Law Of Creation Of Fund Millennium Ii.

Original Language Title: LEY DE CREACIÓN DEL FONDO DEL MILENIO II.

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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________

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DECREE NO 839

THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,

CONSIDERING:

I.-The objective of the Government of El Salvador is to build a model of productive, efficient, inclusive and sustainable socioeconomic development, so it is necessary to promote the initiatives that are framed in the Partnership for Growth, the new cycle for investment, development and employment and the Strategy The Development of the Marine Coastal Strip.

II.-Which dated 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 was signed through the Millennium Challenge Corporation (MCC), which aims to reduce poverty through economic growth in El Salvador, through which a donation of TWO HUNDRED AND SIXTY-SEVEN MILLION UNITED STATES DOLLARS (US$ 267,000,000) for the Program to increase the productivity and competitiveness of El Salvador in international markets, through projects to increase private investment by improving the regulatory environment and institutional capacity of El Salvador, and to provide key public services In addition to the private sector, improving the quality of education and thus the skills and competences of the workforce, seeking a high level of competitiveness in human capital, and reducing logistics and transport costs for increase investment, productivity and value added to goods and services in the domestic market and in international trade. In addition, for the provisional application of the Millennium Challenge Convention, MCC will grant an additional donation in an amount that will not exceed 10 million dollars from the United States of America (US$ 10,000,000).

III.-That in order to facilitate and ensure the development and implementation of such purposes, it is necessary to create an implementing institution, provided with a legal regime that enables the administration of the financing of the MCC, and of compliance with all obligations and responsibilities assumed by the Government of the Republic of El Salvador.

BY TANTO,

in use of its Constitutional powers and on the initiative of the President of the Republic through the Ministers of Foreign and Finance.

DECCRETA the following:

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MILLENNIUM FUND CREATION LAW II

TITLE I SINGLE CHAPTER

GENERAL PROVISIONS

Object

Art. 1. This Law is intended to regulate the internal organization, operation and operation of the entity called MCA-El Salvador or the Millennium Fund II or FOMILENIUM II, which will be in charge of the administration of the resources that will be assigned to the achievement and achievements of the objectives and commitments set out in the Convention and those defined in this Law.

Definitions

Art. 2. For the purposes of this Law, the following definitions shall apply:

Supplementary Agreement: A document signed between the Government of El Salvador or MCA-El Salvador and the Millennium Challenge Corporation (MCC), other than the Convention, but which derives or complements to the same, or between MCA-El Salvador and any third party in order to establish procedures, requirements, terms of implementation and/or specific conditions for the execution of the Program. These supplemental agreements do not modify, alter, or replace the contents of the original Convention.

Executing Entity Agreement: Agreement between MCA-El Salvador and an Executive Entity.

Agreement for the Implementation of the Program or AEP: Agreement signed between the Government of El Salvador or MCA-El Salvador and the Millennium Challenge Corporation (MCC), other than the Convention, but which provides additional details on the provisions for implementation, fiscal responsibility and the disbursement and use of the MCC financing, among other matters in accordance with the Convention, the AEP, any other Supplementary Agreement and any Charter of Enforcement.

Budgetary autonomy: Operations or activities that, in the execution of its budgetary or administrative functions, carry out MCA-El Salvador, not be subject to prior authorization or intervention by any institution or entity other than MCA-El Salvador.

Convention: The Second Millennium Challenge Convention, 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, 2001. 2014.

Millennium Challenge Corporation (MCC) Corporation: State Corporation of the United States of America.

Guidelines for public procurement under the MCC Program: They are those which, in addition to being governed by the Convention, must include the following requirements: 1. Regulations for public procurement and procurement that are accepted at international level, which contain clear, fair, competitive and transparent procedures to be used in a transparent manner to request, adjudicate and administer the contracts, concessions and other agreements, as well as to acquire goods, services and works;

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2. Tenders for goods, services and works shall be based on a clear and precise description of the goods, services and works to be acquired; 3. Contracts shall be awarded only to capable and qualified contractors who have the availability to subscribe to the Contracts in accordance with the terms and conditions of such contracts, in a timely and efficient manner on the basis of costs; and, 4. For the acquisition and procurement of goods, services and works, no prices that are commercially reasonable will be paid, as per the respective MCC policies and guidelines.

Executing Entity: One or more Ministries, Dependencies, Government Entities or Bodies, Societies, Non-Governmental Organizations, Supplies or Contractors, selected in accordance with the provisions of the Agreement, which will participate with MCA-El Salvador in order to implement any project, activities of this (or a component of the above) or other necessary for the implementation of it.

Management Team: It is the human team that will be in charge of the administration of MCA-El Salvador and will be integrated with compliance with the provisions of the Convention and this Law.

Financing of the MCC: Refers to the "Financing of the Program" and "Financing for the Implementation of the Convention", which are defined and regulated in accordance with the provisions of the Convention. the Convention.

Government: The Government of the Republic of El Salvador.

Board of Directors: The Board of Directors of the MCA-El Salvador or FOMILENIUM II.

NGO: Non-governmental Organization.

Multiannual 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 in addition to the multi-annual summary of the Calculated financing of the MCC, the contribution of funds and the resources of the Government, the annual and quarterly financing requirements for the program and for each project, estimated on the basis of the budgetary allocations and funds.

Program: The sum of all cross-cutting projects and activities included within the Convention, to be implemented with the funds of the MCC and the Government, as established in the Convention.

Regulation: The Regulation of this Law.

MCC Gender Policy: The gender policy of the MCC (including any document guidance issued in connection with the guidelines) published periodically on the MCC website or otherwise made available to the Government.

Projects of the Convention: The Human Capital Project, the Investment Climate Project and the Logistics Infrastructure Project, all of them within the Convention.

TITLE II CHAPTER I

CREATION OF THE MILLENNIUM FUND II

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Creation and Nature

Art. 3.-Create MCA-El Salvador, which may henceforth be referred to as the Millennium II or FOMILENIUM II Fund, as an autonomous institution of public law, of a technical nature, of public utility, and that will exist as long as there are activities, rights, and outstanding obligations arising from the Convention. At the end of the implementation of the Convention and the completion of all activities, the exercise of rights and the fulfilment of all obligations under the Convention, it shall end its existence, unless the Government and MCC agree differently.

It will have its own legal personality and its own patrimony, with full autonomy in the exercise of its functions, both in the financial, operational and legal, as well as in the technical, administrative and budgetary aspects. Your address will be that of the City of San Salvador, but you will be able to establish dependencies anywhere in the Republic.

Heritage

Art. 4.-The patrimony of MCA-El Salvador will be constituted by the grant of the MCC Financing and the contribution of the Government, in accordance with the Convention. MCA-El Salvador will have a multi-annual budget that will be approved as an extraordinary budget by the Legislative Assembly of El Salvador.

Organic Structure

Art. 5.-In accordance with the provisions of the Convention, MCA-El Salvador shall be integrated as follows:

1) A board of directors and their respective executive committee and/or special committees;

2) The management team, in accordance with with what the Convention and this Law sets; and,

3) Administrative and technical units.

CHAPTER II ORGANIZATION

Board of Directors

Art. 6.-The Board of Directors shall be the highest authority responsible for directing and supervising all activities of the Salvadoran Ministry of Education and for the fulfillment of the responsibilities and obligations acquired by the Government, in accordance with the Convention and This Law.

The Board of Directors shall be composed of seven voting members.

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The seven voting members will be selected as follows:

a) Four of the members and their respective alternates, appointed by the Government;

b) A representative of the private sector and their respective alternate, appointed by the Council for Growth;

c) A representative of a dedicated NGO to environmental or gender issues and their respective alternate; and,

d) A representative of an academic institution or of a study centre and its respective alternate.

Prior agreement between the Government and the MCC, the Board of Directors may include three or more non-voting members and their respective alternates, who may not vote in the sessions held for the purpose.

Initially, the members will 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 the Mayors related to the activities of the Program; and,

7) The Executive Director of MCA-El Salvador.

Those members without the right to vote may change in accordance with the Agreements between the Government and the MCC or as established in the Rules of Procedure of this Law.

The functions and powers of the members of the Board of Directors are inselectable. For each member who owns the Board of Directors there will be an alternate who will replace him in his absence with the same rights and powers.

All members of the Board of Directors will exercise their duties ad-honorem, so no will receive salary or diet.

The Regulation will develop in accordance with the provisions of the Convention, the procedures for the selection of any additional member of the Board of Directors, as well as the procedures for any Change of Chairman of the Board of Directors and any change in the composition of the Board

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Directive, as well as the conformation and attributions of an administrative team.

Art. 7. To be a member of the Board of Directors, it is required:

1) To be Salvadoran, older in the exercise of their citizens ' rights, except the representative of MCC who may be of any other nationality;

2) Be of recognized and proven morality and honesty;

3) Academic competence and career path consistent with the functions of the office; and,

4) Submit a notarized affidavit, in which you express no conflict of interest to Fill in the position at the time of your choice.

Board of Directors ' Privileges

Art. 8.-The following are the privileges of the Board:

1) Monitor and administer the Program and each of the projects and activities that compose it;

2) Approve procedures, regulations, manuals, instructions, organization internal, expenses, public procurement, hiring and, in general, any document or guideline oriented to the implementation of the Program, all of which must be attached to the provisions of the Convention;

3) Propose to the Government the projects Executive Decrees that are necessary for the operation of MCA-El Salvador;

4) Approve, subscribe and implement Supplementary Agreements and Executive Entity Agreements necessary for the execution of the Program;

5) Designate the formation of the executive committee, special committees and their functions;

6) Name Executive Director of MCA-El Salvador and define its functions and responsibilities, delegating the powers to subscribe to any agreement previously approved by the Board of Directors;

7) Approving the request of the disbursements of the MCC are required for the Program implementation;

8) Create the drives administrative and technical implementation of the Program requires;

9) Approve the budget, its respective work plan, procurement plan, audit plan, and other documents that will form the implementation plan of the MCA-El Salvador, of

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agreement to what is established and defined in the Convention and in the AEP;

10) Approve hiring of the staff in the management team of MCA-El Salvador; and,

11) Any other attribution indicated in the Convention, the AEP, the Complementary Agreements and the Regulation of this Law.

Powers of the Chair of the Board of Directors

Art. 9.-Corresponds to the Chairman of the Board:

1) Represent the institution, judicial and extrajudicially;

2) Sign the Supplementary Agreements, Executive Entity Agreements, Contracts, Collaboration Agreements, and Cooperation and grant of general judicial, administrative or special powers, subject to the authorization of the Board of Directors;

3) Chair of the sessions of the Board of Directors; and,

4) Any other attribution to the Board of Directors assign.

CHAPTER III RESPONSIBILITIES OF MCAEL SALVADOR

Art. 10.-MCA-El Salvador under the Convention, will have the following responsibilities, among others:

1. Implement and implement the projects of the Convention, directly or through third parties, through agreements of implementing entities, hiring and financing of programs through the granting of non-reimbursable funds, among others;

2. Ensure the implementation of any type of environmental and social mitigation measures, identified in assessments or plans that have the approval of the MCC;

3. Develop and provide continuity to the mechanisms of citizen participation and consultations among the sectors of interest, relevant actors, local and sectoral authorities of relevance, representatives of the private sector, academic experts, international organizations, specialists from particular sectors and general public, among others, in an effective and timely manner for the elaboration of plans and programs, decision-making development of initiatives consistent with the objectives the programme contained in the Convention and the dissemination of progress and results of the management of the " This role will be assisted by the stakeholders ' committees, which lack the authority to take decisions; however, they will be responsible for examining reports, agreements and documents, in order to provide advice and input to MCA-El

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Savior on the execution of the program;

4. Implement economic and social compensation measures for the displacement of persons, residence, and businesses affected by infrastructure projects, according to the applicable MCC policy;

5. Implement the program consistently with MCC's gender policy; and,

6. Ensure compliance with all obligations and responsibilities set forth in the Convention.

CHAPTER IV AUDITS

Taxation

Art. 11.-Without prejudice to the operations of MCA-El Salvador, they are subject to audit according to the procedures outlined in the agreement and in the AEP, the Court of Auditors of the Republic shall comply with the Law, exercise its activity audit on the entity.

Audits

Art. 12.-MCA-El Salvador will have the necessary financial controls to guarantee the proper use of the resources that constitute its patrimony, for which it will have an internal audit. The Government shall ensure that external audits are carried out by an independent auditor, approved by MCC and contracted in accordance with the procedures laid down in the Convention, in the AEP and the Supplementary Agreements.

the audits shall be published, in accordance with the provisions laid down for that purpose in the Convention and in the AEP.

Required

Art. 13.-The Board of Directors, through the Executive Director, shall comply with the recommendations to be noted in the audit reports.

CHAPTER V ECONOMIC SYSTEM

Budget

Art. 14.-The resources to be invested by MCA-El Salvador shall be used to carry out works of public interest, in accordance with the provisions of the Convention and through the structuring and implementation of a five-year multi-annual financial plan, approving expenses and acquisitions and developing participatory consultative processes and will generally be the governing entity responsible for the results of the

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Convention program.

For the purposes of ensuring adequate and timely investment of such funds, their budget shall be of an extraordinary nature.

In that budget, the resources from the MCC shall be entered and the annual contributions of the general budget of the State directly allocated to the -El Salvador for the implementation of the programme contained in the Convention and any another source of financing. These additional funds will be considered part of the program, and therefore, they will be exempt from paying all taxes or levies contemplated in the existing Laws or that are in force during the term of the Convention. For this purpose, tax arrangements will be made with the Ministry of Finance.

The above budget shall be subject to the regulations and provisions set out in the Convention for this purpose.

Procurement of Goods, Works and Services

Art. 15.-For the acquisition of goods and services by MCA-El Salvador, in all matters related to the execution of the program, the procedures and the provisions indicated in the "Guidelines for Public Procurement" will apply. in the framework of the MCC Programme " established in the Convention and in the Agreements deriving from it. The provisions of the Law on Procurement and Contracts of Public Administration, its corresponding Executive Regulation, or any other Law or regulation of the Republic of El Salvador shall not be directly applicable or supplemented by any other law or regulation of the Republic of El Salvador. public procurement.

In public procurement, acts and contracts no person or entity shall participate in the selection, award, administration or supervision of a contract, concession or other benefit or transaction, in which (i) the entity, the person, their relatives up to the fourth degree of consanguinity or second of affinity or its partners in companies or organisations controlled or substantially related to such person or entity, has or has directly or indirectly a financial or other interest or (ii) the person or entity is in process or has any agreement with respect to a possible employment, unless such person or entity has previously informed MCA-El Salvador in writing about the conflict of interest and, after such notification, is agreed in writing proceed, despite such conflict.

Staff Recruitment

Art. 16.-The administration of MCA-El Salvador shall hire the personnel necessary for the performance of its duties, which shall be subject to the current labor regime and shall enjoy the rights and benefits in accordance with what is established in this respect. in the Labor Laws and the regulations to be issued.

Government Obligation

Art. 17.-During the period of the Convention, the Government shall make a contribution from its national budget and take into account prevailing economic conditions, for the achievement of

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the objectives of the Convention, which may not be less than 15% of the contribution of the MCC funding, as provided in the MCC guidelines. Such a contribution may come from own funds or funding earned for that purpose.

CHAPTER VI FINAL PROVISIONS

Program Execution

Art. 18.-For the effective implementation of the program, MCA-El Salvador will be able to enter into agreements with the implementing entities that it deems appropriate, to make contracts and to grant financing of programs through non-reimbursable funds, among others. agreement to the provisions of the Convention, the AEP, the Supplementary Agreements, this Law and the Regulation.

Substitute Application

Art. 19.-The situations not provided for in this Law and its Rules of Procedure will be resolved on the basis of the following order of application:

1 °) The Convention;

2 °) The AEP;

3 °) The Supplementary Agreements; and,

4 °) The Regulation.

Special Character of the Law

Art. 20. This Law shall be of special character and shall prevail over any provision which shall be contrary to the provisions of the Convention. The repeal or modification of any of its provisions must be expressly performed.

Transitional Provisions

Art. 21.-MCA-El Salvador succeeds in all its rights, obligations, contracts and activities in progress to the Technical Secretariat and the Planning of the Presidency originated and related to the Donation Agreement signed on March 20, 2013 between the Government of El Salvador, through the Technical and Planning Secretary of the Presidency and the Corporation of the Millennium Challenge, in the amount of up to TWO HUNDRED AND FORTY THOUSAND DOLLARS FROM THE UNITED STATES OF AMERICA (US$2,940,000), according to the provisions of Section 2.2 (b) (ii) of that Agreement, as well as of the allocations budget of the general budget of the State to which they were made. MCA-El Salvador will provide continuity to the activities derived from the said Agreement for which it will hire the necessary and appropriate personnel.

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Art. 22.-Without prejudice to the powers and procedures laid down in the Convention and this Law to appoint, select and designate the members of the Board of Directors and until otherwise otherwise, the members whose appointment is the responsibility of the Government will be the following:

a) Technical and Planning Secretary of the Presidency of the Republic;

b) Minister of Public Works, Transport and Housing and Urban Development;

c) Minister of Education; and,

d) President of PROESA.

The Technical and Planning Secretary of the Presidency, will exercise the Chair of the Board of Directors.

Regulation

Art. 23.-The President of the Republic shall issue the Rules of Procedure of this Law, within thirty days of its validity.

Vigencia

Art. 24.-This Decree shall enter into force eight days after its publication in the Official Journal.

GIVEN IN THE BLUE HALL OF THE LEGISLATIVE PALACE: San Salvador, at the thirty days of October of the year two thousand fourteen.

OTHON SIGFRIDO REYES MORALES, PRESIDENT.

ENRIQUE ALBERTO LUIS VALDEZ SOTO, GUILLERMO ANTONIO GALLEGOS NAVARRETE, FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.

JOSÉ FRANCISCO MERINO LÓPEZ, LORENA GUADALUPE PEÑA MENDOZA, THIRD VICE PRESIDENT. FOURTH VICE-PRESIDENT.

CARLOS ARMANDO REYES RAMOS, FIFTH VICE PRESIDENT.

GUILLERMO FRANCISCO MATA BENNETT, MANUEL VICENTE MENJÍVAR ESQUIVEL, FIRST SECRETARY. SECOND SECRETARY.

SANDRA MARLENE SALGADO GARCÍA, JOSÉ RAFAEL MACHUCA ZELAYA, THIRD SECRETARY. FOURTH SECRETARY.

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IRMA LOURDES PALACIOS VÁSQUEZ, ERNESTO ANTONIO ANGULO MILLA, FIFTH SECRETARY. SIXTH SECRETARY.

FRANCISCO JOSE ZABLAH SAFIE, JOSE SERAFIN ORANTES RODRIGUEZ, SEVENTH SECRETARY. EIGHTH SECRETARY.

CASA PRESIDENTIAL: San Salvador, six days of the month of November of the year two thousand fourteen.

PUBESQUIESE,

Salvador Sánchez Cerén, President of the Republic.

Hugo Roger Martínez Bonilla, Juan Ramón Carlos Enrique Cáceres Chávez, Minister of Foreign Affairs. Minister of Finance.

D. O. No. 207 Took No. 405 Date: November 6, 2014.

JQ/ngcl 08-12-2014

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