[Federal Register Volume 86, Number 110 (Thursday, June 10, 2021)]
[Notices]
[Pages 30988-30991]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12124]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 21-05]


Notice of First Amendment to Compact With the Republic of Ghana

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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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 Republic 
of Ghana. Representatives of the United States Government and the 
Government of Ghana plan to conclude the Amendment in June 2021.

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

    Dated: June 4, 2021.
Thomas G. Hohenthaner,
Acting VP/General Counsel and Corporate Secretary.

Summary of First Amendment to Millennium Challenge Compact With the 
Republic of Ghana

    The Board of Directors of the Millennium Challenge Corporation 
(``MCC'') has approved an amendment (the ``Amendment'') to the existing 
US$308.2 million, five-year Millennium Challenge Compact between the 
United States of America, acting through MCC, and the Republic of Ghana 
(the ``Compact'').

Background

    The Compact was signed August 5, 2014 and entered into force on 
September 6, 2016. The Compact aims to improve Ghana's power sector 
through investments that provide more reliable and affordable 
electricity to Ghana's businesses and households. Compact projects 
focus on improving the infrastructure in the country's southern 
electricity distribution network, advancing energy efficiency programs, 
increasing power reliability and access to key markets, and 
strengthening Ghana's electricity sector regulatory institutions. The 
investment strategy is based on an integrated loss management approach 
to reduce technical and commercial losses in the distribution system, 
reduce distribution system vulnerability, and reduce the frequency and 
duration of power outages.

Scope of the Amendment

    MCC proposes to extend the term of the Compact for an additional 
nine-months to June 6, 2022 and to provide additional funding up to 
$7,651,395. The term extension is necessary to mitigate implementation 
delays due to the COVID-19 pandemic and to complete infrastructure 
projects as originally contemplated. The proposed additional funding 
will be used to cover additional program administration and related 
oversight costs associated with extending the Compact's term.

Justification for the Amendment

    In late January 2020, MCC received the first reports from Ghana of 
COVID-19-related manufacturing delays from equipment suppliers. On 
March 12, 2020, the Government of Ghana confirmed its first two cases 
of COVID-19 and later announced measures to prevent and control the 
virus' spread. These included mandated social distancing, restrictions 
on foreign national entry to the country, border closures, and partial 
lockdowns across major cities, including the capital city of Accra, the 
location of major compact project sites. The impact of these measures 
was immediate and seriously affected the implementation timeline of 
compact activities.
    Measures to mitigate the spread of COVID-19 led to global supply 
chain disruptions and restrictions on the movement of technical 
experts, project

[[Page 30989]]

management staff, consultants, and contractors locally and 
internationally, thereby slowing procurements, the delivery of 
equipment and materials, factory testing and acceptance of key 
components, installation of equipment at project sites, and physical 
activity on project sites. In addition, temporary shutdowns of work 
sites, temporary government office closures, changes in priorities by 
government implementing entities, and COVID-19 infections among 
government staff and the consultants and contractors working on the 
projects have disrupted compact implementation.
    Extending the compact term will enable MCC and the Government of 
Ghana to complete and hand over all ongoing projects to the beneficiary 
institutions at the required quality, without compromising health, 
safety, and environmental standards, and will reduce sustainability 
risks through the necessary attention to testing, commissioning, 
training of utility operators and technicians, and additional oversight 
during the commencement of the defects notification periods associated 
with these projects. As COVID-19 has disrupted program activities and 
timelines, an extended compact term will maximize long-term results, 
benefits for the citizens of Ghana, and MCC's return on investment, and 
benefit the compact program as a whole. The additional MCC funding is 
necessary for and will be used to support oversight and other 
administrative functions during the additional nine months of the 
compact term.

First Amendment to Millennium Challenge Compact Between the United 
States of America, Acting Through the Millennium Challenge Corporation 
and the Republic of Ghana

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 Republic of Ghana, acting 
through its government (the ``Government'') (each referred to herein 
individually as a ``Party'' and collectively, as 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 Parties signed that certain Millennium Challenge 
Compact by and between the United States of America, acting through 
MCC, and the Republic of Ghana, on August 5, 2014 (as modified, the 
``Compact'');
    Whereas, Section 7.4 of the Compact provides for a Compact Term of 
five (5) years after its entry into force;
    Whereas, the Compact entered into force on September 6, 2016;
    Whereas, implementation of the compact program has been adversely 
affected and delayed by the coronavirus pandemic;
    Whereas, the Parties now desire to extend the Compact Term by an 
additional nine (9) months (the ``Extension''), and to increase 
assistance under the Compact for related administrative and oversight 
costs, to allow the Government more time to implement and complete the 
Projects in order to fully achieve the Compact Goal, Project Objectives 
and Program Objectives; and
    Whereas, pursuant to Section 6.2(a) of the Compact, the Parties 
desire to amend the Compact as more fully described herein to 
memorialize the Extension.
    Now, therefore, the Parties hereby agree as follows:

Amendments

    1. Amendment to Section 2.1.
    Section 2.1 (Program Funding) of the Compact is amended and 
restated to read as follows:
    ``Section 2.1 Program Funding. Upon 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 
Three Hundred One Million, Nine Hundred Seventy-Four Thousand, Forty-
Six United States Dollars (US$301,974,046) (``Program Funding'') for 
use by the Government to implement the Program. The allocation of 
Program Funding is generally described in Annex II.''
    2. Amendment to Section 2.2.
    Section 2.2(a) (Compact Implementation Funding) of the Compact is 
amended and restated to read as follows:
    ``(a) Upon the signing of this Compact, MCC will grant to the 
Government, under the terms of this Compact and in addition to the 
Program Funding described in Section 2.1, an amount not to exceed 
Thirteen Million Eight Hundred Seventy-Seven Thousand, Three Hundred 
Forty-Nine United States Dollars (US$13,877,349) (``Compact 
Implementation Funding'') 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 this Compact, including for 
the following purposes:
    (i) Financial management and procurement activities;
    (ii) administrative activities (including start-up costs such as 
staff salaries) and administrative support expenses such as rent, 
computers and other information technology or capital equipment;
    (iii) monitoring and evaluation activities;
    (iv) feasibility, design and other project preparatory studies; and
    (v) other activities to facilitate Compact implementation as 
approved by MCC.
    The allocation of Compact Implementation Funding is generally 
described in Annex II.''
    3. Amendment to Section 7.4.
    Section 7.4 (Compact Term) of the Compact is amended and restated 
to read as follows:
    ``Section 7.4 Compact Term. This Compact will remain in force for 
five (5) years and nine (9) months after its entry into force, unless 
terminated earlier under Section 5.1 (the ``Compact Term'').''
    4. Amendments to Annex II (Multi-Year Financial Plan Summary).
    (a) Section 2 of Annex II (Multi-Year Financial Plan Summary) to 
the Compact is amended and restated to read as follows:
    ``2. Government Contribution. During the Compact Term, the 
Government will make contributions, relative to its national budget and 
taking into account prevailing economic conditions, as are necessary to 
carry out the Government's responsibilities under Section 2.6(a) of 
this Compact. These contributions may include in-kind and financial 
contributions (including obligations of Ghana on any debt incurred 
toward meeting these contribution obligations). In connection with this 
obligation the Government has developed a budget over the Compact Term 
to complement MCC Funding through budget allocations to the Projects. 
The Government initially anticipates making contributions of 
approximately Twenty-Three Million, Six Hundred Eighty-Eight Thousand, 
Eight Hundred Fifty-Five United States Dollars (US$23,688,855 (or 7.5 
percent of the amount of MCC Funding provided under this Compact) over 
the Compact Term. Such contribution shall be in addition to the 
Government's spending allocated toward the Project Objectives in its 
budget for the year immediately

[[Page 30990]]

preceding the establishment of this Compact. The Government's 
contribution shall be subject to any legal requirements in Ghana for 
the budgeting and appropriation of such contribution, including 
approval of the Government's annual budget by its legislature. The 
Parties may set forth in the Program Implementation Agreement or other 
appropriate Supplemental Agreements certain requirements regarding this 
Government Contribution, which requirements may be conditions precedent 
to the Disbursement of MCC Funding. During implementation of the 
Program, the Government's contributions may be modified or new 
contributions added with MCC approval, provided that the modified or 
new contributions continue to advance the Project Objectives.''
    (b) Exhibit A to Annex II (Multi-Year Financial Plan Summary) to 
the Compact is deleted in its entirety and replaced by revised Exhibit 
A set forth in Annex I to this Amendment.

General Provisions

    1. Further Assurances.
    Each Party hereby covenants and agrees, without necessity of any 
further consideration, to execute and deliver any and all such further 
documents and take any and all such other action as may be reasonably 
necessary or appropriate to carry out the intent and purpose of this 
Amendment.
    2. Effect of this Amendment.
    From and after the date this Amendment enters into force, the 
Compact and this Amendment shall be read together and construed as one 
document, and each reference in the Compact to the ``Compact,'' 
``hereunder,'' ``hereof'' or words of like import referring to the 
Compact, and each reference to the ``Compact,'' ``thereunder,'' 
``thereof'' or words of like import in any Supplemental Agreement or in 
any other document or instrument delivered pursuant to the Compact or 
any Supplemental Agreement, shall mean and be construed as a reference 
to the Compact, as amended by this Amendment.
    3. Limitations.
    Except as expressly amended by this Amendment, all of the 
provisions of the Compact remain unchanged and in full force and 
effect.
    4. Governing Law.
    The Parties acknowledge and agree that this Amendment is an 
international agreement entered into for the purpose of amending the 
Compact and as such will be interpreted in a manner consistent with the 
Compact and is governed by international law.

Annex I: Revised Exhibit A to Annex II to the Compact Multi-Year 
Financial Plan Summary

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                                                                                     Proposed
                    Compact program tranche I                         Current     additional MCC   Revised MYFP
                                                                   approved MYFP    grant funds
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1. ECG Financial & Operational Turnaround Project-Tranche 1.....  ..............  ..............  ..............
1.1 Private Sector Participation................................       6,162,736  ..............       6,162,736
1.2 Modernizing ECG Operations..................................      31,186,058       3,076,668      34,262,726
1.3 Commercial Loss Reduction...................................      17,236,519  ..............      17,236,519
1.4 Technical Loss Reduction....................................     155,326,548         318,978     155,645,527
1.5 Outage Reduction............................................         354,406  ..............         354,406
                                                                 -----------------------------------------------
    Subtotal....................................................     210,266,267       3,395,646     213,661,914
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2. NEDCo Financial & Operational Turnaround Project.............  ..............  ..............  ..............
2.1 Private Sector Participation................................               0  ..............               0
2.2 Modernizing NEDCo Operations................................       1,175,475  ..............       1,175,475
2.3 Commercial Loss Reduction...................................               0  ..............               0
2.4 Technical Loss Reduction....................................               0  ..............               0
2.5 Outage Reduction............................................               0  ..............               0
2.6 Tamale Service Area Improvement.............................               0  ..............               0
2.7 Commercial Development......................................               0  ..............               0
                                                                 -----------------------------------------------
    Subtotal....................................................       1,175,475  ..............       1,175,475
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3. Regulatory Strengthening and Capacity Building Project.......  ..............  ..............  ..............
3.1 Sector Performance Monitoring Ca............................         797,672  ..............         797,672
3.2 Tariff Review & Regulation..................................       2,057,115  ..............       2,057,115
                                                                 -----------------------------------------------
    Subtotal....................................................       2,854,787  ..............       2,854,787
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4. Access Project...............................................  ..............  ..............  ..............
4.1 Improve Electricity Supply to MS............................          78,070  ..............          78,070
4.2 Improve Service Delivery/Strength...........................         821,930  ..............         821,930
                                                                 -----------------------------------------------
    Subtotal....................................................         900,000  ..............         900,000
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5. Power Sector Generation Improvement Project..................  ..............  ..............  ..............
5.1 Operationalize ``Gas to Power'' Plan........................               0  ..............               0
5.2 Facilitate LNG development..................................               0  ..............               0
5.3 Strengthen IPP framework....................................               0  ..............               0
                                                                 -----------------------------------------------
    Subtotal....................................................               0  ..............               0
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6. Energy Efficiency & Demand Side Management Project...........  ..............  ..............  ..............
6.1 Development and Enforcement of Standards....................       4,268,865  ..............       4,268,865
6.2 Improve Energy Auditing.....................................       3,900,000  ..............       3,900,000
6.3 Education and Public Information............................       1,755,000  ..............       1,755,000
6.4 Demand Side Management Infrastructure.......................      12,373,934  ..............      12,373,934
                                                                 -----------------------------------------------

[[Page 30991]]

 
    Subtotal....................................................      22,297,799  ..............      22,297,799
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7. Monitoring and Evaluation (M&E)..............................  ..............  ..............  ..............
7.1. Monitoring and Evaluation (M&E)............................       7,308,437  ..............       7,308,437
                                                                 -----------------------------------------------
    Subtotal....................................................       7,308,437  ..............       7,308,437
----------------------------------------------------------------------------------------------------------------
8. Program Administration and Oversight.........................  ..............  ..............  ..............
8.1 MiDA Administration.........................................      32,373,374       2,898,597      35,271,971
8.2 Fiscal & Procurement Agents.................................       9,763,852       1,345,902      11,109,754
8.3 Audit & Compliance..........................................         749,850          11,250         761,100
                                                                 -----------------------------------------------
    Subtotal....................................................      42,887,076       4,255,749      47,142,825
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9. ECG Financial and Operational Turnaround Project-Tranche 2...  ..............  ..............  ..............
9.1 Private Sector Participation................................               0  ..............               0
9.2 Modernizing ECG Operations..................................       2,120,755  ..............       2,120,755
9.3 Commercial Loss Reduction...................................               0  ..............               0
9.4 Technical Loss Reduction....................................       4,512,055  ..............       4,512,055
9.5 Outage Reduction............................................               0  ..............               0
                                                                 -----------------------------------------------
    Subtotal....................................................       6,632,810  ..............       6,632,810
----------------------------------------------------------------------------------------------------------------
TOTAL Program Funding...........................................     294,322,651       7,651,395     301,974,046
TOTAL Compact Implementation Funding............................      13,877,349  ..............      13,877,349
TOTAL MCC Funding...............................................     308,200,000       7,651,395     315,851,395
Total Government Contributions..................................      23,115,000         573,855      23,688,855
TOTAL COMPACT + GOVERNMENT CONTRIBUTION.........................     331,315,000       8,225,250     339,540,250
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[FR Doc. 2021-12124 Filed 6-9-21; 8:45 am]
BILLING CODE 9211-03-P