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Mcc Agreement

Mcc Agreement

The document makes it clear that the Sri Lankan government is “the primary responsibility for monitoring and managing implementation” of projects, and legal advice signed by the Sri Lankan GA must be sought before the agreement enters into force. Even after the signing of the agreement, Sri Lanka still has the option of amending the agreement, provided that these amendments do not exceed the funding allowance allocated or extend the grant period by five years. Togo is an interesting case given its proximity to the other parties on the next regional pact. However, we do not expect it to be selected this year for compact eligibility. Togo was selected in the 2016 GJ for the growth programme, but the development of the programme was delayed due to concerns about the government`s repression of protesters. Although the MCC and the Government of Togo signed an agreement on the growth agenda earlier this year, the Agency will likely want to see how the partnership develops before considering a transition to a pact. She will likely want to continue to monitor the government environment, particularly in light of recent delays in scheduled elections and a constitutional decision that allows the president (in power since 2005, when he replaced his father) to run for re-election for life. Given that these early regional efforts are still at an early stage and that the MCC has limited flexibility this year to acquire many new countries, we do not expect the Board of Directors to select new countries for regional investments. But we will probably see some changes in the current grouping. Again this year, the five countries selected last year passed the scoreboard.

But MCC will probably pull Ghana out of participation. The agency recently announced the denunciation of a $190 million bilateral tranche for Ghana, which focuses on the energy sector. This measure was taken in response to the decision of the Government of Ghana – contrary to one of the terms of the pact – to end its concession with a private electricity supplier. While the regional pact would be a separate investment, Congress has highlighted, by giving MCC a new regional authority, that countries can only be eligible for regional agreements if they “make significant and demonstrable progress in implementing the terms of the existing pact.” The agreement has been at the centre of heated debates and political conflicts in recent months: the president has refused to approve the agreement before the end of his term, a petition of fundamental rights (FR) against the signing of the agreement, which will be filed before the Supreme Court, and even an almost orchestrated protest earlier this week. The U.S. government`s Millennium Challenge Corporation (MCC) and the Benin government signed a $375 million grant agreement or pact focused on Benin`s energy sector in September 2015. The Benin government is supporting MCC`s investment with an additional $28 million.