Jean R. AbiNader, MATIC
February 5, 2016

Jean R. AbiNader, Exec. Dir., Moroccan American Trade and Investment Center

There is good news coming from Washington and Rabat as the second Millennium Challenge Corporation (MCC) compact with Morocco – valued in excess of $517 million ($450 US, $67.5 Morocco) — is taking off. The partnership between Morocco and the US that makes the MCC compact feasible is the result of years of collaboration across a range of projects funded by various US agencies. The mutual respect and trust engendered serves both as a model for other programs and a legacy of a friendship of shared values and interests in human, economic, and social development. The link to the compact site is http://compact2.cg.gov.ma , and the actual compact document is at https://assets.mcc.gov/documents/compact-morocco-employability-and-land.pdf

The process began in November with a “technical” signing that enables the release of funds for initial activities.  The MCC press release notes that “Signature of the compact allows MCC and the GoM to begin the work necessary to ensure a successful and timely implementation of the program such as hiring staff and beginning key studies.  A larger, public ceremony to celebrate the commencement of compact activities is planned for spring 2016.”

With this “technical” signing, some $21.4 will million to be spent in the coming months to set up: financial management and procurement activities; basic administrative functions, including staffing, offices, equipment, and other items; finalizing monitoring and evaluation activities; hiring consultants for preparatory studies and activities; and other steps needed while awaiting final approval by the Chamber of Deputies.

In Morocco, the GoM will set up its MCC counterpart (in the office of the Head of Government); to establish its accounting and budgeting process; ensure that it “will not reduce the normal and expected resources that it would otherwise receive or budget from sources other than MCC for the activities contemplated under this Compact and the Program”; and continue to contribute its committed funding to existing programs that will be part of the compact.

How the Process Works

Once Morocco was approved as a candidate for a second MCC grant, extensive consultations with stakeholders and a study by the African Development Bank identified weaknesses in workforce development and land management as obstacles to greater economic momentum. This resulted in a two-phase compact focusing on “Education and Training for Employability,” assigned $220 million; and $170.5 million allocated to “Land Productivity,” which concentrates on more effective management and investment practices for agricultural and industrial land. The rest of the grant is for monitoring and evaluation, program administration, in addition to contributions from the GoM.

Signing for the Moroccan side was the Head of Government, Abdelilah Benkirane, while Jonathan Bloom, Deputy Vice President, Africa, represented the MCC. It was attended by representatives of the seven Ministries, who, along with a private sector representative and two from civil society, will make up the Moroccan board of directors for the compact.

Once program areas are identified, “terms of reference” are developed to describe the goals of each program in sufficient detail that companies and organizations can submit comments – through “call for ideas” conferences –and eventually bid on services. The initial “call for ideas” conference results in public RFPs (Request for Proposal) in which competitive bids and project descriptions are submitted.

This process often results in new initiatives that had not been considered initially. One example is the Technical Vocational Education and Training (TVET) program to focus on support for new and existing public-private training centers, with companies taking the lead in the training and placement of trainees. The goal is to deeply involve the private sector in curriculum development, standards for qualifications, and eventual employment.

Land development is a much trickier proposition, as titling and management issues “inhibit access to and productive uses of rural and industrial land, thus diminishing investment and the consequent demand for labor.” “In rural areas, the project develops a faster, fairer, replicable process for moving the country’s collective irrigated land into the hands of smallholder farmers. In the industrial sector, the project develops a new model for industrial zone development” enabling the government to streamline how it brings industrial land to investors.

Overall estimated beneficiaries of the program are: more than 1.7 million graduates from improved and skills-centered secondary schools; 275,000 from the workforce development efforts; more than 80,000 farmers benefiting from improved rural land management; and some 96,000 benefiting from upgraded industrial land policies.

In addition, the MCC compact emphasizes sustainability across all sectors. Secondary Education “will pilot an Integrated School Improvement Model that will demonstrate how to achieve cost-effective, quality education, and a plan will be developed during the Compact for expansion of this model post-Compact. The Private Sector-Driven TVET grant facility is intended and designed to continue functioning after the Compact. GoM co-financing during the Compact will continue afterwards and enable the grant facility to continue.” Throughout the program, GoM and MCC “will collaborate to ensure that interventions aimed at mainstreaming social and gender inclusion will include mechanisms that promote sustainability beyond the Compact Term.”

There are many additional details available on the website, and more will emerge as future “call for ideas” conferences are announced. At this point, MCC is pleased with the enthusiasm and responses to the initial conferences from both Moroccan and US entities. Hopefully, the Chamber of Deputies will approve the overall compact in time for a formal signing in conjunction with the US-Morocco Strategic Dialogue in Rabat in April.