Bo 21 11-2012-63

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Bo 21 11-2012-63

  1. 1. BOLETIM OFICIALQuarta-feira, 21 de Novembro de 2012I SérieNúmero 63Í N D I C ECONSELHO DE MINISTROS:Decreto nº 12/2012:Aprova o Acordo designado Desafios do Milénio II, assinado entre o Governo da República de Cabo Verdee o Governo dos Estados Unidos da América, através do Millenium Challenge Corporation.https://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089
  2. 2. 1266 I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012CONSELHO DE MINISTROS––––––Decreto n.º 12/2012de 20 de NovembroCom o objectivo de reduzir a pobreza através do cresci-mento económico, e de forma a reforçar a boa governaçãoe os investimentos na sociedade cabo-verdiana, o Governode Cabo Verde assinou, a 10 de Fevereiro de 2012, como Governo dos Estados Unidos da América, através doMillenium Challenge Corporation, um Acordo designadoDesafios do Milénio II, no montante de U$ 66.230.000,00(sessenta e seis milhões, duzentos e trinta mil dólaresamericanos).Considerando a importância desse projecto para o desen-volvimento do país, e convindo aprovar o referido Acordo;No uso da faculdade conferida pela alínea d) do n.º 2 doartigo 204.º da Constituição, O Governo decreta o seguinte:Artigo 1.ºAprovaçãoÉ aprovado o Acordo designado Desafios do Milénio II,assinado entre o Governo da República de Cabo Verdee o Governo dos Estados Unidos da América, através doMillenium Challenge Corporation, a 10 de Fevereiro de2012, cujos textos, na versão autêntica em língua inglesa,bem como a respectiva tradução em língua portuguesa,se publicam em anexo e fazem parte integrantes do pre-sente diploma.Artigo 2.ºObjectivoO Acordo Desafios do Milénio II, referido no artigo an-terior, tem como objectivo precípuo a redução da pobrezaatravés do crescimento económico, de forma a reforçar a boagovernação e os investimentos na sociedade cabo-verdiana.Artigo 3.ºMontanteO montante do Acordo Desafios do Milénio II é de U$66.230.000,00 (sessenta e seis milhões, duzentos e trintamil dólares americanos).Artigo 4ºDuraçãoO Acordo Desafios do Milénio II tem a duração de 5(cinco) anos a contar da sua entrada em vigor.Artigo 5.ºPoderesSão conferidos ao membro do Governo responsável pelaárea das Finanças, com a faculdade de delegar, os poderesnecessários para representar o Governo de Cabo Verdejunto ao Millenium Challenge Corporation, em quaisqueractos, ou para efeitos de quaisquer formalidades decor-rentes da execução do Acordo objecto do presente diploma.Artigo 6.ºProdução de efeitosO Acordo Desafios do Milénio II produz efeitos emconformidade com o que nele se estipula.Artigo 7.ºEntrada em vigorEste diploma entra em vigor no dia seguinte ao da suapublicação.Visto e aprovado em Conselho de Ministros de11 de Setembro de 2012.José Maria Pereira Neves - Cristina Isabel Lopes daSilva Monteiro DuartePublique-se.O Primeiro-Ministro, José Maria Pereira NevesMILLENNIUM CHALLENGE COMPACTBETWEEN THE UNITED STATES OF AMERICAACTING THROUGH THE MILLENNIUMCHALLENGE CORPORATION ANDTHE REPUBLIC OF CAPE VERDEMILLENNIUM CHALLENGE COMPACTPreambleThis MILLENNIUM CHALLENGE COMPACT (this“Compact”) is between the United States of America,acting through the Millennium Challenge Corporation, aUnited States government corporation (“MCC”), and theRepublic of Cape Verde (“Cape Verde”), acting throughits government (the “Government”) as represented bythe Ministry of Finance and Planning. MCC and theGovernment are referred to in this Compact individuallyas a “Party” and collectively as the “Parties.” Capitalizedterms used in this Compact shall have the meaningsprovided in Annex V.Recalling that the Parties successfully concluded aninitial Millennium Challenge Compact that advancedthe progress of Cape Verde in achieving lasting economicgrowth and poverty reduction, demonstrated the strongpartnership between the Parties, and was implementedin accordance with MCC’s core policies and standards;Recognizing that the Parties are committed to theshared goals of promoting economic growth and the elimi-nation of extreme poverty in Cape Verde and that MCCassistance under this subsequent Compact supports CapeVerde’s demonstrated commitment to strengthening goodgovernance, economic freedom and investments in people;Recalling that the Government consulted with theprivate sector and civil society of Cape Verde to deter-mine the priorities for the use of MCC assistance anddeveloped and submitted to MCC a proposal consistentwith those priorities; andRecognizing that MCC wishes to help Cape Verdeimplement a program to achieve the goal and objectivesdescribed herein (as such program description and objec-tives may be amended from time to time in accordancewith the terms hereof, the “Program”);The Parties hereby agree as follows:https://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089
  3. 3. I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012 1267ARTICLE 1.GOAL AND OBJECTIVESSection 1.1 Compact Goal. The goal of this Compact isto reduce poverty through economic growth in Cape Verde(the “Compact Goal”). MCC’s assistance will be providedin a manner that strengthens good governance, economicfreedom, and investments in the people of Cape Verde.Section 1.2 Program Objectives. The objectives ofthe Program are to reduce the costs upon the economy ofinefficiently provided public services and to remove insti-tutional conditions that impede private sector investment(the “Program Objectives”). The Program consists ofthe projects described in Annex I (each a “Project” andcollectively, the “Projects”).Section 1.2 Project Objectives. The objectives of theProjects (each a “Project Objective” and collectively, the“Project Objectives”) are as follows:(a) The objective of the Water, Sanitation andHygiene Project is to establish a financiallysound, transparent, and accountableinstitutional basis for the delivery of waterand sanitation services to Cape Verdeanhouseholds and firms by: (i) reformingnational policy and regulatory institutions;(ii) transforming inefficient utilities intoautonomous corporate entities operating ona commercial basis; and (iii) improving thequality and reach of infrastructure in thesector; and(b) The objective of the Land Management forInvestment Project is to reduce the timerequired for establishing secure propertyrights and to establish more conclusive landinformation in areas of near-term, highdevelopment potential in Cape Verde by: (i)refiningthelegal,institutionalandproceduralenvironment to increase reliability of landinformation, achieve greater efficiency in landadministration transactions, and strengthenprotection of land rights; (ii) developingand implementing a new land informationmanagement system; and (iii) clarifyingparcel rights and boundaries on targetedislands with high investment potential.ARTICLE 2.FUNDING AND RESOURCESSection 2.1 Program Funding.Upon entry into force of this Compact in accordancewith Section 7.3, MCC shall grant to the Government,under the terms of this Compact, an amount not to exceedSixty Two Million Two Hundred Thirty Thousand UnitedStates Dollars (US$62,230,000) (“Program Funding”)for use by the Government to implement the Program.The allocation of Program Funding is generally describedin Annex II.Section 2.2 Compact Implementation Funding.(a) Upon signing of this Compact, MCC shall grant tothe Government, under the terms of this Compact andin addition to the Program Funding described in Section2.1, an amount not to exceed Four Million United StatesDollars (US$4,000,000) (“Compact ImplementationFunding”) under Section 609(g) of the Millennium Chal-lenge Act of 2003, as amended (the “Act”), for use by theGovernment to facilitate implementation of the Compact,including for the following purposes:(i) financial management and procurementactivities (including costs related to agentsprocured by MCC to provide standby fiscaland procurement agent services, if required);(ii) administrative activities (including start-up costssuch as staff salaries) and administrative supportexpenses such as rent, computers and otherinformation technology or capital equipment;(iii) monitoring and evaluation activities;(iv) feasibility studies; and(v) other activities to facilitate Compact implementationas approved by MCC.The allocation of Compact Implementation Funding isgenerally described in Annex II.(b) Each Disbursement of Compact ImplementationFunding is subject to satisfaction of the conditions prec-edent to such disbursement as set forth in Annex IV.(c) If MCC determines that the full amount of CompactImplementation Funding available under Section 2.2(a)exceeds the amount that reasonably can be utilized forthe purposes set forth in Section 2.2(a), MCC, by writ-ten notice to the Government, may withdraw the excessamount, thereby reducing the amount of the CompactImplementation Funding available under Section 2.2(a)(such excess, the “Excess CIF Amount”). In such event,the amount of Compact Implementation Funding grantedto the Government under Section 2.2(a) shall be reducedby the Excess CIF Amount, and MCC shall have no fur-ther obligations with respect to such Excess CIF Amount.(d) MCC, at its option by written notice to the Govern-ment, may elect to grant to the Government an amountequal to all or a portion of such Excess CIF Amount asan increase in the Program Funding, and such additionalProgram Funding shall be subject to the terms and condi-tions of this Compact applicable to Program Funding.Section 2.3 MCC Funding.ProgramFundingandCompactImplementationFundingarecollectively referred to in this Compact as “MCC Funding,”and includes any refunds or reimbursements of ProgramFunding or Compact Implementation Funding paid by theGovernment in accordance with this Compact.Section 2.4 Disbursement.In accordance with this Compact and the ProgramImplementation Agreement, MCC shall disburse MCCFunding for expenditures incurred in furtherance of theProgram (each instance, a “Disbursement”). Subject tohttps://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089
  4. 4. 1268 I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012the satisfaction of all applicable conditions precedent,the proceeds of Disbursements shall be made availableto the Government, at MCC’s sole election, by (a) depositto one or more bank accounts established by the Govern-ment and acceptable to MCC (each, a “Permitted Ac-count”) or (b) direct payment to the relevant providerof goods, works or services for the implementation ofthe Program. MCC Funding may be expended only forProgram expenditures.Section 2.5 Interest. The Government shall payor transfer to MCC, in accordance with the ProgramImplementation Agreement, any interest or other earn-ings that accrue on MCC Funding prior to such fundingbeing used for a Program purpose.Section 2.6 Government Resources; Budget.(a) Consistent with Section 609(b)(2) of the Act, theGovernment shall make a contribution towards meet-ing the Program Objectives and Project Objectives ofthis Compact. Annex II describes such contribution inmore detail. In addition, the Government shall provideall funds and other resources, and shall take all actions,that are necessary to carry out the Government’s respon-sibilities under this Compact.(b) The Government shall use its best efforts to ensurethat all MCC Funding it receives or is projected to receivein each of its fiscal years is fully accounted for in its an-nual budget for the duration of the Program.(c) The Government shall not reduce the normal andexpected resources that it would otherwise receive orbudget from sources other than MCC for the activitiescontemplated under this Compact and the Program.(d) Unless the Government discloses otherwise toMCC in writing, MCC Funding shall be in addition tothe resources that the Government would otherwisereceive or budget for the activities contemplated underthis Compact and the Program.Section 2.7 Limitations on the Use of MCC Funding.The Government shall ensure that MCC Funding is notused for any purpose that would violate United States lawor policy, as specified in this Compact or as further notifiedtotheGovernmentinwritingorbypostingfromtimetotimeon the MCC website at www.mcc.gov (the “MCC Website”),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) foranyactivitythatislikelytocauseasubstantialloss of United States jobs or a substantialdisplacement of United States production;(c) to undertake, fund or otherwise support anyactivity that is likely to cause a significantenvironmental, health, or safety hazard, asfurther described in MCC’s environmentaland social assessment guidelines and anyguidance documents issued in connectionwith the guidelines posted from time to timeon the MCC Website or otherwise madeavailable to the Government (collectively, the“MCC Environmental Guidelines”); or(d) to pay for the performance of abortions as amethod of family planning or to motivateor coerce any person to practice abortions,to pay for the performance of involuntarysterilizations as a method of family planningor to coerce or provide any financial incentiveto any person to undergo sterilizations orto pay for any biomedical research whichrelates, in whole or in part, to methods of, orthe performance of, abortions or involuntarysterilization as a means of family planning.Section 2.8 Taxes.(a) Unless the Parties specifically agree otherwisein writing, the Government shall ensure that all MCCFunding is free from the payment or imposition of anyexisting or future taxes, duties, levies, contributions orother similar charges (but not fees or charges for servicesthat are generally applicable in Cape Verde, reason-able in amount and imposed on a non-discriminatorybasis) (“Taxes”) of or in Cape Verde (including any suchTaxes imposed by a national, regional, local or othergovernmental or taxing authority of or in Cape Verde).Specifically, and without limiting the generality of theforegoing, MCC Funding shall be free from the paymentof (i) any tariffs, customs duties, import taxes, exporttaxes, and other similar charges on any goods, worksor services introduced into Cape Verde in connectionwith the Program; (ii) sales tax, value added tax, excisetax, property transfer tax, and other similar chargeson any transactions involving goods, works or servicesin connection with the Program, (iii) taxes and othersimilar charges on ownership, possession or use of anyproperty in connection with the Program, and (iv) taxesand other similar charges on income, profits or grossreceipts attributable to work performed in connectionwith the Program and related social security taxes andother similar charges on all natural or legal persons per-forming work in connection with the Program except (x)natural persons who are citizens or permanent residentsof Cape Verde, (y) social security taxes or other similarcharges levied on an employer in connection with hiringemployees who are citizens or permanent residents ofCape Verde, and (z) legal persons formed under the lawsof Cape Verde (but excluding MCA-Cape Verde II andany other entity formed for the purpose of implementingthe Government’s obligations hereunder).(b) The mechanisms that the Government shall use toimplement the tax exemption required by Section 2.8(a)are set forth in the Program Implementation Agreement.Such mechanisms may include exemptions from thepayment of Taxes that have been granted in accordancewith applicable law, refund or reimbursement of Taxesby the Government to MCC, MCA-Cape Verde II or tothe taxpayer, or payment by the Government to MCA-Cape Verde II or MCC, for the benefit of the Program,of an agreed amount representing any collectible Taxeson the items described in Section 2.8(a).(c) If a Tax has been paid contrary to the requirementsof Section 2.8(a) or the Program Implementation Agree-ment, the Government shall refund promptly to MCChttps://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. 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  5. 5. I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012 1269(or to another party as designated by MCC) the amountof such Tax in United States dollars or the currency ofCape Verde within sixty (60) days (or such other periodas may be agreed in writing by the Parties) after theGovernment is notified in writing (whether by MCC orMCA-Cape Verde II) that such Tax has been paid.(d) No MCC Funding, proceeds thereof or Program As-sets may be applied by the Government in satisfactionof its obligations under Section 2.8(c).Section 2.9 Lower Middle Income Countries. Section606(b) of the Act restricts the amount of assistance thatMCC may provide to “lower middle income countries,” aterm that is defined in the Act and includes Cape Verde.To the extent that MCC determines, in MCC’s reason-able discretion, that the amount of Program Fundinggranted to the Government in this Compact may resultin a violation of Section 606(b) of the Act, MCC, at anytime and from time to time upon written notice to theGovernment, may reduce the amount of Program Fund-ing, or withhold any Disbursement of Program Funding,to avoid or remedy such a violation.ARTICLE 3.IMPLEMENTATIONSection 3.1 Program Implementation Agreement.The Parties shall enter into an agreement providingfurther detail on the implementation arrangements,fiscal accountability and disbursement and use of MCCFunding, among other matters (the “Program Imple-mentation Agreement” or “PIA”); and the Governmentshall implement the Program in accordance with thisCompact, the PIA, any other Supplemental Agreementand any Implementation Letter.Section 3.2 Government Responsibilities.(a) The Government has principal responsibility foroverseeing and managing the implementation of theProgram.(b) The Government will create and designate Millen-nium Challenge Account - Cape Verde II, as the account-able entity to implement the Program and to exerciseand perform the Government’s right and obligation tooversee, manage and implement the Program, includ-ing without limitation, managing the implementationof Projects and their Activities, allocating resources andmanaging procurements. Such entity shall be referredto herein as “MCA-Cape Verde II,” and shall have theauthority to bind the Government with regard to all Pro-gram activities. The designation contemplated by thisSection 3.2(b) shall not relieve the Government of anyobligations or responsibilities hereunder or under anyrelated agreement, for which the Government remainsfully responsible. MCC hereby acknowledges and con-sents to the designation in this Section 3.2(b).(c) The Government shall ensure that any ProgramAssets or services funded in whole or in part (directly orindirectly) by MCC Funding are used solely in further-ance of this Compact and the Program unless MCC agreesotherwise in writing.(d) The Government shall take all necessary or appro-priate steps to achieve the Program Objectives and theProject Objectives during the Compact Term (including,without limiting Section 2.6(a), funding all costs thatexceed MCC Funding and are required to carry out theterms hereof and achieve such objectives, unless MCCagrees otherwise in writing).(e) The Government shall fully comply with the Pro-gram Guidelines, as applicable, in its implementation ofthe Program.(f) The Government will grant to MCC a perpetual,irrevocable, royalty-free, worldwide, fully paid, assign-able right and license to practice or have practiced on itsbehalf (including the right to produce, reproduce, publish,repurpose, use, store, modify, or make available) any por-tion or portions of Intellectual Property as MCC sees fitin any medium, now known or hereafter developed, forany purpose whatsoever.Section 3.3 Policy Performance. In addition to un-dertaking the specific policy, legal and regulatory reformcommitments identified in Annex I, the Government shallseek to maintain and to improve its level of performanceunder the policy criteria identified in Section 607 of the Act,and the selection criteria and methodology used by MCC.Section 3.4 Accuracy of Information. The Govern-ment assures MCC that, as of the date this Compact issigned by the Government, the information provided toMCC by or on behalf of the Government in the course ofreaching agreement with MCC on this Compact is true,correct and complete in all material respects.Section 3.5 Implementation Letters. From time totime, MCC may provide guidance to the Government inwriting on any matters relating to this Compact, MCCFunding or implementation of the Program (each, an“Implementation Letter”). The Government shall applysuch guidance in implementing the Program. The Partiesmay also issue jointly agreed-upon Implementation Let-ters to confirm and record their mutual understanding onaspects related to the implementation of this Compact,the PIA or other related agreements.Section 3.6 Procurement and Grants.(a) The Government shall ensure that the procurementof all goods, works and services by the Government or anyProvider to implement the Program shall be consistentwith the “MCC Program Procurement Guidelines” postedfrom time to time on the MCC Website (the “MCC Pro-gram Procurement Guidelines”). The MCC ProgramProcurement Guidelines include the following require-ments, among others:(i) open, fair, and competitive procedures mustbe used in a transparent manner to solicit,award and administer contracts and toprocure goods, works and services;(ii) solicitations for goods, works, and servicesmust be based upon a clear and accuratedescription of the goods, works and servicesto be acquired;https://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089
  6. 6. 1270 I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012(iii) contracts must be awarded only to qualifiedcontractors that have the capability andwillingness to perform the contracts inaccordance with their terms on a cost effectiveand timely basis; and(iv) no more than a commercially reasonable price,as determined, for example, by a comparisonof price quotations and market prices, shallbe paid to procure goods, works and services.(b) The Government shall ensure that any grant is-sued to any non-governmental entity in furtherance ofthe Program (the “Grant”) is selected, implemented andadministered pursuant to open, fair, and competitiveprocedures administered in a transparent manner. Infurtherance of this requirement, and prior to the issu-ance of any Grant, the Government and MCC shall agreeupon written procedures to govern the identificationof potential recipients, the selection and the award ofGrants. Such agreed procedures shall be posted on theMCA-Cape Verde II website.Section3.7Records;Accounting;CoveredProviders;Access.(a) Government Books and Records. The Governmentshall maintain, and shall use its best efforts to ensurethat all Covered Providers maintain, accounting books,records, documents and other evidence relating to theProgram adequate to show, to MCC’s satisfaction, the useof all MCC Funding and the implementation and resultsof the Program (“Compact Records”). In addition, theGovernment shall furnish or cause to be furnished toMCC, upon its request, originals or copies of such Com-pact Records.(b) Accounting. The Government shall maintain andshall use its best efforts to ensure that all Covered Pro-viders maintain Compact Records in accordance withgenerally accepted accounting principles prevailing in theUnited States, or at the Government’s option and withMCC’s prior written approval, other accounting prin-ciples, such as those (i) prescribed by the InternationalAccounting Standards Board, or (ii) then prevailing inCape Verde. Compact Records must be maintained forat least five (5) years after the end of the Compact Termor for such longer period, if any, required to resolve anylitigation, claims or audit findings or any applicable legalrequirements.(c) Providers and Covered Providers. Unless the Partiesagree otherwise in writing, a “Provider” is (i) any entityof the Government that receives or uses MCC Fundingor any other Program Asset in carrying out activities infurtherance of this Compact or (ii) any third party thatreceives at least US$50,000 in the aggregate of MCCFunding (other than as salary or compensation as an em-ployee of an entity of the Government) during the Com-pact Term. A “Covered Provider” is (i) a non-UnitedStates Provider that receives (other than pursuant to adirect contract or agreement with MCC) US$300,000 ormore of MCC Funding in any Government fiscal yearor any other non-United States person or entity thatreceives, directly or indirectly, US$300,000 or more ofMCC Funding from any Provider in such fiscal year, or(ii) any United States Provider that receives (other thanpursuant to a direct contract or agreement with MCC)US$500,000 or more of MCC Funding in any Governmentfiscal year or any other United States person or entitythat receives, directly or indirectly, US$500,000 or moreof MCC Funding from any Provider in such fiscal year.(d) Access. Upon MCC’s request, the Government, atall reasonable times, shall permit, or cause to be permit-ted, authorized representatives of MCC, an authorizedInspector General of MCC (“Inspector General”), theUnited States Government Accountability Office, anyauditor responsible for an audit contemplated hereinor otherwise conducted in furtherance of this Compact,and any agents or representatives engaged by MCC orthe Government to conduct any assessment, review orevaluation of the Program, the opportunity to audit, re-view, evaluate or inspect facilities, assets and activitiesfunded in whole or in part by MCC Funding.Section 3.8 Audits; Reviews.(a) Government Audits. The Government shall, on anannual basis (or on a more frequent basis if requestedby MCC in writing), conduct, or cause to be conducted,financial audits of all disbursements of MCC Fundingcovering the period from signing of this Compact untilthe following December 31 and covering each twelve-month period thereafter ending December 31, throughthe end of the Compact Term. In addition, upon MCC’srequest, the Government shall ensure that such auditsare conducted by an independent auditor approved byMCC and named on the list of local auditors approved bythe Inspector General or a United States–based certifiedpublic accounting firm selected in accordance with the“Guidelines for Financial Audits Contracted by MCA”(the “Audit Guidelines”) issued and revised from timeto time by the Inspector General, which are posted on theMCC Website. Audits shall be performed in accordancewith the Audit Guidelines and be subject to quality as-surance oversight by the Inspector General. Each auditmust be completed and the audit report delivered to MCCno later than 90 days after the first period to be auditedand no later than 90 days after the end of the audit pe-riod, or such other period as the Parties may otherwiseagree in writing.(b) Audits of Other Entities. The Government shallensure that MCC financed agreements between theGovernment or any Provider, on the one hand, and (i) aUnited States nonprofit organization, on the other hand,state that the United States nonprofit organization issubject to the applicable audit requirements containedin OMB Circular A-133, “Audits of States, Local Gov-ernments, and Non-Profit Organizations,” issued by theUnited States Office of Management and Budget; (ii) aUnited States for-profit Covered Provider, on the otherhand, state that the United States for-profit organiza-tion is subject to audit by the applicable United StatesGovernment agency, unless the Government and MCCagree otherwise in writing; and (iii) a non-US CoveredProvider, on the other hand, state that the non-US CoveredProvider is subject to audit in accordance with the AuditGuidelines.https://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. 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  7. 7. I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012 1271(c) Corrective Actions. The Government shall useits best efforts to ensure that each Covered Provider (i)takes, where necessary, appropriate and timely correc-tive actions in response to audits, (ii) considers whetherthe results of the Covered Provider’s audit necessitatesadjustment of the Government’s records, and (iii) permitsindependent auditors to have access to its records andfinancial statements as necessary.(d) Audit by MCC. MCC shall have the right to arrangefor audits of the Government’s use of MCC Funding.(e) Cost of Audits, Reviews or Evaluations. MCC Fund-ing may be used to fund the costs of any audits, reviewsor evaluations required under this Compact.ARTICLE 4.COMMUNICATIONSSection 4.1 Communications. Any document or com-munication required or submitted by either Party tothe other under this Compact must be in writing and,except as otherwise agreed with MCC, in English. Forthis purpose, the address of each Party is set forth below.To MCC:Millennium Challenge CorporationAttention:Vice President, Compact Operations(with a copy to the Vice President and GeneralCounsel)875 Fifteenth Street, N.W.Washington, DC 20005United States of AmericaTelephone: (202) 521-3600Facsimile: (202) 521-3700Email:VPOperations@mcc.gov (Vice President,Compact Operations)VPGeneralCounsel@mcc.gov (Vice Presidentand General Counsel)To the Government:Ministry of Finance and PlanningAttention: Minister of Finance and Planning(with a copy to the National Director of Planning)Avenida Amilcar CabralP.O. Box #30Praia, Cape VerdeTelephone: +238 260 7500 / 1Facsimile: +238 261 3897To MCA-Cape Verde II:Upon establishment of MCA-Cape Verde II, MCA-CapeVerde II will notify the Parties of its contact details.Section 4.2 Representatives. For all purposes of thisCompact, the Government shall be represented by theindividual holding the position of, or acting as, Ministerof Finance and Planning of the Republic of Cape Verde,and MCC shall be represented by any of the individualsholding the positions of, or acting as, the Vice Presidentor Deputy Vice President for Compact Operations (eachof the foregoing, a “Principal Representative”). EachParty, by written notice to the other Party, may desig-nate one or more additional representatives (each, an“Additional Representative”) for all purposes otherthan signing amendments to this Compact. The Govern-ment will designate an Additional Representative. AParty may change its Principal Representative to a newrepresentative that holds a position of equal or higherauthority upon written notice to the other Party.Section 4.3 Signatures. Signatures to this Com-pact and to any amendment to this Compact shall beoriginal signatures appearing on the same page or in anexchange of letters or diplomatic notes. With respect toall documents arising out of this Compact (other than theProgram Implementation Agreement) and amendmentsthereto, signatures may, as appropriate, be delivered byfacsimile or electronic mail and in counterparts and shallbe binding on the Party delivering such signature to thesame extent as an original signature would be.ARTICLE 5.TERMINATION; SUSPENSION; EXPIRATIONSection 5.1 Termination; Suspension.(a) Either Party may terminate this Compact withoutcause in its entirety by giving the other Party thirty (30)days’ prior written notice. MCC may also terminate thisCompact or MCC Funding without cause in part by givingthe Government thirty (30) days’ prior written notice.(b) MCC may, immediately, upon written notice to theGovernment, suspend or terminate this Compact or MCCFunding, in whole or in part, and any obligation relatedthereto, if MCC determines that any circumstance iden-tified by MCC, as a basis for suspension or termination(whether in writing to the Government or by posting onthe MCC Website) has occurred, which circumstancesinclude but are not limited to the following:(i) the Government fails to comply with itsobligations under this Compact or any otheragreement or arrangement entered into bythe Government in connection with thisCompact or the Program;(ii) an event or series of events has occurred thatmakesitprobablethattheProgramObjectivesor any of the Project Objectives shall not beachieved during the Compact Term or thatthe Government shall not be able to performits obligations under this Compact;(iii) a use of MCC Funding or continuedimplementation of this Compact or theProgram violates applicable law or UnitedStates Government policy, whether now orhereafter in effect;https://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089
  8. 8. 1272 I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012iv) the Government or any other person or entityreceiving MCC Funding or using ProgramAssets is engaged in activities that arecontrary to the national security interests ofthe United States;(v) an act has been committed or an omission or anevent has occurred that would render CapeVerde ineligible to receive United Stateseconomic assistance under Part I of theForeign Assistance Act of 1961, as amended(22 U.S.C. 2151 et seq.), by reason of theapplication of any provision of such act or anyother provision of law;(vi) the Government has engaged in a pattern ofactions inconsistent with the criteria used todetermine the eligibility of Cape Verde forassistance under the Act; and(vii)the Government or another person or entityreceiving MCC Funding or using ProgramAssets is found to have been convicted of anarcotics offense or to have been engaged indrug trafficking.Section 5.2 Consequences of Termination, Suspen-sion or Expiration.(a) Upon the suspension or termination, in whole or inpart, of this Compact or any MCC Funding, or upon theexpiration of this Compact, the provisions of Section 4.2of the Program Implementation Agreement shall governthe post-suspension, post-termination or post-expirationtreatment of MCC Funding, any related Disbursementsand Program Assets. Any portion of this Compact, MCCFunding, the Program Implementation Agreement or anyother Supplemental Agreement that is not suspended orterminated shall remain in full force and effect.(b) MCC may reinstate any suspended or terminatedMCC Funding under this Compact if MCC determinesthat the Government or other relevant person or entityhas committed to correct each condition for which MCCFunding was suspended or terminated.Section 5.3 Refunds; Violation.(a) If any MCC Funding, any interest or earningsthereon, or any Program Asset is used for any purposein violation of the terms of this Compact, then MCC mayrequire the Government to repay to MCC in United StatesDollars the value of the misused MCC Funding, interest,earnings, or asset, plus interest within thirty (30) days afterthe Government’s receipt of MCC’s request for repayment.The Government shall not use MCC Funding, proceedsthereof or Program Assets to make such payment.(b) Notwithstanding any other provision in this Compactor any other existing agreement to the contrary, MCC’sright under Section 5.3(a) for a refund shall continue dur-ing the Compact Term and for a period of (i) five (5) yearsthereafter or (ii) one (1) year after MCC receives actualknowledge of such violation, whichever is later.Section 5.4 Survival. The Government’s responsi-bilities under this Section and Sections 2.7, 3.7, 3.8, 5.2,5.3, and 6.4 shall survive the expiration, suspension ortermination of this Compact.ARTICLE 6.COMPACT ANNEXES; AMENDMENTS; GOVERNING LAWSection 6.1 Annexes. Each annex to this Compactconstitutes an integral part hereof, and references to “Annex”mean an annex to this Compact unless otherwise ex-pressly stated.Section 6.2 Amendments.(a) The Parties may amend this Compact only by awritten agreement signed by the Principal Representa-tives (or such other government official designated bythe relevant Principal Representative).(b) Notwithstanding Section 6.2(a), the Parties mayagree in writing, signed by the Principal Representa-tives (or such other government official designated bythe relevant Principal Representative) or any AdditionalRepresentative, to modify any Annex to (i) suspend,terminate or modify any Project or Activity, or to cre-ate a new project, (ii) change the allocations of funds asset forth in Annex II as of the date hereof (including toallocate funds to a new project), (iii) modify the imple-mentation framework described in Annex I or (iv) add,delete or waive any condition precedent described inAnnex IV; provided that, in each case, any such modi-fication (A) is consistent in all material respects withthe Program Objectives and Project Objectives, (B) doesnot cause the amount of Program Funding to exceedthe aggregate amount specified in Section 2.1 (as maybe modified by operation of Section 2.2(d)), (C) does notcause the amount of Compact Implementation Funding toexceed the aggregate amount specified in Section 2.2(a),(D) does not reduce the Government’s responsibilities orcontribution of resources required under Section 2.6(a),and (E) does not extend the Compact Term.Section 6.3 Inconsistencies. In the event of anyconflict or inconsistency between:(a) any Annex and any of Articles 1 through 7, suchArticles 1 through 7, as applicable, shall prevail; or(b) this Compact and any other agreementbetween the Parties regarding the Program,this Compact shall prevail.Section 6.4 Governing Law. This Compact is aninternational agreement and as such shall be governedby the principles of international law.https://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089
  9. 9. I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012 1273Section 6.5 Additional Instruments. Any referenceto activities, obligations or rights undertaken or exist-ing under or in furtherance of this Compact or similarlanguage shall include activities, obligations and rightsundertaken by, or existing under or in furtherance ofany agreement, document or instrument related to thisCompact and the Program.Section 6.6 References to MCC Website. Any refer-ence in this Compact, the PIA or any other agreemententered into in connection with this Compact, to a docu-ment or information available on, or notified by postingon the MCC Website shall be deemed a reference to suchdocument or information as updated or substituted onthe MCC Website from time to time.Section 6.7 References to Laws, Regulations, Policiesand Guidelines. Each reference in this Compact, the PIAor any other agreement entered into in connection withthis Compact, to a law, regulation, policy, guideline orsimilar document shall be construed as a reference tosuch law, regulation, policy, guideline or similar docu-ment as it may, from time to time, be amended, revised,replaced, or extended and shall include any law, regula-tion, policy, guideline or similar document issued underor otherwise applicable or related to such law, regulation,policy, guideline or similar document.Section 6.8 MCC Status. MCC is a United Statesgovernment corporation acting on behalf of the UnitedStates Government in the implementation of this Com-pact. MCC and the United States Government assumeno liability for any claims or loss arising out of activi-ties or omissions under this Compact. The Governmentwaives any and all claims against MCC or the UnitedStates Government or any current or former officer oremployee of MCC or the United States Government forall loss, damage, injury, or death arising out of activi-ties or omissions under this Compact, and agrees thatit shall not bring any claim or legal proceeding of anykind against any of the above entities or persons for anysuch loss, damage, injury, or death. The Governmentagrees that MCC and the United States Government orany current or former officer or employee of MCC or theUnited States Government shall be immune from thejurisdiction of all courts and tribunals of Cape Verde forany claim or loss arising out of activities or omissionsunder this Compact.ARTICLE 7.ENTRY INTO FORCESection 7.1 Domestic Requirements. The Govern-ment shall proceed in a timely manner to complete all ofits domestic requirements for each of the Compact andPIA to enter into force as an international agreement.Section 7.2 Conditions Precedent to Entry into Force.Before this Compact enters into force:(a) the Program Implementation Agreement musthave been signed by the parties thereto;(b) the Government must have delivered to MCC:(i)a letter signed and dated by the PrincipalRepresentative of the Government, or suchother duly authorized representative of theGovernment acceptable to MCC, confirmingthat the Government has completed itsdomestic requirements for this Compact toenter into force and that the other conditionsprecedent to entry into force in this Section7.2 have been met;(ii) a signed legal opinion from the Attorney Generalof Cape Verde (or such other legal representativeof the Government acceptable to MCC), in formand substance satisfactory to MCC;(iii) complete, certified copies of all decrees,legislation, regulations or other governmentaldocuments relating to the Government’sdomestic requirements for this Compact toenter into force and the satisfaction of Section7.1, which MCC may post on its website orotherwise make publicly available; and(c) MCC shall not have determinedthat after signature of this Compact, theGovernment has engaged in a pattern ofactions inconsistent with the eligibilitycriteria for MCC Funding.Section 7.3 Date of Entry into Force. This Compactshall enter into force on the date of the letter from MCC tothe Government in an exchange of letters confirming thatMCC has completed its domestic requirements for entryinto force of this Compact and that the conditions precedentto entry into force in Section 7.2 have been met.Section 7.4 CompactTerm. ThisCompactshallremainin force for five (5) years after its entry into force, unless ter-minated earlier under Section 5.1 (the “Compact Term”).Section 7.5 Provisional Application. Upon signatureof this Compact, and until this Compact has entered intoforce in accordance with Section 7.3, the Parties shallprovisionally apply the terms of this Compact; providedthat, no MCC Funding, other than Compact Implementa-tion Funding, shall be made available or disbursed beforethis Compact enters into force.Signature page follows on the next pageIN WITNESS WHEREOF, the undersigned, duly au-thorized by their respective governments, have signedthis Compact.Done at Praia, Cape Verde, this 10th day of February,in the English language only.For the United States of America, Acting Through the MillenniumChallengeCorporation,DanielW.Yohannes,ChiefExecutiveOfficerFor the Republic of Cape Verde, Cristina Duarte, Ministerof Finance and Planninghttps://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089
  10. 10. 1274 I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012ANNEX IPROGRAM DESCRIPTIONThis Annex I describes the Program that MCC Fundingwill support in Cape Verde during the Compact Term.A. PROGRAM OVERVIEW1. Background.Strategically located at the crossroads of mid-Atlanticair and sea lanes, Cape Verde continues to exhibit oneof Africa’s most stable and democratic governments. In2001, Cape Verde embarked on a transformation agendaaimed at building a self-sustaining high growth economythrough policy reforms, private sector led growth, infra-structure development, and institutional changes. TheGovernment recognizes that in order to alleviate povertyit must continue to improve performance and accelerateimportant reforms.The Government and MCC entered into a MillenniumChallenge Compact in 2005 with the objective of increas-ing agricultural production, improving infrastructure,and developing the private sector. The Parties success-fully completed the first compact, representing a newform of partnership with donors for the country. Basedon Cape Verde’s continued performance on MCC’s eligi-bility criteria and the successful implementation of thefirst compact, the MCC Board selected Cape Verde aseligible for a second compact in December 2009.2. Constraints Analysis and Consultative Process.In January 2010, the Government assembled a taskforce under the Ministry of Finance and Planning todevelop a second compact. The task force conducted aconstraints analysis and through extensive consultationwith national and local government stakeholders, civilsociety, and private sector identified both the water andsanitation and land sectors as critical constraints toachieving the country’s economic transformation agenda.3. Program Objective.The Compact Goal is to reduce poverty through economicgrowth in Cape Verde. MCC’s assistance will be providedin a manner that strengthens good governance, economicfreedom, and investments in the people of Cape Verde.The Program Objectives are to reduce the costs upon theeconomyofinefficientlyprovidedpublicservicesandremoveinstitutional conditions that impede private sector invest-ment. The Program consists of the Water, Sanitation andHygiene Project and the Land Management for InvestmentProject, as further described in this Annex I.B. DESCRIPTION OF PROJECTSSet forth below is a description of each of the Projectsthat the Government will implement, or cause to beimplemented, using MCC Funding to advance the ap-plicable Project Objectives. Specific activities that willbe undertaken within each Project (each, an “Activity”),including sub-activities, are also described.1. Water, Sanitation and Hygiene Project.(a) Background.Cape Verde is an extremely water-scarce countryand relies heavily on desalinization of water, which isan expensive and energy-intensive process. The water,sanitation and hygiene (“WASH”) sector in Cape Verde ischaracterized by relatively poor levels of service includingintermittent water supply. Domestic water consump-tion per capita is approximately 35 liters per day, halfthat of a lower-middle income peer group of countries,and barely above subsistence levels. As a result, CapeVerde has one of the highest water tariffs in Africa andthe world. The poor, and particularly female-headedhouseholds, are especially vulnerable as only 9 percentof poor households have access to the networked publicwater supply. Additionally, Cape Verde is not on trackto meet its Millennium Development Goal for sanitation.Low levels of water supply, combined with a population inwhich over 50 percent is without any access to improvedsanitation services, results in significant public healthproblems, including diarrhea, malaria, and dengue.The WASH sector is marked by dispersed responsibili-ties across a large number of stakeholders, skewed incen-tives, a lack of institutional accountability, fragmentedand overlapping authority, and conflicting legislationwhich impedes good planning and efficient operationsin the sector. The Government has recently undertakena number of important preliminary steps to improvethe legal and regulatory framework. However, furthersignificant reform and restructuring of the sector arerequired to ensure that the benefits of planned infra-structure improvements can be achieved.(b) Summary of Project and Activities.The objective of the Water, Sanitation and HygieneProject (the “WASH Project”) is to install a financiallysound, transparent and accountable institutional basisfor the delivery of water and sanitation services to CapeVerdean households and firms by: reforming nationalpolicy and regulatory institutions; transforming ineffi-cient utilities into autonomous corporate entities operat-ing on a commercial basis; and improving the quality andreach of infrastructure in the sector. The WASH Projectis comprised of three Activities as described below.(i) National Institutional and RegulatoryReform Activity.The Government is committed to undertaking insti-tutional and regulatory reform activities at the nationallevel to improve planning systems and regulatory pro-cesses including tariff setting (the “National Institu-tional and Regulatory Reform Activity”). Duringthe Compact Term, the Government will create a newNational Agency for Water and Sanitation (“ANAS”),which will be responsible for policy and planning of allwater resources, domestic water supply, wastewater, andsanitation. ANAS will be guided by a National Waterand Sanitation Council (“CNAS”), where core ministries,municipalities, private sector and civil society will berepresented and will ensure that sector policies arehttps://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. 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  11. 11. I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012 1275aligned with overall government policy direction. TheGovernment will also strengthen the existing EconomicRegulatory Agency (“ARE”) to better regulate economicand technical aspects of the WASH sector, includingtariff setting. Finally, the General Directorate of theEnvironment (“DGA”) will expand its existing func-tions on environmental protection, to include water andwastewater quality. The Government will support theoperational costs for the new and strengthened agencieswith its own resources.MCC will support the design and operationalization ofthe proposed institutional changes with MCC Fundingfor the following three sub-activities:(A) Improve allocation of resources, planning, andcoordination. This sub-activity aims to improve the al-location of resources mobilized for the sector, improvethe coordination of sector activities and improve sec-tor planning with a clear definition of sector priorities.During the project development process and to facilitateimplementation of this Compact, MCC agreed to supportthe development of a Strategic National Master Plan(“Master Plan”) and strategic environmental and socialassessment (“SESA”) for the WASH sector. This docu-ment will serve as the basis for sector planning, resourceallocation, and investment coordination.Under the Compact, MCC Funding will support:(1) A review of all relevant legislation, regulationsand organizational documents pertaining tothe establishment and operations of CNAS,ANAS and the strengthening of ARE andDGA, which will assist the Government indrafting new legislation and regulations forthe WASH sector;(2) Technical assistance, capacity building andtraining to enable ANAS, CNAS, ARE,and DGA to execute their new roles andresponsibilities;(3) Technical assistance and resources for theintegration of gender and social analysis andobjectives into national policies, planning,human resources, and budgets, includingestablishment of a social and gender unitin ANAS, as well as the development ofconsultative processes, public informationstrategies, and opportunities for privatesector participation; and(4) Information, education, and communication(“IEC”) activities focused on: (a) identifyingwater, sanitation, and hygiene practices thatshould inform national master planning forthe sector; (b) encouraging public input on newregulations and planning; (c) articulating the roleof the public in the tariff setting process; and (d)creating a culture of paying for services amongwater and sanitation users.(B) Support transparent and fair tariff setting. Thissub-activity will support the move to transparent andfair tariff setting, to better reflect the cost of service, andto improve the financial well-being and sustainability ofutilities. Tariff support will also include assistance forthe formation of appropriate pro-poor tariff policies. Spe-cifically, MCC Funding will assess the current financialstate of utilities nationally, and on Santiago particularly,with the goal of identifying the true cost of the existingsystemic sector inefficiencies, impacts of these costsand inefficiencies on cost of service rates, and tariff andregulatory strategies for transitioning to a financiallyself-sustaining system.(C) Improve water quality standards and environ-mental oversight. MCC Funding will support technicalassistance to DGA for the development of existing func-tions on environmental protection, with an emphasis onpotable water and wastewater quality, and to developnew water quality and wastewater discharge standards,including appropriate wastewater treatment technolo-gies and associated standards for wastewater reuse.(ii) Utility Reform Activity.The Utility Reform Activity will promote the transitionof existing service providers to increased financial andadministrative autonomy and operation based on com-mercial principles (the “Utility Reform Activity”). MCCwill focus its assistance on the Island of Santiago to sup-port the formation of a new, multi-municipal utility thatcovers all or most of the island (“Aguas de Santiago”).The Parties expect that this Activity will create a blue-print for utilities in other parts of the country.(A) Encourage corporatization of utilities. MCC Fundingwill support the design and establishment of Aguas deSantiago, including a legal review and the preparationof organizational documents, staffing requirements,position descriptions, internal policies and operatingprocedures, and a plan for recruiting and transitioningstaff to the new utility.(B) Strengthen management and planning of Aguas deSantiago. MCC Funding will support:(1) A long-term strategic investment and businessplan, capital improvement, and businessplans for the water and sanitation sector onSantiago pursuant to the guidance emergingfrom the Master Plan and SESA. Whilethese plans will be long-term and strategicin nature, they will assess the conditionof existing water and sanitation systemsand identify any immediate infrastructureand operational needs. The plans will alsoimprove the management of water resourcesby ensuring an integrated approach toinfrastructure planning;(2) Technical assistance for water sector utilityoperations and management, includingtechnical, financial, commercial, legal,environmental, investment planning,procurement, contract management, andsocial and gender practices;(3) The acquisition and implementation of, andtraining on, management informationsystems and identified hardware andhttps://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089
  12. 12. 1276 I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012software, such as GIS, asset management,billing and customer management systems,and office equipment;(4) IEC campaigns that include outreach byutilities and/or NGOs. The objective of theIEC campaigns is to improve communicationbetween the utility and its customers, witha focus on developing an understanding ofthe cost of services and culture of paymentby users, promoting efficient water use andconservation, and other aspects necessaryto increase impact and sustainability of thereforms; and(5) Technical and vocational education andtraining (“TVET”) to the staff of Aguas deSantiago to improve their ability to carry outtheir roles and responsibilities and to anyredundant staff to assist their transition tonew functions and responsibilities in othergovernment agencies or in the private sector.(C) Reduce commercial losses in Santiago. Non-rev-enue water (“NRW”) at existing municipal water andsanitation entities (known as “SAAS”) in Santiago isestimated to be approximately 50 percent. MCC Fund-ing will support a NRW study for service providers onSantiago, SAAS, the Water Distribution Agency of Praia(“ADA”), and ELECTRA, the national electricity utilitywith responsibility for water provision in certain munici-palities – in order to provide better estimates of the levelof losses in each service provider, assess the reductionslikely achievable through improved commercial and tech-nical management practices, and identify potential solu-tions to improve both technical and commercial aspectsof NRW management. The study will provide a detailedstrategy, and identify specific management actions andphysical investments, for reducing NRW. Support fromsub-activity (ii)(B) will be provided to improve customerbilling databases, asset inventories, and other businessoperational elements that contribute to high NRW.Subject to prior approval by MCC, MCC Funding may beused to implement priority investments identified in theaforementioned study to reduce NRW losses for Aguasde Santiago under this sub-activity; these may includebut are not limited to instituting demand managementareas and meter replacement programs.MCC Funding for the Utility Reform Activity is subjectto the following conditions:(1) Prior to disbursement of Program Fundingfor the Utility Reform Activity, the SAASshall have committed to the transition toan independently operated and managedAguas de Santiago in a memorandum ofunderstanding among MAHOT and themunicipalities or such other documentacceptable to the Government and MCC; and(2) Continued support for the sub-activitiesdescribed in paragraphs (ii)(B) and (ii)(C)above is conditioned on the Governmentensuring that Aguas de Santiago hassufficient equity contributions, or other non-reimbursable funding from its shareholdersto support its operations and working capitalneeds, in accordance with the economic andfinancial viability study undertaken in sub-activity (i)(B) above and satisfactory to MCC.(iii) Infrastructure Grant Facility.In order to promote continued national level reform,incentivize and reward utility reform, and improveinvestment planning, the Parties will support the es-tablishment of an Infrastructure Grant Facility (the“IGF”) to fund much needed infrastructure and capitalimprovements in the WASH sector.MCC will make funds available to the IGF in threetranches as national policy and utility reform conditionshave been met. The IGF will provide grants on a com-petitive basis to utilities that qualify based on continuousimprovement on commercialization of operations. Grantapplications from qualified utilities will be evaluated basedon a set of transparent financial, economic, technical, op-erational, environmental, and gender and social criteria.The IGF will provide grants for three categories ofprojects: Category I – studies and technical assistance;Category II – existing network improvements and off-network improvements; and Category III – networkexpansion. The categories reflect the level of complexityto implement these projects, and utility applicants will berequired to demonstrate incremental progress towardscorporatization to be eligible for funding under Catego-ries II and III. Category II and III projects will includefinancial support for IEC and TVET activities connectedto specific infrastructure projects as identified duringthe design phase. The IGF will have a pool of funds toassist poor and female-headed households to overcomebarriers to WASH services.The eligibility requirements, project selection criteria,and operations and management procedures of the IGF,will be set forth in an operations manual to be approvedby the Government and MCC. The Parties expect thatthe IGF will initially be managed by MCA-Cape Verde IIwith the support of advisory services as the Parties deemnecessary and eventually transferred to ANAS when itis deemed to have sufficient capacity to administer andmanage the facility. A technical evaluation panel willcarry out detailed evaluations, provide technical as-sessments, and score proposed projects. An executivecommittee of the MCA-Cape Verde II Steering Commit-tee will oversee the IGF and approve projects that passestablished selection criteria and technical evaluation.The amount of MCC funds allocated for feasibility studiesunder Category I of the IGF will not exceed 20 percent,unless otherwise agreed by MCC. Each grant will alsobe subject to MCC no objection.MCC Funding will also support the development of anenvironmental and social management framework for theIGF, acceptable to the Government and MCC, to definethe guiding environmental and social principles and tocreate procedures that will be included in the operationsmanual for assessing proposals against these objectives.https://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089
  13. 13. I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012 1277As set forth more specifically in the Program Imple-mentation Agreement, MCC Funding for the IGF will bemade available incrementally subject to the achievementof reform milestones.(A) Prior to making the first tranche of funding avail-able under the IGF: (1) the operations manual for theIGF shall have been approved by MCA-Cape Verde II andMCC; and (2) ANAS shall have been created and CNASshall have adopted the Master Plan;(B) Prior to making the second tranche of fundingavailable under the IGF, Aguas de Santiago shall havebeen created as an independent, corporatized entity thatis subject to the regulatory jurisdiction of ARE and AREwill have in place a tariff mechanism that is based oncost-of-service by rate class and which addresses pro-poortariffs; and(C) Prior to making the third tranche of funding avail-able under the IGF, the Government shall make an ap-propriate matching contribution to the IGF as per theagreed Government contribution schedule in the ProgramImplementation Agreement.(c) Beneficiaries.The Parties expect that together the National Insti-tutional and Regulatory Reform and Utility Reform Ac-tivities will initially benefit the approximately 278,000people living on the Island of Santiago, as a result ofreductions in the average cost of water supply and com-mercial losses by utilities and the incremental growtheffect of shifting government resources from less pro-ductive to more productive spending. As utility reformextends throughout the other islands during and afterthe Compact, the entire population of Cape Verde shouldeventually benefit from these Activities.The benefits of the IGF will depend on the returns ofproposals presented for financing. To be selected, eachproposal must demonstrate an expected economic rateof return of at least 12 percent. Based on estimates ofpotential projects, the Parties expect that the IGF willbenefit on average a population of 48,000 (approximately11,000 households), or just over 10 percent of the popula-tion of Cape Verde.(d) Gender and Social Integration.The Parties agree to integrate gender and social fac-tors in the WASH Project into each of the core Activities.Gender and social analyses and objectives are currentlylargely absent from WASH sector policies and planning,despite considerable inequalities in access to water andsanitation. MCC Funding will support technical assis-tance and resources for the integration of gender andsocial analysis and objectives into policies, planning,human resources, and budgets, at both the national andutility levels.Given the central role that women and girls play in waterand sanitation at the household level, ensuring that in-frastructure investments are selected and designed withdue attention to social and gender considerations and ap-propriate IEC are critical to meeting the ultimate impactobjectives of the IGF. Social and gender considerationswill thus be embedded in the project selection criteriafor the IGF, and the IGF will support IEC activities.Training and employment opportunities for women inthe WASH sector will also be promoted through supportfor TVET activities at national, utility, and I(e)Environmental and Social Assessment.The National Institutional and Regulatory Reformand the Utility Reform Activities have been classified asCategory C projects in accordance with MCC Environ-mental Guidelines. These Activities are unlikely to haveadverse environmental and social impacts. MCC reservesthe right, however, to require specific environmentaland social impact studies and mitigation measures. Asan initial step, MCC has provided pre-Compact fundingfor a SESA in conjunction with the Master Plan for theIsland of Santiago. MCC Funding will also support ca-pacity building at DGA to strengthen Cape Verde’s waterquality standards and improve environmental oversight.The IGF has been classified as a Category D projectsince specific projects and activities will be fundedthrough a facility. Based on the potential pipeline of proj-ects, certain activities may potentially result in adverseenvironmental and social impacts, if appropriate mitiga-tion measures are not taken. Operational procedures andan environmental and social management frameworkwill be established to ensure that environmental andsocial risks and impacts are appropriately considered andmanaged in accordance with the laws and regulations inCape Verde and MCC Environmental Guidelines.(f) Sustainability.The National Institutional and Regulatory Reformand Utility Reform Activities of the WASH Project arespecifically targeted at improving the sustainability ofthe sector by addressing key constraints in the policyand regulatory environment and at the operational level.One of the challenges to maintaining and sustaining thereform process is strong civic engagement. To that end,the Activities include resources for broad-based publicconsultation and engagement but also focus efforts onensuring that women and disadvantaged groups arebeing engaged at the earliest stages of planning all theway through construction.(g) Donor Coordination.The WASH Project has and will continue to benefitfrom coordination among the Parties and other donors.Whereas in the past the sector has been marked by alack of integration at the Government and donor levels,and whereas the Government has made recent stridesin setting the stage for sector reform and donors haveresponded by improving their internal coordination andtheir coordination with the Government, the Partiesacknowledge that in the context of limited resourcesimproved government management and coordinationwith its partners is necessary to the successful imple-mentation of the WASH Project. The Parties agree thattransparency and coordination are essential elementsof meeting the ambitious reform agenda established bythe Government.https://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089
  14. 14. 1278 I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 20122. Land Management for Investment Project.(a) Background.In Cape Verde, no conclusive source of informationabout land property exists. Two different land registrieseach contain partial information about only a limitedshare of the country’s land parcels. Additional recordssystems hold information about state-owned land. Nosource contains complete map-based information indicat-ing actual location of a parcel of land over which a rightis claimed. Confusion over ownership and boundarieshas resulted in unauthorized land sales and the delay orcancellation of public as well as private investment proj-ects and limits the ability of small firms and householdsto create value and increase incomes through investmentin their property. The land rights registration process istime-consuming and costly for all land users, hamperingdomestic and foreign investment and economic growth.The Government seeks to create a single reliable andmore easily accessible source of land rights and landboundaries information in order to strengthen CapeVerde’s investment climate and to reduce land rightsregistration and transaction time and cost.(b) Summary of Project and Activities.The objective of the Land Management for InvestmentProject (the “Land Project”) is to to reduce the time re-quired for establishing secure property rights and to estab-lish more conclusive land information in areas of near-termhigh development potential in Cape Verde by: refining thelegal, institutional and procedural environment to createconditions for increased reliability of land information,greater efficiency in land administration transactions,and strengthened protection of land rights; developing andimplementinganewlandinformationmanagementsystem;and clarifying parcel rights and boundaries on targetedislands with high investment potential.(i)Legal and Institutional Foundations Activity.The Legal and Institutional Foundations Activity (the“Foundations Activity”) will consist of the two principalsub-activities described below.(A) Developlegal,institutional,andproceduralfoundations.Under this sub-activity, MCC Funding will support:(1) Legal and regulatory analysis, recommendations,and drafting of regulatory texts andprocedural manuals for improved operationsand coordination by land administrationinstitutions over the long term;(2) Design of legal, regulatory and procedural toolsand manuals enabling implementation andachievement of the objectives of the Rights andBoundaries Activity (described below); and(3) Stakeholder workshops and public outreach.(B) Develop and install land information and transactionsystems. Underthissub-activityMCCFundingwillsupport:(1) Technical assistance to computerize and linkexisting information about land rights andland parcels held in the paper-based Ministryof Justice registry system and in differentmunicipal departments;(2) Design of a computerized land informationsystem that will be used by the Ministry ofJustice’s Registry and Notary and by municipalgovernments to efficiently manage andaccess information within their area of legalcompetence;(3) System programming work consistent with thenew institutional and procedural arrangementsand data access protocols; and(4) Installation of the system, acquisition of relevanthardware and software for system operations,training for users, and public outreach.(ii) Rights and Boundaries Activity.Building on the Foundations Activity, the Rights andBoundaries Activity (the “Rights and Boundaries Ac-tivity”) will support actual clarification of parcel rightsand boundaries in targeted islands with high tourisminvestment potential, including through capacity build-ing of key institutions.Subject to the satisfaction of the conditions set forthbelow, MCC Funding will support: communications; out-reach and training, including on topics of environmentaland social risk management and planning and geographicinformation production and management; office-basedlinking of rights and boundary information where dataexists; field-based clarification of boundaries throughmap consultation and surveying; field-based clarificationof rights through consultation of existing records andinformation gathering and consultation with currentoccupants; rights adjudication recommendations madebased on regulations and procedures agreed as a resultof the Foundations Activity; public noticing of rights andboundary claims and requirements/opportunities forsubmission of or objection to claims; dispute resolutionassistance; utilization of a resettlement policy frameworktool as needed per International Finance Corporation,Performance Standard 5; registration of rights that canbe adjudicated; and inputting of final boundary and rightsinformation into the land information and transactionmanagement system created under the FoundationsActivity.The Rights and Boundaries Activity will cover areas ofland claimed or held as private property, as property ofthe national government, and as property of municipalgovernments. The Activity will commence as a pilot onthe island of Sal and be scaled to up to three other targetislands subject to satisfaction of the conditions below.Should the Parties agree that additional funds remainin the Rights and Boundaries Activity after completionof Sal and commitment of sufficient funding (includingadequate contingencies) for the three additional islands,the Parties may allocate any remaining funds to imple-ment the Activity on other islands, based on criteria tobe agreed by MCC and MCA-Cape Verde II.https://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089
  15. 15. I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012 1279MCC Funding for fieldwork and fieldwork-related train-ing under this Activity is subject to the following conditions:(A) Any new or amended laws or regulatory texts(regulations, ordinances and directives)determined to be necessary under theFoundations Activity, shall have been adoptedby the Parliament or the relevant Governmentministry and be in full force and effect;(B) An operations manual for the Rights andBoundaries Activity fieldwork satisfactoryto MCC, including environmental and socialsafeguards and provisions, shall have beencompleted and adopted by the Ministry ofJustice and the Ministry of Environment,Housing and Territorial Managementthrough such instrument as the Parties agreeis required to give full force and effect to suchmanual; and(C) Prior to disbursement of MCC Funding toimplement the Activity on additional islands, theGovernment shall have completed the activityon Sal island, to a degree satisfactory to MCC,and any modifications to the implementationapproach for remaining islands agreed shall havebeen agreed among MCC, the Government andMCA-Cape Verde II.(c) Beneficiaries.Based on estimates of incremental employment oppor-tunities, the Parties expect that at least 3,000 households(approximately 13,000 people) will benefit from increasedtourism development as a consequence of project inter-ventions. This number excludes the current populationon the islands who are expected to benefit from reducedtime and cost of land registration and more conclusiverights and boundaries information. The benefits wouldbe expected to result from cost savings, from increasedinvestment in property, and from increased propertyvalues. Additional benefits and beneficiaries will bemonitored during the Compact Term.(d) Environmental and Social Mitigation Measures.The Land Project has been classified as a Category Bproject in accordance with MCC’s Environmental Guide-lines. This is based on a number of risks and potentialimpacts, which the Parties expect to mitigate throughenvironmental and social (including gender-based) ap-proaches integrated into the Land Project. The Partieswill integrate several safeguards into the Rights andBoundaries Activity in an effort to minimize the riskof claimants losing rights given the imprecisions, gaps,and potential for overlaps in existing land rights infor-mation. The outreach activities will support increasedpublic awareness, particularly among vulnerable popula-tions, of the types of land rights and the procedures andresources available for formalizing those rights. Theprocedures developed under the Foundations Activityand the resettlement policy framework will assist stake-holders with dispute resolution, with clarifying linksbetween planning and zoning requirements and rightsand responsibilities of rights holders, and with adequateanalysis, planning and decision-making in contexts ofinformal occupation or of secondary rights, particularlyfor vulnerable groups.Environmental and social risks related to increasedeconomic development induced by the Land Project willbe mitigated by public consultation and outreach, and bythe development of tools for improved land administra-tion and for integration of land information. This willhelp relevant institutions better manage land use andland rights over the long term. The Parties will evaluateways in which existing environmental and social data,information on legal requirements associated with publiclands, protected areas, critical habitats, and encum-brances can be built into land information systems to aidmunicipal and tourism planning, including integrationof social safeguards.(e) Sustainability.Institutional and financial sustainability is fundamentalto achieving the results of the Land Project. MCC hasprovided pre-Compact support for detailed analyses offinancial sustainability drivers, projected revenue flows,and workforce requirements for the land informationmanagement and transaction systems. The Parties willreview the findings and recommendations of these studiesand agree to modify approaches and methodologies as ap-propriate, to assure that system design is commensuratewith the Government’s capacity to use and maintain thesystem over the long term.The Land Project will assure that legal, regulatory, andmethodological approaches to collecting and maintainingboundary and rights information over time are consistentwith principles of cost-effectiveness and equitable accessto land administration services.(f) Donor Coordination.The Land Project builds from recent investments inthe Government’s land sector initiatives by Spain, theCanary Islands, and the World Bank. A portion of theinvestment from other donors has supported specific landsector studies, including one completed by the Institutefor Liberty and Democracy. Additionally, because theRights and Boundaries Activities is a pilot that can bescaled up and implemented throughout the country, theGovernment is committed to continued donor coordina-tion to identify additional funding to support rights andboundary clarification on other islands.C. IMPLEMENTATION FRAMEWORK1. Overview.The implementation framework and the plan for en-suring adequate governance, oversight, management,monitoring and evaluation, and fiscal accountability forthe use of MCC Funding are summarized below. MCCand the Government will enter into a Program Imple-mentation Agreement, and may enter into such otherSupplemental Agreements and Implementation Lettersin furtherance of this Compact as the Parties deem neces-sary, all of which, together with this Compact, set out therights, responsibilities, duties and other terms relatingto the implementation of the Program.https://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089
  16. 16. 1280 I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 20122. MCC.MCC will take all appropriate actions to carry out itsresponsibilities in connection with this Compact andthe Program Implementation Agreement, including theexercise of its approval rights in connection with theimplementation of the Program.3. MCA-Cape Verde II.In accordance with Section 3.2(b) of this Compact andthe Program Implementation Agreement, MCA-CapeVerde II will act on the Government’s behalf to imple-ment the Program and to exercise and perform theGovernment’s rights and responsibilities with respectto the oversight, management, monitoring and evalu-ation, and implementation of the Program, including,without limitation, managing the implementation ofProjects and their Activities, allocating resources, andmanaging procurements. The Government will ensurethat MCA-Cape Verde II takes all appropriate actionsto implement the Program, including the exercise andperformance of the rights and responsibilities designatedto it by the Government pursuant to this Compact andthe Program Implementation Agreement. Without limit-ing the foregoing, the Government will also ensure thatMCA-Cape Verde II has full decision-making autonomy,including, inter alia, the ability, without consultationwith, or the consent or approval of, any other party, to:(i) enter into contracts in its own name; (ii) sue and besued; (iii) establish Permitted Accounts in a financialinstitution in the name of MCA-Cape Verde II and holdMCC Funding in such accounts; (iv) expend MCC Fund-ing; (v) engage a fiscal agent who will act on behalf ofMCA-Cape Verde II on terms acceptable to MCC; (vi)engage one or more procurement agents who will acton behalf of MCA-Cape Verde II, on terms acceptable toMCC, to manage the acquisition of the goods, works, andservices required by MCA-Cape Verde II to implementthe Program; and (vii) engage one or more auditors toconduct audits of its accounts. The Government will takethe necessary actions to establish, operate, manage andmaintain MCA-Cape Verde II, in accordance with theapplicable conditions precedent to the disbursement ofCompact Implementation Funding set forth in Annex IVto this Compact.The Government will create MCA – Cape Verde II as alegally established program management unit under theMinistry of Finance. MCA-Cape Verde II will be formedthrough a cabinet resolution, which resolution will beincluded in the Program Implementation Agreement.MCA-Cape Verde II will be created in accordance withMCC’s Guidelines for Accountable Entities and Imple-mentation Structures, published on the MCC Website(the “Governance Guidelines”), and will be in formand substance satisfactory to MCC. MCA-Cape Verde II,on behalf of the Government, will administer the MCCFunding. MCA-Cape Verde II will consist of the followingbodies: a steering committee (the “Steering Commit-tee”); a management team (the “Management Unit”);and two stakeholders committees (each a “StakeholdersCommittee” and, collectively, the “Stakeholders Com-mittees”). As a recipient of MCC Funding, MCA-CapeVerde II will be subject to MCC audit requirements.MCA-Cape Verde II will be based in Praia, Cape Verde.(a) Steering Committee.(i) Composition. The Steering Committee will haveultimate responsibility for the oversight, direction, anddecisions of MCA – Cape Verde II, as well as the overallimplementation of the Program. The Parties expectthat the Steering Committee will initially be comprisedof nine voting members consisting of representatives ofnational and municipal government, civil society andprivate sector and two non-voting observers. Member-ship to the Steering Committee is anticipated to includethe following voting members: Minister of Finance andPlanning; Minister of Environment, Housing and LandPlanning; Minister of Justice; Minister of Rural Devel-opment; Chief Advisor to the Prime Minister; Presidentof the National Municipalities Association; Presidentof the Chamber of Commerce Association; Presidentof the Tourism Chamber; and President of the Non-Governmental Organization Association. The SteeringCommittee will also include the following non-votingobservers: a representative of the Ministry of ExternalAffairs; and the MCC Resident Country Director. TheSteering Committee will be chaired by the Minister ofFinance and Planning.(ii) Roles and Responsibilities. The Steering Commit-tee will be responsible for the oversight, direction, anddecisions of MCA-Cape Verde II, as well as the overallimplementation of the Program. The Steering Commit-tee will hold regular meetings in accordance with theGovernance Guidelines, at a minimum once per quarter.The specific roles of the voting members and non-votingobservers will be set forth in the MCA-Cape Verde IIRegulations. On at least an annual basis or as otherwiserequired by the Government, the Steering Committee willreport to the Government on the status and progress ofthe Compact regarding implementation, financial mat-ters, procurements, and other matters identified by theGovernment.(b) Management Unit.(i) Composition. The Management Unit will be ledby a competitively selected Managing Director and isexpected to be initially comprised of the following full-time officers: Managing Director; Administration andFinance Director; Economist/Monitoring and EvaluationManager; Water and Sanitation Project Manager; LandProject Manager; Gender & Social Manager; Environ-ment Manager; Policy Reform and Institutional Devel-opment Manager; and Procurement Manager. Thesekey officers will be supported by appropriate additionalstaff to enable the Management Unit to execute its rolesand responsibilities. Such additional staff is expectedto include: Procurement Specialist; Administrative andFinancial Specialist; and Communication Specialist,among others.(ii) Roles and Responsibilities. With oversight from theSteering Committee, the Management Unit will have theprincipal responsibility for the day-to-day managementof the Program, including those roles and responsibili-ties specifically set forth in the Program ImplementationAgreement. The Management Unit will serve as theprincipal link between MCC and the Government, andwill be accountable for the successful execution of theProgram, each Project, and each Activity.https://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089
  17. 17. I SÉRIE — NO63 «B. O.» DA REPÚBLICA DE CABO VERDE — 21 DE NOVEMBRO DE 2012 1281(c) Stakeholders Committees.(i) Composition. Program beneficiaries will be rep-resented by two project-level Stakeholder Committeescomposed of representatives from relevant ministries,municipalities, private sector and non-governmentalorganizations as agreed by the Government and MCC.The two Stakeholders Committees will provide input tothe Steering Committee and the Management Unit onmatters that relate to the Program, promoting transpar-ency and ongoing consultation.(ii) Roles and Responsibilities. Consistent with theGovernance Guidelines, the Stakeholders Committeeswill be responsible for continuing the consultative processthroughout implementation of the Program. While theStakeholders Committees will not have any decision-making authority, they will be responsible for, inter alia,reviewing, at the request of the Steering Committee orthe Management Unit, certain reports, agreements, anddocuments related to the implementation of the Programin order to provide input to MCA-Cape Verde II regardingthe implementation of the Program.4. Environmental and Social Safeguards.All of the Projects will be implemented in compliancewith the MCC Environmental Guidelines, the MCC Gen-der Policy, the MCC Gender Integration Guidelines, andthe International Finance Corporation’s PerformanceStandards. Any involuntary resettlement will be carriedout in accordance with the IFC Performance Standard 5on Land Acquisition and Involuntary Resettlement in amanner acceptable to MCC. In the case of retrenchmentsand redundancies resulting from the implementation ofthe Projects, the Government will ensure that the Proj-ects comply with national labor laws and best practicesfor managing retrenchment according to the IFC GoodPractice Note: Managing Retrenchment. The Govern-ment also will ensure that the Projects comply with allnational environmental laws and regulations, licensesand permits, except to the extent such compliance wouldbe inconsistent with this Compact.Specifically, the Government will: cooperate with orcomplete, as the case may be, any ongoing environmentaland social impact assessments, or if necessary undertakeand complete any additional environmental and social as-sessments, environment and social management frame-works, environmental and social management plans,environmental and social audits, resettlement policyframeworks, and resettlement action plans requiredunder the laws of Cape Verde, the MCC EnvironmentalGuidelines, the MCC Gender Integration Guidelines,this Compact, the Program Implementation Agreement,or any other Supplemental Agreement, or as otherwiserequired by MCC, each in form and substance satisfactoryto MCC; ensure that Project-specific environmental andsocial management plans are developed and all relevantmeasures contained in such plans are integrated intoproject design, the applicable procurement documentsand associated finalized contracts, in each case in formand substance satisfactory to MCC; and implement toMCC’s satisfaction appropriate environmental and socialmitigation measures identified in such assessments orplans or developed to address environmental and socialissues identified during implementation. Unless MCCagrees otherwise in writing, the Government will fundall necessary costs of environmental and social mitiga-tion measures (including, without limitation, costs ofresettlement) not specifically provided for, or that exceedthe MCC Funding specifically allocated for such costs, inthe Detailed Financial Plan for any Project.To maximize the positive social impacts of the Projects,address cross-cutting social and gender issues such ashuman trafficking, child and forced labor, and HIV/AIDS,and to ensure compliance with the MCC Gender Policyand MCC Gender Integration Guidelines, MCA-CapeVerde II, on behalf of the Government, will develop acomprehensive social and gender integration plan which,at a minimum, incorporates the findings of a comprehen-sive gender analysis, identifies approaches for regular,meaningful and inclusive consultations with women andother vulnerable/underrepresented groups, consolidatesthe findings and recommendations of Project-specificsocial and gender analyses and sets forth strategies forincorporating findings of the social and gender analy-ses into final Project designs, as appropriate (“Socialand Gender Integration Plan”); and ensure, throughmonitoring and coordination during implementation,that final Activity designs, construction tender docu-ments, other bidding documents, implementation plans,and M&E plans are consistent with and incorporate theoutcomes of the social and gender analyses and Socialand Gender Integration Plan.5. Implementing Entities.Subject to the terms and conditions of this Compact,the Program Implementation Agreement, and any otherrelated agreement entered into in connection with thisCompact, the Government, through MCA-Cape Verde II,may engage one or more entities of the Government toimplement or assist in the implementation of any Projector Activity (or a component thereof) in furtherance ofthis Compact (each, an “Implementing Entity”). Theappointment of any Implementing Entity will be subjectto review and approval by MCC. The Government willensure that the roles and responsibilities of each Imple-menting Entity and other appropriate terms are set forthin an agreement, in form and substance satisfactory toMCC (each an “Implementing Entity Agreement”).6. Fiscal Agent.The Ministry of Finance and Planning will be respon-sible for assisting MCA-Cape Verde II with fiscal man-agement and ensuring appropriate fiscal accountabilityof MCC Funding (in such capacity, the “Fiscal Agent”).The duties of the Fiscal Agent will include those set forthin the Program Implementation Agreement and in suchagreements or documents as MCA-Cape Verde II entersinto with the Fiscal Agent, which agreement shall be inform and substance satisfactory to MCC. If the FiscalAgent is not able to perform its duties in compliance withMCC standards, MCC may require that MCA-Cape VerdeII engage a new fiscal agent to carry out those duties.7. Procurement.The Parties expect that a dedicated unit within MCA-Cape Verde II will conduct and certify specified procure-ment activities in furtherance of this Compact withhttps://kiosk.incv.cv AF887B88-1D7C-4A12-A53C-56F33A6480DDDocumento descarregado pelo utilizador Adilson (10.8.0.12) em 26-11-2012 10:12:25.© Todos os direitos reservados. A cópia ou distribuição não autorizada é proibida.1615000002089

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