Federal Register: February 27, 2008 (Volume 73, Number 39)

DOCID: fr27fe08-79 FR Doc E8-3661

MILLENNIUM CHALLENGE CORPORATION

Millennium Challenge Corporation

MCC ID: [MCC FR 08-02]

NOTICE: NOTICES

DOCID: fr27fe08-79

DOCUMENT ACTION: Notice.

SUBJECT CATEGORY:

Notice of Entering Into a Compact With the Government of the United Republic of Tanzania

DOCUMENT SUMMARY:

In accordance with Section 610(b)(2) of the Millennium Challenge Act of 2003 (Pub. L. 108199, Division D), the Millennium Challenge Corporation (MCC) is publishing a summary and the complete text of the Millennium Challenge Compact between the United States of America, acting through the Millennium Challenge Corporation, and the Government of the United Republic of Tanzania acting through the Ministry of Finance. The President of the United States of America and the President of the United Republic of Tanzania executed the Compact documents on February 17, 2008.

Dated: February 21, 2008.
William G. Anderson Jr.,
Vice President & General Counsel, Millennium Challenge Corporation. Summary of Millennium Challenge Compact With the Government of the United Republic of Tanzania

A. Introduction

The United Republic of Tanzania, comprised of the mainland and Zanzibar, is strategically located in East Africa bordering the Indian Ocean and eight nations.\1\ Tanzania plays an important role in the region as an economic trade partner and stands out
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as a proponent of peace and security. In a region that has historically been divided by violent ethnic and religious conflict, Tanzania has been a peaceful country with a religiously diverse population, abundant natural resources, and a distinct sense of national pride and identity. However, this stability has not translated into widespread economic prosperity, as nearly 36 percent of the mainland population and 49 percent of the Zanzibar population live below the national poverty line. An inadequate transportation network, an insufficient 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 (Program) to be funded under the proposed Millennium Challenge Compact (Compact) with the Government of the United Republic of Tanzania (GoT) is designed specifically to address each of these constraints.
\1\ The countries bordering Tanzania are Kenya, Uganda, Rwanda, Burundi, Democratic Republic of Congo, Zambia, Malawi, and Mozambique.

B. Program Overview and Budget

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.
Program budget (US$ '000)
Description CIF \2\ &
year 1 Year 2 Year 3 Year 4 Year 5 Total Transport Sector Project...................... 21,552 84,406 147,131 82,606 37,081 372,776 Energy Sector Project......................... 16,646 45,501 53,435 59,083 31,806 206,471 Water Sector Project.......................... 5,845 16,959 17,786 16,838 8,908 66,336 Monitoring & Evaluation....................... 2,500 1,000 1,000 1,000 4,500 10,000 Program Administration........................ 11,202 7,615 7,900 7,868 7,968 42,553

Total..................................... 57,745 155,481 227,252 167,395 90,263 698,136
\2\ This refers to the period between the Compact's conclusion and its entry into force.

1. Transport Sector Project ($372.8 Million)

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.

  • Mainland Trunk Roads. The Project includes rehabilitation of three trunk roads on the mainland: (i) TangaHorohoro, a 68 km stretch of highway in northeast Tanzania connecting the seaport of Tanga with Horohoro at the Kenyan border whose rehabilitation will ease transport of goods between Dar es Salaam and Kenya, (ii) Tunduma Sumbawanga, a 224 km stretch of highway in western Tanzania, a very fertile agricultural area, constituting the southernmost part of the Western Corridor representing the only link between Dar es Salaam and Zambia, and (iii) Mtwara Corridor, a 139 km stretch of highway in southwestern Tanzania, the westernmost part of the Southern Corridor that runs from the Indian Ocean port of Mtwara to Mbamba Bay on Lake Nyasa.
  • Zanzibar Rural Roads. The Project includes rehabilitation of up to five rural roads on Pemba Island, totaling approximately 35 km.
  • Road Maintenance. The Project includes enhancement of Tanzania's capacity to maintain its road network. Specifically, this activity will support improvements in institutional capacity for strategic maintenance planning, and management of routine and periodic maintenance contracts of Tanzania National Roads Agency (TANROADS) for the mainland and the Ministry of Communications and Transport for Zanzibar.
  • Mafia Island Airport. The Project includes provision of necessary aviation and public safety related facilities at the airport on Mafia Island, which is located off the east coast of Tanzania, approximately 135 km southeast of Dar es Salaam. Due to the poor condition of the airport and lack of feasible alternative
    transportation options, this activity will keep the airport open and prevent the island's residents from being cut off from the mainland. The activity also includes provision of technical assistance to the Tanzania Airports Authority (TAA) for implementation of the activity and maintenance planning.

    2. Energy Sector Project ($206.5 Million)

    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.

  • Zanzibar Interconnector. The Project includes laying an approximately 40 km long, 100 MW capacity submarine electric transmission cable (including telecom fiber optic shield wire) from the mainland to Unguja Island, along the path of the existing submarine cable that is reaching its limits in both capacity and lifespan. To support the additional transmission capacity, the activity also includes the reinforcement of substations at either end of the cable, as well as the corresponding installation of roughly 20 km of supplementary
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    transmission capacity along existing lines. This activity is expected to provide a reliable and nonpolluting power supply to Unguja Island, the largest island in the Zanzibar archipelago with a population of approximately 700,000, which is entirely dependent on power supply from the mainland. This will allow the island to continue to develop its potential as a highvalue tourist destination. The increased supply of electricity will also improve the productivity and quality of life for the island's population.
  • Malagarasi Hydropower & Kigoma Distribution. The Project includes the construction of a small, 8 MW runofriver hydropower plant on the Malagarasi River at Igamba Falls, and the extension of a minigrid system in the Kigoma region, which suffers from an inadequate and unreliable power supply. This lack of access to reliable power has been one of the major constraints to investment in commercial and industrial operations in the region. This activity seeks to displace costly, inefficient, and polluting diesel power generation with affordable, reliable, and clean renewable smallscale hydropower. The expanded distribution system will also facilitate the electrification of rural villages and towns. In addition, this activity will include the assessment and design of a publicprivate partnership for the independent operation of the completed minigrid system. Such partnership will provide an opportunity to increase the participation of the private sector in the national electricity system.
  • Distribution Systems Rehabilitation & Extension. The Project includes the rehabilitation of existing distribution infrastructure and a number of small distribution line extensions to unserved areas in six regions (Mwanza, Tanga, Morogoro, Iringa, Dodoma, and Mbeya) that were identified by the GoT as priority areas for investment. By complementing similar projects to be funded by the World Bank in the regions of Dar es Salaam, Kilimanjaro, and Arusha, this activity will address the growing demand and the corresponding strain on the network to deliver reliable and quality power to industrial and commercial users, as well as to households, in these regions.

    3. Water Sector Project ($66.3 Million)

    Tanzania faces a serious shortage of access to potable water, resulting in a high incidence of waterrelated 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 20year 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 waterrelated disease, to increase time available for productive activities such as education, and to promote greater investments in physical capital.

  • Lower Ruvu Plant Expansion. Dar es Salaam, Tanzania's largest city and commercial center, is experiencing a severe water crisis due to a shortage of water supply and poor water quality. The Project includes expansion of the capacity of the Lower Ruvu water treatment plant from about 180 million liters per day (MLD) to approximately 270 MLD. In addition, technical assistance for the Dar es Salaam Water and Sewerage Authority (DAWASA) will be provided.
  • NonRevenue Water. The Project includes improvement to the system efficiencies of DAWASA and Dar es Salaam Water and Sewerage Company (DAWASCO) to determine the locations and volumes of physical losses through leaks, and commercial losses as a result of deficiencies in billing and collection and theft. Currently, approximately 60 percent of Dar es Salaam water is lost due to physical leakages and commercial losses. This activity, to be built on past and ongoing donor activities, will substantially reduce water resource waste and the need to develop new water sources, and will improve the longterm financial viability of DAWASA and DAWASCO. Specifically, the activity includes a comprehensive assessment of the Dar es Salaam water supply system, its physical and commercial losses, the development of performance benchmarks for reduction of these losses, and the implementation of a performancebased contract by a private sector firm to achieve those benchmarks. The activity also includes technical assistance to DAWASA and DAWASCO for implementation of the activity.
  • Morogoro Water Supply. The Project includes improvements to water supply in Morogoro, a city that, due to a growing population coupled with its aging water infrastructure, faces water supply deficiencies and increased health risks for its population. Specifically, this will be achieved through the rehabilitation of the Mambogo water intake and water treatment plant (including the addition of a 6 MLD capacity), rehabilitation of the Mafiga water treatment plant, and improvement to the existing distribution network (including a 1.9 kilometer pressure main). In addition, technical assistance will be provided to Morogoro Urban Water and Sewerage Authority (MORUWASA) to support its continued progress toward achieving financial sustainability, including meeting its operation and maintenance costs and capital expenditure requirements.

    C. Impact

    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 unserved 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
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    activity as well. In addition, lack of access to potable water results in a high incidence of waterrelated disease, burdensome healthcare costs, and decreased workforce productivity. By improving the water supply, incidence of disease and time spent collecting water will decrease, resulting in potential gains in labor productivity. Households, businesses and institutions relying on network water will benefit from improvements in water supply under the Water Sector Project.

    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.

    D. Program Management

    In September 2007, the GoT established MCATanzania, the accountable entity for the Program, as a department within the Ministry of Finance with budgetary and operational independence. The early establishment of MCATanzania allowed for commencement of preparatory activities funded under the preCompact 609(g) grant agreement, signed in October 2007, in order for timely and efficient implementation of the Program once the Compact enters into force.

    MCATanzania 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 daytoday activities of MCATanzania, and is supported by senior directors together with other managers, officers, and administrative staff.

    MCATanzania is in the final stages of selecting, through competitive processes, a third party, nongovernment entity to provide procurement agent and oversight services for MCATanzania, to include acting as procurement agent for MCAT 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. MCATanzania 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 MCAT'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 MCAT management requests. E. Assessment

    1. Economic Analysis

    The estimated sectorlevel economic rates of return (ERRs) \3\ for the mainland are: (i) For the transport sector, 16%, (ii) for the water sector, 20%, and (iii) for the energy sector, 27%. The overall ERR for the activities in Zanzibar is 18%.
    \3\ These sectorlevel ERRs include administrative costs.

    The estimated Project Activitylevel ERRs for the Program are presented in the table below.
    ERR Project Description (percent) Transport Sector................. Mainland Trunk Roads.... ........... TangaHorohoro.......... 15 TundumaSumbawanga...... 20 Mtwara Corridor......... 14 Zanzibar Rural Roads.... 12 Mafia Island Airport.... 17 Energy Sector.................... Zanzibar Interconnector. 21 Malagarasi Hydropower & 20 Kigoma Distribution.
    Distribution Systems ........... Rehabilitation &
    Extension.
    Mwanza.................. 31 Tanga................... 42 Morogoro................ 24 Iringa.................. 52 Dodoma.................. 16 Mbeya................... 53 Water Sector..................... Lower Ruvu Plant 27 Expansion.
    NonRevenue Water....... 21 Morogoro Water Supply... 5 2. Consultative Process

    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
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    on the basis of these strategies. Building on the success of and lessons learned from the MKUKUTA/MKUZA consultative process, the GoT designed and followed a comprehensive outreach strategy.

    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 Projectaffected areas to continue the consultative process throughout the implementation of the Program. These committees will include stakeholders from various nongovernmental organizations, the private sector, and local and regional governments. These committees will not have decisionmaking authority, but will serve as a mechanism for ongoing consultations between the GoT and the public.

    3. GoT Commitment and Effectiveness

    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 highlevel 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 uptodate 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.

    4. Sustainability

    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 longterm sustainable development of Tanzania by building capacity and systems to improve environmental management associated with the planning, design and implementation of infrastructure projects.

    5. Environment and Social Impacts

    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 constructionrelated impacts such as erosion, drainage and runoff, and impacts to wildlife migration that will be mitigated through, among other measures, promotion of communitybased 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 constructionrelated impacts on communities including increased HIV/AIDS transmission and economic and physical resettlement. With proper planning and oversight by MCATanzania 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 communitybased 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
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    and improved infrastructure, (iii) increased access and participation of civil society and women through public consultation and a Program wide gender integration action strategy, (iv) reduction in the need to develop new water sources and reduce water resource wastage, and (v) improved environmental management capacity to support further sustainable development.

    6. Donor Coordination

    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 communitybased 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 prefeasibility 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.
    Millennium Challenge Compact Between the United States of America Acting Through the Millennium Challenge Corporation and the Government of the United Republic of Tanzania Acting Through the Ministry of Finance
    Table of Contents
    Article 1. Goal and Objectives

    Section 1.1 Compact Goal

    Section 1.2 Project Objectives
    Article 2. Funding and Resources

    Section 2.1 MCC Funding

    Section 2.2 Compact Implementation Funding

    Section 2.3 Disbursement

    Section 2.4 Interest

    Section 2.5 Government Resources; Budget

    Section 2.6 Limitations on the Use of MCC Funding

    Section 2.7 Taxes
    Article 3. Implementation

    Section 3.1 Program Implementation Agreement

    Section 3.2 Government Responsibilities

    Section 3.3 Policy Performance

    Section 3.4 Government Assurances

    Section 3.5 Implementation Letters

    Section 3.6 Procurement

    Section 3.7 Records; Accounting; Covered Providers; Access

    Section 3.8 Audits; Reviews
    Article 4. Communications

    Section 4.1 Communications

    Section 4.2 Representatives

    Section 4.3 Signatures
    Article 5. Termination; Suspension; Refunds

    Section 5.1 Termination; Suspension

    Section 5.2 Refunds; Violation

    Section 5.3 Survival
    Article 6. Compact Annexes; Amendments; Compact Status

    Section 6.1 Annexes

    Section 6.2 Inconsistencies

    Section 6.3 Amendments

    Section 6.4 Compact Status

    Section 6.5 Additional Instruments

    Section 6.6 References to MCC Web site

    Section 6.7 Exclusion Clause

    Section 6.8 References to Laws, Regulations, Policies and Guidelines
    Article 7. Entry Into Force

    Section 7.1 Domestic Requirements

    Section 7.2 Conditions Precedent

    Section 7.3 Date of Entry into Force

    Section 7.4 Compact Term
    Article 8. Consultations

    Section 8.1 Consultation
    Annex I: Program Description
    Annex II: Program Budget
    Annex III: Summary of Monitoring and Evaluation Plan
    Millennium Challenge Compact

    Preamble

    This Millennium Challenge Compact (this ``Compact'') is between the United States of America, acting through the Millennium Challenge Corporation, a United States Government corporation (``MCC''), and the Government of the United Republic of Tanzania (the ``Government''), acting through the Ministry of Finance (individually, each of the MCC and the Government, a ``Party'' and collectively, the ``Parties'').

    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 ``Program'');

    The Parties hereby agree as follows:
    Article 1. Goal and Objectives

    Section 1.1 Compact Goal.

    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 ``Compact Goal'').

    Section 1.2 Project Objectives.

    The objectives of the Projects (each, a ``Project Objective'') are: (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 waterrelated 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. Article 2. Funding and Resources

    Section 2.1 MCC Funding.

    The MCC hereby grants to the Government, under the terms of this Compact, an amount not to exceed Six Hundred NinetyEight Million One Hundred and ThirtySix Thousand United States Dollars (US$698,136,000) (``MCC Funding'') for use by the Government in the implementation of [[Page 10478]]
    the Program, as more specifically described in Annex II to this Compact.
    Section 2.2 Compact Implementation Funding.
    (a) Of the total amount of MCC Funding, the MCC shall make up to Eleven Million Eight Hundred and NinetySix Thousand United States Dollars (US$11,896,000) (``Compact Implementation Funding'') available to the Government under Section 609(g) of the Millennium Challenge Act of 2003 for:
    (i) Administrative activities for MCATanzania (as defined below), including startup 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.

    Section 2.3 Disbursement

    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 ``Disbursement''). The proceeds of such Disbursements shall be made available to the Government either (a) by deposit to a bank account established by the Government and acceptable to the MCC (a ``Permitted Account'') or (b) through direct payment to the relevant provider of goods, works or services in furtherance of this Compact, as appropriate. MCC Funding shall be expended solely to cover expenditures in connection with the implementation of the Program as provided in this Compact and the Program Implementation Agreement.

    Section 2.4 Interest

    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). Section 2.5 Government Resources; Budget
    (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.

    Section 2.6 Limitations on the Use of MCC Funding

    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 www.mcc.gov (``MCC Web site''), including but not limited to the following purposes:
    (a) For assistance to, or training of, the military, police, militia, national guard or other quasimilitary 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 (``MCC Environmental Guidelines''); or
    (d) To pay for the performance of abortions as a method of family planning or to motivate or coerce any person to practice abortions, to pay for the performance of involuntary sterilizations as a method of family planning or to coerce or provide any financial incentive to any person to undergo sterilizations or to pay for any biomedical research which relates, in whole or in part, to methods of, or the performance of, abortions or involuntary sterilization as a means of family planning.
    Section 2.7 Taxes
    (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 (``Taxes'') by the Government (including any such Taxes of a national, regional, local or other governmental or taxing authority) in accordance with the terms of the ``Agreement Providing For the Furnishing of Economic, Technical, and Related Assistance'' between the United States and the Government, entered into force on February 8, 1968.
    (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).
    Article 3. Implementation

    Section 3.1 Program Implementation Agreement

    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 ``Program Implementation Agreement'' or ``PIA''). Section 3.2 Government Responsibilities
    (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.

    Section 3.3 Policy Performance

    In addition to the specific policy, legal and regulatory reform [[Page 10479]]
    commitments identified in Annex I to this Compact, the Government shall commit to maintain and improve its level of performance under the policy criteria (relating to just governance, economic freedom and investments in people) identified in Section 607 of the Millennium Challenge Act of 2003, and the selection criteria and methodology used by the MCC.
    Section 3.4 Government Assurances

    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.

    Section 3.5 Implementation Letters

    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 ``Implementation Letter''). The Government shall apply such guidance in implementing the Program. Section 3.6 Procurement

    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 (``MCC Program Procurement Guidelines''). The MCC Program Procurement Guidelines include, among others, the following requirements:
    (a) Open, fair, and competitive procedures must be used in a transparent manner to solicit, award and administer contracts and to procure goods, works and services;
    (b) Solicitations for goods, works, and services must be based upon a clear and accurate description of the goods, works and services to be acquired;
    (c) Contracts must be awarded only to qualified contractors that have the capability and willingness to perform the contracts in accordance with their terms on a cost effective and timely basis; and (d) No more than a commercially reasonable price, as determined, for example, by a comparison of price quotations and market prices, will be paid to procure goods, works and services.
    Section 3.7 Records; Accounting; Covered Providers; Access
    (a) Government Books and Records. The Government shall maintain, and shall use its best efforts to ensure that all Covered Providers maintain, accounting books, records, documents, and other evidence relating to this Compact adequate to show, to the MCC's satisfaction, the use of all MCC Funding (``Compact Records''). In addition, the Government shall furnish or cause to be furnished all Compact Records to the MCC when the MCC so requests.
    (b) Accounting. The Government shall maintain, and shall use its best efforts to ensure that all Covered Providers maintain, Compact Records in accordance with accounting principles prescribed by the International Accounting Standards Committee. Compact Records must be maintained for at least five (5) years after the end of the Compact Term or for such longer period, if any, required to resolve any litigation, claims or audit findings or any statutory requirements. (c) Provider; Covered Provider. Unless the Parties otherwise agree in writing, a ``Provider'' is (i) any entity of the Government that receives or uses MCC Funding or any other Program asset in carrying out activities in furtherance of this Compact or (ii) any third party that receives at least US$50,000 in the aggregate of MCC Funding (other than as salary or compensation as an employee of an entity of the Government) during the Compact Term. A ``Covered Provider'' is (i) a nonUnited States Provider that receives (other than pursuant to a direct contract or agreement with the MCC) US$300,000 or more of MCC Funding in any Government fiscal year or any other nonUnited States person or entity that receives, directly or indirectly, US$300,000 or more of MCC Funding from any Provider in such fiscal year or (ii) any United States Provider that receives (other than pursuant to a direct contract or agreement with the MCC) US$500,000 or more of MCC Funding in any Government fiscal year or any other United States person or entity that receives, directly or indirectly, US$500,000 or more of MCC Funding from any Provider in such fiscal year.
    (d) Access. Upon the MCC's request, the Government, at all reasonable times, shall permit, or cause to be permitted, authorized representatives of the MCC, an authorized United States inspector general, the United States Government Accountability Office, any auditor responsible for an audit contemplated herein or otherwise conducted in furtherance of this Compact, and any agents or representatives engaged by the MCC or the Government to conduct any assessment, review or evaluation of the Program, the opportunity to audit, review, evaluate or inspect facilities and activities funded in whole or in part by MCC Funding.
    Section 3.8 Audits; Reviews
    (a) Government Audits. Except as the Parties may otherwise agree in writing, the Government shall, on at least a semiannual basis, conduct, or cause to be conducted, financial audits of all disbursements of MCC Funding in accordance with this Section 3.8(a). The initial financial audit shall cover the period from signing of this Compact until the earlier of the following December 31 and June 30, and all subsequent financial audits shall cover each sixmonth period thereafter ending December 31 and June 30 through the end of the Compact Term, in each case in accordance with the terms of the PIA. Upon the MCC's request, to conduct such audits, the Government shall use, or cause to be used, an auditor approved by the MCC and named on the list of local auditors approved by the Inspector General of the Millennium Challenge Corporation (the ``Inspector General'') or a United Statesbased Certified Public Accounting firm selected in accordance with the ``Guidelines for Financial Audits Contracted by MCA'' (the ``Audit Guidelines'') issued and revised from time to time by the Inspector General. Each audit shall be performed in accordance with the Audit Guidelines and be subject to quality assurance oversight by the Inspector General. Each audit shall be completed and the audit report delivered to the MCC no later than 90 days after the first period to be audited and no later than 90 days after each June 30 and December 31 thereafter, unless the Parties otherwise agree in writing. (b) Audits of United States Entities. The Government shall ensure that agreements between the Government or any Provider, on the one hand, and a United States nonprofit organization, on
    [[Page 10480]]
    the other hand, that are financed with MCC Funding state that the United States organization is subject to the applicable audit requirements contained in OMB Circular A133. The Government shall ensure that agreements between the Government or any Provider, on the one hand, and a United States forprofit Covered Provider, on the other hand, that are financed with MCC Funding state that the United States forprofit Covered Provider is subject to audit by the cognizant United States Government agency, unless the Government and the MCC agree otherwise in writing.
    (c) Corrective Actions. The Government shall use its best efforts to ensure that Covered Providers take, where necessary, appropriate and timely corrective actions in response to audits, consider whether a Covered Provider's audit necessitates adjustment of the Government's records, and require each such Covered Provider to permit independent auditors to have access to its records and financial statements as necessary.
    (d) Audit by the MCC. The MCC shall have the right to arrange for and conduct audits of the Government's use of MCC Funding.
    (e) Cost of Audits, Reviews or Evaluations. MCC Funding may be used to fund the costs of any audits, reviews or evaluations required under this Compact, including as reflected on Annex II to this Compact. Article 4. Communications

    Section 4.1 Communications

    Any document or communication required or submitted by either Party to the other under this Compact 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.

    To the MCC

    Millennium Challenge Corporation, Attention: Vice President for Compact Implementation, (with a copy to the Vice President and General Counsel), 875 Fifteenth Street, NW., Washington, DC 20005, United States of America, Facsimile: (202) 5213700, Telephone: (202) 521 3600, Email: VPImplementation@mcc.gov (Vice President for Compact Implementation), VPGeneralCounsel@mcc.gov (Vice President and General Counsel).

    To the Government

    The Government of the United Republic of Tanzania, Attention: The Permanent Secretary, Ministry of Finance, Madaraka Avenue, P.O. Box 9111, Dar es Salaam, Tanzania, Facsimile: 255 22 2110326, Telephone: 255 22 2111174, Email: ps@mof.go.tz. With a Copy to MCATanzania

    Millennium Challenge AccountTanzania, Attention: Chief Executive Officer, Kivukoni Front/Ohio Street, P.O. Box 8327, Dar es Salaam, Tanzania, Facsimile: 255 22 2124644, Telephone: 255 22 2124634, Email: To be designated in writing to the MCC by MCATanzania.

    Section 4.2 Representatives

    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 ``Principal Representative''), each of whom, by written notice to the other Party, may designate one or more additional representatives for all purposes other than signing amendments to this Compact. A Party may change its Principal Representative to a new representative that holds a position of equal or higher rank upon written notice to the other Party. Section 4.3 Signatures

    With respect to all documents other than this Compact or an amendment to this Compact, a signature delivered by facsimile or electronic mail shall be binding on the Party delivering such signature to the same extent as an original signature would be.
    Article 5. Termination; Suspension; Refunds
    Section 5.1 Termination; Suspension
    (a) Either Party may terminate this Compact 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, et seq.), by reason of the application of any provision of the Foreign Assistance Act of 1961 or any other provision of law;
    (vi) The Government has engaged in a pattern of actions inconsistent with the criteria used to determine the eligibility of 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; provided, however, that MCC Funding may be used, in compliance with this Compact and the PIA, to pay for (i) reasonable expenditures for goods, works or services that are properly incurred under or in furtherance of this Compact before such expiration, suspension or termination of this Compact, and (ii) reasonable expenditures (including administrative expenses) that are properly incurred in connection with the winding up of the Program within 120 days after the expiration, suspension or termination of this Compact, so long as the request for payment of such expenditures is submitted within ninety (90) days after such expiration, suspension or termination.
    (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
    [[Page 10481]]
    be released from any obligation in connection with this Compact without any action from the Government or the MCC, and (ii) any amounts of MCC Funding disbursed by MCC but not expended under Section 2.3 before such expiration, suspension or termination, plus accrued interest thereon, shall be returned to the MCC within thirty (30) days after the Government receives the MCC's request for such return.
    (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.
    Section 5.2 Refunds; Violation
    (a) If any MCC Funding, any interest or earnings thereon, or any asset acquired in whole or in part with MCC Funding is used for any purpose in violation of the terms of this Compact, 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. Section 5.3 Survival

    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. Article 6. Compact Annexes; Amendments; Compact Status

    Section 6.1 Annexes

    Each annex attached hereto constitutes an integral part of this Compact.

    Section 6.2 Inconsistencies

    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.

    Section 6.3 Amendments

    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.

    Section 6.4 Compact Status

    This Compact is an international agreement and, as such, will be governed by the principles of international law.

    Section 6.5 Additional Instruments

    Any reference to activities, obligations or rights undertaken or existing under or in furtherance of this Compact or similar language 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.

    Section 6.6 References to MCC Web site

    Any reference in this Compact, the PIA or any other agreement entered into in connection with this Compact, to a document or information available on, or notified by posting on the MCC Web site shall be deemed a reference to such document or information as updated or substituted on the MCC Web site from time to time.

    Section 6.7 Exclusion Clause

    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.
    Section 6.8 References to Laws, Regulations, Policies and Guidelines

    Each reference in this Compact, the PIA or any other agreement entered into in connection with this Compact, to a law, regulation, policy, guideline or similar document will, 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.
    Article 7. Entry Into Force

    Section 7.1 Domestic Requirements

    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.
    Section 7.2 Conditions Precedent

    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 ``Compact Documents'') have been duly authorized, executed and delivered by the Government, (2) each Compact Document and all of the provisions of each Compact Document are valid and binding and are in full force and effect in Tanzania, (3) each Compact Document has the status, if stipulated in such agreement, of an international agreement, (4) each Compact Document (and the execution, delivery and performance by the Government of each) does not and will not conflict with any other international agreement or obligation of the Government or any of the laws of Tanzania, and (5) MCATanzania has been duly established as an independent accountable entity, is validly existing as an office of the Government, and has the power and authority to perform the functions and carry out the obligations contemplated by the Compact Documents; and
    (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,
    [[Page 10482]]
    which the MCC may post on the MCC Web site or otherwise make publicly available; and
    (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. Section 7.3 Date of Entry Into Force

    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. Section 7.4 Compact Term

    This Compact shall remain in force for five years after its entry into force, unless terminated earlier under Section 5.1 (the ``Compact Term'').
    Article 8. Consultations

    Section 8.1 Consultation

    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) day

    SUMMARY:

    Compact with the Government of the United Republic of Tanzania,