A U.S. Government foreign assistance agency fighting to end global poverty.

Created by the U.S. Congress in 2004, with bipartisan support, as a different approach to U.S. foreign assistance.

What is MCC?

What’s so different about MCC?

1. Mission and structure

2. Competitive selection

3. Country ownership

4. Focus on results

Focused mandate: Reduce poverty through economic growth.

Mission and Structure

Corporate structure: Led by a governing Board of Directors

• Secretary of State (Chair)• MCC Chief Executive Officer• Secretary of the Treasury• U.S. Trade Representative• USAID Administrator• Four members of the private sector

Corporate Values:

• Collaboration• Learning• Excellence• Accountability• Respect

Competitive Selection

Ruling justly

Investing in people

Economic freedom

MCC measures countries’ policy performance based on 20 independent indicators.

Only low-income and low-middle-income countries are considered for MCC funding

1. Pass the Control of Corruption indicator

2. Pass either the Political Rights or Civil Liberties indicator

3. Pass half the indicators overall

Countries must meet the following criteria on MCC’s scorecard:

The “MCC Effect”• MCC grants are powerful incentives for countries to

adopt stable and effective policies in order to become compact-eligible.

• We’ve seen this most recently in Sierra Leone, Liberia and Honduras, among others.

• Open policies encourage private investment and increased trade, creating a sustainable environment for economic development.

2012 William & Mary/CGD Study Findings:• Assessed more than 100 countries• MCC eligibility criteria were repeatedly identified as

one of the three most influential external assessments of government performance; and

• The influence of the MCA eligibility criteria has increased, not diminished, over time

Country OwnershipMCC partner countries are responsible for the design and implementation of MCC programs.

Two types of MCC-funded programs:

Compacts:$66 million to $698 million5-year grant

Threshold Programs:$6.7 million to $55 million2-3 year grant

What does this mean?

Countries determine their own priorities.

Countries are held accountable for achieving results.

Countries lead program implementation, building capacity and strengthening country systems.

Sustainability

Distribution of investments (FY 2012)

Transportation (road, water & air),

32%

Agriculture, 18%Water supply & sanitation, 12%

Program admin & monitoring, 11%

Energy, 10%

Governance, 8%

Banking & financial

services, 5%

Health, education & community dev.,

4%

Policy reforms include:

• Sector policies and institution building• Procurement reform to improve transparency and

competitiveness• Access to land and land rights• Gender rights and economic integration• Financial regulatory reform• Anticorruption initiatives

Focus on Results

Quarterly Status Reports (QSRs)• Provide program overviews• Track investments• Monitor progress in each MCC country• Available to the

public

Quarterly Results Reports (QRRs)• Provide a snapshot of project-level and activity-level data:

• Projected economic benefits and beneficiaries, including ERRs, costs, and income gains

• Key performance indicators per activity

• Assessments of obstacles to target completion

• Project rescopings and key institutional challenges

• A full range of results, including policy reforms

• To obtain a compact QRR, contact the compact’s DCO Program Officer or Program Analyst

Compact Completion• Performance Evaluation• Impact Evaluation

Why evaluate?

AccountabilityLearning

Did we achieve the intended impact?What can we learn about what went right and what went wrong?

First Five Independent Evaluations – 2012• Examined farmer training activities in Armenia, El

Salvador, Ghana, Honduras, and Nicaragua

• MCC significantly exceeded its output and outcome targets for the evaluated activities; none of the five evaluations were able to detect changes in household income

• These activities total less than 13 percent of the total budget in these five compacts, and 2 percent of MCC’s global compact portfolio.

• Offer valuable lessons and a first look at how MCC uses feedback for accountability, learning and improving its work

MCC and USGPriorities• Presidential Policy Directive on

Global Development• Presidential Policy Directive on

Sub-Saharan Africa

Administration Priorities• Partnership for Growth• Feed the Future• New Alliance for Food Security• Power Africa• Trade Africa

New Country Partners• Ghana, Morocco, Tanzania, Niger, Liberia, and

Lesotho are compact-eligible.

• Tunisia, Nepal, and Guatemala are eligible for Threshold Programs.

MCC Strategic Plan: 2011-2015Five strategic goals:

Goal 1: Achieve demonstrable results which lead to sustainable development.

Goal 2: Support development of a sound policy environment for economic growth and poverty reduction.

Goal 3: Improve MCC’s capabilities to achieve its strategic objectives by partnering with other USG agencies, the private sector, and other development partners and using new funding structures, and new approaches to promoting economic growth

MCC Strategic Plan: 2011-2015Five strategic goals:

Goal 4: Ensure better integration of gender and social assessment into MCC practice

Goal 5: Ensure that MCC remains a learning organization through rigorous collection, analysis, and dissemination of program information, both internally and externally, and by continually evaluating and improving MCC’s operational effectiveness

For more information, visit intranet.mcc.gov.

Snapshot of MCC Transport Infrastructure Projects 2015Presented

by Yohannes Abebe

MCC Global Practice Leader Transport and Vertical Structures 

As of January 2013, rounded – 26 compacts, 25 countries, $9.2 billion  

16 Countries

$2B Contract Awarded

3,969 km Contract Awarded

2,153 km PC

657 km SC1,158 km 

RC

2,769 km Completed

PC – Primary Class SC – Secondary Class   RC – Rural Class

MCC Road Transport Accomplishments

The Philippines: MCC is rehabilitating 220 kilometers of roads in Samar and Eastern Samar provinces in the Philippines—among the country’s poorest regions. 

El Salvador: Nombre de Jesus Bridge, which passes 27 meters above the country’s Lempa River.

Benin:  MCC financed the addition of 600 meters of ship berthing space to the port’s new south wharf to be used in a new container terminal. 

Representative MCC Transport Projects 

MCC Transport Projects Require Service at stages and phases of the Project Cycle 

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Compact Implementing Structure

MCCWashington, DC

MCC Resident Mission

Host Country Government

$$

$$

Project Manager 1

AccountableEntity (MCA)

Project Manager 2

ContractorContractor Contractor

ProcurementAgent

Fiscal Agent/Funds Control

Project Manager 3

Common Payment System (Paid from

US Treasury)

Bank Account

Ensures Sound Fiscal Accountability

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Standard Contract Formats

Large works

• MCC has purchased licenses from the International Federation of Consulting Engineers (FIDIC) for large works:

• Design bid build (Red Book)• Design build (Yellow Book)

• MCC General conditions – identical in all FIDIC contracts• Conditions of Particular Application (COPAs) supplement and

amend the General Conditions

Small works, Goods & Consulting services

• For these contracts MCC is using World Bank standards with minor accommodations to reflect MCC regulatory requirements.

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• In Nov 2007, MCC decided to create Standard Bidding Documents for:• Small works• Consulting services• Design bid build• Design build• Goods• And others

• Why?• Consistent approach• International standards known in the market: FIDIC• Cost/price management• Risks consistent from contract to contract• A bidder on a road in Country X can count on the same general

conditions of contract if/when they bid on a road in another Country

Standard Bidding Documents

Procurement Opportunities 2104  ‐ 2015 Feasibility Studies (FS), Engineering Design and Environmental and Social Studies 

(ESP), TA Road Maintenance, Policy Reform  

El Salvador  ‐‐• Logistical Road Infrastructure Project  (28km) • Boarder Crossing and customs facilities improvements (5.8km)

Benin –• Expansion and rehabilitation of Approximately 276km of road development 

Tanzania ‐‐• Secondary and rural road development project (length TBD)• TA for Road Maintenance

Niger –• Road network periodic maintenance/Rehabilitation Project • TA for road maintenance

Nepal ‐‐MCC (Threshold Program) • Policy reform, training, capacity building in road maintenance planning and 

implementation

Thank you

•Procurement Process•Presented by

•Mary Jo Johnson•Procurement Director 

10/18/10 This is a Footer

MCC Program Procurement Guidelines

Similar to World Bank Procurement Guidelines with Important Exceptions:

• Limits restrictions on currency use• Prohibits national preference • Includes the excluded parties list under U.S. laws and policies • Identifies English as the official operating language • Excludes Government Owned Enterprises from MCC funded

contracts

Principles

Fair

Transparent Competitive

Open

Procurement Opportunities: MCC.gov

Visit: (http://www.mcc.gov/pages/business)

Procurement Opportunities

• Compact procurements• Administered by MCA Entities. • Contract opportunities are published to:

1. http://www.mcc.gov/2. http://mcc.dgMarket.com/3. http://www.devbusiness.com/

• Threshold procurements• Administered by USAID.• Opportunities published to http://www.FedBizOpps.gov/

• MCC corporate procurements• Administered by MCC.• Some tied to US companies.• Opportunities published to http://www.FedBizOpps.gov/• MCC also has an inter‐agency agreement with the Army Corps of Engineers for some engineering support work  

Top 10 Reasons to do Business with MCC

• 1. All Money Up‐front• All money is appropriated up front by the US congress with no incremental or partial funding. 

• 2. Paid by the U.S. Treasury• This mitigates most of the risks associated with working in Emerging or Poor economies and 

guarantees that invoices are paid as quickly as possible. 

• 3. MCC Checks Guarantee Companies a Fair Shake • The MCC model has checks and oversight at every step of the procurement process to make sure 

that companies are getting a fair shake 

• 4. Enforced International Environmental and Labor Standards• MCC works carefully to ensure that no MCC funded companies abuse the environment or engage 

in unfair/unsafe labor practices. 

• 5. Winning Contracts are Price Reasonable Contracts• MCC has a mandatory requirement for the MCAs to conduct a price reasonableness analysis of each procurement to ensure that no more and no less than a commercially reasonable price is paid. Prices considered unreasonably high or low may be rejected. 

•

Continued…• 6. No Government Owned Enterprises (GOEs)• MCC prohibits the award of MCC funded contracts to GOEs to guarantee a level playing field for MCC procurements.

• 7. No Local Preference• MCC provides no preference for host country firms. All firms are considered equal in the evaluation process. 

• 8. Expert Evaluation• The best bid or proposal will be awarded the contract, based upon the price and/or technical evaluation criteria. To avoid all bias and make sure that each proposal or bid is fairly assessed on its merits, the evaluation process is carried out by a technically qualified panel of experts.

• 9. A World of Possibilities• MCC offers a chance for companies to work in new places with less risk. This first step can be key to building a long term presence in a market.

• 10. The Business of Doing Good• Business partners working in MCA countries help to reduce poverty in some of the poorest 

countries in the world.