Institutional Strengthening Activity Burkina Faso II - Power Sector Reform Project - Institutional Strengthening Activity: This activity was used in the past for accounting purposes but it is not currently an active activity for the program. It has no funds either committed or disbursed against it. The activity had two sub-activities:

1) Strategic and Institutional Framework Development Sub-Activity which will: strengthen the strategic direction and structural framework for Burkina Faso's power sector, including a plan for the possible reorganization of the Ministry of Energy, and creation of dedicated institutional capacity and coordination mechanism for IPP project development, such as an IPP unit within the Ministry of Energy; Monitoring and Evaluation component among sector institutions; development of an optimized framework for sector planning, and definition of the required institutional coordination; development of strategic national electrification and energy efficiency plans; and assistance to the Ministry of Energy and Mines and related electricity-related agencies and utilities (e.g. SONABEL, ABER, ARSE, ANEREE) to draft, adopt, and incorporate into everyday practice a comprehensive Environmental, Gender and Inclusion Charter detailing high level commitments.

2) Strengthening of the Regulatory Framework Sub-Activity which will: technical assistance to support the implementation of key regulatory reforms; modification of existing and/or creation of new decrees (secondary legislation) that cover the mandates and authorities of sector institutions, including the Ministry of Energy, the regulatory authority for the energy sector (ARSE), the utility (SONABEL), and the rural electrification agency (ABER); develop a model concession contract, to be adopted for the nearly 200 rural electricity cooperatives (COOPELs) currently in operation throughout the country; encourage private sector investment in off-grid service delivery, a regulatory framework for mini-grids will be further developed, introducing more flexibility compared to the current framework; foster regional integration and effective cross-border power trade; and provision of technical assistance to harmonize Burkina Faso's policies and standards with those of the West African Power Pool (WAPP).

On January 31, 2022 MCC paused activity related to the Burkina Faso Compact II following the military's actions against the elected government on January 23, 2022. These actions contradict MCC's commitment to democratic governance and upholding the rule of law�principles that underpin MCC's rigorous selection criteria. MCC again called on all parties to pursue a democratic solution while ensuring the safety and security of all Burkinabes. On March 31, 2022 the MCC Board of Directors voted to suspend MCC's assistance to Burkina Faso and its eligibility for a concurrent regional compact as a result of the country's coup d'�tat. These events run counter to MCC's commitment to democratic governance and upholding rule of law. All MCC partner countries are expected to demonstrate an ongoing commitment to these principles to remain eligible for MCC investments. On September 28, 2022, the MCC Board voted to terminate MCC's assistance to Burkina Faso and the country's eligibility for a regional compact. This decision was made in response to the January 2022 coup d'�tat, which is inconsistent with MCC's statutorily mandated eligibility criteria, and the July 2022 announcement by the transition authorities of a prolonged period before elections. In making this difficult decision, MCC's Board noted its strong interest in partnering with the Burkinabe people once a democratically-elected government takes office.