Officers 
shall not be held personally liable for the actions or omissions of the 
Board, MCA-Mali or actions or omissions of the Officer so long as 
properly within the scope of Officer's authority. Pursuant to Section 
5.5 and Section 5.8 of this Compact, the Government and MCA-Mali shall 
hold harmless the MCC Representative for any liability or action 
arising out of the MCC Representative's role as an Observer on the 
Board. The Government hereby waives and releases all claims related to 
any such liability and acknowledges that the MCC Representative has no 
fiduciary duty to MCA-Mali. In matters arising under or relating to 
this Compact, the MCC Representative is not subject to the jurisdiction 
of the courts or any other governmental body of Mali. MCA-Mali shall 
provide a written waiver and acknowledgement that no fiduciary duty to 
MCA-Mali is owed by the MCC Representative.
    (iii) Management. Unless otherwise agreed in writing by the 
Parties, the Management shall report, through its chief executive 
officer (the ``Director General'') or other Officer as designated in 
any Governing Document, directly to the Board and shall have the 
composition, roles and responsibilities described below and set forth 
more particularly in the Governing Documents.
    (1) Composition. The Government shall ensure that the Management 
shall be composed of qualified experts from the public or private 
sectors, including such officers and staff as may be necessary to carry 
out effectively its responsibilities, each with such powers and 
responsibilities as set forth in the Governing Documents, and from time 
to time in any Supplemental Agreement between the Parties, including 
the following: (A) Director General; (B) Director of Finance and 
Administration; (C) Legal Adviser; (D) Director of Procurement; (E) 
Director of Environmental and Social Assessment; (F) Director of 
Monitoring and Evaluation; (G) Director of Airport Improvement Project; 
and (H) Director of Alatona Irrigation Project. Each person holding the 
position in any of the sub-clauses (A) through (H), and such other 
offices as may be created and designated in accordance with any 
Governing Document and any Supplemental Agreement, shall be referred to 
as an ``Officer.'' The Management shall be supported by appropriate 
administrative and support personnel consistent with the Detailed 
Budget for Program administration and any Implementation Document.
    (2) Appointment of Officers. The Director General shall be selected 
after an open and competitive recruitment and selection process, and 
appointed in accordance with the Governing Documents, which appointment 
shall be subject to MCC approval. Such appointment shall be further 
evidenced by such document as the Parties may agree. Unless otherwise 
specified in the Governing Documents, the Officers of MCA-Mali other 
than the Director General shall be selected and hired by the Board 
after an open and competitive recruitment and selection process, and 
appointed in accordance with the Governing Documents, which appointment 
shall be subject to MCC approval. Such appointment shall be further 
evidenced by such document as the Parties may agree.
    (3) Roles and Responsibilities. The roles and responsibilities of 
the Management shall include:
    (A) The Management shall assist the Board in overseeing the 
implementation of the Program and shall have principal responsibility 
(subject to the direction and oversight of the Board and subject to 
MCC's contractual rights of approval as set forth in Section 3(c) of 
this Program Annex or elsewhere in this Compact or any Supplemental 
Agreement) for the overall management of the implementation of the 
Program.
    (B) Without limiting the foregoing general responsibilities or the 
generality of Designated Rights and Responsibilities that the 
Government may designate to MCA-Mali, the Management shall develop each 
Implementation Document, oversee the implementation of the Projects, 
manage and coordinate monitoring and evaluation, ensure compliance with 
the Fiscal Accountability Plan, and such other responsibilities as set 
out in the Governing Documents or otherwise delegated to the Management 
by the Board from time to time.
    (C) Appropriate Officers as designated in the Governing Documents 
shall have the authority to contract on behalf of MCA-Mali under any 
procurement undertaken in accordance with the Disbursement Agreement 
(including the Procurement Guidelines) in furtherance of the Program.
    (D) The Management shall have the obligation and right to approve 
certain actions and documents or agreements, including certain Re-
Disbursements, MCC Disbursement Requests, Compact Reports, certain 
human resources decisions and certain other actions, as provided in the 
Governing Documents.
    (e) Advisory Councils.
    (i) Formation. The Government shall ensure the establishment of (1) 
an advisory council to the Board representing the beneficiaries of the 
Airport Improvement Project (``Airport Project Advisory Council''); and 
(2) an advisory council to the Board representing the beneficiaries of 
the Alatona Irrigation Project (the ``Alatona Zone Advisory Council,'' 
and, together with the Airport Project Advisory Council, the ``Advisory 
Councils'' and each an ``Advisory Council''), which Advisory Councils 
shall be independent of MCA-Mali and shall be established to the 
satisfaction of MCC. The Government shall take all steps necessary to 
establish the Advisory Councils as soon as possible following the 
execution of this Compact.
    (ii) Composition.
    (1) Each Advisory Council shall consist of no more than seventeen 
(17) voting members and shall be composed of representatives of 
relevant banking organizations, microfinance institutions, farmer 
associations, women's associations, chambers of commerce, local 
government, anti-corruption associations and environmental and social 
organizations (``Civil Society Stakeholders'').
    (2) The Government shall take all actions necessary and appropriate 
to ensure that each Advisory Council is established consistent with 
this Section 3(e) of this Program Annex and as otherwise specified in 
the Governing Documents or otherwise agreed in writing by the Parties. 
The composition of each Advisory Council may be adjusted by agreement 
of the Parties from time to time to ensure, among others, an adequate 
representation of the intended beneficiaries of the relevant Projects. 
Each member of an Advisory Council may appoint an alternate, approved 
by majority vote of the other members of such Advisory Council, to 
serve when the member is unable to

[[Page 55148]]

participate in a meeting of the Advisory Council.
    (iii) Roles and Responsibilities. Each Advisory Council shall be a 
mechanism to provide representatives of the private sector, civil 
society and local government the opportunity to provide advice and 
input to MCA-Mali regarding the implementation of this Compact. At the 
request of any Advisory Council, MCA-Mali shall provide such 
information and documents as it deems advisable, subject to appropriate 
treatment of such information and documents by the members of such 
Advisory Council. Specifically, during each meeting of an Advisory 
Council, MCA-Mali shall present an update on the implementation of this 
Compact and progress towards achievement of the Objectives. Each 
Advisory Council shall have an opportunity to provide regularly to MCA-
Mali its views or recommendations on the performance and progress on 
the Projects and Project Activities, any Implementation Document, 
procurement, financial management or such other issues as may be 
presented from time to time to such Advisory Council or as otherwise 
raised by such Advisory Council.
    (iv) Meetings. Each Advisory Council shall hold at least two 
general meetings per year as well as such other periodic meetings as 
may be necessary or appropriate from time to time. The members of each 
Advisory Council shall be provided timely advance notice of all such 
general meetings, invited to participate in all such meetings and 
afforded an opportunity during each such meeting to present their views 
or recommendations to such Advisory Council.
    (v) Accessibility; Transparency. The members of each Advisory 
Council shall be accessible to the beneficiaries they represent to 
receive the beneficiaries' comments or suggestions regarding the 
Program. The notices for, and the minutes (including the views or 
recommendations of the Civil Society Stakeholders expressed) of all 
general meetings of, each Advisory Council shall be made public on the 
MCA-Mali Web site or otherwise (including television, radio and print) 
in a timely manner.
    (f) Implementing Entities. Subject to the terms and conditions of 
this Compact and any other Supplemental Agreement between the Parties, 
MCA-Mali may engage one or more Government Affiliates to implement and 
carry out any Project, Project Activity (or a component thereof) or any 
other activities to be carried out in furtherance of this Compact 
(each, an ``Implementing Entity''). The Government shall ensure that 
MCA-Mali enters into an agreement with each Implementing Entity, in 
form and substance satisfactory to MCC, that sets forth the roles and 
responsibilities of such Implementing Entity and other appropriate 
terms and conditions (including the payment of the Implementing Entity, 
if any) (an ``Implementing Entity Agreement''). Any Implementing Entity 
Agreement between MCA-Mali and a Government Affiliate that is a 
Provider or as may otherwise be required under the Disbursement 
Agreement shall be in form and substance satisfactory to MCC. The 
Implementing Entity shall report directly to the relevant Officer, as 
designated in the applicable Implementing Entity Agreement or as 
otherwise agreed by the Parties.
    (g) Fiscal Matters.
    (i) Fiscal Agent. The Government shall ensure that MCA-Mali engages 
a fiscal agent following an international competitive process (a 
``Fiscal Agent''), who shall be responsible for, among other things: 
(1) Assisting MCA-Mali in preparing the Fiscal Accountability Plan; (2) 
ensuring and certifying that Re-Disbursements are properly authorized 
and documented in accordance with established control procedures set 
forth in the Disbursement Agreement, the Fiscal Agent Agreement and 
other Supplemental Agreements; (3) Re-Disbursement from, and cash 
management and account reconciliation of, any Permitted Account 
established and maintained for the purpose of receiving MCC 
Disbursements and making Re-Disbursements (to which the Fiscal Agent 
has sole signature authority); (4) providing applicable certifications 
for MCC Disbursement Requests; (5) maintaining and retaining proper 
accounting, records and document disaster recovery system of all MCC-
funded financial transactions and certain other accounting functions; 
(6) producing reports on MCC Disbursements and Re-Disbursements 
(including any requests therefor) in accordance with established 
procedures set forth in the Disbursement Agreement, the Fiscal Agent 
Agreement, the Fiscal Accountability Plan, or any other Supplemental 
Agreements; (7) assisting in the preparation of budget development 
procedures; and (8) internal management of the Fiscal Agent operations. 
Upon the written request of MCC, the Government shall ensure that MCA-
Mali terminates the Fiscal Agent, without any liability to MCC, and the 
Government shall ensure that MCA-Mali engages a new Fiscal Agent, 
subject to approval by the Board and MCC. The Government shall ensure 
that MCA-Mali enters into an agreement with the Fiscal Agent, in form 
and substance satisfactory to MCC, that sets forth the roles and 
responsibilities of the Fiscal Agent and other appropriate terms and 
conditions, such as payment of the Fiscal Agent (a ``Fiscal Agent 
Agreement''). Such Fiscal Agent Agreement shall not be terminated until 
MCA-Mali has engaged a successor Fiscal Agent or as otherwise agreed by 
MCC in writing.
    (h) Auditors and Reviewers. The Government shall ensure that MCA-
Mali carries out the Government's audit responsibilities as provided in 
Sections 3.8(d), (e) and (f) of this Compact, including engaging one or 
more auditors (each, an ``Auditor'') required by Section 3.8(d) of this 
Compact. As requested by MCC in writing from time to time, the 
Government shall ensure that MCA-Mali also engages (i) an independent 
reviewer to conduct reviews of performance and compliance under this 
Compact pursuant to Section 3.8(f) of this Compact, which reviewer 
shall have the capacity to (1) conduct general reviews of performance 
or compliance, (2) conduct environmental audits, and (3) conduct data 
quality assessments in accordance with the M&E Plan, as described more 
fully in Annex III; and/or (ii) an independent evaluator to assess 
performance as required under the M&E Plan (each, a ``Reviewer''). MCA-
Mali shall select any such Auditor(s) and Reviewer(s) in accordance 
with any Governing Document or other Supplemental Agreement. The 
Government shall ensure that MCA-Mali enters into an agreement with 
each Auditor and each Reviewer, in form and substance satisfactory to 
MCC, that sets forth the roles and responsibilities of the Auditor or 
Reviewer with respect to the audit, review or evaluation, including 
access rights, required form and content of the applicable audit, 
review or evaluation and other appropriate terms and conditions such as 
payment of the Auditor or Reviewer (the ``Auditor/Reviewer 
Agreement''). In the case of a financial audit required by Section 
3.8(d) of this Compact, such Auditor/Reviewer Agreement shall be 
effective no later than one hundred and twenty (120) days prior to the 
end of the relevant period to be audited; provided, however, if MCC 
requires concurrent audits of financial information or reviews of 
performance and compliance under this Compact, then such Auditor/
Reviewer Agreement shall be effective no later than the date agreed by 
the Parties in writing.
    (i) Procurement Agent. The Government shall ensure that MCA-Mali

[[Page 55149]]

engages one or more procurement agents through an international 
competitive process (each, a ``Procurement Agent'') to carry out and 
certify specified procurement activities in furtherance of this Compact 
on behalf of the Government, MCA-Mali, or the Implementing Entity. The 
roles and responsibilities of each Procurement Agent and the criteria 
for selection of a Procurement Agent shall be as set forth in the 
applicable Implementation Letter or Supplemental Agreement. The 
Government shall ensure that MCA-Mali enters into an agreement with 
each Procurement Agent, in form and substance satisfactory to MCC, that 
sets forth the roles and responsibilities of the Procurement Agent with 
respect to the conduct, monitoring and review of procurements and other 
appropriate terms and conditions, such as payment of the Procurement 
Agent (each, a ``Procurement Agent Agreement''). Any Procurement Agent 
shall adhere to the procurement standards set forth in the Disbursement 
Agreement and the Procurement Guidelines and ensure procurements are 
consistent with the procurement plan adopted by MCA-Mali pursuant to 
the Disbursement Agreement (the ``Procurement Plan''), unless MCA-Mali 
and MCC otherwise agree in writing.
4. Finances and Fiscal Accountability
    (a) Multi-Year Financial Plan; Detailed Budget.
    (i) Multi-Year Financial Plan. The multi-year financial plan for 
the Program, showing the estimated amount of MCC Funding allocable to 
each Project, the administration of the Program (and its components) 
and the monitoring and evaluation of the Program (the ``Multi-Year 
Financial Plan'') over the Compact Term on an annual basis, is 
summarized in Annex II to this Compact.
    (ii) Detailed Budget. During the Compact Term, the Government shall 
ensure that MCA-Mali timely delivers to MCC a detailed budget, at a 
level of detail and in a format acceptable to MCC, for the 
administration of the Program, the monitoring and evaluation of the 
Program, and the implementation of each Project (the ``Detailed 
Budget''). The Detailed Budget shall be a component of the Work Plan 
and shall be delivered by such time as specified in the Disbursement 
Agreement, or as may otherwise be agreed by the Parties.
    (iii) Expenditures. Unless the Parties otherwise agree in writing, 
no financial commitment involving MCC Funding shall be made, no 
obligation of MCC Funding shall be incurred, and no Re-Disbursement 
shall be made or MCC Disbursement Request shall be submitted, for any 
activity or expenditure unless the expense for such activity or 
expenditure is provided for in the Detailed Budget, and unless 
uncommitted funds exist in the balance of the Detailed Budget for the 
relevant period.
    (iv) Modifications to Multi-Year Financial Plan or Detailed Budget. 
Notwithstanding anything to the contrary in this Compact, MCA-Mali may 
amend the Multi-Year Financial Plan, the Detailed Budget, or any 
component thereof (including any amendment that would reallocate the 
funds among the Projects, the Project Activities, or any activity under 
Program administration or M&E), without amending this Compact so long 
as MCA-Mali requests in writing and receives the approval of MCC for 
such amendment and such amendment is consistent with the requirements 
of this Compact (including Section 4 of Annex II), the Disbursement 
Agreement and any other Supplemental Agreement between the Parties. Any 
such amendment shall (1) be consistent with the Compact Goal and the 
Implementation Documents; (2) shall not cause the amount of MCC Funding 
to exceed the aggregate amount specified in Section 2.1(a) of this 
Compact; and (3) shall not cause the Government's obligations or 
responsibilities or overall contribution of resources to be less than 
as specified in Section 2.2(a) of this Compact, this Annex I or 
elsewhere in this Compact. Upon any such amendment, MCA-Mali shall 
deliver to MCC a revised Detailed Budget, together with a revised 
Multi-Year Financial Plan, reflecting such amendment, along with the 
next MCC Disbursement Request.
    (b) Disbursement and Re-Disbursement. The Disbursement Agreement, 
as amended from time to time, shall specify the terms, conditions and 
procedures on which MCC Disbursements and Re-Disbursements shall be 
made. The obligation of MCC to make MCC Disbursements or approve Re-
Disbursements is subject to the fulfillment, waiver or deferral of any 
such terms and conditions. The Government and MCA-Mali shall jointly 
submit the applicable request for an MCC Disbursement (the ``MCC 
Disbursement Request'') as may be specified in the Disbursement 
Agreement. MCC will make MCC Disbursements for valid and approved 
requirements upon request by the Fiscal Agent from time to time as 
provided in the Disbursement Agreement or as may otherwise be agreed by 
the Parties, subject to Program requirements and performance by the 
Government, MCA-Mali and other relevant parties in furtherance of this 
Compact. Re-Disbursements will be made from time to time based on 
requests by an authorized representative of the appropriate party 
designated for the size and type of Re-Disbursement in accordance with 
any Governing Document and Disbursement Agreement; provided, however, 
unless otherwise agreed by the Parties in writing, no Re-Disbursement 
shall be made unless and until the written approvals specified herein 
and in any Governing Document and the Disbursement Agreement for such 
Re-Disbursement have been obtained and delivered to the Fiscal Agent.
    (c) Fiscal Accountability Plan. By such time as specified in the 
Disbursement Agreement or as otherwise agreed by the Parties, MCA-Mali 
shall adopt, as part of the Implementation Documents, a plan that 
identifies the principles, mechanisms and procedures to ensure 
appropriate fiscal accountability for the use of MCC Funding provided 
under this Compact, including the process to ensure that open, fair, 
and competitive procedures will be used in a transparent manner in the 
administration of grants or cooperative agreements and the procurement 
of goods, works and services for the accomplishment of the Objectives 
(the ``Fiscal Accountability Plan''). The Fiscal Accountability Plan 
shall set forth, among others, requirements with respect to the 
following matters: (i) Re-Disbursements, timely payment to vendors, 
cash management and account reconciliation; (ii) funds control and 
documentation; (iii) accounting standards and systems; (iv) content and 
timing of reports; (v) preparing budget development procedures and the 
Compact implementation budget; (vi) policies concerning records, 
document disaster recovery, public availability of all financial 
information and asset management; (vii) procurement and contracting 
practices; (viii) inventory control; (ix) the role of independent 
auditors; (x) the roles of fiscal agents and procurement agents; (xi) 
separation of duties and internal controls; and (xii) certifications, 
powers, authorities and delegations.
    (d) Permitted Accounts. The Government shall establish, or cause to 
be established, such accounts (each, a ``Permitted Account,'' and, 
collectively, the ``Permitted Accounts'') as may be agreed by the 
Parties in writing from time to time, including:
    (i) A single, completely separate United States Dollar interest-
bearing

[[Page 55150]]

account (the ``Special Account'') at a commercial bank, subject to MCC 
approval, that is procured through a competitive process to receive MCC 
Disbursements;
    (ii) If necessary, an interest-bearing local currency of Mali 
account (the ``Local Account'') at a commercial bank in Mali, subject 
to MCC approval, that is procured through a competitive process for the 
purpose of making Re-Disbursements; and
    (iii) Such other interest-bearing accounts to receive MCC 
Disbursements in such banks as the Parties mutually agree upon in 
writing.
    No other funds shall be commingled in a Permitted Account other 
than MCC Funding and Accrued Interest thereon. All MCC Funding held in 
an interest-bearing Permitted Account shall earn interest at a rate of 
no less than such amount as the Parties may agree in the applicable 
Bank Agreement or otherwise. MCC shall have the right, among others, to 
view any Permitted Account statements and activity directly on-line, 
where feasible, or at such other frequency as the Parties may otherwise 
agree. By such time as shall be specified in the Disbursement Agreement 
or as otherwise agreed by the Parties, the Government shall ensure 
that, for each Permitted Account, MCA-Mali enters into an agreement 
with the applicable Bank, satisfactory to MCC, that sets forth the 
signatory authority, access rights, anti-money laundering and anti-
terrorist financing provisions, and other terms related to the 
Permitted Account (each, a ``Bank Agreement''). For purposes of this 
Compact, the banks holding an account referenced in Sections 4(d) of 
this Program Annex are each a ``Bank'' and are collectively referred to 
as the ``Banks.''
5. Transparency; Accountability
    Transparency and accountability to MCC and to the beneficiaries are 
important aspects of the Program and the Projects. Without limiting the 
generality of the foregoing, and in an effort to achieve the goals of 
transparency and accountability, the Government shall ensure that MCA-
Mali:
    (a) Establishes an e-mail suggestion box as well as a means for 
other written comments that interested persons may use to communicate 
ideas, suggestions or feedback to MCA-Mali;
    (b) Considers as a factor in its decision-making the 
recommendations of the Advisory Councils;
    (c) Develops and maintains, in a timely, accurate and appropriately 
comprehensive manner, the MCA-Mali Web site that includes postings of 
information and documents in English and French;
    (d) Posts on the MCA-Mali Web site, and otherwise makes publicly 
available via appropriate means (including television, radio and 
print), in the appropriate language the following documents or 
information from time to time:
    (i) This Compact;
    (ii) All minutes of the meetings of the Board and the meetings of 
the Advisory Councils, unless otherwise agreed by the Parties;
    (iii) The M&E Plan, as amended from time to time, along with 
periodic reports on Program performance;
    (iv) Such financial information as may be required by this Compact, 
the Disbursement Agreement or any other Supplemental Agreement, or as 
may otherwise be agreed from time to time by the Parties;
    (v) All Compact Reports;
    (vi) All audit reports by an Auditor and any periodic reports or 
evaluations by a Reviewer;
    (vii) All relevant environmental impact assessments and supporting 
documents, and such other environmental documentation as MCC may 
request;
    (viii) A copy of the Disbursement Agreement, as amended from time 
to time;
    (ix) A copy of any document relating to the formation, organization 
and governance of MCA-Mali, including all Governing Documents, together 
with any amendments thereto; and
    (x) A copy of the Procurement Guidelines, any procurement policies 
or procedures and standard documents, certain information derived from 
each Procurement Plan (as specified in the Disbursement Agreement), and 
all bid requests and notifications of awarded contracts.
6. Environmental Accountability
    (a) The Government shall ensure that MCA-Mali (or any other 
Permitted Designee) (i) undertakes and completes any environmental 
impact assessments (each, an ``EIA''), any environmental assessment 
(each an ``EA''), environmental management plans (each, an ``EMP'') and 
resettlement action plans (each, a ``RAP''), each in form and substance 
satisfactory to MCC, and as required under the laws of Mali, the 
Environmental Guidelines, this Compact or any Supplemental Agreement or 
as otherwise required by MCC; and (ii) undertakes to implement any 
environmental and social mitigation measures identified in such 
assessments or plans to MCC's satisfaction.
    (b) The Government shall commit to fund all necessary costs of 
environmental mitigation (including costs of resettlement) not 
specifically provided for in the budget for any Project.

Schedule 1 to Annex I Airport Improvement Project

    This Schedule 1 generally describes and summarizes the key elements 
of the project that the Parties intend to implement in furtherance of 
the Bamako-S[eacute]nou Airport Improvement Project Objective (the 
``Airport Improvement Project''). Additional details regarding the 
implementation of the Airport Improvement Project will be included in 
the Implementation Documents and in the relevant Supplemental 
Agreements.
1. Background
    Economic growth and poverty reduction depend on enhanced access to 
markets and trade, but Mali's access is severely constrained. The 
Airport Improvement Project will expand Mali's access to markets and 
trade through improvements to the transportation infrastructure at the 
Airport, and better management of the national air transport system. 
The Government recognizes the importance of improved air transportation 
infrastructure. Mali's PRSP for 2002 includes rehabilitation of Airport 
infrastructure to ``promote access of Malian producers to domestic and 
international markets.''
    Mali, a landlocked country, depends heavily on inadequate rail and 
road networks that result in high transportation costs, as well as on 
freight transport through seaports in neighboring countries, such as 
Conakry, Guinea (Bamako's closest port which is 1000 km away) and 
Abidjan, Cote d'Ivoire. In the last few years, the instability in Cote 
d'Ivoire has dramatically limited Mali's market access. Before the 
outbreak of the Ivorian crisis, 70% of Malian exports were transported 
via the port of Abidjan. In 2003, this amount dwindled to less than 18% 
due to the aforementioned crisis. Mali cannot control overland routes 
to international and regional markets. Therefore, air traffic has 
become Mali's lifeline for transportation of both passengers and export 
products.
    The deteriorating conditions at the Airport will soon limit the 
Airport's capacity to handle air traffic growth if significant capital 
improvements are not made. The Airport's basic infrastructure dates 
from 1974, is in poor condition, and is inadequate to handle increased 
passenger and cargo traffic. On the

[[Page 55151]]

airside, the runway is too short to accommodate large aircraft without 
take-off load penalties and range restrictions, the aeronautical 
pavements urgently need resurfacing and reinforcement, the air 
navigation aids are reaching the end of their useful life, and airfield 
security is deficient. On the landside, the passenger terminal building 
is too small to handle current traffic volumes at acceptable levels of 
service, and the facilities and equipment are in poor physical 
condition. Current utility infrastructure related to both the airside 
and landside activities at the Airport are being used at maximum 
capacity and suffer from unreliable and non-dedicated service.
2. Summary of Project and Related Project Activities
    The Airport Improvement Project is intended to remove constraints 
to air traffic growth and increase the Airport's efficiency in both 
passenger and freight handling through airside and landside 
infrastructure improvements, as well as the establishment of 
appropriate institutional mechanisms to ensure effective management, 
operation, and maintenance of the Airport facilities over the long 
term.
    Since the Airport Improvement Project must be completed within the 
Compact Term and within the established budget, if, at any time during 
design, procurement and implementation activities, MCC reasonably 
determines that there is a high risk that the Airport Improvement 
Project will not be completed within the Compact Term and/or the 
established budget, then MCC may, in consultation with MCA-Mali, 
appropriately revise the scope of the applicable Project Activities to 
ensure project completion within the Compact Term and the established 
budget.
    The Airport Improvement Project includes the following Project 
Activities:
    <bullet> Airside Infrastructure. Improvements will include 
reinforcement and resurfacing of existing runway, taxiway and apron 
area pavements, including stabilization and reinforcement of the 
shoulders associated with the airside pavements; extension of the 
runway by roughly 480 m to the northeast in order to allow long-range 
aircraft to take off with maximum payloads; expansion of the aircraft 
parking apron area; transfer/replacement and upgrading of air 
navigation aids following the runway extension; refurbishing and 
extension of the airfield lighting systems; reinforcement of airside 
security equipment and facilities, as needed, in order to satisfy 
International Civil Aviation Organization (ICAO) standards and 
recommended practices and complement other security works and 
equipment; improvements to the earthworks and drainage of the airport 
airside, as needed, in order to satisfy relevant Malian standards; 
extension of the taxiway system by construction of a stub taxiway 
connecting the runway and the aircraft parking apron, a partial 
parallel taxiway and an aircraft turnaround at the northeast end of the 
runway.
    <bullet> Landside Infrastructure. Improvements will include 
construction of a new passenger terminal building with a floor area of 
approximately 15,000 square meters and a capacity of approximately 1.5 
million passengers per annum at a Category ``C'' Level of Service 
according to International Air Transportation Association (IATA) 
standards; construction of other related landside facilities, including 
access and internal circulation roads and vehicle parking lots; 
construction of an integrated central utilities plant; construction and 
installation of water supply and distribution systems; construction and 
installation of wastewater drainage and treatment facilities, storm 
water and solid waste disposal systems; demolition of the existing air 
freight terminal and blast fences; demolition, replacement and 
enlargement of the ground service equipment facilities adjacent to the 
apron area.
    <bullet> Institutional Strengthening. Infrastructure improvements 
will be accompanied by the establishment of appropriate institutional 
mechanisms to ensure effective management, operation and maintenance of 
the Airport facilities over the long term. These measures will involve 
both the management of the Airport, as well as the wider regulatory 
framework governing the civil aviation sector in Mali.
    In connection with the Project Activities, MCA-Mali will assist and 
take all necessary steps to ensure that the joint EIA, EMP/EMS, 
including an HIV/AIDS awareness plan, and RAP (consistent with World 
Bank Operational Policy 4.12 on Involuntary Resettlement) for all 
activities of the Airport Improvement Project are processed and permits 
delivered in accordance with Mali Decr[eacute]t No. 03-594-P-RM on 
environmental impact studies and the Environmental Guidelines, all of 
which will be subject to MCC approval. MCC Funding will support 
implementation of the environmental and social mitigation measures 
identified in the EIA, EMP/EMS, and RAP, in a manner satisfactory to 
MCC, according to the conditions precedent set forth in the 
Disbursement Agreement.
    The M&E Plan (described in Annex III) will set forth anticipated 
results and, where appropriate, regular benchmarks that may be used to 
monitor the progress of the implementation of the Airport Improvement 
Project. Performance against these benchmarks, as well as the overall 
impact of the Airport Improvement Project, will be assessed and 
reported at the intervals to be specified in the M&E Plan, or as 
otherwise agreed by the Parties, from time to time. The Parties expect 
that additional indicators will be identified during implementation of 
the Airport Improvement Project. The expected results from, and the key 
benchmarks to measure progress on, the Airport Improvement Project, as 
well as the Project Activities undertaken or funded thereunder, are set 
forth in Annex III.
    Conditions precedent to each Project Activity under the Airport 
Improvement Project, and the sequencing of such Project Activities, 
shall be set forth in the Disbursement Agreement, other Supplemental 
Agreements and the relevant Implementation Documents.
    The following summarizes each Project Activity under the Airport 
Improvement Project:
    (a) Project Activity: Airside Infrastructure (the ``Airside 
Infrastructure Activity'')
    Although the existing aircraft pavements, runway, and parking apron 
surfaces are functional, they are more than thirty years old and 
detailed studies have indicated that they will deteriorate 
progressively without near-term improvements. In addition to being in 
poor condition, the runway is also one of the shortest in West Africa, 
which has further constrained the Airport's ability to attract air 
services to Mali and retain them. This Project Activity will improve 
the design parameters (geometry and bearing strength) of the airside 
infrastructure and improve safety and security operations such that the 
Airport can more efficiently accommodate a greater volume of air 
traffic, a wider range of destinations and heavier aircraft and 
payloads in the future.
    Specifically, MCC Funding will support the following:
    (i) Resurfacing, reinforcement, and expansion of the runway, apron, 
and aircraft pavement areas through (1) a structural overlay to 
existing apron, taxiway, and runway areas; (2) an extension of the 
runway of at least 400 meters; and (3) extension of the taxiway system 
and aircraft parking aprons to provide for safer and more efficient

[[Page 55152]]

aircraft circulation and additional aircraft stands to provide capacity 
to accommodate forecast airline traffic, overnight staging and a back-
up for smaller domestic and charter aircraft.
    (ii) Replacement and upgrading of existing aging navigational aids 
to bring Airport facilities up to a ``common level of service,'' as the 
equipment has reached the end of its useful life. The extension of the 
runway will also require additions to the airfield lighting system.
    (iii) Improvement to airfield security will include works and 
equipment required to ensure compliance with international security 
standards and complement projects funded by the World Bank and other 
sources.
    (b) Project Activity: Landside Infrastructure (the ``Landside 
Infrastructure Activity'')
    Due to limited expansion over the past 32 years, the ability of the 
terminal to accommodate passenger traffic has steadily deteriorated to 
the point that it operates at IATA Level of Service ``F'' (chronic 
congestion and frequent system breakdown). The existing ground support 
equipment facilities are inefficient, outdated, and lacking in space 
for storage of materials; their current location separates passenger 
activities from Airport support operations and constrains expansion of 
the passenger terminal facilities, with a resulting negative impact on 
the functionality and security of the Airport. As passenger and cargo 
traffic increase over the next 10-15 years, significant utility 
infrastructure improvements will also be needed to meet projected 
demand. This Project Activity will expand the size, quality, and 
operational efficiency of the Airport's landside infrastructure so that 
it can accommodate the significant increases in passenger and cargo 
traffic forecast for Mali in the future.
    Specifically, MCC Funding will support the following:
    (i) Upgrade of the passenger terminal facilities by constructing a 
new passenger terminal building.
    (ii) Enhancement of support facilities to accommodate aircraft 
servicing and ground support activities, airport maintenance and 
auxiliary equipment.
    (iii) Provision for road and terminal parking improvements to 
enhance the safety and efficiency of current vehicular circulation and 
parking areas and accommodate future projected needs.
    (iv) Construction of supporting utility infrastructure to handle 
the projected service requirements of the Airport. In particular, 
wastewater, water, solid waste, power, telecommunications, and drainage 
systems will be improved and enhanced.
    (c) Project Activity: Institutional Strengthening (the 
``Institutional Strengthening Activity'')
    Under the present division of jurisdictions, a number of entities 
have responsibility for the civil aviation sector in Mali in general 
and the regulation, oversight, management, operation, and development 
of the Airport in particular. The Ministry of Equipment and Transport 
has overall responsibility, with oversight and regulation of the civil 
aviation sector and airports delegated to a new independent agency, 
ANAC. The Airport's maintenance and operation responsibilities are 
split between the air navigation service provider, ASECNA, for airside 
facilities and the Airport operator, A[eacute]roports du Mali 
(``AdM''), for landside facilities. ASECNA is responsible for the 
``technical'' aspects of the Airport, including the runway, taxiways, 
apron, airfield lighting, navigational aids, control tower, 
telecommunications and fire fighting and rescue facilities. AdM, in 
turn, is responsible for the ``commercial'' aspects of the Airport, 
including the passenger terminal, landside roads and parking, cargo 
terminal, flight kitchen and freight forwarders' facilities. According 
to the existing institutional arrangements, both organizations operate 
and maintain facilities put at their disposal by the Government.
    Specifically, MCC Funding will support the following:
    (i) Reinforcement of the new civil aviation regulatory and 
oversight agency (ANAC) by providing technical assistance to implement 
a new organizational structure, administrative and financial 
procedures, staffing and training, and providing equipment and 
facilities.
    (ii) Rationalization and reinforcement of the Airport's management 
and operations agency (AdM) by providing technical assistance to 
establish a model for the management of the Airport and the long-term 
future status and organizational structure of AdM, including provision 
for eventual private sector participation.
3. Beneficiaries
    Improvements in the airside and landside facilities in the Airport 
are intended to support economic growth through (a) increased revenue 
generated by growth in passenger and aircraft traffic, and (b) 
increases in the value and volume of goods shipped through the Airport. 
Direct beneficiaries include passengers who spend less time going 
through Airport procedures prior to boarding, additional Airport 
services employees for Airport operations, baggage handling, and flight 
kitchen, as well as passenger terminal commercial concessions. An 
increase in foreign passengers implies additional substantial benefits 
for the tourism industry, both in terms of increased revenues to hotels 
and restaurants and additional employment and wages.
    The indirect impact of the Airport Improvement Project through 
increased tourism and impact on the informal sector could have a 
significant effect on growth and poverty reduction. Increased demand 
for airline services should have significant additional long-term 
benefits for Mali as tourist facilities expand in tandem with increased 
tourism. Further, new business travelers may translate into additional 
foreign investment for Mali which could transform the economic profile 
of the country.
    The informal sector active around the Airport will benefit from an 
expansion of Airport passenger and cargo traffic. Since unemployment 
and underemployment in the Bamako region are substantial, a proportion 
of new service employees are likely to transfer from low paying, 
sporadic informal activity to higher paying, steady work at the 
Airport, an additional important indirect benefit to the economy.
    A majority of those impacted by the Airport Improvement Project are 
expected to be women since official Malian employment data indicate 
that 82% of hotel and restaurant workers in Bamako are women. Women 
also account for 56% of the informal sector and the majority of working 
women in Bamako are employed in the informal sector. Further analysis 
using data from specific surveys to be conducted, will provide more 
detailed and reliable data on employment and poverty in the Bamako 
area.
4. Donor Coordination; Role of Private Sector and Civil Society
    The Airport Improvement Project leverages and complements other 
donor, private sector and civil society activities in Mali as described 
below. Throughout implementation, MCC will continue to collaborate with 
these donors to strengthen the institutional reforms and broaden access 
to the Airport for passengers and goods.
USDOT Safe Skies for Africa (SSFA)
    The SSFA program is intended to promote sustainable improvements in 
aviation safety, security, and air navigation, and to support Africa's 
integration into the global economy. It is based on the premise that 
``Safe Skies'' are a prerequisite for increased trade

[[Page 55153]]

and investment and long-term economic development in Africa. Specific 
goals of the SSFA program include: (a) Increasing the number of sub-
Saharan African countries that meet ICAO safety standards (based on 
Federal Aviation Administration (FAA) assessments); (b) improving 
airport security in the region; and (c) improving regional air 
navigation services. SSFA coordinates activities of other agencies such 
as the FAA, TSA (Transportation Security Administration) and the 
National Transportation Safety Board to improve the capacities of 
African aviation organizations.
    Under this program, the United States serves as a technical advisor 
and facilitator of actions taken by the African nations, with 
assistance from the private sector, regional institutions and 
international organizations. While host governments bear primary 
responsibility for funding the program, the Department of Homeland 
Security, through the TSA, continuously consults with, and provides 
advice to, host-nation authorities. TSA also performs periodic aviation 
security audits in order to track national progress in meeting the 
goals and objectives of the SSFA.
    In April 2008, TSA conducted a security survey of the Airport and 
an appraisal of the Government's progress in meeting the SSFA program 
goals and the international aviation security standards of ICAO. This 
survey revealed that the Government is taking concrete steps to respond 
to the comprehensive security audit of the Airport conducted by ICAO in 
December 2004 including adoption of a number of security-related plans 
and programs at the national level and at the level of the operators at 
the Airport.
    The Government, through ANAC, is actively involved in the SSFA 
process. The senior leadership of ANAC is aware of the challenges they 
face and appear to have a clear understanding of what actions are 
necessary to achieve their agency's goals.
    Technical training programs presented by the TSA and ICAO have 
given the Government a basic understanding of the international civil 
aviation security system and has aided the Government in developing its 
National Aviation Security Plan. The Government has taken advantage of 
the training offered, but still has some way to go in the development 
of national training standards/programs to ensure sustainability of 
operations.
    The above-mentioned TSA survey recommended that the TSA 
Representative for Mali remain actively engaged with the Government to 
ensure success of the Airport Improvement Project and that the TSA 
should consult with the MCC Representatives to provide expert advice in 
order to incorporate security into the new airport terminal design.
World Bank
    The World Bank is assisting in the funding of a regional program in 
West and Central Africa aimed at improving civil aviation safety and 
security as a key element of improving the performance and 
affordability of air transportation and optimizing its role as an 
engine of economic and social development. With respect to Mali, a 
country agreement under this program focuses on strengthening the 
oversight capacities of ANAC and improving Airport security and safety, 
including the provision of civil aviation authority equipment, Airport 
screening equipment, a crisis center to meet ICAO requirements, some 
Airport infrastructure and consulting services aimed at reform and 
capacity building.
    The World Bank has also signed an agreement with the Government for 
the ``Mali Growth Support Project'' which includes, among other 
activities, loan financing for the development of Airport and 
industrial park facilities located within the Airport domain. It also 
includes assistance aimed at strengthening the management of the 
Airport and Industrial Park. The program is to be realized between 2006 
and 2011.
COSCAP/WAEMU
    Mali is a signatory of a recent agreement involving the West 
African Economic and Monetary Union (``WAEMU'') and Mauritania and 
ICAO, referred to as Cooperative Operational Safety and Continuing 
Airworthiness Project (``COSCAP''), with the goal of promoting the 
security and safety of aviation in the West African region. Under this 
agreement, a permanent community agency of safety and security is to be 
established, with the aim of achieving better efficiency and economy by 
means of the common use of resources on the part of the signatory 
countries.
Private Sector and Civil Society
    Private sector and civil society participated in the consultative 
process that resulted in inclusion of the Airport Improvement Project 
in the Compact. This Project aims to leverage investment by businesses 
in the Airport, as well as through businesses that benefit from Airport 
traffic (including airlines, ground support operators, retail 
concessions, businesses exporting and importing through the Airport, 
tourism operators, etc.), so efforts will be made to continue to 
involve their feedback on the design and implementation of this 
Project. Both civil society and the private sector will be represented 
on the MCA-Mali Board of Directors and Advisory Councils. In addition, 
consultations on the EIA will be conducted with affected parties and 
other stakeholders, in accordance with the Environmental Guidelines, 
Mali Decr[eacute]t No. 03-594-P-RM on environmental impact studies, and 
the draft Arr[ecirc]te Interministeriel on the procedure for public 
consultation on environmental impact studies. Also, consultations of 
persons affected by the Airport Improvement Project will be conducted 
for the RAP, consistent with World Bank Operational Policy 4.12 on 
Involuntary Resettlement.
5. U.S. Agency for International Development (``USAID'')
    Both USAID-funded ``Mali Finance'' and ``TradeMali'' projects have 
improved the value chains of agricultural products such as mangoes and 
green beans. These high value products have strong potential for 
increased exportation via air freight. The new IICEM (Mali Economic 
Growth Initiative and Innovations) program of USAID/Mali builds on the 
achievements of the ``Mali Finance,'' ``TradeMali'' and ``PRODEPAM'' 
(Program in Development of Agricultural Production) projects to pursue 
the following goals: (a) Expansion of irrigated agriculture from 
lowland, flood control-type irrigated perimeters, (b) development of 
appropriate mechanisms and instruments with key partner banks and 
microfinance institutions to support production and marketing, (c) the 
expansion of markets and marketing for producers' groups and traders, 
and (d) introduction of improved production and processing 
technologies.
6. Sustainability
    The Airport Improvement Project will build on recent Government 
efforts to reform the Malian civil aviation sector through the 
Institutional Strengthening Activity, providing technical assistance to 
both ANAC and AdM. The Airport Improvement Project will also assist in 
improving the maintenance and operation of the Airport by ensuring the 
implementation of efficient, transparent and effective private 
participation in the management of the Airport, in collaboration with 
relevant Government entities, as well as the private sector. 
Environmental and social sustainability is expected to be achieved 
through the

[[Page 55154]]

development and implementation of an EMP that will guide construction 
activities and implementation of pollution control for new and 
rehabilitated infrastructure. An Environmental Management System 
(``EMS'') will be developed to provide for continuing environmental 
sustainability of Airport operations. AdM and the DNCPN will receive 
technical assistance to develop environmental capacity during the 
Compact Term. AdM will be required to seek ISO 14000 certification 
prior to the end of the Compact Term. AdM will also be required to hire 
an Airport and Industrial Park environmental manager to oversee the 
implementation of environmental requirements.
7. Proposals
    Public solicitations for proposals are anticipated to procure 
goods, works and services, as appropriate, to implement all Project 
Activities under the Airport Improvement Project. MCA-Mali will 
develop, subject to MCC approval, a process for consideration of all 
such proposals. Notwithstanding the foregoing, MCA-Mali may also 
consider, using a process developed subject to MCC approval, any 
unsolicited proposals it might receive.
8. Government Obligation
    The Government shall assure the provision of adequate financing for 
the rehabilitation and expansion of air cargo facilities.

Schedule 2 to Annex I Alatona Irrigation Project

    This Schedule 2 generally describes and summarizes the key elements 
of the project that the Parties intend to implement in furtherance of 
the Alatona Irrigation Project Objective (the ``Alatona Irrigation 
Project''). Additional details regarding the implementation of the 
Alatona Irrigation Project will be included in the Implementation 
Documents and in the relevant Supplemental Agreements.
1. Background
    MCC's investments will support the development of key 
infrastructure and policy reform for productive sectors and capitalize 
on one of Mali's major assets, the Niger River Delta, for irrigated 
agriculture. The Alatona Irrigation Project will create a platform for 
increased production and productivity of agriculture and will be a 
catalyst for the transformation and commercialization of family farms. 
It will support Mali's national development strategy to increase the 
contribution of the rural sector to economic growth and help achieve 
national food security. Agriculture is a vital economic sector, 
contributing 40% to GDP. Eighty percent of the population earns a 
living from agriculture. MCC's investments in this sector will be 
strengthened by policy reforms and institutional support such as formal 
land titles for farmers, demand-driven rural advisory services, an 
improved business environment, and increased access to markets and 
trade. The hard and soft investments will impact the poor in Mali, 
particularly Malian farmers, not only in the Alatona zone but, over 
time, on a national and regional scale.
    The Alatona zone is located in the Office du Niger (ON). The term 
ON refers both to the geographical zone and the authority charged with 
the management of water resources and agricultural support in the zone. 
The ON comprises one million ha of a vast fossilized inland delta whose 
rich, alluvial soils can be irrigated via a gravity-fed system from the 
Niger River, the largest river in West Africa. Its waters are highly 
suitable for irrigation with low sediment and salt content, minimizing 
the risk of salinization. Recognized as a high potential agricultural 
zone, the French colonial administration established an extensive 
hydrological network of diversions, canals, and drains in the 1930s. 
Rice production has been the dominant agricultural activity since 1970, 
with some counter-season horticultural production. Approximately 80,000 
ha are under production today, with the possibility for expansion to 
200,000 ha, with further infrastructure investment.
2. Summary of the Alatona Irrigation Project and Related Project 
Activities
    The Alatona Irrigation Project is focused on increasing production 
and productivity, increasing farmer incomes, improving land tenure 
security, modernizing irrigated production systems and mitigating the 
uncertainty from subsistence rain-fed agriculture. It seeks to develop 
up to 16,000 ha of newly irrigated lands, which would represent an 
almost 20% increase of ``drought-proof'' cropland and a 7% increase of 
the country's total stock of fully or partially irrigated land. The 
Alatona Irrigation Project will introduce innovative agricultural, land 
tenure, and water management practices, as well as policy and 
organizational reforms aimed at realizing the ON's potential to serve 
as an engine of rural growth for Mali.
    Since the Alatona Project must be completed within the Compact Term 
and within the established budget, if, at any time during design, 
procurement and implementation activities, MCC reasonably determines 
that there is a high risk that the Alatona Project will not be 
completed within the Compact Term and/or the established budget, then 
MCC may, in consultation with MCA-Mali, appropriately revise the scope 
of the applicable Project Activities to ensure project completion 
within the Compact Term and the established budget.
    The Project Activities that are funded under this Project are:
    <bullet> Niono--Goma Coura Road. This Project Activity will upgrade 
an 81 km north-south road within the national highway network from its 
current earth/gravel condition to a paved standard. The investment will 
also include an additional access spur to the Alatona perimeter at the 
village of Dogofry.
    <bullet> Irrigation Planning and Infrastructure. This Project 
Activity will involve main conveyance system upgrade and expansion, 
Alatona irrigation system development, and support to the ON agency on 
water management.
    <bullet> Land Allocation. The Alatona Irrigation Project will 
improve rural land tenure security in Mali by allocating newly 
developed, irrigated land to family farmers, women market gardeners, 
and farming companies in private ownership. These land recipients will 
purchase the land by making annual payments over a 15-20 year period. 
This Project Activity consists of land parcel creation, land rights 
education, registration system upgrade, land parcel allocation and 
titling, and management of land revenues.
    <bullet> Resettlement, Social Infrastructure, and Social Services. 
This Project Activity will compensate families residing in the 
perimeter or with rights to land therein consistent with World Bank 
Operational Policy 4.12 on Involuntary Resettlement by offering land in 
the irrigation perimeter or, if the land option is not chosen, other 
compensation alternatives. This Project Activity will provide social 
infrastructure, to serve these project-affected persons plus incoming 
settlers and other migrant families and also support social services 
(primarily education and health staff) during the last three years of 
the Compact Term.
    <bullet> Agricultural Services. This Project Activity will support 
a range of agricultural, institutional and related services to 
strengthen capacity and improve agricultural practice through applied 
agricultural research, extension and farmer training, support to farmer 
organizations, and support to water users associations (``WUAs'').

[[Page 55155]]

    <bullet> Financial Services. This Project Activity will encourage 
agricultural lending by reducing the risks of extending credit in this 
newly developed zone, improving transparency within the existing 
financial system, and strengthening the capabilities of local financial 
institutions through a credit risk sharing program, microfinance credit 
bureau strengthening, financial institution capacity building, and 
direct support to farmers.
    In connection with the Project Activities (other than the Road 
Activity, except as provided in Section 2(a) below), MCA-Mali will 
assist and take all necessary steps to ensure that the EIA, EMP 
(including an HIV/AIDS awareness plan and a pest management plan), and 
RAP (consistent with World Bank Operational Policy 4.12 on Involuntary 
Resettlement) for all irrigation activities of the Alatona Irrigation 
Project are processed and permits delivered in accordance with Mali 
Decr[eacute]t No 03-594-P-RM on environmental impact studies and the 
Environmental Guidelines, all of which will be subject to MCC approval. 
MCC funding will support implementation of the environmental and social 
mitigation measures as identified in the EIA, EMP, HIV/AIDS awareness 
plan, pest management plan and RAP, satisfactory to MCC, according to 
the conditions precedent set forth in the Disbursement Agreement.
    The M&E Plan (described in Annex III) will set forth anticipated 
results and, where appropriate, regular benchmarks that may be used to 
monitor the progress of the implementation of the Alatona Irrigation 
Project. Performance against these benchmarks, as well as the overall 
impact of the Alatona Irrigation Project, will be assessed and reported 
at the intervals to be specified in the M&E Plan, or as otherwise 
agreed by the Parties. The Parties expect that additional indicators 
will be identified during implementation of the Alatona Irrigation 
Project. The expected results from, and the key benchmarks to measure 
progress on, the Alatona Irrigation Project, as well as the Project 
Activities undertaken or funded thereunder, are set forth in Annex III.
    Conditions precedent to each Project Activity under the Alatona 
Irrigation Project, and the sequencing of such Project Activities, 
shall be set forth in the Disbursement Agreement, any other 
Supplemental Agreements and the relevant Implementation Documents.
    The following summarizes each Project Activity under the Alatona 
Irrigation Project:
    (a) Project Activity: Niono--Goma Coura Road (the ``Road 
Activity'').
    The Road Activity involves the upgrading of a key segment of the 
national highway network serving the Alatona zone, providing vital 
access to inputs, markets, and social services to the Alatona zone and 
other farmers in the northern sector. The Niono-Goma Coura road forms 
the first 81 km of a 450 km road from Niono to Tonka, recently 
reclassified as National Road 33. It is presently an earth road with 
laterite surface and varying width of 6-7 meters, which has been 
compromised by erosion of the embankment slopes. The laterite is worn 
away in numerous locations, leading to washouts and difficult driving 
conditions during the wet season.
    Specifically, MCC Funding will support the following:
    (i) Double bitumen surface treatment paving of 81 km of National 
Road 33 (7 meter carriageway and 1.5 meter shoulders).
    (ii) Construction of a small bridge and 2 km spur to the village of 
Dogofry to provide a direct access from the Alatona perimeter to the 
main road network.
    (iii) Various social measures, such as parallel tracks to 
accommodate non-motorized traffic, of which there is a significant 
amount in and around the populated areas and safety measures for 
slowing traffic, as well as additional parking areas at the villages.
    Additionally, in connection with the Road Activity, MCA-Mali will 
assist and take all necessary steps to ensure that the EA, EMP 
(including an HIV/AIDS awareness plan), and RAP (consistent with World 
Bank Operational Policy 4.12 on Involuntary Resettlement) for the Road 
Activity of the Alatona Irrigation Project are processed and permits 
delivered in accordance with Mali Decr[eacute]t No. 03-594-P-RM on 
environmental impact studies and the Environmental Guidelines, all of 
which shall be subject to MCC approval; provided, however, that such 
EA, EMP and RAP may be processed as part of the EIA, EMP, and RAP for 
all other Project Activities (as described in Section 2 above). MCC 
funding will support implementation of the environmental and social 
mitigation measures as identified in the EA (or EIA, as applicable), 
EMP, and RAP, satisfactory to MCC, according to the conditions 
precedent set forth in the Disbursement Agreement.
    (b) Project Activity: Irrigation Planning and Infrastructure (the 
``Irrigation Activity'').
    This Project Activity will increase the capacity of the ON's main 
conveyance structures (the Canal Adducteur, the Canal du Sahel and the 
Fala de Molodo) to ensure sufficient capacity to transport wet season 
water to all the developed perimeters. MCC Funding will support the ON 
in achieving physical capacity to realize its immediate development 
goals, improve and increase service, and to move toward a next 
generation of standards and operational water management procedures, 
based on best international practice.
    Specifically, MCC Funding will support the following:
    (i) Alatona irrigation system development, which will involve the 
construction of a primary canal off the main system, a 63 km 
distributor canal, a network of secondary and tertiary canals and 
drainage structures, as well as land leveling and internal access 
roads. This will allow for an additional up to 16,000 ha of irrigated 
lands in the Alatona zone.
    (ii) Main conveyance system expansion, which will increase the 
conveyance capacity of two main canals and an ancient riverbed that 
transport water from the Niger River to the ON irrigated zones. This 
will involve: (1) Removal of the central island separating the two 
branches of Canal Adducteur; (2) enlarging the main canal leading from 
the main conveyance canal (Canal du Sahel--23 km); and (3) raising the 
banks of the Fala de Molodo along approximately 8 km.
    (iii) Support to ON Water Management, which will provide technical 
assistance and equipment to the ON for installing and operationalizing 
a communications-based water management system as well as improving 
overall system management to ensure more efficient and effective water 
management throughout the ON system. This system will also provide the 
basis for data analysis and permitting flow adjustments according to 
climatic fluctuations and other water demand factors and will establish 
incentive structures for better on-farm water efficiency.
    (c) Project Activity: Land Allocation (the ``Land Activity'').
    Through the sale of irrigated land under the oversight of a 
selection commission, land will be allocated to small-, medium-, and 
large-scale farmers. A selection commission will select land recipients 
according to pre-defined criteria, and enforce safeguards designed to 
ensure transparency and fairness. The recipients will purchase the land 
at prices that are both affordable to farm families, yet high enough to 
discourage speculation. Land payments will be managed by private 
financial institutions, and land

[[Page 55156]]

registration capacity will be bolstered. MCC Funding will support 
education and dissemination of information about land rights, benefits 
and responsibilities, and the allocation process in order to execute 
land allocation in an effective manner and for long term land 
management. In addition, the Alatona Irrigation Project will establish 
year-round market gardens for growing vegetables, to provide the women 
of the Alatona zone with an independent source of family income. This 
market garden opportunity supplements the opportunity women will have 
to receive larger land parcels though the selection commission process.
    Specifically, MCC Funding will support the following:
    (i) Land Parcel Creation. Land will be divided into tertiary 
irrigation blocks, and the land contained therein will be subdivided 
into individual land parcels. This sub-activity will include land 
parcel platting, boundary surveying, and preparation of a technical 
description of each parcel.
    (ii) Land Rights Education. A land-education effort will be carried 
out to provide the rural population of the Alatona zone and nearby 
areas with an understanding of private land ownership, the rights and 
responsibilities it entails, and the benefits it can bring. The effort 
also will inform people about the opportunity to acquire newly 
developed irrigated land, and work with land recipients on how to 
properly manage their land rights and obligations.
    (iii) Registration System Upgrade. The Alatona Irrigation Project 
will support establishment of a temporary land registration office in 
the Alatona zone that will remain under the jurisdiction of the 
S[eacute]gou office of the National Directorate for State Property and 
Cadastre (a technical agency within the Ministry of State Property and 
Land). This temporary office will operate for the four-year period 
during which virtually all of the land will be allocated and titled. 
Once the initial wave of titling occurs, the S[eacute]gou office may 
choose to maintain the temporary office, or replace it with a more 
limited alternative depending upon demand and cost considerations.
    (iv) Land Parcel Allocation and Titling. A selection commission 
consisting of government officials and private stakeholder group 
representatives (both men and women), will review people's applications 
for land and decide who will receive land based on pre-defined 
criteria. The criteria include various technical and other 
qualifications, are differentiated by farm size, and give special 
consideration to people already in the Alatona zone,\1\ women, and 
young farmers. After a short waiting period, land recipients will 
receive land ownership titles that they will pay for over a 15-20 year 
period. In addition to this main land allocation effort, women in the 
Alatona zone will receive small land plots for use in market gardening.
---------------------------------------------------------------------------

    \1\ Those who currently reside or use land in the Alatona zone 
will automatically be eligible to receive land.
---------------------------------------------------------------------------

    (v) Management of Land Revenues. This sub-activity will assure that 
land revenues are transparently managed and not co-mingled with other 
accounts and reinvested in locally responsive and appropriate ways in 
the Project area. This sub-activity will create a new entity or utilize 
an existing entity to collect and manage the land purchase payments 
under Government oversight. Collection payment mechanisms will 
encourage the entry and participation of private financial institutions 
in the area. In cases when land owners fail to make the required 
payments remedies will be sought up to and including executing a 
foreclosure action and public sale of the land to satisfy the debt.
    (d) Project Activity: Resettlement, Social Infrastructure, Social 
Services (the ``Community Activity'').
    The Community Activity will provide funds to implement the RAP, 
build social infrastructure and support social services, primarily 
health staff and teachers, to ensure appropriate utilization of the 
social infrastructure.
    Specifically, MCC Funding will support the following:
    (i) Resettlement. This sub-activity will support implementation of 
the RAP previously developed in collaboration with the relevant 
Government agencies, to compensate approximately 800 families who lose 
land rights or access to resources, with land in the irrigated 
perimeter or, where the land option is refused, other compensation 
options. Physically relocated resettlers will be provided with 
construction materials or built houses. For reasons of social equity, 
this sub-activity will implement procedures to provide equitable access 
to both dry and rainy season water and additional supporting measures 
during the first year of farming to assist these agro-pastoralist 
families to take up irrigated rice cultivation successfully.
    (ii) Social Infrastructure. This sub-activity will provide social 
infrastructure and social services sufficient to serve an anticipated 
total population of approximately 60,000, including the resettlers, new 
settlers and other migrants. Access roads, potable water, sanitation, 
schools, health centers, public markets, warehouses, multi-function 
centers, laundry facilities and solar electricity supply for selected 
social infrastructure sites will be constructed or existing facilities 
renovated in accordance with international and national norms.
    (iii) Social Services. This sub-activity will support social 
services, primarily health staff and teachers, over the last three-year 
period of the Compact Term. Services will be provided according to 
population thresholds established by the Government on the basis of 
international and regional norms. This sub-activity will equip 
community health centers in the Alatona zone and health centers serving 
the larger area, as well as support a variety of health promotion and 
disease prevention activities related to obstetric care, nutrition, 
STIs, HIV/AIDs, malaria, schistosomiasis and intestinal worms. Limited 
support will be provided for maintenance of water supply and 
sanitation.
    (e) Project Activity: Agricultural Services (the ``Agriculture 
Activity'').
    The Agriculture Activity will focus on the basics of irrigated 
farming and will support a range of interventions that target capacity 
building, support, and techniques for rice, shallots, livestock and 
crop integration, and women's vegetable garden production. During the 
first two years of the Alatona Irrigation Project, while the road and 
core irrigation infrastructure are designed and constructed (the pre-
settlement phase), efforts will focus on building an institutional 
environment and testing agricultural, marketing, and water management 
practices focused on achieving farm profitability. The Project Activity 
will be conducted in pre-existing ON irrigated perimeters involving, to 
the extent feasible, collaboration with the ON, existing institutions, 
and entities. The pre-settlement phase will allow for the development, 
testing, and piloting of activities to be transferred and scaled up to 
the newly developed perimeter.
    Specifically, MCC Funding will support the following:
    (i) Applied Agricultural Research. This sub-activity includes 
undertaking field-level, applied technology research on rice production 
and processing; water use, control and management; agronomic practices; 
livestock enterprises and integration with irrigation; improved 
equipment and technologies; commodity chains development, including 
strengthening the supply system for agricultural inputs and equipment; 
identifying, testing, and promoting improved

[[Page 55157]]

conservation techniques; processing technologies, and improving 
marketing of crops; and natural resource management and wood supply.
    (ii) Extension and Farmer Training. This sub-activity will include 
communication, extension, and training through a variety of low-cost, 
sustainable mechanisms and techniques that may include Farmer Field 
Schools, Training and Visit, farmer-to-farmer, stakeholder, and 
systems/value chain approaches. The focus of this sub-activity will 
include improving rice yields, production of dry season diversified 
crops, integrating crop and livestock production, post-harvest storage 
and processing activities, improving water management, group promotion 
and formation, integrated pest management, organizational management, 
accounting and budgeting, and farmer rights and advocacy.
    (iii) Support to Farmer Organizations. This sub-activity will 
provide intensive organizational development and management training to 
help selected service providers and farmer-controlled organizations 
(including women's groups) increase capacity. This may include training 
on the preparation of by-laws and business plans; election of officers, 
personnel and group management; management by objectives; financial 
sustainability and credit management; knowledge of rights, facilitation 
and advocacy; group procurement of inputs and marketing; and accounting 
and financial management capabilities and commercialization.
    (iv) Support to Water User Associations. This sub-activity will 
provide training to WUAs on organization management, cropping patterns 
and water requirements, secondary and tertiary canal maintenance 
planning, and establishing procedures for collecting and accounting for 
water fees.
    (f) Project Activity: Financial Services (the ``Finance 
Activity'').
    The Finance Activity will support agricultural development in the 
Alatona zone by promoting a sustainable, inclusive financial system and 
improving farmers' access to credit. Interventions will be focused on 
encouraging local financial institutions to move into the Alatona zone 
and on building their capacity and willingness to meet the financial 
services needs emerging from activities supported by the Alatona 
Irrigation Project. The Finance Activity will encourage financial 
institutions to lend to clients that have good prospects of success but 
may lack sufficient collateral or a suitable record of transactions to 
prove creditworthiness. It will also provide support to the ON Credit 
Bureau to strengthen its capacity to increase transparency among MFIs 
in the region. Direct support will also be provided to farmers to 
improve access to credit for first-time borrowers.
    Specifically, MCC Funding will support the following:
    (i) Credit risk sharing program. The credit risk sharing program 
will encourage eligible financial institutions to increase their 
lending to clients by reducing the risk of providing loans in the 
Alatona zone. MCC Funding will support risk sharing (up to 50%). 
Participating financial institutions will also be provided with 
technical assistance.
    (ii) Credit bureau strengthening. This sub-activity will finance: 
(1) A study to identify recommended improvements to the ON Credit 
Bureau and to test their feasibility; (2) development and acquisition 
of hardware and software necessary to create an electronic database 
(pending satisfactory completion of the feasibility study); and (3) 
training for ON Credit Bureau staff, among other changes as identified 
in the needs assessment and feasibility study.
    (iii) Financial institution capacity building. This sub-activity 
will provide training and technical assistance to financial 
institutions (banks and MFIs), focusing on areas such as risk analysis, 
portfolio management, and new product development in order to help 
financial institutions meet the needs of potential clients. In order to 
encourage MFIs to move rapidly into the Alatona zone, this sub-activity 
will also assist with a portion of the costs of setting up and staffing 
new offices.
    (iv) Direct support to farmers. In addition to training and support 
to farmer organizations, the Alatona Irrigation Project will provide 
financial assistance to improve access to credit for first-time 
borrowers. This sub-activity will provide a grant to assist new clients 
with paying a portion of the initial mandatory deposit required by MFIs 
in order for the new clients to access their first loan.
3. Beneficiaries
    As a result of the incremental agricultural production achieved 
through the Alatona Irrigation Project, incomes of farm owners, 
agricultural laborers in the Alatona, suppliers, transporters, 
processors, and traders will increase.
    The upgrading of the existing Niono-Goma Coura road is anticipated 
to lower vehicle operating costs (``VOCs'') and to generate time 
savings for road users. It is anticipated that the reduction in VOCs 
will be passed on to populations located along the road in the form of 
reduced rates of cargo spoilage and lower charges for the transport of 
cargo goods, including the transport of agricultural produce from the 
Alatona zone to regional markets in Niono and potentially national 
markets in Bamako.
    Finally, the Alatona Irrigation Project is also expected to 
generate non-quantified social, health, and education improvements 
through investment in social infrastructure in the Alatona zone and 
greater access through the Niono-Goma Coura road upgrade to existing 
health and social services facilities.
4. Donor Coordination; Role of Private Sector and Civil Society
    The Dutch Development Agency, French Development Agency, the World 
Bank, and USAID, in particular, have been working in the ON over the 
past several decades resulting in a more efficient, decentralized 
management structure, while increasing production and productivity of 
the Alatona zone. The Alatona Irrigation Project leverages and 
complements other donor, private sector and civil society activities in 
Mali as described below. Throughout implementation, MCC will continue 
to collaborate with these donors to ensure equitable water 
distribution, transfer of skills and knowledge in agriculture 
production, farm management and access to credit for the farmers. The 
Alatona Irrigation Project will involve close coordination with donors 
involved in strengthening the management of the ON agency to provide 
effective operations and maintenance of the irrigation infrastructure, 
as well as conformity with the established cropping calendar.
World Bank
    The Alatona Irrigation Project complements and reinforces several 
ongoing or recently launched World Bank programs as described below.
    <bullet> National Project for Rural Infrastructure provides rural 
infrastructure for irrigation, transportation, clean water and 
sanitation, and institutional strengthening. In May 2005, this project 
launched a bid for small- and medium-scale farmers to purchase land in 
the pilot zone of Koumouna in the ON. This marked the ON's first 
experience of issuing land titles to individual farmers.
    <bullet> Agricultural Competitiveness and Diversification Project 
aims to expand production and improve the productivity of diversified, 
high value commodities and to increase their export and market 
competitiveness; to remove logistical bottlenecks to

[[Page 55158]]

increased exportation; to reinforce food security; and to promote rural 
credit and financing.
    <bullet> Rural Community Development Project enhances the capacity 
of communities to propose and manage local development initiatives, 
including Communal Initiatives Funds and Local Productive Initiatives 
Funds.
Private Sector and Civil Society
    Private sector and civil society participated in the consultative 
process that resulted in inclusion of the Alatona Irrigation Project in 
the Compact. The Alatona Irrigation Project aims to attract farmers to 
purchase land and increase the revenue of farmers and farming 
enterprises. Businesses along the value chain will be integral to the 
success of this Project. In addition, civil society will play an active 
role to ensure that land allocation is fair and transparent and that 
social services are provided in the Alatona zone in a fair and 
equitable manner. Lastly, both civil society and private sector will be 
represented on the MCA-Mali Board of Directors and Advisory Councils. 
In addition, consultations will be conducted with affected parties and 
other stakeholders on the EIA for all Project Activities (other than 
the Road Activity) and the EA (or EIA, as applicable) for the Road 
Activity, in accordance with MCC Environmental Guidelines, Mali 
Decr[eacute]t No. 03-594-P-RM on environmental impact studies and the 
draft Arr[ecirc]te Interministeriel on the procedure for public 
consultation on environmental impact studies. Consultations will also 
take place with project affected persons for the RAPs, consistent with 
World Bank Operational Policy 4.12 on Involuntary Resettlement. NGOs 
are also expected to play a role in implementation, particularly in the 
provision of health promotion activities.
5. USAID
    The Alatona Irrigation Project builds on the USAID's Accelerated 
Economic Growth and Trade Development and Democracy and Governance 
programs (2003-2012), which includes the following sub-projects:
    <bullet> IICEM (Mali Economic Growth Initiative and Innovations) is 
a new program of USAID/Mali builds on the achievements of the ``Mali 
Finance,'' ``TradeMali'' and ``PRODEPAM'' (Program in Development of 
Agricultural Production) projects to pursue the following goals: (a) 
Expansion of irrigated agriculture from lowland, flood control-type 
irrigated perimeters, (b) development of appropriate mechanisms and 
instruments with key partner banks and microfinance institutions to 
support production and marketing, (c) the expansion of markets and 
marketing for producers' groups and traders, and (d) introduction of 
improved production and processing technologies.
    <bullet> Program on Shared Governance includes capacity building, 
planning, and financial management in the communes of Diabaly and 
Dogofry (the two municipalities located in the Alatona zone).
    The Alatona Irrigation Project will continue to build on these 
efforts during implementation and strengthen USAID best practices in 
agricultural support and capacity building in local governance within 
the Alatona zone.
6. Sustainability
    <bullet> Sustainable Irrigation Management. To assure the long term 
success of the Alatona Irrigation Project, MCC will finance additional 
capacity on the main conveyance structures, as well as support the ON 
to achieve sustainable management of its entire stock of assets. A core 
element of this effort will be technical assistance to introduce a 
communications-based technology for real-time water monitoring and 
management on the main system. The Alatona Irrigation Project will 
collaborate with the ON to establish appropriate and equitable water 
allocation rules among the perimeters, optimum cropping calendars and 
practices (such as the adoption of short cycle varieties) and the 
gradual introduction of volumetric water charges, all aimed to make the 
most efficient use of scarce water during the critical months of the 
dry season. The MCC-financed technical assistance will assist the ON to 
develop revised expansion scenarios based on updated assumptions and 
practices, such that any further expansion does not jeopardize the 
minimum water requirements and functioning of the Alatona zone and 
other existing perimeters. In the existing ON irrigated perimeters, the 
water fees collected are adequate to cover approximately 90% of the 
operating and maintenance costs of the major distribution systems 
within the zones, with the Government assuming responsibility for the 
remaining costs. The Alatona Irrigation Project will address the 
utilization of revenues associated with land sales and water fees 
within the Alatona zone to fund the ongoing expenses of Alatona 
institutions during and beyond the Compact Term.
    <bullet> Sustainable Road Maintenance. A new road maintenance 
agency, AGEROUTE, has recently been established with donor support. The 
major donors to the road sector (World Bank, European Union and African 
Development Bank) are promoting long term solutions to road 
maintenance, including more reliance on user fees to finance 
maintenance. The upgrading of the road to a double bituminous surface 
will result in estimated annual maintenance requirements falling within 
the range of the Government's current maintenance allocations for the 
road.
    <bullet> Sustainable Rural Infrastructure Management. The Alatona 
Irrigation Project will finance initial recurrent costs of the social 
infrastructure so as to ``kick-start'' operations. Within the context 
of the country's decentralization program, the planning and 
implementation of these infrastructure and services will be carried out 
in close collaboration with the appropriate technical ministries and 
local authorities (in particular the communes), so as to ensure a 
smooth transition to sustainable provision of staffing, operations, and 
maintenance of all these facilities beyond the life of the Compact.
    <bullet> Sustainable Access to Financial Services. The Finance 
Activity will provide MFIs and banks with training in agricultural 
credit and other aspects of managing the delivery of financial services 
to the inhabitants of the Alatona zone. This training should enable the 
financial institutions to better analyze the risks of extending credit 
in the Alatona zone and to better monitor and manage the repayment 
process. Meanwhile, the support to the ON Credit Bureau will promote 
transparency in the sector and provide institutions with better data 
from which to evaluate loan applications.
    <bullet> Sustainable Management of Land Revenues. The Land Activity 
will create a new entity or utilize an existing entity to collect and 
manage the revenues generated through land payments. MCC funding will 
support the costs of structuring this entity and providing some initial 
capacity building, until it can support itself through the land 
revenues collected.
    <bullet> Sustainable Agricultural Services. Skilled local 
institutions with proven capacity will be contracted to deliver 
services, and design and coordinate research activities. It will 
include on-station evaluation of varieties and/or technologies under 
development; on-farm confirmation and adaptation of existing research 
results; and participatory, farmer-led research. Eventually, 
involvement of farmers, farmer organizations, and a possible fee-for-
service approach could make the

[[Page 55159]]

research demand-driven and partly funded by users.
    <bullet> Environmental and Social Sustainability. Sustainability is 
to be achieved through the implementation of a land use and natural 
resources management plan (a prerequisite planning tool for the EIA), 
the identification of institutions responsible for natural resources 
management over the long term, and the implementation of an EMP that 
will incorporate an HIV/AIDS awareness plan and a pest management plan. 
Pre-settlement activities will provide the opportunity to test the 
sustainability of practices to be applied in the Alatona zone. 
Resettlers will be eligible to receive agricultural inputs for the 
first year and all cultivators will be able to receive technical 
assistance in farming techniques and training to improve their ability 
to secure credit. The provision of social infrastructure will allow 
improvements in health care, education, potable water supply and 
sanitation and the funding of social services will provide for a 
transition to full government funding of these services after the 
Compact Term.
7. Policy; Legal; and Regulatory Reform
    The Parties have identified the following policy, legal and 
regulatory reforms and actions that the Government shall pursue in 
support, and to reach the full benefits of the Alatona Irrigation 
Project, the satisfactory implementation of which will be conditions 
precedent to certain MCC Disbursements as provided in the Disbursement 
Agreement:
    <bullet> The establishment of a new entity or utilization of an 
existing entity to manage the collection and use of land revenues 
generated through the Alatona Irrigation Project. The structure of the 
entity and its operating guidelines will be subject to MCC approval.
    <bullet> Within the Compact Term, and in any event no later than 
six to nine months prior to the end of the Compact Term, the 
identification of a fiduciary or liquidation agent to manage or 
liquidate all of the remaining financial assets at the end of the 
Compact Term. The selection of the fiduciary or liquidation agent and 
the final plan for the disposition of financial assets from the credit 
risk sharing program in the Finance Activity will be subject to MCC 
approval.
    <bullet> The execution of a memorandum of understanding between 
MCA-Mali and the ON that ensures equitable allocation of dry-season 
water among the ON zones, measured at the headworks of primary canals, 
prior to initial MCC Disbursement for the Project Activities within the 
Alatona Irrigation Project, other than the Road Activity.
    <bullet> The provision of evidence by the Government of an agreed 
allocation of land for dry season and wet season cultivation in the 
Alatona zone prior to approval of final design of the first tranche of 
the irrigation and planning infrastructure sub-activity of the Alatona 
Irrigation Project.
8. Proposals
    Public solicitations for proposals are anticipated to procure 
goods, works and services, as appropriate, to implement all Project 
Activities under the Alatona Irrigation Project. MCA-Mali will develop, 
subject to MCC approval, a process for consideration of all such 
proposals. Notwithstanding the foregoing, MCA-Mali may also consider, 
using a process developed subject to MCC approval, any unsolicited 
proposals it might receive.

Exhibit B Annex II (Multi-Year Financial Plan Summary)

Annex II Summary of Multi-Year Financial Plan

    This Annex II to the Compact (the ``Financial Plan Annex'') 
summarizes the Multi-Year Financial Plan for the Program. Each 
capitalized term in this Financial Plan Annex shall have the same 
meaning given such term elsewhere in this Compact. Unless otherwise 
expressly stated, each Section reference herein is to the relevant 
Section of the main body of the Compact.
1. General
    A multi-year financial plan summary (``Multi-Year Financial Plan 
Summary'') is attached hereto as Exhibit A. By such time as specified 
in the Disbursement Agreement, MCA-Mali will adopt, subject to MCC 
approval, a Multi-Year Financial Plan that includes, in addition to the 
multi-year summary of estimated MCC Funding and the Government's 
contribution of funds and resources, an estimated draw-down rate for 
the first year of the Compact Term based on the achievement of 
performance milestones, as appropriate, and the satisfaction or waiver 
of conditions precedent. Each year, at least 30 days prior to the 
anniversary of the Entry into Force, the Parties shall mutually agree 
in writing to a Detailed Budget for the upcoming year of the Program, 
which shall include a more detailed budget for such year, taking into 
account the status of the Program at such time and making any necessary 
adjustments to the Multi-Year Financial Plan.
2. Implementation and Oversight
    The Multi-Year Financial Plan and each Detailed Budget shall be 
implemented by MCA-Mali, consistent with the approval and oversight 
rights of MCC and the Government as provided in this Compact, the 
Governing Documents and the Disbursement Agreement.
3. Estimated Contributions of the Parties
    The Multi-Year Financial Plan Summary identifies the estimated 
annual contribution of MCC Funding for Program administration, M&E and 
each Project. The Government's contribution of resources to Program 
administration, M&E and each Project shall consist of (a) ``in-kind'' 
contributions in the form of Government Responsibilities and any other 
obligations and responsibilities of the Government identified in this 
Compact, and (b) such other contributions or amounts as may be 
identified in this Compact (including adequate funding for the 
rehabilitation and expansion of air cargo facilities, as specified in 
Section 8 of Schedule 1 of Annex I) and in relevant Supplemental 
Agreements between the Parties or as may otherwise be agreed by the 
Parties; provided, in no event shall the Government's contribution of 
resources be less than the amount, level, type and quality of resources 
required effectively to carry out the Government Responsibilities or 
any other responsibilities or obligations of the Government under or in 
furtherance of this Compact.
4. Modifications
    The Parties recognize that the anticipated distribution of MCC 
Funding between and among the various activities for Program 
administration, M&E, the Projects and the Project Activities will 
likely require adjustment from time to time during the Compact Term. In 
order to preserve flexibility in the administration of the Program, as 
provided in Section 4(a)(iv) of Annex I, the Parties may, upon 
agreement of the Parties in writing and without amending the Compact, 
change the designations and allocations of funds among the Projects, 
the Project Activities, or any activity under Program administration or 
M&E, or between a Project identified as of the Entry into Force and a 
new project, without amending this Compact; provided, however, that 
such reallocation (a) is consistent with the Compact Goal and the 
Implementation Documents; (b) shall not cause the amount of MCC Funding 
to exceed the aggregate amount specified in Section

[[Page 55160]]

2.1(a) of this Compact; and (c) shall not cause the Government's 
obligations or responsibilities or overall contribution of resources to 
be less than specified in Section 2.2(a) of this Compact, this Annex II 
or elsewhere in the Compact.
5. Conditions Precedent; Sequencing
    MCC Funding will be disbursed in tranches. The obligation of MCC to 
approve MCC Disbursements and Material Re-Disbursements for the Program 
is subject to satisfactory progress in achieving the Objectives and on 
the fulfillment or waiver of any conditions precedent specified in the 
Disbursement Agreement for the relevant activity under the Program. The 
sequencing of Project Activities or sub-activities and other aspects of 
how the Parties intend the Program to be implemented will be set forth 
in the Implementation Documents, including the Work Plan for the 
applicable Program (and each component thereof), and MCC Disbursements 
and Re-Disbursements will be made consistent with such sequencing.

                                                      Exhibit A--Multi-Year Financial Plan Summary
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    Totals including contingencies (USD)
                      Project                      -----------------------------------------------------------------------------------------------------
                                                         Year 1           Year 2           Year 3           Year 4           Year 5           Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. Bamako-Senou Airport Improvement Project.......      *15,381,180       49,389,652       79,422,986       38,834,682          869,196      183,897,696
2. Alatona Irrigation Project.....................       21,971,279       65,417,249       66,815,632       54,197,204       26,207,104      234,608,468
3. Monitoring and Evaluation......................        1,500,000          520,000          655,000          705,000        1,525,000        4,905,000
4. Program Management and Oversight...............        8,200,000        7,300,000        7,400,000        7,200,000        7,300,000       37,400,000
                                                   -----------------------------------------------------------------------------------------------------
    Total Estimated MCC Contribution..............       47,052,459      122,626,901      154,293,618      100,936,886       35,901,300     460,811,164
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Includes $2,718,638 for feasibility studies related to an originally programmed industrial park project that has been subsequently removed from the
  Compact due to the results of such feasibility studies.

Exhibit C Annex III (Description of the M&E Plan)

Annex III Description of the M&E Plan

    This Annex III to the Compact (the ``M&E Annex'') generally 
describes the components of the M&E Plan for the Program. Except as 
defined in this M&E Annex, each capitalized term in this M&E Annex 
shall have the same meaning given such term elsewhere in this Compact.
1. Overview
    MCC and the Government (or a mutually acceptable Government 
Affiliate or Permitted Designee) shall formulate, agree to and the 
Government shall implement, or cause to be implemented, an M&E Plan 
that specifies (a) how progress toward the Compact Goal, Objectives, 
and the intermediate results of each Project and Project Activity set 
forth in this M&E Annex (the ``Outcomes'') will be monitored (the 
``Monitoring Component''); (b) a methodology, process and timeline for 
the evaluation of planned, ongoing, or completed Projects and Project 
Activities to determine their efficiency, effectiveness, impact and 
sustainability (the ``Evaluation Component''); and (c) other components 
of the M&E Plan described below. Information regarding the Program's 
performance, including the M&E Plan, and any amendments or 
modifications thereto, as well as periodically generated reports, will 
be made publicly available on the MCA-Mali Web site and elsewhere. The 
Compact Goal, Objectives, and Outcomes of the Program can be summarized 
as follows:

[[Page 55161]]

[GRAPHIC] [TIFF OMITTED] TN24SE08.012

2. Monitoring Component
    To monitor progress toward the achievement of the Compact Goal, 
Objectives, and Outcomes, the Monitoring Component of the M&E Plan 
shall identify (a) the Indicators, (b) the party or parties 
responsible, the timeline, and the instrument for collecting data and 
reporting on each Indicator to MCA-Mali, and (c) the method by which 
the reported data will be validated.
    (a) Indicators. The M&E Plan shall measure the impacts of the 
Program using objective and reliable information (``Indicators''). Each 
Indicator will have one or more expected values that specify the 
expected results and expected time for the impacts to be achieved 
(``Target''). The M&E Plan will measure and report on Indicators at 
four levels. First, the Indicator(s) at the Compact Goal level (``Goal 
Indicator'') will measure the impact of the overall Program and each 
Project. Second, the Indicators at the Objective level (``Objective 
Indicator'') will measure the final results of each of the Projects, 
including impacts on the intended beneficiaries identified in Annex I 
(collectively, the ``Beneficiaries''). Third, Indicators at the 
intermediate level (``Outcome Indicator'') will measure the results 
achieved under each of the Project Activities and will provide an early 
measure of the likely impact under each of the Projects. A fourth level 
of Indicators (``Output Indicator'') will be included in the M&E Plan 
to measure the direct outputs of Project Activities. All Indicators 
will be disaggregated by sex, income level and age, to the extent 
practicable. Subject to prior written approval from MCC, MCA-Mali may 
add Indicators or modify the Targets of existing Indicators.

                                         Goal Indicators and Definitions
----------------------------------------------------------------------------------------------------------------
       Goal-level results                Indicator                        Definition of indicator
----------------------------------------------------------------------------------------------------------------
Income of Airport services firms  Total revenue of firms   Total receipts of commercial concessions, flight
 is increased.                     servicing the Airport.   kitchens, fuel suppliers, and baggage handling
                                                            (US$).
Tourism income is increased.....  Total receipts of        Total receipts of hotels and restaurants in Bamako
                                   hotels and restaurants   (US$).
                                   in Bamako.
Poverty rate of existing Alatona  Poverty rate of          Poverty Headcount Ratio of existing Alatona zone
 zone population is reduced.       existing Alatona zone    population (percent).
                                   population.
Income from irrigated             Real income from         Real annual income from sale of agricultural
 agricultural production in the    irrigated agricultural   production per household member in the Alatona zone
 Alatona zone is increased.        production.              (US$).\1\
----------------------------------------------------------------------------------------------------------------
\1\ Data to be disaggregated by current residents and newly settled population to track whether resettled
  population's incomes are restored as compared to their baseline incomes. This indicator will also be
  disaggregated by sex.


                                       Compact Goal Baselines and Targets
----------------------------------------------------------------------------------------------------------------
              Goal-level indicators                      Baseline              Year 5              Year 10
----------------------------------------------------------------------------------------------------------------
Total revenue of firms servicing the Airport       $8.................  $9.................  $11.
 (million US$).
Total receipts of hotels and restaurants in        $133...............  $174...............  $226.
 Bamako (million US$).
Poverty rate of existing Alatona zone population   TBD \1\............  TBD................  TBD.
 (percent).

[[Page 55162]]

 
Real income from irrigated agricultural            $0.................  $316...............  $725.
 production (US$ per capita).
----------------------------------------------------------------------------------------------------------------
\1\ Baseline and targets will be determined through a combination of the following data collection activities:
  (1) resettlement action plan census under the Community Activity of the Alatona Irrigation Project, and (2)
  Baseline household survey conducted by Direction Nationale de la Statistique et de l'Informatique. Results are
  expected in 2007.


                             Airport Improvement Project Indicators and Definitions
        [Project objective: Establish an independent and secure link to the regional and global economy]
----------------------------------------------------------------------------------------------------------------
     Objective-level results             Indicator                        Definition of indicator
----------------------------------------------------------------------------------------------------------------
Number of foreign visitors is     Annual foreign (non-     Foreign and non-resident passengers arriving to and
 increased.                        resident) passenger      departing from the Airport per year \1\ (number).
                                   traffic.
Passenger terminal services are   Improved security and    FAA audit report.\2\
 improved.                         safety.
----------------------------------------------------------------------------------------------------------------
      Outcome-level results              Indicator                        Definition of indicator
----------------------------------------------------------------------------------------------------------------
Air traffic is increased........  Weekly flight arrivals   Aircraft arriving to or departing from the Airport
                                   and departures.          per week (number).
Increased efficiency of           Time required for        Average time for passengers to complete departure or
 passenger terminal services.      passenger processing     arrival procedures at peak hour at the Airport
                                   at departures and        (minutes).
                                   arrivals.
----------------------------------------------------------------------------------------------------------------
\1\ Indicator will be disaggregated by country of origin, purpose of travel, and sex.
\2\ A qualitative Indicator will be developed in collaboration with airport sector experts and according to FAA
  standards. Yearly targets will be milestones.


                               Airport Improvement Project Indicators and Targets
        [Project objective: Establish an independent and secure link to the regional and global economy]
----------------------------------------------------------------------------------------------------------------
          Objective-level indicators                 Baseline               Year 5                Year 10
----------------------------------------------------------------------------------------------------------------
Annual foreign (non-resident) passenger        126,300.............  164,780............  214,000.
 traffic (number).
Improved security and safety at the Airport..  TBD.................  TBD................  TBD.
Outcome-level Indicators.....................  Baseline............  Year 5.............  Year 10.
Weekly flight arrivals and departures          87..................  97.................  106.
 (number).
Time required for passenger processing at      TBD.................  Baseline minus 60    Baseline minus 60
 departures and arrivals (minutes) \1\.                               minutes.             minutes.\2\
----------------------------------------------------------------------------------------------------------------
\1\ A special survey will be conducted at the Airport in 2006/2007 to collect baseline information and
  additional surveys will be conducted during the Project to estimate the time required for passenger
  processing.
\2\ From the economic analysis, it is estimated an efficiency gain of one hour will be achieved by Year 5 and
  maintained thereafter.


                              Alatona Irrigation Project Indicators and Definitions
    [Project objective: Increase the agricultural production and productivity in the Alatona zone of the ON]
----------------------------------------------------------------------------------------------------------------
     Objective-level results             Indicator                        Definition of indicator
----------------------------------------------------------------------------------------------------------------
Rice yields are increased.......  Main season rice yield.  Average rice yield in the rainy season in the Alatona
                                                            zone (tons/ha).
Diversification into high value   Dry season cropped area  Share of the total cropped area that is devoted to
 crops is increased.               in non-cereal crops.     non-cereal crops (i.e., shallots, tomatoes,
                                                            potatoes, etc) in the Alatona zone (percent).
----------------------------------------------------------------------------------------------------------------
      Outcome-level results              Indicator                        Definition of indicator
----------------------------------------------------------------------------------------------------------------
Vehicle Operating Costs (VOCs)    International Roughness  Weighted index to measure road roughness (correlated
 are reduced.                      Index (IRI) for the      with vehicle operating costs) (meters/km).\1\
                                   Niono--Goma Coura road.
Transport of people and goods is  Traffic on the Niono--   Annual average daily count of vehicles on the Niono--
 facilitated.                      Goma Coura road.         Goma Coura road (AADT) \2\ (number/day).
Irrigable land is increased.....  Land made irrigable by   Total irrigable land in the Alatona zone (ha).
                                   the Project.
Water for agricultural            Average water volume     Average water volume delivered at the tertiary level
 production is provided.           delivered at the farm    during the rainy season in the Alatona zone (m\3\/
                                   level.                   ha).
Irrigation system efficiency is   Alatona zone irrigation  Water supply at the headworks of Canal de l'Alatona
 improved.                         system efficiency.       as a share of crop water requirements (percent).

[[Page 55163]]

 
Family farms are established....  5 and 10 ha farms        Total 5 and 10 ha farm plots allocated in the Alatona
                                   allocated.               zone (number).
Land allocated to women is        Market garden parcels    Total market garden parcels allocated in the Alatona
 increased.                        allocated.               zone (number).
Land tenure security is            Titles granted to       Titles registered in the land registration office of
 increased.                        Alatona zone             the Alatona zone (number).\3\.
                                   households.
Access to social infrastructure   Student enrollment.....  Students enrolled in schools established by the
 is provided.                                               Project (number).
Improved agricultural techniques  Adoption rate of         Number of farms adopting at least one new extension
 are adopted.                      extension techniques.    technique as a share of all farms receiving
                                                            technical assistance under the Project (percent).
Access to financial services in   Amount of credit         Total loan portfolios of financial institutions (MFIs
 the Alatona zone is improved.     extended.                and banks) in the Alatona zone (US$).\4\
                                  Active clients of MFIs.  Active clients of MFIs in the Alatona zone
                                                            (number).\5\
----------------------------------------------------------------------------------------------------------------
\1\ The International Roughness Index (IRI) is used to define a characteristic of the longitudinal profile of a
  traveled wheeltrack and constitutes an internationally recognized, standardized roughness measurement. The IRI
  is an open-ended scale.
\2\ AADT: Annual Average Daily Traffic.
\3\ Disaggregated by settlers, re-settlers, sex.
\4\ Disaggregated by Short-Term (seasonal term) and Medium-Term credit (two- to three-year term).
\5\ Disaggregated by sex.


                 Alatona Project Indicators and Targets
      [Project objective: Increase the agricultural production and
               productivity in the Alatona zone of the ON]
------------------------------------------------------------------------
        Objective-level indicators             Baseline        Year 5
------------------------------------------------------------------------
Main season rice yield (tons/ha)..........  0............  5.
Dry season cropped area in non-cereal       0%...........  46%.
 crops (percent).
Outcome-level Indicators..................  Baseline.....  Year 5.
International Roughness Index (IRI) for     17...........  2.
 the Niono--Goma Coura road (m/km).
Traffic on the Niono--Goma Coura road       208..........  417.
 (number/day).
Land made irrigable by the Project (ha,     0............  16,000.
 cumulative).
Average water volume delivered at the farm  N/A..........  13,000.
 level (m\3\/ha).
Alatona zone irrigation system efficiency   35%..........  40%.
 (percent).
5 and 10 ha farms allocated (number,        0............  1,700.
 cumulative).
Market garden parcels allocated (number,    0............  2,000.
 cumulative).
Titles granted to Alatona zone households   0............  1,200.
 (number, cumulative).
Student enrollment (number, cumulative)...  0............  10,500.
Adoption rate of extension techniques       0............  50%.
 (percent).
Amount of credit extended (million US$)...  0............  $4.
Active clients of MFIs (number,             0............  1,050.
 cumulative).
------------------------------------------------------------------------

    (b) Data Collection and Reporting. The M&E Plan shall establish 
guidelines for data collection and a reporting framework, including a 
schedule of Program reporting and responsible parties. The Management 
shall conduct regular assessments of Program performance to inform MCA-
Mali and MCC of progress under the Program and to alert these parties 
to any problems. These assessments will report the actual results 
compared to the Targets on the Indicators referenced in the Monitoring 
Component, explain deviations between these actual results and Targets, 
and in general, serve as a management tool for implementation of the 
Program. With respect to any data or reports received by MCA-Mali, MCA-
Mali shall promptly deliver such reports to MCC along with any other 
related documents, as specified in the M&E Plan or as may be requested 
from time to time by MCC.
    (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 shall be reviewed to ensure that data reported are as 
valid, reliable, and timely as resources will allow. The objective of 
any data quality review will be to verify the quality and the 
consistency of performance data across different implementation units 
and reporting institutions. Such data quality reviews also will serve 
to identify where consistent levels of quality are not possible, given 
the realities of data collection. The data quality reviewer shall enter 
into an Auditor/Reviewer Agreement with MCA-Mali in accordance with 
Annex I.
3. Evaluation Component
    The Program shall be evaluated on the extent to which the 
interventions contribute to the Compact Goal. The Evaluation Component 
of the M&E Plan shall contain a methodology, process and timeline for 
collecting and analyzing data in order to assess planned, ongoing, or 
completed Project Activities to determine their efficiency, 
effectiveness, impact and sustainability. The evaluations should use 
rigorous methods for addressing selection bias, as applicable. The 
Government shall implement, or cause to be implemented, surveys to 
collect baseline and follow-up data on both Beneficiaries and non-
Beneficiaries. The Evaluation

[[Page 55164]]

Component shall contain two types of reports: Final Evaluations and Ad 
Hoc Evaluations, and shall be finalized before any MCC Disbursement or 
Re-Disbursement for specific Program activities or Project Activities.
    (d) Final Evaluation. MCA-Mali, in connection with MCC's request to 
the Government pursuant to Section 3(h) of Annex I, shall engage an 
independent evaluator to conduct an evaluation at the expiration or 
termination of the Compact Term (``Final Evaluation''). The Final 
Evaluation must at a minimum (i) evaluate the efficiency and 
effectiveness of the Program; (ii) estimate, quantitatively and in a 
statistically valid way, the causal relationship between the three 
Projects and the Compact Goal (to the extent possible), the Objectives 
and Outcomes; (iii) determine if, and analyze the reasons why, the 
Compact Goal, Objectives and Outcomes 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-Mali, such independent evaluator 
shall enter into an Auditor/Reviewer Agreement with MCA-Mali in 
accordance with Annex I.
    (e) Ad Hoc Evaluations. Either MCC or MCA-Mali may request ad hoc 
or interim evaluations or special studies of Projects, Project 
Activities, or the Program as a whole prior to the expiration of the 
Compact Term (each, an ``Ad Hoc Evaluation''). If MCA-Mali engages an 
evaluator for an Ad Hoc Evaluation, the evaluator will be an externally 
contracted independent source selected by MCA-Mali, subject to the 
prior written approval of MCC, following a tender in accordance with 
the Procurement Guidelines, and otherwise in accordance with any 
relevant Implementation Letter or Supplemental Agreement. If MCA-Mali 
requires an ad hoc independent evaluation or special study at the 
request of the Government for any reason, including for the purpose of 
contesting an MCC determination with respect to a Project or Project 
Activity or seeking funding from other donors, no MCC Funding or MCA-
Mali resources may be applied to such evaluation or special study 
without MCC's prior written approval.
4. Other Components of the M&E Plan
    In addition to the Monitoring Component and the Evaluation 
Component, the M&E Plan shall include the following components for the 
Program, Projects and Project Activities, including, where appropriate, 
roles and responsibilities of the relevant parties and Providers:
    (a) Costs. A detailed annual cost estimate for all components of 
the M&E Plan.
    (b) Assumptions and Risks. Any assumptions and risks external to 
the Program that underlie the accomplishment of the Compact Goal, 
Objectives, and Outcomes; provided, such assumptions and risks shall 
not excuse performance of the Parties, unless otherwise expressly 
agreed to in writing by the Parties.
5. Implementation of the M&E Plan
    (a) Approval and Implementation. The approval and implementation of 
the M&E Plan, as amended from time to time, shall be in accordance with 
the Program Annex, this M&E Annex, the Governing Documents, and any 
other relevant Supplemental Agreement.
    (b) Advisory Councils. The completed portions of the M&E Plan will 
be presented to each Advisory Council at such Advisory Council's 
initial meeting, and any amendments or modifications thereto or any 
additional components of the M&E Plan will be presented to each 
Advisory Council at appropriate subsequent meetings of such Advisory 
Council. Each Advisory Council will have opportunity to present its 
suggestions to the M&E Plan, which the Board shall take into 
consideration in its review of any amendments to the M&E Plan during 
the Compact Term.
    (c) MCC Disbursement and Re-Disbursement for a Project Activity. As 
a condition to each MCC Disbursement or Re-Disbursement there shall be 
satisfactory progress on the M&E Plan for the relevant Project or 
Project Activity, and substantial compliance with the M&E Plan, 
including any reporting requirements.
    (d) Modifications. Notwithstanding anything to the contrary in the 
Compact, including the requirements of this M&E Annex, MCC and the 
Government (or a mutually acceptable Government Affiliate or Permitted 
Designee) may modify or amend the M&E Plan or any component thereof, 
including those elements described herein, without amending the 
Compact; provided, any such modification or amendment of the M&E Plan 
has been approved by MCC in writing and is otherwise consistent with 
the requirements of this Compact and any relevant Supplemental 
Agreement between the Parties.

 [FR Doc. E8-22431 Filed 9-23-08; 8:45 am]
BILLING CODE 9211-03-P


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