Notice2022-03275
Notice of First Amendment To Compact With the Republic of Côte d'Ivoire
Primary source
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Published
February 16, 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 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.
Full Text
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<title>Federal Register, Volume 87 Issue 32 (Wednesday, February 16, 2022)</title>
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[Federal Register Volume 87, Number 32 (Wednesday, February 16, 2022)]
[Notices]
[Pages 8878-8880]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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
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