[Federal Register Volume 83, Number 244 (Thursday, December 20, 2018)]
[Notices]
[Pages 65366-65367]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27570]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 18-15]


Notice of Entering Into a Compact With the Senegal

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: In accordance with Section 610(b)(3) of the Millennium 
Challenge Act of 2003, as amended, and the heading ``Millennium 
Challenge Corporation'' of the Department of State, Foreign Operations, 
and Related Programs Appropriations Act, 2018, as carried forward by 
the Continuing Appropriations Act, 2019, the Millennium Challenge 
Corporation (MCC) is publishing a summary of the Millennium Challenge 
Compact between the United States of America, acting through MCC, and 
the Republic of Senegal, acting through the Ministry of Economy, 
Finance and Planning. Representatives of MCC and Senegal signed the 
compact on December 10, 2018. The complete text of the compact has been 
posted at: https://www.mcc.gov/resourcesdoc/compact-senegal-power.

    Dated: December 17, 2018.
Jeanne M. Hauch,
VP/General Counsel and Corporate Secretary.

Summary of Senegal Compact

Overview of MCC Senegal Compact

    MCC's five-year, $550,000,000 Compact with the Government of 
Senegal (the ``Government'') is aimed at addressing one of Senegal's 
main binding constraints to economic growth: The high cost of energy 
and low access to electricity. The Compact will address these 
constraints through three primary projects: (i) Improving the 
transmission network to meet the growing demand on the interconnected 
network in Senegal, (ii) increasing electricity access in rural and 
peri-urban areas of the south and central regions, and (iii) improving 
the overall governance and financial viability of the sector.
    Senegal is an important partner of the United States in promoting 
peace and security in Africa. The country shares many fundamental 
values and international goals with the United States, and it has set 
an example of democratic rule in the region as well as of ethnic and 
religious tolerance. It is a stable democracy in a challenging West 
Africa region, a strong security partner, and a rising economy that is 
attracting global investment. MCC's singular focus on growth and 
poverty reduction--along with its ability to combine major 
infrastructure works with policy change--allows the agency and the 
Compact to play a key role in catalyzing transformation in Senegal.

Project Summaries

    The Compact is comprised of three projects designed to secure 
quality electricity supply for growing demand in Senegal and address 
binding constraints to growth.
    <bullet> The Modernizing and Strengthening Senelec's Transmission 
Network Project aims to strengthen and increase the reliability of 
Senegal's high-voltage transmission network in and around greater Dakar 
and improve electricity service delivery throughout the country. This 
support for a robust transmission network is needed for Senegal to 
effectively capitalize on private sector-led investment in generation 
and to ensure that electricity is delivered reliably to consumers. This 
is particularly important since much of the private sector interest is 
in new, lower-cost generation projects including wind, solar, and 
natural gas that rely heavily upon a reliable, stable transmission 
network.
    <bullet> The Increasing Access to Electricity in Rural and Peri-
Urban Areas Project aims to extend the electrical grid in selected 
areas in Senegal's south and center regions that have high economic 
potential but low connection rates. Through a blend of supply-side and 
demand-side interventions, this project also aims to increase rates of 
adoption and consumption of electricity, facilitate opportunities for 
income-generating activities in these regions, and improve the 
understanding of energy efficiency at a national level. This project 
offers several opportunities for collaboration with related United 
States Government initiatives, including Feed the Future and Power 
Africa, and with other donors that are providing complementary support 
to agricultural value chains in MCC's areas of assistance, thereby 
increasing the potential value of the MCC assistance.
    <bullet> The Power Sector Enabling Environment and Capacity 
Development Project aims to strengthen laws, policies and regulations 
governing the electricity sector, as well as the institutions 
responsible for implementing them, especially the utility, the 
regulator, and the ministry responsible for energy. In particular, the 
project aims to support improved management of the transmission network 
and increased access to electricity, reinforcing the foundations for 
the provision of a less costly and more reliable supply of electricity 
nationwide. The project builds on a participatory electricity sector 
planning process that MCC funded during compact development to help the 
Government articulate and select an appropriate long-term vision for 
the sector that favors more private sector participation and enhances 
the financial sustainability of the sector and its key stakeholders.

Compact Budget

    Table I presents the Compact budget and sets forth both the MCC 
funding allocation by Compact components and the Government's expected 
$50 million contribution toward the objectives of the Compact.

                     Table 1--Senegal Compact Budget
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                        Component                             Amount
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 1. Modernizing and Strengthening Senelec's Transmission Network Project
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1.1 Transmission Network Build Out Activity.............    $327,900,000
1.2 Transformer Replacement Program Activity............     $26,000,000
1.3 Grid Stabilization Activity.........................     $22,900,000
                                                         ---------------
    Subtotal............................................    $376,800,000
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    2. Increasing Access to Electricity in Rural and Peri-Urban Areas
                                 Project
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2.1 Supply-Side Activity................................     $33,000,000
2.2 Consumer Demand Support Activity....................     $13,400,000
2.3 Distribution Network Reinforcement Activity.........     $10,900,000
                                                         ---------------
    Subtotal............................................     $57,300,000
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  3. Power Sector Enabling Environment and Capacity Development Project
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3.1 Sector Governance Activity..........................     $14,000,000
3.2 Regulatory Strengthening Activity...................     $11,900,000
3.3 Utility Strengthening Activity......................     $17,600,000
                                                         ---------------
    Subtotal............................................     $43,500,000
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4. Monitoring and Evaluation............................     $11,800,000
5. Program Administration and Oversight.................     $60,600,000
    Total MCC Funding...................................    $550,000,000
    Total Program Budget................................          Amount
        Total MCC Funding...............................    $550,000,000
        Total Government Contribution...................     $50,000,000
                                                         ---------------
    Total Program Budget................................    $600,000,000
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[FR Doc. 2018-27570 Filed 12-19-18; 8:45 am]
 BILLING CODE 9211-03-P