Conditions Precedent

To promote and encourage desired investment outcomes under the compact, MCC and the government agreed that the following conditions precedent would be met before entry into force of the compact agreement or before disbursements of funds needed for the projects identified below.

Key Conditions Precedent
Key Compact Component(s)	Major Condition Precedent or Policy Reform Required	Rating
Private Sector Development Project	Civil Legal Reform Successful implementation of reforms in case management in High Court and Commercial Court. Successful operation of Commercial Court – with appropriate jurisdiction, new procedural rules including mediation procedures, and sufficient dedicated staffing.	Full implementation delayed due to delayed procurement of computerized Case Management Systems. However, many process reforms made on time.
	Harmonize Laws with Legal Capacity of Married Persons Act
Health Sector Project	Health Care Centers Infrastructure Activity The Government will, to the satisfaction of MCC, undertake a comprehensive technical review and update of the 2005 National Healthcare Waste Management Plan, including but not limited to preparation of updated capital and recurrent costs associated with the plan and a long-term finance strategy for funding these costs. The Government will have enacted any new medical waste management legislation, and/or reform any existing legislation, that has been prescribed in the updated National Health Care Waste Management Plan, to include but not be limited to, new or reformed policies, regulations, and standards pertaining hazardous waste management, occupational health and safety, infectious disease control, pollution prevention, and/or related subjects, per the recommendations of the updated plan.	The management plan and recurring costs were met on time. The Legislation was deferred one quarter due to multi-ministerial review.
Health Sector Project	Health Care Centers Infrastructure Activity	A related condition laying out the operationalization of decentralization encountered delays, was partially deferred, and completed by September 2012.
Health Sector Project	Health Program Implementation Unit Implementing Entity Agreement between MCA-Lesotho and the Ministry of Health and Social Welfare signed and effective.
Private Sector Development Project	Land Administration Reform Activity
Private Sector Development Project	Land Administration Reform Activity Passage of legislation that enables the establishment of a new land administration authority that is professionally managed, autonomous in operations, self-sustaining, and provides efficient and cost-effective land administration services to public and private users.	Nine month delay: funding of the Land Activity was suspended for 45 days until the Act was passed.
Private Sector Development Project	Land Administration Reform Activity Passage of a new Land Act and implementing regulations that: (1) establish greater land tenure security for all land occupants; (2) include provisions for compulsory acquisitions of land by the State that ensure prompt payment of compensation and protection from arbitrary takings; (3) ensure gender equity in land ownership and land transactions and is congruent with the Legal Capacity of Married Persons Act; and (4) establish a simplified framework for systematic regularization and registration of land and mechanisms that increase access to land and encourages formalization of land rights.	Twelve month delay: funding of the Land Activity was suspended for 45 days until the Act was passed.
Water Sector Project	Metolong Dam Program Management Activity Establishment of Metolong Authority and Metolong Project Management Unit
Water Sector Project	Metolong Dam Program Management Unit Activity Full funding for Metolong Dam Project such that no material funding short fall is present based upon the confidential cost estimate of the dam design engineer.	$300 million additional funding in loans leveraged to address shortfalls.