[Federal Register Volume 80, Number 184 (Wednesday, September 23, 2015)]
[Notices]
[Page 57401]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-24182]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 15-02]


Notice of Entering Into a Compact With the Republic of Benin

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: In accordance with Section 610(b)(2) of the Millennium 
Challenge Act of 2003 (22 U.S.C. 7701-7718) as amended (the Act), and 
the heading ``Millennium Challenge Corporation'' of the Department of 
State, Foreign Operations, and Related Programs Appropriations Act, 
2015, the Millennium Challenge Corporation (MCC) is publishing a 
summary of the Millennium Challenge Compact between the United States 
of America, acting through the Millennium Challenge Corporation, and 
the Republic of Benin. Representatives of the United States Government 
and Benin executed the Compact documents on September 9, 2015. The 
complete text of the Compact has been posted at https://assets.mcc.gov/documents/compact-benin-power.pdf.

    Dated: September 18, 2015.
Maame Ewusi-Mensah Frimpong,
Vice President and General Counsel, Millennium Challenge Corporation.

Summary of Millennium Challenge Compact With the Republic of Benin

Explanation of the Millennium Challenge Compact With Benin (Compact)

    The Millennium Challenge Corporation (``MCC'') has entered into a 
five-year, $375 million compact with the Republic of Benin aimed at 
reducing poverty and accelerating economic growth (the ``Compact''). 
The Compact identifies a program that the MCC will fund consisting of 
the following four projects: (a) The Policy Reform and Institutional 
Strengthening Project will support key reforms needed to ensure the 
sustainability of Benin's electric power sector, including professional 
regulation, stronger utility operations, and private sector 
participation in power generation; (b) the Electricity Generation 
Project will increase Benin's domestic generation capacity by up to 78 
megawatts while decreasing the country's dependence on unreliable 
external energy sources through investments in a combination of solar, 
thermal, and hydroelectric power sources; (c) the Electricity 
Distribution Project will improve the nationwide grid by building a 
modern distribution dispatch and control center, as well as the grid in 
Cotonou, Benin's largest city and load center and selected regional 
networks as a complement to the solar investments; and (d) the Off-Grid 
Electricity Access Project will support policy and institutional 
reforms as well as infrastructure financing for off-grid electricity.
    The Compact articulates the terms and conditions, responsibilities, 
and obligations of each of the United States, acting through MCC, and 
Benin, acting through its government. MCC will oversee the 
implementation of the Compact on behalf of the United States. MCA-Benin 
II, a legal entity to be established by the Government of Benin (GoB), 
will manage the implementation of the Compact, while the GoB retains 
ultimate overall responsibility.

Background Information on Negotiations

    In December 2011, MCC's Board of Directors selected Benin as 
eligible for second Compact assistance. Benin was also deemed eligible 
for Compact assistance in fiscal years 2013 and 2015. MCC notified 
Congress pursuant to Section 610(a) of the Millennium Challenge Act of 
2003, as amended (Act) on April 9, 2015, of its intent to commence 
negotiations with Benin, following a 15-day Congressional consultation 
period. Based on MCC's evaluation of the proposed projects and related 
documents, and subsequent discussions and negotiations, MCC and the GoB 
finalized the terms of a Compact, which the MCC Board of Directors 
approved. The Compact was signed on September 9, 2015, by MCC Chief 
Executive Officer Dana J. Hyde, for the United States of America, and 
Komi Koutch[eacute], Minister of State in charge of Economy, Finance 
and Denationalization Programs, for the GoB.

Effect of Compact

    The Compact provides the basis for a grant of funds to the GoB for 
implementation of a program designed to reduce poverty in Benin through 
economic growth. The specific objective of the program is to expand 
business production and productivity, generate greater economic 
opportunities for households, and improve the capacity to provide 
public and social services by improving the quantity and quality of the 
supply of electricity in Benin.

Legal Authority

    Sections 605, 609(a) and 609(g) of the Act.

Entry Into Force

    The Compact will enter into force on the date of the letter from 
MCC to the GoB in an exchange of letters confirming that the GoB has 
completed its domestic requirements for entry into force of the Compact 
and that the conditions precedent to entry into force in Section 7.2 of 
the Compact have been met.

Duration of the Agreement

    The Compact shall remain in force for five years from entry into 
force, unless earlier terminated.

Point of Contact

    General Counsel--(202) 521-3600.

[FR Doc. 2015-24182 Filed 9-22-15; 8:45 am]
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