[Federal Register Volume 87, Number 98 (Friday, May 20, 2022)]
[Notices]
[Pages 31003-31004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10812]



[[Page 31003]]

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MILLENNIUM CHALLENGE CORPORATION

[MCC FR 22-06]


Notice of Entering Into a Compact With the Government of Lesotho

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

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SUMMARY: In accordance with the provisions of the Millennium Challenge 
Act of 2003, as amended, 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 
Kingdom of Lesotho (Lesotho), acting through its Ministry of Foreign 
Affairs and International Relations. Representatives of MCC and Lesotho 
signed the Compact on May 12, 2022. The complete text of the Compact 
has been posted at: https://assets.mcc.gov/content/uploads/compact-lesotho-health-and-horticulture.pdf.

(Authority: 22 U.S.C. 7709 (b)(3))

    Dated: May 16, 2022.
Thomas G. Hohenthaner,
Acting VP/General Counsel and Corporate Secretary.

Summary of Lesotho Compact

Overview of MCC Lesotho Compact

    MCC's five-year Compact with the Kingdom of Lesotho in the amount 
of $300 million aims to reduce poverty through economic growth, 
targeting key binding constraints in the health, finance, and 
agriculture sectors. The compact will address these constraints through 
four key projects that seek to grow, strengthen, and organize the 
private sector in Lesotho by improving health outcomes for a healthy 
workforce, investing in the horticulture sector, and supporting the 
creation and viability of private businesses unconnected to existing 
patronage systems. MCC expects that providing infrastructure and 
capacity building in a specific sector, promoting business development, 
and ensuring access to healthcare will contribute to broader, longer-
term efforts to support private sector growth to create a constituency 
that demands more effective and efficient governance. The Government of 
Lesotho will also contribute approximately $22 million to support the 
compact program.

Project Summaries

    The compact is comprised of four projects:
    (1) The Health Systems Strengthening Project aims to improve the 
delivery of health services and management of the primary health care 
system in Lesotho resulting in improved health outcomes and reduced 
treatment costs. The project includes three activities:
     Primary Health Care Service Provision Activity--This 
activity will support the Ministry of Health to improve primary 
healthcare services from ministry-level management to clinic-level 
standards of care.
     District Health Management Team Reform Activity--This 
activity will expand health financial systems and management capacity 
to the district level.
     Digital Health Services Activity--This activity will work 
with the Ministry of Health and other stakeholders to ensure that 
health data systems are interoperable and protect sensitive personal 
information.
    (2) The Market Driven Irrigated Horticulture Project aims to: 
Increase rural incomes related to commercial horticulture, including 
for women, youth, and the rural poor, and establish a sustainable and 
inclusive model of irrigation, water resource, and land management. The 
project's implementation is contingent upon the identification of one 
or more commercial anchor farmers who will collaborate with local 
smallholder famers to improve and sustain best practices in 
horticulture and to provide a financially viable path for all project 
stakeholders to remain active in horticulture production after the end 
of the compact. The project is composed of three activities:
     Institutional Reform Activity--This activity will work 
directly with Government of Lesotho partners to ensure that irrigation 
has strong legal and policy frameworks to support the growth of 
equitable and sustainable irrigation throughout the country.
     Irrigated Horticulture Support Services Activity--This 
activity will help participants overcome the obstacles to sustaining 
irrigation schemes by providing relevant technical assistance and 
attracting experienced commercial farmers in the form of an anchor 
farmer or joint venture partnership to help leverage smallholder 
efforts and sustain the infrastructure investment.
     Irrigation Infrastructure Development Activity--This 
activity includes the development of up to 2,000 hectares of irrigated 
land at several sites still under study. Further feasibility and design 
work to be conducted prior to entry into force of the compact will 
refine the size and location of the irrigation perimeters and identify 
measures for environmental and social sustainability. Commercial farmer 
investments are necessary to ensure economic justification and 
sustainability of the investment.
    (3) The Business Environment and Technical Assistance Project aims 
to stimulate an increase in firm-level profits and formal employment 
from a pipeline of supported firms, including for micro, small, and 
medium enterprises owned by women and youth and in rural areas. These 
businesses will participate in the Public-Private Dialogue, which 
results in provision of critical services to improve the business 
enabling environment. This project is organized into three activities:
     Pipeline Development Activity--This activity will 
identify, build and connect existing and new high-growth potential 
firms to direct technical assistance and business development services 
to support increased firm level profits and business maturation. This 
activity will provide grants to select women- and youth-owned 
businesses to purchase equipment and goods to facilitate business plan 
implementation.
     Business Ecosystem Strengthening Activity--This activity 
strengthens the Public-Private Dialogue mechanism to increase private 
sector participation in policy decisions and improve delivery of 
critical services to improve the business environment.
     Financial Ecosystem Strengthening Activity--This activity 
will increase financing options for micro, small, and medium 
enterprises and large firms by structuring financing vehicles that 
address access to credit issues for firms and building the capacity of 
financial sector actors to develop and deliver innovative financial 
products.
    (4) The compact program also includes a $3 million allocation for 
the American Catalyst Facility for Development (ACFD) Project. The 
purpose of this funding is to support blended finance transactions that 
will catalyze private investment into Lesotho. MCC and the U.S. 
International Development Finance Corporation have discussed potential 
investments including a small and medium enterprise working and growth 
capital fund, agriculture sector investments, and projects in the 
health sector.

Compact Budget

    The table below presents the compact budget and sets forth both the 
MCC funding allocation by compact components and the Government of 
Lesotho's expected contribution toward the objectives of the compact.

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                      Lesotho Compact Total Budget
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                        Component                           Total funds
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Health Systems Strengthening Project....................     $75,405,000
    Activity 1: Primary Health Care Service Provision...      30,338,000
    Activity 2: District Health Management Team Reform..      22,541,000
    Activity 3: Digital Health..........................      22,526,000
Market-Driven Irrigated Horticulture Project............     118,622,000
    Activity 1: Institutional Reform....................      22,200,000
    Activity 2: Irrigated Horticulture Support Services.      29,110,000
    Activity 3: Irrigation Infrastructure Development...      67,312,000
Business Environment and Technical Assistance Project...      62,000,000
    Activity 1: Pipeline Development....................      29,000,000
    Activity 2: Strengthening the Business Ecosystem....      20,000,000
    Activity 3: Financial Ecosystem Strengthening.......      13,000,000
American Catalyst Facility for Development Project......       3,000,000
    Activity 1: American Catalyst Facility for                 3,000,000
     Development........................................
Monitoring and Evaluation...............................       3,000,000
    Activity 1: Monitoring and Evaluation...............       3,000,000
Program Administration..................................      37,973,000
    Activity 1: MCA-Lesotho II Administration...........      25,953,000
    Activity 2: Fiscal Agent............................       5,700,000
    Activity 3: Procurement Agent.......................       5,700,000
    Activity 4: Audits..................................         620,000
                                                         ---------------
        Total Compact Investment........................     322,273,000
            MCC Funding.................................     300,000,000
            Government of Lesotho Contribution..........      22,273,000
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[FR Doc. 2022-10812 Filed 5-19-22; 8:45 am]
BILLING CODE 9211-03-P