ࡱ>  bjbj  -xxNN,,,,,D,,,U-).d,Rz/{0:0001fO2$s2yyyyyyy$<~ހy,21122y,,004 z7878782,0,0y782y7878En s0`v,3Qp>y"z0RzpVvG5vtss8v,t227822222yy7222Rz2222v222222222N W+: Contract No: MCAT/COM/E9-183/xxx Lump-Sum Individual Consultant Contract For the Provision of Consultancy Services FOR THE ESTABLISHMENT OF THE ZANZIBAR UTILITY REGULATORY AUTHORITY (ZURA) between MILLENNIUM CHALLENGE ACCOUNT - TANZANIA Of THE UNITED REPUBLIC OF TANZANIA and .. Dated: February, 2013 TABLE OF CONTENTS HYPERLINK \l "_Toc198097393"General Provisions 1 HYPERLINK \l "_Toc198097454"Annexes 7 HYPERLINK \l "_Toc198097456"Annex A - Terms of Reference 8 HYPERLINK \l "_Toc198097456"Annex B - Consultants Rates 20 HYPERLINK \l "_Toc198097456"Annex C - Additional Provisions 21 HYPERLINK \l "_Toc198097456"Annex D Consultants CVs 27 LUMP-SUM CONTRACT FOR INDIVIDUAL CONSULTANT MCA-T/COM/E9-143-1175 THIS CONTRACT (Contract) is entered into this . day of .., 2013, by and between the Millennium Challenge Account-Tanzania (the Client) having its principal place of business at the Development House, Kivukoni Front/Ohio Street, Dar es Salaam, Tanzania and .. (the Consultant) having his/her principal address located at .., on the other part. WHEREAS, the Client wishes to have the Consultant perform the services hereinafter referred to, and WHEREAS, the Consultant is willing to perform these services as agreed hereunder, NOW THEREFORE THE PARTIES hereby agree as follows: 1. ServicesThe Consultant shall perform the services specified in Annex A, Terms of Reference and Scope of Services, which is made an integral part of this Contract (the Services). 2. TermThe Consultant shall perform the Services during the period commencing 2013 (hereinafter referred to as effective date) and continuing through 2013 or any other period as may be subsequently agreed by the parties in writing. This Contract may be renewed, extended, modified, amended and or altered as may be agreed by the parties in writing. Either party may, with thirty days notice, issue in writing to the other party stating his/her intention to amend, renew, extend, modify and or alter any provision of this contract. Such renewal, amendment, extension or alteration shall become effective upon written acceptance by the other party. 3. LocationThe Consultant shall deliver the services specified in Annex A at Dar es Salaam, Tanzania or as otherwise agreed in writing with the Client. 4. PaymentA. Ceiling For Services rendered pursuant to Annex A, the Client shall pay the Consultant an amount not to exceed United States Dollars (US$ ..) (the Contract Price) on the basis of a maximum of period of six (6) calendar months. This amount has been established based on understanding that it includes all of the Consultant's costs and profits as well as any tax obligation that may be imposed on the Consultant. In the event that any additional services or time shall be required by the Client, this will be charged at the rates in Appendix B. B. Schedule of Payments Payments for the deliverables shall be made according to the following schedule of percentages of the Contract Price. Table 1: Schedule of Payments Item # Description Deliverable date % Payment 1 Inception report 14 days after commencement 10% 2 Approval of Task 1 Reports [60 days after commencement] 10% 4 Approval of Draft final report covering Tasks 1 and 2 including the following; Approved draft proposed Initial Budget Proposed 3 year strategic business and communications plans with relevant structure for implementation of plan for ZURA. [150] days after commencement 30% 5 Approved Final Report including the following Revised Budget Revised final 3 year strategic business and communications plans with relevant structure for implementation of plan for ZURA [180] days after commencement 30% C. Payment Conditions Invoice Delivery The original tax-exempt invoice, all copies and all related correspondence and documents shall be delivered to the Document Intake Coordinator at the MCA-Tanzania offices. The invoice will be deemed received with the placement of an indelible date stamp and the Document Intake Coordinator initializing the face of the original invoice, subject to the invoice being approved by the MCA-Tanzania. Payment Terms MCA-Tanzania will make its best efforts to provide payment within 30 days after receipt of the invoice subject to presentation of the applicable report and invoice each being approved by MCA-Tanzania. No other terms or conditions shall be implied, or noted on the face or back of the invoice or copies. Rejection of Invoice An invoice may be rejected outright i.e. not marked as received, or may be rejected through the invoice approval process i.e. marked as received then found to be deficient. If an invoice is rejected by MCA-Tanzania, the Consultant will be informed as soon as practicable. The advice of rejection will contain the reason(s) for the rejection and, where possible, how to cure the deficiency. Once the invoice has been corrected and resubmitted and approved by MCA-Tanzania, the 30 day processing period will start anew. Payment Accounts The accounts to which payments are to be made are: Bank Name: Account Name: Account Number: Swift Code: US Correspondent Bank: Swift Code: 5. Project AdministrationA. Coordinator. The Consultant shall be supervised by MCA-T Director of Monitoring and Evaluation (the Coordinator). The Coordinator shall be responsible for the supervision of activities under this Contract including acceptance and approval of the reports and of other deliverables and for receiving and approving invoices for payment. B. Records and Accounts The Consultant shall keep accurate and systematic records and accounts in respect of the Services, which will clearly identify all charges and expenses. The Client reserves the right to audit, or to nominate a reputable accounting firm to audit, the Consultants records relating to amounts claimed under this Contract during its term and any extension, and for a period of three months thereafter. 6. Assistance and ExemptionsThe Client shall use its best efforts to ensure that the Government of Tanzania shall: (a) Arrange for the Consultant to be provided promptly with the necessary entry visa (if applicable). (b) Provide the Consultant with work permits and such other documents as shall be necessary to enable the Consultant to perform the Services and to stay in Tanzania for the duration of the Contract (if applicable). (c) Facilitate prompt clearance through customs of any property required for the Services and of the personal effects of the Consultant. (if applicable) (d) Grant to the Consultant the privilege, pursuant to the Applicable Law, of bringing into Tanzania reasonable amounts of foreign currency for the purposes of the Services or for the personal use of the Consultant and of withdrawing any such amounts as may be earned therein by the Consultant in the execution of the Services. (if applicable) The Client shall provide the facilities and services defined in the Terms of Reference at Annex A. 7. Performance StandardsThe Consultant undertakes to perform the Services with the highest standards of professional and ethical competence and integrity. 8. ConfidentialityThe Consultant shall not, during the term of this Contract and within two years after its expiration, disclose any proprietary or confidential information relating to the Services, this Contract or the Client's business or operations without the prior written consent of the Client. 9. Ownership of MaterialAny studies reports or other material, graphic, software or otherwise, prepared by the Consultant for the Client under the Contract shall belong to and remain the property of the Client. These documents, reports etc shall not be disclosed by the Consultant to anyone other than the Client without the prior written consent of the Client. 10. Consultant Not to be Engaged in Certain ActivitiesThe Consultant agrees that, during the term of this Contract and after its termination, the Consultant and any entity affiliated with the Consultant, shall be disqualified from providing goods, works or services (other than the Services and any continuation thereof) for any project resulting from or closely related to the Services. 11. LimitationsExcept in the case of gross negligence or willful misconduct on the part of the Consultant or in carrying out the Services, the Consultant, with respect to damage caused by the Consultant to the Clients property, shall not be liable to the Client: (i) for any indirect or consequential loss or damage; and (ii) for any direct loss or damage that exceeds the total value of the Contract.12. EligibilityThe Consultant and any sub-contractors must comply with the eligibility requirements of the Millennium Challenge Corporation throughout the duration of the Contract. If at any time the Consultant becomes ineligible, the contract may be terminated. 13. InsuranceThe Consultant will be responsible for taking out any appropriate insurance coverage as may be agreed with the Client. 14. AssignmentThe Consultant shall not assign this Contract or sub-contract any portion of it without the Client's prior written consent. 15. Law Governing Contract and Language The Contract shall be governed by the laws of the United Republic of Tanzania, and the language of the Contract shall be English. 16. TerminationEither party may terminate the contract by giving thirty (30) days written notice of termination. Upon termination of this Contract by notice of either Party, pursuant to Clause 2 of the Contract: a)the Consultant shall, immediately upon dispatch or receipt of such notice, take all necessary steps to bring the Services to a close in a prompt and orderly manner. With respect to documents prepared by the Consultant and equipment and materials furnished by the Client, the Consultant shall hand these over to the Client. b)the Client shall make payment to the Consultant for Services satisfactorily performed prior to the effective date of termination.17. Additional ProvisionsThe provisions of Annex C, Additional Provisions, with the exception of clause I Insurance shall apply to this contract. 18. Dispute ResolutionAny dispute, controversy or claim arising out of or relating to this Contract or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the Arbitration Rules as at present in force in the United Republic of Tanzania. The place for arbitration shall be Dar es Salaam, Tanzania.  For and on behalf MCA-Tanzania:For the Consultant: Signature  Signature Name: Title: Witness Name: Title: Signature:Name: Title: Witness Name: Title: Signature:  List of Annexes Annex A: Terms of Reference Annex B: Consultants Rates Annex C: Additional Provisions Annex D: Consultants CVs ANNEX A: TERMS OF REFERENCE AND SCOPE OF SERVICES INDIVIDUAL CONSULTANCY SERVICES FOR THE PERFORMANCE EVALUATION OF THE ESTABLISHMENT OF THE ZANZIBAR UTILITY REGULATORY AUTHORITY (ZURA) BACKGROUND 1.1 Introduction Zanzibar is situated south of the equator, on the coast of East Africa and is part of the United Republic of Tanzania. It consists of two main islands, Pemba and Unguja with a total population of 1,303,568 inhabitants (Tanzania National Census 2012) which is growing at 2.8 percent per annum. GDP growth rate is 6.8 based on Zanzibar Economic Survey 2011. About 44.4% of the total population are categorized as poor (House hold Budget Survey 2009/2010). In general, women together with children are the most disadvantaged members of the society. The Ministry of Lands, Housing, Water and Energy through the Department of Energy and Minerals and in collaboration with the Zanzibar Electricity Corporation (ZECO) and the Zanzibar Water Authority (ZAWA) prepared a draft Bill designed to regulate the energy and water sectors. This proposed Bill would establish a new legal entity, the Zanzibar Utilities Regulatory Authority (ZURA), to regulate water and electricity utility services in the interest of customers and providers of utility services in Zanzibar.The expected Bill will be submitted to Parliament for an initial reading in January 2013. As envisioned in the draft Bill, ZURA will ensure consumer protection and enhance Zanzibari social welfare by promoting effective competition, ensuring availability of utility services, and preserving the environment for the sectors directly responsible for electricity, water and sewage. 1.2 Background The increasing costs for running energy and water utilities and the demand for efficient reliable and standard services has necessitated in the formation of independent regulatory agencies in many countries. In East Africa almost all member states have regulatory authorities in their respective countries including Tanzania Mainland. It is from the above reasons and many other challenges that have triggered the Revolutionary Government of Zanzibar to come up with the need of forming a regulatory authority. The Millennium Challenge Account Tanzania (MCA-T) is implementing a five year Compact covering three sectors, namely energy, transport and water projects. The overall goal of the Compact is to stimulate economic growth; increase household incomes and raise the quality of life in area affected by the compact through targeted infrastructure investments and reduced poverty in the country. One of these activities is designed to increase the supply of reliable and high-quality electricity service on Unguja, Zanzibars largest island. A key component of this activity is the installation of a new submarine cable that will connect Zanzibars Unguja Island to mainland Tanzania (the cable activity). This new 100-Megawatt (MW) cable will supplement, and eventually replace, an older 45-MW cable, which is reaching its limits in terms of both capacity and lifespan. It is anticipated that, by improving the reliability and quality of electricity supply on Unguja Island, the cable activity will have a range of economic benefits that will contribute to economic growth and poverty reduction in Zanzibar. MCA-T, the legal entity responsible for Compact implementation, has agreed to support the Ministry of Lands, Housing, Water and Energy (MLHWE) in financing the procurement of an individual Consultant who will advise the MLHWE in the formation of the Zanzibar Utility Regulatory Authority (ZURA). OBJECTIVES AND PURPOSE 2.1 Overall objectives The overall objective of the assignment is to provide advisory services to MLHWE on the formation and operationalization of an independent fully functional Energy and Water Utilities Regulatory Authority in Zanzibar. 2.2 Purpose The purpose of the assignment is to facilitate the formation of a ZURA team capable of: Protecting the interests of consumers with respect to prices and quality of service provided by licensees Promoting and maintaining integrity and sustainability of regulated entities in service provision, ability to finance activities and promoting economic efficiency, and establishing a transparent licensing regime. Regulating in a fair and transparent manner. SCOPE OF WORK 3.1 General The implementation of this assignment will be performed in Zanzibar, and the main ZURA office will be located in Unguja. The Consultant is expected to execute the major part of the contracted time together with the MLHWE. It may be that enactment of the Law has not occurred at the time consulting services are scheduled to begin under this contract. Work will proceed regardless of whether the final law has been enacted or not. Each of the tasks under the Scope of Work is vital to the eventual enactment of an independent, fully functional regulatory authority. Where there is question about what direction the Law may take, consultation with the Ministry and application of best practices for a small regulatory authority should guide the answers. 3.2 Scope of Services; Under this assignment, the consultant shall be required to carry out the following tasks: Task 1-March 1, 2013 April 30, 2013 Provide advisory support to MLHWE and other relevant stakeholders regarding the development of ZURAs office; Propose the organization and operational structure of ZURA. Provide advice on the level of staffing and competencies required for management and proper functioning of ZURA. Provide advice on working procedures of the Authority on the basis of the passed or pending legislation and from international best practice. Propose responsibilities and formalize job descriptions for a Chief Executive Officer and support staff. Collaborate with MLHWE to initiate recruitment of staff positions. Prepare or update initial operating budget for at least three years. Provide advice to MLHWE on the required tools and measures that foster confidence in understanding of the regulatory processes and decisions by all stakeholders, awareness raising programs and modality for sustainable and higher services level to serve the consumer and public at large. Utilize international best practices for a small regulatory authority to guide in the development of the instruments described above even if the Law has not been enacted at the time consultant services are underway per these terms of reference. Task 2-May 1, 2013 to August 15, 2013 After consultation with MLHWE and MCA-T the Consultant shall, Prepare a 3 year strategic business and communications plan Develop a training plan for staff Develop a temporary licence structure and conditions Conduct stakeholder review of draft plans and budgets (120 days after commencement) 3.3 Project Management The Consultant shall: Report directly to MCA-T Director for Energy Projects, on all contractual issues and for delivery and approval of all contractual deliverables. Coordinate assignments with MCA-T and MLHWE. The consultant may request any meeting with MCA-T for coordination purposes whenever deemed necessary for smooth undertaking of the assignment Work closely with designated representatives or counterparties identified from MLHWE. Encourage the establishment of a working group of interested and qualified personnel within the Government of Zanzibar to support establishment and rapid mobilization of ZURA. CONSULTANT QUALIFICATIONS The individual Consultant should have the necessary expertise and experience in carrying out assignments of a similar nature, as outlined in this Terms of Reference, either as a regulator or as an advisor to a new regulatory authority. The individual Consultant shall have a minimum of a masters degree in relevant field from an internationally recognized University or the equivalent of 10 years relevant experience. Additional knowledge in Public/Business Administration or law is preferred. The Consultant selected for the assignment shall be an individual with experience of not less than five (5) years in regulatory issues. In addition, the individual must have carried out at least two (2) similar assignments in advising, managing or consulting for the establishment or implementation of similar utility Regulatory bodies in energy and water sectors. The individual consultant is required to have (i) experience in East Africa, international exposures on energy and water regulation frameworks, policies and set up; (ii) knowledge of energy and water sector assessments, reviews, performance indicators and monitoring; (iii) knowledge of Tanzania national policies/strategies involving sector regulation; and (iv) proficiency in English and strong communication skills. DURATION, DELIVERABLES AND PAYMENT SCHEDULE 5.1 Duration; The estimated duration for the assignment is six (6) months, from the date of signing the contract but will not extend beyond August 15, 2013. The individual consultant shall submit an implementation time schedule for the assignment consistent with the proposed duration and deliverables herein. 5.2 Reporting Requirements The individual Consultant shall prepare and submit all reports in (editable) electronic files using MS Office, by electronic mail and on Compact Disk (CD) and in four (4) hardcopies of the same. The individual consultant should include all supporting data and documentation as necessary pertaining to the submitted reports. 5.3Deliverables and timeframe for submission The individual Consultant shall prepare and submit reports as detailed in the deliverables section; three sets to direct to MCA-T Director for Energy Projects for distribution to key stakeholders in the format and quantity as described under 5.2 above and on time as described under section 5.3; deliverables and timeframe for submission: Inception report 14 days after the commencement of the assignment detailing how he/she intends to undertake the assignment under the provided scope. Interim Report (in hard and editable soft copies in CD) for Task 1 Interim Report and Presentation (in hard and editable soft copies in CD) for Task 2 for review by stakeholders including proposed initial budget, strategic business and communications plans, and implementation plan for ZURA(120 days after commencement) Draft final report (in hard and editable soft copies in CD) taking into account comments raised by the key stakeholders at the submission of interim reports (150 days after commencement) Revised Final Report to be presented to the stakeholders (180 days after commencement). 5.4 Payment Schedule S/No.DescriptionDeliverable Dates % payment1Inception report 14 days after commencement10%2Approval of Task 1 Reports [60 days after commencement]10%4Approval of Draft final report covering Tasks 1 and 2 including the following; Approved draft proposed Initial Budget Proposed 3 year strategic business and communications plans with relevant structure for implementation of plan for ZURA.[150] days after commencement 30%5Approved Final Report including the following Revised Budget Revised final 3 year strategic business and communications plans with relevant structure for implementation of plan for ZURA[180] days after commencement30% SUGGESTIONS TO ENHANCE TERMS OF REFERENCE The selected consultant may offer suggestions to enhance these Terms of Reference (TOR) which results in better implementation of the assignment. Such proposals, if accepted, shall form part of this TOR. ANNEX B CONSULTANTS RATES Remuneration and appropriate Direct Cost(s) to be used in the event that the duration of the Contract is extended by MCA-T ANNEX C ADDITIONAL PROVISIONS Capitalized terms that are used but not defined in this Appendix shall have the meaning given to them in the Contract or in the Compact or related agreements. MCA-Tanzania is responsible for the oversight and management of the implementation of the Compact on behalf of the Government, and intends to apply a portion of the proceeds of the Compact to eligible payments under this Contract, provided that (a) such payments will only be made at the request of and on behalf of MCA-Tanzania and as authorized by the Fiscal Agent, (b) MCC shall have no obligations to the Consultant under the Compact or this Contract, (c) such payments will be subject, in all respects, to the terms and conditions of the Compact, and (d) no party other than the Government and MCA-Tanzania shall derive any rights from the Compact or have any claim to MCC Funding. A. MCC Status; Reserved Rights; Third-Party Beneficiary 1. MCC Status. MCC is a United States Government corporation acting on behalf of the United States Government in the implementation of the Compact. As such, MCC has no liability under this Contract, and is immune from any action or proceeding arising under or relating to this Contract. In matters arising under or relating to this Contract, MCC is not subject to the jurisdiction of the courts or any other juridical or other body of any jurisdiction. 2. MCC Reserved Rights. (a) Certain rights are expressly reserved to MCC under this Contract, the Compact and other related Compact documents, including the right to approve the terms and conditions of this Contract, as well as any amendments or modifications hereto, and the right to suspend or terminate this Contract. (b) MCC, in reserving such rights under this Contract, the Compact or other related Compact documents, has acted solely as a funding entity to assure the proper use of United States Government funds, and any decision by MCC to exercise or refrain from exercising these rights shall be made as a funding entity in the course of funding the activity and shall not be construed as making MCC a party to this Contract. (c) MCC may, from time to time, exercise its rights, or discuss matters related to this Contract with the Parties or the Government, as appropriate, jointly or separately, without thereby incurring any responsibility or liability to any party. (d) Any approval (or failure to approve) or exercise of (or failure to exercise) any rights by MCC shall not bar the Government, MCA-Tanzania, MCC or any other person or entity from asserting any right against the Consultant, or relieve the Consultant of any liability which the Consultant might otherwise have to the Government, MCA-Tanzania, MCC, or any other person or entity. For the purposes of this clause (d), MCC shall be deemed to include any MCC officer, director, employee, affiliate, contractor, agent or representative. 3. Third-Party Beneficiary. MCC shall be deemed to be a third party beneficiary under this Contract. B. Limitations on the Use or Treatment of MCC Funding. The use and treatment of MCC Funding in connection with this Contract does not, and shall not, violate any limitations or requirements specified in the Compact or any other relevant agreement or Implementation Letter or applicable law or U.S. Government policy. A summary of the applicable provisions referenced in this paragraph may be found on the MCC website at  HYPERLINK "http://www.mcc.gov/guidance/compact/funding_limitations.pdf" www.mcc.gov/guidance/compact/funding_limitations.pdf C. Procurement. The Consultant shall ensure that all procurements of goods, services or works under, related to or in furtherance of this Contract shall be consistent with the general principles set forth in the Compact and in the MCC Program Procurement Guidelines from time to time in effect as posted on the MCC website at www.mcc.gov. The Consultant shall comply with the eligibility requirements related to prohibited source or restricted party provisions in accordance with U.S. law, regulations and policy, applicable World Bank policies or guidelines and in accordance with other eligibility requirements as may be specified by MCC or MCA-Tanzania. A summary of the applicable provisions referenced in this paragraph may be found on the MCC website at:  HYPERLINK "http://www.mcc.gov/guidance/compact/procurement_awards_provisions.pdf" www.mcc.gov/guidance/compact/procurement_awards_provisions.pdf D. Reports and Information; Access; Audits; Reviews. 1. Reports and Information. The Consultant shall maintain such books and records and provide such reports, documents, data or other information to MCA-Tanzania in the manner and to the extent required by the Compact or related documents and as may be reasonably requested by MCA-Tanzania from time to time in order to comply with its reporting requirements arising under the Compact or related documents. The provisions of the Compact that are applicable to the Government in this regard shall apply, mutatis mutandis, to the Consultant as if the Consultant were the Government under the Compact. A summary of the applicable provisions referenced in this paragraph may be found on the MCC website at  HYPERLINK "http://www.mcc.gov/guidance/compact/audits_reviews_provisions.pdf" www.mcc.gov/guidance/compact/audits_reviews_provisions.pdf 2. Access; Audits and Reviews. The Consultant shall permit such access, audits, reviews and evaluations as provided in the Compact or related documents. The provisions of the Compact that are applicable to the Government with respect to access and audits shall apply, mutatis mutandis, to the Consultant as if the Consultant were the Government under the Compact. A summary of the applicable provisions referenced in this paragraph may be found on the MCC website at  HYPERLINK "http://www.mcc.gov/guidance/compact/audits_reviews_provisions.pdf" www.mcc.gov/guidance/compact/audits_reviews_provisions.pdf 3. Application to Providers. The Consultant shall ensure the inclusion of the applicable audit, access and reporting requirements in its contracts or agreements with other providers in connection with the Contract. A summary of the applicable requirements may be found on the MCC website at  HYPERLINK "http://www.mcc.gov/guidance/compact/audits_reviews_provisions.pdf" www.mcc.gov/guidance/compact/audits_reviews_provisions.pdf E. Compliance with Anti-Corruption Legislation. The Consultant shall ensure that no payments have been or will be made by the Consultant to any official of the Government, MCA-Tanzania, or any third party (including any other government official) in connection with this Contract in violation of the United States Foreign Corrupt Practices Act of 1977, as amended (15 U.S.C. 78a et seq.) (the FCPA) or that would otherwise be in violation of the FCPA if the party making such payment were deemed to be a United States person or entity subject to the FCPA, or similar statute applicable to this Contract, including any local laws. The Consultant affirms that no payments have been or will be received by any official, employee, agent or representative of the Consultant in connection with this Contract in violation of the FCPA or that would otherwise be in violation of the FCPA if the party making such payment were deemed to be a United States person or entity subject to the FCPA, or similar statute applicable to this Contract, including any local laws. F. Compliance with Anti-Money Laundering Legislation. The Consultant shall ensure that MCC Funding disbursed pursuant to this Contract is not used for money-laundering activities and, to that end, shall comply with any policies and procedures for monitoring operations to ensure compliance, as may be established from time to time by the Consultant, MCC, MCA-Tanzania, the Fiscal Agent, the Procurement Agent, or the World Bank. G. Compliance with Terrorist Financing Statutes and Other Restrictions. 1. The Consultant shall not provide material support or resources directly or indirectly to, or knowingly permit MCC Funding to be transferred to, any individual, corporation or other entity that the Consultant knows, or has reason to know, commits, attempts to commit, advocates, facilitates, or participates in any terrorist activity, or has committed, attempted to commit, advocated, facilitated or participated in any terrorist activity, including, but not limited to, the individuals and entities (i) on the master list of Specially Designated Nationals and Blocked Persons maintained by the U.S. Department of Treasurys Office of Foreign Assets Control, which list is available at  HYPERLINK "http://www.treas.gov/offices/enforcement/ofac" www.treas.gov/offices/enforcement/ofac (ii) on the consolidated list of individuals and entities maintained by the 1267 Committee of the United Nations Security Council, or (iii) such other list as [MCA Entity] may request from time to time. For purposes of this provision, material support and resources includes currency, monetary instruments or other financial securities, financial services, lodging, training, expert advice or assistance, safe houses, false documentation or identification, communications equipment, facilities, weapons, lethal substances, explosives, personnel, transportation, and other physical assets, except medicine or religious materials. 2. The Consultant shall ensure that its activities under this Contract comply with all applicable U.S. laws, regulations and executive orders regarding money laundering, terrorist financing, U.S. sanctions laws, restrictive trade practices, boycotts, and all other economic sanctions promulgated from time to time by means of statute, executive order, regulation or as administered by the Office of Foreign Assets Control of the United States Treasury Department or any successor governmental authority, including, 18 U.S.C. Section 1956, 18 U.S.C. Section 1957, 18 U.S.C. Section 2339A, 18 U.S.C. Section 2339B, 18 U.S.C. Section 2339C, 18 U.S.C. Section 981, 18 U.S.C. Section 982, Executive Order 13224, 15 C.F.R. Part 760, and those economic sanctions programs enumerated at 31 C.F.R. Parts 500 through 598. The Consultant shall verify, or cause to be verified, appropriately any individual, corporation or other entity with access to or recipient of funds, which verification shall be conducted in accordance with the procedures set out in Part 10 of the MCC Program Procurement Guidelines (Eligibility Verification Procedures) that can be found on MCCs website at  HYPERLINK "http://www.mcc.gov" www.mcc.gov. The Consultant shall (A) conduct the monitoring referred to in this paragraph on at least a quarterly basis, or such other reasonable period as MCA-Tanzania or MCC may request from time to time and (B) deliver a report of such periodic monitoring to MCA-Tanzania with a copy to MCC. 3. Other restrictions on the Consultant shall apply with respect to drug trafficking, terrorism, sex trafficking, prostitution, fraud, felony, any misconduct injurious to MCC or MCA-Tanzania, any activity contrary to the national security interests of the United States or any other activity that materially and adversely affects the ability of the Government or any other party to effectively implement, or ensure the effective implementation of, the Program or any Project or to otherwise carry out its responsibilities or obligations under or in furtherance of the Compact or any related agreement or that materially and adversely affects the Program assets or any Permitted Account. H. Publicity, Information and Marking. The Consultant shall cooperate with MCA-Tanzania and the Government to provide the appropriate publicity to the goods, works and services provided under this Contract, including identifying Program activity sites and marking Program assets as goods, services, and works funded by the United States, acting through MCC; provided, that any announcement, press release or statement regarding MCC or the fact that MCC is funding the Program or any other publicity materials referencing MCC, shall be subject to prior approval by MCC and shall be consistent with any instructions provided by MCC from time to time in relevant Implementation Letters. Upon the termination or expiration of the Compact, MCC may request the removal of, and the Consultant shall, upon such request, remove, or cause the removal of, any such markings and any references to MCC in any publicity materials. MCC shall have the right to use any information or data provided in any report or document provided to MCC for the purpose of satisfying MCCs reporting requirements or in any other manner. I. Insurance. The Consultant shall obtain insurance, performance bonds, guarantees or other protections appropriate to cover against risks or liabilities associated with performance of the Contract. The Consultant shall be named as payee on any such insurance and the beneficiary of any such guarantee, including performance bonds. MCC and MCA-Tanzania shall be named as additional insureds on any such insurance or other guarantee, to the extent permissible under applicable laws. The Consultant shall ensure that any proceeds from claims paid under such insurance or any other form of guarantee shall be used to replace or repair any loss or to pursue the procurement of the covered goods, services, works; provided, that at MCCs election, such proceeds shall be deposited in an account as designated by MCA-Tanzania and acceptable to MCC or as otherwise directed by MCC. J. Conflict of Interest. The Consultant shall ensure that no person or entity shall participate in the selection, award, administration or oversight of a contract, grant or other benefit or transaction funded in whole or in part (directly or indirectly) by MCC Funding in connection with this Contract, in which (i) the entity, the person, members of the persons immediate family or household or his or her business partners, or organizations controlled by or substantially involving such person or entity, has or have a financial or other interest or (ii) the person or entity is negotiating or has any arrangement concerning prospective employment, unless such person or entity has first disclosed in writing to the parties under this Contract and MCC the conflict of interest and, following such disclosure, the parties to this Contract agree in writing to proceed notwithstanding such conflict. The Consultant shall ensure that no person or entity involved in the selection, award, administration, oversight or implementation of any contract, grant or other benefit or transaction funded in whole or in part (directly or indirectly) by MCC Funding in connection with this Contract shall solicit or accept from or offer to a third party or seek or be promised (directly or indirectly) for itself or for another person or entity any gift, gratuity, favor or benefit, other than items of de minimis value and otherwise consistent with such guidance as MCC may provide from time to time. K. Inconsistencies. In the event of any conflict between this Contract and the Compact and/or the Program Implementation Agreement, the term(s) of the Compact and/or the Program Implementation Agreement shall prevail. L. Other Provisions The Consultant shall abide by such other terms or conditions as may be specified by MCA-Tanzania or MCC in connection with this Contract. M. Flow-Through Provisions. In any subcontract or sub-award entered into by the Consultant, as permitted by this Contract, the Consultant shall ensure the inclusion of all the provisions contained in paragraphs (A) through (L) above. 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