Notice2022-01136
Notice of First Amendment to Compact With the Republic of Niger
Primary source
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Published
January 21, 2022
Issuing agencies
Millennium Challenge Corporation
Abstract
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.
Full Text
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<title>Federal Register, Volume 87 Issue 14 (Friday, January 21, 2022)</title>
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[Federal Register Volume 87, Number 14 (Friday, January 21, 2022)]
[Notices]
[Pages 3361-3363]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-01136]
[[Page 3361]]
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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
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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
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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
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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...................................
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Sub-total....................................... 56,486,956 5,600,000 62,086,956
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Total Program Funding....................... 429,052,696 5,600,000 434,652,696
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Total Compact Development Funding........... 7,971,304 .................. 7,971,304
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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
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