[Federal Register Volume 71, Number 207 (Thursday, October 26, 2006)]
[Notices]
[Pages 62624-62626]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-17914]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 06-16]


Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility in Fiscal Year 2007 and Countries That Would Be 
Candidates but for Legal Prohibitions--Update

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: MCC is providing an update to the report originally submitted 
on August 11, 2006 to reflect a change in the statutory eligibility 
status of candidate countries.

Report on Countries That Are Candidates for Millennium Challenge 
Account Eligibility for Fiscal Year 2007 and Countries That Would Be 
Candidates but for Legal Prohibitions--Update

    MCC is providing an update to the report originally submitted on 
August 11, 2006 to reflect a change in the statutory eligibility status 
of candidate countries. This report to Congress is provided in 
accordance with section 608(a) of the Millennium Challenge Act of 2003, 
22 U.S.C. 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 
progress of such countries toward achieving lasting economic growth and 
poverty reduction. The Act requires the Millennium Challenge 
Corporation (``MCC'') to take a number of steps in determining the 
countries that will be eligible for MCA assistance for fiscal

[[Page 62625]]

year (FY) 2007, based on their demonstrated commitment to just and 
democratic governance, economic freedom and investing in their people 
and the opportunity to reduce poverty and generate economic growth in 
the country. 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 for FY 2007 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 specified 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 subsections (a) and (b) of section 607 of the Act in 
order to select ``MCA eligible countries'' from among the ``candidate 
countries'' (section 608(b) of the Act); and
    3. The list of countries determined by the Board to be ``MCA 
eligible countries'' for FY 2007, with a justification for such 
eligibility determination and selection for compact negotiation, 
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 2007

    The Act requires the identification of all countries that are 
candidates for MCA assistance for FY 2007 and the identification of all 
countries that would be candidate countries but for specified legal 
prohibitions on assistance. Sections 606(a) and (b) of the Act provide 
that for FY 2007 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 $1,675 gross national income (GNI) per 
capita for FY 2007) (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 for Reconstruction 
and Development and has an income greater than the historical ceiling 
for International Development Association eligibility for the fiscal 
year involved (or $1,676 to $3,465 GNI per capita for FY 2007) (the 
``lower middle income category''); and
     Is not ineligible to receive U.S. economic assistance 
under part I of the Foreign Assistance Act of 1961, as amended, 
(``Foreign Assistance Act''), by reason of the application of the 
Foreign Assistance Act 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 2007. 
In so doing, the Board has anticipated that prohibitions against 
assistance as applied to countries in the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 2006 (Pub. L. 109-
102) (FY 2006 FOAA) will again apply for FY 2007, even though the 
Foreign Operations, Export Financing and Related Programs 
Appropriations Act for FY 2007 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 affects the status 
of any country as a candidate country for FY 2007.

Candidate Countries: Low Income Category

1. Afghanistan
2. Angola
3. Armenia
4. Azerbaijan
5. Bangladesh
6. Benin
7. Bhutan
8. Bolivia
9. Burkina Faso
10. Burundi
11. Cameroon
12. Central African Republic
13. Chad
14. Comoros
15. Congo, Democratic Republic of the
16. Congo, Republic of the
17. Djibouti
18. East Timor
19. Egypt
20. Eritrea
21. Ethiopia
22. Gambia, The
23. Georgia
24. Ghana
25. Guinea
26. Guinea-Bissau
27. Guyana
28. Haiti
29. Honduras
30. India
31. Indonesia
32. Iraq
33. Kenya
34. Kiribati
35. Kyrgyzstan
36. Laos
37. Lesotho
38. Liberia
39. Madagascar
40. Malawi
41. Mali
42. Mauritania
43. Moldova
44. Mongolia
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

Candidate Countries: 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. Montenegro
21. Morocco
22. Namibia
23. Peru
24. Samoa
25. Suriname
26. Swaziland
27. Tonga
28. Tunisia
29. Tuvalu

[[Page 62626]]

Countries That Would Be Candidate Countries but for Legal Prohibitions 
That Prohibit Assistance

    Countries that would be considered candidate countries for FY 2007, 
but are ineligible to receive United States economic assistance under 
part I of the Foreign Assistance Act by reason of the application of 
any provision of the 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 for FY 2006 and 
that are anticipated to apply again for FY 2007.

Prohibited Countries: Low Income Category

    1. Burma is subject to numerous restrictions, including but not 
limited to section 570 of the FY 1997 Foreign Operations, Export 
Financing, and Related Programs Appropriations Act (Pub. L. 104-208) 
which prohibits assistance to the government of Burma until it makes 
progress on improving human rights and implementing democratic 
government, and due to its status as a major drug-transit or major 
illicit drug producing country for 2005 (Presidential Determination No. 
2005-36 (9/15/2005)) and a Tier III country under the Trafficking 
Victims Protection Act (Presidential Determination No. 2005-37 (9/21/
2005)).
    2. Cambodia's central government is subject to section 554 of the 
FY 2006 FOAA.
    3. The Cote d'Ivoire is subject to section 508 of the FY 2006 FOAA 
which prohibits assistance to the government of a country whose duly 
elected head of government is deposed by decree or military coup.
    4. Cuba is subject to numerous restrictions, including but not 
limited to section 620A of the Foreign Assistance Act which prohibits 
assistance to governments supporting international terrorism, 
provisions of the Cuban Liberty and Democratic Solidarity Act of 1996 
(Pub. L. 104-114), and section 507 of the FY 2006 FOAA.
    5. North Korea is subject to numerous restrictions, including but 
not limited to section 620A of the Foreign Assistance Act which 
prohibits assistance to governments supporting international terrorism 
and section 507 of the FY 2006 FOAA.
    6. Somalia is subject to section 620(q) of the Foreign Assistance 
Act and section 512 of the FY 2006 FOAA, which prohibit assistance to 
countries in default in payment to the U.S. in certain circumstances.
    7. Sudan is subject to numerous restrictions, including but not 
limited to section 620A of the Foreign Assistance Act which prohibits 
assistance to governments supporting international terrorism, section 
512 of the FY 2006 FOAA and section 620(q) of the Foreign Assistance 
Act which prohibit assistance to countries in default in payment to the 
U.S. in certain circumstances, section 508 of the FY 2006 FOAA which 
prohibits assistance to a country whose duly elected head of government 
is deposed by military coup or decree, and section 569 of the FY 2006 
FOAA.
    8. Syria is subject to numerous restrictions, including but not 
limited to section 620A of the Foreign Assistance Act which prohibits 
assistance to governments supporting international terrorism, section 
507 of the FY 2006 FOAA, and section 512 of the FY 2006 FOAA and 
section 620(q) of the Foreign Assistance Act which prohibit assistance 
to countries in default in payment to the U.S. in certain 
circumstances.
    9. Uzbekistan's central government is subject to section 586 of the 
FY 2006 FOAA, which 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 United States.
    10. Zimbabwe is subject to section 620(q) of the Foreign Assistance 
Act and section 512 of the FY 2006 FOAA which prohibit assistance to 
countries in default in payment to the United States in certain 
circumstances.

Prohibited Countries: Lower Middle Income Category

    1. Republika Srpska, which is part of the country of Bosnia and 
Herzegovina, is subject to section 561 of the FY 2006 FOAA, which 
prohibits assistance to any country, entity, or municipality 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. China, according to the Department of State, is not eligible to 
receive economic assistance from the United States, absent special 
authority, because of concerns relative to China's record on human 
rights.
    3. Iran is subject to numerous restrictions, including but not 
limited to section 620A of the Foreign Assistance Act which prohibits 
assistance to governments supporting international terrorism and 
section 507 of the FY 2006 FOAA.
    4. Serbia is subject to section 561of the FY 2006 FOAA, which 
prohibits assistance to any country, entity, or municipality 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. In addition, section 563 
of the FY 2006 FOAA restricts certain assistance for the central 
Government of Serbia if the Secretary does not make a certification 
regarding, among other things, cooperation with the International 
Criminal Tribunal for the former Yugoslavia.
    5. Thailand is subject to section 508 of the FY 2006 FOAA which 
prohibits assistance to the government of a country whose duly elected 
head of government is deposed by decree or military coup.
    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 by reason of application of Foreign Assistance Act or any other 
provision of law for FY 2007. MCC will include any required updates on 
such statutory eligibility that affect countries' identification as 
candidate countries for FY 2007, 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: October 20, 2006.
John C. Mantini,
Acting General Counsel, Millennium Challenge Corporation.
[FR Doc. E6-17914 Filed 10-25-06; 8:45 am]
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