[Federal Register Volume 83, Number 244 (Thursday, December 20, 2018)]
[Notices]
[Pages 65366-65367]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27570]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 18-15]
Notice of Entering Into a Compact With the Senegal
AGENCY: Millennium Challenge Corporation.
ACTION: Notice.
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SUMMARY: In accordance with Section 610(b)(3) of the Millennium
Challenge Act of 2003, as amended, and the heading ``Millennium
Challenge Corporation'' of the Department of State, Foreign Operations,
and Related Programs Appropriations Act, 2018, as carried forward by
the Continuing Appropriations Act, 2019, the Millennium Challenge
Corporation (MCC) is publishing a summary of the Millennium Challenge
Compact between the United States of America, acting through MCC, and
the Republic of Senegal, acting through the Ministry of Economy,
Finance and Planning. Representatives of MCC and Senegal signed the
compact on December 10, 2018. The complete text of the compact has been
posted at: https://www.mcc.gov/resourcesdoc/compact-senegal-power.
Dated: December 17, 2018.
Jeanne M. Hauch,
VP/General Counsel and Corporate Secretary.
Summary of Senegal Compact
Overview of MCC Senegal Compact
MCC's five-year, $550,000,000 Compact with the Government of
Senegal (the ``Government'') is aimed at addressing one of Senegal's
main binding constraints to economic growth: The high cost of energy
and low access to electricity. The Compact will address these
constraints through three primary projects: (i) Improving the
transmission network to meet the growing demand on the interconnected
network in Senegal, (ii) increasing electricity access in rural and
peri-urban areas of the south and central regions, and (iii) improving
the overall governance and financial viability of the sector.
Senegal is an important partner of the United States in promoting
peace and security in Africa. The country shares many fundamental
values and international goals with the United States, and it has set
an example of democratic rule in the region as well as of ethnic and
religious tolerance. It is a stable democracy in a challenging West
Africa region, a strong security partner, and a rising economy that is
attracting global investment. MCC's singular focus on growth and
poverty reduction--along with its ability to combine major
infrastructure works with policy change--allows the agency and the
Compact to play a key role in catalyzing transformation in Senegal.
Project Summaries
The Compact is comprised of three projects designed to secure
quality electricity supply for growing demand in Senegal and address
binding constraints to growth.
The Modernizing and Strengthening Senelec's Transmission
Network Project aims to strengthen and increase the reliability of
Senegal's high-voltage transmission network in and around greater Dakar
and improve electricity service delivery throughout the country. This
support for a robust transmission network is needed for Senegal to
effectively capitalize on private sector-led investment in generation
and to ensure that electricity is delivered reliably to consumers. This
is particularly important since much of the private sector interest is
in new, lower-cost generation projects including wind, solar, and
natural gas that rely heavily upon a reliable, stable transmission
network.
The Increasing Access to Electricity in Rural and Peri-
Urban Areas Project aims to extend the electrical grid in selected
areas in Senegal's south and center regions that have high economic
potential but low connection rates. Through a blend of supply-side and
demand-side interventions, this project also aims to increase rates of
adoption and consumption of electricity, facilitate opportunities for
income-generating activities in these regions, and improve the
understanding of energy efficiency at a national level. This project
offers several opportunities for collaboration with related United
States Government initiatives, including Feed the Future and Power
Africa, and with other donors that are providing complementary support
to agricultural value chains in MCC's areas of assistance, thereby
increasing the potential value of the MCC assistance.
The Power Sector Enabling Environment and Capacity
Development Project aims to strengthen laws, policies and regulations
governing the electricity sector, as well as the institutions
responsible for implementing them, especially the utility, the
regulator, and the ministry responsible for energy. In particular, the
project aims to support improved management of the transmission network
and increased access to electricity, reinforcing the foundations for
the provision of a less costly and more reliable supply of electricity
nationwide. The project builds on a participatory electricity sector
planning process that MCC funded during compact development to help the
Government articulate and select an appropriate long-term vision for
the sector that favors more private sector participation and enhances
the financial sustainability of the sector and its key stakeholders.
Compact Budget
Table I presents the Compact budget and sets forth both the MCC
funding allocation by Compact components and the Government's expected
$50 million contribution toward the objectives of the Compact.
Table 1--Senegal Compact Budget
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Component Amount
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1. Modernizing and Strengthening Senelec's Transmission Network Project
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1.1 Transmission Network Build Out Activity............. $327,900,000
1.2 Transformer Replacement Program Activity............ $26,000,000
1.3 Grid Stabilization Activity......................... $22,900,000
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Subtotal............................................ $376,800,000
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2. Increasing Access to Electricity in Rural and Peri-Urban Areas
Project
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2.1 Supply-Side Activity................................ $33,000,000
2.2 Consumer Demand Support Activity.................... $13,400,000
2.3 Distribution Network Reinforcement Activity......... $10,900,000
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Subtotal............................................ $57,300,000
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3. Power Sector Enabling Environment and Capacity Development Project
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3.1 Sector Governance Activity.......................... $14,000,000
3.2 Regulatory Strengthening Activity................... $11,900,000
3.3 Utility Strengthening Activity...................... $17,600,000
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Subtotal............................................ $43,500,000
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4. Monitoring and Evaluation............................ $11,800,000
5. Program Administration and Oversight................. $60,600,000
Total MCC Funding................................... $550,000,000
Total Program Budget................................ Amount
Total MCC Funding............................... $550,000,000
Total Government Contribution................... $50,000,000
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Total Program Budget................................ $600,000,000
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[FR Doc. 2018-27570 Filed 12-19-18; 8:45 am]
BILLING CODE 9211-03-P