[Federal Register Volume 87, Number 14 (Friday, January 21, 2022)]
[Notices]
[Pages 3361-3363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01136]



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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 22-01]


Notice of First Amendment to Compact With the Republic of Niger

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 Republic 
of Niger, acting through the Ministry in Charge of Foreign Affairs and 
Cooperation. Representatives of the United States Government and the 
Government of Niger plan to conclude the Amendment in January 2022.

(Authority: 22 U.S.C. 7708(i) (2))

    Dated: January 14, 2022.
Thomas G. Hohenthaner,
Acting VP/General Counsel and Corporate Secretary.

Summary of First Amendment to Millennium Challenge Compact With the 
Republic of Niger

    The Board of Directors of the Millennium Challenge Corporation 
(``MCC'') has approved an amendment (the ``Amendment'') to the existing 
US$437,024,000, five-year Millennium Challenge Compact between the 
United States of America, acting through MCC, and the Republic of Niger 
(the ``Compact'').

Background

    The Compact was signed July 29, 2016 and entered into force on 
January 26, 2018. The Compact aims to increase rural incomes through 
improvements in agricultural productivity and sales resulting from 
modernized irrigated agriculture with sufficient trade and market 
access; and to increase incomes for small-scale agriculture-dependent 
and livestock-dependent families in eligible municipalities in rural 
Niger by improving crop and livestock productivity, sustaining natural 
resources critical to long-term productivity, and increasing market 
sales of targeted commodities through two projects: The Irrigation and 
Market Access Project and Climate-Resilient Communities Project.

Scope of the Amendment

    MCC proposes to extend the term of the Compact for an additional 12 
months to January 26, 2024 and to provide additional funding up to 
$5,600,000. The term extension is necessary to mitigate implementation 
delays due to the COVID-19 pandemic and to complete 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

    Niger registered its first COVID-19 case on March 19, 2020. Within 
weeks, the Government of Niger imposed a tight lock-down closing 
international airports and land borders, restricting movements between 
cities, shuttering hotels, limiting gatherings to ten people or less, 
and enforcing a nightly curfew. Over the course of the next two months, 
the U.S. Embassy evacuated over 400 Americans and placed MCC staff who 
remained in country on mandatory telework status. Restrictions on 
movement and gatherings were eased in May 2020. International air 
travel reassumed with strict sanitary protocols that included 14-day 
quarantines upon arrival in Niger. International airlines, however, did 
not resume flights into Niger until August and September 2020.
    Since the outbreak began in March 2020, COVID-19 has significantly 
delayed Compact implementation. Several Millennium Challenge Account-
Niger (``MCA-Niger'') staff and contractors contracted COVID-19. The 
transition to telework has proved challenging for MCA-Niger due to 
connectivity issues. The limitations on the size of public gathering 
size increased the number of required meetings. Some potential 
contractors, wary of exposing their staff to COVID-19, delayed signing 
new contracts because they were reluctant to commit to a deliverable 
timeline amidst continued uncertainty about the trajectory of COVID-19 
cases in Niger. Also, MCC staff and contractors could not travel to 
Niger, delaying bid preparation, project work, and project oversight.
    Extending the Compact term will enable MCC and the Government of 
Niger to complete and hand over all ongoing projects to the beneficiary 
institutions at the required quality, without compromising health, 
safety, and environmental standards, and will reduce sustainability 
risks through finalization of farmer training and land tenure support 
activities and testing of the new innovative road maintenance 
arrangement. The Compact extension will also maximize long-term results 
and benefits for the citizens of Niger, and MCC's return on investment, 
and benefit the Compact program as a whole. The additional funding will 
be used to cover additional program administration and related 
oversight costs associated with extending the Compact's term.

First Amendment to Millennium Challenge Compact Between the United 
States of America, Acting Through the Millennium Challenge Corporation 
and the Republic of Niger, Acting Through the Ministry in Charge of 
Foreign Affairs and Cooperation

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, 
acting through the Millennium Challenge Corporation, a United States 
government corporation (``MCC''), and the Republic of Niger, acting 
through the Ministry in Charge of Foreign Affairs and Cooperation (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 Republic of Niger, acting through the Ministry in Charge 
of Foreign Affairs and Cooperation, on July 29, 2016 (as modified on 
August 23, 2019 and October 9, 2020, the ``Compact'');
    Whereas, Section 7.4 of the Compact provides for a Compact Term of 
five (5) years from its entry into force on January 26, 2018;
    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 twelve (12) months until January 26, 2024 (the 
``Extension''), and to increase 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 Project Objectives;

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    Whereas, the Parties further desire to modify the Project Objective 
for the Irrigation and Market Access Project; 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 and the modified Project Objective.
    Now, therefore, the Parties hereby agree as follows:

Amendments

1. Amendment to Section 1.3
    Section 1.3 (Project Objectives) of the Compact is amended and 
restated to read as follows:
    ``Section 1.3 Project Objectives. The objective of each of the 
Projects (each a ``Project Objective'' and collectively, the ``Project 
Objectives'') is to:
    (a) increase rural incomes through improvements in agricultural 
productivity and increases in sales resulting from modernized irrigated 
agriculture with sufficient trade and market access; and
    (b) increase incomes for small-scale agricultural- and livestock-
dependent families in Eligible Communes and Livestock Corridors in 
rural Niger by improving crop and livestock productivity, sustaining 
natural resources critical to production, supporting growth of 
agricultural enterprises and increasing market sales of targeted 
commodities.''
2. 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 Thirty-Four Million, Six Hundred Fifty-Two Thousand, Six 
Hundred Ninety-Six United States Dollars (US$434,652,696) (``Program 
Funding'') for use by the Government to implement the Program. The 
allocation of Program Funding is generally described in Annex II.''
3. 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 
six (6) years after its entry into force, until January 26, 2024, 
unless terminated earlier under Section 5.1 (the ``Compact Term'').''
4. Amendments to Annex II (Multi-Year Financial Plan Summary)
    (a) 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 Development 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

                 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
                                                             NYFP             grant funds
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                                     1. Irrigation and Market Access Project
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1.1 Irrigation Perimeter Development................          90,507,931  ..................          90,507,931
1.2 Management Services and Market Facilitation.....          15,039,275  ..................          15,039,275
1.3 Roads for Market Access.........................         133,813,527  ..................         133,813,527
1.4 Policy Reform...................................          17,184,394  ..................          17,184,394
                                                     -----------------------------------------------------------
    Sub-total.......................................         256,545,127  ..................         256,545,127
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                                    2. Climate-Resilient Communities Project
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2.1 Regional Sahel Pastoralism Support (PRAPS)......          52,155,587  ..................          52,155,587
2.2 Climate-Resilient Agriculture (CRA).............          51,865,027  ..................          51,865,027
                                                     -----------------------------------------------------------
    Sub-total.......................................         104,020,613  ..................         104,020,613
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                                          3. Monitoring and Evaluation
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3.1 Monitoring and Evaluation.......................          12,000,000  ..................          12,000,000
                                                     -----------------------------------------------------------
    Sub-total.......................................          12,000,000  ..................          12,000,000
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                                    4. Program Management and Administration
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4.1 MCA-Niger Administration, Program Management              56,486,956           5,600,000          62,086,956
 Support, Fiscal Agent, Procurement Agent and
 Financial Audits...................................
                                                     -----------------------------------------------------------
    Sub-total.......................................          56,486,956           5,600,000          62,086,956
                                                     -----------------------------------------------------------
        Total Program Funding.......................         429,052,696           5,600,000         434,652,696
                                                     -----------------------------------------------------------
        Total Compact Development Funding...........           7,971,304  ..................           7,971,304
                                                     -----------------------------------------------------------
        Total MCC Funds.............................         437,024,000           5,600,000         442,624,000
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[FR Doc. 2022-01136 Filed 1-20-22; 8:45 am]
BILLING CODE 9211-03-P