Notice of Entering Into a Compact With the Republic of Ghana, 47684-47687 [2014-19196]

Download as PDF 47684 Federal Register / Vol. 79, No. 157 / Thursday, August 14, 2014 / Notices 2. Employment of Persons with Disabilities in the Federal Government 3. Freedom from Prohibited Personnel Practices: A Vision Achieved? 4. Preventing Nepotism in the Federal Government 5. Reprisal for Protected Activity 6. Sexual Harassment in Federal Workplaces—An Update 7. Due Process Rights of Federal Employees 8. Effect of 2014 Legislation Concerning Senior Executives in the Department of Veterans Affairs 9. Whistleblowing After the Whistleblower Protection Enhancement Act Recruitment and Hiring 10. Federal Hiring: Reformed or In Need of Reform? 11. How Do Selecting Officials Make Hiring Decisions? 12. Identifying the Best Qualified Candidates for Federal Positions 13. Recruiting and Retaining Employees in STEMM Occupations 14. Supervisory and Managerial Probation: Final Hurdle or Formality? Pay and Performance Management 15. A ‘‘Performance Review’’ of the Performance Review 16. Federal Pay Systems—Experience Outside the General Schedule 17. Position Classification: Purposes and Practices 18. The Incidence and Impact of Poor Performance Supervision and Leadership 19. Dual Career Paths for Supervisors and Technical Specialists 20. Improving the Selection of Supervisors 21. Performance Evaluation in the Senior Executive Service: Leading by Example? 22. Senior Executives: Learning from Success tkelley on DSK3SPTVN1PROD with NOTICES Building an Effective Workforce 23. Flexible Work 24. Technology and the Federal Workforce 25. The Federal Job as a ‘‘Calling’’ 26. The Human Resources Workforce: Rising to the Challenge? VerDate Mar<15>2010 16:42 Aug 13, 2014 Jkt 232001 27. What Do Employees Seek and Receive from Federal Service? 28. Workforce Reshaping: Do Agencies have the Right Tools? 29. Workforce and Succession Planning: Is the Exercise Producing Results? Focus on the U.S. Office of Personnel Management 30. Hiring Reform Initiatives and Outcomes 31. The Civil Service Reform Act Turns 40 32. USAHire—An Initiative to Improve Entry-Level Hiring William D. Spencer, Clerk of the Board. [FR Doc. 2014–19351 Filed 8–12–14; 11:15 am] BILLING CODE 7400–01–P 2. Program Overview and Budget MILLENNIUM CHALLENGE CORPORATION [MCC FR 14–04] Notice of Entering Into a Compact With the Republic of Ghana Millennium Challenge Corporation. ACTION: Notice. AGENCY: In accordance with Section 610(b)(2) of the Millennium Challenge Act of 2003 (22 U.S.C. 7701–7718), the Millennium Challenge Corporation (MCC) is publishing a summary of the Millennium Challenge Compact between the United States of America, acting through the Millennium Challenge Corporation, and the Republic of Ghana. Representatives of the United States Government and Ghana executed the Compact documents on August 5, 2014. The complete text of the Compact has been posted at mcc.gov. SUMMARY: Dated: August 8, 2014. John C. Mantini, Assistant General Counsel, Millennium Challenge Corporation. Summary of Millennium Challenge Compact With the Republic of Ghana 1. Overview MCC’s Board of Directors has approved a five-year, $498.2 million PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 compact with the Republic of Ghana aimed at reducing poverty and accelerating economic growth (the ‘‘Compact’’). The Compact is intended to assist the Government of Ghana (‘‘GoG’’) to increase economic growth by addressing problems in the power sector through private sector investment in power generation and distribution as well as improvements that will reduce load shedding, power losses, and outages that currently affect millions of Ghanaians (the ‘‘Program’’). The Program will support the turnaround of Ghana’s electricity sector and stimulate private investment to create a selfsustaining sector meeting the current and future needs of households and business while ensuring inclusive access to power by its citizens. The Compact focuses on turning around the main public electricity distribution company through the introduction of private sector participation as well as targeted infrastructure investments and reforms in power generation. The targeted investments and reforms will jointly contribute to a more functional, credit worthy, and self-sustaining power sector. Due to the desire to create sustainable change and economic growth, MCC has made the Compact contingent on private sector participation (‘‘PSP’’) as well as reforms intented to improve the financial position of the distribution utilities, enable gas supply for the energy sector, and ensure a cost reflective tariff regime. In addition, MCC included a second tranche of conditional program funding to be made available only if essential reforms milestones are met, including actual implementation of the PSP transaction and continued progress toward a cost reflective tariff. The Compact includes base funding of $308.2 million and conditional funding of up to $190 million which would be released only after significant agreedupon reforms are adopted by the GoG. The budget is shown in Figure 1 below. E:\FR\FM\14AUN1.SGM 14AUN1 47685 Federal Register / Vol. 79, No. 157 / Thursday, August 14, 2014 / Notices FIGURE 1: PROPOSED GHANA COMPACT BUDGET OVERVIEW [Compact budget overview (millions of US$)] MCC Tranche I (base funding) MCC Tranche II (conditional incentive funding) ECG Financial & Operational Turnaround Project ...................................................................... 149.6 190 NEDCo Financial & Operational Turnaround Project .................................................................. 54.2 Regulatory Strengthening & Capacity Building Project ............................................................... 5.0 Access Project ............................................................................................................................. 10.0 Power Generation Sector Improvement Project .......................................................................... 16.3 Energy Efficiency & Demand Side Mgmt. Project ....................................................................... 25.4 Monitoring & Evaluation ............................................................................................................... 7.6 Program Administration and Oversight ....................................................................................... 40.2 Total Investment ................................................................................................................... 1 308.2 Projects As the required conditions are met, the Tranche II funding that is part of the overall Compact will be allocated to the Electric Company of Ghana Financial and Operational Turnaround Project. If the conditions to the release of Tranche II funding are not met within two years of Entry into Force of the Compact, the $190 million will be de-obligated from the Compact. The Government of Ghana will contribute at least 7.5 percent of the total amount of MCC funding towards the implementation of the Compact. The Program can be divided into two general areas: Projects that focus on the distribution sector, and projects that focus on the generation sector. tkelley on DSK3SPTVN1PROD with NOTICES 3. Distribution Sector Investments Utility Reforms: Electricity Company of Ghana (‘‘ECG’’) and Northern Electricity Distribution Company (‘‘NEDCo’’) Financial and Operational Turnaround Project The ECG Financial and Operational Turnaround Project, totaling $149.6 million, pursues a two-pronged approach—changing the governance and management of this Ghanaian electric utility by bringing in a private sector operator coupled with infrastructure and foundational investments designed largely to reduce losses and improve service quality. Specifically, the Project contains the following five interconnected activities: • Private Sector Participation. Accepting the reform program as a condition of the Compact will signal Ghana’s willingness to take bold moves 1 Numbers do not add due to rounding. VerDate Mar<15>2010 16:42 Aug 13, 2014 Jkt 232001 to improve an underperforming sector that drags down economic growth in the country. • Modernizing Utility Operations. Investments to support integrated loss management, such as technical assistance, to provide overall project management support. • Reduction in Commercial Losses and Improvement of Revenue Collection. Reducing distribution system vulnerability to theft and meter manipulation and improving metering systems, including installation of prepaid meters. • Technical Loss Reduction. Interventions focused on lowering thermal losses in the distribution systems. • Outage Reduction. Reducing both the frequency and duration of outages by introducing improved system protection and sectionalizing devices in the distribution system. The estimated economic rate of return (‘‘ERR’’) for the ECG Financial and Operational Turnaround Project is 19 percent. The initial estimated beneficiaries of this Project are 4.8 million people in the short term and 7.8 million people long-term. The NEDCo Financial and Operational Turnaround Project will initially provide $5 million in technical assistance to improve operations of NEDCo. No later than the conclusion of the first year of Compact implementation, MCC will evaluate ERRs for possible system and infrastructure investments and if resulting ERRs are acceptable, MCC will make investments up to $49.2 million. PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 Potential total MCC funding 498.2 190 Regulatory Strengthening and Capacity Building Project The activities under the Regulatory Strengthening and Capacity Building Project, which totals $5 million, are two-fold—tariff review, focused on the process of ratemaking and more specifically on the structure of tariffs, and capacity building of the sector performance monitoring capabilities to ensure better reporting: • Sector Performance Monitoring Capacity Building. Improving the regulatory monitoring and independent verification of sector performance. • Tariff Review and Regulation. Improving the tariff review process by supporting studies that will provide critical inputs to the redesign of the tariff structure prior to implementation of the PSP and the next round of ratemaking and technical assistance to the regulators. The economic and beneficiary analyses combine the Regulatory Strengthening and Capacity Building Project with the ECG Financial and Operational Turnaround Project calculations as the results of the two Projects are closely linked. Access Project The Access Project, totaling $10 million, will test the most cost effective approaches to address the key constraints that micro, small and medium enterprises (‘‘MSMEs’’) face in obtaining safe and legal access to electricity. This small Project is designed to be innovative and experimental—it will test several different interventions aimed at reducing critical barriers to legal E:\FR\FM\14AUN1.SGM 14AUN1 47686 Federal Register / Vol. 79, No. 157 / Thursday, August 14, 2014 / Notices tkelley on DSK3SPTVN1PROD with NOTICES connections for MSMEs in a small sample of markets and economic enclaves and provide evidence of effective approaches to increasing legal access for the distribution utilities. In addition to the direct benefits the Project would have for the MSMEs, increasing access will also expand the customer base of the utilities to include these important stakeholders and ensure that they are beneficiaries of improvements in the Ghanaian power sector. The Access Project will also address the problems caused by illegal connections, improve safety and security in target areas, and strengthen relationships between end users, local government, and the utility companies. The Project includes two activities: • Improving Electricity Supply to MSMEs and Social Institutions. Upgrades will be made to target selected markets and economic enclaves that are within the intervention sites of the ECG and NEDCo Financial and Operational Turnaround Projects, and to the extent possible, nearby social institutions. The activity will also provide metered public lighting in the targeted areas. • Improving Service Delivery and Strengthening Partnerships. This activity will seek to alleviate the various barriers (including a high connection fee, cumbersome connection processes and weak coordination among key actors including utility companies, local government and the communities) that prevent MSMEs from having legal access to electricity. These activities are expected to contribute to increased incomes for MSMEs; firm ERRs for this Project, however, are not yet available. At this time, data needed to undertake an assessment of the proposed intervention is still being collected. Robust economic evaluations will identify promising interventions that could be scaled up during or after the compact and will provide evidence of effective strategies for increasing access to electricity in markets and enclaves across Ghana. 4. Generation Sector Investments The generation sector investments adopt two strategies to make more energy available. The first is to make better use of the electricity already in the system by reducing waste. The second is to foster an enabling environment for investments to expand generation capacity. Power Generation Sector Improvement Project This $16.3 million Project prioritizes the alleviation of major constraints to private sector investment in generation through the following three activities: VerDate Mar<15>2010 16:42 Aug 13, 2014 Jkt 232001 • Operationalize the ‘‘Gas to Power’’ Value Chain. The lack of reliable fuel supply is a significant barrier to securing affordable and sustainable generation capacity and has led to unplanned load shedding and outages in the past few years. The Compact will leverage ongoing advisory support provided by USAID by providing both the impetus to act (achievable, actionoriented conditions precedent linked to first disbursement of project funds) and continued support to the GoG to ensure that decisions regarding institutionalization, commercialization, and securitization of the gas sector are informed and serve Ghana’s best interest. • Facilitate Liquefied Natural Gas (LNG) Development. Studies have shown that even with gas from domestic sources and the West African Gas Pipeline, Ghana will need additional fuel to support projected increases in electricity demand. The private sector has expressed an interest in building the required infrastructure associated with importing LNG and MCC is funding the technical feasibility studies required to provide a ‘shovel-ready’ project. • Strengthen Sector Planning and IPP Framework. Ghana does not have an active and integrated master plan to guide the development of its growing energy sector, or an established competitive process for procuring Independent Power Providers (‘‘IPPs’’). This has led to uneven, opaque, and costly additions to capacity that may not be consistent with a least cost plan. The activity will support the development of a least cost plan that addresses generation, transmission, distribution and demand side management in a holistic and integrated fashion, as well as capacity building within the entities responsible for sector planning. It will also allow the Government to conduct more effective strategic planning for the electricity grid and off grid systems and provide generation capacity from both traditional and renewable sources. The estimated ERR for this Project is 24 percent. The initial beneficiaries of the Project are 19.6 million people and the long-term beneficiaries are 41.8 million people.2 Energy Efficiency and Demand Side Management Project Energy efficiency and demand-side management policies and investments represent some of the most cost-effective means to bridge the gap between supply and demand, serving as sources of new energy supply. Reducing energy waste 2 This is a 20-year projection based on a population growth rate of 2.3 percent. PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 on the consumer side of the electricity meter decreases the growth of demand and reduces the investment that is needed in the electricity system to maintain needed capacity and reliability. This $25.4 million Project includes four activities: • Development and Enforcement of Standards and Labels. Most energyusing products do not have standards or labelling requirements and the standards that do exist would benefit greatly from technical updates and enforcement support. • Improved Energy Auditing. Energy efficiency auditing and energy services company market support includes technical capacity-building for energy efficiency and energy management professionals. • Education and Public Information. Awareness, education, and information activities help assure that both technical workers and the general public are aware of cost-effective energy saving opportunities. • Demand Side Management Infrastructure. This activity would support piloting of distributed applications such as solar photo voltaic back-up power for lighting and electronics, off-grid solar systems, and grid-connected solar systems as well as the conversion of conventional street lights to LED street lighting. The estimated ERR for this Project is 27 percent. The estimated beneficiaries for this Project are 19.6 million people in the short term and 41.8 million people long-term.3 5. Policy Reform Milestones The Compact is tied to a number of reforms, specifically: Improving the creditworthiness of ECG, ensuring reliable gas supply for power generation, instituting a cost reflective tariff, and commercialization of the distribution utilities. The GoG has given MCC certain assurances through the negotiations process of its support for the policy, regulatory, and institutional reform agenda reflected in the Compact and associated conditions precedent, and that indeed those reforms in the Program are in line with actions the GoG is already taking and believes are necessary to ensuring a well-performing energy sector. The proposed two tranche approach to Compact funding was also discussed with the GoG and accepted as an important component of the program design. MCC required the GoG to meet a set of five policy reform milestones prior to presenting the Compact to the Board for approval. In line with its commitment to 3 See E:\FR\FM\14AUN1.SGM footnote 2. 14AUN1 Federal Register / Vol. 79, No. 157 / Thursday, August 14, 2014 / Notices the Compact, the GoG has met each of these milestones, as described below. • Approval of the Gas Sector Action Plan. An acceptable short-term Gas Sector Action Plan was submitted to MCC by the Minister of Energy and Petroleum. The GoG, with the support of the World Bank, is currently drafting a comprehensive long-term gas sector master plan, which will be complete by the end of 2014. Approval of the terms of that gas sector master plan by MCC and its adoption by the GoG are conditions to entry into force of the Compact. • Finalize the Jubilee gas supply agreement. The Ghana National Gas Company (‘‘GNGC’’) and Jubilee Partners have signed the agreement related to infrastructure needed for gas supply from the Jubilee gas fields. This agreement facilitates the completion of infrastructure by GNGC that complements private sector infrastructure and is a necessary predicate to commercial agreements to be signed in the future. • Agree to PSP option for ECG and NEDCo. The details of the agreement were discussed during Compact negotiations and are memorialized in the compact document. • Submit an action plan to substantially reduce GoG arrears to ECG and implement plan to move Government Ministries, Departments and Agencies to regular and current payment of utility bills. The Minister of Finance provided a letter to MCC on June 30, 2014 detailing the total amount of arrears owed to ECG by the GoG and outlining a projected path to repayment. • Continue quarterly tariff adjustments. Ghana’s utility regulator, the Public Utilities Regulatory Commission, announced a quarterly tariff adjustment on June 27, 2014. The new tariff took effect on July 1, 2014. These were not easy milestones to meet, and they are instrumental to achieving the deep and lasting change MCC and the GoG want to achieve in the energy sector through the Compact. MCC is confident that the GoG’s strong commitment to reform will continue as the Program moves forward. tkelley on DSK3SPTVN1PROD with NOTICES [FR Doc. 2014–19196 Filed 8–13–14; 8:45 am] BILLING CODE 9211–03–P VerDate Mar<15>2010 16:42 Aug 13, 2014 Jkt 232001 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION [Notice 14–080] NASA Advisory Council; Human Exploration Operations Committee; Research Subcommittee; Meeting National Aeronautics and Space Administration. ACTION: Notice of meeting. AGENCY: In accordance with the Federal Advisory Committee Act, Public Law 92–462, as amended, the National Aeronautics and Space Administration (NASA) announces a meeting of the Research Subcommittee of the Human Exploration and Operations Committee (HEOC) of the NASA Advisory Council (NAC). This Subcommittee reports to the HEOC. DATES: Friday, September 12, 2014, 10:00 a.m. to 4:00 p.m., Local Time. ADDRESSES: NASA Headquarters, Room 7H41A, 300 E Street SW., Washington, DC 20546. FOR FURTHER INFORMATION CONTACT: Dr. Bradley Carpenter, Human Exploration and Operations Mission Directorate, NASA Headquarters, Washington, DC 20546 (202) 358–0826, or bcarpenter@ nasa.gov. SUMMARY: The meeting will be open to the public up to the capacity of the room. This meeting is also available telephonically and by WebEx. Any interested person may call the USA toll free conference call number 844–467–6272 or toll number 720–259–6462, pass code 136444, to participate in this meeting by telephone. The WebEx link is https:// nasa.webex.com/, the meeting number is 990 340 786, and the password is Friday0912# The agenda for the meeting includes the following topics: —Omics and Open Science Status —ISS National Laboratory Overview —International Cooperation in Space Research SUPPLEMENTARY INFORMATION: Attendees will be requested to sign a register and to comply with NASA security requirements, including the presentation of a valid picture ID to Security before access to NASA Headquarters. Foreign nationals attending this meeting will be required to provide a copy of their passport and visa in addition to providing the following information no less than 10 working days prior to the meeting: Full name; gender; date/place of birth; citizenship; visa information (number, type, expiration date); passport information (number, country, PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 47687 expiration date); employer/affiliation information (name of institution, address, country, telephone); title/ position of attendee; and home address to Dr. Bradley Carpenter via email at bcarpenter@nasa.gov or by fax at (202) 358–2886. U.S. citizens and Permanent Residents (green card holders) are requested to submit their name and affiliation 3 working days prior to the meeting to Dr. Carpenter. It is imperative that the meeting be held on these dates to accommodate the scheduling priorities of the key participants. Patricia D. Rausch, Advisory Committee Management Officer, National Aeronautics and Space Administration. [FR Doc. 2014–19237 Filed 8–13–14; 8:45 am] BILLING CODE 7510–13–P NATIONAL AERONAUTICS AND SPACE ADMINISTRATION [Notice (14–079)] NASA International Space Station Advisory Committee; Meeting National Aeronautics and Space Administration (NASA). ACTION: Notice of Meeting. AGENCY: In accordance with the Federal Advisory Committee Act, Public Law 92–463, as amended, the National Aeronautics and Space Administration announces a meeting of the NASA International Space Station (ISS) Advisory Committee. The purpose of the meeting is to review all aspects related to the safety and operational readiness of the ISS, and to assess the possibilities for using the ISS for future space exploration. DATES: Tuesday, September 9, 2014, 1:00–2:00 p.m., Local Time. ADDRESSES: NASA Headquarters, Conference Center CU24, 300 E Street SW., Washington, DC 20546. Note: CU24 is located in the Conference Center on the Concourse-level of NASA Headquarters. FOR FURTHER INFORMATION CONTACT: Mr. Greg Mann, Office of International and Interagency Relations, (202) 358–5140, NASA Headquarters, Washington, DC 20546–0001. SUPPLEMENTARY INFORMATION: This meeting will be open to the public up to the seating capacity of the room. This meeting is also accessible via teleconference. To participate telephonically, please contact Mr. Greg Mann (202–358–5140) before 4:30 p.m., local time, September 8, 2014. You will need to provide your name, affiliation, SUMMARY: E:\FR\FM\14AUN1.SGM 14AUN1

Agencies

[Federal Register Volume 79, Number 157 (Thursday, August 14, 2014)]
[Notices]
[Pages 47684-47687]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-19196]


=======================================================================
-----------------------------------------------------------------------

MILLENNIUM CHALLENGE CORPORATION

[MCC FR 14-04]


Notice of Entering Into a Compact With the Republic of Ghana

AGENCY: Millennium Challenge Corporation.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: In accordance with Section 610(b)(2) of the Millennium 
Challenge Act of 2003 (22 U.S.C. 7701-7718), the Millennium Challenge 
Corporation (MCC) is publishing a summary of the Millennium Challenge 
Compact between the United States of America, acting through the 
Millennium Challenge Corporation, and the Republic of Ghana. 
Representatives of the United States Government and Ghana executed the 
Compact documents on August 5, 2014. The complete text of the Compact 
has been posted at mcc.gov.

    Dated: August 8, 2014.
John C. Mantini,
Assistant General Counsel, Millennium Challenge Corporation.

Summary of Millennium Challenge Compact With the Republic of Ghana

1. Overview

    MCC's Board of Directors has approved a five-year, $498.2 million 
compact with the Republic of Ghana aimed at reducing poverty and 
accelerating economic growth (the ``Compact''). The Compact is intended 
to assist the Government of Ghana (``GoG'') to increase economic growth 
by addressing problems in the power sector through private sector 
investment in power generation and distribution as well as improvements 
that will reduce load shedding, power losses, and outages that 
currently affect millions of Ghanaians (the ``Program''). The Program 
will support the turnaround of Ghana's electricity sector and stimulate 
private investment to create a self-sustaining sector meeting the 
current and future needs of households and business while ensuring 
inclusive access to power by its citizens.

2. Program Overview and Budget

    The Compact focuses on turning around the main public electricity 
distribution company through the introduction of private sector 
participation as well as targeted infrastructure investments and 
reforms in power generation. The targeted investments and reforms will 
jointly contribute to a more functional, credit worthy, and self-
sustaining power sector.
    Due to the desire to create sustainable change and economic growth, 
MCC has made the Compact contingent on private sector participation 
(``PSP'') as well as reforms intented to improve the financial position 
of the distribution utilities, enable gas supply for the energy sector, 
and ensure a cost reflective tariff regime. In addition, MCC included a 
second tranche of conditional program funding to be made available only 
if essential reforms milestones are met, including actual 
implementation of the PSP transaction and continued progress toward a 
cost reflective tariff.
    The Compact includes base funding of $308.2 million and conditional 
funding of up to $190 million which would be released only after 
significant agreed-upon reforms are adopted by the GoG. The budget is 
shown in Figure 1 below.

[[Page 47685]]



                                Figure 1: Proposed Ghana Compact Budget Overview
                                   [Compact budget overview (millions of US$)]
----------------------------------------------------------------------------------------------------------------
                                                                                  MCC Tranche II
                                                                   MCC Tranche I   (conditional      Potential
                            Projects                              (base funding)     incentive       total MCC
                                                                                     funding)         funding
----------------------------------------------------------------------------------------------------------------
ECG Financial & Operational Turnaround Project..................           149.6             190  ..............
-------------------------------------------------------------------------------------------------
NEDCo Financial & Operational Turnaround Project................            54.2  ..............  ..............
---------------------------------------------------------------------------------
Regulatory Strengthening & Capacity Building Project............             5.0  ..............  ..............
---------------------------------------------------------------------------------
Access Project..................................................            10.0  ..............  ..............
---------------------------------------------------------------------------------
Power Generation Sector Improvement Project.....................            16.3  ..............           498.2
---------------------------------------------------------------------------------
Energy Efficiency & Demand Side Mgmt. Project...................            25.4  ..............  ..............
---------------------------------------------------------------------------------
Monitoring & Evaluation.........................................             7.6  ..............  ..............
---------------------------------------------------------------------------------
Program Administration and Oversight............................            40.2  ..............  ..............
-------------------------------------------------------------------------------------------------
    Total Investment............................................       \1\ 308.2             190  ..............
----------------------------------------------------------------------------------------------------------------

    As the  required conditions are met, the Tranche II funding that is 
part of the overall Compact will be allocated to the Electric Company 
of Ghana Financial and Operational Turnaround Project. If the 
conditions to the release of Tranche II funding are not met within two 
years of Entry into Force of the Compact, the $190 million will be de-
obligated from the Compact.
---------------------------------------------------------------------------

    \1\ Numbers do not add due to rounding.
---------------------------------------------------------------------------

    The Government of Ghana will contribute at least 7.5 percent of the 
total amount of MCC funding towards the implementation of the Compact.
    The Program can be divided into two general areas: Projects that 
focus on the distribution sector, and projects that focus on the 
generation sector.

3. Distribution Sector Investments

Utility Reforms: Electricity Company of Ghana (``ECG'') and Northern 
Electricity Distribution Company (``NEDCo'') Financial and Operational 
Turnaround Project
    The ECG Financial and Operational Turnaround Project, totaling 
$149.6 million, pursues a two-pronged approach--changing the governance 
and management of this Ghanaian electric utility by bringing in a 
private sector operator coupled with infrastructure and foundational 
investments designed largely to reduce losses and improve service 
quality. Specifically, the Project contains the following five 
interconnected activities:
     Private Sector Participation. Accepting the reform program 
as a condition of the Compact will signal Ghana's willingness to take 
bold moves to improve an underperforming sector that drags down 
economic growth in the country.
     Modernizing Utility Operations. Investments to support 
integrated loss management, such as technical assistance, to provide 
overall project management support.
     Reduction in Commercial Losses and Improvement of Revenue 
Collection. Reducing distribution system vulnerability to theft and 
meter manipulation and improving metering systems, including 
installation of pre-paid meters.
     Technical Loss Reduction. Interventions focused on 
lowering thermal losses in the distribution systems.
     Outage Reduction. Reducing both the frequency and duration 
of outages by introducing improved system protection and sectionalizing 
devices in the distribution system.
    The estimated economic rate of return (``ERR'') for the ECG 
Financial and Operational Turnaround Project is 19 percent. The initial 
estimated beneficiaries of this Project are 4.8 million people in the 
short term and 7.8 million people long-term.
    The NEDCo Financial and Operational Turnaround Project will 
initially provide $5 million in technical assistance to improve 
operations of NEDCo. No later than the conclusion of the first year of 
Compact implementation, MCC will evaluate ERRs for possible system and 
infrastructure investments and if resulting ERRs are acceptable, MCC 
will make investments up to $49.2 million.
Regulatory Strengthening and Capacity Building Project
    The activities under the Regulatory Strengthening and Capacity 
Building Project, which totals $5 million, are two-fold--tariff review, 
focused on the process of ratemaking and more specifically on the 
structure of tariffs, and capacity building of the sector performance 
monitoring capabilities to ensure better reporting:
     Sector Performance Monitoring Capacity Building. Improving 
the regulatory monitoring and independent verification of sector 
performance.
     Tariff Review and Regulation. Improving the tariff review 
process by supporting studies that will provide critical inputs to the 
redesign of the tariff structure prior to implementation of the PSP and 
the next round of ratemaking and technical assistance to the 
regulators.
    The economic and beneficiary analyses combine the Regulatory 
Strengthening and Capacity Building Project with the ECG Financial and 
Operational Turnaround Project calculations as the results of the two 
Projects are closely linked.
Access Project
    The Access Project, totaling $10 million, will test the most cost 
effective approaches to address the key constraints that micro, small 
and medium enterprises (``MSMEs'') face in obtaining safe and legal 
access to electricity. This small Project is designed to be innovative 
and experimental--it will test several different interventions aimed at 
reducing critical barriers to legal

[[Page 47686]]

connections for MSMEs in a small sample of markets and economic 
enclaves and provide evidence of effective approaches to increasing 
legal access for the distribution utilities. In addition to the direct 
benefits the Project would have for the MSMEs, increasing access will 
also expand the customer base of the utilities to include these 
important stakeholders and ensure that they are beneficiaries of 
improvements in the Ghanaian power sector. The Access Project will also 
address the problems caused by illegal connections, improve safety and 
security in target areas, and strengthen relationships between end 
users, local government, and the utility companies. The Project 
includes two activities:
     Improving Electricity Supply to MSMEs and Social 
Institutions. Upgrades will be made to target selected markets and 
economic enclaves that are within the intervention sites of the ECG and 
NEDCo Financial and Operational Turnaround Projects, and to the extent 
possible, nearby social institutions. The activity will also provide 
metered public lighting in the targeted areas.
     Improving Service Delivery and Strengthening Partnerships. 
This activity will seek to alleviate the various barriers (including a 
high connection fee, cumbersome connection processes and weak 
coordination among key actors including utility companies, local 
government and the communities) that prevent MSMEs from having legal 
access to electricity.
    These activities are expected to contribute to increased incomes 
for MSMEs; firm ERRs for this Project, however, are not yet available. 
At this time, data needed to undertake an assessment of the proposed 
intervention is still being collected. Robust economic evaluations will 
identify promising interventions that could be scaled up during or 
after the compact and will provide evidence of effective strategies for 
increasing access to electricity in markets and enclaves across Ghana.

4. Generation Sector Investments

    The generation sector investments adopt two strategies to make more 
energy available. The first is to make better use of the electricity 
already in the system by reducing waste. The second is to foster an 
enabling environment for investments to expand generation capacity.
Power Generation Sector Improvement Project
    This $16.3 million Project prioritizes the alleviation of major 
constraints to private sector investment in generation through the 
following three activities:
     Operationalize the ``Gas to Power'' Value Chain. The lack 
of reliable fuel supply is a significant barrier to securing affordable 
and sustainable generation capacity and has led to unplanned load 
shedding and outages in the past few years. The Compact will leverage 
ongoing advisory support provided by USAID by providing both the 
impetus to act (achievable, action-oriented conditions precedent linked 
to first disbursement of project funds) and continued support to the 
GoG to ensure that decisions regarding institutionalization, 
commercialization, and securitization of the gas sector are informed 
and serve Ghana's best interest.
     Facilitate Liquefied Natural Gas (LNG) Development. 
Studies have shown that even with gas from domestic sources and the 
West African Gas Pipeline, Ghana will need additional fuel to support 
projected increases in electricity demand. The private sector has 
expressed an interest in building the required infrastructure 
associated with importing LNG and MCC is funding the technical 
feasibility studies required to provide a `shovel-ready' project.
     Strengthen Sector Planning and IPP Framework. Ghana does 
not have an active and integrated master plan to guide the development 
of its growing energy sector, or an established competitive process for 
procuring Independent Power Providers (``IPPs''). This has led to 
uneven, opaque, and costly additions to capacity that may not be 
consistent with a least cost plan. The activity will support the 
development of a least cost plan that addresses generation, 
transmission, distribution and demand side management in a holistic and 
integrated fashion, as well as capacity building within the entities 
responsible for sector planning. It will also allow the Government to 
conduct more effective strategic planning for the electricity grid and 
off grid systems and provide generation capacity from both traditional 
and renewable sources.
    The estimated ERR for this Project is 24 percent. The initial 
beneficiaries of the Project are 19.6 million people and the long-term 
beneficiaries are 41.8 million people.\2\
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    \2\ This is a 20-year projection based on a population growth 
rate of 2.3 percent.
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Energy Efficiency and Demand Side Management Project
    Energy efficiency and demand-side management policies and 
investments represent some of the most cost-effective means to bridge 
the gap between supply and demand, serving as sources of new energy 
supply. Reducing energy waste on the consumer side of the electricity 
meter decreases the growth of demand and reduces the investment that is 
needed in the electricity system to maintain needed capacity and 
reliability. This $25.4 million Project includes four activities:
     Development and Enforcement of Standards and Labels. Most 
energy-using products do not have standards or labelling requirements 
and the standards that do exist would benefit greatly from technical 
updates and enforcement support.
     Improved Energy Auditing. Energy efficiency auditing and 
energy services company market support includes technical capacity-
building for energy efficiency and energy management professionals.
     Education and Public Information. Awareness, education, 
and information activities help assure that both technical workers and 
the general public are aware of cost-effective energy saving 
opportunities.
     Demand Side Management Infrastructure. This activity would 
support piloting of distributed applications such as solar photo 
voltaic back-up power for lighting and electronics, off-grid solar 
systems, and grid-connected solar systems as well as the conversion of 
conventional street lights to LED street lighting.

The estimated ERR for this Project is 27 percent. The estimated 
beneficiaries for this Project are 19.6 million people in the short 
term and 41.8 million people long-term.\3\
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    \3\ See footnote 2.
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5. Policy Reform Milestones

    The Compact is tied to a number of reforms, specifically: Improving 
the creditworthiness of ECG, ensuring reliable gas supply for power 
generation, instituting a cost reflective tariff, and commercialization 
of the distribution utilities. The GoG has given MCC certain assurances 
through the negotiations process of its support for the policy, 
regulatory, and institutional reform agenda reflected in the Compact 
and associated conditions precedent, and that indeed those reforms in 
the Program are in line with actions the GoG is already taking and 
believes are necessary to ensuring a well-performing energy sector. The 
proposed two tranche approach to Compact funding was also discussed 
with the GoG and accepted as an important component of the program 
design.
    MCC required the GoG to meet a set of five policy reform milestones 
prior to presenting the Compact to the Board for approval. In line with 
its commitment to

[[Page 47687]]

the Compact, the GoG has met each of these milestones, as described 
below.
     Approval of the Gas Sector Action Plan. An acceptable 
short-term Gas Sector Action Plan was submitted to MCC by the Minister 
of Energy and Petroleum. The GoG, with the support of the World Bank, 
is currently drafting a comprehensive long-term gas sector master plan, 
which will be complete by the end of 2014. Approval of the terms of 
that gas sector master plan by MCC and its adoption by the GoG are 
conditions to entry into force of the Compact.
     Finalize the Jubilee gas supply agreement. The Ghana 
National Gas Company (``GNGC'') and Jubilee Partners have signed the 
agreement related to infrastructure needed for gas supply from the 
Jubilee gas fields. This agreement facilitates the completion of 
infrastructure by GNGC that complements private sector infrastructure 
and is a necessary predicate to commercial agreements to be signed in 
the future.
     Agree to PSP option for ECG and NEDCo. The details of the 
agreement were discussed during Compact negotiations and are 
memorialized in the compact document.
     Submit an action plan to substantially reduce GoG arrears 
to ECG and implement plan to move Government Ministries, Departments 
and Agencies to regular and current payment of utility bills. The 
Minister of Finance provided a letter to MCC on June 30, 2014 detailing 
the total amount of arrears owed to ECG by the GoG and outlining a 
projected path to repayment.
     Continue quarterly tariff adjustments. Ghana's utility 
regulator, the Public Utilities Regulatory Commission, announced a 
quarterly tariff adjustment on June 27, 2014. The new tariff took 
effect on July 1, 2014.
    These were not easy milestones to meet, and they are instrumental 
to achieving the deep and lasting change MCC and the GoG want to 
achieve in the energy sector through the Compact. MCC is confident that 
the GoG's strong commitment to reform will continue as the Program 
moves forward.

[FR Doc. 2014-19196 Filed 8-13-14; 8:45 am]
BILLING CODE 9211-03-P