[Federal Register Volume 86, Number 196 (Thursday, October 14, 2021)]
[Notices]
[Pages 57201-57203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22278]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 21-10]


Notice of First Amendment to Compact With the Kingdom of Morocco

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: In accordance with the Millennium Challenge Act of 2003, as 
amended, the Millennium Challenge Corporation is publishing a summary, 
justification, and full text of the proposed First Amendment to 
Millennium Challenge Compact between the United States of America, 
acting through the Millennium Challenge Corporation, and the Kingdom of 
Morocco. Representatives of the United States Government and the 
Kingdom of Morocco plan to conclude the Amendment before the end of 
2021.
    Authority: 22 U.S.C. 7708 (i) (2).

    Dated: October 7, 2021.
Thomas G. Hohenthaner,
Acting VP/General Counsel and Corporate Secretary.

Summary of First Amendment to Millennium Challenge Compact With the 
Kingdom of Morocco

    The Board of Directors of the Millennium Challenge Corporation 
(``MCC'') has approved an amendment (the ``Amendment'') to the existing 
US $450,000,000, five-year Millennium Challenge Compact between the 
United States of America, acting through MCC, and the Kingdom of 
Morocco (the ``Compact'').

Background

    The Compact was signed on November 30, 2015 and entered into force 
on June 30, 2017. The Compact aims to contribute to economic growth and 
investment in Morocco through two projects supporting Moroccan 
government priorities: The Education and Training for Employability 
Project and the Land Productivity Project.

Scope of the Amendment

    MCC proposes to extend the term of the Compact for an additional 
nine months until March 31, 2023, and to provide additional funding of 
up to $10,500,000. The term extension is necessary to mitigate 
implementation delays due to the COVID-19 pandemic and to complete 
Compact projects as originally contemplated. The proposed additional 
funding will be used to cover additional program administration and 
related oversight costs associated with extending the Compact's term.

Justification for the Amendment

    In March 2020, the Government of Morocco imposed an almost complete 
lockdown and border closure for three months after the first COVID-19 
cases were identified in Morocco. The offices of the Government of 
Morocco's accountable entity were closed from March to June 2020, 
limiting staff to telework. Construction works were halted for at least 
three months, as were all in-person activities such as public 
consultations, trainings, and other technical assistance activities. 
Travel restrictions and border closures disrupted global supply chains 
and access to necessary supplies and equipment. Although some 
restrictions were eased during the summer of 2020, renewed COVID-19 
outbreaks during the fall and winter led to targeted lockdowns in 
several Moroccan cities. Lockdowns and restrictions have now been 
imposed intermittently for over a year, including a lengthy national 
curfew and a suspension of air travel with over 50 countries, including 
most of Europe. These restrictions have only recently eased.
    Extending the Compact term will maximize long-term results and the 
return on investment by assuring the completion of most key activities 
and increasing the likelihood that the Government of Morocco will 
successfully adopt and implement the reform elements of the Compact and 
establish a more solid foundation for sustaining these reforms post-
Compact. The additional MCC funding is necessary for and will be used 
to support oversight and other administrative functions during the 
additional nine months of the Compact term.

First Amendment to Millennium Challenge Compact Between the United 
States of America, Acting Through the Millennium Challenge Corporation 
and the Kingdom of Morocco

First Amendment to Millennium Challenge Compact

    This FIRST AMENDMENT TO MILLENNIUM CHALLENGE COMPACT (this 
``Amendment''), is made by and between the United States of America,

[[Page 57202]]

acting through the Millennium Challenge Corporation, a United States 
government corporation (``MCC''), and the Kingdom of Morocco 
(``Morocco''), acting through its government (the ``Government'') (each 
referred to herein individually as a ``Party'' and collectively as the 
``Parties''). All capitalized terms used in this Amendment that are not 
otherwise defined herein have the meanings given to such terms in the 
Compact (as defined below).

Recitals

    Whereas, the Parties signed that certain Millennium Challenge 
Compact by and between the United States of America, acting through 
MCC, and the Kingdom of Morocco, acting through its government, on 
November 30, 2015 (the ``Compact'');
    Whereas, Section 7.4 of the Compact provides for a Compact Term of 
five (5) years from its entry into force on June 30, 2017;
    Whereas, implementation of the Compact Program has been adversely 
affected and delayed by the coronavirus pandemic;
    Whereas, the Parties now desire to extend the Compact Term by an 
additional nine (9) months until March 31, 2023 (the ``Extension''), 
and to increase MCC's assistance under the Compact for related 
administrative and oversight costs, to allow the Government more time 
to implement and complete the Projects in order to fully achieve the 
Compact Goal and the Project Objectives; and
    Whereas, pursuant to Section 6.2(a) of the Compact, the Parties 
desire to amend the Compact as more fully described herein to 
memorialize the Extension.
    Now, therefore, the Parties hereby agree as follows:

Amendments

1. Amendment to Section 2.1
    Section 2.1 (Program Funding) of the Compact is amended and 
restated to read as follows:

    ``Section 2.1 Program Funding. Upon entry into force of this 
Compact in accordance with Section 7.3, MCC will grant to the 
Government, under the terms of this Compact, an amount not to exceed 
Four Hundred Forty-Eight Million Four Hundred Sixty-Two Thousand One 
Hundred Fifty-Two United States Dollars and Eight Cents 
(US$448,462,152.08) (``Program Funding'') for use by the Government 
to implement the Program. The allocation of Program Funding is 
generally described in Annex II.''
2. Amendment to Section 7.4
    Section 7.4 (Compact Term) of the Compact is amended and restated 
to read as follows:

    ``Section 7.4 Compact Term. This Compact will remain in force 
for five (5) years and nine (9) months after its entry into force, 
until March 31, 2023, unless terminated earlier under Section 5.1 
(the ``Compact Term'').''
3. Amendments to Annex II (Multi-Year Financial Plan Summary)
    (a) Paragraph B of Annex II (Multi-Year Financial Plan Summary) to 
the Compact is amended and restated to read as follows:

    ``B. Government LMIC Contribution. During the Compact Term, the 
Government will make contributions, relative to its national budget 
and taking into account prevailing economic conditions, as are 
necessary to carry out the Government's responsibilities under 
Section 2.6(a) of this Compact. These contributions may include in-
kind and financial contributions (including obligations of Morocco 
on any debt incurred toward meeting these contribution obligations). 
In connection with this obligation, the Government will develop a 
contribution plan set forth in the Program Implementation Agreement 
to complement MCC Funding through allocations including but not 
limited to: 1. A progressive increase in its funding for the Private 
Sector-Driven TVET grant facility such that the Government will fund 
a minority portion of the Private Sector-Driven TVET grant facility; 
2. demonstration projects for the Industrial Land Activity; and 3. 
support for operations and maintenance and discretionary funding for 
the Secondary Education Activity. The Government commits to a 
minimum contribution of $69,075,000 over the Compact Term. Such 
contribution will be in addition to the Government's spending 
allocated toward such Project Objectives in its budget for the year 
immediately preceding the establishment of this Compact. The 
Government's contribution will be subject to any legal requirements 
in Morocco for the budgeting and appropriation of such contribution, 
including approval of the Government's annual budget by its 
legislature. The Parties may set forth in the Program Implementation 
Agreement or other appropriate Supplemental Agreements certain 
requirements regarding this Government contribution, which 
requirements may be conditions precedent to the Disbursement of MCC 
Funding. During implementation of the Program, the Government's 
contributions may be modified or new contributions added with MCC 
approval, provided that the modified or new contributions continue 
to advance the Project Objectives.

    (b) Exhibit A to Annex II (Multi-Year Financial Plan Summary) to 
the Compact is deleted in its entirety and replaced by revised Exhibit 
A set forth in Annex I to this Amendment, which revised Exhibit A 
includes the Compact Implementation Funding amount granted by 
implementation of Section 2.2(d) of the Compact.

General Provisions

1. 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.
2. Effect of This Amendment
    From and after the date this Amendment enters into force, the 
Compact and this Amendment will 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, will mean and be construed as a reference 
to the Compact, as amended by this Amendment.
3. Limitations
    Except as expressly amended by this Amendment, all of the 
provisions of the Compact remain unchanged and in full force and 
effect.
4. Governing Law
    The Parties acknowledge and agree that this Amendment is an 
international agreement entered into for the purpose of amending the 
Compact and as such will be interpreted in a manner consistent with the 
Compact and is governed by international law.

Annex I

[[Page 57203]]



                 Revised Exhibit A to Annex II to the Compact Multi-Year Financial Plan Summary
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                                                                               Proposed
                      Component                        Current approved     additional MCC       Revised MYFP
                                                             MYFP             grant funds
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                               1. Education and Training for Employability Project
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1.1 Secondary Education Activity....................      109,910,388.53          805,000.00      110,715,388.53
1.2 Workforce Development Activity..................      110,301,489.76          595,000.00      110,896,489.76
                                                     -----------------------------------------------------------
    Subtotal........................................      220,211,878.29        1,400,000.00      221,611,878.29
----------------------------------------------------------------------------------------------------------------
                                          2. Land Productivity Project
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2.1 Governance Activity.............................       10,386,614.70                0.00       10,386,614.70
2.2 Rural Land Activity.............................       32,666,977.50           50,000.00       32,716,977.50
2.3 Industrial Land Activity........................      122,499,213.09        2,850,000.00      125,349,213.09
                                                     -----------------------------------------------------------
    Subtotal........................................      165,552,805.29        2,900,000.00      168,452,805.29
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                                           3. Monitoring & Evaluation
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3.1 Monitoring & Evaluation.........................        7,675,895.63                0.00        7,675,895.63
                                                     -----------------------------------------------------------
    Subtotal........................................        7,675,895.63                0.00        7,675,895.63
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                                     4. Program Administration and Oversight
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4.1 MCA-Morocco II Program Administration...........       32,446,241.03        4,660,000.00       37,106,241.03
4.2 Fiscal and Procurement Agents...................       11,400,331.84        1,470,000.00       12,870,331.84
4.3 Audits and Compliance...........................          675,000.00           70,000.00          745,000.00
                                                     -----------------------------------------------------------
    Subtotal........................................       44,521,572.87        6,200,000.00       50,721,572.87
                                                     -----------------------------------------------------------
        Total Program Funding.......................      437,962.152.08       10,500,000.00      448,462,152.08
                                                     -----------------------------------------------------------
        Total Compact Implementation Funding........       12,037,847.92                0.00       12,037,847.92
                                                     -----------------------------------------------------------
        Total MCC Funding...........................      450,000,000.00       10,500,000.00      460,500,000.00
        Minimum Government Contribution.............       67,500,000.00  ..................       69,075,000.00
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[FR Doc. 2021-22278 Filed 10-13-21; 8:45 am]
BILLING CODE 9211-03-P