VZCZCXRO6557
PP RUEHLMC
DE RUEHTO #0364/01 0861428
ZNR UUUUU ZZH
P 271428Z MAR 07
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC PRIORITY 7060
INFO RUEHLMC/MCC WASHDC

UNCLAS SECTION 01 OF 02 MAPUTO 000364 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR M/R:APONCE, AF/EX:BGATES, AF/S:HTREGER 
 
E.O. 12958:  N/A 
TAGS: AODE AMGT KMRS MZ
SUBJECT: NSDD-38/Mozambique - COM Approval of Millennium Challenge 
Corporation Staffing in Mozambique 
 
Refs: A) State 18065 
B) NSDD-38 Request Case Number MCC-MOZ-32702-1262007 C)Guidance for 
COMs on NSDD-38 Requests 
 
¶1. The Chief of Mission approves the request by the Millennium 
Challenge Corporation to establish five full-time positions - one 
U.S. direct hire position, one either direct hire or PSC position, 
and three local hires - in Maputo, with the conditions and changes 
noted in para 8.  These positions are necessary for successful 
implementation of the Millennium Challenge Corporation's expected 
compact with the Mozambican government.  This compact is expected to 
provide several hundred million dollars worth of assistance over a 
five-year period, primarily in the areas of roads, water, and 
sanitation. 
 
¶2. Mission Performance Plan:  Post's FY07 MPP anticipated one USDH 
MCC position, and the FY08 MPP cited the need for both the Director 
and the Deputy Director positions.  The MPP only included USDH 
positions and so did not address the three local hire positions. 
 
¶3. Workload:  Not applicable, as MCC does not currently have staff 
at post.  Non-MCC staff lack the required expertise in MCC's planned 
compact and its procedures.  Also, other-agency resources are fully 
involved in implementing other programs. 
 
¶4. Other Options for Accomplishing Function:  It would be unlikely 
that the anticipated compact could be successfully implemented 
without the permanent, in-country presence of a direct-hire director 
of sufficient rank to develop relationships with and engage senior 
GRM officials.  MCC has relied on frequent TDY visits during the 
lengthy process of devising a compact, and the delays in that 
process have provided evidence of the drawbacks of this approach. 
 
¶5. Administrative Support/Space/Funding Arrangements: 
MCC plans to locate its office in the existing USAID facility. 
There is no room in the current chancery or the two annexes closest 
to the chancery, and USAID has the extra space.  Because MCC will be 
collocated with USAID, it will be most efficient for MCC to obtain 
many of its services from USAID rather than ICASS, including 
Computer/Telecommunications Support, Reception, Motor Pool, Office 
Supplies/Support, STL Non-Residential BOE, Customs/Shipping, 
Financial Management, Travel Services, and even Vehicle Maintenance 
and surge motorpool support.  Under this scenario, ICASS would 
provide MCC with Basic Package, Health Services, CLO, Personnel, 
General Services, Information Management (pouch), Language 
Instruction (English for FSNs), and STL Residential BOE. Actual 
experience will determine the optimal mix of service provision. 
However, for the purpose of cost estimation, it is assumed here that 
all administrative support will be provided by ICASS. On this basis, 
MCC's annual cost for administrative support would be approximately 
$230,000.  Additional costs for its LES, residential lease, 
utilities and guard service is estimated to total $270,000 per year. 
In addition, MCC will incur start-up costs for its offices and 
residence of approximately $200,000. These estimates do not include 
the cost of MCC's USDH salary/benefits/allowances, and in-country 
travel.  Relatedly, it is post's understanding that MCC will need to 
seek setback and collocation waivers from Diplomatic Security for 
them to occupy current USAID space.  Housing for non-local staff 
shall be provided in a manner consistent with applicable FAM 
regulations. 
 
¶6. Benefit/Security Tradeoff: While Maputo is a critical crime 
threat post, the benefit of being able to implement an important 
Presidential initiative such as the MCC in Mozambique outweighs the 
security risks associated with the addition of five new staff 
members. 
 
¶7. Other:  MCC has stated in the Ref B request that the assigned 
Resident Country Director and Deputy Resident Country Director (the 
only two US-hired positions in this request) will receive security 
and working in an Embassy training before coming to post. 
 
¶8. Conditions and Changes to Request: 
 
a) Post understands from MCC that Position 2, the Deputy Resident 
Country Director, may be either a USDH (as indicated in the 
application) or a PSC position. 
 
b) As noted in MCC's trip report, positions 3, 4, and 5 will be 
graded at levels to be determined by the CAJE process at post. 
 
c) Construction of a New Embassy Compound is expected to begin in FY 
2010, though this date could change.  MCC and all other USG agencies 
(except Peace Corps) will collocate in the NEC.  The ongoing 
planning process has taken into account, in consultation with MCC, 
the expected size of the MCC office.  Upon the move to the NEC, 
support services such as motor pool for nearly all agencies will be 
provided by a combined ICASS Joint Management Section (JMS).  This 
will affect several of the services that USAID will provide until 
then.  MCC will receive motor pool services from the JMS motor pool, 
 
MAPUTO 00000364  002 OF 002 
 
 
and the driver position (position 5 in this request) is likely to be 
abolished or transferred to the JMS motor pool. 
 
d) Post understands from MCC that the language in part IV of the 
justifications for positions 3, 4, and 5, the Development Assistant 
Specialist, the Administrative Assistant, and the Driver, which says 
the MCC believes it is best that these positions be filled by USDH 
employees with security clearances is incorrect, and that MCC's 
intention is that the positions should be locally recruited, as is 
stated in the Employment Type field for each position. 
 
e) Both ref A and ref B contain references to Lesotho and the GOL 
that post assumes should refer to Mozambique. 
 
¶9. Post believes that the issues raised in refs A-C have been 
satisfactorily addressed and that the strong positive contributions 
these positions will make towards implementation of the MCC Compact 
outweigh the security and other concerns associated with adding 
positions.  The Chief of Mission approves the proposal as outlined 
in Ref B, with the conditions and changes listed in para 8.  Please 
advise if additional information is required. 
 
Johnson