67122 Federal Register / Vol. 75, No. 210 / Monday, November 1, 2010 / Notices 

The Committee is responsible for 

providing the Commissioner of Labor 

Statistics: (1) The priorities of data 

users; (2) suggestions concerning the 

addition of new programs, changes in 

the emphasis of existing programs or 

cessation of obsolete programs; and 

(3) advice on innovations in data 

collection, dissemination and 

presentation. The Committee will report 

to the Commissioner of Labor Statistics, 

agency head of the BLS. 

The Committee will not exceed 25 

members. Members are appointed by the 

BLS and approved by the Secretary of 

Labor. Membership of the Committee 

will represent a balance of expertise 

across a broad range of BLS programs. 

Members will be drawn from the labor, 

business, government, research and 

academic communities in roughly equal 

proportion. Committee members are 

economists, business analysts, labor 

analysts, and public policy specialists. 

They are prominent experts in their 

fields and are recognized for their 

professional achievements. 

The Committee will function solely as 

an advisory body, in compliance with 

the provisions of the Federal Advisory 

Committee Act. The Charter will be 

filed under the Federal Advisory 

Committee Act. 

For Further Information Contact: 

Cheryl Kerr, Office of the 

Commissioner, Bureau of Labor 

Statistics, telephone: 202–691–7808, 

e-mail: kerr.cheryl@bls.gov. 

Signed at Washington, DC, this 26th day of 

October 2010. 

Kimberley D. Hill, 

Chief, Division of Management Systems, 

Bureau of Labor Statistics. 

[FR Doc. 2010–27483 Filed 10–29–10; 8:45 am] 

BILLING CODE 4510–24–P 

MILLENNIUM CHALLENGE 

CORPORATION 

[MCC FR 10–14] 

Notice of Entering Into a Compact With 

the Hashemite Kingdom of Jordan 

AGENCY: Millennium Challenge 

Corporation. 

ACTION: Notice. 

SUMMARY: In accordance with Section 

610(b)(2) of the Millennium Challenge 

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

D), the Millennium Challenge 

Corporation (MCC) is publishing a 

summary and the complete text of the 

Millennium Challenge Compact 

between the United States of America, 

acting through the Millennium 

Challenge Corporation, and the 

Hashemite Kingdom of Jordan, acting 

through the Ministry of Water and 

Irrigation. Representatives of the United 

States Government and the Hashemite 

Kingdom of Jordan executed the 

Compact documents on October 25, 

2010. 

Dated: October 26, 2010. 

Melvin F. Williams, Jr., 

VP/General Counsel and Corporate Secretary, 

Millennium Challenge Corporation. 

Summary of Millennium Challenge 

Compact With the Hashemite Kingdom 

of Jordan 

The five-year Millennium Challenge 

Compact with the Hashemite Kingdom 

of Jordan (‘‘Compact’’) will provide up to 

$275.1 million to reduce poverty and 

accelerate economic growth. The 

Compact is intended to support: (a) 

Rehabilitation of the water supply 

network for households and businesses; 

(b) reinforcement of main sewer lines 

and expansion of the lateral sewers into 

neighborhoods that lack access to a 

proper wastewater collection network; 

and (c) expansion of the As-Samra 

Wastewater Treatment Plant, in 

partnership with a private sector 

operator that will mobilize a portion of 

the total cost of construction. 

1. Program Overview 

The Compact program consists of 

three tightly integrated infrastructure 

projects that address critical problems 

in water distribution, wastewater 

collection and wastewater treatment. 

The projects are focused in Zarqa 

Governorate, home to the country’s 

second and fourth largest cities, Zarqa 

and Ruseifa, and more than half the 

country’s small-scale industry. A history 

of neglect coupled with rapid 

population growth, particularly an 

influx of refugees from Iraq over the past 

decade, has strained critical water and 

wastewater infrastructure throughout 

the area. Residents continuously 

complain of sewer main overflows and 

water pipes made of cheap, flexible 

tubing that run above ground through 

city streets, where they are subject to 

considerable wear and tear. 

In combination, the three projects are 

designed to increase the effective supply 

of water that reaches household and 

commercial users throughout Zarqa 

Governorate. This increase comes from 

two sources. First, repairs to the 

reservoirs, pumps, and pipes that make 

up the water delivery network will 

reduce the physical loss of water during 

transmission and distribution, directly 

increasing the amount of potable water 

available to end users. Second, greater 

collection and treatment of wastewater 

will create an increased supply of highquality treated wastewater appropriate 

for use in irrigated agriculture. This 

treated wastewater is expected to 

become a substitute for the fresh water 

currently used in agriculture, allowing 

fresh water to be directed to higher 

value uses in urban areas, including 

Zarqa, before it is collected as 

wastewater and then treated and reused. 

This arrangement extends the use of 

each unit of fresh water. 

2. Project Descriptions 

Water Network Restructuring and 

Rehabilitation Project (Water Network 

Project) (Estimated $102.57 Million) 

At present, an estimated 57 percent of 

the potable water supplied into the 

water transmission and distribution 

network in Zarqa Governorate is lost 

through physical leaks; additional losses 

are attributable to administrative 

mismanagement. The Water Network 

Project is designed to reduce high rates 

of water loss through construction and 

repairs to reservoirs, pump stations and 

up to 67 km of primary, 927 km of 

secondary, and 256 km of tertiary pipes, 

along with replacement of household 

connections and meters, in the two 

poorest, most heavily populated water 

service areas of Zarqa Governorate. The 

project is also designed to convert the 

system from high-pressure, periodic 

distribution to more frequent, gravityfed distribution that should improve 

customer service, reduce wear and tear 

on critical infrastructure, and extend the 

lifespan of the network. The project 

includes technical and financial 

assistance to very poor households to 

improve plumbing, water storage, 

sewage connections, and general 

awareness of best practices for basic 

sanitation and efficient water use. 

Wastewater Network Reinforcement and 

Expansion Project (Wastewater Network 

Project) (Estimated $58.22 Million) 

Zarqa Governorate is served by an 

outdated sewer system that limits the 

collection of wastewater and endangers 

public health. The system frequently 

overflows into city streets and the 

surrounding environment, relies on 

pump stations that have insufficient 

capacity, and serves only 72 percent of 

the population. The Wastewater 

Network Project is designed to replace 

or rehabilitate up to 29 km of 

undersized trunk lines and expand 

lateral sewers by up to 140 km in the 

neighborhoods of East Zarqa and West 

Zarqa, both of which lack proper sewer 

connections. The extension of lateral 

sewer lines is expected to raise coverage 

rates from 72 percent to about 85 

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Federal Register / Vol. 75, No. 210 / Monday, November 1, 2010 / Notices 67123 

percent of the local population. These 

new customer connections should also 

generate additional supplies of 

wastewater to be treated at the As-Samra 

Wastewater Treatment Plant and 

eventually reused in agriculture 

downstream in the Jordan Valley. 

As-Samra Wastewater Treatment Plant 

Expansion Project (As-Samra Expansion 

Project) (Estimated $93.03 Million) 

Originally built with support from a 

USAID grant, the As-Samra wastewater 

treatment plant is the primary facility 

for treating wastewater from Amman 

and Zarqa Governorates. The plant 

became operational in 2008 and was 

originally designed to meet the region’s 

treatment needs through 2015 but is 

already nearing its capacity. Without an 

expansion to properly handle the 

region’s growing volume of wastewater, 

the plant could become overloaded, its 

ability to treat wastewater could 

deteriorate, and downstream 

agricultural areas that rely on treated 

water for irrigation could face serious 

food safety risks and the loss of markets 

for agricultural products. The As-Samra 

Expansion Project is designed to expand 

the plant’s treatment capacity by 97,800 

cubic meters per day, an increase of 

more than one-third, and install 

upgrades to handle higher suspended 

solid loads. These improvements should 

meet the region’s wastewater treatment 

needs through 2025. The proposed 

expansion will be financed in 

partnership with the Samra Wastewater 

Treatment Plant Company Limited 

(‘‘SPC’’), a private company that built the 

existing plant and operates it under a 

concession from GOJ. Under this 

arrangement, an MCC grant would cover 

a portion of the cost of construction, 

while SPC would mobilize debt and 

equity funding to cover the remaining 

construction costs, along with project 

development and design, project 

management, and interest costs. In this 

way, the MCC grant will attract private 

financing, reduce construction costs to 

MCC, and thereby reduce the role of the 

public sector in financing the project. 

MCC’s involvement will reduce the cost 

of capital, allowing lower water and 

wastewater tariffs to consumers than 

might otherwise have been necessary. 

This arrangement may also enhance 

operational sustainability by 

transferring some risks related to 

financing, construction, and operations 

to the private sector. 

3. Administration 

The Compact also includes program 

management and oversight costs 

estimated at $18.47 million over a fiveyear timeframe, including the costs of 

administration, management, auditing, 

fiscal and procurement services, and 

environmental and social oversight. In 

addition, the cost of monitoring and 

evaluation of the Compact is budgeted 

at approximately $2.81 million. 

4. Economic and Beneficiary Analysis 

The Compact projects are expected to 

have reliable and demonstrable impacts 

on economic growth and on incomes for 

residents in Zarqa Governorate and 

Amman through improved efficiencies 

in the water distribution network, as 

well as for a number of farmers in the 

lower and middle Jordan Valley, who 

will receive reliable supplies of high 

quality treated wastewater for use in 

irrigation. 

The Compact projects reflect GOJ’s 

priorities, are endorsed by the Ministry 

of Water and Irrigation that will 

implement them, and respond to public 

demands for improved public 

administration, investment, and service 

provision. These are necessary and 

significant conditions for sustained 

administrative and political support of 

MCC’s investment and lay the 

groundwork for effective project 

implementation. Finally, consistent 

with MCC’s results-focused approach, 

the Compact allows for careful 

monitoring of implementation progress 

and rigorous evaluation of the nature 

and magnitude of selected project 

impacts. 

Table 1 presents a summary of the 

economic rates of return and the 

number of beneficiaries that each 

Compact project and the Compact 

program are expected to achieve. 

TABLE 1—SUMMARY OF ECONOMIC IMPACTS

Project 

MCC 

project 

cost 

($M) 

Economic 

rate of 

return 

(%) 

Beneficiaries 

Water Network Project ............................................................................................................................... 102.57 19 1,600,000 

Wastewater Network Project ..................................................................................................................... 58.22 14 2,020,000 

As-Samra Expansion Project ..................................................................................................................... 93.03 

Total Compact ........................................................................................................................................... 253.82 16 1 2,020,000 

1The total number of beneficiaries does not sum because of overlap in the beneficiary populations between projects. 

Millennium Challenge Compact 

Between the United States of America, 

Acting Through the Millennium 

Challenge Corporation, and Hashemite 

Kingdom of Jordan, Acting Through the 

Ministry of Water and Irrigation 

Table of Contents 

Article 1. Goal and Objectives 

Section 1.1 Compact Goal 

Section 1.2 Program Objective 

Section 1.3 Project Objectives 

Article 2. Funding and Resources 

Section 2.1 Program Funding 

Section 2.2 Compact Implementation 

Funding 

Section 2.3 MCC Funding 

Section 2.4 Disbursement 

Section 2.5 Interest 

Section 2.6 Government Resources; 

Budget 

Section 2.7 Limitations of the Use of MCC 

Funding 

Section 2.8 Taxes 

Section 2.9 Lower Middle Income 

Countries 

Article 3. Implementation 

Section 3.1 Program Implementation 

Agreement 

Section 3.2 Government Responsibilities 

Section 3.3 Policy Performance 

Section 3.4 Accuracy of Information 

Section 3.5 Implementation Letters 

Section 3.6 Procurement 

Section 3.7 Records; Accounting; Covered 

Providers; Access 

Section 3.8 Audits; Reviews 

Article 4. Communications 

Section 4.1 Communications 

Section 4.2 Representatives 

Section 4.3 Signatures 

Article 5. Termination; Suspension; Refunds 

Section 5.1 Termination; Suspension 

Section 5.2 Consequences of 

Termination, Suspension or Expiration 

Section 5.3 Refunds; Violation 

Section 5.4 Survival 

Article 6. Compact Annexes; Amendments; 

Governing Law 

Section 6.1 Annexes 

Section 6.2 Amendments 

Section 6.3 Inconsistencies 

Section 6.4 Governing Law 

Section 6.5 Additional Instruments 

Section 6.6 References to MCC Web site 

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Section 6.7 References to Laws, 

Regulations, Policies, and Guidelines 

Section 6.8 MCC Status 

Article 7. Entry Into Force 

Section 7.1 International Agreements 

Section 7.2 Conditions Precedent to Entry 

into Force 

Section 7.3 Date of Entry Into Force 

Section 7.4 Compact Term 

Section 7.5 Provisional Application 

Annex I: Program Description 

Annex II: Multi-Year Financial Plan 

Summary 

Annex III: Description of the Monitoring and 

Evaluation Plan 

Annex IV: Conditions to Disbursement of 

Compact Implementation Funding 

Annex V: Definitions 

Annex VI: Tax Schedules 

Millennium Challenge Compact 

Preamble 

This Millennium Challenge Compact 

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

States of America, acting through the 

Millennium Challenge Corporation, a 

United States government corporation 

(‘‘MCC’’), and the Hashemite Kingdom of 

Jordan (‘‘Jordan’’ or the ‘‘Government’’), 

acting through the Ministry of Water 

and Irrigation (individually a ‘‘Party’’ 

and collectively, the ‘‘Parties’’). 

Capitalized terms used in this Compact 

will have the meanings provided in 

Annex V. 

Recalling that the Government 

consulted with the private sector and 

civil society of Jordan to determine the 

priorities for the use of assistance and 

developed and submitted to MCC a 

proposal for such assistance to achieve 

lasting economic growth and poverty 

reduction; and 

Recognizing that MCC wishes to help 

Jordan implement the program 

described herein to achieve the goal and 

objectives described herein (as such 

program description and objectives may 

be amended from time to time in 

accordance with the terms hereof, the 

‘‘Program’’); 

The Parties hereby agree as follows: 

Article 1. Goal and Objectives 

Section 1.1 Compact Goal 

The goal of this Compact is to reduce 

poverty through economic growth in 

Jordan (the ‘‘Compact Goal’’). 

Section 1.2 Program Objective 

The objective of the Program (the 

‘‘Program Objective’’) is to increase the 

effective supply of water available to the 

inhabitants of Zarqa Governorate 

through improvements in the efficiency 

of water delivery, the extent of 

wastewater collection and the capacity 

of wastewater treatment. The Program 

consists of the projects described in 

Annex I (each a ‘‘Project’’ and 

collectively, the ‘‘Projects’’). 

Section 1.3 Project Objectives 

The objectives of each of the Projects 

(each a ‘‘Project Objective’’ and 

collectively, the ‘‘Project Objectives’’) are 

as follows: 

(a) The objectives of the Water 

Network Project are to (i) Improve the 

efficiency of network water delivery and 

the condition of home water systems, 

and (ii) decrease certain costs that 

households in Zarqa Governorate incur 

to satisfy their subsistence water needs. 

(b) The objectives of the Wastewater 

Network Project are to (i) Increase 

access to the wastewater network, (ii) 

increase the volume of wastewater 

collected within Zarqa Governorate for 

treatment and reuse, and (iii) reduce the 

incidents of sewage overflow. 

(c) The objectives of the As-Samra 

Expansion Project are to (i) Increase the 

capacity to treat wastewater from 

Amman and Zarqa Governorates, (ii) 

increase the volume of treated 

wastewater that is available as a 

substitute for freshwater for nondomestic use, and (iii) protect existing 

agriculture from the potential 

consequences of pollution from 

untreated wastewater. 

Article 2. Funding and Resources 

Section 2.1 Program Funding 

Upon entry into force of this Compact 

in accordance with Section 7.3, MCC 

will grant to the Government, under the 

terms of this Compact, an amount not to 

exceed Two Hundred and Seventy Two 

Million Nine Hundred and Eighty 

Thousand United States Dollars 

(US$272,980,000.00) (‘‘Program 

Funding’’) for use by the Government to 

implement the Program. The allocation 

of Program Funding is generally 

described in Annex II. 

Section 2.2 Compact Implementation 

Funding 

(a) Upon signing of this Compact, 

MCC will grant to the Government, 

under the terms of this Compact and in 

addition to the Program Funding 

described in Section 2.1, an amount not 

to exceed Two Million One Hundred 

and Twenty Thousand United States 

Dollars (US$2,120,000.00) (‘‘Compact 

Implementation Funding’’) under 

Section 609(g) of the Millennium 

Challenge Act of 2003, as amended (the 

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

to facilitate implementation of the 

Compact, including for the following 

purposes: 

(i) Financial management and 

procurement activities; 

(ii) Administrative activities 

(including start-up costs such as staff 

salaries) and administrative support 

expenses such as rent, computers and 

other information technology or capital 

equipment; 

(iii) Monitoring and evaluation 

activities; 

(iv) Feasibility studies; and 

(v) Other activities to facilitate 

Compact implementation as approved 

by MCC. 

The allocation of Compact 

Implementation Funding is generally 

described in Annex II. 

(b) Each Disbursement of Compact 

Implementation Funding is subject to 

satisfaction of the conditions precedent 

to such disbursement as set forth in 

Annex IV. 

(c) If MCC determines that the full 

amount of Compact Implementation 

Funding available under Section 2.2(a) 

exceeds the amount that reasonably can 

be utilized for the purposes set forth in 

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

the Government, may withdraw the 

excess amount, thereby reducing the 

amount of the Compact Implementation 

Funding available under Section 2.2(a) 

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

In such event, the amount of Compact 

Implementation Funding granted to the 

Government under Section 2.2(a) will be 

reduced by the Excess CIF Amount, and 

MCC will have no further obligations 

with respect to such Excess CIF 

Amount. 

(d) MCC, at its option by written 

notice to the Government, may elect to 

grant to the Government an amount 

equal to all or a portion of such Excess 

CIF Amount as an increase in the 

Program Funding, and such additional 

Program Funding will be subject to the 

terms and conditions of this Compact 

applicable to Program Funding. 

Section 2.3 MCC Funding 

Program Funding and Compact 

Implementation Funding are 

collectively referred to in this Compact 

as ‘‘MCC Funding,’’ and includes any 

refunds or reimbursements of Program 

Funding or Compact Implementation 

Funding paid by the Government in 

accordance with this Compact. 

Section 2.4 Disbursement 

In accordance with this Compact and 

the Program Implementation 

Agreement, MCC will disburse MCC 

Funding for expenditures incurred in 

furtherance of the Program (each 

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

the satisfaction of all applicable 

conditions precedent, the proceeds of 

Disbursements will be made available to 

the Government, at MCC’s sole election, 

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Federal Register / Vol. 75, No. 210 / Monday, November 1, 2010 / Notices 67125 

by (a) deposit to one or more bank 

accounts established by the Government 

and acceptable to MCC (each, a 

‘‘Permitted Account’’) or (b) direct 

payment to the relevant provider of 

goods, works or services for the 

implementation of the Program. MCC 

Funding may be expended only for 

Program expenditures. 

Section 2.5 Interest 

The Government will pay or transfer 

to MCC, in accordance with the Program 

Implementation Agreement, any interest 

or other earnings that accrue on MCC 

Funding prior to such funding being 

used for a Program purpose. 

Section 2.6 Government Resources; 

Budget 

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

of the MCA Act, the Government will 

make a contribution towards meeting 

the Program Objective and Project 

Objectives of this Compact. Annex II 

describes such contribution in more 

detail. In addition, the Government will 

provide all funds and other resources 

and will take all actions that are 

necessary to carry out the Government’s 

responsibilities under this Compact. 

(b) The Government will use its best 

efforts to ensure that all MCC Funding 

it receives or is projected to receive in 

each of its fiscal years is fully accounted 

for in its annual budget on a multi-year 

basis. 

(c) The Government will not reduce 

the normal and expected resources that 

it would otherwise receive or budget 

from sources other than MCC for the 

activities contemplated under this 

Compact and the Program. 

(d) Unless the Government discloses 

otherwise to MCC in writing, MCC 

Funding will be in addition to the 

resources that the Government would 

otherwise receive or budget for the 

activities contemplated under this 

Compact and the Program. 

Section 2.7 Limitations on the Use of 

MCC Funding 

The Government will ensure that 

MCC Funding is not used for any 

purpose that would violate United 

States law or policy, as specified in this 

Compact or as further notified to the 

Government in writing or by posting 

from time to time on the MCC Web site 

at http://www.mcc.gov (the ‘‘MCC Web 

site’’), including but not limited to the 

following purposes: 

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

military, police, militia, national guard 

or other quasi-military organization or 

unit; 

(b) For any activity that is likely to 

cause a substantial loss of United States 

jobs or a substantial displacement of 

United States production; 

(c) To undertake, fund or otherwise 

support any activity that is likely to 

cause a significant environmental, 

health, or safety hazard, as further 

described in MCC’s environmental and 

social assessment guidelines and any 

guidance documents issued in 

connection with the guidelines posted 

from time to time on the MCC Web site 

or otherwise made available to the 

Government (collectively, the ‘‘MCC 

Environmental Guidelines’’); or 

(d) To pay for the performance of 

abortions as a method of family 

planning or to motivate or coerce any 

person to practice abortions, to pay for 

the performance of involuntary 

sterilizations as a method of family 

planning or to coerce or provide any 

financial incentive to any person to 

undergo sterilizations or to pay for any 

biomedical research which relates, in 

whole or in part, to methods of, or the 

performance of, abortions or involuntary 

sterilization as a means of family 

planning. 

Section 2.8 Taxes 

(a) Unless the Parties specifically 

agree otherwise in writing, the 

Government will ensure that all MCC 

Funding is free from the payment or 

imposition of any existing or future 

taxes, duties, levies, contributions or 

other similar charges (but not fees or 

charges for services that are generally 

applicable in Jordan, reasonable in 

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

Jordan (including any such Taxes 

imposed by a national, regional, local or 

other governmental or taxing authority 

of or in Jordan). Specifically, and 

without limiting the generality of the 

foregoing, MCC Funding will be free 

from the payment of (i) Any tariffs, 

customs duties, import taxes, export 

taxes, and other similar charges on any 

goods, works or services introduced into 

Jordan in connection with the Program; 

(ii) sales tax, value added tax, excise tax, 

property transfer tax, and other similar 

charges on any transactions involving 

goods, works or services in connection 

with the Program; (iii) taxes and other 

similar charges on ownership, 

possession or use of any property in 

connection with the Program; and (iv) 

taxes and other similar charges on 

income, profits or gross receipts 

attributable to work performed in 

connection with the Program and 

related social security taxes and other 

similar charges on all natural or legal 

persons performing work in connection 

with the Program except (x) natural 

persons who are citizens or permanent 

residents of Jordan; and (y) legal persons 

formed under the laws of Jordan (but 

excluding MCA-Jordan and any other 

entity formed for the purpose of 

implementing the Government’s 

obligations hereunder). 

(b) The mechanisms that the 

Government will use to implement the 

tax exemption required by Section 2.8(a) 

are set forth in Annex VI. Such 

mechanisms may include exemptions 

from the payment of Taxes that have 

been granted in accordance with 

applicable law, refund or 

reimbursement of Taxes by the 

Government to MCC, MCA-Jordan or to 

the taxpayer, or payment by the 

Government to MCA-Jordan or MCC, for 

the benefit of the Program, of an agreed 

amount representing any collectible 

Taxes on the items described in Section 

2.8(a). 

(c) If a Tax has been paid contrary to 

the requirements of Section 2.8(a) or 

Annex VI, the Government will refund 

promptly to MCC (or to another party as 

designated by MCC) the amount of such 

Tax in United States Dollars or the 

currency of Jordan within thirty (30) 

days (or such other period as may be 

agreed in writing by the Parties) after 

the Government is notified in writing 

(whether by MCC or MCA-Jordan) that 

such Tax has been paid. 

(d) No MCC Funding, proceeds 

thereof or Program Assets may be 

applied by the Government in 

satisfaction of its obligations under 

Section 2.8(c). 

Section 2.9 Lower Middle Income 

Countries 

Section 606(b) of the MCA Act 

restricts the amount of assistance that 

MCC may provide to ‘‘lower middle 

income countries,’’ a term that is defined 

in the MCA Act and includes Jordan. To 

the extent that MCC determines, in 

MCC’s reasonable discretion, that the 

amount of Program Funding granted to 

the Government in this Compact may 

result in a violation of Section 606(b) of 

the MCA Act, MCC, at any time and 

from time to time upon written notice 

to the Government, may reduce the 

amount of Program Funding, or 

withhold any Disbursement of Program 

Funding, to avoid or remedy such a 

violation. 

Article 3. Implementation 

Section 3.1 Program Implementation 

Agreement 

The Parties will enter into an 

agreement providing further detail on 

the implementation arrangements, fiscal 

accountability and disbursement and 

use of MCC Funding, among other 

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67126 Federal Register / Vol. 75, No. 210 / Monday, November 1, 2010 / Notices 

matters (the ‘‘Program Implementation 

Agreement’’ or ‘‘PIA’’); and the 

Government will implement the 

Program in accordance with this 

Compact, the PIA, any other 

Supplemental Agreement and any 

Implementation Letter. 

Section 3.2 Government 

Responsibilities 

(a) The Government has principal 

responsibility for overseeing and 

managing the implementation of the 

Program. 

(b) The Government hereby designates 

Millennium Challenge Account—Jordan 

Limited Liability Company as the 

accountable entity to implement the 

Program and to exercise and perform the 

Government’s right and obligation to 

oversee, manage and implement the 

Program, including without limitation, 

managing the implementation of 

Projects and their Activities, allocating 

resources and managing procurements. 

Such entity will be referred to herein as 

‘‘MCA-Jordan,’’ and has the authority to 

bind the Government with regard to all 

Program activities. The designation by 

this Section 3.2(b) will not relieve the 

Government of any obligations or 

responsibilities hereunder or under any 

related agreement, for which the 

Government remains fully responsible. 

MCC hereby acknowledges and consents 

to the designation in this Section 3.2(b). 

(c) The Government will ensure that 

any Program Assets or services funded 

in whole or in part (directly or 

indirectly) by MCC Funding are used 

solely in furtherance of this Compact 

and the Program unless MCC agrees 

otherwise in writing. 

(d) The Government will take all 

necessary or appropriate steps to 

achieve the Program Objective and the 

Project Objectives during the Compact 

Term (including, without limiting 

Section 2.6(a), funding all costs that 

exceed MCC Funding and are required 

to carry out the terms hereof and 

achieve such objectives, unless MCC 

agrees otherwise in writing). 

(e) The Government will fully comply 

with the Program Guidelines, as 

applicable, in its implementation of the 

Program. 

Section 3.3 Policy Performance 

In addition to undertaking the specific 

policy, legal and regulatory reform 

commitments identified in Annex I (if 

any), the Government will seek to 

maintain and to improve its level of 

performance under the policy criteria 

identified in Section 607 of the MCA 

Act, and the selection criteria and 

methodology used by MCC. 

Section 3.4 Accuracy of Information 

The Government assures MCC that, as 

of the date this Compact is signed by the 

Government, the information provided 

to MCC by or on behalf of the 

Government in the course of reaching 

agreement with MCC on this Compact is 

true, correct and complete in all 

material respects. 

Section 3.5 Implementation Letters 

From time to time, MCC may provide 

guidance to the Government in writing 

on any matters relating to this Compact, 

MCC Funding or implementation of the 

Program (each, an ‘‘Implementation 

Letter’’). The Government will use such 

guidance in implementing the Program. 

The Parties may also issue jointly 

agreed-upon Implementation Letters to 

confirm and record their mutual 

understanding on aspects related to the 

implementation of this Compact, the 

PIA or other related agreements. 

Section 3.6 Procurement 

The Government will ensure that the 

procurement of all goods, works and 

services by the Government or any 

Provider to implement the Program will 

be consistent with the ‘‘MCC Program 

Procurement Guidelines’’ posted from 

time to time on the MCC Web site (the 

‘‘MCC Program Procurement 

Guidelines’’). The MCC Program 

Procurement Guidelines include the 

following requirements, among others: 

(a) Open, fair, and competitive 

procedures must be used in a 

transparent manner to solicit, award and 

administer contracts and to procure 

goods, works and services; 

(b) Solicitations for goods, works, and 

services must be based upon a clear and 

accurate description of the goods, works 

and services to be acquired; 

(c) Contracts must be awarded only to 

qualified contractors that have the 

capability and willingness to perform 

the contracts in accordance with their 

terms on a cost effective and timely 

basis; and 

(d) No more than a commercially 

reasonable price, as determined, for 

example, by a comparison of price 

quotations and market prices, will be 

paid to procure goods, works and 

services. 

Furthermore, any person or entity on 

(i) The master list of Specifically 

Designated Nationals and Blocked 

Persons maintained by the U.S. 

Department of Treasury’s Office of 

Foreign Assets Control, (ii) the 

consolidated list of individuals and 

entities maintained by the ‘‘1267 

Committee’’ of the United Nations 

Security Council, (iii) the list 

maintained on http://www.epls.gov, or 

(iv) other lists specified by MCC will be 

ineligible to participate in an MCCfunded procurement or to receive MCC 

Funding. 

Section 3.7 Records; Accounting; 

Covered Providers; Access 

(a) Government Books and Records. 

The Government will maintain, and will 

use its best efforts to ensure that all 

Covered Providers maintain, accounting 

books, records, documents and other 

evidence relating to the Program 

adequate to show, to MCC’s satisfaction, 

the use of all MCC Funding and the 

implementation and results of the 

Program (‘‘Compact Records’’). In 

addition, the Government will furnish 

or cause to be furnished to MCC, upon 

its request, originals or copies of such 

Compact Records. 

(b) Accounting. The Government will 

maintain and will use its best efforts to 

ensure that all Covered Providers 

maintain Compact Records in 

accordance with generally accepted 

accounting principles prevailing in the 

United States, or at the Government’s 

option and with MCC’s prior written 

approval, other accounting principles, 

such as those (i) prescribed by the 

International Accounting Standards 

Board or (ii) then prevailing in Jordan. 

Compact Records must be maintained 

for at least five (5) years after the end 

of the Compact Term or for such longer 

period, if any, required to resolve any 

litigation, claims or audit findings or 

any applicable legal requirements. 

(c) Providers and Covered Providers. 

Unless the Parties agree otherwise in 

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

the Government that receives or uses 

MCC Funding or any other Program 

Asset in carrying out activities in 

furtherance of this Compact or (ii) any 

third party that receives at least 

US$50,000 in the aggregate of MCC 

Funding (other than as salary or 

compensation as an employee of an 

entity of the Government) during the 

Compact Term. A ‘‘Covered Provider’’ is 

(1) a non-United States Provider that 

receives (other than pursuant to a direct 

contract or agreement with MCC) 

US$300,000 or more of MCC Funding in 

any Government fiscal year or any other 

non-United States person or entity that 

receives, directly or indirectly, 

US$300,000 or more of MCC Funding 

from any Provider in such fiscal year or 

(2) any United States Provider that 

receives (other than pursuant to a direct 

contract or agreement with MCC) 

US$500,000 or more of MCC Funding in 

any Government fiscal year or any other 

United States person or entity that 

receives, directly or indirectly, 

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US$500,000 or more of MCC Funding 

from any Provider in such fiscal year. 

(d) Access. Upon MCC’s request, the 

Government, at all reasonable times, 

will permit, or cause to be permitted, 

authorized representatives of MCC, an 

authorized Inspector General of MCC 

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

Government Accountability Office, any 

auditor responsible for an audit 

contemplated herein or otherwise 

conducted in furtherance of this 

Compact, and any agents or 

representatives engaged by MCC or the 

Government to conduct any assessment, 

review or evaluation of the Program, the 

opportunity to audit, review, evaluate or 

inspect facilities, assets and activities 

funded in whole or in part by MCC 

Funding. 

Section 3.8 Audits; Reviews 

(a) Government Audits. Except as the 

Parties may agree otherwise in writing, 

the Government will, on at least a semiannual basis, conduct, or cause to be 

conducted, financial audits of all 

disbursements of MCC Funding 

covering the period from signing of this 

Compact until the earlier of the 

following December 31 or June 30 and 

covering each six-month period 

thereafter ending December 31 and June 

30, through the end of the Compact 

Term. In addition, upon MCC’s request, 

the Government will ensure that such 

audits are conducted by an independent 

auditor approved by MCC and named 

on the list of local auditors approved by 

the Inspector General or a United 

States–based certified public accounting 

firm selected in accordance with the 

‘‘Guidelines for Financial Audits 

Contracted by MCA’’ (the ‘‘Audit 

Guidelines’’) issued and revised from 

time to time by the Inspector General, 

which are posted on the MCC Web site. 

Audits will be performed in accordance 

with the Audit Guidelines and be 

subject to quality assurance oversight by 

the Inspector General. Each audit must 

be completed and the audit report 

delivered to MCC no later than 90 days 

after the first period to be audited and 

no later than 90 days after each June 30 

and December 31 thereafter, or such 

other period as the Parties may 

otherwise agree in writing. 

(b) Audits of Other Entities. The 

Government will ensure that MCCfinanced agreements between the 

Government or any Provider, on the one 

hand, and (i) a United States nonprofit 

organization, on the other hand, state 

that the United States nonprofit 

organization is subject to the applicable 

audit requirements contained in OMB 

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

Governments, and Non-Profit 

Organizations,’’ issued by the United 

States Office of Management and 

Budget; (ii) a United States for-profit 

Covered Provider, on the other hand, 

state that the United States for-profit 

organization is subject to audit by the 

applicable United States Government 

agency, unless the Government and 

MCC agree otherwise in writing; and 

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

other hand, state that the non-US 

Covered Provider is subject to audit in 

accordance with the Audit Guidelines. 

(c) Corrective Actions. The 

Government will use its best efforts to 

ensure that each Covered Provider (i) 

takes, where necessary, appropriate and 

timely corrective actions in response to 

audits; (ii) considers whether the results 

of the Covered Provider’s audit 

necessitates adjustment of the 

Government’s records; and (iii) permits 

independent auditors to have access to 

its records and financial statements as 

necessary. 

(d) Audit by MCC. MCC will have the 

right to arrange for audits of the 

Government’s use of MCC Funding. 

(e) Cost of Audits, Reviews or 

Evaluations. MCC Funding may be used 

to fund the costs of any audits, reviews 

or evaluations required under this 

Compact. 

Article 4. Communications 

Section 4.1 Communications 

Any document or communication 

required or submitted by either Party to 

the other under this Compact must be in 

writing and, except as otherwise agreed 

with MCC, in English. For this purpose, 

the address of each Party is set forth 

below. 

To MCC: 

Millennium Challenge Corporation, 

Attention: Vice President, Compact 

Operations, (with a copy to the Vice 

President and General Counsel), 875 

Fifteenth Street, NW., Washington, DC 

20005, United States of America, 

Facsimile: (202) 521–3700, Telephone: 

(202) 521–3600, E-mail: 

VPOperations@mcc.gov (Vice President, 

Compact Operations), 

VPGeneralCounsel@mcc.gov (Vice 

President and General Counsel). 

To the Government: 

Ministry of Planning and 

International Cooperation, P.O. Box 555, 

Amman 11118, Jordan, Tel: +962 6 

4642246, Fax: +962 6 4642247. 

Section 4.2 Representatives 

For all purposes of this Compact, the 

Government will be represented by the 

individual holding the position of, or 

acting as, the Minister of Planning and 

International Cooperation, and MCC 

will be represented by the individual 

holding the position of, or acting as, 

Vice President, Compact Operations 

(each of the foregoing, a ‘‘Principal 

Representative’’). Each Party, by written 

notice to the other Party, may designate 

one or more additional representatives 

(each, an ‘‘Additional Representative’’) 

for all purposes other than signing 

amendments to this Compact. The 

Government hereby designates the 

Chairperson of the Board of MCA– 

Jordan as an Additional Representative. 

A Party may change its Principal 

Representative to a new representative 

that holds a position of equal or higher 

authority upon written notice to the 

other Party. 

Section 4.3 Signatures 

Signatures to this Compact and to any 

amendment to this Compact will be 

original signatures appearing on the 

same page or in an exchange of letters 

or diplomatic notes. With respect to all 

documents arising out of this Compact 

(other than the Program Implementation 

Agreement) and amendments thereto, 

signatures may, as appropriate, be 

delivered by facsimile or electronic mail 

and in counterparts and will be binding 

on the Party delivering such signature to 

the same extent as an original signature 

would be. 

Article 5. Termination; Suspension; 

Expiration 

Section 5.1 Termination; Suspension 

(a) Either Party may terminate this 

Compact without cause in its entirety by 

giving the other Party thirty (30) days’ 

prior written notice. MCC may also 

terminate this Compact or MCC Funding 

without cause in part by giving the 

Government thirty (30) days’ prior 

written notice. 

(b) MCC may, immediately, upon 

written notice to the Government, 

suspend or terminate this Compact or 

MCC Funding, in whole or in part, and 

any obligation related thereto, if MCC 

determines that any circumstance 

identified by MCC, as a basis for 

suspension or termination (whether in 

writing to the Government or by posting 

on the MCC Web site) has occurred, 

which circumstances include but are 

not limited to the following: 

(i) The Government fails to comply 

with its obligations under this Compact 

or any other agreement or arrangement 

entered into by the Government in 

connection with this Compact or the 

Program; 

(ii) An event or series of events has 

occurred that makes it probable that the 

Program Objective or any of the Project 

Objectives will not be achieved during 

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the Compact Term or that the 

Government will not be able to perform 

its obligations under this Compact; 

(iii) A use of MCC Funding or 

continued implementation of this 

Compact or the Program violates 

applicable law or United States 

Government policy, whether now or 

hereafter in effect; 

(iv) The Government or any other 

person or entity receiving MCC Funding 

or using Program Assets is engaged in 

activities that are contrary to the 

national security interests of the United 

States; 

(v) An act has been committed or an 

omission or an event has occurred that 

would render Jordan ineligible to 

receive United States economic 

assistance under Part I of the Foreign 

Assistance Act of 1961, as amended (22 

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

application of any provision of such act 

or any other provision of law; 

(vi) The Government has engaged in 

a pattern of actions inconsistent with 

the criteria used to determine the 

eligibility of Jordan for assistance under 

the MCA Act; and 

(vii) The Government or another 

person or entity receiving MCC Funding 

or using Program Assets is found to 

have been convicted of a narcotics 

offense or to have been engaged in drug 

trafficking. 

Section 5.2 Consequences of 

Termination, Suspension or Expiration 

(a) Upon the suspension or 

termination, in whole or in part, of this 

Compact or any MCC Funding, or upon 

the expiration of this Compact, the 

provisions of Section 4.2 of the Program 

Implementation Agreement will govern 

the post-suspension, post-termination or 

post-expiration treatment of MCC 

Funding, any related Disbursements and 

Program Assets. Any portion of this 

Compact, MCC Funding, the Program 

Implementation Agreement or any other 

Supplemental Agreement that is not 

suspended or terminated will remain in 

full force and effect. 

(b) MCC may reinstate any suspended 

or terminated MCC Funding under this 

Compact if MCC determines that the 

Government or other relevant person or 

entity has committed to correct each 

condition for which MCC Funding was 

suspended or terminated. 

Section 5.3 Refunds; Violation 

(a) If any MCC Funding, any interest 

or earnings thereon, or any Program 

Asset is used for any purpose in 

violation of the terms of this Compact, 

then MCC may require the Government 

to repay to MCC in United States Dollars 

the value of the misused MCC Funding, 

interest, earnings, or asset, plus interest 

within thirty (30) days after the 

Government’s receipt of MCC’s request 

for repayment. The Government will not 

use MCC Funding, proceeds thereof or 

Program Assets to make such payment. 

(b) Notwithstanding any other 

provision in this Compact or any other 

existing agreement to the contrary, 

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

refund will continue during the 

Compact Term and for a period of (i) 

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

year after MCC receives actual 

knowledge of such violation, whichever 

is later. 

(c) In addition to Section 5.3(a), MCC 

will be entitled to any refund of 

Program Funding related to the AsSamra Expansion Project to the extent 

such refund is contemplated by the 

Program Implementation Agreement. 

Section 5.4 Survival 

The Government’s responsibilities 

under Sections 2.7, 3.7, 3.8, 5.2, 5.3, 5.4, 

and 6.4 will survive the expiration, 

suspension or termination of this 

Compact. 

Article 6. Compact Annexes; 

Amendments; Governing Law 

Section 6.1 Annexes 

Each annex to this Compact 

constitutes an integral part hereof, and 

references to ‘‘Annex’’ mean an annex to 

this Compact unless otherwise expressly 

stated. 

Section 6.2 Amendments 

(a) The Parties may amend this 

Compact only by a written agreement 

signed by the Principal Representatives 

(or such other government official 

designated by the relevant Principal 

Representative). 

(b) Notwithstanding Section 6.2(a), 

the Parties may agree in writing, signed 

by the Principal Representatives (or 

such other government official 

designated by the relevant Principal 

Representative) or any Additional 

Representative, to modify any Annex to 

(i) suspend, terminate or modify any 

Project or Activity, or to create a new 

project; (ii) change the allocations of 

funds as set forth in Annex II as of the 

date hereof (including to allocate funds 

to a new project); (iii) modify the 

Implementation Framework described 

in Annex I; or (iv) add, delete or waive 

any condition precedent described in 

Annex IV; provided that, in each case, 

any such modification (1) is consistent 

in all material respects with the Program 

Objective and Project Objectives; (2) 

does not cause the amount of Program 

Funding to exceed the aggregate amount 

specified in Section 2.1 (as may be 

modified by operation of Section 2.2(d)); 

(3) does not cause the amount of 

Compact Implementation Funding to 

exceed the aggregate amount specified 

in Section 2.2(a); (4) does not reduce the 

Government’s responsibilities or 

contribution of resources required under 

Section 2.6(a); and (5) does not extend 

the Compact Term. 

Section 6.3 Inconsistencies 

In the event of any conflict or 

inconsistency between: 

(a) Any Annex and any of Articles 1 

through 7, such Articles 1 through 7, as 

applicable, will prevail; or 

(b) This Compact and any other 

agreement between the Parties regarding 

the Program, this Compact will prevail. 

Section 6.4 Governing Law 

This Compact is an international 

agreement and as such will be governed 

by the principles of international law. 

Section 6.5 Additional Instruments 

Any reference to activities, obligations 

or rights undertaken or existing under or 

in furtherance of this Compact or 

similar language will include activities, 

obligations and rights undertaken by, or 

existing under or in furtherance of any 

agreement, document or instrument 

related to this Compact and the 

Program. 

Section 6.6 References to MCC Web 

site 

Any reference in this Compact, the 

PIA or any other agreement entered into 

in connection with this Compact, to a 

document or information available on, 

or notified by posting on the MCC Web 

site will be deemed a reference to such 

document or information as updated or 

substituted on the MCC Web site from 

time to time. 

Section 6.7 References to Laws, 

Regulations, Policies and Guidelines 

Each reference in this Compact, the 

PIA or any other agreement entered into 

in connection with this Compact, to a 

law, regulation, policy, guideline or 

similar document will be construed as 

a reference to such law, regulation, 

policy, guideline or similar document as 

it may, from time to time, be amended, 

revised, replaced, or extended and will 

include any law, regulation, policy, 

guideline or similar document issued 

under or otherwise applicable or related 

to such law, regulation, policy, 

guideline or similar document. 

Section 6.8 MCC Status 

MCC is a United States government 

corporation acting on behalf of the 

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United States Government in the 

implementation of this Compact. MCC 

and the United States Government 

assume no liability for any claims or 

loss arising out of activities or omissions 

under this Compact. The Government 

waives any and all claims against MCC 

or the United States Government or any 

current or former officer or employee of 

MCC or the United States Government 

for all loss, damage, injury, or death 

arising out of activities or omissions 

under this Compact, and agrees that it 

will not bring any claim or legal 

proceeding of any kind against any of 

the above entities or persons for any 

such loss, damage, injury, or death. The 

Government agrees that MCC and the 

United States Government or any 

current or former officer or employee of 

MCC or the United States Government 

will be immune from the jurisdiction of 

all courts and tribunals of Jordan for any 

claim or loss arising out of activities or 

omissions under this Compact. 

Article 7. Entry Into Force 

Section 7.1 International Agreements 

The Parties understand that each of 

the Compact and the Project 

Implementation Agreement, upon its 

entry into force, will prevail over the 

domestic laws of Jordan. 

Section 7.2 Conditions Precedent to 

Entry Into Force 

Before this Compact enters into force: 

(a) The Program Implementation 

Agreement must have been signed by 

the parties thereto; 

(b) The Government must have 

delivered to MCC: 

(i) A letter signed and dated by the 

Principal Representative of the 

Government, or such other duly 

authorized representative of the 

Government acceptable to MCC, 

confirming that the Government has 

completed its domestic requirements for 

this Compact to enter into force and that 

the other conditions precedent to entry 

into force in this Section 7.2 have been 

met; 

(ii) A signed legal opinion from the 

Minister of Justice of Jordan (or such 

other legal representative of the 

Government acceptable to MCC), in 

form and substance satisfactory to MCC; 

and 

(iii) Complete, certified copies of all 

decrees, legislation, regulations or other 

governmental documents relating to the 

Government’s domestic requirements 

for this Compact to enter into force, 

which MCC may post on its Web site or 

otherwise make publicly available; 

(c) MCC shall not have determined 

that after signature of this Compact, the 

Government has engaged in a pattern of 

actions inconsistent with the eligibility 

criteria for MCC Funding; 

(d) The Government has delivered to 

MCC a plan, in form and substance 

satisfactory to MCC, including any 

necessary adjustments to wastewater 

tariffs in Amman and Zarqa 

Governorates, for fully funding the 

projected treatment charges payable as a 

result of the As-Samra Expansion 

Project; 

(e) The Government has delivered to 

MCC a plan, in form and substance 

satisfactory to MCC, including any 

necessary adjustments to water and 

wastewater tariffs in Zarqa Governorate, 

to ensure projected revenues fully fund 

projected operations and maintenance 

costs of the water and wastewater 

network in Zarqa Governorate no later 

than 2015; and 

(f) MCC has determined in its sole 

discretion, after consultation with the 

Government, that there has been 

satisfactory progress with respect to the 

As-Samra Expansion Project. 

Section 7.3 Date of Entry Into Force 

This Compact will enter into force on 

the date of the letter from MCC to the 

Government in an exchange of letters 

confirming that MCC has completed its 

domestic requirements for entry into 

force of this Compact and that the 

conditions precedent to entry into force 

in Section 7.2 have been met. 

Section 7.4 Compact Term 

This Compact will remain in force for 

five (5) years after its entry into force, 

unless terminated earlier under Section 

5.1 (the ‘‘Compact Term’’). 

Section 7.5 Provisional Application 

Upon signature of this Compact and 

until this Compact has entered into 

force in accordance with Section 7.3, 

the Parties will provisionally apply the 

terms of this Compact; provided that, no 

MCC Funding, other than Compact 

Implementation Funding, will be made 

available or disbursed before this 

Compact enters into force. 

In Witness Whereof, the undersigned, 

duly authorized by their respective 

governments, have signed this Compact. 

Done at Washington, DC, this 25th day of 

October 2010, in the English language only. 

The United States of America, acting 

through the Millennium Challenge 

Corporation, 

Daniel W. Yohannes, 

Chief Executive Officer. 

The Hashemite Kingdom of Jordan, acting 

through the Ministry of Water and Irrigation, 

Mohammad Najjar, 

Minister of Water and Irrigation. 

Annex I Program Description 

This Annex I describes the Program 

that MCC Funding will support in 

Jordan during the Compact Term. 

A. Program Overview 

1. Background and Consultative Process 

Jordan is a highly urbanized Middle 

Eastern country with a population of 

approximately six million people. With 

limited access to surface water or 

naturally recharged aquifers, Jordan 

ranks among the world’s five most water 

poor countries. 

Jordan was deemed eligible for MCC 

Compact assistance in 2006. Late in 

2007, the Government established the 

Millennium Challenge Unit (the ‘‘MCU’’) 

to work directly with MCC to manage 

the process of developing a proposed 

Compact program. Following a detailed 

constraints analysis and sector analysis, 

the MCU conducted a broad 

consultative process that garnered 

feedback from private sector 

representatives, civil society 

organizations, donors, and ordinary 

citizens through large, town-hall style 

meetings in each of Jordan’s twelve 

governorates. Throughout this process, 

the challenge of addressing Jordan’s 

severe water shortages emerged as a key 

priority. 

The MCU invited key stakeholders in 

the water, sewer and sanitation sector to 

participate in a project design workshop 

that focused on the objective of making 

more water available to households and 

commercial users. Stakeholders 

emphasized the need to (a) improve 

water delivery systems to reduce water 

losses and (b) expand capacities for 

collecting and treating wastewater and 

reusing it in agriculture, wherever 

appropriate. 

The Government has identified 

specific projects related to the 

rehabilitation of the water distribution 

system and expansion of the capacity 

for collecting and treating wastewater in 

Zarqa Governorate, among the poorest 

and most urban areas in the country, 

and the expansion of the capacity of an 

existing wastewater treatment plant that 

treats the majority of wastewater from 

Amman and Zarqa Governorates. 

2. Program Objective 

The Program Objective is to increase 

the effective supply of water available to 

the inhabitants of Zarqa Governorate 

through improvements in the efficiency 

of water delivery, the extent of 

wastewater collection and the capacity 

of wastewater treatment. The Program 

consists of the Water Network Project, 

the Wastewater Network Project and the 

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As-Samra Expansion Project, as further 

described in this Annex I. 

3. Environmental and Social Safeguards 

All of the Projects will be 

implemented in compliance with the 

MCC Environmental Guidelines and the 

MCC Gender Policy, and any 

involuntary resettlement will be carried 

out in accordance with the World 

Bank’s Operational Policy on 

Involuntary Resettlement in effect as of 

July 2007 (‘‘OP 4.12’’) in a manner 

acceptable to MCC. The Government 

also will ensure that the Projects comply 

with all national environmental laws 

and regulations, licenses and permits, 

except to the extent such compliance 

would be inconsistent with this 

Compact. Specifically, the Government 

will (a) cooperate with or complete, as 

the case may be, any ongoing 

environmental and social impact 

assessments, or if necessary undertake 

and complete any additional 

environmental and social assessments, 

environmental and social management 

plans, environmental and social audits, 

resettlement policy frameworks, and 

resettlement action plans required 

under the laws of Jordan, the MCC 

Environmental Guidelines, this 

Compact, the Program Implementation 

Agreement, or any other Supplemental 

Agreement, or as otherwise required by 

MCC, each in form and substance 

satisfactory to MCC; (b) ensure that 

Project-specific environmental and 

social management plans are developed 

and all relevant measures contained in 

such plans are integrated into project 

design, the applicable procurement 

documents and associated finalized 

contracts, in each case in form and 

substance satisfactory to MCC; and (c) 

implement to MCC’s satisfaction 

appropriate environmental and social 

mitigation measures identified in such 

assessments or plans or developed to 

address environmental and social issues 

identified during implementation. 

Unless MCC agrees otherwise in writing, 

the Government will fund all necessary 

costs of environmental and social 

mitigation measures (including, without 

limitation, costs of resettlement) not 

specifically provided for, or that exceed 

the MCC Funding specifically allocated 

for such costs, in the Detailed Financial 

Plan for any Project. 

To maximize the positive social 

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

human trafficking, child and forced 

labor, and HIV/AIDS, and ensure 

compliance with the MCC Gender 

Policy, the Government will (i) develop 

a comprehensive social and gender 

integration plan which, at a minimum, 

incorporates the findings of a 

comprehensive gender analysis, 

identifies approaches for regular, 

meaningful and inclusive consultations 

with women and other vulnerable/ 

underrepresented groups, consolidates 

the findings and recommendations of 

Project-specific social and gender 

analyses and sets forth strategies for 

incorporating findings of the social and 

gender analyses into final Project 

designs, as appropriate (‘‘Social and 

Gender Integration Plan’’); and (ii) 

ensure, through monitoring and 

coordination during implementation, 

that final Activity designs, construction 

tender documents, other bidding 

documents, and implementation plans 

are consistent with and incorporate the 

outcomes of the social and gender 

analyses and Social and Gender 

Integration Plan. 

B. Description of Projects 

Set forth below is a description of 

each of the Projects that the Government 

will implement, or cause to be 

implemented, using MCC Funding to 

advance the applicable Project 

Objectives. In addition, specific 

activities that will be undertaken within 

each Project (each, an ‘‘Activity’’), 

including sub-activities, are also 

described. 

1. Water Network Project 

(a) Summary of Project and Activities. 

The objectives of the water network 

restructuring and rehabilitation project 

(the ‘‘Water Network Project’’) are to (1) 

improve the efficiency of network water 

delivery and the condition of home 

water systems, and (2) decrease certain 

costs that households in Zarqa 

Governorate incur to satisfy their 

subsistence water needs. The Water 

Network Project is designed to address 

high rates of water loss in the water 

supply network in Zarqa Governorate 

and provide direct assistance to poor 

households in improving their 

household water and sanitation 

infrastructure. 

The Water Network Project is 

comprised of two Activities: (A) The 

restructuring and rehabilitation of the 

water supply systems in key areas of 

Zarqa Governorate (the ‘‘Infrastructure 

Investment Activity’’); and (B) assistance 

to households to improve the plumbing, 

water storage, sewage connections, and 

general awareness of best practices for 

sanitation and water efficiency (the 

‘‘Water Smart Homes Activity,’’ or ‘‘WSH 

Activity’’). 

(i) Infrastructure Investment Activity. 

The Infrastructure Investment 

Activity is designed to restructure and 

rehabilitate transmission and 

distribution water supply systems in 

key areas of Zarqa Governorate. In 

addition to reducing physical leaks, this 

Activity is designed to facilitate the 

transition of the water supply systems 

from periodic distribution under high 

pressure to more frequent, gravity-fed 

distribution. The Infrastructure 

Investment Activity consists of the 

following three sub-activities: 

(1) Strategic Infrastructure Works. 

This sub-activity is designed to install 

up to 65 system meters at up to 32 

locations, and conduct condition 

assessments of the system through 

mapping and geographic information 

systems (‘‘GIS’’). 

(2) Zarqa Water Supply Area (‘‘WSA’’) 

Works. This sub-activity is designed to 

rehabilitate, restructure, and upgrade 

works in the primary, secondary and 

tertiary water supply systems in the 

Zarqa WSA. Primary infrastructure 

works to be supported by MCC Funding 

include: 

(A) Strategic metering in the following 

three distribution areas: Zarqa High, 

Zarqa North, and Zarqa Mid-Batrawi 

(other than the Al-Gweireyeh area) 

(collectively, the ‘‘Zarqa Distribution 

Areas’’); 

(B) Mapping and GIS condition 

assessments; 

(C) Construction of primary systems 

from Batrawi and Zarqa High Reservoirs 

to the Zarqa Distribution Areas; 

(D) Creation of up to 63 district 

metering area (‘‘DMA’’) connection 

points; 

(E) Rehabilitation and restructuring of 

up to 44 km of primary systems; and 

(F) Upgrading the existing reservoir at 

Zarqa Pump Station. 

Secondary infrastructure works to be 

supported by MCC Funding include the 

rehabilitation and restructuring of up to 

595 km of secondary network pipelines. 

Tertiary infrastructure works to be 

supported by MCC Funding include: 

(G) Rehabilitation and restructuring of 

up to 37 km of tertiary network 

pipelines; 

(H) Replacement of up to 23,737 

customer meters; and 

(I) Restructuring of up to 29,371 

customer connection points. 

(3) Ruseifa WSA Works. This subactivity is designed to rehabilitate, 

restructure, and upgrade works in the 

water systems in the Ruseifa WSA. 

Primary infrastructure works to be 

supported by MCC Funding include: 

(A) Strategic metering for the 

following distribution areas: Ruseifa 

High and Ruseifa Low (collectively, the 

‘‘Ruseifa Distribution Areas’’); 

(B) Mapping and GIS condition 

assessments; 

(C) Creation of up to 26 DMA 

connection points; 

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(D) Construction of up to 6 km of new 

primary network pipeline and upgrade 

of up to 11 km of existing primary 

network pipeline; and 

(E) Construction of new Basateen 

pumping station and upgrading of the 

existing Basateen Reservoir. 

Secondary infrastructure works to be 

supported by MCC Funding include the 

rehabilitation and restructuring of up to 

332 km of secondary network pipelines. 

Tertiary infrastructure works to be 

supported by MCC Funding include: 

(F) Rehabilitation and restructuring of 

up to 219 km of tertiary network 

pipelines; 

(G) Replacement of up to 9,786 

customer meters; and 

(H) Restructuring of up to 15,813 

customer connection points. 

(ii) Water Smart Homes Activity. 

The WSH Activity is designed to 

improve the condition of home water 

systems and enhance the benefits that 

households, particularly poor 

households, gain from increases in the 

effective supply of water in Zarqa 

Governorate. The WSH Activity consists 

of the following two sub-activities: 

(1) WSH Outreach Campaign. This 

sub-activity is designed to disseminate 

information on techniques for cleaning 

water storage tanks and properly 

maintaining home water systems, along 

with the benefits of regular 

maintenance, to households in the 

geographic areas targeted by the 

Infrastructure Investment Activity (the 

‘‘WSH Outreach Campaign’’), and 

(2) WSH Direct Assistance Program. 

This sub-activity is designed to provide 

technical and financial assistance to 

poor households in Zarqa Governorate 

for critical improvements in their home 

systems for water storage, water delivery 

and sanitation, in exchange for certain 

cost-sharing fees (the ‘‘WSH Direct 

Assistance Program’’). The WSH Direct 

Assistance Program is expected to 

support replacement of water storage 

tanks, replacement of pipes, installation 

of water-saving faucets and construction 

of proper connections to the wastewater 

collection system, as needed. Eligible 

recipients for MCC Funding under this 

sub-activity must first qualify for the 

National Aid Fund, a Ministry of Social 

Development program that provides 

financial support to the very poor. 

(b) Beneficiaries. 

The Water Network Project is 

expected to benefit approximately 

302,000 households, for a total of 

1,600,000 individuals, over twenty 

years. This figure represents the 

projected total population of Zarqa 

Governorate who may benefit from the 

efficiency gains anticipated in the water 

supply network. This figure includes an 

estimated 110,000 households, for a 

total of 600,000 people, who will benefit 

directly from changes in domestic 

expenditure or higher consumption of 

water provided through the water 

supply network. An estimated four 

percent of beneficiaries will be among 

those living on less than US$2.00 per 

day on a purchasing power parity basis, 

with those living on US$2.00–US$4.00 

per day representing another quarter of 

the total beneficiaries. 

This figure also includes 3,500 poor 

households, for a total of almost 19,000 

individuals, who will benefit from 

direct assistance to rehabilitate their 

household water and sanitation systems. 

(c) Environmental and Social 

Mitigation Measures. 

Consultants responsible for the 

feasibility study of the Infrastructure 

Investment Activity completed a 

preliminary environmental and social 

impact assessment (‘‘PESIA’’) in May 

2010. In the PESIA provided to the 

Ministry of Water and Irrigation 

(‘‘MWI’’), the consultants recommended 

a Category B classification under the 

MCC Environmental Guidelines and a 

Category 2 classification under 

Jordanian regulations. MWI will submit 

this recommendation, along with a 

project overview and a copy of the 

PESIA, to the Ministry of Environment 

(‘‘MOE’’) for its evaluation of the 

classification under Jordanian law. MOE 

has yet to issue its determination of the 

project category. Depending on the final 

categorization by MOE and MCC’s 

assessment of the final resettlement 

requirements, a detailed Environmental 

and Social Impact Assessment (‘‘ESIA’’) 

may be required. Discussions among 

MCC, MWI and MOE have defined a 

process for the detailed ESIA that meets 

mutual requirements for evaluating 

environmental and social impacts, 

conducting transparent and inclusive 

public consultations, developing 

detailed management plans and meeting 

expectations for social analysis, 

including gender and social issues and 

resettlement concerns consistent with 

OP 4.12. Estimates for mitigations 

resulting from the ESIA have been 

included in the Multi-Year Financial 

Plan Summary. 

2. Wastewater Network Project 

(a) Summary of Project and Activities. 

The objectives of the wastewater 

network reinforcement and expansion 

project (the ‘‘Wastewater Network 

Project’’) are to (1) Increase access to the 

wastewater network, (2) increase the 

volume of wastewater collected within 

Zarqa Governorate for treatment and 

reuse, and (3) reduce the incidents of 

sewage overflow. The Wastewater 

Network Project is designed to increase 

the carrying capacity of impaired sewer 

main lines, reduce periodic overflows in 

the wastewater collection network, and 

extend lateral sewer lines to urban 

neighborhoods in which populations are 

not currently connected to the 

wastewater collection network. 

The Wastewater Network Project is 

comprised of two Activities: (A) The 

reinforcement of existing networks and 

rehabilitation of existing sewer main 

lines in West Zarqa (the ‘‘West Zarqa 

Pumping Station Zone Activity’’), and 

(B) the reinforcement of existing 

networks and rehabilitation of existing 

sewer main lines in East Zarqa (the 

‘‘East Zarqa Pumping Station Zone 

Activity’’). 

(i) West Zarqa Pumping Station Zone 

Activity. In the West Zarqa zone, MCC 

Funding will support: 

(1) Expanding the lateral sewers by up 

to 102km of pipe for collection systems 

and house connections; 

(2) Reinforcing the network by 

replacing up to 10km of main trunk 

lines and constructing up to 3km of new 

main trunk lines; and 

(3) Rehabilitating existing sewer main 

lines by replacing up to 7km of blocked 

sewers. 

(ii) East Zarqa Pumping Station Zone 

Activity. In the East Zarqa zone, MCC 

Funding will support: 

(1) Expanding the lateral sewers by up 

to 38km of pipe for collection systems 

and house connections; 

(2) Reinforcing the network by 

replacing up to 4km of main trunk lines; 

and 

(3) Rehabilitating existing sewer main 

lines by replacing up to 8km of blocked 

sewers. 

(b) Beneficiaries. 

The Wastewater Network Project will 

provide direct benefits to the residents 

of East Zarqa and West Zarqa, where up 

to 19,000 households, for a total of 

approximately 100,000 people, will 

have opportunities to connect to new 

lateral sewer lines over the next twenty 

years and forego the installation, 

maintenance and potential health risks 

associated with the use of cesspits in an 

urban environment. 

(c) Environmental and Social 

Mitigation Measures. 

The consultant responsible for the 

feasibility study of the Wastewater 

Network Project completed a PESIA in 

May 2010. In the PESIA provided to 

MWI, the consultants recommended a 

Category B classification under the MCC 

Environmental Guidelines and a 

Category 2 classification under 

Jordanian regulations. MWI submitted 

this recommendation, along with a 

project overview and a copy of the 

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PESIA, to MOE for its evaluation of the 

classification under Jordanian law. 

Based on the findings from the PESIA, 

MOE assigned the Project a Category 1 

classification under Jordanian 

regulations. A full, detailed ESIA is 

currently underway. Discussions among 

MCC, MWI and MOE have defined a 

process for the detailed ESIA that meets 

mutual requirements for evaluating 

environmental and social impacts, 

conducting transparent and inclusive 

public consultations, developing 

detailed management plans and meeting 

expectations for social analysis, 

including gender and social issues and 

resettlement concerns consistent with 

OP 4.12. Estimates for mitigations 

resulting from the ESIA have been 

included in the Multi-Year Financial 

Plan Summary. 

3. As-Samra Expansion Project 

(a) Summary of Project and Activities. 

The objectives of the As-Samra 

Wastewater Treatment Plant expansion 

project (the ‘‘As-Samra Expansion 

Project’’) are to (i) Increase the capacity 

to treat wastewater from Amman and 

Zarqa Governorates, (ii) increase the 

volume of treated wastewater that is 

available as a substitute for freshwater 

for non-domestic use, and (iii) protect 

existing agriculture from the potential 

consequences of pollution from 

untreated wastewater. 

MCC Funding for the As-Samra 

Expansion Project will support a portion 

of the cost associated with the 

construction of the expansion of the 

existing As-Samra Wastewater 

Treatment Plant. MCC Funding will also 

support technical assistance for the 

management and supervision of the 

construction. 

The expansion is designed to increase 

the hydraulic capacity of the existing 

treatment plant and its ability to handle 

suspended solids and biological 

materials, among other critical treatment 

requirements. The expanded plant will 

use activated-sludge technology with 

several important characteristics: (1) 

Primary settling, (2) biological treatment 

and clarification, (3) disinfection by 

chlorination, (4) energy recovery from 

treated water, (5) primary and biological 

sludge thickening, (6) sludge digestion 

and biogas energy recovery, (7) digested 

sludge storage, (8) ventilation and odor 

control, and (9) a mechanical 

dewatering process that is designed to 

accelerate decomposition and reduce 

volumes of sludge. The average daily 

hydraulic capacity of the plant is 

expected to increase from 267,000 cubic 

meters per day to 364,800 cubic meters 

per day; the capacity for treating total 

suspended solids (‘‘TSS’’) is expected to 

increase from 147,000 kilograms per day 

to 236,800 kilograms per day; and the 

biological oxygen demand (‘‘BOD5’’) 

capacity is expected to increase from 

174,000 kilograms per day to 232,200 

kilograms per day. The treatment, 

storage and disposal of sludge and the 

quality of the final effluent are required 

to comply at all times with (A) the 

applicable Jordanian standards for 

sludge and for water discharged to 

wadis and catchment areas, and (B) the 

minimum technical requirements under 

the As-Samra Project Agreement. The 

expansion is expected to meet the 

region’s wastewater treatment needs 

through 2025. 

(b) Beneficiaries. 

Together with the Wastewater 

Network Project, the As-Samra 

Expansion Project will benefit 

approximately 375,000 households, for 

a total of 2,020,000 people, in Amman 

and Zarqa Governorates. These 

households will benefit from additional 

supplies of freshwater that can be 

transferred to these areas as these 

Projects make larger volumes of treated 

wastewater available for substitution in 

agricultural applications in the Jordan 

Valley. This includes approximately 

8,500 households in the Jordan Valley, 

for a total of 46,000 people that are 

expected to benefit from consistent 

supplies of high-quality treated 

wastewater that can be used in 

irrigation. 

(c) Environmental and Social 

Mitigation Measures. 

The As-Samra Wastewater Treatment 

Plant is located on land that is owned 

by MWI and located approximately 2km 

from the nearest town, Khirbet AsSamra, and far from other large 

population centers, including Amman 

and Zarqa municipalities. Under the AsSamra Expansion Project, the plant 

operator will develop a detailed ESIA 

that will build upon the 2003 

Environmental Assessment for 

construction of the existing plant. MCC, 

MWI and the plant operator will design 

an approach to the ESIA that meets the 

requirements of the MCC Environmental 

Guidelines, the International Finance 

Corporation’s Performance Standards on 

Social & Environmental Sustainability, 

dated April 30, 2006 (‘‘IFC Performance 

Standards’’), and applicable Jordanian 

environmental protection laws. 

The ESIA will define any necessary 

augmentations to current practices in 

place for monitoring odor, noise, water 

quality, heavy metal accumulation and 

disease vectors, especially those 

induced by sludge, as required under 

the existing environmental management 

plan. 

The ESIA will also define an effective 

plan that clearly sets forth the roles, 

responsibilities and costs associated 

with the management and disposal of 

large volumes of sludge in order to 

improve the current practice of storing 

sludge in stabilization ponds that are 

present on the project site. These 

stabilization ponds are expected to be 

filled within eight to ten years. The 

sludge treatment, storage and disposal 

plan will accord with Jordanian law 

(including applicable Jordanian 

standards) and the MCC Environmental 

Guidelines. 

The project site includes sufficient 

unused adjacent land for the proposed 

expansion. For this reason, there are no 

issues of land acquisition or 

resettlement and only limited social 

impacts associated with the 

construction and operation of the plant. 

4. Donor Coordination. 

In relation to the Water Network 

Project, the Government and MCC 

coordinated closely with Germany’s 

Deutsche Gesellschaft fu ̈r Technische 

Zusammenarbeit (‘‘GTZ’’) and 

Kreditanstalt fu ̈r Wiederaufbau (‘‘KfW’’). 

MCC leveraged the ongoing work of 

KfW and GTZ in Zarqa, particularly in 

two principal areas of Compact 

development: (a) Scoping and detailing 

specific works in Zarqa based on their 

experiences, and (b) undertaking 

preliminary financial analysis of Zarqa 

water and wastewater operations. KfW 

and GTZ are currently active in meter 

replacement and network rehabilitation 

in Al-Gweireyeh and also have a major 

project to develop detailed GIS tools for 

operations and management of the water 

systems in Zarqa Governorate. Early 

outputs from this GIS system served as 

useful inputs to the feasibility study for 

the Water Network Project. 

The Program will complement other 

current and potential work by other 

donors including but not limited to 

(i) the Japan International Cooperation 

Agency’s project to improving the water 

supply for the Zarqa WSA, which 

includes restructuring of the primary 

and secondary water supply and 

distribution system in the areas of 

Zarqa, Ruseifa, Hashmeya, Sukhna and 

Awajan through construction of new 

storage and distribution reservoirs, 

transmission pipelines, pumping 

stations and rising mains, and 

disinfection facilities; (ii) China’s 

project to replace water networks within 

the Ruseifa Low distribution area; and 

(iii) the European Union’s project to 

improve the water supply network in 

the areas of Zarqa, Al-Gweireyeh, 

Awajan, Ruseifa, Bani Hashem and 

Dogara. 

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In relation to the As-Samra Expansion 

Project, the Swedish International 

Development Agency provided 

technical assistance to MWI to structure 

and tender the financial arrangements 

for the original As-Samra Wastewater 

Treatment Plant, as well as loans and 

grants to assist MWI in supervising the 

construction of the existing plant and its 

initial operations period through 

February 2010. The Project benefits 

from the lessons learned in financing 

and constructing the existing plant. 

5. USAID 

The United States Agency for 

International Development (‘‘USAID’’) 

has been active in the water sector in 

Jordan for many years and has funded 

and executed projects throughout the 

country. MCC has collaborated and 

coordinated closely with USAID on 

sector policy, particularly with respect 

to Jordan’s National Water Strategy and 

tariff scenarios. USAID is funding a 

project to develop a comprehensive 

water and wastewater infrastructure 

master plan, and to support studies 

related to wastewater infrastructure 

improvements in several areas in 

Jordan, including Zarqa Governorate. 

MCC will continue to liaise with 

USAID. 

For the As-Samra Expansion Project, 

USAID provided a grant for the 

construction of the existing As-Samra 

Wastewater Treatment Plant. 

6. Sustainability 

The Water Authority of Jordan 

(‘‘WAJ’’), through its Zarqa 

administrative unit, is currently 

responsible for the operation and 

maintenance of water supply and 

wastewater collection infrastructure in 

Zarqa Governorate. The Water Network 

Project is expected to provide additional 

operating revenues within the Zarqa 

administrative unit of WAJ by 

increasing collections as a result of 

reduced water losses and thus delivery 

of higher volumes of water to end-users. 

The Wastewater Network Project is 

expected to increase the number of 

households that subscribe to WAJ 

wastewater collection services, thereby 

increasing collection of service fees. 

In addition, WAJ plans to reorganize 

the Zarqa administrative unit of WAJ. 

This is expected to increase the 

efficiency of operations and further 

improve the financial situation for the 

Zarqa administrative unit. 

When MWI becomes responsible for 

additional treatment charges payable 

under the As-Samra Expansion Project, 

the burden of these treatment charges 

may worsen the financial position of the 

water companies in Amman and Zarqa 

Governorates, collections from which 

will support the payment of the 

treatment charges. The Government has 

agreed to deliver plans to (a) fully fund 

these treatment charges, and (b) ensure 

projected revenues fully fund projected 

operations and maintenance costs of the 

water and wastewater network in Zarqa 

Governorate no later than 2015. 

C. Implementation Framework 

1. Overview 

The implementation framework and 

the plan for ensuring adequate 

governance, oversight, management, 

monitoring and evaluation, and fiscal 

accountability for the use of MCC 

Funding are summarized below. MCC 

and the Government will enter into the 

Program Implementation Agreement, 

and any other agreements in furtherance 

of this Compact, all of which, together 

with this Compact, set out certain rights, 

responsibilities, duties and other terms 

relating to the implementation of the 

Program. 

2. MCC 

MCC will take all appropriate actions 

to carry out its responsibilities in 

connection with this Compact and the 

Program Implementation Agreement, 

including the exercise of its approval 

rights in connection with the 

implementation of the Program. 

3. MCA-Jordan 

MCA-Jordan was established by the 

Government as the accountable entity. It 

is a limited liability company wholly 

owned by the Government and was 

registered on June 29, 2010, as the 

Millennium Challenge Account—Jordan 

Limited Liability Company, in 

accordance with the Jordanian 

Companies Law. This arrangement 

allows MCA-Jordan the independence to 

enter into contracts, manage its own 

finances, and hire staff outside of the 

standard civil service system. In 

accordance with Section 3.2(b) of this 

Compact and Section 1.3(a) of the 

Program Implementation Agreement, 

MCA-Jordan will act on the 

Government’s behalf to implement the 

Program and to exercise and perform the 

Government’s rights and responsibilities 

with respect to the oversight, 

management, monitoring and 

evaluation, and implementation of the 

Program, including, without limitation, 

managing the implementation of 

Projects and their Activities, allocating 

resources, and managing procurements. 

The Government will ensure that MCAJordan takes all appropriate actions to 

implement the Program, including the 

exercise and performance of the rights 

and responsibilities designated to it by 

the Government pursuant to this 

Compact and the Program 

Implementation Agreement. Without 

limiting the foregoing, the Government 

will also ensure that MCA-Jordan has 

full decision-making autonomy, 

including, inter alia, the ability, without 

consultation with, or the consent or 

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

into contracts in its own name; (ii) sue 

and be sued; (iii) establish an account in 

a financial institution in the name of 

MCA-Jordan and hold MCC Funding in 

that account; (iv) expend MCC Funding; 

(v) engage a fiscal agent who will act on 

behalf of MCA-Jordan on terms 

acceptable to MCC; (vi) engage a 

procurement agent who will act on 

behalf of MCA-Jordan, on terms 

acceptable to MCC, to manage the 

acquisition of the goods, works, and 

services required by MCA-Jordan to 

implement the activities funded by this 

Compact; and (vii) competitively engage 

one or more auditors to conduct audits 

of its accounts. The Government will 

take the necessary actions to manage 

and operate MCA-Jordan, in accordance 

with the applicable conditions 

precedent to the disbursement of 

Compact Implementation Funding set 

forth in Annex IV to this Compact. 

In accordance with Articles of 

Association and Memorandum of 

Association of MCA-Jordan, (the 

‘‘Bylaws’’), MCA-Jordan will consist of 

the following bodies: (1) A board of 

directors (the ‘‘Board’’), (2) a 

management team (the ‘‘Management 

Unit’’), (3) a stakeholders committee (the 

‘‘Stakeholders Committee’’), and (4) the 

general shareholders assembly (the 

‘‘General Assembly’’). The governance of 

MCA-Jordan is set forth in more detail 

in the Program Implementation 

Agreement and the Bylaws, which will, 

collectively, set forth the 

responsibilities of the Board, 

Management Unit and Stakeholders 

Committee. The Bylaws were developed 

and adopted in accordance with the 

Governance Guidelines. 

(a) Board 

(i) Composition. The Board is initially 

comprised of the following seven 

members, including four Government 

members and three representatives from 

civil society and private sector 

organizations: (1) Secretary General, 

Ministry of Planning and International 

Cooperation; (2) Secretary General, 

WAJ; (3) Secretary General, MOE; (4) 

Secretary General, Ministry of 

Municipalities; (5) a nominee from the 

General Federation of Jordanian 

Women; (6) a nominee from the 

Jordanian Hashemite Fund for Human 

Development; and (7) a nominee from 

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the Zarqa Chamber of Commerce. The 

Chief Executive Officer (the ‘‘CEO’’) of 

MCA-Jordan and an MCC representative 

will serve as non-voting observers. 

(ii) Roles and Responsibilities. The 

Board is responsible for the oversight, 

direction, and decisions of MCA-Jordan, 

as well as the overall implementation of 

the Program. The Board will hold 

regular meetings, at a minimum once 

per quarter. 

(b) Management Unit. 

(i) Composition. The Management 

Unit will initially include eleven key 

officers, as follows: (1) CEO, (2) Deputy 

CEO for Administration, (3) Deputy CEO 

for Project Management, (4) Finance 

Director, (5) Procurement Director, (6) 

Legal Director, (7) Environment and 

Social Assessment Director, (8) 

Monitoring and Evaluation Director, (9) 

Director for the Water Network Project, 

(10) Director for the Wastewater 

Network Project, and (11) Director for 

the As-Samra Expansion Project. These 

key officers will be supported by 

appropriate additional staff to enable 

the Management Unit to execute its 

roles and responsibilities. 

(ii) Roles and Responsibilities. With 

oversight from the Board, the 

Management Unit will have the 

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

including those roles and 

responsibilities specifically set forth in 

the Program Implementation Agreement 

and the Bylaws. The Management Unit 

will serve as the principal link between 

MCC and the Government, and will be 

accountable for the successful execution 

of the Program, each Project, and each 

Activity. MCA-Jordan will be subject to 

the audit requirements under Jordanian 

Companies Law. As a recipient of MCC 

Funding, MCA-Jordan will also be 

subject to MCC audit requirements. 

(c) Stakeholders Committee. 

(i) Composition. The Stakeholders 

Committee will provide input to the 

Board and the Management Unit on 

matters that relate to the Program, 

promoting transparency and ongoing 

consultation. The size, composition, and 

manner of selection of members of the 

Stakeholders Committee are subject to 

ongoing discussions between the 

Government and MCC, and will be 

dictated by the project areas of the 

Program. Membership will at least 

reflect the NGOs, private sector, civil 

society, and local and regional 

governments that were consulted by the 

Government in developing its proposal 

for the Compact. 

(ii) Roles and Responsibilities. 

Consistent with the Governance 

Guidelines, the Stakeholders Committee 

will continue the consultative process 

throughout implementation of the 

Program. While the Stakeholders 

Committee will not have any decisionmaking authority, it will, among other 

things, review, at the request of the 

Board or the Management Unit, certain 

reports, agreements, and documents 

related to the implementation of the 

Program in order to provide input to 

MCA-Jordan regarding the 

implementation of the Program. 

(d) General Assembly. 

(i) Composition. The General 

Assembly of MCA-Jordan will be 

comprised of all shareholders of MCAJordan. The Government is the sole 

shareholder of MCA-Jordan. 

(ii) Roles and Responsibilities. The 

General Assembly will hold one annual 

meeting during the first four months of 

MCA-Jordan’s fiscal year and fulfill all 

obligations under applicable Jordanian 

law. 

4. Implementing Entities 

Subject to the terms and conditions of 

this Compact, the Program 

Implementation Agreement, and any 

other related agreement entered into in 

connection with this Compact, the 

Government, through MCA-Jordan, may 

engage one or more entities of the 

Government to implement and carry out 

any Project or Activity (or a component 

thereof) in furtherance of this Compact 

(each, an ‘‘Implementing Entity’’). The 

appointment of any Implementing 

Entity will be subject to review and 

approval by MCC. The Government will 

ensure that the roles and responsibilities 

of each Implementing Entity and other 

appropriate terms are set forth in an 

agreement, in form and substance 

satisfactory to MCC (each an 

‘‘Implementing Entity Agreement’’). 

5. Fiscal Agent 

The Government, through MCAJordan, will appoint a fiscal agent (a 

‘‘Fiscal Agent’’) which will be 

responsible for assisting the 

Government with its fiscal management 

and assuring appropriate fiscal 

accountability of MCC Funding, and 

whose duties will include those set 

forth in the Program Implementation 

Agreement and such agreement as MCAJordan enters into with the Fiscal Agent, 

which agreement will be in form and 

substance satisfactory to MCC. 

6. Procurement Agent 

The Government, through MCAJordan, will appoint a procurement 

agent (the ‘‘Procurement Agent’’) to carry 

out and certify specified procurement 

activities in furtherance of this 

Compact. The roles and responsibilities 

of the Procurement Agent will be set 

forth in the Program Implementation 

Agreement or such agreement as the 

Government enters into with the 

Procurement Agent, which agreement 

will be in form and substance 

satisfactory to MCC. The Procurement 

Agent will adhere to the procurement 

standards set forth in the MCC Program 

Procurement Guidelines and ensure 

procurements are consistent with the 

procurement plan adopted by the 

Government pursuant to the Program 

Implementation Agreement, unless MCC 

agrees otherwise in writing. 

Annex II Multi-Year Financial Plan 

Summary 

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

1. General 

A multi-year financial plan summary 

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

is attached hereto as Exhibit A to this 

Annex II. By such time as specified in 

the Program Implementation 

Agreement, the Government will adopt, 

subject to MCC approval, a multi-year 

financial plan that includes, in addition 

to the multi-year summary of estimated 

MCC Funding and the Government’s 

contribution of funds and resources, the 

annual and quarterly funding 

requirements for the Program (including 

administrative costs) and for each 

Project, projected both on a commitment 

and cash requirement basis. 

2. Government LMIC Contribution 

During the Compact Term, the 

Government will make contributions, 

relative to its national budget and taking 

into account prevailing economic 

conditions, as are necessary to carry out 

the Government’s responsibilities under 

Section 2.6(a) of this Compact. These 

contributions may include in-kind and 

financial contributions (including 

obligations of Jordan on any debt 

incurred toward meeting these 

contribution obligations). In connection 

with this obligation the Government has 

developed a budget over the Compact 

Term to complement MCC Funding 

through budget allocations to water and 

wastewater projects, management 

contracts and institutional support in 

Zarqa Governorate. The Government 

anticipates making contributions from 

its national budget of approximately 

US$73,700,000 over the Compact Term. 

Such contribution will be in addition to 

the Government’s spending allocated 

toward such Project Objectives in its 

budget for the year immediately 

preceding the establishment of this 

Compact. The Government’s 

contribution will be subject to any legal 

requirements in Jordan for the budgeting 

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1Poverty Baselines are from the Department of 

Statistics ‘‘The Status Report of Poverty in Jordan: 

Based on Household Income and Expenditure 

Survey 2008’’ (Arabic); July 12, 2010. As of July 

2010, Jordan did not have a current poverty target 

using its official poverty rate. 

and appropriation of such contribution, 

including approval of the Government’s 

annual budget by its legislature. The 

Parties may set forth in appropriate 

supplemental agreements certain 

requirements regarding this Government 

contribution, which requirements may 

be conditions precedent to the 

Disbursement of MCC Funding. 

Exhibit A Multi-Year Financial Plan 

Summary 

MULTI-YEAR FINANCIAL PLAN SUMMARY

[US$ millions] 

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

Water Network Project 

Infrastructure Activity 

Water Smart Homes Activity 

Sub-Total ...................................................................... 0 13.09 28.52 36.04 20.76 4.16 102.57 

2. Wastewater Network Project 

Sub-Total ...................................................................... 0 6.70 16.20 20.67 12.82 1.83 58.22 

3. As-Samra Expansion Project 

Sub-Total ...................................................................... 0.63 17.92 45.28 26.00 3.20 0.00 93.03 

4. Monitoring and Evaluation (M&E) 

Monitoring and Evaluation 

Sub-Total ............................................................... 0.03 0.69 0.04 0.72 0.52 0.81 2.81 

5. Program Administration and Audit 

MCA-Jordan 

Fiscal Agent 

Procurement Agent 

Audit 

Sub-Total ............................................................... 1.46 3.39 3.40 3.40 3.41 3.41 18.47 

Grand Total .................................................... 2.12 41.79 93.44 86.83 40.71 10.21 275.10 

Annex III Description of Monitoring 

and Evaluation Plan 

This Annex III generally describes the 

components of the monitoring and 

evaluation plan (‘‘M&E Plan’’) for the 

Program. The actual content and form of 

the M&E Plan will be agreed to by MCC 

and the Government in accordance with 

MCC’s Policy for Monitoring and 

Evaluation of Compacts and Threshold 

Programs posted from time to time on 

the MCC Web site (the ‘‘MCC Policy for 

Monitoring and Evaluation of Compacts 

and Threshold Programs’’). The M&E 

Plan may be modified from time to time 

with MCC approval without requiring 

an amendment to this Annex III. 

1. Overview 

MCC and the Government will 

formulate and agree to, and the 

Government will implement or cause to 

be implemented, an M&E Plan that 

specifies (a) how progress toward the 

Compact Goal, Program Objective and 

Project Objectives will be monitored, 

(‘‘Monitoring Component’’); (b) a process 

and timeline for the monitoring of 

planned, ongoing, or completed 

Activities to determine their efficiency 

and effectiveness; and (c) a methodology 

for assessment and rigorous evaluation 

of the outcomes and impact of the 

Program (‘‘Evaluation Component’’). 

Information regarding the Program’s 

performance, including the M&E Plan, 

and any amendments or modifications 

thereto, as well as progress and other 

reports, will be made publicly available 

on the Web site of MCA-Jordan and 

elsewhere. 

2. Program Logic 

The M&E Plan will be built on a logic 

model which illustrates how the 

Program, Projects and Activities 

contribute to the Compact Goal, the 

Program Objective and the Project 

Objectives. 

3. Monitoring Component 

To monitor progress toward the 

achievement of the impact and 

outcomes, the Monitoring Component of 

the M&E Plan will identify (i) The 

Indicators (as defined below), (ii) the 

definitions of the Indicators, (iii) the 

sources and methods for data collection, 

(iv) the frequency for data collection, 

(v) the party or parties responsible, and 

(vi) the timeline for reporting on each 

Indicator to MCC. 

Further, the Monitoring Component 

will track changes in the selected 

Indicators for measuring progress 

towards the achievement of the 

objectives during the Compact Term. 

The M&E Plan will establish baselines 

which measure the situation prior to a 

development intervention, against 

which progress can be assessed or 

comparisons made (each a, ‘‘Baseline’’). 

The Government will collect Baselines 

on the selected Indicators or verify 

already collected Baselines where 

applicable and as set forth in the M&E 

Plan. 

(a) Indicators. The M&E Plan will 

measure the results of the Program using 

quantitative, objective and reliable data 

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

benchmarks that specify the expected 

value and the expected time by which 

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

All Indicators will be disaggregated by 

gender, income level and age, and 

beneficiary types to the extent 

practicable. Subject to prior written 

approval from MCC, the Government 

may add Indicators or refine the 

definitions and Targets of existing 

Indicators. 

(i) Compact Indicators. 

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

the following Indicators related to the 

Compact Goal and based on national 

statistics. The Program will contribute 

to progress against poverty nationwide 

by contributing to a reduction of the 

poverty rate in Zarqa Governorate, but 

the results are attributable to many 

factors in the economy: 

(A) Official poverty rate nationwide: 

13.3 percent in 2008; and 

(B) Official poverty rate in Zarqa 

Governorate: 11.2 percent in 2008.1

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2The baseline figure refers to all of urban Zarqa. 

The target will be measured only against areas 

planned for assistance under the Compact. If the 

update to the baseline survey reveals a significant 

difference between the figure for all of urban Zarqa 

and the areas planned for assistance under the 

Compact, an adjustment to the baseline and target 

will be noted in the M&E Plan ensuring that the 

magnitude of the improvement by Year 5 remains 

consistent with that of the Compact. 

3 Ibid. 

4 In order to conform to MCC’s Common 

Indicators, this indicator will be supplemented after 

the next baseline study with ‘‘Average number of 

days of work lost by adult household members in 

last 2 weeks due to a water borne illness + Average 

number of days of school lost by school-age 

children in past 2 weeks due to water borne 

illness.’’ 

5The baseline figure refers to all of urban Zarqa. 

The target will be measured only against areas 

planned for assistance under the Compact. If the 

update to the baseline survey reveals a significant 

difference between the figure for all of urban Zarqa 

and the areas planned for assistance under the 

Compact, an adjustment to the baseline and target 

will be noted in the M&E Plan ensuring that the 

magnitude of the improvement by Year 5 remains 

consistent with that of the Compact. 

6 Ibid. 

(2) Objective and Outcome Indicators. 

The M&E Plan will contain the 

Indicators listed in the following tables. 

TABLE 1—COMPACT PROGRAM OBJECTIVE INDICATORS

Result Indicator Definition Baseline 

value Year 5 

Program Objective Level: Cross-Cutting Results 

Effective supply of water increased through 

improvement in water delivery, extension 

of waste-water collection, and expansion 

in waste-water treatment.

Network water consumption per capita 

(residential and 

non-residential).

For Zarqa Governorate: [Annual billed residential and non-residential (in m3)]/[population of governorate] * 1000/365 (l/c/d).65 96 

Total residential water 

consumption.

Billed residential network water consumption + tankers, treatment shops, and bottled water (l/c/d).62 89 

TABLE 2—WATER NETWORK PROJECT OBJECTIVE AND OUTCOME INDICATORS

Result Indicator Definition Baseline 

value Year 5 

Objective Level 

Decrease cost to households of meeting 

subsistence water needs.

Use of tanker water .. Annual average quantity of tanker water 

consumed per person (l/c/d) in Water 

Network Project areas.2

4.7 1.2 

Use of treatment 

shop water.

Annual average quantity of treatment shop 

water consumed per person (l/c/d) in 

Water Network Project areas.3

0.4 0.2 

Prevalence of waterborne disease.Percent of children under age five who had 

disrrhea in the two weeks preceding the 

survey.4

9% 7% 

Improve efficiency of network water delivery Dissatisfaction with 

supply service.

Percent of water utility customers ‘‘very dissatisfied’’ or ‘‘quite dissatisfied’’ with frequency, duration, and pressure of supply 

(average of the three dimensions) in 

Water Network Project areas 5 Dissatisfaction with water quality.

34% 26% 

Dissatisfaction with 

water quality.

O=’xl’Percent of water utility customers 

‘‘very dissatisfied’’ or ‘‘quite dissatisfied’’ 

with potability of network water in Water 

Network Project areas.6.

60% 40% 

Outcome Level 

Improve efficiency of network water delivery Non-revenue water 

as % of 

Governorate system input.

Difference between water supplied including 

water imported and water sold including 

exported (i.e., volume of water ‘‘lost’’) expressed as a percentage of water supplied including water imported. [(Production + Imports) ¥ (Exports + Accounted 

Water)]/(Production + Imports).

47% 35% 

Continuity of supply 

time.

Hours of supply/week (during the summer).7 36 70 

Condition of household water systems improved.Households cleaning 

their water storage 

facilities.

Percent of households cleaning their domestic water storage facilities in Water 

Smart Homes Activity area.8

56% 65% 

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7 Ibid. 

8 Ibid. 

9 If during the Compact Term sewage blockages 

become part of the GIS database, this indicator 

should be updated to better measure blockages by 

type and location. 

10 ‘‘Treated wastewater’’ includes rainwater runoff 

mixed with treated wastewater in King Talal Dam 

reservoir. 

TABLE 3—WASTEWATER NETWORK PROJECT OBJECTIVE AND OUTCOME INDICATORS

Result Indicator Definition Baseline 

value Year 5 

Objective Level 

Incidents of sewage overflow reduced .......... Sewer blockage 

events.

Annual number of blockages that occurred 

in sewers network (pumping station 

blockages shall not be included).9

8,500 2,000 

Outcome Level 

Quantity of wastewater collected from Zarqa 

Governorate increased.

Volume of wastewater collected.Total volume of wastewater collected 

through the sewer system and pumped 

via West Zarqa and East Zarqa pumping 

stations (million cubic meters/year).

24 31 

Access to wastewater network increased ..... Residential population 

connected to the 

sewer system.

Zarqa Governorate wastewater subscribers 

as a percent of water subscribers.

72% 82% 

TABLE 4—THE AS-SAMRA EXPANSION PROJECT OBJECTIVE AND OUTCOME INDICATORS

Result Indicator Definition Baseline 

value Year 5 

Objective Level 

Substitution of freshwater for treated wastewater increased.Treated wastewater 

used in agriculture.

Treated wastewater 10 used for irrigation in 

Northern and Middle Jordan Valley as a 

percent of all water used for irrigation in 

Northern and Middle Jordan Valley.

61 70 

Outcome Level 

Existing agriculture protected from untreated 

wastewater.

Quality of As-Samra 

effluent meets 

standard.

Number of days during the past quarter 

when effluent does not meet the applicable standard set out in the As-Samra 

Project Agreement.

0 0 

Quantity of treated wastewater for agriculture use and substitution increased.Volume of waste 

water effluent discharged from the 

As-Samra plant.

Annual volume of wastewater treated to at 

least secondary level (measured as annual volume of wastewater effluent discharged from the As-Samra plant, million 

cubic meters per year).

65 99 

Agriculture use of 

treated wastewater.

Agriculture land in the Middle and Northern 

Jordan Valley using treated wastewater 

for at least part of their irrigation water 

(1,000 hectares).

13.7 15.9 

(b) Data Collection and Reporting. The 

M&E Plan will establish guidelines for 

data collection and reporting, and 

identify the responsible parties. 

Compliance with data collection and 

reporting timelines will be conditions 

for Disbursements for the relevant 

Activities as set forth in the Program 

Implementation Agreement. The M&E 

Plan will specify the data collection 

methodologies, procedures, and analysis 

required for reporting on results at all 

levels. The M&E Plan will describe any 

interim MCC approvals for data 

collection, analysis, and reporting plans. 

(c) Data Quality Reviews. As 

determined in the M&E Plan or as 

otherwise requested by MCC, the quality 

of the data gathered through the M&E 

Plan will be reviewed to ensure that 

data reported are as valid, reliable, and 

timely as resources will allow. The 

objective of any data quality review will 

be to verify the quality and the 

consistency of performance data across 

different implementation units and 

reporting institutions. Such data quality 

reviews also will serve to identify where 

those levels of quality are not possible, 

given the realities of data collection. 

(d) Management Information System. 

The M&E Plan will describe the 

information system that will be used to 

collect data, store, process and deliver 

information to relevant stakeholders in 

such a way that the Program 

information collected and verified 

pursuant to the M&E Plan is at all times 

accessible and useful to those who wish 

to use it. The system development will 

take into consideration the requirement 

and data needs of the components of the 

Program, and will be aligned with 

existing MCC systems, other service 

providers, and ministries. 

(e) Role of MCA-Jordan. The 

monitoring and evaluation of this 

Compact spans three Projects and will 

involve a variety of governmental, 

nongovernmental, and private sector 

institutions. In accordance with the 

designation contemplated by Section 

3.2(b) of this Compact, MCA-Jordan is 

responsible for implementation of the 

M&E Plan. MCA-Jordan will oversee all 

Compact-related monitoring and 

evaluation activities conducted for each 

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of the Projects, ensuring that data from 

all implementing entities is consistent, 

accurately reported and aggregated into 

regular Compact performance reports as 

described in the M&E Plan. 

4. Evaluation Component 

The Evaluation Component of the 

M&E Plan will contain three types of 

evaluations: (i) Impact evaluations, (ii) 

project performance evaluations, and 

(iii) special studies. The Evaluation 

Component of the M&E Plan will 

describe the purpose of the evaluation, 

methodology, timeline, required MCC 

approvals, and the process for collection 

and analysis of data for each evaluation. 

The results of all evaluations will be 

made publicly available in accordance 

with MCC’s Policy for Monitoring and 

Evaluation of Compacts and Threshold 

Programs. 

(a) Impact Evaluation. The M&E Plan 

will include a description of the 

methods to be used for impact 

evaluations and plans for integrating the 

evaluation method into Project design. 

Based on in-country consultation with 

stakeholders, the strategies outlined 

below were jointly determined as 

having the strongest potential for 

rigorous impact evaluation. The M&E 

Plan will further outline in detail these 

methodologies. Final impact evaluation 

strategies are to be included in the M&E 

Plan. The following is a summary of the 

potential impact evaluation 

methodologies: 

(i) Water Network Project/ 

Infrastructure Investment Activity. The 

evaluation will focus on determining 

both household level impacts as well as 

benefits to the water utility. The 

household level impacts of interest 

include reduced expenditures on water 

scarcity coping mechanisms such as use 

of tanker and treatment shop water. 

Health outcomes will also be examined. 

The impact is expected to be 

determined through quasi-experimental 

techniques comparing the beneficiary 

households to households in similar 

circumstances outside the project areas. 

The institutional level impacts such as 

reduced operating costs may be 

determined through financial and 

operations modeling of with and 

without project scenarios. The without 

project assumptions would be drawn 

from utility performance prior to the 

intervention as well as concurrent 

performance of other comparable water 

utilities in Jordan. 

(ii) Water Network Project/WSH 

Activity. The evaluation will look at the 

changes in (1) maintenance/cleaning of 

home water systems, (2) the impact on 

household use of expensive alternative 

sources of water, and (3) the incidence 

of certain waterborne diseases. The 

primary methodology expected is 

propensity score matching. In the case 

of over-subscription to the subcomponent of household water system 

rehabilitation, an element of 

randomized award of benefits among 

eligible beneficiaries will be considered. 

(iii) Wastewater Network Project. The 

evaluation will include an analysis of 

the health benefits achieved, 

particularly reduction in waterborne 

disease. The methodology is expected to 

employ quasi-experimental techniques 

comparing beneficiary households 

(those near rehabilitated mains or newly 

connected to the network) with nonbeneficiary households. 

(b) Final Evaluation. The M&E Plan 

will make provision for final Project 

level evaluations (‘‘Final Evaluations’’). 

With the prior written approval of MCC, 

the Government will engage 

independent evaluators to conduct the 

Final Evaluations at the end of each 

Project. The Final Evaluations will 

review progress during Compact 

implementation and provide a 

qualitative context for interpreting 

monitoring data and impact evaluation 

findings. They must at a minimum (1) 

Evaluate the efficiency and effectiveness 

of the Activities; (2) determine if and 

analyze the reasons why the Compact 

Goal, Program Objective and Project 

Objective(s), outcome(s) and output(s) 

were or were not achieved; (3) identify 

positive and negative unintended 

results of the Program; (4) provide 

lessons learned that may be applied to 

similar projects; and (5) assess the 

likelihood that results will be sustained 

over time. 

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

include a description of the methods to 

be used for special studies, as necessary, 

funded through this Compact or by 

MCC. Plans for conducting the special 

studies will be determined jointly 

between the Government and MCC 

before the approval of the M&E Plan. 

The M&E Plan will identify and make 

provision for any other special studies, 

ad hoc evaluations, and research that 

may be needed as part of the monitoring 

and evaluating of this Compact. Either 

MCC or the Government may request 

special studies or ad hoc evaluations of 

Projects, Activities, or the Program as a 

whole prior to the expiration of the 

Compact Term. When the Government 

engages an evaluator, the engagement 

will be subject to the prior written 

approval of MCC. Contract terms must 

ensure non-biased results and the 

publication of results. 

(c) Request for Ad Hoc Evaluation or 

Special Study. If the Government 

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 Activity or to seek 

funding from other donors, no MCC 

Funding resources may be applied to 

such evaluation or special study 

without MCC’s prior written approval. 

5. Other Components of the M&E Plan 

In addition to the monitoring and 

evaluation components, the M&E Plan 

will include the following components 

for the Program, Projects and Activities, 

including, where appropriate, roles and 

responsibilities of the relevant parties 

and providers: 

(a) Costs. A detailed cost estimate for 

all components of the M&E Plan; and 

(b) Assumptions and Risks. Any 

assumption or risk external to the 

Program that underlies the 

accomplishment of the Program 

Objective, Project Objectives and 

Activity outcomes and outputs. 

However, such assumptions and risks 

will not excuse any Party’s performance 

unless otherwise expressly agreed to in 

writing by the other Party. 

6. Approval and Implementation of the 

M&E Plan 

The approval and implementation of 

the M&E Plan, as amended from time to 

time, will be in accordance with the 

Program Implementation Agreement, 

any other relevant Supplemental 

Agreement and the MCC Policy for 

Monitoring and Evaluation of Compacts 

and Threshold Programs. 

Annex IV Conditions Precedent to 

Disbursement of Compact 

Implementation Funding 

This Annex IV sets forth the 

conditions precedent applicable to 

Disbursements of Compact 

Implementation Funding (each a ‘‘CIF 

Disbursement’’). Capitalized terms used 

in this Annex IV and not defined in this 

Compact will have the respective 

meanings assigned thereto in the 

Program Implementation Agreement. 

Upon execution of the Program 

Implementation Agreement, each CIF 

Disbursement will be subject to the 

terms of the Program Implementation 

Agreement. 

1. Conditions Precedent to Initial CIF 

Disbursement 

Each of the following must have 

occurred or been satisfied prior to the 

initial CIF Disbursement: 

(a) The Government (or MCA-Jordan) 

has delivered to MCC: 

(i) An interim fiscal accountability 

plan acceptable to MCC; and 

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(ii) A CIF procurement plan 

acceptable to MCC. 

2. Conditions Precedent to all CIF 

Disbursements (Including Initial CIF 

Disbursement) 

Each of the following must have 

occurred or been satisfied prior to each 

CIF Disbursement: 

(a) The Government (or MCA-Jordan) 

has delivered to MCC the following 

documents, in form and substance 

satisfactory to MCC: 

(i) A completed Disbursement 

Request, together with the applicable 

Periodic Reports, for the applicable 

Disbursement Period, all in accordance 

with the Reporting Guidelines; 

(ii) A certificate of MCA-Jordan, dated 

as of the date of the CIF Disbursement 

Request, in such form as provided by 

MCC; 

(iii) If a Fiscal Agent has been 

engaged, a Fiscal Agent Disbursement 

Certificate; and 

(iv) If a Procurement Agent has been 

engaged, a Procurement Agent 

Disbursement Certificate. 

(b) If any proceeds of the CIF 

Disbursement are to be deposited in a 

bank account, MCC has received 

satisfactory evidence that (i) the Bank 

Agreement has been executed, and 

(ii) the Permitted Accounts have been 

established. 

(c) Appointment of an entity or 

individual to provide fiscal agent 

services, as approved by MCC, until 

such time as the Government provides 

to MCC a true and complete copy of a 

Fiscal Agent Agreement, duly executed 

and in full force and effect, and the 

Fiscal Agent engaged thereby is 

mobilized. 

(d) Appointment of an entity or 

individual to provide procurement 

agent services, as approved by MCC, 

until such time as the Government 

provides to MCC a true and complete 

copy of the Procurement Agent 

Agreement, duly executed and in full 

force and effect, and the Procurement 

Agent engaged thereby is mobilized. 

(e) MCC is satisfied, in its sole 

discretion, that (i) The activities being 

funded with such CIF Disbursement are 

necessary, advisable or otherwise 

consistent with the goal of facilitating 

the implementation of the Compact and 

will not violate any applicable law or 

regulation; (ii) no material default or 

breach of any covenant, obligation or 

responsibility by the Government, MCAJordan or any Government entity has 

occurred and is continuing under this 

Compact or any other Supplemental 

Agreement; (iii) there has been no 

violation of, and the use of requested 

funds for the purposes requested will 

not violate, the limitations on use or 

treatment of MCC Funding set forth in 

Section 2.7 of this Compact or in any 

applicable law or regulation; (iv) any 

Taxes paid with MCC Funding through 

the date 90 days prior to the start of the 

applicable Disbursement Period have 

been reimbursed by the Government in 

full in accordance with Section 2.8(c) of 

this Compact; and (v) the Government 

has satisfied all of its payment 

obligations, including any insurance, 

indemnification, tax payments or other 

obligations, and contributed all 

resources required from it, under this 

Compact and any other Supplemental 

Agreement. 

(f) For any CIF Disbursement 

occurring after this Compact has entered 

into force in accordance with Article 7: 

MCC is satisfied, in its sole discretion, 

that (i) MCC has received copies of any 

reports due from any technical 

consultants (including environmental 

auditors engaged by MCA-Jordan) for 

any Activity since the previous 

Disbursement Request, and all such 

reports are in form and substance 

satisfactory to MCC; (ii) the 

Implementation Plan Documents and 

Fiscal Accountability Plan are current 

and updated and are in form and 

substance satisfactory to MCC, and there 

has been progress satisfactory to MCC 

on the components of the 

Implementation Plan for any relevant 

Projects or Activities related to such CIF 

Disbursement; (iii) there has been 

progress satisfactory to MCC on the 

M&E Plan and Social and Gender 

Integration Plan for the Program or 

relevant Project or Activity and 

substantial compliance with the 

requirements of the M&E Plan and 

Social and Gender Integration Plan 

(including the targets set forth therein 

and any applicable reporting 

requirements set forth therein for the 

relevant Disbursement Period); (iv) there 

has been no material negative finding in 

any financial audit report delivered in 

accordance with this Compact and the 

Audit Plan, for the prior two quarters (or 

such other period as the Audit Plan may 

require); (v) MCC does not have grounds 

for concluding that any matter certified 

to it in the related MCA Disbursement 

Certificate, the Fiscal Agent 

Disbursement Certificate or the 

Procurement Agent Disbursement 

Certificate is not as certified; and (vi) if 

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

and the position remains vacant, MCAJordan is actively engaged in recruiting 

a replacement. 

(g) MCC has not determined, in its 

sole discretion, that an act, omission, 

condition, or event has occurred that 

would be the basis for MCC to suspend 

or terminate, in whole or in part, the 

Compact or MCC Funding in accordance 

with Section 5.1 of this Compact. 

Annex V Definitions 

Activity has the meaning provided in 

Part B of Annex I. 

Additional Representative has the 

meaning provided in Section 4.2. 

As-Samra Expansion Project has the 

meaning provided in paragraph 3(a) of 

Part B of Annex I. 

As-Samra Project Agreement means 

the Project Agreement between the 

Government, represented by MWI, and 

Samra Wastewater Treatment Plant 

Company Limited dated 28 July 2002 (as 

amended and restated on 10 December 

2003, as further amended on June 29, 

2006, November 5, 2008 and April 8, 

2010, and as amended and restated after 

the date hereof). 

Audit Guidelines has the meaning 

provided in Section 3.8(a). 

Baseline has the meaning provided in 

paragraph 3 of Annex III. 

Board has the meaning provided in 

paragraph 3 of Part C of Annex I. 

BOD 5 has the meaning provided in 

paragraph 3(a) of Part B of Annex I. 

Bylaws has the meaning provided in 

paragraph 3 of Part C of Annex I. 

Cabinet Resolution has the meaning 

provided in Annex VI. 

CEO has the meaning provided in 

paragraph 3(a)(i) of Part C of Annex I. 

Certificate has the meaning provided 

in Schedule E to Annex VI. 

CIF Disbursement has the meaning 

provided in Annex IV. 

Compact has the meaning provided in 

the Preamble. 

Compact Contract has the meaning 

provided in Schedule A to Annex VI. 

Compact Goal has the meaning 

provided in Section 1.1. 

Compact Implementation Funding 

has the meaning provided in Section 

2.2(a). 

Compact Records has the meaning 

provided in Section 3.7(a). 

Compact Term has the meaning 

provided in Section 7.4. 

Covered Provider has the meaning 

provided in Section 3.7(c). 

Disbursement has the meaning 

provided in Section 2.4. 

DMA has the meaning provided in 

paragraph 1(a)(i)(2)(D) of Part B of 

Annex I. 

East Zarqa Pumping Station Zone 

Activity has the meaning provided in 

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

Eligible Entities has the meaning 

provided in Annex VI. 

Eligible Individuals has the meaning 

provided in Annex VI. 

ESIA has the meaning provided in 

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

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Evaluation Component has the 

meaning provided in paragraph 1 of 

Annex III. 

Excess CIF Amount has the meaning 

provided in Section 2.2(c). 

Final Evaluations has the meaning 

provided in paragraph 4(b) of Annex III. 

Fiscal Agent has the meaning 

provided in paragraph 5 of Part C of 

Annex I. 

General Assembly has the meaning 

provided in paragraph 3 of Part C of 

Annex I. 

GIS has the meaning provided in 

paragraph 1(a)(i)(1) of Part B of Annex 

I. 

Governance Guidelines means MCC’s 

Guidelines for Accountable Entities and 

Implementation Structures, as such may 

be posted on MCC’s Web site from time 

to time. 

Government has the meaning 

provided in the Preamble. 

GTZ has the meaning provided in 

paragraph 4 of Part B of Annex I. 

IFC Performance Standards has the 

meaning provided in paragraph 3(c) of 

Part B of Annex I. 

Implementation Letter has the 

meaning provided in Section 3.5. 

Implementing Entity has the meaning 

provided in paragraph 4 of Part C of 

Annex I. 

Implementing Entity Agreement has 

the meaning provided in paragraph 4 of 

Part C of Annex I. 

Indicators has the meaning provided 

in paragraph 3(a) of Annex III. 

Infrastructure Investment Activity has 

the meaning provided in paragraph 1(a) 

of Part B of Annex I. 

Inspector General has the meaning 

provided in Section 3.7(d). 

ISTD has the meaning provided in 

Schedule A to Annex VI. 

Jordan has the meaning provided in 

the Preamble. 

KfW has the meaning provided in 

paragraph 4 of Part B of Annex I. 

M&E Plan has the meaning provided 

in Annex III. 

Management Unit has the meaning 

provided in paragraph 3 of Part C of 

Annex I. 

MCA Act has the meaning provided in 

Section 2.2(a). 

MCA-Jordan has the meaning 

provided in Section 3.2(b). 

MCC has the meaning provided in the 

Preamble. 

MCC Environmental Guidelines has 

the meaning provided in Section 2.7(c). 

MCC Funding has the meaning 

provided in Section 2.3. 

MCC Gender Policy means the MCC 

Gender Policy (including any guidance 

documents issued in connection with 

the guidelines) posted from time to time 

on the MCC Web site or otherwise made 

available to the Government. 

MCC Policy for Monitoring and 

Evaluation of Compacts and Threshold 

Programs has the meaning provided in 

Annex III. 

MCC Program Procurement 

Guidelines has the meaning provided in 

Section 3.6. 

MCC Web site has the meaning 

provided in Section 2.7. 

MCU has the meaning provided in 

paragraph 1 of Part A of Annex I. 

MOE has the meaning provided in 

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

MOF has the meaning provided in 

Annex VI. 

Monitoring Component has the 

meaning provided in paragraph 1 of 

Annex III. 

MOPIC has the meaning provided in 

Annex VI. 

Multi-Year Financial Plan Summary 

has the meaning provided in paragraph 

1 of Annex II. 

MWI has the meaning provided in 

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

OP 4.12 has the meaning provided in 

paragraph 3 of Part A of Annex I. 

Party and Parties have the meaning 

provided in the Preamble. 

PEISA has the meaning provided in 

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

Permitted Account has the meaning 

provided in Section 2.4. 

Principal Representative has the 

meaning provided in Section 4.2. 

Procurement Agent has the meaning 

provided in paragraph 6 of Part C of 

Annex I. 

Program has the meaning provided in 

the Preamble. 

Program Assets means any assets, 

goods or property (real, tangible or 

intangible) purchased or financed in 

whole or in part (directly or indirectly) 

by MCC Funding. 

Program Funding has the meaning 

provided in Section 2.1. 

Program Guidelines means 

collectively the Audit Guidelines, the 

MCC Environmental Guidelines, the 

MCC Gender Policy, the Governance 

Guidelines, the MCC Program 

Procurement Guidelines, the Reporting 

Guidelines, the MCC Policy for 

Monitoring and Evaluation of Compacts 

and Threshold Programs, the MCC Cost 

Principles for Government Affiliates 

Involved in Compact Implementation 

(including any successor to any of the 

foregoing) and any other guidelines, 

policies or guidance papers relating to 

the administration of MCC-funded 

compact programs and as from time to 

time published on the MCC Web site. 

Program Implementation Agreement 

and PIA have the meaning provided in 

Section 3.1. 

Program Objective has the meaning 

provided in Section 1.2. 

Project(s) has the meaning provided 

in Section 1.2. 

Project Objective(s) has the meaning 

provided in Section 1.3. 

Provider has the meaning provided in 

Section 3.7(c). 

Reporting Guidelines means the MCC 

‘‘Guidance on Quarterly MCA 

Disbursement Request and Reporting 

Package’’ posted by MCC on the MCC 

Web site or otherwise publicly made 

available. 

Ruseifa Distribution Areas has the 

meaning provided in paragraph 

1(a)(i)(3)(A) of Part B of Annex I. 

Social and Gender Integration Plan 

has the meaning provided in paragraph 

3 of Part A of Annex I. 

Stakeholders Committee has the 

meaning provided in paragraph 3 of Part 

C of Annex I. 

Supplemental Agreement means any 

agreement between (a) the Government 

(or any Government affiliate, including 

MCA-Jordan) and MCC (including, but 

not limited to, the PIA) or (b) MCC and/ 

or the Government (or any Government 

affiliate, including MCA-Jordan), on the 

one hand, and any third party, on the 

other hand, including any of the 

Providers, in each case, setting forth the 

details of any funding, implementing or 

other arrangements in furtherance of 

this Compact. 

Target has the meaning provided in 

paragraph 3(a) of Annex III. 

Taxes has the meaning provided in 

Section 2.8(a). 

TSS has the meaning provided in 

paragraph 3(a) of Part B of Annex I. 

United States Dollars or US$ means 

the lawful currency of the United States 

of America. 

USAID has the meaning provided in 

paragraph 5 of Part B of Annex I. 

VAT has the meaning provided in 

Schedule A to Annex VI. 

WAJ has the meaning provided in 

paragraph 6 of Part B of Annex I. 

Wastewater Network Project has the 

meaning provided in paragraph 2(a) of 

Part B of Annex I. 

Water Network Project has the 

meaning provided in paragraph 1(a) of 

Part B of Annex I. 

Water Smart Homes Activity or WSH 

Activity has the meaning provided in 

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

West Zarqa Pumping Station Zone 

Activity has the meaning provided in 

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

WSA has the meaning provided in 

paragraph 1(a)(i)(2) of Part B of Annex 

I. 

WSH Direct Assistance Program has 

the meaning provided in paragraph 

1(a)(ii)(2) of Part B of Annex I. 

WSH Outreach Campaign has the 

meaning provided in paragraph 

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

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Federal Register / Vol. 75, No. 210 / Monday, November 1, 2010 / Notices 67141 

11To the extent that VAT is imposed at the port 

of entry on imported goods, together with custom 

duties, the applicable tax exemption procedures are 

described in Schedule B below. 

Zarqa Distribution Areas has the 

meaning provided in paragraph 

1(a)(i)(2)(A) of Part B of Annex I. 

Annex VI Tax Schedules 

Introduction 

The Government will ensure that 

MCA-Jordan and all contractors (prime 

contractors and subcontractors), 

consultants, and other entities and 

individuals that receive MCC Funding 

directly or indirectly (the ‘‘Eligible 

Entities’’ or ‘‘Eligible Individuals,’’ as 

appropriate) are exempt from Taxes in 

accordance with Section 2.8. 

The mechanism that the Government 

will use to implement the exemption is 

as follows: 

1. The Ministry of Planning and 

International Cooperation (‘‘MOPIC’’), 

the Ministry of Finance (‘‘MOF’’) and 

MCA-Jordan will cooperate in drafting a 

resolution to be presented to the 

Council of Ministers for approval. The 

draft resolution will be subject to MCC 

approval before being presented to the 

Council of Ministers. 

2. The draft resolution will, at a 

minimum, specify: 

(a) The Projects that will benefit from 

the exemption; 

(b) The expected timeframe of each 

Project; 

(c) The expected cost of each Project; 

and 

(d) A complete list of Taxes that will 

be exempted. 

3. The Council of Ministers approves 

the blanket exemption for all Project 

and Activities (the ‘‘Cabinet 

Resolution’’). 

4. The following schedules describe 

the basic procedures that an Eligible 

Entity or Eligible Individual should 

follow to ensure the proper 

implementation of the exemption. 

Schedule A Value Added Tax (VAT) 11

Procedures 

1. The Council of Ministers issues the 

Cabinet Resolution, as described in the 

Introduction. 

2. Any MCC-funded contract or 

agreement with an Eligible Entity or 

Eligible Individual (each, a ‘‘Compact 

Contract’’) will explicitly state that such 

Eligible Entity or Eligible Individual is 

entitled to complete exemption from 

Taxes in accordance with the Cabinet 

Resolution. In the event a Compact 

Contract is a contract with a 

subcontractor, such contract will (a) 

explicitly state that the subcontractor is 

entitled to the complete exemption from 

Taxes in accordance with the Cabinet 

Resolution, and (b) attach the contract 

between the prime contractor and MCAJordan. 

3. When the Eligible Entity or Eligible 

Individual needs to purchase goods or 

services, it will provide MCA-Jordan 

with the following: 

(a) For goods: A list of the goods 

needed to be purchased on a tax-exempt 

basis, including the total needed and the 

approximate cost. MCA-Jordan will 

indicate its approval on the list 

provided by the Eligible Entity or 

Eligible Individual. The Eligible Entity 

or Eligible Individual takes the MCAJordan approved list of goods to be 

purchased and a copy of the Compact 

Contract to the Income and Sales Tax 

Department (‘‘ISTD’’), which provides its 

approval for the purchase on a taxexempt basis. The Eligible Entity or 

Eligible Individual provides the vendor 

with the above-mentioned 

documentation and purchases the goods 

net of VAT. 

(b) For services: The same procedure 

in paragraph 3(a) above is followed. 

Instead of a list of items to be 

purchased, however, the Eligible Entity 

or Eligible Individual provides a 

description of the services needed, the 

approximate cost of such services and 

the period of performance of such 

services. 

4. MCA-Jordan follows the same 

procedures for its own purchases of 

goods and services related to the 

Projects. 

Schedule B Customs Duties 

Procedures 

Purchases of Imported Goods 

1. The Council of Ministers issues the 

Cabinet Resolution, as described in the 

Introduction. 

2. When MCA-Jordan signs a Compact 

Contract, MCA-Jordan sends to Jordan 

Customs an exemption request with the 

list of materials the Eligible Entity or 

Eligible Individual intends to purchase 

for use on the relevant Project. The 

letter must state the name of the Project 

and the Eligible Entity or Eligible 

Individual, and the Cabinet Resolution 

must be attached. 

3. The Compact Contract will 

explicitly state that the Eligible Entity or 

Eligible Individual is exempt from 

paying customs duties in accordance 

with the Cabinet Resolution. 

4. When the imported goods arrive, 

Jordan Customs compares what is in the 

shipment against the list it maintains 

and then releases them to the customs 

broker working for the Eligible Entity or 

Eligible Individual. All Eligible Entities 

and Eligible Individuals are required to 

use the services of a customs broker. 

5. At the end of the Project, the MCAJordan construction manager performs a 

reconciliation between goods imported 

for use on the Project and goods actually 

used on the Project. Any goods 

imported for use on the Project not 

actually used on the Project (for 

example, more goods imported than 

used) may be subject to customs duties. 

Therefore, if an Eligible Entity or 

Eligible Individual knows that more 

goods will be needed than originally 

proposed, it must work with MCAJordan to ensure that Jordan Customs 

has been provided with a list of the 

additional materials. 

6. The procedures set forth above also 

apply to MCA-Jordan except that MCAJordan will work directly with Jordan 

Customs. 

Temporary Admission of Equipment, 

Vehicles and Household Goods, by 

Eligible Entities and Eligible Individuals 

1. The procedures outlined in 

paragraphs 1, 2, and 3 above will be 

followed except that MCA-Jordan must 

specifically request that an Eligible 

Entity or Eligible Individual performing 

work for the Project be permitted to 

bring in, on a temporary basis, 

equipment for use on the Project and 

vehicles and household goods of such 

Eligible Individual or Eligible Entity’s 

employees working on the Project. 

2. Once the Cabinet Resolution has 

been issued, MCA-Jordan sends the 

exemption request to Jordan Customs 

with the Cabinet Resolution attached. 

3. When the items to receive 

temporary admission arrive, the goods 

are released to the customs broker 

working for the Eligible Individual or 

Eligible Entity. 

4. The temporary admission request 

must be renewed annually until the 

earlier of (a) the completion of the 

applicable contract, (b) the end of the 

Compact-related work, and (c) the 

expiration or termination of the 

Compact. 

Schedule C Corporate Income Tax 

Procedures 

1. The Council of Ministers issues the 

Cabinet Resolution, as described in the 

Introduction. 

2. Any Eligible Entity earning income 

only from MCC Funding in Jordan in 

any given tax year will be exempt from 

Tax on such income and as such will 

not be required to withhold Taxes on 

income earned during the tax year. At 

the end of the tax year, the Eligible 

Entity files a tax return indicating that 

the income earned on the MCC-funded 

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67142 Federal Register / Vol. 75, No. 210 / Monday, November 1, 2010 / Notices 

Projects is not subject to Tax in 

accordance with the Cabinet Resolution 

and the Compact Contract. 

3. Any Eligible Entity earning only a 

portion of its income from MCC 

Funding in any given fiscal year will: 

(a) Maintain its books and records to 

segregate the financial activity related to 

the Projects from those financial 

activities that are not related to the 

Compact. 

(b) At the end of any such fiscal year, 

file its Tax return on income that is not 

related to the Compact, as applicable, 

providing the documentation required 

in paragraph 2 above. 

Schedule D Individual Income Tax 

Procedures 

1. The Council of Ministers issues a 

Cabinet Resolution, as described in the 

Introduction. 

2. Any Eligible Individual earning 

income only from MCC Funding in 

Jordan in any given tax year will be 

exempt from withholding any such 

income Taxes during the tax year and 

from paying any Tax on income earned 

during the tax year. At the end of the tax 

year, the individual files a tax return 

indicating that the income earned on the 

MCC-funded Projects is not subject to 

Tax in accordance with the Cabinet 

Resolution and the Compact Contract. 

3. Any Eligible Individual earning 

income paid with MCC Funding and 

non-Compact-related income in any 

given fiscal year will be permitted to 

exclude the gross amount of such 

Compact-related personal income for 

the purposes of filing his/her year-end 

individual income Taxes in Jordan for 

any such fiscal year. 

Schedule E Fuel Tax 

VAT is the only Tax included in 

petroleum products. 

Procedures 

1. The Council of Ministers issues the 

Cabinet Resolution, as described in the 

Introduction. 

2. The Government will issue a 

certificate, or other documentary 

evidence (the ‘‘Certificate’’), to the 

Eligible Entity or Eligible Individual 

that allows the holder of such Certificate 

to be exempt from VAT at the point of 

purchase for fuel or other petroleum 

products. 

3. Purchases of fuel and other 

petroleum products will be purchased 

through approved wholesalers upon 

presentation of the Certificate. 

Schedule F Social Security Tax 

Procedures 

1. The Council of Ministers issues the 

Cabinet Resolution, as described in the 

Introduction. 

2. The Cabinet Resolution will state 

the following: 

(a) Eligible Individuals are exempted 

from paying the employee portion of 

social security Tax to the Government. 

(b) Employers of Eligible Individuals 

are exempted from paying the employer 

portion of social security Tax to the 

Government. 

3. Neither the Eligible Individuals nor 

their employers will be required to file 

any paperwork or returns with regard to 

social security Taxes. 

Schedule G Tax on Foreign Import 

Services (i.e., Foreign Consultant 

Services) 

Procedures 

1. The Council of Ministers issues the 

Cabinet Resolution, as described in the 

Introduction. 

2. The Cabinet Resolution will state 

that MCA-Jordan will not be required to 

withhold VAT on each invoice 

submitted by any foreign consultant that 

is an Eligible Entity or Eligible 

Individual. 

3. Any foreign consultant that is an 

Eligible Entity or Eligible Individual 

will not charge VAT on invoices 

submitted to MCA-Jordan. 

4. MCA-Jordan will not be required to 

withhold VAT on any invoice submitted 

by a foreign consultant that is an 

Eligible Entity or Eligible Individual. 

Schedule H Company Registration Fee 

Procedures 

1. The Council of Ministers issues the 

Cabinet Resolution, as described in the 

Introduction. 

2. The Cabinet Resolution will state 

that Eligible Entities that are required to 

register in Jordan to perform Compactrelated work will be exempt from 

paying the company registration fee 

imposed by the Ministry of Trade and 

Industry. 

3. At the time of registering in Jordan 

to perform Compact-related work, the 

Eligible Entity will provide copies of 

(a) the Cabinet Resolution, and (b) its 

Compact Contract to the Ministry of 

Trade and Industry. 

Schedule I Work Permit Fee 

Procedures 

1. The Council of Ministers issues the 

Cabinet Resolution, as described in the 

Introduction. 

2. The Cabinet Resolution will state 

that Eligible Individuals who are 

required to obtain a work permit to 

perform Compact-related work will be 

exempt from paying the work permit fee 

imposed by the Ministry of Labor. 

3. At the time of obtaining a work 

permit to perform Compact-related 

work, the Eligible Individual will 

provide copies of (a) the Cabinet 

Resolution, and (b) its Compact Contract 

to the Ministry of Labor. 

[FR Doc. 2010–27459 Filed 10–29–10; 8:45 am] 

BILLING CODE 9211–03–P 

NATIONAL SCIENCE FOUNDATION 

Proposal Review Panel for Physics; 

Notice of Meeting 

In accordance with the Federal 

Advisory Committee Act (Pub. L. 92– 

463, as amended), the National Science 

Foundation announces the following 

meeting: 

Name: Site Visit to the Center for the 

Physics of Living Cells #1208. 

Dates/Time: November 8, 2010, 9 a.m.– 

4 p.m.; November 9, 2010, 9 a.m.–5 p.m. 

Place: University of Illinois, UrbanaChampaign. 

Type of Meeting: Partially Closed. 

Contact Person: Dr. C. Denise Caldwell, 

Program Director, Rm. 1015, National 

Science Foundation, 4201 Wilson Blvd., 

Arlington, VA 22230, (703) 292–7371. 

Purpose of Meeting: To provide advice and 

recommendations concerning progress of the 

Center for the Physics of Living Cells (CPLC). 

Agenda 

Monday, November 8, 2010 

9 a.m.–11:55 a.m.—Open—Directors 

Overview, Four Research Talks. 

1:30 p.m.–4:00 p.m.—Closed—Discussions 

with staff and faculty, Executive Sessions. 

Tuesday, November 9, 2010 

9 a.m.–5 p.m.—Closed—Executive Session, 

review and drafting report. 

Reason for Late Notice: Due to unforeseen 

scheduling and administrative complications 

and the necessity to proceed with the review. 

Reason for Closing: The work being 

reviewed may include information of a 

proprietary or confidential nature, including 

technical information; financial data such as 

salaries; and personal information 

concerning individuals associated with the 

center. These matters are exempt under (4) 

and (6) of 5 U.S.C. 552b(c), of the 

Government in the Sunshine Act. 

Dated: October 26, 2010. 

Susanne Bolton, 

Committee Management Officer. 

[FR Doc. 2010–27478 Filed 10–29–10; 8:45 am] 

BILLING CODE 7555–01–P 

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