Daily Rules, Proposed Rules, and Notices of the Federal Government
The United Republic of Tanzania, comprised of the mainland and Zanzibar, is strategically located in East Africa bordering the Indian Ocean and eight nations.
The overall goal of the Program is to stimulate economic growth, increase household incomes, and raise the quality of life through targeted infrastructure investments in transport, energy, and water. The specific objectives of the Program are to increase agricultural activity and to increase business investment and spending by visitors through activities in the transport sector (Transport Sector Project), to increase investment, economic output and household productivity in several regions through activities in the energy sector (Energy Sector Project), and to increase investment in human and physical capital in two large cities through activities in the water sector (Water Sector Project) (each, a Project).
The table below shows the total budget and an estimated investment plan for the Program.
Transport infrastructure in Tanzania is inadequate to meet the needs of the country's widely dispersed population. The Transport Sector Project aims to reduce travel times and provide access to basic social services by rehabilitating a portfolio of trunk roads on the mainland and the airport on Mafia Island, both originating from the GoT's Transport Sector Investment Program (TSIP) for mainland Tanzania, as well as selected rural roads on Pemba Island in Zanzibar. To ensure the sustainability of these investments, the Project will provide technical assistance to enhance the maintenance capacity of the GoT in both the road and airport sectors.
Currently in Tanzania, industry, businesses, and households suffer from either a lack of energy services or unreliable service. Where electricity is available, the quality of supply is poor, and blackouts and other service interruptions are common. The Energy Sector Project will improve electricity service and coverage in Tanzania through the addition of new power generation, transmission and distribution capacity, as well as through much needed reinforcement of the existing network. The Project is expected to result in improved reliability and quality of electric power, and the extension of service to communities and businesses not currently served.
Tanzania faces a serious shortage of access to potable water, resulting in a high incidence of water-related disease, decreased workforce productivity, and a challenge for business growth. To address these issues, the GoT, in coordination with other stakeholders (including donors) developed a 20-year program for transforming the sector known as the Water Sector Development Program (WSDP). The WSDP identifies all activities under the Water Sector Project as priorities. The Water Sector Project focuses on improving water supply infrastructure in Dar es Salaam and Morogoro, and is designed to increase the quantity and reliability of potable water for domestic and commercial use. By increasing the volume of water supply, the Water Sector Project is expected to reduce the prevalence of water-related disease, to increase time available for productive activities such as education, and to promote greater investments in physical capital.
The Program's investments in the transport, energy, and water sectors are critical to Tanzania's development.
First, poor transport infrastructure is a constraint to Tanzanian economic growth. In Tanzania, roads are essential for commerce (especially agricultural commerce), and for trade between Tanzania and its neighboring countries, including Kenya, Mozambique and Malawi. The rehabilitation of the roads, therefore, will help connect road users and communities along the rehabilitated roads with markets, schools and health clinics, and promote the expansion of economic opportunities by reducing transport costs and thus increasing the economic viability of various local products, including cash crops. The rehabilitation of the airport on Mafia Island will allow for easier, more efficient, and safer access to the island, resulting in increased tourist and business travel to and from the mainland, leading to additional income on the island.
Second, an inadequate supply of energy is also a constraint to private investment and economic growth in Tanzania. Energy is essential for activities in industry, agriculture, transport and water service supply, and for the provision of social services such as education and health. Moreover, it serves as an important catalyst for private sector development. The Energy Sector Project will result in households and businesses receiving more reliable and better quality electricity, and many currently un-served households and businesses will receive electricity for the first time.
Third, a shortage of access to potable water by both households and businesses is another constraint to Tanzanian economic growth addressed by the Program. Water is an important input to production in many industries, and expanding the supply of water will allow the expansion of economic
Finally, the Compact development process itself has already contributed to encouraging the GoT to undertake important policy reforms in the transport, energy, and water sectors, the absence of which have constrained economic and private sector growth in Tanzania for years. Moreover, the various investments in physical infrastructure during the implementation of the Program will be tied to continued policy and sector reform.
In September 2007, the GoT established MCA-Tanzania, the accountable entity for the Program, as a department within the Ministry of Finance with budgetary and operational independence. The early establishment of MCA-Tanzania allowed for commencement of preparatory activities funded under the pre-Compact 609(g) grant agreement, signed in October 2007, in order for timely and efficient implementation of the Program once the Compact enters into force.
MCA-Tanzania consists of a governing board (Governing Board), and a secretariat (Secretariat). The Governing Board has final decision-making authority over the implementation of the Program, and consists of seven representatives from the GoT (including two representatives from Zanzibar) and four representatives from the private sector and the civil society. The Secretariat supports the Governing Board in the implementation of the Program. A chief executive officer manages the day-to-day activities of MCA-Tanzania, and is supported by senior directors together with other managers, officers, and administrative staff.
MCA-Tanzania is in the final stages of selecting, through competitive processes, a third party, non-government entity to provide procurement agent and oversight services for MCA-Tanzania, to include acting as procurement agent for MCA-T administrative procurements, the Zanzibar Rural Roads Activity, all Water Sector Project Activities, and two Energy Sector Project Activities. In its capacity as advisor, the firm will provide training and support services to three government procurement entities on certain procurements for the transport and energy projects. MCA-Tanzania will work with the various ministries, departments, and agencies of the GoT to implement the Projects with one exception: Due to capacity limitations, the rehabilitation of the rural roads in Zanzibar will be implemented by a competitively procured project management firm.
The Office of the Accountant General in Tanzania's Ministry of Finance has established a Fiscal Agent Unit within the Office, staffed from existing office resources, for the Program. Under the direction of MCA-T's Director of Finance and Administration, this Unit will provide all financial reports under the Compact and relevant supplementary agreements; perform coordination efforts related to fiscal management including operating procedure development; provide information technology support including Web site development and maintenance; monitor and perform the necessary input interface with the U.S. Treasury International Treasury System ("ITS"); manage asset control and accountability; and respond to all MCA-T management requests.
The estimated sector-level economic rates of return (ERRs)
The estimated Project Activity-level ERRs for the Program are presented in the table below.
The consultative process for the Program was anchored in the ongoing consultative process for Tanzania's National Strategy for Growth and Reduction of Poverty (commonly referred to by its Swahili acronyms, MKUKUTA/MKUZA, for the mainland and Zanzibar, respectively). The MKUKUTA/MKUZA process yielded broadly endorsed national sector strategies, and Projects were developed
Specifically, national outreach activities were conducted by the GoT's core team, including visits to all of the sites for the proposed Projects on the mainland and Zanzibar. Discussions were held with key stakeholders including representatives from regional, district, and local council government offices, members of parliament, the World Wildlife Fund, the Tanzania National Business Council, the Tanzanian Chamber of Commerce, Industry, and Agriculture, the Tanzania Association of NGOs, the Association of NGOs in Zanzibar, and women's groups such as the Tanzania Gender Networking Programme.
In addition, the GoT will utilize regional development committees in Project-affected areas to continue the consultative process throughout the implementation of the Program. These committees will include stakeholders from various non-governmental organizations, the private sector, and local and regional governments. These committees will not have decision-making authority, but will serve as a mechanism for ongoing consultations between the GoT and the public.
The GoT's commitment is demonstrated in the allocation of significant human and financial resources to the Compact development process and in the GoT's receptiveness to substantive policy reforms. The GoT's core team has been led by a national coordinator with 30 years of experience in public service who has recruited an impressive team. The GoT also constituted a high-level steering committee to oversee the Compact development process, led by the Permanent Secretary of the Ministry of Finance. In addition to representation by the Permanent Secretaries from various relevant ministries, the steering committee included a number of leaders from the private and non-governmental sectors.
Additional commitment by the GoT has been demonstrated by a willingness to undertake various reforms that are critical to the sustainability of the Program. For instance, the GoT has shown openness and commitment in the transport sector by its agreement to adhere to the improvement of prioritized corridors through the upgrade of trunk roads identified in the TSIP. The energy sector also has shown signs of movement toward commercialization, demonstrated by the restructuring of Tanzania Electric Supply Company Limited (TANESCO) and the emergence of an independent regulator for the energy and water sectors. Moreover, the GoT committed to passing a new act governing the electricity sector to bring up-to-date the current law (dating from 1931). Finally, the GoT contributed significant time and resources toward the preparation of environmental and social studies for many of the components of the Projects during the Compact development process. These contributions not only enhance the environmental sustainability of the Projects but also allow the improved designs and timely implementation of the Program.
The sustainability of the investments in roads on both the mainland and Zanzibar is dependent upon adequate road maintenance. A significant policy reform towards mainland roads sustainability was demonstrated in July 2007 when the GoT nearly doubled its funding of road maintenance, an increase adequate to meet the maintenance costs of the mainland's road network. To encourage the GoT to take additional steps for improvement of the sustainability of the roads in Zanzibar, MCC will condition its investment in the rural roads on a significant increase in the current fuel levy in Zanzibar. Moreover, since adequate funding for maintenance of roads does not by itself ensure sustainability of the investments in roads, MCC will provide technical assistance to enhance the GoT's road maintenance capacity.
The Energy Sector Project includes capacity building and technical support for both TANESCO and Zanzibar Electricity Corporation (ZECO). In addition, the implementation of the new Electricity Act, continued progress on tariff reform, and TANESCO Board reforms to increase its independence from the GoT, all required under the Compact, are significant safeguards that will contribute to sustainability.
Under the Water Sector Project, the GoT has agreed to pursue financial recovery measures for DAWASA, DAWASCO and MORUWASA, and to include the implementation of tariffs that will fully recover operations and maintenance costs, and demonstrate a sustainable trend to recover capital costs within the term of the Compact.
In addition, the Program includes provision of technical assistance to the National Environmental Management Council and the Zanzibar Department of the Environment, development and implementation of a gender integration plan, and support for environmental and social oversight of the Program. These activities will safeguard Tanzania's natural resources and enhance the sustainability of the Program as a whole. They will also contribute to long-term sustainable development of Tanzania by building capacity and systems to improve environmental management associated with the planning, design and implementation of infrastructure projects.
MCC will require that all Projects comply with the Tanzanian National Environmental Management Act and regulations, MCC's environmental guidelines and gender policy, and World Bank's Operational Policy on Involuntary Resettlement (OP 4.12).
None of the Projects is likely to generate significant adverse environmental, health, or safety impacts, and all expected impacts can be mitigated. Several activities under the Transport Sector Project ("Category A" according to MCC's environmental guidelines) have the potential for construction-related impacts such as erosion, drainage and run-off, and impacts to wildlife migration that will be mitigated through, among other measures, promotion of community-based natural resource management. Additional potential secondary and cumulative impacts such as increased deforestation due to logging and prolific charcoal manufacturing may have adverse environmental and social impacts and will be mitigated through sustainable community development initiatives. Similarly, potential negative environmental and social impacts of the Energy Sector Project ("Category A") and the Water Sector Project ("Category B") include health and safety risks, as well as construction-related impacts on communities including increased HIV/AIDS transmission and economic and physical resettlement. With proper planning and oversight by MCA-Tanzania and environmental and social oversight consultants, all negative impacts and risks identified through these assessments will be mitigated.
In addition, the Program is expected to yield the following positive environmental and social impacts: (i) Increased opportunities for community-based natural resource management in the proximity of the southern sections of the mainland's trunk roads, (ii) reduction in time spent accessing cultural and natural resources through the provisioning of renewable energies
The mainland trunk roads activity under the Transport Sector Project was developed in consultation with the principal donors in the transport sector in Tanzania, including the European Union, World Bank, African Development Bank (AfDB), the Danish International Development Agency (DANIDA), and the governments of Norway and Japan. The plan to upgrade Zanzibar's rural roads was developed in consultation with other donors working in Zanzibar, primarily the World Bank, DANIDA, and the Government of Norway. The airport on Mafia Island represents one of eleven airports identified in the TSIP, and is included in the TAA's ongoing feasibility, environmental and social impact assessment, and detailed design study funded by the World Bank. Finally, a measure to support environmental sustainability of the upgrades to the various roads through the community-based natural resource management builds upon efforts of United States Agency for International Development (USAID), and will be implemented in collaboration with USAID.
Donors, including the governments of Sweden, Norway, and Japan, the World Bank, and the AfDB, among others, play an active role in improving Tanzania's energy sector through support for policy reform, technical assistance and infrastructure investments. The Energy Sector Project has benefited significantly from these donors' activities while MCC has provided important additional leverage for needed policy and regulatory reform including the passage of new legislation governing the electricity sector, tariff reform, and financial sustainability of TANESCO and ZECO. Moreover, the Malagarasi hydropower plant benefited from a pre-feasibility study financed by the AfDB and the World Bank. Finally, MCC's review of the proposal to upgrade the distribution systems in Mwanza, Tanga, Morogoro, Iringa, Dodoma and Mbeya benefited from active intervention and support by the Swedish International Development Cooperation Agency and the World Bank.
All components of the Water Sector Project are priority projects identified under the WSDP. The donors participating in the WSDP include the World Bank, the governments of Germany, the Netherlands, France, and Japan as well as the United Nations Development Programme, the United Nations Children's Fund, Food and Agriculture Organization, and the AfDB. MCC coordinated with these organizations throughout the review and development of the Water Sector Project, and continues to engage with them.
This Millennium Challenge Compact (this "
Recalling that the Government consulted with the private sector and civil society of Tanzania to determine the priorities for the use of Millennium Challenge Account assistance and developed and submitted to the MCC a proposal for such assistance; and
Recognizing that the MCC wishes to help Tanzania implement a program to achieve the goal and objectives described herein (the "
The Parties hereby agree as follows:
The goal of this Compact is to advance economic growth and poverty reduction in Tanzania through strategic investments in transportation, energy, and water infrastructure (the "
The objectives of the Projects (each, a "
(a) To increase cash crop revenue and aggregate visitor spending through the Transport Sector Project;
(b) To increase value added of businesses through the Energy Sector Project; and
(c) To increase investment in human and physical capital and reduce the prevalence of water-related diseases through the Water Sector Project.
The Government shall take all necessary steps to achieve the Compact Goal and Project Objectives during the Compact Term.
The MCC hereby grants to the Government, under the terms of this Compact, an amount not to exceed Six Hundred Ninety-Eight Million One Hundred and Thirty-Six Thousand United States Dollars (US$698,136,000) ("
(a) Of the total amount of MCC Funding, the MCC shall make up to Eleven Million Eight Hundred and Ninety-Six Thousand United States Dollars (US$11,896,000) ("
(i) Administrative activities for MCA-Tanzania (as defined below), including start-up costs such as staff salaries, rent, cost of purchasing computers and other information technology or capital equipment and other similar expenses; and
(ii) Any other activities relating to the implementation of the Compact, approved by the MCC.
(b) The Parties shall provisionally apply this Section 2.2, and Sections 2.6, 2.7 and 3.5 below, after the MCC and the Government sign this Compact until this Compact enters into force under Section 7.3. Compact Implementation Funding also shall be subject to the requirements, restrictions and procedures set out in writing by the MCC.
In accordance with this Compact and the Program Implementation Agreement (as defined below), the MCC shall disburse MCC Funding for expenditures incurred in connection with the implementation of the Program (each, a "
The Government shall pay to the MCC any interest and other earnings that accrue on MCC Funding in accordance with the Program Implementation Agreement (whether by directing such payments to the bank account outside Tanzania designated by the MCC or otherwise).
(a) The Government shall provide all funds and other resources, and shall take all actions, that are necessary to carry out the Government's responsibilities and obligations under this Compact.
(b) The Government shall use its best efforts to ensure that all MCC Funding it receives, or is projected to receive, in each of its fiscal years is fully accounted for in its annual budget on a multi-year basis.
(c) The Government shall not reduce the normal and expected resources that it would otherwise receive, or budget, from sources other than the MCC for the activities contemplated under this Compact and the Program.
The Government shall ensure that MCC Funding shall not be used for any purpose that would violate United States law or policy, as specified in this Compact or as further notified to the Government in writing by the MCC, or by posting at
(a) For assistance to, or training of, the military, police, militia, national guard or other quasi-military organization or unit;
(b) For any activity that is likely to cause a substantial loss of United States jobs or a substantial displacement of United States production;
(c) To undertake, fund or otherwise support any activity that is likely to cause a significant environmental, health, or safety hazard as further described in MCC environmental guidelines posted on the MCC Web site ("
(d) To pay for the performance of abortions as a method of family planning or to motivate or coerce any person to practice abortions, to pay for the performance of involuntary sterilizations as a method of family planning or to coerce or provide any financial incentive to any person to undergo sterilizations or to pay for any biomedical research which relates, in whole or in part, to methods of, or the performance of, abortions or involuntary sterilization as a means of family planning.
(a) The Government shall ensure that the assistance provided by the MCC to the Government under this Compact is exempt from any existing or future taxes, duties, levies, contributions or other similar charges ("
(b) If any Tax has been levied and paid to the Government contrary to the requirements of Section 2.7(a) above, the Government shall refund promptly to the MCC the amount of such Tax out of its national funds, and no MCC Funding, proceeds thereof, or Program asset may be applied by the Government in satisfaction of its obligations under this Section 2.7(b).
The Government shall implement the Program in accordance with this Compact and as further specified in an agreement to be entered into by the MCC and the Government, which agreement will address, among other matters, implementation arrangements, fiscal accountability, disbursement and use of MCC Funding, procurement and applicable tax exemptions (the "
(a) The Government shall have the principal responsibility of overseeing and managing the implementation of the Program.
(b) The Government shall ensure that any assets or services funded in whole or in part (directly or indirectly) by MCC Funding will be used solely in furtherance of this Compact and the Program.
(c) The Government shall ensure that no law or regulation in Tanzania now or hereinafter in effect makes, or will make unlawful, or otherwise prevent or hinder the performance of any of its obligations under this Compact, the PIA or any other agreement related thereto or any transaction contemplated thereunder.
(d) The Government shall fund all costs in excess of those budgeted for the Program, as set forth in Annex II (as such may be modified in accordance with the terms thereof), in order to ensure the full and complete implementation of the Program.
In addition to the specific policy, legal and regulatory reform
The Government assures the MCC that:
(a) As of the date this Compact is signed by the Government, the information provided to the MCC by or on behalf of the Government in the course of reaching agreement with the MCC on this Compact is, taken as a whole, true, correct and complete in all material respects;
(b) This Compact does not, and will not, conflict with any other international agreement or obligation of the Government or any of the laws of Tanzania; and
(c) The Government shall not invoke any of the provisions of its internal law to justify or excuse a failure to perform its duties or responsibilities under this Compact.
From time to time, the MCC may provide guidance to the Government in writing on all matters relating to MCC Funding, this Compact or implementation of the Program (each, an "
Under the exception set forth in Section 4 of the Public Procurement Act No. 21 of 2004, the Government shall ensure that the procurement of all goods, works and services by the Government or any Provider in furtherance of this Compact will be consistent with and conducted in accordance with the procurement guidelines notified by the MCC to the Government in writing or by posting on the MCC Web site, or otherwise made publicly available ("
(a) Open, fair, and competitive procedures must be used in a transparent manner to solicit, award and administer contracts and to procure goods, works and services;
(b) Solicitations for goods, works, and services must be based upon a clear and accurate description of the goods, works and services to be acquired;
(c) Contracts must be awarded only to qualified contractors that have the capability and willingness to perform the contracts in accordance with their terms on a cost effective and timely basis; and
(d) No more than a commercially reasonable price, as determined, for example, by a comparison of price quotations and market prices, will be paid to procure goods, works and services.
Any document or communication required or submitted by either Party to the other under this Compact shall be in writing and, except as otherwise agreed between the Parties, in English. For this purpose, the address of each Party is set forth below.
Millennium Challenge Account--Tanzania, Attention: Chief Executive Officer, Kivukoni Front/Ohio Street, P.O. Box 8327, Dar es Salaam, Tanzania, Facsimile: 255 22 2124644, Telephone: 255 22 2124634, E-mail: To be designated in writing to the MCC by MCA-Tanzania.
For all purposes of this Compact, the Government shall be represented by the individual holding the position of, or acting as, the Permanent Secretary to the Treasury, and the MCC shall be represented by the individual holding the position of, or acting as, Vice President for Compact Implementation (each, a "
With respect to all documents other than this Compact or an amendment to this Compact, a signature delivered by facsimile or electronic mail shall be binding on the Party delivering such signature to the same extent as an original signature would be.
(a) Either Party may terminate this Compact in its entirety by giving the other Party thirty (30) days' written notice.
(b) The MCC may, immediately upon written notice to the Government, suspend or terminate this Compact or MCC Funding under this Compact, in whole or in part, if the MCC determines that any circumstance identified by the MCC as a basis for suspension or termination (whether in writing to the Government or by posting on the MCC Web site) has occurred, which circumstances include but are not limited to the following:
(i) The Government fails to comply with its obligations under this Compact, the PIA or any other agreement or arrangement entered into by the Government in connection with this Compact or the Program;
(ii) An event has occurred that, in the MCC's determination, makes achievement of any Project Objective improbable during the term of this Compact or makes it improbable that the Government will be able to perform its obligations under this Compact;
(iii) Any use of MCC Funding or continued implementation of this Compact that would violate applicable law or United States Government policy, whether now or hereafter in effect;
(iv) The Government or any other person or entity receiving MCC Funding or using assets acquired in whole or in part with MCC Funding is engaged in activities that are contrary to the national security interests of the United States;
(v) An act has been committed or an omission or an event has occurred that would render Tanzania ineligible to receive United States economic assistance under Part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151,
(vi) The Government has engaged in a pattern of actions inconsistent with the criteria used to determine the eligibility of Tanzania for assistance under the Millennium Challenge Act of 2003; and
(vii) A person or entity receiving MCC Funding or using assets acquired in whole or in part with MCC Funding is found to have been convicted of a narcotics offense or to have been engaged in drug trafficking.
(c) All Disbursements shall cease upon the expiration, suspension, or termination of this Compact;
(d) Subject to subsection (c) of this Section 5.1, upon the expiration, suspension or termination of this Compact, (i) any amounts of MCC Funding not disbursed by the MCC shall
(e) The MCC may reinstate any suspended or terminated MCC Funding under this Compact if the MCC determines that the Government or other relevant person or entity has committed to correct each condition for which MCC Funding was suspended or terminated.
(a) If any MCC Funding, any interest or earnings thereon, or any asset acquired in whole or in part with MCC Funding is used for any purpose in violation of the terms of this Compact, the MCC shall have the right to require that the Government repay to the MCC, in United States Dollars, the value of such misused MCC Funding, interest, earnings, or asset, plus interest, within thirty (30) days after the Government's receipt of the MCC's request for repayment. The Government shall use national funds (and no MCC Funding or assets of the Program) to make such payment.
(b) Notwithstanding any other provision in this Compact or any other agreement to the contrary, the MCC's right under this Section 5.2 for a refund shall continue during the term of this Compact and for a period of (i) five years thereafter or (ii) one year after the MCC receives actual knowledge of such violation, whichever is later.
The Government's responsibilities under Sections 2.4, 2.6, 2.7, 3.7, 3.8, 5.1(c), 5.1(d), 5.2, 5.3 and 6.4 of this Compact shall survive the expiration, suspension or termination of this Compact.
Each annex attached hereto constitutes an integral part of this Compact.
In the event of any conflict or inconsistency between:
(a) Any annex to this Compact and any of Articles 1 through 8, such Articles 1 through 8 shall prevail; or
(b) This Compact and any other agreement between the Parties regarding the Program, this Compact shall prevail.
The Parties may amend this Compact only by a written agreement signed by the Principal Representatives of both Parties and subject to the respective domestic approval requirements to which this Compact was subject.
This Compact is an international agreement and, as such, will be governed by the principles of international law.
Any reference to activities, obligations or rights undertaken or existing under or in furtherance of this Compact or similar language shall include activities, obligations and rights undertaken by, existing under or in furtherance of any agreement, document or instrument related to this Compact and the Program.
Any reference in this Compact, the PIA or any other agreement entered into in connection with this Compact, to a document or information available on, or notified by posting on the MCC Web site shall be deemed a reference to such document or information as updated or substituted on the MCC Web site from time to time.
This Compact and the other Compact Documents (as defined below) and the performance by the Government of any of its obligations under this Compact or the other Compact Documents shall not be made unlawful or otherwise prevented, hindered or adversely affected by any laws of Tanzania that come into effect after the MCC and the Government sign this Compact.
Each reference in this Compact, the PIA or any other agreement entered into in connection with this Compact, to a law, regulation, policy, guideline or similar document will, unless expressly set forth herein or therein, be construed as a reference to such law, regulation, policy, guidelines or similar document as it may, from time to time, be amended, revised, replaced, or extended and will include any law, regulation, policy, guidelines or similar document issued under or otherwise applicable or related to such law, regulation, policy, guidelines or similar document.
The Government shall take all steps necessary to ensure that (a) this Compact and the PIA and all of the provisions of this Compact and the PIA are valid and binding and are in full force and effect in Tanzania, and (b) no laws of Tanzania (other than the constitution of Tanzania), whether now or hereafter in effect, will take precedence or prevail over the terms of this Compact or the PIA.
Before this Compact enters into force:
(a) The Government and the MCC shall execute the PIA;
(b) The Government shall deliver to the MCC:
(i) A certificate signed and dated by the Principal Representative of the Government (or such other duly authorized representative of the Government acceptable to the MCC) certifying that the Government has taken all steps required under Section 7.1;
(ii) An opinion from the Attorney General of Tanzania, in form and substance satisfactory to the MCC, that states, among other things, (1) each of the Compact, the PIA and any other agreement entered into in connection with this Compact to which the Government and the MCC are parties (the "
(iii) Complete, certified copies of all decrees, legislation, regulations or other governmental documents relating to its domestic requirements for this Compact to enter into force and the satisfaction of the requirements of Section 7.1,
(c) The MCC must determine that, after signature of this Compact, the Government has not engaged in any action or omission that is inconsistent with the eligibility criteria for MCC Funding.
This Compact shall enter into force on the later of (a) the date of the last letter in an exchange of letters between the Principal Representatives confirming that each Party has completed its domestic requirements for entry into force of this Compact and (b) the date that all conditions set forth in Section 7.2 have been satisfied.
This Compact shall remain in force for five years after its entry into force, unless terminated earlier under Section 5.1 (the "
Either Party may, at any time, request consultations relating to the interpretation or implementation of this Compact or any relevant supplemental agreement between the Parties. Such consultations shall begin at the earliest possible date. The request for consultations shall designate a representative for the requesting Party with the authority to enter consultations and the other Party shall endeavor to designate a representative of equal or comparable rank. If such representatives are unable to resolve the matter within thirty (30) days from the commencement of the consultations, then each Party shall forward the consultation to the Principal Representative or such other representative of comparable or higher rank. The consultations shall last no longer than sixty (60) days from date of commencement. If the matter is not resolved within such time period, either Party may terminate this Compact pursuant to Section 5.1(a). The Parties shall enter any such consultations guided by the principle of achieving the Compact Goal in a timely and cost-effective manner and by the principles of international law. Any dispute arising under or related to this Compact shall be determined exclusively through the consultation mechanism set forth in this Section 8.1.
In Witness Whereof, the undersigned, duly authorized by their respective governments, have signed this Compact this 17th day of February, 2008.
Done at Dar es Salaam, Tanzania.
For Millennium Challenge Corporation, on behalf of the United States of America, George W. Bush, President of the United States of America.
For the Government of the United Republic of Tanzania, Jakaya Mrisho Kikwete, President of the United Republic of Tanzania.
This Annex I to this Compact describes the Program that MCC Funding will support in Tanzania during the Compact Term. The Program will include the Transport Sector Project, the Energy Sector Project and the Water Sector Project (each, a "
The United Republic of Tanzania ("Tanzania"), comprised of the mainland and Zanzibar, is surrounded by eight countries (consisting of Kenya, Uganda, Rwanda, Burundi, Democratic Republic of Congo, Zambia, Malawi, and Mozambique) and the Indian Ocean. Tanzania is a country of approximately 39 million people. Nearly 36 percent of the mainland population and 49 percent of the Zanzibar population live below the poverty line. An inadequate transportation network, an inadequate and unreliable supply of energy and a shortage of potable water are three key constraints to economic growth and private investment in Tanzania. The Program is designed specifically to address these constraints.
The Program consists of the Transport Sector Project, the Energy Sector Project, and the Water Sector Project, as further described below.
The Parties may agree to modify or eliminate any Project or Project Activity, or to create a new project or project activity, in writing signed by the Principal Representative of each Party without amending this Compact; provided, however, that any such modification or elimination of a Project or Project Activity, or creation of a new project or project activity, shall not cause the amount of MCC Funding to exceed the aggregate amount specified in Section 2.1 of this Compact, cause the Government's responsibilities or contribution of resources to be less than specified in this Compact, or extend the Compact Term.
The consultative process for the Program was informed by, and anchored in, the consultative process conducted in connection with the Government's National Strategy for Growth and Reduction of Poverty which was finalized in 2005 (commonly referred to by the Swahili acronyms "