attachment J.6.pdf

UNCLASSIFIED

Statement of Work Integrated Technical Advisory Consultant Services for Fast Track Compact Development

A. Task Order No 1: Togo Togo was selected as Compact eligible by MCC’s Board in December of 2022. Located on Africa’s west coast, Togo is bordered by Ghana, Benin, and Burkina Faso and is home to approximately 8.5 million people. The poverty level is twice as high in rural areas (58.8%) than in urban areas (26.5%). This is due in large measure to an annual population growth rate of 2.5% that is outpacing development progress, concentrated economic growth in the modern sectors, and limited access to quality services. Poverty is also higher in female-headed households (45.7%) than in male-headed households (45.2%). Women remain more vulnerable, as they have less access to economic opportunities, education, health, and other basic socioeconomic facilities. Togo’s score on the human capital index (HCI) remains low at 0.43.

This means that children born in Togo today will be only 43% as productive when they grow up as they could be if they had access to good health, education, and nutrition (World Bank).

It is a low-income West African economy; primarily agrarian economy; has a deep-water port; growing international shipping locale; improving privatization and public budgeting transparency; key phosphate mining industry; extremely high rural poverty; French is the official language (CIA Factbook).

Togo is currently implementing a US$35M Threshold Program that includes both Information and Communications Technology and Land Rights projects.

• The MCC Togo Threshold Program is designed to improve citizens’ access to high quality and affordable Information and Communications Technology (ICT) services—both mobile phone services and Internet—by encouraging private sector investment, developing an independent regulatory regime, expanding service to underserved areas, and increasing the use of ICT among women and small businesses.

• The threshold program will also seek to expand access to formalized land through the recognition and protection of legitimate land rights in five pilot areas across the country and to develop a regulatory framework to implement the proposed new land code. The threshold program incorporates stringent accountability mechanisms to ensure that MCC funds are tied to results and are used only for programmatic purposes.

The government of Togo has a Government of Togo 2025 [Development] Road Map of which approximately three quarters are related to digital transformation. MCC and the Government of Togo are currently and jointly conducting the Constraints Analysis phase, which includes aspects of Gender and Social Inclusion, Private Sector Opportunities Assessment, and Climate Change and Natural Capital assessments.

There was no a priori assumption that the sectors in the Threshold Program will automatically be selected for inclusion in a Compact. Nonetheless early indications suggest that the following sectors may be possible constraints to economic growth – with an emphasis on the first two:

https://www.mcc.gov/news-and-events/release/release-121422-mcc-fy23-new-country-selections https://www.worldbank.org/en/country/togo/overview https://www.cia.gov/the-world-factbook/countries/togo/summaries/#economy https://www.mcc.gov/where-we-work/program/togo-threshold-program https://presidence.gouv.tg/feuille-de-route-gouvernementale-togo-2025/ https://www.mcc.gov/resources/doc-pdf/climate-change-strategy https://www.mcc.gov/resources/doc-pdf/climate-change-strategy

• Energy

• Digital Transformation

• Human Capital

• Innovation

Consultants must demonstrate a capacity to rapidly staff up a qualified team.

The Government of Togo and MCC agreed to jointly pilot a fast-track Compact Development Process.

This accelerated Compact development process, explicitly, excludes large, lumpy, projects with substantial design, environmental, costly climate risks or resettlement complexities. Rather the investment opportunities are more likely to be in modular and scalable with low[er] complexity and risk.

The Compact development process will focus on co-development of the project description with rapid iterations. The goal is to converge very rapidly on a problem definition and progressive reduce uncertainty over subsequent iterations. In this context the Consultant will support MCC staff by providing, and recommending, key elements of actionable due diligence.

The MCC team will be using an Agile or Hybrid-Agile planning approach. The approach combines high level milestones (quarterly) with sprints (biweekly). The Compact Team has been modified to include four members from MCC and four members from the Government of Togo; this team will be supported by additional MCC staff and consultants and additional human and consulting resources acting on behalf of the government of Togo.

MCC is working with the Government of Togo (GoT) to identify and prepare project proposals for a compact program. The compact may include elements of modular and scalable infrastructure, human capacity development, policy and institutional reforms, gender and social inclusion initiatives, climate change risk management, and environmental initiatives, alongside safeguard measures to protect against adverse environmental, social, and gender consequences of any proposed investments. MCC will require Contractor support to provide technical advisory services to carry out due diligence and project development as part of the compact development process. In addition, MCC will require TAS services in support of Compact implementation. Work will be assigned to the Contractor based on Technical Directives to the selected firm that bring the relative best value to MCC.

The Togo Country Team at MCC requires a Contractor to provide technical advisory services during due diligence, the development and preparation of a MCC Compact in Togo, as well as provide oversight support to MCC during the pre-Entry-Into-Force period for the proposed investments in institutional projects. Many of the Contractor’s efforts will incorporate and expand on prior analysis by MCC as well as by the GoM and stakeholders, and the Contractor should refer to such previous analysis where available.

The Contractor shall provide technical advisory services that will include analysis, guidance, and recommendations on the overall merit of proposed projects and their policy, institutional, regulatory, and technical context, or potential alternative projects to inform MCC’s investment decisions and to recommend actions to address gaps, inadequacies, and risks in terms of cost, quality, performance, and successful implementation during the anticipated Compact period.

Projects will be assessed and developed with explicit considerations of Private Sector Participation, MCC’s Gender and Inclusion Policy, and with a climate lens, identifying opportunities to enhance https://www.mcc.gov/resources/doc/requirements-milestones-social-inclusion-gender mitigation, adaptation and resilience. The Contractor shall also support MCC in reviewing sector policies and other critical elements to identify necessary and sufficient components to achieve inclusive growth and poverty reduction by addressing the constraint to growth.

MCC is seeking a firm to support MCC staff during the entirety of the Compact Development effort and that has a demonstrated ability to evolve its resources along a development and start up cycle. At no time will the consultant be expected to fulfill any inherently governmental function; those responsibilities will remain the responsibility of MCC staff. The objectives are to develop a Compact within 24 months (roughly from Board selection to Board approval which is estimated to be December 2024) that address MCC’s key investment criteria:

• Reflects country-led initiatives,

• Addresses a constraint to inclusive economic growth and poverty reduction,

• Has an economic rate of return of at least 10 percent,

• Meets MCC’s Environmental and Social Performance Guidelines,

• Furthers the MCC Climate Strategy, Blended Finance, and other initiatives as appropriate,

• Meets MCC’s Gender and Social Inclusion Guidelines,

• Is sustainable, and

• Is implementable within MCC’s statutory limit of 5-years.

This is a partnership, and the firm is to provide strategic guidance as well as work under comprehensive Technical Directives indicating scope and deliverables associated with the General Tasks described in this section.

General Tasks

• Participate and contribute to project management efforts within Compact development, including supporting MCC and the joint MCC and Partner Country team in Project Management:

including traditional waterfall, Agile, and hybrid approaches using tools like sprint planning, long-term objective tracking, internal stakeholder and “scrum” meetings, etc. MCC is using 2-week sprints (roughly 6-7 per quarter) to identify tasks, prioritize, monitor progress, and ensure that we are continually adding value to our analysis.

• Propose, track, and periodically update a draw down plan for contractor efforts to ensure that effort stays within the available budget.

• Support travel, missions and reverse missions, consultant staff, preparing agendas, background materials, discussion items.

• Develop and maintain a list of risks that might delay or compromise the development process and timely achievement of Board approval of the Compact, successful Compact implementation, and/or effective close-out of the Compact; and similar opportunities to achieve stronger results.

Incorporate recommended mitigation strategies and track the implementation of such mitigation activities.

• Periodic reviews of lessons learned and proposed adjustments regarding Compact objectives and MCC processes, including preparation and follow up on After Action Reviews on a periodic basis and at the end of the Compact Development Phase.

Compact Development

Constraint and Root Cause Analysis, Program Logic, Economic Rates of Return and Evaluation Strategy During initial stages of Compact development, the contractor will provide technical support to MCC and the partner country, including:

• The development of a constraints analysis and subsequent root cause analysis using the best-suited analytical tools. In particular, knowledge of and experience with systems analysis and translation of presented symptoms into problem archetypes or syndromes are required.

• Assessments of:

o firm-level (microeconomic) constraints to economic growth.

o key climate change and natural capital issues.

o gender and poverty distribution constraints to broad based and inclusive economic growth.

• Progressive development of economic models to allow for iterative estimates of returns to help guide the design of cost effective and impactful programs. These economic models will lead to an Economic Rate of Return (ERR) being calculated for each project comprising the Compact.

• A strategy that proposes ways to measure medium- and long-term impacts over time through the evaluation design and outlines the M&E requirements that the recipient government and Implementing Entities must meet to receive project disbursements. This strategy should also identify indicators for project monitoring, assist in establishing corresponding baselines, and suggest end-of-compact targets.

• Serving as a guide for program implementation and management, so that MCC, the MCA management unit, Board members, program implementers, beneficiaries, and other stakeholders understand the objectives and targets they are responsible for achieving, and are aware of their progress towards those objectives and targets during implementation; and establishes a process to alert implementers, stakeholders and MCC to any problems in program implementation and provides the basis for making any needed program adjustments.

Project Definition For each project proposed by the partner country to be part of the Compact, the contractor will assess the proposal and ensure that the project meets the characteristics described by MCC’s Project Development Guidelines, which indicate that each Project Proposal should:

• Refine and sharpen the specific core problem that the proposed project will address and the specific project objective it will achieve;

• Describe the combination of specific components that comprise a proposed project (including any physical construction or rehabilitation of “hard” assets along with “soft” investments in policy, legal and regulatory reforms, institutional capacity building, technical assistance, environmentally-sound design and social and behavior change), explain the current status of preparation of each component, and estimate the total cost of each;

• Present a detailed project logic that clarifies how the components will work together to address root causes of the core problem and links each proposed component to projected outputs, https://www.mcc.gov/our-impact/constraints-analysis https://www.mcc.gov/resources/story/story-cdg-chapter-6-guidelines-for-root-cause-analysis https://www.mcc.gov/resources/story/story-cdg-chapter-8-guidelines-for-developing-project-proposals https://www.mcc.gov/resources/story/story-cdg-chapter-8-guidelines-for-developing-project-proposals those outputs to anticipated intermediate outcomes, and those intermediate outcomes to the primary objective and the long-term goals of increased income, economic growth, and poverty reduction;

• Identify the expected beneficiaries of the proposed project, including opportunities for women and disadvantaged populations, specify the economic benefit streams that the proposed project is expected to deliver, and where possible estimate the total magnitude of expected benefits;

• Catalogue critical technical, economic, environmental, climate, resettlement, social and gender issues and risks that must be understood and mitigated before the proposed project can be considered for a final investment decision;

• Assess the likely sustainability of the proposed project and define any particular measures that may be necessary to strengthen the proposed project’s viability or to enhance, expand or extend its expected economic benefits; and

• Propose specific implementing entities that will lead, manage, or oversee the implementation of the proposed project.

• Identify and assess opportunities to “crowd in” private sector investment including blended finance opportunities, PPPs and other partnered approaches and expanding access to finance for key private sector stakeholders.

The contractor will also:

• Review, assess, and update:

o country- and sector-level assessments o Root Cause Analysis o problem archetypes and country-specific adaptations o cost-benefit models and baseline data sources, distributional impacts o key project risks, mitigation strategies, and residual risk o key policy institutional and policy barriers; and propose technical assistance packages o project impacts across IFC Performance Standards and counter trafficking in persons o Climate change risks and opportunities (e.g., mitigation, adaptation, resilience).

o Conditions Precedent o sustainability.

• Develop an evaluation framework, including key indicators, establish baselines, and assess local capacity to collect critical data for such evaluations. Explain in detail how the MCC and the MCA will monitor each project to determine whether intended results are achieved. Assess the capacity of stakeholders to collect evaluation relevant data over time and recommend strategies to close gaps.

Stakeholder Assessment

• Conduct Political Economy Analysis to identify key formal and informal stakeholders, their relationships and power dynamics.

• Propose and prepare a stakeholder engagement plan for Compact development efforts.

Implementation Planning

• Develop a Compact implementation strategy including identification of key partners, Responsibility-Accountability-Consult-Inform (RACI) matrix, staffing requirements, position descriptions, implementing entity agreements, process engineering for high frequency/high effort tasks.

• Review, assess, and validate:

o Risk management plans o Communication strategies o Work plans o Key programmatic building blocks, including the costs, scheduling, and scope of each.

o Stakeholder engagement plans, including identifying key implementation stakeholders and assessing their implementation readiness.

• Define or review the proposed MCA organization and develop position descriptions.

• Assess the need for a project management firm or other mechanism to support implementation.

• Support the development and quality control of key Compact Terms Of Reference to facilitate effective procurement.

Deliverables:

The key output of The Compact Development phase is a Design Document that reflects MCC partner’s vision and buy-in, and which is due diligence by MCC and this consultancy. Roughly the content of that assessment will be addressed in a document with roughly the following organization:

• Executive Summary,

• Country Context and Overview,

• Constraints and Root Cause Analysis,

• Project Descriptions,

• Environmental and Social Performance issues using the IFC Performance Standards,

• Gender and Social Inclusion and Safeguards,

• Monitoring and Evaluation including indicators, baselines, and targets,

• Economic and Beneficiary Analysis – including a Cost Benefit Analysis at the project level, and where feasible for sub-components, including a distributional assessment,

• Implementation Strategy,

• Risk Management Strategy, and

• Annexes that include work plans, multi-year budgets, references used, and drafts of key Terms of Reference to be used during implementation.

Additional deliverables may include formal, semi-formal, or informal correspondence, presentations, and discussions as required to assure MCC that the proposed investment meets our investment criteria.

Compact Mobilization Prior to Entry-Into-Force (pre-EIF)

This phase typically begins after MCC’s Board approves a Compact and continues until Entry-Into-Force (EIF) of the Compact. The pre-EIF period is a preparatory period during which resources are mobilized, staff hired, conditions precedent to EIF are addressed, and other similar work is undertaken. Historically this phase takes approximately 24 months, but MCC intends to accelerate this process – without compromising implementation or development impact.

During this phase the consultant may be expected to:

• Continue any follow-on work coming out of the program development process

• Advise on gender and social inclusion strategy implementation, stakeholder communication planning, Social and Gender Integration Plan (SGIP) development and implementation, Counter- Trafficking in Persons (C-TIP) plan, and environmental issues

• Support the development of the Compact-wide Environmental and Social Management System

• Review all bidding documents to ensure they include all necessary information/requirements for design, safety, construction, environmental, social (including caste and ethnicity), gender, resettlement, climate, and health and safety issues.

• Advise on procurement strategy, including appropriate forms of contract, packaging, firm qualifications for all technical assistance, project management, construction supervision, and construction contracts

• Support MCC issuance of ‘no objection’ letters

• Assist in the review of evidence of satisfaction of Conditions Precedent

• Assist with pre-Bid meetings

• Assist in MCA led hiring and procurements by observing on panels

• Assist with the on-boarding and orientation of MCA Staff

Compact Mobilization Prior to Entry-Into-Force (pre-EIF)