Notice2022-10812
Notice of Entering Into a Compact With the Government of Lesotho
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 20, 2022
Issuing agencies
Millennium Challenge Corporation
Abstract
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.
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 98 (Friday, May 20, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 98 (Friday, May 20, 2022)]
[Notices]
[Pages 31003-31004]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-10812]
[[Page 31003]]
=======================================================================
-----------------------------------------------------------------------
MILLENNIUM CHALLENGE CORPORATION
[MCC FR 22-06]
Notice of Entering Into a Compact With the Government of Lesotho
AGENCY: Millennium Challenge Corporation.
ACTION: Notice.
-----------------------------------------------------------------------
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: <a href="https://assets.mcc.gov/content/uploads/compact-lesotho-health-and-horticulture.pdf">https://assets.mcc.gov/content/uploads/compact-lesotho-health-and-horticulture.pdf</a>.
(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:
<bullet> 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.
<bullet> District Health Management Team Reform Activity--This
activity will expand health financial systems and management capacity
to the district level.
<bullet> 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:
<bullet> 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.
<bullet> 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.
<bullet> 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:
<bullet> 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.
<bullet> 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.
<bullet> 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.
[[Page 31004]]
Lesotho Compact Total Budget
------------------------------------------------------------------------
Component Total funds
------------------------------------------------------------------------
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
------------------------------------------------------------------------
[FR Doc. 2022-10812 Filed 5-19-22; 8:45 am]
BILLING CODE 9211-03-P
</pre></body>
</html>Indexed from Federal Register on May 20, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.