[Federal Register Volume 87, Number 32 (Wednesday, February 16, 2022)]
[Notices]
[Pages 8878-8880]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-03275]


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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 22-02]


Notice of First Amendment To Compact With the Republic of 
C[ocirc]te d'Ivoire

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 the 
Millennium Challenge Compact between the United States of America, 
acting through the Millennium Challenge Corporation, and the Republic 
of C[ocirc]te d'Ivoire, acting through the Ministry of Economy and 
Finances. Representatives of the United States Government and the 
Government of C[ocirc]te d'Ivoire plan to conclude the Amendment in the 
first quarter of 2022.

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

    Dated: February 10, 2022.
Thomas G. Hohenthaner,
Acting VP/General Counsel and Corporate Secretary.

Summary of First Amendment to Millennium Challenge Compact With the 
Republic of C[ocirc]te d'Ivoire

    The Board of Directors of the Millennium Challenge Corporation 
(``MCC'') has approved an amendment (the ``Amendment'') to the existing 
US$524,740,000, five-year Millennium Challenge Compact between the 
United States of America, acting through MCC, and the Republic of 
C[ocirc]te d'Ivoire (the ``Compact'').

Background

    The Compact was signed on November 7, 2017 and entered into force 
on August 5, 2019. The Compact aims to contribute to economic growth 
and investment in C[ocirc]te d'Ivoire through two projects supporting 
the Ivorian government's drive to diversify its economy through 
investments focused on education and transportation: (i) The Skills for 
Employability and Productivity Project; and (ii) the Abidjan Transport 
Project.

Scope of the Amendment

    MCC proposes to extend the term of the Compact for an additional 
twelve months until August 5, 2025, and to provide additional funding 
of up to $12,000,000. 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

    The first case of COVID-19 in C[ocirc]te d'Ivoire was confirmed on 
March 11, 2020. The Government declared a state of emergency on March 
23, 2020, imposing curfews and major restrictions on the movement of 
people. The timing of the pandemic delayed the effective

[[Page 8879]]

operational start-up of Millennium Challenge Account-C[ocirc]te 
d'Ivoire (``MCA-CI'') by several months. The new team of recently hired 
key staff was forced to telework for over three months (March-June 
2020), and installation of the servers for the MCA-CI's financial 
platform, SAP, was delayed until July 2020. The SAP system finally went 
live in January-March 2021, a cumulative delay of eight months.
    COVID-19 has delayed trainings and made it impossible to have in-
person exchanges with other MCAs. Procurements had to be delayed as 
companies and bidders temporarily closed and were subject to 
quarantines, and supply chain and other work disruptions. With regard 
to the Abidjan Transport Project, detailed design studies needed to 
prepare bidding packages for road construction works have been delayed 
by 15 months due to a variety of COVID-19-related factors and are 
scheduled to be completed by the spring of 2022. In addition, several 
key procurements, such as laboratory equipment for road maintenance 
(georadar and deflectometer), were extended to accommodate border re-
openings so that non-resident companies could participate in the 
procurements. Trainings on the use of the laboratory equipment were 
delayed by 10 months and 12 months, respectively. With regard to the 
Skills for Employability and Productivity Project, community 
mobilization activities for secondary school construction, which are 
required prior to construction, came to a halt for nearly four months 
due to travel restrictions that prevented project staff from conducting 
site visits.
    At the time of approval of this Compact, it was recognized that 
complex construction projects of this nature would be challenging in a 
post-conflict and limited-capacity country, but achievable in the 
absence of unknown risks emerging. COVID-19 impacts have upset that 
calculus. Extending the Compact term will better position MCC and MCA-
CI to complete and hand over all ongoing projects to the beneficiary 
institutions without compromising health, safety, or environmental 
standards, and will reduce sustainability risks by allowing for 
necessary attention to post-construction activities, including testing 
and commissioning of infrastructure, and training and capacity building 
of implementing entities. As COVID-19 has disrupted program activities 
and timelines, an extended Compact term will improve the potential to 
obtain the intended long-term benefits for the citizens of C[ocirc]te 
d'Ivoire and return on MCC's investment.
    First Amendment to Millennium Challenge Compact Between the United 
States of America, Acting Through the Millennium Challenge Corporation 
and the Republic of Cote D'Ivoire

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 C[ocirc]te 
d'Ivoire (``C[ocirc]te d'Ivoire''), acting through the Ministry of 
Economy and Finances (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 C[ocirc]te d'Ivoire, acting through the Ministry of Economy 
and Finances, on November 7, 2017 (the ``Compact'');
    Whereas, Section 7.4 of the Compact provides for a Compact Term of 
five years from its entry into force on August 5, 2019;
    Whereas, implementation of the Compact has been adversely affected 
and delayed by the coronavirus pandemic;
    Whereas, the Parties now desire to extend the Compact Term by one 
additional year (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, Program Objective, and 
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 
Five Hundred and Five Million, Fifty-Five Thousand, Eighty-Seven United 
States Dollars and Eleven Cents (US$505,055,087.11) (``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 
six years after its entry into force, unless terminated earlier under 
Section 5.1 (the ``Compact Term'').''

3. Amendment to Annex II (Multi-Year Financial Plan Summary)

    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

[[Page 8880]]

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.
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[FR Doc. 2022-03275 Filed 2-15-22; 8:45 am]
BILLING CODE 9211-03-P