Identify, Due Diligence and Refine Results-Based Financing (RBF) Opportunities in MCC Programs

The Department of Compact Operations (DCO) is responsible for developing and implementing MCC's compact programs. The department ensures that MCC compacts are designed and implemented in compliance with agency standards for procurement, financial management, environmental and social performance, and gender integration and social inclusion. Within DCO, the Sector Operations Division is responsible for the development and oversight of MCC's agriculture, land, human and community development investments, program procurement and financial services, gender integration and social inclusion. To review and understand MCC's compact development process please review the resources available at: https://www.mcc.gov/resources/doc/guidance-compact-development-guidance Within Sector Operation, the Human and Community Development Practice Group (HCD) is MCC's institutional home to the health and nutrition, education and workforce development, social and behavior change and community development sectors and aims to ensure that all community members are accounted for in Compact and Threshold design, implementation, and evaluation. International development donors, including MCC, face constant challenges in achieving sustained development impact in our partner countries. Results-based financing, or RBF, has gained increasing attention in recent years as a way to increase impact in both improving service delivery and achieving policy and institutional reforms. MCC began using RBF in 2015 for job placement services in our Morocco Employability and Land Compact and with power and water utilities in the Sierra Leone Threshold program. Since then, the Agency has seen both positive results and opportunities for impact. For instance, in Sierra Leone, the water utility cites the RBF program as the main driver in their ability to increase their collections from 52 to 85% - a remarkable turnaround for their financial sustainability, critical to providing quality water to hundreds of thousands of Sierra Leoneans. The Morocco job placement program has secured over 4,000 formal jobs for women and at-risk youth in Morocco and the Government of Morocco has already commissioned an additional RBF program to enhance the delivery of their own non-MCC-funded programs. To build on these promising early results and leverage the lessons learned, MCC has been working since 2019 to strengthen the Agency's use of RBF approaches. Through a Results-Based Financing Initiative, MCC has developed tools for assessing and designing RBF programs and guidance for how to structure RBF through both contracts and grants, screened 11 country programs for RBF opportunities, and ultimately supported the inclusion of RBF investments in the Senegal Power Compact, the Lesotho Health and Horticulture Compact, and is being proposed in the second Mozambique Compact. For more on RBF at MCC visit this page. MCC requires a contactor to provide services regarding the development of MCC capacities and strategy for Results-based Financing (RBF) in Human and Community Development and Other Relevant Sectors.