Notice2025-18565
Notice of Entering Into a Compact With the Republic of Côte d'Ivoire
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Published
September 25, 2025
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 and the Republic of C[ocirc]te d'Ivoire. Representatives of the United States of America and the Republic of C[ocirc]te d'Ivoire executed the Compact on September 10 and September 16, 2025, respectively. The complete text of the Compact has been posted at: https://assets.mcc.gov/content/uploads/compact- cote-divoire-regional-energy.pdf.
Full Text
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<title>Federal Register, Volume 90 Issue 184 (Thursday, September 25, 2025)</title>
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[Federal Register Volume 90, Number 184 (Thursday, September 25, 2025)]
[Notices]
[Pages 46266-46267]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18565]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 25-06]
Notice of Entering Into a 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 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 and the Republic of C[ocirc]te
d'Ivoire. Representatives of the United States of America and the
Republic of C[ocirc]te d'Ivoire executed the Compact on September 10
and September 16, 2025, respectively. The complete text of the Compact
has been posted at: <a href="https://assets.mcc.gov/content/uploads/compact-cote-divoire-regional-energy.pdf">https://assets.mcc.gov/content/uploads/compact-cote-divoire-regional-energy.pdf</a>.
(Authority: 22 U.S.C. 7709 (b)(3))
September 22, 2025.
Brian Finkelstein,
Acting Vice President, General Counsel, and Corporate Secretary.
Summary of the C[ocirc]te d'Ivoire Regional Energy Compact
Overview of the MCC C[ocirc]te d'Ivoire Regional Energy Compact
The Millennium Challenge Corporation (MCC), on behalf of the United
States of America, has signed a five-year Millennium Challenge Compact
with the Republic of C[ocirc]te d'Ivoire (C[ocirc]te d'Ivoire) aimed at
reducing poverty through economic growth (Compact). MCC funding of
$300,000,000, together with a contribution of $22,500,000 from the
Government of the Republic of C[ocirc]te d'Ivoire (GoCI), will support
economic growth in C[ocirc]te d'Ivoire through support to the energy
sector. The compact program seeks to increase the net quantity of
electricity traded by Cote d'Ivoire on the regional market. The Compact
aims to achieve this through the C[ocirc]te d'Ivoire Regional
Electricity Project, comprised of three activities that focus on the
regional market structure, physical infrastructure within C[ocirc]te
d'Ivoire, and the institutional environment of the energy sector within
C[ocirc]te d'Ivoire, respectively, the: (i) Support for the ECOWAS \1\
Regional Electricity Market Activity; (ii) Modernizing the Grid Network
in C[ocirc]te d'Ivoire Activity; and (iii) Support to C[ocirc]te
d'Ivoire on the Regional Electricity Market Activity.
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\1\ ECOWAS refers to the Economic Community of West African
States.
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Background and Context
C[ocirc]te d'Ivoire experienced political instability and economic
decline throughout the 1990s and 2000s. Between 2012 and 2024,
political stability and policy reforms have allowed the economy to
recover from years of stagnation, with an average annual gross domestic
product growth rate of 6.7 percent during that period. The Government
of C[ocirc]te d'Ivoire has been a key national security ally and a
committed MCC partner, instituting reforms that have aimed to move the
country toward a more vibrant, robust, and stable economic growth path.
C[ocirc]te d'Ivoire's energy system is one of the strongest in the
sub-region. The country has four primary energy sources (i.e.,
hydropower, oil, natural gas, and biomass). As of 2023, C[ocirc]te
d'Ivoire had installed capacity of 2,907 Megawatts (MW), roughly 69
percent of which (1,998 MW) is generated by thermal power, 30 percent
(866 MW) by hydropower, and the remaining 1 percent (43 MW) is
generated by alternative energy sources.
C[ocirc]te d'Ivoire has a relatively high access to electricity
rate. C[ocirc]te d'Ivoire is an electricity exporter due to its
relatively high generation capacity, well developed electricity grid,
and geographic location in West Africa. It exports electricity,
pursuant to bilateral contracts, to six countries in the region:
Burkina Faso, Ghana, Guinea, Liberia, Mali, and Sierra Leone. In the
last ten years, the Government of C[ocirc]te d'Ivoire has embarked on
extensive reforms in the energy sector that are consistent with best
practices and that address the national context.
Given this sector context, the compact program aims to develop
C[ocirc]te d'Ivoire's electricity grid infrastructure, catalyze private
sector investment in C[ocirc]te d'Ivoire's energy generation capacity,
and provide institutional support to both regional and C[ocirc]te
d'Ivoire's institutions to support C[ocirc]te d'Ivoire efforts in
increasing the net quantity of electricity traded by C[ocirc]te
d'Ivoire on the regional market. Investments in these areas are
expected to help the GoCI to substantially participate in trading
electricity on the regional market and grow its economy while reducing
poverty.
Project and Activity Summaries
The C[ocirc]te d'Ivoire Regional Electricity Project
The Compact is designed to achieve its objective through one
project, comprising the following three activities:
1. The Support for the ECOWAS Regional Electricity Market Activity
aims to assist regional electricity actors in the operationalization of
Phase II--the day-ahead market--of the West African Power Pool (WAPP)
regional electricity market. The day-ahead electricity market hosts
transactions for buying and selling electricity one day prior to the
delivery day. On this market, regional buyers and sellers commit to the
wholesale purchase of electricity and submit their bids and offers to a
market operator, respectively. The day-ahead market helps to avoid
price volatility and produces one financial settlement. The integration
of national power systems through a day-ahead market reduces the
likelihood of energy crises that could lead to political instability
and conflict. Strengthening the regulatory frameworks and institutional
capacities of entities like the WAPP ensures that U.S. investments are
safeguarded and that energy resources are managed transparently. This
activity comprises three components: (i) improving and reinforcing
reliability and market governance, (ii) improving market financial
viability, and (iii) reinforcing the operational capacity of regional
market actors.
2. The Modernizing the Grid Network in C[ocirc]te d'Ivoire Activity
aims to make targeted investments in power system tools, equipment, and
infrastructure in C[ocirc]te d'Ivoire to meet the technical and market
operations requirements needed to fully participate in the regional
day-ahead power market. The activity will focus on upgrades to enhance
the reliability and stability of the interconnected system while also
catalyzing funding for a pipeline of independent power producer (IPP)
projects to ensure sufficient energy is available for power trade. This
strategic investment directly contributes to U.S. safety by enhancing
the reliability and stability of the Ivorian electricity system. By
upgrading critical infrastructure, MCC will reduce the risk of energy
shortages that could destabilize the region and create
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opportunities for extremist groups to exploit vulnerabilities. This
activity comprises two components: the first is dedicated to
modernizing and upgrading power system operations tools, real-time
monitoring and forecasting tools and capabilities to enhance compliance
with anticipated future regulations. The second component aims to
assist C[ocirc]te d'Ivoire in expanding its capacity to diversify its
energy mix thus improving its energy security. This will be done by
catalyzing private sector funding for energy generation projects,
thereby promoting energy independence and reducing reliance on
potentially hostile foreign energy sources. The expected improvements
in cybersecurity for the energy management systems will further protect
U.S. interests by ensuring that critical infrastructure is protected
against cyber threats, which are increasingly prevalent in
interconnected systems.
3. The Support to C[ocirc]te d'Ivoire on the Regional Electricity
Market Activity aims to bolster the regulatory, financial, and
operational capacity of Ivoirian electricity sector stakeholders,
enabling them to optimize their involvement in the recently launched
day-ahead regional electricity market. This activity comprises three
components: (i) improving and harmonizing the country's electricity
sector regulatory framework in line with regional frameworks and
regulations, (ii) improving the financial condition of the Ivorian
electricity sector, and (iii) developing C[ocirc]te d'Ivoire's overall
performance in the regional electricity market. By enhancing these
capacities, we are not only supporting C[ocirc]te d'Ivoire's ambition
to become a regional energy hub but also reinforcing U.S. interests in
promoting stability and security in West Africa. A well-functioning
regional electricity market reduces the potential for energy disputes
and fosters cooperation among nations, thereby contributing to a more
stable geopolitical environment. The establishment of standardized
contracts and regulatory frameworks will ensure compliance with
regional regulatory frameworks and transparency, which are essential
for attracting U.S. investments and ensuring that American companies
can operate safely and effectively in the region.
Compact Budget
The table below presents the overall compact budget of $322.5
million, which includes up to $300 million of MCC funding, and a GoCI
contribution of at least $22.5 million.
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MCC Funding by compact components Amount
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1. Support for the ECOWAS Regional Electricity Market $39,450,000
Activity............................................
2. Modernizing the Grid Network in C[ocirc]te 165,500,000
d'Ivoire Activity...................................
3. Support to C[ocirc]te d'Ivoire on the Regional 40,450,000
Electricity Market Activity.........................
4. Monitoring and Evaluation......................... 2,800,000
5. Program Administration............................ 51,800,000
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Total MCC Compact Funding........................ 300,000,000
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Total program funding Amount
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Total MCC Compact Funding............................ $300,000,000
Government of C[ocirc]te d'Ivoire Contribution....... 22,500,000
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Total Program.................................... 322,500,000
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[FR Doc. 2025-18565 Filed 9-24-25; 8:45 am]
BILLING CODE 9211-03-P
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</html>Indexed from Federal Register on September 25, 2025.
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