MALI'S MCC COMPACT ENTERS IMPLEMENTATION PHASE

UNCLAS BAMAKO 000798

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PREL EINV ECON EAGR ML
SUBJECT: MALI'S MCC COMPACT ENTERS IMPLEMENTATION PHASE

1.(U) On September 11 the Secretary General of the Presidency,
Django Sissoko, and the MCC Resident Country Director signed an
amendment to Mali's MCC Compact and a linked Governance and
Disbursement Agreement (GADA). With the compact officially
restructured and agreements with relevant Malian implementing
entities in place, Mali's MCC compact has now moved past required
preparatory stages and firmly into the implementation phase.
Groundbreaking for the first aspect of the MCC project is
anticipated in November 2009.

2.(U) The signing ceremony was attended by the Charge d'Affaires;
the MCC's local implementing partner, MCA-Mali; and members of the
local press corps. The amendment and GADA marked the end of five
months of negotiations aimed at revising the Compact to more
accurately reflect cost, feasibility and time-based realities.

3.(U) On September 12 the Airports of Mali (ADM),the National
Agency for Civil Aviation (ANAC),Energy of Mali (EDM),the National
Direction of Health and Pollution Control, and the Office du Niger
each signed Implementing Entity Agreements (IEAs) with MCA-Mali at
the Prime Minister's office with Prime Minister Modibo Sidibe
presiding. Also present were the Charge d'Affaires, the MCC
Resident Country Director, and the Ministers of Foreign Affairs,
Finance, Industry and Commerce, and Equipment and Transport. The
signature of these five IEAs gives the Malian Government full
responsibility for project management through the design, execution
and turnover phases of the Compact. The IEAs also satisfy MCC
conditions regarding timely payment of the program.

4.(U) September 2008 also marks a milestone in terms of progress on
due diligence, development of technical terms of reference, and the
launch of key procurement actions. Three significant project
activities are now planned for the coming months, including:

- The Niono-Goma Road Supervision and Works contracts which are in
the negotiation phase, with mobilization expected by November 2008.

- The Design and Supervision Contracts for the new Bamako Senou
Airport project is in its final review stages, with mobilization
expected by December 2008.

- The Alatona Irrigation Infrastructure Supervision and Phase 1
Works contract have been launched, with mobilization projected for
January 2009.

5.(SBU) Comment: The September 11 and 12 signing ceremonies
signified the beginning of Mali's MCC compact implementation phase
and marked two important steps toward tangible progress visible to
everyday Malians. President Amadou Toumani Toure has repeatedly
expressed his support for the MCC Compact, most recently during an
August 16 meeting with Health and Human Services Secretary Michael

O. Leavitt, during which he expressed the hope that he would be able
demonstrate tangible progress prior to the conclusion of President
Bush's administration. President Toure has noted that the length of
the MCC's five-year compact, from 2007 to 2012, coincides with his
own five-year presidential term and that he views the successful
implementation of the MCC Compact as a major part of his legacy for
Mali.

LEONARD