[Federal Register Volume 73, Number 149 (Friday, August 1, 2008)]
[Notices]
[Pages 45081-45083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-17706]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 08-08]


Notice of Amendment To Compact With the Government of the 
Republic of Madagascar

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: In accordance with Section 609(i)(2) of the Millennium 
Challenge Act of 2003, as amended (Pub. L. 108-199, Division D), the 
Millennium Challenge Corporation is publishing a summary, justification 
and the complete text of the Amendment to Millennium Challenge Compact 
between the United States of America, acting through the Millennium 
Challenge Corporation, and the Government of the Republic of 
Madagascar. Representatives of the United States Government and the 
Government of the Republic of Madagascar executed the Amendment 
documents on July 24, 2008 and July 15, 2008, respectively.

    Dated: July 29, 2008.
Henry Pitney,
Deputy General Counsel, Millennium Challenge Corporation.

Summary of Amendment to Millennium Challenge Compact With the 
Government of the Republic of Madagascar

    The Board of Directors of the Millennium Challenge Corporation 
(MCC) has approved an amendment (the Amendment) to the existing 
approximately $109.8 million, four-year Millennium Challenge Compact 
between the United States of America, acting through MCC, and the 
Government of the Republic of Madagascar (the Compact).

Background

    The Compact was signed April 18, 2005, entered into force on July 
27, 2005 and, under its original terms, would have terminated on July 
26, 2009. It is the only compact entered into by MCC with a four-year 
rather than a five-year term. The main objectives of the Compact 
consist of raising incomes in rural areas by increasing land rights 
security and improving land administration capacity, expanding the 
financial sector, and increasing investment in farms and other rural 
businesses in five high-potential geographic zones. The extension of 
the Compact term is intended to allow a more complete achievement of 
the Compact's goals and enhance the sustainability of the investments 
being made under the Compact.

Scope of the Amendment

    The Amendment extends the term of the Compact for a single 
additional year without making changes to either the scope of program 
activities or the level of funds currently obligated under the Compact. 
The Amendment also conforms the Compact's administrative winding up 
provision to the related provision in other compacts that have been 
entered into since the Compact was signed. Finally, the Amendment 
updates information with respect to the title of the MCC principal 
representative under the Compact.

Reasons for the Amendment

    The Government of Madagascar is unlikely to achieve all of the 
project objectives as defined in the Compact by its original 
termination date in July 2009. While MCC's and the Government of 
Madagascar's efforts continue to keep Compact objective realization 
moving forward and are resulting in increased disbursement rates, the 
time allotted for implementation of several major

[[Page 45082]]

contracts is insufficient to reach certain targets. In certain cases, 
MCC was not willing to allow construction contracts to be entered into 
absent a five-year term for the Compact. With an extension of one year 
to the term of the Compact, the likelihood of achieving project 
objectives will improve substantially, and the probability of 
sustaining these activities once Compact funding ceases will increase.
    The fifth year extension will better position the Government of 
Madagascar to fully implement the Compact's planned activities, achieve 
the targets set forth in the Compact's monitoring and evaluation plan, 
and ultimately better allow for the sustainable poverty reduction 
impact contemplated by the Compact.
    Examples of the implementation activities that will be supported by 
the additional year of the Compact term include the following.

A. Land Tenure Project

    The extended term will provide the Compact's Land Tenure Project 
time to better implement activities related to the modernization and 
decentralization of land services and information gathering and 
dissemination in Madagascar. One component of these activities is the 
construction of decentralized land offices in beneficiary communities 
and the rehabilitation or new construction of regional Land 
Administration offices. The fifth year will reduce the risk that 
planned construction will not be completed and provide time for an 
adequate guarantee period following the completion of construction. The 
extended term will also help ensure the sustainability of the reforms 
achieved and implemented through the Land Tenure Project by allowing 
additional time for the provision of adequate technical assistance to 
strengthen the institutional and human resource capacity of the land 
services providers at the regional and local levels.

B. Finance Project

    The amended Compact term will provide the time necessary to allow 
the largest activity in the Finance Project--the creation of a national 
payment system--to be more effectively completed. The additional year 
will provide the time necessary to build the Central Bank of 
Madagascar's technical capacity to operate and sustain the system. The 
extended Compact term will also allow adequate time for the 
construction of the new branches for the Madagascar National Savings 
Bank contemplated by the Compact, a critical activity aimed at 
providing low-cost savings accounts to the people of four districts in 
rural Madagascar where such accounts currently are unavailable.

C. Agriculture Business Investment Project (ABIP)

    The one-year extension of the Compact term will provide ABIP time 
to broaden and deepen its activities related to increasing farm and 
small business revenue and investment opportunities. It will provide an 
opportunity for farmers to work with project staff to adopt improved 
production techniques during additional crop production cycles. In 
addition, it will provide time for an adequate guarantee period 
following the completion of the construction of the agricultural 
business centers that will serve as regional hubs for post-Compact 
technical assistance. The additional year will also allow the 
agricultural business centers to further test and strengthen their 
operational model to better ensure that delivery of services to 
farmers, associations and rural small enterprises can be sustained into 
the future.

Amendment to Millennium Challenge Compact Between the Government of the 
Republic of Madagascar and the United States of America Acting Through 
the Millennium Challenge Corporation

Amendment to Millennium Challenge Compact

    This Amendment to Millennium Challenge Compact (this ``Amendment'') 
is made by and between the Government of the Republic of Madagascar 
(the ``Government'') (referred to herein individually as a ``Party'' 
and collectively, the ``Parties''), and the United States of America, 
acting through the Millennium Challenge Corporation, a United States 
Government corporation (``MCC''). All capitalized terms used in this 
Amendment that are not otherwise defined have the meanings given to 
such terms in the Compact.

Recitals

    Whereas, MCC and the Government signed the Millennium Challenge 
Compact by and between the United States of America, acting through the 
MCC, and the Government, on April 18, 2005 (the ``Compact'');
    Whereas, the Compact currently provides for a Compact Term of four 
years from the date of the Compact's entry into force, July 27, 2005;
    Whereas, pursuant to the Compact, MCC grants to the Government, 
subject to the terms and conditions of the Compact, MCC Funding in an 
amount not to exceed One Hundred Nine Million Seven Hundred and 
Seventy-Three Thousand United States Dollars (US$109,773,000) during 
the Compact Term to enable the Government to implement the Program and 
achieve the Objectives outlined in the Compact;
    Whereas, to better facilitate the proper implementation and 
achievement of certain of the Objectives, MCC and the Government wish 
to extend the Compact Term for one additional year; and
    Whereas, pursuant to Section 5.3 of the Compact, the Parties desire 
to amend the Compact as set forth in this Amendment;
    Now, therefore, in consideration of the foregoing and the mutual 
covenants and agreements set forth herein and in the Compact, the 
Parties hereby agree as follows:
Amendment to Section 1.3
    Section 1.3 of the Compact is amended by deleting the last sentence 
in its entirety and replacing it with the following:

    This Compact shall remain in force for five years from the date 
of entry into force of this Compact, unless earlier terminated in 
accordance with Section 5.4 (the ``Compact Term'').
Amendment to Section 5.1
    Section 5.1 of the Compact is amended by replacing the notice 
information for MCC with the following:

To MCC: Millennium Challenge Corporation, Attention: Vice President 
for Compact Implementation (with a copy to the Vice President and 
General Counsel), 875 15th Street, NW., Washington, DC 20005, United 
States of America, Facsimile: (202) 521-3700, E-mail: 
[email protected] (Vice President for Compact 
Implementation); [email protected] (Vice President and 
General Counsel).
Amendment to Section 5.2
    Section 5.2 of the Compact is amended by deleting the words ``Vice 
President for Country Relations'' and replacing them with ``Vice 
President for Compact Implementation.''
Amendment to Section 5.4(e)
    Section 5.4(e) of the Compact is amended by deleting the text of 
the section in its entirety and replacing it with the following:

    All MCC Funding shall terminate upon the expiration, suspension, 
or termination of this Compact; provided, however, that MCC Funding 
may be used, in compliance with this Compact and any relevant 
Supplemental Agreement, to pay for (i) reasonable expenditures for 
goods, works and services that are properly incurred under or in 
furtherance of this Compact before the

[[Page 45083]]

expiration, suspension or termination of this Compact, provided that 
the request for such payment is properly submitted within sixty (60) 
days after such expiration, suspension or termination, and (ii) 
reasonable expenditures (including administrative expenses) properly 
incurred in connection with the winding up of the Program within 
one-hundred and twenty (120) days after the expiration, suspension 
or termination of this Compact.

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.

Effect of This Amendment

    From and after the date this Amendment enters into force in 
accordance with Section 8 of this Amendment, 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.

Limitations

    Except as expressly amended by this Amendment, all of the 
provisions of the Compact remain unchanged and in full force and 
effect.

Entry Into Force of This Amendment

    This Amendment shall enter into force upon its signature by each of 
the Parties. Signature page begins on the next page.
    In witness whereof, the undersigned, duly authorized by their 
respective governments, have signed this Amendment at:
    Antananarivo, Madagascar on July 15, 2008, by Marius 
Ratolojanahary, Minister of Land Reform, Estate and Country Planning 
for the Government of the Republic of Madagascar; and
    Washington, DC, United States of America on July 24, 2008, by 
Darius Mans, Vice President for Compact Implementation, Millennium 
Challenge Corporation, on behalf of the United States of America.

[FR Doc. E8-17706 Filed 7-31-08; 8:45 am]
BILLING CODE 9211-03-P