Compact Development Guidance
As of March 2013
Chapter 1: Establishment of the Country Compact Development Team
Once a country is selected as eligible to develop an MCC compact, the first and most important step that countries must take to initiate the compact development process is to assemble a team (Compact Development Team) that will be responsible for the management of the compact development process. The Compact Development Team will be MCC’s primary partner in compact development.
The administrative costs associated with the Compact Development Team are the responsibility of the eligible country, and can vary between $500,000 and $3 million. The composition on the team will change over time as the compact development process progresses and may comprise both full-time and part-time staff.
Initial Team Members
A full-time Coordinator will lead the Compact Development Team and the overall compact development process. The Coordinator should have a mandate to make decisions, manage cooperation by relevant ministries, coordinate with donors, and conduct public consultations. The Coordinator will need dedicated financial and administrative resources to carry out all aspects of compact development.
The Compact Development Team should include one or more Economists with project development experience to oversee the Constraints to Economic Growth Analysis and at later stages incorporate economic analysis in program and project design and ensure that the economic rate of return of proposed projects is rigorously analyzed. The Economist will also work closely with the Compact Development Team’s Monitoring and Evaluation Expert to ensure that the economic logic for each project is reflected in results-measurement indicators.
Private Sector Development Expert
The Compact Development Team should include a Private Sector Development Expert to oversee the Investment Opportunity Process and to work with the Economist to identify enterprise-level constraints to growth in the constraints analysis. Once projects are identified, the Private Sector Development Expert will identify and develop opportunities for promoting private investment in or complementary to the compact program.
Social Inclusion and Gender Integration Expert
The initial Compact Development Team staff should also include a social scientist (e.g., sociologist or anthropologist) with gender expertise. The Social Inclusion and Gender Integration Expert will lead the Social and Gender Constraints to Poverty Reduction Analysis (a complement to the constraints to growth analysis) and contribute to the design of the consultation strategy to ensure it takes into account the participation of women and other vulnerable groups. The Expert will also ensure that social and gender issues are addressed during project definition and appraisal.
Expanding the Team over Time
Once constraints to growth have been identified, Compact Development Team Technical Experts will be responsible for developing and appraising compact project proposals, and liaising with MCC on all project-related issues. The Technical Experts will be responsible for meeting MCC’s sector-specific due diligence guidance.
Monitoring and Evaluation (M&E) Expert
A Compact Development Team M&E Expert will be responsible for ensuring that the compact’s economic logic is reflected in results measurement indicators; the Expert will also ensure that project goals and expected results are articulated clearly along the continuum of results from inputs to outputs to outcomes, consistent with MCC’s Monitoring and Evaluation Guidance. During the initial phases of compact development, the M&E Expert will be responsible for refining the compact logic to ensure there is a clear relationship between the Compact Development Team’s proposed projects and constraints to economic growth. Once projects are identified for funding, the M&E Expert will work closely with the Compact Development Team Technical Experts to identify performance indicators, baseline data, and targets for the compact.
Environmental and Social Performance Expert
The Compact Development Team’s Environmental and Social Performance expert should have experience assessing environmental and social issues (such as environmental regulations and requirements, involuntary resettlement, and health and safety risks). The expert will work with the Compact Development Team to ensure that environmental and social considerations are factored into feasibility studies, project plans, and cost estimates, consistent with MCC’s Environmental and Social Performance Guidance.
Legal, Financial Management, and Procurement Experts
Legal, financial management, and procurement expertise will be required once compact projects have been identified and the Compact Development Team begins planning compact implementation. Legal counsel will assist with compact negotiations and the establishment of the accountable entity. Financial management specialists will ensure that the country’s financial management meets MCC’s Cost Principles for Governments Implementing MCC Compacts. Procurement experts ensure that the program’s procurement practices are consistent with MCC’s Compact Procurement Guidelines.
Project Management Specialist
As compact projects are defined, a Project Management Specialist should join the Compact Development Team to conduct a detailed analysis of proposed project schedules, cost estimates, resource requirements, risks, quality assurance and procurement planning.