The present project is the third phase of the German Financial Cooperation’s (KfW) and the Malian government’s joint project for supporting communal authorities and administrations in local development and decentralization. The overall objective of PACT is to empower local governments in Mali to assume their role in promoting local development and thereby improve the living conditions of the population. The implementing agency of the project is ANICT (Agence Nationale d’Investissement des Collectivités Territoriales), the public authority in charge of managing the Malian municipal support fund FNACT (Fonds National d’Appui aux Collectivités Territoriales). Through FNACT, local governments obtain governmental subventions according to an allocation formula based on performance criteria. These criteria have been established in a transparent manner and are outlined in ANICT’s Manual of Procedures.

Through FNACT, local governments obtain subventions for a) financing the establishment, Operation and Maintenance (O+M) of social, economic and cultural infrastructure; and b) implementing capacity building measures for locally elected representatives and municipal administrative personnel.

The project co-financed by KfW and the Malian government is based on three main areas of intervention:

1. Financing governmental subventions for investment through the FNACT: The intended results of this area of intervention is to ensure the continuity of financial support to local governments for implementing priority infrastructure as identified in the official development plans (PDESC). The resources provided (to the FNACT) by the government and donors are not bound to any specific geographical or sectoral targeting criteria.
2. Operation and Maintenance (O+M): This area of intervention aims at supporting local authorities in maintaining their infrastructure in order to ensure the sustainability of the investments. This includes developing a maintenance programme and financial support for its implementation.

Strategic support and technical assistance: This intervention area includes (i) financing a fund for studies and pilot interventions to be carried out by ANICT; (ii) technical assistance to ANICT for a) its institutional development; b) the implementation of studies and pilot actions to ensure sustainable operation and maintenance of infrastructure (axes no.1 and 2) and c) other fields relevant to local development and decentralization in Mali.