82 FR 45318 - Notice of Entering Into a Compact With the Federal Democratic Republic of Nepal
MILLENNIUM CHALLENGE CORPORATION Federal Register Volume 82, Issue 187 (September 28, 2017)
Federal Register Volume 82, Issue 187 (September 28, 2017)
| Page Range | 45318-45321 | |
| FR Document | 2017-20847 |
[Federal Register Volume 82, Number 187 (Thursday, September 28, 2017)] [Notices] [Pages 45318-45321] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-20847] ======================================================================= ----------------------------------------------------------------------- MILLENNIUM CHALLENGE CORPORATION [MCC FR 17-05] Notice of Entering Into a Compact With the Federal Democratic Republic of Nepal 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), as amended, and the heading ``Millennium Challenge Corporation'' of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2017, the Millennium Challenge Corporation (MCC) is publishing a summary of the Millennium Challenge Compact between the United States of America, acting through MCC, and the Republic of Nepal. Representatives of MCC and Nepal signed the compact on September 14, 2017. The complete text of the compact has been posted at: https://assets.mcc.gov/content/uploads/compact-nepal.pdf. Dated: September 25, 2017. Jeanne M. Hauch, Vice President and General Counsel, Millennium Challenge Corporation. Summary of the Nepal Compact Overview of MCC Nepal Compact MCC's Board of Directors has approved a five-year, $500 million compact with Nepal aimed at reducing poverty through economic growth. The compact seeks to assist Nepal in addressing two binding constraints to economic growth: (i) Inadequate supply of electricity; and (ii) high cost of transportation. The compact will address these binding constraints by investing in two projects: The Electricity Transmission Project and the Road Maintenance Project. Background and Context Nepal's economic growth, labor productivity, and gross domestic product per capita are among the lowest [[Page 45319]] in South Asia. A decade of civil and political unrest from 1996 to 2006 continues to shape the social, economic, and political landscape of the country. The people of Nepal continue to deal with the fallout from a series of devastating earthquakes in 2015 that killed nearly 9,000 people and pushed an additional million below the poverty line. Almost half a million people leave the country each year for economic opportunities elsewhere. In September 2017, Nepal will hold the final phase of a three-phase local, democratic election in hundreds of municipalities throughout the country. These local elections are the first in 20 years and the first to be held since Nepal ratified its constitution in 2015, a critical step in continuing to foster transparency and accountability in government. The proposed compact is designed to address the underlying causes of two binding constraints to Nepal's growth: Inadequate supply of electricity and high cost of transportation. Nepal suffers from the worst electricity shortages in South Asia, and new investment in Nepal's electricity sector is critical to achieve economic growth. Only half of the demand for electricity can be met by the nation's grid, which has resulted in load-shedding of up to 18 hours a day during the dry winter months when hydropower generation is low. The constraints to growth analysis found that the low availability of electricity creates significant costs for businesses that must run generators on expensive imported fuel. The availability of electricity is further reduced by Nepal's constrained ability to import power when needed and the high level of losses in transmission and distribution system. The transportation sector has also suffered from Nepal's past political instability, inadequate investment, weak planning, and poor project execution. These factors have contributed to poor road quality, inefficient customs and border enforcement, an inefficient trucking industry, and inadequate road coverage. The Government of Nepal recognizes that investments in this sector are needed to reduce transportation costs and promote economic growth. Compact Overview and Budget After MCC selected Nepal as eligible for threshold program assistance in December 2011, MCC and the Government of Nepal conducted a constraints to growth analysis. When MCC's Board of Directors selected Nepal as eligible to develop a compact in December 2014, MCC and the Government of Nepal used the analysis completed for the threshold program to develop the proposed compact. MCC and Nepal identified four binding constraints and agreed to focus the proposed compact on the two best suited for MCC's assistance: The inadequate supply of electricity and the high cost of transportation. The proposed compact seeks to address the selected constraints by investing in two projects: the Electricity Transmission Project and the Road Maintenance Project. Nepal is already undertaking significant investments in the generation and distribution portions of the power sector value chain. The proposed Electricity Transmission Project therefore seeks to strengthen the transmission portion of the value chain, which has been weakened by historic underinvestment and poor implementation. The Electricity Transmission Project plans to add approximately 300 kilometers to the high-voltage transmission backbone inside Nepal, complete the Nepal portion of the second cross-border transmission line with India for increased electricity trade, and provide technical assistance aimed at improving the sustainability of Nepal's power sector. The compact will also support Nepal's establishment of an independent and capable power sector regulator, which is essential for maintaining open, non-discriminatory access to a transmission network with transparent pricing and clear rules of engagement. The Road Maintenance Project focuses on improving Nepal's road maintenance regime by providing technical assistance to key actors within the transportation sector. The Road Maintenance Project also includes an incentive-matching fund to encourage the expansion of Nepal's road maintenance budget, in addition to the periodic maintenance of up to 305 kilometers of the country's strategic road network. The following summary describes the components of Nepal's compact. The MCC investment for the compact is $500 million, with an additional $130 million committed by Nepal to support the compact program. ------------------------------------------------------------------------ Total Component (millions $) ------------------------------------------------------------------------ 1. Electricity Transmission Project..................... 398.2 1.1 Transmission Lines Activity..................... 228.2 1.2 Substation Activity............................. 114.0 1.3 Power Sector Technical Assistance Activity...... 22.4 1.4 Project Management Activity..................... 33.6 2. Roads Maintenance Project............................ 52.3 2.1 Technical Assistance Road Maintenance Reform.... 7.1 2.2 Strategic Road Maintenance Works................ 45.2 3. Monitoring and Evaluation............................ 9.5 3.1 Monitoring and Evaluation Activities............ 9.5 4. Program Administration and Oversight................. 40.0 4.1 MCA-Nepal Program Administration................ 23.4 4.2 Fiscal Agent, Procurement Agent, Audit.......... 16.6 --------------- Total MCC Contribution.......................... 500.0 Government of Nepal Contribution............ 130.0 --------------- Total Program Investment................ 630.0 ------------------------------------------------------------------------ [[Page 45320]] Nepal Compact Budget Project Summaries The Electricity Transmission Project: The objective of this project is to spur economic activity and growth by improving the availability and reliability of electricity supply in Nepal's power grid, thus increasing per capita electricity consumption. This project includes four activities:Transmission Lines Activity. This activity will focus on the construction of an estimated 300 kilometers of high voltage transmission lines in Nepal, providing a vital missing link to the existing high voltage grid. Most of the proposed transmission lines traverse mountainous terrain, starting near the Kathmandu Valley, moving to the west and then southwest to the Indian border. The particular lines were selected following careful analyses and feasibility studies that weighed their technical and economic merit, their importance in meeting Nepal's medium and long term electricity supply goals, and their consistency with Nepal's domestic and cross border transmission investment plans. The transmission line route was selected to minimize impact on people and sensitive geographic areas, to the extent possible. Moreover, the activity includes funding for certain community benefit-sharing activities in order to further mitigate potential social impacts from construction of the transmission lines. Potential activities include rural electrification through off- grid solutions and community empowerment programs. Substations Activity. This activity is complementary to the Transmission Lines Activity. The proposed compact contemplates constructing three substations. In combination with the transmission lines, these substations would help evacuate and transmit power collected from three major river basins where large hydropower projects are under construction by investors, many of which are private. The substation near Butwal would be the starting point for the transmission line to the Indian border and power grid. Power Sector Technical Assistance Activity. This activity seeks to strengthen the proposed power sector regulator (Electricity Regulatory Commission) to help bring transparency, efficiency, and competition to the power sector. The activity would help Nepal embed experts within the Electricity Regulatory Commission to improve the skills of this nascent agency in areas such as rule-making, dispute resolution, and economic and technical regulation. This activity would also help the Nepal Electricity Authority improve its transmission operations and prepare for oversight from the new independent electricity regulator. This will help establish a regulatory cost recovery system, improved grid operations, and better power system planning within the Nepal Electricity Authority. Program Management and Technical Oversight Activity. This activity is designed to complement the Transmission Lines and Substation Activities by supporting project management, environmental and social impact assessment, and engineering and technical supervision. This will allow the compact to properly implement the proposed infrastructure investments while complying with MCC's technical, environmental, and social standards. The Road Maintenance Project: The objective of this project is to avoid future increases in transportation costs across Nepal's road network by preventing further deterioration of maintained roads and to improve the administration of road maintenance. This project has two activities: Technical Assistance Activity. This activity is planned to build capacity for the Department of Roads and Roads Board Nepal in (1) improved data collection; (2) preparation of appropriate road maintenance plans and cost estimates; (3) improved prioritization of periodic maintenance; (4) improved contracting and contracting management; and (5) improved project management. Strategic Road Maintenance Works Activity. This activity seeks to complement and build upon the Technical Assistance Activity by incentivizing additional government spending on road maintenance. The activity would establish a matching fund to provide $2 for every $1 Nepal spends above its current average annual amount for road maintenance, up to a total of $15 million annually for three years. The activity would additionally provide for the physical maintenance of an initial 305 kilometers out of the 2,000 kilometers of Nepal's strategic road network. Economic Analysis The proposed Electricity Transmission Project has an estimated economic rate of return of 12 percent. The investment in Nepal's transmission system is expected to affect all grid-connected consumers, which represent 72 percent of Nepali households. With a projected population in 2024 of 31.5 million people, an estimated 23 million individual beneficiaries living in five million households are expected to benefit from this project. Fifty-two percent of the potential beneficiaries are estimated to be female. The estimated economic rate of return for the Road Maintenance Project is 29 percent. The 305 kilometers of roads proposed by Nepal for periodic maintenance under the compact are spread across five road segments in five geographic areas. The Project is expected to benefit approximately 924,000 people in 205,000 households. MCC anticipates that there will be overlap in the beneficiaries of the two proposed projects and thus ultimately expects the compact to benefit approximately 23 million individuals. Policy Reforms and the Compact MCC will require certain conditions to entry into force of the compact in order to ensure sustainability of compact investments. For example, given the proposed compact's focus and the clear need for a second cross-border transmission connection with India, MCC will require that technical and financial arrangements for the construction of the complementary investment in India be finalized before entry into force of the compact. This requirement is expected to be further strengthened through conditions regarding the Nepal portion of the cross-border transmission line that must be met for certain compact disbursements. The proposed compact includes several key reform elements, supported by technical assistance activities in each project. The Power Sector Technical Assistance Activity includes conditions to help Nepal create a transparent and efficient electricity market. MCC believes that the establishment of the Electricity Regulatory Commission as an independent and capable regulator is essential for maintaining open, non-discriminatory access to a transmission network with transparent pricing and clear rules of engagement for all power market participants, particularly investors in generation projects. The compact proposes to increase the utility's planning, operations, and cost recovery mechanisms to help ensure the sustainability of the proposed investments. Strengthening the utility's transmission operations should ensure its viability if Nepal decides to spin off or merge those operations with an independent transmission company. MCC has conditioned the entry into force of the compact on satisfactory progress toward parliamentary approval of a bill to establish the Electricity Regulatory Commission. Further, funding for the Power Sector Technical Assistance Activity will only be provided if the Electricity Regulatory [[Page 45321]] Commission bill has been passed by the Nepali parliament. For the Technical Assistance Activity in the Road Maintenance Project, MCC will provide compact funding for maintenance works only if Nepal increases its own historically low spending levels on road maintenance. The compact is expected to incentivize Nepal to increase its spending for road maintenance significantly by making MCC funding conditioned on increased Nepal spending. [FR Doc. 2017-20847 Filed 9-26-17; 11:15 am] BILLING CODE 9211-03-P
![45318 Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices
compliance officer to determine that an IV. Public Participation—Submission of et seq.) and Secretary of Labor’s Order
employer properly notified workers Comments on This Notice and Internet No. 1–2012 (77 FR 3912).
about the design and construction of, Access to Comments and Submissions Signed at Washington, DC, on September
and modifications made to, the trucks 19, 2017.
they are operating, and that an employer You may submit comments in
response to this document as follows: Loren Sweatt,
provided them with the required
(1) Electronically at http:// Deputy Assistant Secretary of Labor for
training. Occupational Safety and Health.
www.regulations.gov, which is the
II. Special Issues for Comment Federal eRulemaking Portal; (2) by [FR Doc. 2017–20770 Filed 9–27–17; 8:45 am]
OSHA has a particular interest in facsimile (fax); or (3) by hard copy. All BILLING CODE 4510–26–P
comments on the following issues: comments, attachments, and other
• Whether the proposed information materials must identify the Agency
collection requirements are necessary name and the OSHA docket number for MILLENNIUM CHALLENGE
for the proper performance of the the ICR (Docket No. OSHA–2011–0062). CORPORATION
Agency’s functions, including whether You may supplement electronic
[MCC FR 17–05]
the information is useful; submissions by uploading document
• The accuracy of OSHA’s estimate of files electronically. If you wish to mail Notice of Entering Into a Compact With
the burden (time and costs) of the additional materials in reference to an the Federal Democratic Republic of
information collection requirements, electronic or facsimile submission, you Nepal
including the validity of the must submit them to the OSHA Docket
methodology and assumptions used; Office (see the section of this notice AGENCY: Millennium Challenge
• The quality, utility, and clarity of titled ADDRESSES). The additional Corporation.
the information collected; and materials must clearly identify your ACTION: Notice.
• Ways to minimize the burden on electronic comments by your name,
employers who must comply. For date, and the docket number so that the SUMMARY: In accordance with Section
example, by using automated or other Agency can attach them to your 610(b)(2) of the Millennium Challenge
technological information collection comments. Act of 2003 (22 U.S.C. 7701–7718), as
and transmission techniques. amended, and the heading ‘‘Millennium
Because of security procedures, the
III. Proposed Actions use of regular mail may cause a Challenge Corporation’’ of the
significant delay in the receipt of Department of State, Foreign
OSHA is proposing to increase the Operations, and Related Programs
existing burden hour estimate of the comments. For information about
security procedures concerning the Appropriations Act, 2017, the
collection of information requirements Millennium Challenge Corporation
specified by the Standard. In this regard, delivery of materials by hand, express
delivery, messenger, or courier service, (MCC) is publishing a summary of the
the Agency is proposing to increase the Millennium Challenge Compact
current burden hour estimate from please contact the OSHA Docket Office
at (202) 693–2350, (TTY (877) 889– between the United States of America,
888,244 hours to 911,764 hours, a total acting through MCC, and the Republic
increase of 23,520 hours. The 5627).
of Nepal. Representatives of MCC and
adjustment increase is due to updated Comments and submissions are Nepal signed the compact on September
data indicating a growth in the number posted without change at http:// 14, 2017. The complete text of the
of powered industrial trucks from www.regulations.gov. Therefore, OSHA compact has been posted at: https://
1,179,441 to 1,210,679 and the number cautions commenters about submitting assets.mcc.gov/content/uploads/
of operators from 1,769,162 to personal information such as social compact-nepal.pdf.
1,816,018. security numbers and date of birth.
Upon further analysis, OSHA has Although all submissions are listed in Dated: September 25, 2017.
determined that these training the http://www.regulations.gov index, Jeanne M. Hauch,
provisions are not considered to be some information (e.g., copyrighted Vice President and General Counsel,
collections of information under the material) is not publicly available to Millennium Challenge Corporation.
PRA. In addition, the Agency was able read or download from this Web site. Summary of the Nepal Compact
to gather data updating the number of All submissions, including copyrighted
trucks and operators. The Agency will material, are available for inspection Overview of MCC Nepal Compact
summarize the comments submitted in and copying at the OSHA Docket Office. MCC’s Board of Directors has
response to this notice and will include Information on using the http:// approved a five-year, $500 million
this summary in the request to OMB. www.regulations.gov Web site to submit compact with Nepal aimed at reducing
Type of Review: Extension of a comments and access the docket is poverty through economic growth. The
currently approved collection. available at the Web site’s ‘‘User Tips’’ compact seeks to assist Nepal in
Title: Powered Industrial Trucks (29 link. Contact the OSHA Docket Office addressing two binding constraints to
CFR 1910.178). for information about materials not economic growth: (i) Inadequate supply
OMB Control Number: 1218–0242. available from the Web site, and for
Affected Public: Business or other for- of electricity; and (ii) high cost of
assistance in using the Internet to locate transportation. The compact will
profits. docket submissions.
Number of Respondents: 1,210,679. address these binding constraints by
Number of Responses: 2,397,144. V. Authority and Signature investing in two projects: The Electricity
Frequency of Reponses: On occasion; Transmission Project and the Road
annually; triennially. Loren Sweatt, Deputy Assistant Maintenance Project.
Average Time per Response: Various. Secretary of Labor for Occupational
Safety and Health, directed the Background and Context
Estimated Total Burden Hours:
427,866. preparation of this notice. The authority Nepal’s economic growth, labor
Estimated Cost (Operation and for this notice is the Paperwork productivity, and gross domestic
Maintenance): $256,626. Reduction Act of 1995 (44 U.S.C. 3506 product per capita are among the lowest
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![Federal Register / Vol. 82, No. 187 / Thursday, September 28, 2017 / Notices 45321
Commission bill has been passed by the meeting will be held at the Millennium I. Abstract
Nepali parliament. Challenge Corporation 1099 14th St. The information submitted by
For the Technical Assistance Activity NW., Suite 700, Washington, DC 20005. recipients is an annual report of
in the Road Maintenance Project, MCC Agenda: During the fall 2017 meeting Government-owned property in the
will provide compact funding for of the MCC Advisory Council, members possession of educational or nonprofit
maintenance works only if Nepal will discuss ways MCC can continue to institutions holding NASA grants. In
increases its own historically low bolster its relationship with the private addition to the annual report, a property
spending levels on road maintenance. sector and provide advice on MCC’s report may also be required at the end
The compact is expected to incentivize investments in the Northern Triangle of the grant, or on the occurrence of
Nepal to increase its spending for road and ongoing compact development in certain events. The collected
maintenance significantly by making Tunisia. information is used by NASA to
MCC funding conditioned on increased Public Participation: The meeting will effectively maintain an appropriate
Nepal spending. be open to the public. Members of the internal control system for equipment
[FR Doc. 2017–20847 Filed 9–26–17; 11:15 am] public may file written statement(s) and property provided or acquired
BILLING CODE 9211–03–P before or after the meeting. If you plan under grants and cooperative
to attend, please submit your name and agreements with institutions of higher
affiliation no later than Monday, education and other nonprofit
MILLENNIUM CHALLENGE October 9, to MCCAdvisoryCouncil@ organizations, and to comply with
CORPORATION mcc.gov to be placed on an attendee list. statutory requirements.
[MCC FR 17–07] Jeanne M. Hauch, II. Method of Collection
VP/General Counsel and Corporate Secretary,
Millennium Challenge Corporation Millennium Challenge Corporation. NASA is participating in Federal
Advisory Council efforts to extend the use of information
[FR Doc. 2017–20849 Filed 9–26–17; 11:15 am]
technology to more Government
AGENCY: Millennium Challenge BILLING CODE 9211–03–P
processes via Internet. NASA
Corporation. encourages recipients to use the latest
ACTION: Notice of open meeting. computer technology in preparing
NATIONAL AERONAUTICS AND documentation. Grant and Cooperative
SUMMARY: In accordance with the
SPACE ADMINISTRATION Agreement awardees submit annual
requirements of the Federal Advisory
property reports via an automated
Committee Act, 5 U.S.C.—App., the
[Notice: (17–069)] NASA Form 1018 by way of the NASA
Millennium Challenge Corporation
Electronic Submission System (NESS).
(MCC) Advisory Council was Notice of Information Collection Approximately 95% of reports are
established as a discretionary advisory
AGENCY: National Aeronautics and submitted via electronic means.
committee on June 14, 2016. The MCC
Advisory Council contributes to MCC’s Space Administration (NASA). III. Data
mission to reduce poverty through ACTION: Notice of information collection. Title: Property Inventory Report—
economic growth. The functions of the Grants with Educational and Nonprofit
MCC Advisory Council are to SUMMARY: The National Aeronautics and
Entities (formerly titled NASA
exclusively serve MCC in an advisory Space Administration, as part of its
Inventory Report: Property Management
capacity and provide insight regarding continuing effort to reduce paperwork
& Control, Grants).
innovations in infrastructure, and respondent burden, invites the
OMB Number: 2700–0047.
technology and sustainability, perceived general public and other Federal Type of Review: Extension of a
risks and opportunities in MCC partner agencies to take this opportunity to currently approved collection.
countries, new financing mechanisms comment on proposed and/or Affected Public: Educational
for developing country contexts, and continuing information collections, as institutions and not-for-profit
shared value approaches. The MCC required by the Paperwork Reduction institutions.
Advisory Council provides a platform Act of 1995. Estimated Number of Respondents:
for systematic engagement with the DATES: All comments should be 238.
private sector and other external submitted within 30 calendar days from Estimated Time per Response: 8.33
stakeholders. the date of this publication. hours.
DATES: The meeting will be held ADDRESSES: Interested persons are Estimated Total Annual Burden
October 17, 2017, from 9 a.m.–1:45 p.m. invited to submit written comments Hours: 1,983 hours.
regarding the proposed information Estimated Total Annual Cost:
EST.
collection to the Office of Information $67,552.
ADDRESSES: The meeting will be held at
the Millennium Challenge Corporation and Regulatory Affairs, Office of IV. Request for Comments
1099 14th St. NW., Suite 700 Management and Budget, 725 7th Street Comments are invited on: (1) Whether
Washington, DC 20005. NW., Washington, DC 20543. Attention: the proposed collection of information
FOR FURTHER INFORMATION CONTACT: For Desk Officer for NASA. is necessary for the proper performance
further information, contact Beth FOR FURTHER INFORMATION CONTACT: of the functions of NASA, including
Roberts at MCCAdvisoryCouncil@ Requests for additional information or whether the information collected has
mcc.gov or 202–521–3600 or visit copies of the information collection practical utility; (2) the accuracy of
https://www.mcc.gov/about/org-unit/ instrument and instructions should be NASA’s estimate of the burden
advisory-council. directed to Lori Parker, NASA Clearance (including hours and cost) of the
SUPPLEMENTARY INFORMATION: Officer, NASA Headquarters, 300 E proposed collection of information; (3)
Time and Place: Tuesday, October 17, Street SW., JF0000, Washington, DC ways to enhance the quality, utility, and
2017, from 9:00 a.m.–1:45 p.m. EST 20546 or email Lori.Parker-1@nasa.gov. clarity of the information to be
which includes a working lunch. The SUPPLEMENTARY INFORMATION: collected; and (4) ways to minimize the
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Document Created: 2017-09-28 01:33:03
Document Modified: 2017-09-28 01:33:03
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| FR Citation | 82 FR 45318 |
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