[Federal Register Volume 70, Number 150 (Friday, August 5, 2005)]
[Notices]
[Pages 45442-45444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-15496]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 05-15]


Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility in Fiscal Year 2006 and Countries That Would Be 
Candidates but for Legal Prohibitions

AGENCY: Millennium Challenge Corporation (MCC).
SUMMARY: Section 608(d) of the Millennium Challenge Act of 2003 
requires the Millennium Challenge Corporation to publish a report that 
identifies countries that are ``candidate countries'' for Millennium 
Challenge Account assistance during FY 2006. The report is set forth in 
full below.

Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility in Fiscal Year 2006 and Countries That Would Be 
Candidates but for Legal Prohibitions

    Summary: This report to Congress is provided in accordance with 
Section 608(a) of the Millennium Challenge Act of 2003, 22 U.S.C.A. 
7701, 7707(a) (``Act''). The Act authorizes the provision of Millennium 
Challenge Account (MCA) assistance to countries that enter into 
Compacts with the United States to support policies and programs that 
advance the prospects of such countries achieving lasting economic 
growth and poverty reduction. The Act requires Millennium Challenge 
Corporation (MCC) to take a number of steps in determining the 
countries that, based on their demonstrated commitment to just and 
democratic governance, economic freedom and investing in their people, 
will be eligible for MCA assistance during Fiscal Year (FY) 2006. These 
steps include the submission of reports to the congressional committees 
specified in the Act and the publication of notices in the Federal 
Register that identify:
    1. The countries that are ``candidate countries'' for MCA 
assistance during FY 2006 based on their per-capita income levels and 
their eligibility to receive assistance under U.S. law and countries 
that would be candidate countries but for legal prohibitions on 
assistance (Section 608(a) of the Act);
    2. The criteria and methodology that the MCC Board of Directors 
(``Board'') will use to measure and evaluate the relative policy 
performance of the ``candidate countries'' consistent with the 
requirements of Section 607 of the Act in order to select ``MCA 
eligible countries'' from among the ``candidate

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countries'' (Section 608(b) of the Act); and
    3. The list of countries determined by the Board to be ``MCA 
eligible countries'' for FY 2006, including which of the MCA eligible 
countries the Board will seek to enter into MCA Compacts (Section 
608(d) of the Act).
    This report is the first of three required reports listed above.

Candidate Countries for FY 2006

    The Act requires the identification of all countries that are 
candidates for MCA assistance in FY 2006 and the identification of all 
countries that would be candidate countries but for legal prohibitions 
on assistance. Sections 606(a) and (b) of the Act provide that during 
FY 2006 a country shall be a candidate for the MCA if it:
     Meets one of the following two income level tests:
    [cir] Has a per capita income equal to or less than the historical 
ceiling of the International Development Association eligibility for 
the fiscal year involved (or $1,575 gross national income (GNI) per 
capita for FY 2006) (the ``Low Income Category''); or
    [cir] Is classified as a lower middle income country in the then 
most recent edition of the World Development Report for Reconstruction 
and Development published by the International Bank and has an income 
greater than the historical ceiling for International Development 
Association eligibility for the fiscal year involved (or $1,575 to 
$3,255 GNI per capita for FY 2006) (the ``Lower Middle Income 
Category''); and
     Is not subject to legal provisions that prohibit it from 
receiving U.S. economic assistance under Part I of the Foreign 
Assistance Act of 1961, as amended, or any other provision of law.
    Pursuant to Section 606(c) of the Act, the Board has identified the 
following countries as candidate countries under the Act for FY 2006. 
In so doing, the Board has anticipated that prohibitions against 
assistance that applied to countries during FY 2005 will again apply 
during FY 2006, even though the Foreign Operations, Export Financing 
and Related Appropriations Act for FY 2006 has not yet been enacted and 
certain findings under other statutes have not yet been made. As noted 
below, MCC will provide any required updates on subsequent changes in 
applicable legislation or other circumstances that would affect the 
status of countries as candidate countries for FY 2006.

Low Income Category

    1. Afghanistan
    2. Angola
    3. Armenia
    4. Azerbaijan
    5. Bangladesh
    6. Benin
    7. Bhutan
    8. Bolivia
    9. Burkina Faso
    10. Cameroon
    11. Chad
    12. China
    13. Comoros
    14. Congo, Democratic Republic of the
    15. Congo, Republic of the
    16. Djibouti
    17. East Timor
    18. Egypt
    19. Eritrea
    20. Ethiopia
    21. Gambia
    22. Georgia
    23. Ghana
    24. Guinea
    25. Guinea-Bissau
    26. Guyana
    27. Haiti
    28. Honduras
    29. India
    30. Indonesia
    31. Iraq
    32. Kenya
    33. Kiribati
    34. Kyrgyzstan
    35. Laos
    36. Lesotho
    37. Liberia
    38. Madagascar
    39. Malawi
    40. Mali
    41. Mauritania
    42. Moldova
    43. Mongolia
    44. Morocco
    45. Mozambique
    46. Nepal
    47. Nicaragua
    48. Niger
    49. Nigeria
    50. Pakistan
    51. Papua New Guinea
    52. Paraguay
    53. Philippines
    54. Rwanda
    55. Sao Tome and Principe
    56. Senegal
    57. Sierra Leone
    58. Solomon Islands
    59. Sri Lanka
    60. Tajikistan
    61. Tanzania
    62. Togo
    63. Turkmenistan
    64. Uganda
    65. Ukraine
    66. Vanuatu
    67. Vietnam
    68. Yemen
    69. Zambia

Lower Middle Income Category

    1. Albania
    2. Algeria
    3. Belarus
    4. Brazil
    5. Bulgaria
    6. Cape Verde
    7. Colombia
    8. Dominican Republic
    9. Ecuador
    10. El Salvador
    11. Fiji Islands
    12. Guatemala
    13. Jamaica
    14. Jordan
    15. Kazakhstan
    16. Macedonia
    17. Maldives
    18. Marshall Islands
    19. Micronesia, Federated States of 20. Namibia
    21. Peru
    22. Romania
    23. Samoa
    24. Suriname
    25. Swaziland
    26. Thailand
    27. Tonga
    28. Tunisia
    29. Tuvalu

Countries That Would Be Candidate Countries but for Statutory 
Provisions That Prohibit Assistance

    Countries that would be considered candidate countries during FY 
2006, but are subject to legal provisions that prohibit them from 
receiving U.S. economic assistance under part I of the Foreign 
Assistance Act of 1961, as amended (``Foreign Assistance Act''), or any 
other provision of law are listed below. As noted above, this list is 
based on legal prohibitions against economic assistance that apply 
during FY 2005 and that are anticipated to apply again during FY 2006.
    1. Bosnia and Herzegovina is subject to Section 561 of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
2005 (``FY 2005 Appropriations Act''), which prohibits assistance to 
any country whose competent authorities have failed, as determined by 
the Secretary of State, to take necessary and significant steps to 
implement its international legal obligations with respect to the 
International Criminal Tribunal for the former Yugoslavia.
    2. Burma is subject to Section 570 of the FY 1997 Foreign 
Operations Act which prohibits assistance to the government with 
certain narrow exceptions. In addition, Burma has been identified as a 
major drug-transit or major illicit drug producing country for 2005 
(Presidential Determination No.2004-47, 9/28/04) and designated as 
having ``failed demonstrably'' to adhere to its international 
obligations and take the measures required by Section 489(a)(1) of the 
Foreign Assistance Act, thus making Burma ineligible for assistance. 
Burma is listed as a Tier III country under the Trafficking Victims 
Protection Act for not complying with minimum standards for eliminating

[[Page 45444]]

trafficking and not making significant efforts to comply (Presidential 
Determination No. 2004-46, 9/10/04).
    3. Burundi is subject to Section 508 of the FY 2005 Appropriations 
Act which prohibits assistance to the government of a country whose 
duly elected head of government is deposed by decree or military coup.
    4. Section 554(b) of the FY 2005 Appropriations Act prohibits 
assistance to the central Government of Cambodia, except in specified 
circumstances.
    5. The Central African Republic is subject to Section 508 of the FY 
2005 Appropriations Act which prohibits assistance to the government of 
a country whose duly elected head of government is deposed by decree or 
military coup.
    6. The Cote d'Ivoire is subject to Section 508 of the FY 2005 
Appropriations Act which prohibits assistance to the government of a 
country whose duly elected head of government is deposed by decree or 
military coup.
    7. Section 507 of the FY 2005 Appropriations Act prohibits direct 
assistance to Cuba. The Cuban Liberty and Democratic Solidarity Act of 
1996 (Pub. L. 104-114) requires the President to take all necessary 
steps to ensure that no funds or other assistance is provided to the 
Cuban government. Cuba is also subject to Section 620A of the Foreign 
Assistance Act.
    8. Section 507 of the FY 2005 Appropriations Act prohibits direct 
assistance to Iran. Iran is also subject to Section 620A of the Foreign 
Assistance Act.
    9. Section 507 of the FY 2005 Appropriations Act prohibits direct 
assistance to North Korea. North Korea is also subject to Section 620A 
of the Foreign Assistance Act.
    10. Serbia and Montenegro is subject to Section 561of the FY 2005 
Appropriations Act which prohibits assistance to any country whose 
competent authorities have failed, as determined by the Secretary of 
State, to take necessary and significant steps to implement its 
international legal obligations with respect to the International 
Criminal Tribunal for the former Yugoslavia.
    11. Somalia is subject to Section 620(q) of the Foreign Assistance 
Act and Section 512 of the FY 2005 Appropriations Act which prohibit 
assistance to countries in default in payment to the U.S. in certain 
circumstances.
    12. Sudan is subject to Section 620(q) of the Foreign Assistance 
Act and Section 512 of the FY 2005 Appropriations Act which prohibit 
assistance to countries in default in payment to the U.S. in certain 
circumstances. Sudan also is subject to Section 508 of the FY 2005 
Appropriations Act and Section 620A of the Foreign Assistance Act. 
Sudan is also prohibited from receiving assistance under the 
Trafficking Victims Protection Act for not complying with minimum 
standards for eliminating trafficking and not making significant 
efforts to comply (Presidential Determination No. 2004-46, 9/10/04).
    13. Section 507 of the FY 2005 Appropriations Act prohibits direct 
assistance to Syria. Syria is also subject to Section 620A of the 
Foreign Assistance Act.
    14. Section 577 of the FY 2005 Appropriations Act requires that 
funds appropriated for assistance to the central Government of 
Uzbekistan may be made available only if the Secretary of State 
determines and reports to the Congress that the government is making 
substantial and continuing progress in meeting its commitments under a 
framework agreement with the U.S.
    15. Zimbabwe is subject to Section 620(q) of the Foreign Assistance 
Act and Section 512 of the FY 2005 Appropriations Act which prohibit 
assistance to countries in default in payment to the U.S. in certain 
circumstances.
    Countries identified above as candidate countries, as well as 
countries that would be considered candidate countries but for the 
applicability of legal provisions that prohibit U.S. economic 
assistance, may be the subject of future statutory restrictions or 
determinations, or changed country circumstances, that affect their 
legal eligibility for assistance under part I of the Foreign Assistance 
Act or any other provision of law during FY 2006. MCC will include any 
required updates on such statutory eligibility that affect countries' 
identification as candidate countries for FY 2006, at such time as it 
publishes the Notices required by Sections 608(b) and 608(d) of the Act 
or at other appropriate times. Any such updates with regard to the 
legal eligibility or ineligibility of particular countries identified 
in this report will not affect the date on which the Board is 
authorized to determine eligible countries from among candidate 
countries which, in accordance with Section 608(a) of the Act, shall be 
no sooner than 90 days from the date of publication of this report.

    Dated: August 1, 2005.
Jon A. Dyck,
Vice President & General Counsel, Millennium Challenge Corporation.
[FR Doc. 05-15496 Filed 8-4-05; 8:45 am]
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