Conditions Precedent

Key Conditions Precedent
Key Compact Component(s)	Major Condition Precedent or Policy Reform Required	Rating
Infrastructure Project	Infrastructure Regulatory and institutional aspects completed for the creation of a regulatory authority, which will be responsible for the technical and economic regulation of the ports and maritime sectors and establishment and supervision of standards of service in terms of price, quality, security, and competition.	Met on Time
Infrastructure Project	Infrastructure By no later than December 31, 2005, establish the Road Maintenance Fund with a structure and functions acceptable to MCC and in accordance with the Transport Sector Letter.	Met on Time
Infrastructure Project	Infrastructure Completion of ongoing customs modernization program including simplification of tariff structure, improved access control at customs facilities, information technology improvements, improved organizational structure and implementation of customs code.	Met on Time
Infrastructure Project	Infrastructure Government fully funds the Road Maintenance Fund with no less than 300,000,000, Cabo Verdean Escudos and thereafter gradually increased, in accordance with the schedule agreed upon by the parties, the financing of the Fund to meet the maintenance needs of the country’s road network, through collection of user fees (fuel levy or tax, levy on heavy vehicles).	Met on Time
Private Sector Development Project	Private Sector Development Prior to any MCC disbursement or re-disbursement for technical assistance to microfinance institutions under the Credit Activity, Cabo Verde will have enacted legislation that brings non-bank credit providers under Bank of Cabo Verde regulation.	Met on Time
Watershed Management and Agriculture Support Project	Watershed Management and Agriculture Support Project The Government has eliminated regulatory and legal obstacles to movement of inspected and certified horticultural products, including taking all necessary regulatory or other actions to lift the embargo on exports of horticultural products from Santo Antão	Met Late Following delays in construction of the Post Harvest Center
Water Management and Soil Conservation Activity	Watershed Management and Agriculture Support Project The Government has implemented and is maintaining a water fee system satisfactory to MCC (i) in accordance with fee schedule, which includes a fee paid by users; covers operating, delivery, and maintenance costs; reflects the scarcity of water resources in the country; and is transparent and, (ii) utilizing a formula for an annual adjustment in the fee rate based on consistent measurement of the changes in the water table and otherwise acceptable to MCC.	Met Late
Watershed Management and Agriculture Support Project	Watershed Management and Soil Conservation The Ministry of Environment and Agriculture and the Outside Project Manager has implemented a “fee for services” policy (satisfactory to MCC), charging fees for quality inspections and certifications.	Met Late Following delays in construction of the Post Harvest Center