Common use of Policy, Legal and Regulatory Reforms Clause in Contracts

Policy, Legal and Regulatory Reforms. The Parties have identified the following policy actions and legislative and regulatory reforms that the Government will pursue in support of the Transport Infrastructure Project to reach its full benefits. Satisfactory implementation of these reforms may be conditions precedent to certain MCC Disbursements as provided in the Disbursement Agreement: (a) The Government shall, in accordance with World Bank policy on involuntary resettlement, undertake consultations with land users in the Whitesands Road project area in order to establish appropriate locations for drainage lines and shall address any social issues and claims arising from such consultations to the satisfaction of MCC. Moreover, any required acquisition rights-of-way and any resettlement programs shall be amicably settled with compensation in accordance with World Bank policy on Involuntary Resettlement; (b) The Government shall ensure that an M&E Implementation Manual (“M&E Implementation Manual”), describing all data collection, reporting, and quality assurance mechanisms, must be submitted to and approved by MCC; (c) The Government will ensure completion of the Household Income and Expenditure Survey and collection of baseline data on all monitoring and evaluation indicators; (d) PWD shall establish commercially driven maintenance contracts with community representatives for basic routine maintenance activities for the following Infrastructure Subproject Activities: Efate Ring Road (with rural villages), Santo East Coast Road (with rural villages), Malekula Norsup Lakatoro Lits Lits Road, Pentecost North South Road, ▇▇▇▇▇ Whitesands Road, and Malo Roads. These maintenance contracts must be in effect prior to the commencement of the respective Infrastructure Subproject Activities; (e) The Government or the respective province shall develop a revenue collection mechanism and an implementation plan for the collection of wharf user fees and their application towards wharf maintenance. This shall be a condition precedent for initial disbursement of MCC Funding for the relevant Infrastructure Subproject Activity; (f) The Government will fund the mitigation and remediation costs related to the civil works component of the Transport Infrastructure Project as identified in the environmental management plans (“EMPs”) in excess of the budgeted amount in the Detailed Financial Plan for such costs; (g) The Government will ensure that a service performance contract is entered into between PWD and Ministry of Infrastructure and Public Utilities within six months of Entry into Force. The service performance contract shall monitor and assess PWD’s performance against an action plan. PWD management shall be held accountable for service performance in accordance with terms to be specified in the service performance contract; and (h) The Government will allocate sufficient funds for road maintenance activities in accordance with the Road Maintenance Budget Allocation. Additionally, the Parties agree that the Government will explore insurance coverage options to further ensure the sustainability of the Program Assets.