Notice2026-08490
Notice of First Amendment to Compact With the Republic of Senegal
Primary source
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Published
May 1, 2026
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 Senegal. Representatives of the United States Government and the Government of Senegal plan to conclude the Amendment in late May or early June of 2026.
Full Text
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<title>Federal Register, Volume 91 Issue 84 (Friday, May 1, 2026)</title>
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[Federal Register Volume 91, Number 84 (Friday, May 1, 2026)]
[Notices]
[Pages 23467-23469]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-08490]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 26-04]
Notice of First Amendment to Compact With the Republic of Senegal
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 Senegal. Representatives of the United States Government and the
Government of Senegal plan to conclude the Amendment in late May or
early June of 2026.
(Authority: 22 U.S.C. 7708 (i) (2))
Brian Finkelstein,
Acting Vice President, General Counsel, and Corporate Secretary.
Summary of First Amendment to Millennium Challenge Compact With the
Republic of Senegal
The Board of Directors of the Millennium Challenge Corporation
(``MCC'') has approved an amendment (the ``Amendment'') to the existing
US$550 million, five-year Millennium Challenge Compact between the
United States of America, acting through MCC, and the Republic of
Senegal (the ``Compact'').
Background
The Compact was signed on December 10, 2018 and entered into force
on September 9, 2021. The Compact is designed to modernize Senegal's
electricity sector through the delivery of reliable and stable
electricity to allow for expansion of the grid, diversification of
electricity generation sources, and leverage of Senegal's burgeoning
oil and gas sector, which includes several American firms. The Compact
aims to lower electricity costs and improve reliability, addressing key
[[Page 23468]]
barriers to investment cited by over 50 American firms operating in
Senegal.
Scope of the Amendment
MCC proposes to extend the term of the Compact for an additional
six months to March 9, 2027 and to provide additional funding up to
US$15.9 million. The term extension is necessary to mitigate
implementation delays and to complete infrastructure projects as
originally contemplated. The proposed increase in assistance will be
provided entirely from funds already appropriated to MCC. The
additional funds will be used to cover additional program
administration and related oversight costs associated with extending
the Compact's term.
Justification for the Amendment
Absent a time extension, the Compact's critical investments face
completion, health and safety, and sustainability risks, jeopardizing
the full realization of MCC's intended development and economic
outcomes in the energy sector. The six-month extension will preserve
implementation quality, support post-Compact sustainability of
investments, and enable Senegal's gas-to-power energy strategy to
advance with significant investments and opportunities for American
firms. The amendment will reinforce MCC's model of delivering
measurable development impact while supporting U.S. economic interests
and fostering a more stable and market-oriented business environment in
Senegal.
The unplanned halt to Compact implementation activities in early
2025 occurred during a critical implementation phase and led to the
desynchronization of schedules, loss of personnel, costly
demobilization/remobilization, and slow contractor restarts across
multiple Compact activities. Without a six-month extension, several key
Compact projects would be at risk of non-completion. Transferring these
incomplete works and associated costs to the Government of Senegal
could result in the potential waste of U.S. taxpayer funds if the works
were improperly finished or incomplete, creating significant
reputational risk to the United States.
The six-month extension addresses schedule delays and safeguards
MCC's energy investments. On the Transmission Project, the extension
will secure functional integration of large-scale infrastructure onto
the national electricity network, allow sufficient testing and
commissioning, and enable an orderly transfer of infrastructure assets
to the grid. The additional time on the Access Project will help ensure
the completion of critical works to extend the electricity distribution
network and connect all planned communities, households, and socio-
economic facilities to the grid. Additionally, a six-month extension
will ensure sufficient time for an orderly and sustainable closure of
administrative operations in line with MCC standards and procedural
requirements.
First Amendment to Millennium Challenge Compact Between the United
States of America, Acting Through the Millennium Challenge Corporation
and the Republic of Senegal
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 Senegal
(``Senegal''), acting through its Ministry of Economy, Planning, 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 Senegal acting through its Ministry of
Economy, Finance and Planning on December 10, 2018 (the ``Compact'');
Whereas, Section 7.4 of the Compact provides for a Compact Term of
five years from its entry into force;
Whereas, the Compact entered into force on September 9, 2021;
Whereas, the Parties now desire to extend the Compact Term by six
(6) months (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, Project Objectives and Program
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 Forty-Three Million Two Hundred Sixty-Seven Thousand Seven
Hundred Nine United States Dollars (US$543,267,709) (``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 2.2.
Section 2.2(a) (Compact CDF) of the Compact is amended and restated
to read as follows:
``(a) Upon the signing of this Compact, MCC shall grant to the
Government, under the terms of this Compact and in addition to the
Program Funding described in Section 2.1, an amount not to exceed
Twenty-Two Million Six Hundred Thirty-Two Thousand Two Hundred and
Ninety-One United States Dollars (US$22,632,291) ( ``Compact CDF'')
under Section 609(g) of the Millennium Challenge Act of 2003, as
amended (the ``MCA Act''), for use by the Government to facilitate
implementation of this Compact, including for the following purposes:
(i) financial management and procurement activities;
(ii) administrative activities (including start-up costs such as
staff salaries) and administrative support expenses such as rent,
computers and other information technology or capital equipment;
(iii) monitoring and evaluation activities;
(iv) feasibility, design and other project preparatory studies; and
(v) other activities to facilitate Compact implementation as
approved by MCC.
The allocation of Compact CDF is generally described in Annex II.''
3. Amendment to Section 6.7(b).
Section 6.7(b) (References to Laws, Regulations, Policies and
Guidelines; References to Compact Expiration and Termination) of the
Compact is amended and restated to read as follows:
``(b) Each reference in this Compact, the PIA or any other
agreement entered into in connection with this Compact, to the
Compact's ``expiration'' refers to the date on which the Compact Term
ends
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in accordance with Section 7.4. Each reference in any of the
aforementioned documents to the Compact's ``termination'' refers to
this Compact ceasing to be in force prior to its expiration in
accordance with Section 5.1.''
4. 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 shall remain in force for
five (5) years and six (6) months after its entry into force, unless
terminated earlier under Section 5.1 (the ``Compact Term'').''
5. 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.
General Provisions
1. Entry Into Force of this Amendment.
This Amendment shall enter into force on the date of the last
signature of the Parties.
2. 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.
3. Effect of this Amendment.
From and after the Amendment enters into force, the Compact and
this Amendment shall 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, shall mean and be construed as a reference to the Compact,
as amended by this Amendment.
4. Limitations.
Except as expressly amended by this Amendment, all of the
provisions of the Compact remain unchanged and in full force and
effect.
5. 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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[FR Doc. 2026-08490 Filed 4-30-26; 8:45 am]
BILLING CODE 9211-03-P
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</html>Indexed from Federal Register on May 1, 2026.
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