[Federal Register Volume 85, Number 165 (Tuesday, August 25, 2020)]
[Notices]
[Pages 52366-52368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18583]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 20-04]


Notice of Entering Into a Compact With the Government of Burkina 
Faso

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

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Programs Appropriations Act, 2020, the Millennium Challenge Corporation 
(MCC) is publishing a summary of the Millennium Challenge Compact 
(Compact) between the United States of America, acting through MCC, and 
the Government of Burkina Faso, acting through the Ministry of Economy, 
Finance and Development. Representatives of MCC and Burkina Faso signed 
the Compact on August 13, 2020. The complete text of the Compact has 
been posted at: https://assets.mcc.gov/content/uploads/compact-burkina-faso-ii.pdf.

    Dated: August 19, 2020.
Jeanne M. Hauch,
VP/General Counsel and Corporate Secretary.

Summary of Burkina Faso Compact

Overview of MCC Burkina Faso Compact

    MCC's five-year, $450,000,000 Compact with the Government of 
Burkina Faso (the ``Government'') is aimed at addressing Burkina Faso's 
key binding constraint to economic growth: The high cost of, and low 
quality and low access to, electricity. The Compact will address this 
constraint through three projects: The Strengthening Electricity Sector 
Effectiveness Project, the Cost-Effective and Reliable Electricity 
Supply Project, and the Grid Development and Access Project. 
Collectively, these projects will address the poor condition of energy 
infrastructure in the country, insufficient generation capacity, and an 
over-reliance on thermal energy. The Government will also contribute 
approximately $50,000,000 to support the Compact program.
    Burkina Faso is a landlocked country in West Africa with a 
population of 18.6 million. It faces significant development 
challenges, as indicated by its ranking of 182 (out of 189 countries) 
in the United Nations Development Program 2019 Human Development Index, 
and 43.7 percent of its population is considered poor. However, Burkina 
Faso also has one of Africa's fastest growing economies, with a gross 
domestic product growth rate of six percent in 2019. Burkina Faso's 
challenge is how to sustain this growth rate. Burkina Faso is focusing 
on investments needed to sustain and broaden this growth over the long-
term and has prioritized the electricity sector.

Project Summaries

    The Compact is comprised of three projects:
     The Strengthening Electricity Sector Effectiveness Project 
aims to improve and strengthen the legal, regulatory, and institutional 
framework of Burkina Faso's electricity sector by supporting priority 
sector reforms and capacity-building for key actors in the sector, 
including the national utility, regulator, and Ministry of Energy. This 
project is expected to result in improved planning and operational 
efficiency, and increased investment by the private sector, all of 
which will translate into improved quality and supply of electricity, 
as well as lowering the cost of service.
     The Cost-Effective and Reliable Electricity Supply Project 
aims to increase the supply of electricity and the reliability of the 
network, at a lower cost for the national utility, through the 
production and storage of solar energy and increased imports. This 
project will improve electricity supply infrastructure through the 
introduction of batteries for energy storage, and improvements to 
electricity dispatch centers. These activities are expected to result 
in the increased availability of more affordable electricity through 
the production and storage of solar electricity and increased imports, 
which in turn will improve electricity network reliability by reducing 
outages and other breakdowns. Improved reliability and increased supply 
from cheaper sources will make electricity more cost-effective by 
lowering costs for both the national utility as well as its customers.
     The Grid Development and Access Project aims to reduce 
outages and increase the availability and consumption of electricity 
for grid-connected end users by (i) updating the transmission and 
distribution network, and (ii) increasing access and targeting 
productive use of electricity. This project is expected to result in 
extending the reach and capacity of the network and improving the 
access of customers covered, allowing the national utility to reduce 
losses and outages caused by system failures and lack of redundancy, as 
well as to increase coverage, access, and consumption of end users.

Compact Budget

    Table 1 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--Burkina Faso Compact Budget
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                        Component                             Amount
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1. Strengthening Electricity Sector Effectiveness            $46,920,170
 Project................................................
    1.1 Development of Institutional and Regulatory            4,797,000
     Framework Activity.................................
    1.2 Support in the Development of Independent Power        2,691,000
     Producers Activity.................................
    1.3 Strengthening of Institutional Organization and       37,881,090
     Capacity Activity..................................
    1.4 Project Management Activity.....................       1,551,080
2. Cost-Effective and Reliable Electricity Supply             99,534,417
 Project................................................
    2.1 Facilitating Low-Cost Supply Activity...........      16,124,097
    2.2 Improving the Reliability of Supply Activity....      62,542,144
    2.3 Improving Regional Connectivity Activity........      15,568,176
    2.4 Project Management and Oversight Activity.......       5,300,000
3. Grid Development and Access Project..................     210,678,788
    3.1 Expanding and Improving the Ouagadougou Grid          77,583,226
     Activity...........................................
    3.2 Expanding and Improving the Bobo-Dioulasso Grid       86,969,651
     Activity...........................................
    3.3 Improving Access and Productive Use Activity....       9,701,911
    3.4 Project Management and Oversight Activity.......      36,424,000
4. Monitoring and Evaluation............................      11,992,899
5. Program Administration...............................      80,873,726
                                                         ---------------
    Total MCC Funding...................................     450,000,000
Total Compact Program Funding:
    Total MCC Funding...................................     450,000,000
    Government of Burkina Faso Contribution.............      50,110,795
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        Total Compact...................................     500,110,795
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[FR Doc. 2020-18583 Filed 8-24-20; 8:45 am]
BILLING CODE 9211-03-P