Federal Register / Vol. 90, No. 1 / Thursday, January 2, 2025 / Notices 117 

If additional information is required 

contact: Darwin Arceo, Department 

Clearance Officer, United States 

Department of Justice, Justice 

Management Division, Policy and 

Planning Staff, Two Constitution 

Square, 145 N Street NE, 4W–218, 

Washington, DC. 

Dated: December 26, 2024. 

Darwin Arceo, 

Department Clearance Officer for PRA, U.S. 

Department of Justice. 

[FR Doc. 2024–31455 Filed 12–31–24; 8:45 am] 

BILLING CODE 4410–FY–P 

MILLENNIUM CHALLENGE 

CORPORATION 

[MCC FR 24–13] 

Notice of First Amendment to Compact 

With the Federal Democratic Republic 

of Nepal 

AGENCY: Millennium Challenge 

Corporation. 

ACTION: Notice. 

SUMMARY: In accordance with the 

Millennium Challenge Act of 2003, as 

amended, the Millennium Challenge 

Corporation is publishing a summary, 

justification, and full text of the 

proposed First Amendment to 

Millennium Challenge Compact 

between the United States of America, 

acting through the Millennium 

Challenge Corporation, and the Federal 

Democratic Republic of Nepal. 

Representatives of the United States 

Government and the Government of the 

Federal Democratic Republic of Nepal 

plan to conclude the Amendment in 

January 2025. 

(Authority: 22 U.S.C. 7708(i)(2)) 

Dated: December 20, 2024. 

Peter E. Jaffe, 

Vice President, General Counsel, and 

Corporate Secretary. 

Summary of First Amendment to 

Millennium Challenge Compact With 

the Federal Democratic Republic of 

Nepal 

The Board of Directors of the 

Millennium Challenge Corporation 

(‘‘MCC’’) has approved an amendment 

(the ‘‘Amendment’’) to the existing $500 

million, five-year Millennium Challenge 

Compact between the United States of 

America, acting through MCC, and the 

Federal Democratic Republic of Nepal 

(the ‘‘Compact’’). 

Background 

The Compact was signed September 

14, 2017, and entered into force on 

August 30, 2023. The Compact aims to 

increase domestic electricity 

consumption through the Electricity 

Transmission Project by improving the 

availability and reliability of electricity 

in Nepal’s electricity grid, expanding 

and strengthening Nepal’s high voltage 

electricity transmission network to 

support new investments in generation 

that unlock Nepal’s hydropower 

potential, and facilitating increased 

power trade between India and Nepal. 

The Compact also aims to maintain road 

quality across Nepal’s strategic road 

network through the Road Maintenance 

Project. 

Scope of the Amendment 

MCC proposes to provide additional 

funding up to $50 million under the 

Compact. The proposed additional 

funding will be used to cover additional 

costs associated with the Compact’s 

Electricity Transmission Project, thus 

enabling successful implementation of 

the project. 

Justification for the Amendment 

The Compact was signed in 

September 2017 but did not enter into 

force until August 2023. The protracted 

delay between signing and entry into 

force, as well as the global inflationary 

pressures of the COVID–19 pandemic, 

resulted in an increase in costs for the 

Electricity Transmission Project. 

Further, procurement for construction of 

the project’s electricity transmission 

line was not initiated until September 

2023 and the bids received reflected 

costs that were substantially higher than 

the original cost estimate, resulting in a 

failed procurement. Despite identifying 

significant potential reductions of cost 

drivers for a re-procurement of the 

transmission line work, MCC anticipates 

that the cost of the transmission line 

work will continue to exceed the 

projected compact budget. 

Providing additional assistance under 

the Compact to support the Electricity 

Transmission Project will enable 

successful implementation of the 

Compact’s objectives with respect to 

electricity reform. Specifically, the 

additional MCC funding is necessary for 

and will enable the accountable entity 

to sign contracts for the transmission 

line work once re-procurement is 

complete in a timely manner and 

maximize the remaining 

implementation period without further 

delays. The additional funding will also 

preserve adequate contingency across 

the Compact to facilitate operational 

adjustments that may become necessary 

during construction. The economic rate 

of return for the Electricity 

Transmission Project remains above 10 

percent, which indicates that, even with 

cost escalations, this remains a highly 

viable and impactful project. Therefore, 

additional MCC funding for this 

Compact would constitute a high return 

investment. 

First Amendment to Millennium 

Challenge Compact Between the United 

States of America Acting Through the 

Millennium Challenge Corporation and 

the Federal Democratic Republic of 

Nepal Acting Through the Ministry of 

Finance 

First Amendment to Millennium 

Challenge Compact 

This First Amendment to Millennium 

Challenge Compact (this 

‘‘Amendment’’), is made by and 

between the United States of America, 

acting through the Millennium 

Challenge Corporation, a United States 

government corporation (‘‘MCC’’), and 

the Federal Democratic Republic of 

Nepal (‘‘Nepal’’), acting through the 

Ministry of Finance (the ‘‘Government’’) 

(individually, a ‘‘Party’’ and 

collectively, the ‘‘Parties’’). All 

capitalized terms used in this 

Amendment that are not otherwise 

defined herein have the meanings given 

to such terms in the Compact (as 

defined below). 

Recitals 

Whereas, the United States of 

America and Nepal signed the 

Millennium Challenge Compact 

between the United States of America, 

acting through the Millennium 

Challenge Corporation, and the Federal 

Democratic Republic of Nepal, acting 

through the Ministry of Finance, on 

September 14, 2017 (as modified, the 

‘‘Compact’’); 

Whereas, Section 2.1 of the Compact 

provides for MCC to grant to the 

Government, under the terms of the 

Compact, an amount not to exceed Four 

Hundred Fifty-Nine Million Five 

Hundred Thousand United States 

Dollars (US$459,500,000) (‘‘Program 

Funding’’) for use by the Government to 

implement the Program; 

Whereas, Section 2.2 of the Compact 

further provides for MCC to grant to the 

Government, under the terms of the 

Compact and in addition to the Program 

Funding described in Section 2.1 of the 

Compact, an amount not to exceed Forty 

Million Five Hundred Thousand United 

States Dollars (US$40,500,000) 

(‘‘Compact CDF’’) under Section 609(g) 

of the Millennium Challenge Act of 

2003, as amended (the ‘‘MCA Act’’), for 

use by the Government to facilitate 

implementation of the Compact; 


ddrumheller on DSK120RN23PROD with NOTICES1
118 Federal Register / Vol. 90, No. 1 / Thursday, January 2, 2025 / Notices 

Whereas, in accordance with Section 

2.2(e) of the Compact, MCC notified the 

Government on June 28, 2024, that the 

Excess Compact CDF Amount of 

US$16,477,559.41 has been reallocated 

to Program Funding, thereby increasing 

the total amount of Program Funding to 

475,977,559.41; 

Whereas, the Program involves a 

project to increase electricity 

consumption by facilitating power trade 

and by improving the availability and 

reliability of electricity supply in 

Nepal’s electricity grid (‘‘the Electricity 

Transmission Project’’ or ‘‘ETP’’); 

Whereas, the cost to complete the 

Electricity Transmission Project is now 

estimated to exceed the associated 

budget for the project; and 

Whereas, pursuant to Section 6.2(a) of 

the Compact, the Parties desire to 

amend the Compact to increase Program 

Funding by 50,000,000, 

Now, therefore, the Parties hereby 

agree as follows: 

Article 1 

Amendments 

Amendment to Section 2.1 of the 

Compact 

Section 2.1 (Program Funding) of the 

Compact is amended and restated to 

read as follows: 

‘‘Section 2.1 Program Funding. 

Following entry into force of this 

Compact in accordance with Section 

7.3, MCC will grant to the Government, 

under the terms of this Compact, an 

amount not to exceed 525,977,559.41 

(‘‘Program Funding’’) for use by the 

Government to implement the Program. 

The allocation of Program Funding is 

generally described in Annex II.’’ 

Amendments to Exhibit A to Annex II 

to the Compact 

Exhibit A to Annex II to the Compact 

(Multi-Year Financial Plan Summary) is 

deleted in its entirety and replaced by 

the revised Exhibit A as set forth in 

Annex I to this Amendment. 

Article 2 

General Provisions 

2.1 Entry Into Force of This 

Amendment 

This Amendment shall enter into 

force on the date of the last signature of 

the Parties. Nepal represents that the 

Council of Ministers of the Government 

of Nepal has approved Nepal’s signature 

of this Amendment. 

2.2 Scope of This Amendment 

Except as expressly amended by this 

Amendment, all of the provisions of the 

Compact remain unchanged and in full 

force and effect. 

Done in [duplicate] in the English 

language. 

For the United States of America For the Federal Democratic Republic of Nepal 

[name] ....................................................................................................... [name] 

[title] .......................................................................................................... [title] 

Date: ......................................................................................................... Date: 

Place: ........................................................................................................ Place: 

Annex I 

Exhibit A to Annex II 

Multi-Year Financial Plan Summary 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 90, No. 1 / Thursday, January 2, 2025 / Notices 119 

[FR Doc. 2024–31066 Filed 12–31–24; 8:45 am] 

BILLING CODE 9211–03–P 


ddrumheller on DSK120RN23PROD with NOTICES1EN02JA25.001</GPH>

(a) 

Transmission 99,708 64,340,9 41,235,0 51,235,0 75,320,00 60,604,6 284,521, 

Lines 35 00 00 0 43 643 

Activity 

(b) 19,712,0 22,122,0 22,122,0 15,113,43 17,895,0 99,014,4 Substations 40,370 

Activity 00 00 00 5 00 35 

(c) Power 

Sector 6,398,00 2,890,00 2,886,00 2,263,14 17,072,1 Technical 10,218 2,200,000 

Assistance 0 0 0 9 49 

Activity 

(d) Program 

Management 

and 10,408.7 12,121,5 6,207,00 6,207,00 7,207,000 6,529,25 48,680,2 

Technical 12 84 0 0 8 58 

Oversight 

Activity 

Subtotal 10,558,7 102,572, 73,618,0 72,450,0 96,371,93 93,717,3 449,288, 

12 519 00 00 1 23 485 

(a) Technical 3,688,10 1,227,00 1,142,00 7,045,00 Assistance 786,900 165,000 36,000 

Activity 0 0 0 0 

(b) Strategic 

Road 1,045,61 3,507,38 11,645,0 16,011,0 13,031,00 45,240,0 Maintenance 6 4 00 00 0 00 Works 0.00 

Activity 

Subtotal 1,832,51 7,195,48 12,872,0 17,153,0 13,196,00 36,000 52,285,0 

5 4 00 00 0 00