NSDD-38/Mozambique - COM Approval of Millennium Challenge

UNCLAS SECTION 01 OF 02 MAPUTO 000364

SIPDIS

SIPDIS

STATE FOR M/R:APONCE, AF/EX:BGATES, AF/S:HTREGER

E.O. 12958: N/A
TAGS: AODE AMGT KMRS MZ
SUBJECT: NSDD-38/Mozambique - COM Approval of Millennium Challenge
Corporation Staffing in Mozambique

Refs: A) State 18065
B) NSDD-38 Request Case Number MCC-MOZ-32702-1262007 C)Guidance for
COMs on NSDD-38 Requests


1. The Chief of Mission approves the request by the Millennium
Challenge Corporation to establish five full-time positions - one
U.S. direct hire position, one either direct hire or PSC position,
and three local hires - in Maputo, with the conditions and changes
noted in para 8. These positions are necessary for successful
implementation of the Millennium Challenge Corporation's expected
compact with the Mozambican government. This compact is expected to
provide several hundred million dollars worth of assistance over a
five-year period, primarily in the areas of roads, water, and
sanitation.


2. Mission Performance Plan: Post's FY07 MPP anticipated one USDH
MCC position, and the FY08 MPP cited the need for both the Director
and the Deputy Director positions. The MPP only included USDH
positions and so did not address the three local hire positions.


3. Workload: Not applicable, as MCC does not currently have staff
at post. Non-MCC staff lack the required expertise in MCC's planned
compact and its procedures. Also, other-agency resources are fully
involved in implementing other programs.


4. Other Options for Accomplishing Function: It would be unlikely
that the anticipated compact could be successfully implemented
without the permanent, in-country presence of a direct-hire director
of sufficient rank to develop relationships with and engage senior
GRM officials. MCC has relied on frequent TDY visits during the
lengthy process of devising a compact, and the delays in that
process have provided evidence of the drawbacks of this approach.


5. Administrative Support/Space/Funding Arrangements:
MCC plans to locate its office in the existing USAID facility.
There is no room in the current chancery or the two annexes closest
to the chancery, and USAID has the extra space. Because MCC will be
collocated with USAID, it will be most efficient for MCC to obtain
many of its services from USAID rather than ICASS, including
Computer/Telecommunications Support, Reception, Motor Pool, Office
Supplies/Support, STL Non-Residential BOE, Customs/Shipping,
Financial Management, Travel Services, and even Vehicle Maintenance
and surge motorpool support. Under this scenario, ICASS would
provide MCC with Basic Package, Health Services, CLO, Personnel,
General Services, Information Management (pouch),Language
Instruction (English for FSNs),and STL Residential BOE. Actual
experience will determine the optimal mix of service provision.
However, for the purpose of cost estimation, it is assumed here that
all administrative support will be provided by ICASS. On this basis,
MCC's annual cost for administrative support would be approximately
$230,000. Additional costs for its LES, residential lease,
utilities and guard service is estimated to total $270,000 per year.
In addition, MCC will incur start-up costs for its offices and
residence of approximately $200,000. These estimates do not include
the cost of MCC's USDH salary/benefits/allowances, and in-country
travel. Relatedly, it is post's understanding that MCC will need to
seek setback and collocation waivers from Diplomatic Security for
them to occupy current USAID space. Housing for non-local staff
shall be provided in a manner consistent with applicable FAM
regulations.


6. Benefit/Security Tradeoff: While Maputo is a critical crime
threat post, the benefit of being able to implement an important
Presidential initiative such as the MCC in Mozambique outweighs the
security risks associated with the addition of five new staff
members.


7. Other: MCC has stated in the Ref B request that the assigned
Resident Country Director and Deputy Resident Country Director (the
only two US-hired positions in this request) will receive security
and working in an Embassy training before coming to post.


8. Conditions and Changes to Request:

a) Post understands from MCC that Position 2, the Deputy Resident
Country Director, may be either a USDH (as indicated in the
application) or a PSC position.

b) As noted in MCC's trip report, positions 3, 4, and 5 will be
graded at levels to be determined by the CAJE process at post.

c) Construction of a New Embassy Compound is expected to begin in FY
2010, though this date could change. MCC and all other USG agencies
(except Peace Corps) will collocate in the NEC. The ongoing
planning process has taken into account, in consultation with MCC,
the expected size of the MCC office. Upon the move to the NEC,
support services such as motor pool for nearly all agencies will be
provided by a combined ICASS Joint Management Section (JMS). This
will affect several of the services that USAID will provide until
then. MCC will receive motor pool services from the JMS motor pool,

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and the driver position (position 5 in this request) is likely to be
abolished or transferred to the JMS motor pool.

d) Post understands from MCC that the language in part IV of the
justifications for positions 3, 4, and 5, the Development Assistant
Specialist, the Administrative Assistant, and the Driver, which says
the MCC believes it is best that these positions be filled by USDH
employees with security clearances is incorrect, and that MCC's
intention is that the positions should be locally recruited, as is
stated in the Employment Type field for each position.

e) Both ref A and ref B contain references to Lesotho and the GOL
that post assumes should refer to Mozambique.


9. Post believes that the issues raised in refs A-C have been
satisfactorily addressed and that the strong positive contributions
these positions will make towards implementation of the MCC Compact
outweigh the security and other concerns associated with adding
positions. The Chief of Mission approves the proposal as outlined
in Ref B, with the conditions and changes listed in para 8. Please
advise if additional information is required.

Johnson