| On 7 December 2006 MCC’s Investment Committee approved an Opportunity Memorandum submitted by the MCC transaction team, authorizing Due Diligence on a reduced form of Namibia’s proposal. The MCC-led Due Diligence (or program appraisal) commenced in February 2007. Since, MCA Namibia hosted numerous missions by MCC staff and consultants commissioned by MCC. Much ground was covered in assessing the program components – education, livestock production & marketing, tourism, indigenous natural products and rural access roads – from a technical point of view but also in terms of anticipated socio-economic and environmental impacts. The Due Diligence was concluded in June 2008 with the Investment Memorandum presented by MCC to the MCC Board of Directors, requesting for the go-ahead for the negotiations with Namibia. The MCA Namibia Compact is the result of these negotiations. The MCC Due Diligence was performed on the activities listed below. The activities that are marked in RED were removed from the original Namibian proposal to MCC or changed prior to Due Diligence. After submission of the proposed MCA Namibia Program, MCC indicated to the Government of Namibia that the guideline amount for Namibia would be around USD300 million and requested it to make some initial cuts and some early changes. The total amount of investments under Due Diligence is USD280 million as compared to USD426 million in the original proposal. |
| MCA Namibia Investment 1: Improved delivery and quality of education at secondary and tertiary Level Action 1.1 – Increase number of Namibians with mid-level professional skills. 1. Revolving MCA Bursary Trust for selected areas of study 2. Reduced: Construction and equipping of the Faculty of Engineering and Information Technology at UNAM Northern Campus Action 1.2 – Increase number of Namibians with technical and business management skills. 1. Construction and equipment of 3 new Vocational Training Centers (VTCs) and expansion of Valombola VTC 2. Re-equipment of 4 existing VTCs 3. Re-equipment of 5 existing Community Skills Development Centers (COSDECs) and construction of 5 new COSDECs 4. Expansion and re-equipment of the existing College of the Arts Department of Media Arts and Theatre Studies (COTA MATS) Action 1.3 – Increase general competency levels of students at secondary level through improvements to existing education infrastructure and increasing the number of educational institutions. 1. Construction, furnishing and equipment of 6 Comprehensive Secondary Schools 2. Expansion of 4 existing Colleges of Education (CoEs) and UNAM 3. Construction, furnishing and equipment of 3 Regional Study and Resource Centres 4. Provision of Computer Labs at 400 Schools with secondary Grades throughout Namibia 5. Provision of school textbooks in the subjects of Mathematics, the Sciences and English for Grade 5-12 6. Establishment of a Business Innovation Center at Polytechnic of Namibia Please click here (723kb pdf document) for the full text of the MCA Namibia Program Education component. For other relevant documentation and links, go to Docs and Links. MCA Namibia Investment 2: Increased production of large and small stock and mainstream the commercial marketing thereof in communal areas and on resettlement farms. Action 2.1 – Improve animal health and quality 1. Construction/Expansion of Veterinary Stations & tagging of animals Action 2.2 – Increase large and small stock production 1. Unlock Eiseb Block 2. Clearing of bush-encroached farmland through Bush-to-Energy (BTE) 3. Upscale Emerging Commercial Farmers Support Program (ECF-SP) Action 2.3 – Improve marketing infrastructure New: Moving of Veterinary Cordon Fence to Namibian-Angolan border (to replace 2.3.1 and 2.3.2) New: Improvement of animal health in the Caprivi Region 1. Upgrading of existing quarantine facilities 2. Establishment of feedlots at Etunda, Rundu and Katima Mulilo Please click here (1mb pdf document) for the full text of the MCA Namibia Program Livestock Production & Marketing component. For other relevant documentation and links, go to Docs and Links. MCA Namibia Investment 3: Promote private and community-based investment in tourism. Action 3.1 – Resource Development & Management New developments 1. New park-related tourism development opportunities 2. Tourism and local business hub 3. Game production camp 4. Bush access and 4X4 game-viewing 5. Border post Enhanced management of natural resources 6. Tourism and natural resource mgt service centre 7. Boundary conflict management 8. Restoration of NR assets as basis for tourism Key support infrastructure 9. Bridge 10. Energy 11. Water 12. Site preparation / landscaping 13. Management team Action 3.2 – Marketing Destination marketing: emerging USA and Canada 1. Cooperative Marketing Agreements 2. Public Relations & Media 3. Destination Promotion Destination marketing: emerging Europe 4. Cooperative Marketing Agreements 5. Destination Promotion Tourism route marketing 6. Domestic Market 7. South Africa 8. Interactive website development Action 3.3 – Barriers Removal 1. Capitalize Tourism-tailored Loan Scheme 2. Incentive-based training package Action 3.4 – Empowerment & Capacity Building Upscale and formalize the activities of the Tourism Council 1. Tourism Awareness Campaign 2. Implement and monitor the Transformation Charter 3. Create Tourism House Training and Mentorship Programs 4. Provide training funds 5. BBEE Mentorship programme Please click here (1.44mb pdf document) for the full text of the MCA Namibia Program Tourism. For other relevant documentation and links, go to Docs and Links. MCA Namibia Investment 4: Promote private and community-based Investment in Indigenous Natural Products. 4.1 – Product Specific Actions 1. Expanding Wild Silk production through capital investment and training 2. Domestication and cultivation of Hoodia 3. Kalahari Melon Seed (KMS) 4. Devil’s Claw Propagation and enrichment planting 5. Selection and increased cultivation of superior Marula genotypes 6. Multi-purpose extraction, quality control and product development facility 4.2 – National-level Supportive Actions 1. Management intervention 2. Traceability and certification 3. Eco-Regional Satellite Centre (ERSC) Networks for regional outreach 4. Additional first-Level oil extraction capacity 5. Developing commercial (marketing and brand-building) partnerships MCA Investment 5: Rural Access Roads. 1. New link from Oshikango to Omundaungilo 2. D3600 from Tsintsabis to Katwitwi 3. New link from Omutambo Mawe to Okahao 4. Okahao to Omakange 5. D3403 from Divundu to Mohembo 6. D3301 & D3830 from Epukiro to Eiseb Block 7. New link from Omuthiya to Omutambo Mawe |
| The Due Diligence process covered various assessment including: 1. Technical viability 2. Economic Rate of Return Assessment 3. Beneficiary Analysis 4. Socio-environmental Assessment |
