Law Of Creation Of Fund Millennium Ii.


Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here:


I. That the Government of El Salvador aims to build a model of socioeconomic development productive, efficient, inclusive and sustainable, so it is necessary to promote initiatives that are part of the Partnership for Growth, the new cycle for investment, development and employment and the development Strategy of the Coastal Strip Marina.
II.- That on September 30 this year, the Millennium Challenge Agreement between the Government of the Republic of El Salvador and the Government of the United States of America through the Challenge Corporation was signed Millennium (MCC in English), which aims to reduce poverty through economic growth in El Salvador, through which a donation of TWO HUNDRED SIXTY granted SEVEN MILLION DOLLARS oF tHE UNITED STATES oF AMERICA (US $ 267 million) for the program aimed at increasing productivity and competitiveness of El Salvador in international markets through projects to increase private investment by improving the regulatory environment and institutional capacity in El Salvador, and provide key public services in associations with industry private; improve the quality of education and thus the skills and competencies of the labor force human capital seeking high level of competitiveness; and reducing logistics and transportation costs to increase investment, productivity and value added to goods and services in the domestic market and in international trade. Also, for the provisional application of the Millennium Challenge Agreement, MCC will award an additional grant in an amount not exceeding TEN MILLION DOLLARS OF THE UNITED STATES OF AMERICA, (US $ 10,000,000).
III.- to facilitate and ensure the development and implementation of such purposes, it is necessary to create an implementing agency, provided with a legal regime that enable the management of MCC funding, and compliance with all obligations and responsibilities assumed by the Government of the Republic of El Salvador.
in exercise of its constitutional powers and initiative of the President of the Republic by the Ministers of Foreign Affairs and Finance.
DECREES the following:


Object Art. 1. This Act is to regulate the internal organization, functioning and operating of the entity called MCA-El Salvador or Millennium Fund II or FOMILENIO II, which will be responsible for the administration of the resources are allocated to achieving and achievements of the objectives and commitments set out in the Convention and to define this Law.

Definitions Art. 2. For the purposes of this Act, shall apply:
Supplementary Agreement: Agreement between the Government of El Salvador or MCA-El Salvador and the Millennium Challenge Corporation (MCC), other Convention document, but derived or supplements thereto, or between MCA-El Salvador and any third party to establish procedures, requirements, terms of implementation and / or specific conditions for program execution. These supplementary agreements do not modify, alter or replace the contents of the original Convention.
Implementing Entity Agreement: Agreement between MCA-El Salvador and executing agency.
Agreement for the Implementation of the Program or AEP: Agreement between the Government of El Salvador or MCA-El Salvador and the Millennium Challenge Corporation (MCC), other than the Convention Agreement, but provides additional details on arrangements for the execution, fiscal responsibility and disbursement and use of MCC funding and other issues in accordance with the Convention, the AEP, all other Supplemental Agreement and any implementation Letter.
Autonomy Budget: The operations or activities in the implementation of its budget or administrative functions, perform MCA-El Salvador, not be subject to prior authorization or intervention of any institution or entity other than MCA-El Salvador.
Convention: The Second Millennium Challenge Agreement signed between the Government of the Republic of El Salvador and the Government of the United States of America, through the Millennium Challenge Corporation, dated September 30, 2014 .
Millennium Challenge Corporation (MCC Millennium Challenge Corporation or by its acronym in English): state Corporation of the United States of America.

Guidelines for public procurement in the framework of the MCC: Are those also to be governed by the provisions of the Convention shall include the following requirements: 1. Regulations for public procurement and contracts that are accepted internationally, containing clear, fair, competitive and used in a transparent manner to solicit, award and administer contracts, concessions and other agreements procedures as well as to acquire goods, services and works;

2. Solicitations for goods, services and works must be based on a clear and precise description of the goods, services and works to be acquired; 3. Contracts shall be awarded only to contractors capable and qualified to have the availability to sign the contracts in accordance with the terms and conditions of such contracts in a timely and effective manner costs; and, 4. procurement and contracting of goods, services and works not prices that are not commercially reasonable, according to the respective policies and guidelines MCC pay.
Implementing Entity: One or more ministries, agencies, entities or government agencies or municipalities, companies, NGOs, suministrantes or contractors, selected in accordance with the provisions of the Convention, participating with MCA-El Salvador to implement any project activities this (or a component of the above) or other activities necessary for implementation.
Management Team: The team that will be responsible for the administration of MCA-El Salvador and will be integrated in accordance with the provisions of the Convention and this Act
MCC Funding. Refers to "Financing Program" and "Financing for the Implementation of the Convention", which are defined and regulated in accordance with the provisions of the Convention.
Government: The Government of the Republic of El Salvador.
Board: The Board of MCA-El Salvador or FOMILENIO II.
NGOs: Non-governmental organization.
Multi-Year Financial Plan: Financial Plan to be approved by the Government, subject to the approval of the MCC, within the time specified in the AEP, which will include also the multiannual financing summary of estimated MCC, the contribution of funds and Government resources, requirements for annual and quarterly funding for the program and for each project, estimated on the basis of budget and funding allocations.
Program: The sum of all projects and transverse activities within the Convention, to be implemented with funds from the MCC and the Government, in the manner set out in the Convention.
Regulation: Regulation of this Law
Gender Policy MCC. Gender policy of MCC (including any guidance document issued in connection with the guidelines) regularly published on the website of the MCC or otherwise made available to the Government. Projects
Convention: Human Capital Project, Project Investment Climate Project Logistics and Infrastructure, all included within the Convention. TITLE II CHAPTER I


Art Creation and Nature. 3. Believe MCA-El Salvador, hereinafter may be called Millennium Fund II or FOMILENIO II, as an autonomous institution under public law, technical, public utility and will exist as long as there activities, rights and obligations pending execution , under the Convention. After the implementation of the Convention and finalize all activities, exercise the rights and fulfill all obligations under the Convention, it must end its existence, unless the Government and MCC agree otherwise.
It will have legal personality and its own, with full autonomy in the exercise of their functions, both financial, operational and legal and technical, administrative and budgetary matters. Your home will be the City of San Salvador, but may establish offices anywhere in the Republic.

Heritage Art. 4. The assets of MCA-El Salvador shall constitute a grant from MCC Funding and the Government's contribution, in accordance with the Convention. MCA-El Salvador will have a multi-annual budget to be approved as extraordinary budget by the Legislative Assembly of El Salvador.

Organizational Structure Art. 5. In accordance with the provisions of the Convention, MCA-El Salvador shall be composed as follows:
1) A board of directors and their respective executive committee and / or special committees;
2) The management team in accordance with the provisions of the Convention and this Act; Y,

3) administrative and technical units. CHAPTER II ORGANIZATION

Board Art. 6. The Board shall be the highest authority in charge of directing and supervising all activities of MCA-El Salvador and to ensure compliance with the responsibilities and obligations acquired by the Government, in accordance with the Convention and this Law. | || The Board shall be composed of seven members voting.

The seven voting members will be selected as follows:
a) Four of the members and their alternates, appointed by the Government;
B) A private sector representative and one alternate, appointed by the Council for Growth;
C) A representative of an NGO dedicated to environmental or gender issues and their respective alternate; and
d) A representative of an academic institution or a research center and one alternate.
By agreement between the Government and the MCC, the Board may include three or more non-voting members and their respective alternates, who may not vote at meetings held for the purpose.
Initially These members include:
1) A representative of the MCC .;
2) A representative of the Ministry of Environment and Natural Resources;
3) A representative of the Ministry of Economy;
4) A representative of the Ministry of Finance;
5) representative of the Ministry of Foreign Affairs;
6) A representative of Mayors related program activities; and
7) The Executive Director of MCA-El Salvador.
These non-voting members may change in accordance with the agreements between the Government and the MCC or as provided in the regulations of this Law.
The functions and powers of the members of the Board are delegated. For each regular member of the Board will be an alternate who will replace him in his absence with the same rights and powers.
All members of the Board shall perform their functions ad honorem, so they will not receive any salary or diet.
The regulation will develop according to the provisions of the Convention, the procedures for selection of any additional member of the Board, as well as procedures for any change of Chairman of the Board and any change in the composition of the Board

Directive as well as the structure and powers of a management team.
Art. 7. To be a member of the Board is required:
1) Be Salvadoran, of legal age in the exercise of their rights of citizenship except the MCC representative who may be of any nationality;
2) Be recognized and proven morality and honesty;
3) academic career Competition and consistent with the duties of the office; and
4) Submit notarized affidavit in which it expresses no conflict of interest for the position at the time of your choice. Powers

Board Art. 8. The powers of the Board as follows:
1) Supervise and manage the program and each of the projects and activities that comprise it;
2) Approve procedures, regulations, manuals, instructions, internal organization, expenses, public procurement, contracting and, in general, any document or guideline aimed at the implementation of the program, all of which must be attached to the provisions of the Agreement;
3) propose to the Government the draft executive decrees necessary for the operation of MCA-El Salvador;
4) approve, sign and implement supplementary agreements and agreements Implementing Entities necessary for the implementation of the program;
5) Designate the formation of the executive committee, special committees and their functions;
6) Appoint the Executive Director of MCA-El Salvador and define their roles and responsibilities, delegating the authority to sign any agreement previously approved by the Board;
7) To approve the request of MCC disbursements necessary for the implementation of the program;
8) Create the administrative and technical units program execution required;
9) approve the budget, its respective work plan, procurement plan, audit plan and other documents that will form the plan of implementation of MCA-El Salvador, of

as established and defined in the Convention and the AEP;
10) approve the recruitment of staff in the management team of MCA-El Salvador; and
11) Any other attribution stated in the Convention, the AEP, the Supplemental Agreements and Regulations of this Law.
powers of the President of the Board

Art. 9. The Chairman of the Board:
1) Represent the institution, and out of court;
2) Signing the Supplemental Agreements, Implementing Entities Agreements, Contracts, Agreements Partnership and Cooperation and grant judicial, administrative or special general powers, prior authorization of the Board;
3) preside over the meetings of the Board; and
4) Any other attribution that the Board assigns to it.
Art. 10. MCA-El Salvador under the Convention, will among others, the following responsibilities:
1. Implement and execute projects Convention, directly or through third parties, through implementing agencies agreements, contracts and financing programs through provision of grant funds, among others;
2. You ensure the implementation of any measures of environmental and social mitigation measures identified in assessments or plans that have the approval of the MCC;
3. Develop and give continuity to the mechanisms for public participation and consultations among relevant sectors, stakeholders, local and sectoral relevant authorities, private sector representatives, academic experts, international organizations, experts from private sectors and the general public, among others , effective and timely for the preparation of plans and programs, decision making development initiatives consistent with the objectives of the program contained in the Convention and dissemination of progress and results of the management of the same way. This function will be attended by stakeholders committees, which have no authority for decision making; however, they will be responsible for reviewing reports, agreements and documents, to provide advice and input to MCA-El

Salvador on the implementation of the program;
4. Implement measures of economic and social compensation for the displacement of persons, residence and businesses affected by infrastructure projects, according to the applicable MCC policy;
5. Implement the program consistent with the MCC gender policy; and
6. Ensure compliance with all obligations and responsibilities under the Convention. CHAPTER IV AUDITS

Control Art. 11. Notwithstanding that the operations of MCA-El Salvador, are subject to audit in accordance with the procedures outlined in the agreement and the AEP, the Court of Accounts of the Republic shall in accordance with the law, exercise their activity oversight over the entity. Audits

Art. 12. MCA-El Salvador will have the financial controls necessary to ensure proper use of resources that constitute their heritage, for which purpose it will have an internal audit. The Government will ensure that external audits are conducted by an independent auditor approved by MCC and contracted in accordance with the procedures established in the Convention, the EPA and the Supplemental Agreements.
The audit reports will be published according to the provisions for that purpose in the Convention and the AEP.

Obligation Art. 13. The Board, through the Executive Director, shall comply with the recommendations are indicated in the audit reports. ECONOMIC REGIME CHAPTER V

Budget Art. 14. The resources invested MCA-El Salvador will be allocated for the execution of works of public interest, in accordance with the provisions of the Convention and by structuring and implementation of a multiannual financial five-year plan, approving expenditures and acquisitions and developing consultative and participatory processes will generally be the government entity responsible for the results of

Program 9 of the Convention.
For the purposes of ensuring adequate and timely investment of these funds, your budget will be of an extraordinary nature.
In this budget, the resources from the MCC be recorded and annual contributions from the general state budget are allocated directly to MCA-El Salvador for the implementation of the program contained in the Convention and any other source of funding will be incorporated . These additional funds are considered part of the program, and therefore be exempted from payment of all taxes or charges covered by existing laws or that are in effect during the term of the Agreement. To that end tax arrangements with the Ministry of Finance will.
The said budget shall be subject to the rules and regulations for that purpose indicated in the Convention.
Procurement of Goods, Works and Services

Art. 15. For the procurement of goods and services by MCA-El Salvador, in everything related to the implementation of the program, procedures and provisions listed in the "Guidelines for Public Procurement in the Framework apply program MCC "set out in the Convention and in the agreements arising therefrom. shall not apply directly or supplementary provisions of the Law on Procurement of Public Administration, the related Executive Regulation or any other law or regulation the Republic of El Salvador on public procurement.
in public procurement, transactions and contracts any person or entity involved in the selection, award, administration or oversight of a contract, grant or other benefit or transaction in which ( i) the entity, the person, their relatives to the fourth degree of consanguinity or second degree or its partners in companies or organizations controlled by or substantially involving such person or entity, has or directly or indirectly have a financial interest or other or (ii) the person or entity is in the process of negotiating or has any arrangement concerning prospective employment, unless such person or entity you have previously notified in writing to MCA-El Salvador about the conflict of interest and after such notification, agreed in writing to proceed notwithstanding such conflict.

Staffing Art. 16. The administration of MCA-El Salvador hire the staff necessary for the performance of its functions, which is subject to prevailing labor laws and shall enjoy the rights and benefits in accordance with what is established in this regard in the laws on labor and the regulations to be issued.

Government Obligation Art. 17. During the term of the Agreement, the Government shall make a contribution of their national budget and taking into account the prevailing economic conditions, to achieve

objectives of the Convention, which shall not be less than fifteen percent of the contribution of MCC funding, in accordance with the guidelines of MCC. This contribution will come from own financing or funds obtained for this purpose. CHAPTER VI FINAL PROVISIONS

Performing Art Program. 18. For the effective implementation of the program, MCA-El Salvador may sign agreements with the executing agencies it deems appropriate, enter into contracts and grant funding programs through grant funds, among others, according to the provisions of the Convention, the AEP , of the supplementary agreements of this Act and the Regulations.

Supplementary Application Art. 19. Situations not covered by this Act and its Regulations shall be resolved taking into account the following order of application:
1) The Convention;
2nd) The AEP;
3rd) The supplementary agreements; and
4th) Regulation.

Special Character Art Law. 20.- This Law is of special character and prevail over any provision that runs counter except the provisions of the Convention. The repeal or modification of any of its provisions must be made expressly.

Transitory Provisions Art. 21. MCA-El Salvador happens in all their rights, obligations, contracts and ongoing activities to the Technical Secretariat and Planning of the Argentine Presidency and related to the Grant Agreement signed on 20 March 2013 between the Government of the Salvador, through the Technical and Planning Secretary of the Presidency and the Corporation Millennium Challenge, for an amount up to TWO MILLION NINE HUNDRED FORTY THOUSAND DOLLARS oF tHE UNITED STATES oF AMERICA (US $ 2,940,000), as set out in section 2.2 (b) (ii) of the Agreement, as well as budget allocations of the general budget of the State which has made them. MCA-El Salvador, will carry on activities under that agreement for which it will hire the necessary personnel and appropriate.

11 Art. 22.- Without prejudice to the powers and procedures provided under the Convention and this Act to name, select and appoint members of the Board and while not provide otherwise, the members whose appointment the responsibility of the Government will be as follows:
a) Technical and Planning Secretary of the Presidency of the Republic;
B) Minister of Public Transportation Works and Housing and Urban Development;
C) Minister of Education; and
d) President of PROESA.
The Technical and Planning of the Presidency, the Secretary shall act as chairman of the Board.

Art. 23.- The President of the Republic shall issue the Regulation of this Law, within thirty days of its effective date. Effective

Art. 24.- This Decree shall enter into force eight days after its publication in the Official Journal.
GIVEN IN THE BLUE ROOM OF THE LEGISLATIVE PALACE: San Salvador, on the thirtieth day of October in the year two thousand and fourteen.
OTHON Sigfrido Reyes Morales, president.

PRESIDENTIAL HOUSE: San Salvador, on the sixth day of November in the year two thousand and fourteen.
Salvador Sanchez Ceren, President of the Republic.
Hugo Roger Martínez Bonilla, Juan Ramon Caceres Carlos Enrique Chavez, Minister of Foreign Affairs. Minister of Finance.
Tomo OJ No. 207 No. 405 Date: 6 November 2014 JQ