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The following is a generic example of Leland Initiative's stock Memorandum of Understanding (MOU) laying out the basic policy groundwork between USAID and each partner country for establishing a national Internet gateway. The majority of Leland partner countries will need to sign a country-specific MOU related to their national policy environment.

MEMORANDUM of UNDERSTANDING

Between

THE AGENCY FOR INTERNATIONAL DEVELOPMENT

of

THE UNITED STATES OF AMERICA

and

THE GOVERNMENT OF THE REPUBLIC OF ____________

ARTICLE 1. PURPOSE

The United States of America, acting through the United States Agency for International Development ( USAID ), and the Government of the Republic of ____________ ( RO_ ),acting through the Government of the Republic of ____________'s Ministry of Posts and Telecommunications, Telecom Company (TELCO), and the Ministry of Finance and Budget, hereinafter collectively referred to as the Parties, wish to cooperate in a mutual effort to establish a national Internet gateway. The Internet gateway shall assist in the creation of an enabling environment to facilitate electronic networking and access to Global Information Infrastructure technologies such as the Internet; ensure the availability of reliable, competitive, and cost-effective services for accessing the Internet; and increase broad-based utilization of the Internet to enhance RO_ and USAID sustainable development objectives.

USAID wishes to furnish and the RO_ wishes to receive in-kind assistance for this purpose. Accordingly, the Parties have concluded the present Memorandum of Understanding, hereinafter referred to as the MOU, to set forth their understanding with respect to their undertakings in support of the stated purpose. This MOU is not intended to effect an obligation of funds by USAID.

ARTICLE 2. UNDERTAKINGS OF THE PARTIES

Section 2.1. The U.S. Government, through USAID, wishes to furnish to the RO_ in-kind assistance in the form of technical assistance, training, commodities and Telecommunications services for the establishment and enhancement of a national Internet gateway or node, over a period of approximately three years from the date of this MOU, or such later date as the Parties may agree to in writing. The nature of the assistance and coordination between the Parties is more fully described in the Annexes attached to this MOU.

Section 2.2. In the event USAID furnishes assistance described above, the RO_ shall:

2.2.1. Allow access to the national Internet gateway node by public or private entities, all of whom would be competing on an equal basis with each other in terms of licensing requirements, tariffs, and reasonably priced cost-based linkages between TELCO's Internet gateway node and Internet Service Providers (ISPs), and ISPs and their clients, for all connections managed and/or owned by TELCO, with the objective of improving the range, cost and quality of services.

2.2.2. Ensure equal and open access to information on the Internet by the ____ (Country),consistent with the laws currently in effect in the Republic of ____________.

2.2.3. Provide full-time staffing for national Internet gateway operations and management.

2.2.4. Make available or cause to be made available adequate and appropriate space for the installation of the equipment described in the Annexes attached to this MOU, including appropriate climate control, security and regulated electrical supply.

2.2.5. Provide continuous international Internet gateway Telecommunications operations.

2.2.6. Provide connectivity to other areas in the Republic of ____________ as Telecommunications circuits (including wireless) become available.

2.2.7. Provide Internet services directly to the public. TELCO shall conduct itself so as to provide such a service on an equal and competitive basis with other private sector Internet Service Providers. TELCO will offer untariffed, leased line access to the private providers at a reasonable price.

2.2.8. Provide USAID with an annual report indicating overall development of the Internet sector in the Republic of ____________, including, inter alia, information on the number of subscribers, volume of Internet traffic, the activities of private providers, a breakdown showing types of subscribers (individual vs. organizational, Country vs. non-Country, for example), a list of all pricing established for Internet services and any Government of the Republic of ____________ policies related to the diffusion of Internet in the country.

Section 2.3. The RO_ and USAID will jointly undertake to establish a Plan of Action within three months of signing this MOU to accomplish the goals as set forth in Article 1.Purpose: to create an enabling environment to facilitate electronic networking and access to Global Information Infrastructure technologies such as the Internet; ensure the availability of reliable, competitive, and cost-effective services for accessing the Internet; and increase broad-based utilization of the Internet to enhance RO_ and USAID sustainable development objectives. Upon signature of this Plan of Action by the Parties, USAID wishes to support its implementation, as referred to in Annex 1, Paragraph C.

Article 3. PROVISIONS

Section 3.1. All taxes duties or fees of whatever nature charged in the Republic of____________ resulting from the import, export, purchase, use or disposition of any equipment or property financed by USAID pursuant to this MOU (i.e., the list of equipment detailed in Annex 2 of this MOU, and any additional equipment required under the Leland Initiative which would be part of an amendment to this MOU per Article 3.9) will be the responsibility of the Government of the Republic of ____________. The RO_ agrees to exempt from income taxes. The RO_ agrees to exempt from income taxes and National Social Security contributions levied pursuant to the laws of the Republic of ____________ all individuals, except citizens and permanent residents of the Republic of ____________, who are employed (whether by direct hire, contract, grant or other arrangement) by USAID or by any organization financed by USAID to perform work in connection with this MOU. The RO_ agrees to grant work permits in an expeditious manner for all such individuals.

Section 3.2. Third Party Instruments and Availability of Funds: In order to provide the in-kind assistance described above and in the attached Annexes, USAID, in consultation with the TELCO, may enter into such contracts and other instruments with public and private parties as USAID deems appropriate. All undertakings of the U.S. Government pursuant to this MOU are subject to the availability of funds and to further agreement between USAID and such public and private parties, regarding the provision of in-kind assistance. This MOU is not intended to effect an obligation of funds by USAID.

Section 3.3. Compliance with U.S. Law and Regulations: USAID shall obligate, commit and expend funds and carry out operations pursuant to this MOU only in accordance with the applicable laws and regulations of the United States.

Section 3.4. Title to and Use of Property: Unless otherwise directed by USAID, title to all property furnished by USAID shall be vested in TELCO. Any property furnished by USAID and titled to TELCO shall be used effectively for the assistance purpose described above and, upon completion of the assistance, shall be used so as to further the objectives of the assistance. If property furnished by USAID and titled to TELCO is used for purposes other than those agreed upon by the Parties, under circumstances which could reasonably have been prevented by appropriate action of TELCO, TELCO shall, upon USAID's request and election, return such property or refund the amount disbursed for such property in U.S. Dollars.

Section 3.5. Records, Audit and Inspection: TELCO shall maintain or cause to be maintained, as appropriate, records relating to the assistance adequate to show use and receipt of assistance furnished pursuant to this MOU. Records shall be maintained for a period of three years after assistance has been furnished. TELCO shall afford authorized representatives of USAID, or their designees, the opportunity at all reasonable times to inspect the site of the assistance and records relating to the assistance.

Section 3.6. Publicity: The RO_ will give appropriate publicity to the assistance as a program to which the U.S. Government has contributed.

Section 3.7. Information and Implementation Letters: USAID and the RO_ shall provide each other with such information as may be needed to facilitate provision of the assistance and to evaluate the effectiveness of this assistance. In addition, USAID may from time to time issue implementation letters to provide additional information on matters discussed in this MOU. The Parties may also use jointly agreed letters to confirm their mutual understandings with respect to implementation of this MOU, including changes in elements of the attached Annexes.

Section 3.8. Authorized Representatives: The RO_ will be represented by the person holding or acting in the office of the President, TELCO, and the United States will be represented by the person holding or acting in the office of Director, USAID/____________. Each Party may, by written notice to the other, identify additional representatives authorized to represent that Party for all purposes other than executing formal amendments to this Memorandum of Understanding.

Section 3.9. Amendment and Modification: This MOU may be amended or modified by written agreement of the Parties. Elements of the attached Annexes may be changed by written agreement of the Parties without formal amendment of this MOU. One year after signature, this MOU will be reviewed to assess accomplishments and progress towards meeting USAID and RO_ strategic goals, and prior to defining second year follow-on activities.

Section 3.10. Suspension and Termination

  1. Suspension. In the event:
    1. the RO_ fails to comply with any provision of this MOU;
    2. USAID determines that an extraordinary situation has occurred which makes it improbable either that the purpose of the MOU will be attained or that the RO_ will be able to comply with provisions of the MOU;
    3. USAID determines that continuation of assistance would result in a violation of U.S. law or regulations; or
    4. USAID determines that suspension is in the best interest of the U.S. Government USAID may, at its option for the reasons stated above take steps to immediately suspend, in whole or in part, provision of assistance under this MOU and provide written notice of its actions to the RO_. In the event of partial suspension, such notice shall specify affected activities. If, after sixty (60) days from the date of such notice, USAID determines that the cause or causes for suspension have not been corrected, USAID may terminate assistance and provide written notice of its action to the RO_.
  2. Termination. Either Party may terminate this MOU, in whole or in part, by giving the other Party thirty (30) days written notice. In the event of partial termination, such notice shall specify affected activities. Termination of this MOU will terminate any responsibilities of the Parties to provide financial or other resources for this activity, except for payments which they are committed to make pursuant to non-cancelable commitments entered into with third parties prior to the termination of this MOU. Obligations of the RO_ set forth in

Section 3.4. above relating to use of property furnished under this MOU shall remain in force after termination. In addition, upon such termination, USAID may, at USAID's expense, direct that title to goods furnished hereunder be transferred to USAID if the goods are from a source outside the Republic of ____________, are in a deliverable state, and have not been off-loaded in ports of entry of the Republic of ____________.

N WITNESS WHEREOF, the Parties, each acting through their duly authorized representatives, have caused this MOU to be signed in their names and delivered as of this___ day of ______, 1999.

For the United States of America: For the Republic of ____________:
______________________________
U.S. Ambassador to ______________
_____________________________
Minister of Posts and Telecommunications
______________________________
USAID Mission Director in _________
______________________________
Minister of Finance and Budget
____________________________
President
TELCO

ANNEX 1

PROGRAM DESCRIPTION

A. BACKGROUND

The Government of the Republic of ____________ has indicated an interest in bringing access to the full range of Internet services to the Republic of ____________, to be implemented by the national Telecommunications company, Telecom Company (TELCO).

The United States Government has established a mechanism for providing financial, technical, training and policy support for African countries interested in creating a national Internet gateway. This mechanism, called the Leland Initiative: Africa GII (Global Information Infrastructure) Gateway Project, is being implemented by the U.S. Agency for International Development (USAID).

Therefore, USAID and TELCO have agreed to collaborate in a Telecommunications project that will increase access to and facilitate the use of information by citizens of ____________, specifically access to the global information infrastructure via a national Internet gateway in ____________. This project meets USAID objectives (under the Leland Initiative) to improve connectivity within Africa, increase access by Africans to information worldwide for sustainable development, and enhance Africans' ability to find solutions to African problems by promoting low-cost access to Internet by the maximum number of the Country citizens. It also seeks to promote private sector enterprise and partnerships between public and private sector entities and encourage training in state-of-the-art technologies.

The project also meets TELCO objectives to provide a national gateway for international Internet access, to extend Internet access to as many areas and citizens in the Republic of____________ as possible, to recruit and train the highest possible level of engineering talent, and to increase public access to modern Telecommunications systems and services.

B. PLAN OF ACTION

USAID wishes to capitalize on the opportunities described above to provide assistance through the Leland Initiative project for TELCO's establishment of a national Internet access server. In doing so, it would be able to address the key issues and potential barriers to the establishment of an appropriate environment.

USAID has an opportunity to be a catalyst for collaboration and cooperation by providing venues and a medium for enhanced communication, and a vehicle for human and institutional capacity-building interventions.

The next set of activities would be to determine institutional strengthening requirements of TELCO, prepare a detailed design of the computer and Telecommunications infrastructure, and determine an appropriate structure for collaboration between TELCO and Internet Service Providers. Specific tasks which USAID, in consultation with TELCO, will assist with are the following:

  1. Institutional Strengthening
  2. Organizational Relationships
  3. Analysis of Existing Systems and Technological Environment
  4. Detailed System Design
  5. Financial Analysis

C. IMPLEMENTATION PLAN

Based on the results of the analyses described above, USAID wishes to provide TELCO with the following:

With the prior agreement of both parties, this implementation plan may be modified as a result of the availability of funds or other resources from donors which would like to support the establishment of Internet in ____________.

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