|Partner Country||Compact Amount||Signing||Entry Into Force||Closed Dates|
|Cabo Verde, 2012||66.2||2/10/2012||11/30/2012|
|El Salvador, 2014||277.0||9/30/2014||9/9/2015|
*Please note that the values above are the signed compact amounts and do not reflect lower actual expenditures due to early terminations or funds for a compact not being fully spent. The table on the next page reflects the net obligations/commitments associated with each compact.
Compact Obligations and Commitments $ in millions
|Compact||2010 & Prior||2011||2012||2013||2014||2015||2016||2017||2018||Total|
Threshold Program Agreements Signing Amounts (in millions of $)
|Country||Sub-Saharan Africa||Eurasia||Latin America||Middle East and North Africa||Signing Date||Completion Date|
|São Tomé & Principe||8.7||11/9/2007||4/15/2011|
|Sierra Leone||44.4||11/17/2015||In progress|
Results of Recently Closed Compacts
Jordan is one of the most water-scarce countries in the world, and severe water shortages constrain economic opportunities and impact daily life. MCC’s Jordan Compact invested $275 million to boost income and reduce poverty in Zarqa Governorate by increasing the supply of water available to households and businesses and improvements in the efficiency of water delivery, wastewater collection and wastewater treatment.
|Outputs||Water Network Project
Wastewater Network Project
As-Samra Wastewater Treatment Plant Expansion Project
|Preliminary and Expected Outcomes||
|Evaluations||Water & Wastewater Network Projects
The $434 million Philippines Compact sought to support reforms and investments to modernize the Bureau of Internal Revenue to increase fiscal space for public investment and reduce opportunities for corruption in tax administration as well as expand and enhance a community-driven development project to empower communities and encourage economic growth through small-scale infrastructure projects, and, finally, rehabilitate a secondary national road connecting the provinces of Samar and Eastern Samar, two of the poorest regions of the country.
|Policy Reforms||Revenue Administration Reform Project
Secondary National Roads Development Project
|Outputs||Revenue Administration Reform Project
Secondary National Roads Development Project
|Preliminary and Expected Outcomes||Revenue Administration Reform Project
Secondary National Roads Development Project
|Evaluations||Revenue Administration Reform Project
Secondary National Roads Development Project
MCC employs a risk-based approach to the management of its portfolio and uses a number of mechanisms to manage projects that face potential major modifications, including:
- Quarterly portfolio reviews of all compacts, with a focus on high-risk projects and activities;
- Early identification of high-risk projects;
- Close collaboration with partner countries to develop plans to prevent, mitigate and manage project restructuring; and
- Approval of modifications at the appropriate level.
MCC also conducts due diligence on programs in advance of compact signing to increase the reliability of technical, cost, and other estimates. During compact development, MCC makes project design modifications to mitigate potential completion risk, currency fluctuations and the potential for construction cost overruns.
|Indonesia||Green Prosperity Project / Green Prosperity Facility Activity ($242 million)||Reallocation of $37.9 million of funding from the Green Prosperity Facility for other compact uses, in response to the change of activities in the Facility||Grantee intake for the GP Facility ended in early 2016. With less than two years remaining to implement activities funded by the GP Facility, MCA-Indonesia determined that no further intake could occur without compromising the quality of activities or possible completion risk. As a result, excess funding in the GP Facility ($37.9 million) was reallocated from the GP Facility to the Community Based Nutrition Project ($4.7 million), the Procurement Modernization Project ($15.1 million), and within the PLUP Activity ($18.1 million).To comply with the compact, the PLUP Activity now covers a total of 45 districts rather than the original 26 districts. An additional $16.6 million was reallocated to finance the expansion of the PLUP Activity and $1.5 million was reallocated to mapping peatland hydrology in four priority districts in partnership with Indonesia’s Peatland Restoration Agency.
Under the Procurement Professionalization Activity, MCC is developing specialized training modules for the ministries of Public Works, Transportation, and Finance. The reallocation expanded the reach of the project, framework contracting and procurement management information system sub-activities for the ministries.
Estimating Compact Beneficiaries and Benefits
Under MCC’s results framework, beneficiaries are defined as an individual and all members of his or her household who will experience an income gain as a result of MCC interventions. We consider that the entire household will benefit from the income gain and counts are multiplied by the average household size in the area or country. The beneficiary standard makes a distinction between individuals participating in a project and individuals expected to increase their income as a result of the project. Before signing a compact, MCC estimates the expected long-term income gains through a rigorous benefit-cost analysis. MCC may reassess and modify its beneficiary estimates and/or the present value of benefits when project designs change during implementation.
|Compact 1 2||Estimated Number of Beneficiaries||Estimated Long Term Income Gain Over the Life of the Project (PV of Benefits) 3|
|Cape Verde 2005||385,000||$149,300,000|
|Cape Verde 2012||604,000||$112,900,000|
|El Salvador 2006||706,000||$377,800,000|
|El Salvador 2014||6,446,000||$224,500,000|
|Total for All Compacts 5||180,754,000||$10,468,000,000|
Portfolio by Sector
Investments by Sector
|Sector||Amount ($ Millions)|
|Transportation (Road, Water & Air)||$2,992.1|
|Health, Education & Community Services||$1,673.5|
|Water Supply & Sanitation||$1,088.6|
|Program Administration & Monitoring||$1,201.0|
Results by Sector
|Sector||Indicator||Total Portfolio Actuals (cumulative value 2005-present)||Data Points (number of compacts)||Active and Completed Countries Tracked (underlined indicates still active)|
|Roads||Temporary employment generated in road construction||49,822||6||Armenia, Burkina Faso, Cabo Verde, El Salvador, El Salvador II, Georgia, Ghana, Honduras, Mali, Moldova, Mongolia, Mozambique, Nicaragua, Philippines, Senegal, Tanzania, Vanuatu|
|Kilometers of roads completed||3,035||15|
|Agriculture & Irrigation||Farmers trained||309,997||14||Armenia, Burkina Faso, Cabo Verde, El Salvador, Georgia, Ghana, Honduras, Indonesia, Madagascar, Mali, Moldova, Morocco, Mozambique, Namibia, Nicaragua, Senegal|
|Farmers who have applied improved practices as a result of training||126,592||10|
|Hectares under improved irrigation||203,963||8|
|Value of agricultural and rural loans||$87,074,694||9|
|Water & Sanitation||Temporary employment generated in water and sanitation construction||21,241||6||Cabo Verde II, El Salvador, Georgia, Ghana, Jordan, Lesotho, Mozambique, Tanzania, Zambia|
|People trained in hygiene and sanitary best practices||12,135||6|
|Water points constructed||1,181||3|
|Operating cost coverage||104%||3|
|Access to improved water supply||53%||2|
|Education||Students participating||215,399||7||Burkina Faso, El Salvador, El Salvador II, Georgia II, Ghana, Mongolia, Morocco, Namibia|
|Graduates from MCC-supported education activities||62,211||5|
|Land||Legal and regulatory reforms adopted||123||7||Benin, Burkina Faso, Cabo Verde II, Ghana, Indonesia, Lesotho, Madagascar, Mali, Mongolia, Mozambique, Namibia, Nicaragua, Senegal|
|Land administration offices established or upgraded||384||8|
|Parcels corrected or incorporated in land system||329,659||8|
|Land rights formalized||312,381||7|
|Power||Kilometers of lines completed||4,294||3||El Salvador, Georgia, Ghana, Ghana II, Indonesia, Liberia, Malawi, Mongolia, Tanzania|
Sector Results at a Glance
Numbers are cumulative since the agency’s founding in 2004 and current as of March 2017.
Once a country is selected as eligible to develop a compact or threshold program, the first step in MCC’s process is to work with partner country officials to conduct a rigorous, joint analysis that identifies the most binding constraints to economic growth. These results help prioritize MCC’s investments in the areas that are the biggest impediments to private investment and poverty reduction and may include access to credit, governance, electricity, transportation or education. Constraints to growth are different for each country and ultimately drive MCC’s investment strategy. Below are highlights of MCC’s sector investments that have emerged from this analysis.
2,668 miles of electricity lines completed
MCC is making major investments in the energy sector to reduce energy poverty in Benin, Ghana, Liberia, Malawi and Sierra Leone, while encouraging power sector reforms that complement infrastructure investments. In Liberia, MCC’s compact funds the rehabilitation of a hydropower facility to increase the amount of generated electricity, facilitate lower overall electricity rates, and increase the reliability and adequacy of electricity. In Ghana, the government took significant steps to revitalize its power sector by inviting the private sector to invest in its national utility. Preparation for implementing a compact with Benin continues while significant construction works for large-scale, on-grid generation, transmission and distribution projects are underway in Malawi, as well as smaller-scale, on- and off-grid energy projects in Indonesia. In Sierra Leone, MCC began carrying out its threshold program to build the capacity of the newly established power regulator and power generation and transmission utility.
3,035 miles of roads completed
3,918 additional miles of roadway under construction
In May 2016, the Philippines, using MCC compact funding, successfully completed the reconstruction/rehabilitation of 174.95 kilometers of a road in the Samar and Eastern Samar provinces of the country that will help lower transport costs and travel time and opens up possibilities for new markets. For the Niger Compact, investments were prepared for the upgrading of 307 km (191 miles) of roads to international standards, and enhancement of both national and regional connectivity. Implementation of technical assistance and policy reform activities that would set Liberia on a long-term path to a sustainable road maintenance were started.
Water and Sanitation
7,401,563 estimated beneficiaries of improved water and sanitation services.
MCC supports capital improvements and policy and institutional reforms to improve the level and quality of water and sanitation services in partner countries. MCC’s five year compact with Jordan, for example, closed in FY 2016 after investing more than $200 million for rehabilitation and construction of water supply and wastewater infrastructure including investment in the As-Samra wastewater treatment plant where treated effluent will be diverted for agricultural use saving precious bulk water supply for this water poor nation. MCC’s compact investment in Zambia is strengthening the main water utility company to improve billings and collections and provide more reliable service to its customers. In Sierra Leone, MCC is partnering with the government on a threshold program to implement policy reforms, build institutional capacity and improve governance in the water sector in Freetown. A comprehensive assessment of the water utility in Guma Valley was conducted to determine the priority areas of assistance for strengthening utility performance but because a cost-benefit analysis is not required for threshold program assistance, the estimated number of beneficiaries above does not include the Sierra Leone beneficiaries.
Agriculture and Irrigation
309,997 farmers trained
504,004 acres under improved irrigation
In July 2016, MCC signed a $437 million compact with Niger focused on strengthening the agricultural sector. Through the compact’s Irrigation and the Market Access Project, MCC will work with the Government of Niger to improve irrigation, including the rehabilitation and development of three large-scale irrigation systems in the Dosso and Tahoua regions, to increase crop yields, sustainable fishing and livestock productivity. In addition, the project will reform policies and institutions, including the establishment of a national water resource management plan and natural resource and land use management plans, and create local capacities to increase understanding of best-practices to sustainably use and maintain irrigation and market infrastructure.
312,381 household, commercial, and legal entities gained protected land rights
MCC works with partner countries to improve land governance and administration, strengthen property rights, and stimulate private-sector investment for more productive land use. In Cabo Verde, MCC has invested to reduce the time required to register property rights and establish more conclusive land records in areas with high development potential. MCC funding was used under a pilot activity to complete surveys for 100 percent of land parcels on the island of Sal, which are now being registered. This activity led to the passage of a legal amendment in August 2016 that streamlined the land survey and registration process. MCC is now funding the survey and registration of an additional 22,824 parcels on the islands of Boa Vista, Maio, and Sao Vicente. In Indonesia, MCC’s investment in natural resource management and renewable energy includes development of a methodology for community-based participatory mapping of village boundaries and cultural and natural resources. Following this methodology, villages are able to produce legally recognized village maps to enhance land use plans. As of September 30, 2016, MCC funding had assisted 114 communities in defining and demarcating the boundaries of their villages. Land and natural resource information systems were being installed in government offices in 35 districts across 10 provinces to provide decision-makers with the information they need to encourage investment while effectively supporting the management of their land and other natural resources.
758 education facilities constructed or rehabilitated
4,459 instructors trained
215,399 students participating in MCC-supported education activities
MCC works with partner countries to ensure that students obtain the knowledge and skills demanded by the private sector. In FY 2016, El Salvador officially announced its commitment to reform the technical and vocational education and training (TVET) system, identifying four transformative industries to target. The Salvadorians are establishing Skills Sector Committees for each of these four industries to define demand-driven training programs to feed into the overall technical and vocational educating training system. In Georgia, 12 schools have been completed, with another 16 on track to be completed by December 2017 and hundreds of students will be able to move into highly improved learning environments. Also in Georgia, more than 400 people were trained and certified as trainers to conduct the first of a Leadership Academy series for school principals, and in turn, they have trained more than 1,600 principals. The MCA-Georgia TVET Facility has awarded its first round of grants totaling approximately $12 million, slated to be disbursed in 2017. In September 2016, construction tenders were successfully launched for rehabilitation of pilot schools for MCC’s Morocco Compact. Also in Morocco, preparations are underway to field test an innovative Integrated School Improvement Model that will eventually be implemented in approximately 100 secondary schools, and planning advanced significantly for a TVET Grant Facility as well as a results-based financing component of the compact that aims to improve job placement for women and at-risk youth. Further, the Guatemala threshold program now includes a TVET component.
1,506 health providers trained on growth monitoring
3,866 service providers trained on community-led total sanitation triggering
11,832 service providers trained on infant and young child feeding
MCC works with partner countries to integrate sanitation, maternal and child health, and nutrition interventions to reduce stunting and increase household income. In Indonesia, MCC has committed more than $130 million to improve nutrition and health. MCC’s Indonesia Compact includes a partnership with the World Bank using incentives-based community grants to increase the demand for health, nutrition and education services and improves the health sector’s capacity to respond to increased demand at the facility and community level. In Sierra Leone, MCC has committed $5 million to improve access to reliable and safe water and sanitation (WASH) services, and to promote WASH practices at the household level. Increased access to safe drinking water, food, and sanitation services is critical to improving children’s nutritional status and preventing environmental enteropathy, which has been associated with growth failure in children.
Agriculture and Irrigation (all common indicators data as of March 10, 2017)
|Process Indicators||Output Indicators||Outcome Indicators|
$ Value of signed irrigation feasibility and design contracts
% disbursed of irrigation feasibility and design contracts
Value of signed irrigation construction contracts (USD)
% disbursed of irrigation construction contracts
|(AI-5) Temporary employment generated in irrigation||(AI-6)
|(AI-7) Enterprises assisted||(AI-8)
Hectares under improved irrigation
Value of agricultural and rural loans (USD)
|(AI-11) Farmers who applied improved practices as a result of training||(AI-12) Hectares under improved practices as a result of training||(AI-13) Enterprises that have applied improved techniques|
|Cabo Verde I||–||–||5,167,848||97.6%||–||553||–||13||–||617,000||106||–||–|
*Europe, Asia, Pacific, Latin America
**Gender totals may not match overall totals due to lack of gender counting in earlier compacts (applies to all common indicator tables).
Data are preliminary and subject to adjustment. Grey shading indicates close-out compacts; data revision is not expected for these compacts. Indicators in this Results Framework may be added, removed, or modified as MCC’s investments in education evolve over time. All MCC education programs have as their long-term end goal an increase in individual or household income and a corresponding decrease in poverty (applies to all common indicator tables).
|Process Indicators||Output Indicators||Outcome Indicators|
Value of signed educational facility construction, rehabilitation, and equipping contracts (USD)
Percent disbursed of educational facility construction, rehabilitation, and equipping contracts
Legal, financial, and policy reforms adopted
|(E-4) Educational facilities constructed or rehabilitated||(E-5) Instructors trained||(E-6)
Students participating in MCC-supported education activities
|(E-7) Graduates from MCC-supported education activities||(E-8)
Employed graduates of MCC-supported education activities
|El Salvador I||EAPLA||9,857,585||99.8%||–||22||378||30,672||4,285||–|
|El Salvador II||–||–||–||–||–||–||–||–|
*Number decreased due to the negative value of the variation orders.
|Output Indicators||Outcome Indicators|
Legal and regulatory reforms adopted
Land administration offices established or upgraded
|(L-3) Stakeholders trained||(L-4)
Conflicts successfully mediated
Parcels corrected or incorporated in land system
Land rights formalized
|(L-7) Percentage change in time for property transactions||(L-8) Percentage change in cost for property transactions|
|Cabo Verde II||25||23||435||–||14,179||596||–||–|
|Process Indicators||Output Indicators|
|Country||Region||(P-1) Value of signed power infrastructure feasibility and design contracts||(P-2) Percent disbursed of power infrastructure feasibility and design contracts||(P-3) Value of signed power infrastructure construction contracts||(P-4) Percent disbursed of power infrastructure construction contracts||(P-5) Temporary employment generated in power infrastructure construction||(P-6) Generation capacity added||(P-7 and P-10) Km lines upgraded or built||(P-8) Transmission throughput capacity added||(P-9 and P-11) Substation capacity added||(P-12) Customers added by project||(P-13) Maintenance expenditure-asset value ratio||(P-14) Cost-reflective tariff regime|
|Country||Region||(P-15) Total electricity supply||(P-16) Power plant availability||(P-17) Installed generation capacity||(P-18) Transmission system technical losses (%)||(P-19) Distribution system losses||(P-20) Commercial losses||(P-21) System Average Interruption Duration Index (SAIDI)||(P-22) System Average Interruption Frequency Index (SAIFI)||(P-23) Total electricity sold||(P-24)
Operating cost-recovery ratio
|(P-25) Percentage of households connected to the national grid||(P-26) Share of renewable energy in the country|
|Process Indicators||Outputs||Outcome Indicators|
Value of signed road feasibility and design contracts
% road feasibility & design contracts disbursed
|(R-3) Kilometers of roads under design||(R-4)
Value of signed road construction contracts
Percent disbursed of road construction contracts
|(R-6) Kilometers of roads under works contracts||(R-7) Temporary employment generated in road construction||(R-8)
Kilometers of roads completed
Average annual daily traffic
Road traffic fatalities
|El Salvador I||18,321,410||99%||223||248,378,825||97%||223.0||–||223.32||–||–||–|
|El Salvador II||–||–||32||–||–||–||–||–||–||–||–|
|Cape Verde I||3,520,000||92%||63||24,280,000||100%||40.6||–||40.60||2.00||–|
Water Supply, Sanitation, and Hygiene
|Process Indicators||Output Indicators|
Value of signed water and sanitation feasibility and design contracts (USD)
Percent disbursed of water and sanitation feasibility and design contracts
Value of signed water and sanitation construction contracts (USD)
Percent disbursed of water and sanitation construction contracts
|(WS-5) Temporary employment generated in water and sanitation construction||(WS-6)
People trained in hygiene and sanitary best practices
Water points constructed
|Cabo Verde II||AFRICA||730,419||71.8%||17,207,069||48.9%||1115||32||–|
Water Supply, Sanitation, and Hygiene (continued)
Non revenue water
|(WS-9) Continuity of service||(WS-10) Operating cost coverage||(WS-11)
Volume of water produced*
|Residential population connected to sewer system*||Residential population*||(WS-12) Access to improved water supply||(WS-13) Access to improved sanitation||(WS-14) Residential water consumption*||(WS-15) Industrial/Commercial water consumption*||(WS-16) Incidence of diarrhea*|
|Cabo Verde II||AFRICA||–||–||–||–||–||–||–||–||20.0||–|
*This is a monitoring indicator; any change over baseline data represents the current trend and does not represent the direct impact of MCC investment.
FY 2017 Corporate Priorities
For FY 2017, MCC management established seven specific priorities to guide agency planning and performance for the year. These goals are intended to advance and deliver high quality programs, improve organizational health and effectiveness, and set MCC up for long term success. As in past years, these corporate priorities are the starting point for annual department and division goal-setting, from which staff develop their individual performance plans. Below you will find MCC’s FY 2017 corporate priorities with a brief description of MCC’s progress to date.
|Advance and deliver high‐quality compacts in a timely manner.||As described above, MCC is on target to present compact programs for Nepal and Cote d’Ivoire to MCC’s Board of Directors for approval in FY 2017, and has maintained progress on development of Mongolia, Senegal, and Sri Lanka compacts to facilitate success in FY 2018.|
|Effectively oversee compacts in implementation.||Key indicators for compact implementation are on track, with entry into force anticipated for the Benin and Morocco compacts in FY 2017. Additionally, a successful close out in Jordan, and planning for compact closure in Cabo Verde is currently underway.|
|Advance and deliver high‐quality threshold programs in a timely manner and effectively oversee programs in implementation.||Programs for Kosovo and Togo are anticipated to be presented to MCC’s Board in FY 2017, with implementation on track in Honduras, Guatemala and Sierra Leone.|
|Develop a strong and dynamic knowledge management system, set of business practices, and tools to systematically share and deploy learning and results internally and externally.||MCC recently initiated an assessment of the agency’s knowledge management practices, which is scheduled to be completed by the end of FY 2017.|
|Develop and deploy corporate risk and portfolio management tools to inform resource allocation and strategic decisions.||In accordance with OMB Circular A-123, MCC’s Chief Risk Officer is leading preparation of MCC’s risk profile, with the support of a recently established internal risk committee. The risk profile is on track to be delivered in FY 2017.|
|Enable transparent and efficient decision-making and integrate MCC CLEAR values and norms into daily operations to facilitate program success and strengthen organizational health.||MCC initiated a new Executive Decision Group to make decision making more efficient and transparent. The agency also developed new compact development guidelines and refined MCC’s investment criteria to provide technical teams and our country partners with clear standards and more timely guidance from management.|
|Strengthen and motivate agency workforce through data‐driven workforce planning, consistent performance expectations, and improved performance management systems d feedback.||MCC initiated implementation of a new performance management system, including standardization of performance expectations and new business practices for employee feedback and oversight. Ongoing workforce planning efforts will be incorporated into MCC’s agency reform plan, in accordance with OMB guidance.|