6 August 2005 Source: http://www.access.gpo.gov/su_docs/aces/fr-cont.html ----------------------------------------------------------------------- [Federal Register: August 5, 2005 (Volume 70, Number 150)] [Notices] [Page 45442-45444] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr05au05-96] ======================================================================= ----------------------------------------------------------------------- MILLENNIUM CHALLENGE CORPORATION [MCC FR 05-15] Report on Countries That Are Candidates for Millennium Challenge Account Eligibility in Fiscal Year 2006 and Countries That Would Be Candidates but for Legal Prohibitions AGENCY: Millennium Challenge Corporation (MCC). SUMMARY: Section 608(d) of the Millennium Challenge Act of 2003 requires the Millennium Challenge Corporation to publish a report that identifies countries that are ``candidate countries'' for Millennium Challenge Account assistance during FY 2006. The report is set forth in full below. Report on Countries That Are Candidates for Millennium Challenge Account Eligibility in Fiscal Year 2006 and Countries That Would Be Candidates but for Legal Prohibitions Summary: This report to Congress is provided in accordance with Section 608(a) of the Millennium Challenge Act of 2003, 22 U.S.C.A. 7701, 7707(a) (``Act''). The Act authorizes the provision of Millennium Challenge Account (MCA) assistance to countries that enter into Compacts with the United States to support policies and programs that advance the prospects of such countries achieving lasting economic growth and poverty reduction. The Act requires Millennium Challenge Corporation (MCC) to take a number of steps in determining the countries that, based on their demonstrated commitment to just and democratic governance, economic freedom and investing in their people, will be eligible for MCA assistance during Fiscal Year (FY) 2006. These steps include the submission of reports to the congressional committees specified in the Act and the publication of notices in the Federal Register that identify: 1. The countries that are ``candidate countries'' for MCA assistance during FY 2006 based on their per-capita income levels and their eligibility to receive assistance under U.S. law and countries that would be candidate countries but for legal prohibitions on assistance (Section 608(a) of the Act); 2. The criteria and methodology that the MCC Board of Directors (``Board'') will use to measure and evaluate the relative policy performance of the ``candidate countries'' consistent with the requirements of Section 607 of the Act in order to select ``MCA eligible countries'' from among the ``candidate [[Page 45443]] countries'' (Section 608(b) of the Act); and 3. The list of countries determined by the Board to be ``MCA eligible countries'' for FY 2006, including which of the MCA eligible countries the Board will seek to enter into MCA Compacts (Section 608(d) of the Act). This report is the first of three required reports listed above. Candidate Countries for FY 2006 The Act requires the identification of all countries that are candidates for MCA assistance in FY 2006 and the identification of all countries that would be candidate countries but for legal prohibitions on assistance. Sections 606(a) and (b) of the Act provide that during FY 2006 a country shall be a candidate for the MCA if it: Meets one of the following two income level tests: [cir] Has a per capita income equal to or less than the historical ceiling of the International Development Association eligibility for the fiscal year involved (or $1,575 gross national income (GNI) per capita for FY 2006) (the ``Low Income Category''); or [cir] Is classified as a lower middle income country in the then most recent edition of the World Development Report for Reconstruction and Development published by the International Bank and has an income greater than the historical ceiling for International Development Association eligibility for the fiscal year involved (or $1,575 to $3,255 GNI per capita for FY 2006) (the ``Lower Middle Income Category''); and Is not subject to legal provisions that prohibit it from receiving U.S. economic assistance under Part I of the Foreign Assistance Act of 1961, as amended, or any other provision of law. Pursuant to Section 606(c) of the Act, the Board has identified the following countries as candidate countries under the Act for FY 2006. In so doing, the Board has anticipated that prohibitions against assistance that applied to countries during FY 2005 will again apply during FY 2006, even though the Foreign Operations, Export Financing and Related Appropriations Act for FY 2006 has not yet been enacted and certain findings under other statutes have not yet been made. As noted below, MCC will provide any required updates on subsequent changes in applicable legislation or other circumstances that would affect the status of countries as candidate countries for FY 2006. Low Income Category 1. Afghanistan 2. Angola 3. Armenia 4. Azerbaijan 5. Bangladesh 6. Benin 7. Bhutan 8. Bolivia 9. Burkina Faso 10. Cameroon 11. Chad 12. China 13. Comoros 14. Congo, Democratic Republic of the 15. Congo, Republic of the 16. Djibouti 17. East Timor 18. Egypt 19. Eritrea 20. Ethiopia 21. Gambia 22. Georgia 23. Ghana 24. Guinea 25. Guinea-Bissau 26. Guyana 27. Haiti 28. Honduras 29. India 30. Indonesia 31. Iraq 32. Kenya 33. Kiribati 34. Kyrgyzstan 35. Laos 36. Lesotho 37. Liberia 38. Madagascar 39. Malawi 40. Mali 41. Mauritania 42. Moldova 43. Mongolia 44. Morocco 45. Mozambique 46. Nepal 47. Nicaragua 48. Niger 49. Nigeria 50. Pakistan 51. Papua New Guinea 52. Paraguay 53. Philippines 54. Rwanda 55. Sao Tome and Principe 56. Senegal 57. Sierra Leone 58. Solomon Islands 59. Sri Lanka 60. Tajikistan 61. Tanzania 62. Togo 63. Turkmenistan 64. Uganda 65. Ukraine 66. Vanuatu 67. Vietnam 68. Yemen 69. Zambia Lower Middle Income Category 1. Albania 2. Algeria 3. Belarus 4. Brazil 5. Bulgaria 6. Cape Verde 7. Colombia 8. Dominican Republic 9. Ecuador 10. El Salvador 11. Fiji Islands 12. Guatemala 13. Jamaica 14. Jordan 15. Kazakhstan 16. Macedonia 17. Maldives 18. Marshall Islands 19. Micronesia, Federated States of 20. Namibia 21. Peru 22. Romania 23. Samoa 24. Suriname 25. Swaziland 26. Thailand 27. Tonga 28. Tunisia 29. Tuvalu Countries That Would Be Candidate Countries but for Statutory Provisions That Prohibit Assistance Countries that would be considered candidate countries during FY 2006, but are subject to legal provisions that prohibit them from receiving U.S. economic assistance under part I of the Foreign Assistance Act of 1961, as amended (``Foreign Assistance Act''), or any other provision of law are listed below. As noted above, this list is based on legal prohibitions against economic assistance that apply during FY 2005 and that are anticipated to apply again during FY 2006. 1. Bosnia and Herzegovina is subject to Section 561 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005 (``FY 2005 Appropriations Act''), which prohibits assistance to any country whose competent authorities have failed, as determined by the Secretary of State, to take necessary and significant steps to implement its international legal obligations with respect to the International Criminal Tribunal for the former Yugoslavia. 2. Burma is subject to Section 570 of the FY 1997 Foreign Operations Act which prohibits assistance to the government with certain narrow exceptions. In addition, Burma has been identified as a major drug-transit or major illicit drug producing country for 2005 (Presidential Determination No.2004-47, 9/28/04) and designated as having ``failed demonstrably'' to adhere to its international obligations and take the measures required by Section 489(a)(1) of the Foreign Assistance Act, thus making Burma ineligible for assistance. Burma is listed as a Tier III country under the Trafficking Victims Protection Act for not complying with minimum standards for eliminating [[Page 45444]] trafficking and not making significant efforts to comply (Presidential Determination No. 2004-46, 9/10/04). 3. Burundi is subject to Section 508 of the FY 2005 Appropriations Act which prohibits assistance to the government of a country whose duly elected head of government is deposed by decree or military coup. 4. Section 554(b) of the FY 2005 Appropriations Act prohibits assistance to the central Government of Cambodia, except in specified circumstances. 5. The Central African Republic is subject to Section 508 of the FY 2005 Appropriations Act which prohibits assistance to the government of a country whose duly elected head of government is deposed by decree or military coup. 6. The Cote d'Ivoire is subject to Section 508 of the FY 2005 Appropriations Act which prohibits assistance to the government of a country whose duly elected head of government is deposed by decree or military coup. 7. Section 507 of the FY 2005 Appropriations Act prohibits direct assistance to Cuba. The Cuban Liberty and Democratic Solidarity Act of 1996 (Pub. L. 104-114) requires the President to take all necessary steps to ensure that no funds or other assistance is provided to the Cuban government. Cuba is also subject to Section 620A of the Foreign Assistance Act. 8. Section 507 of the FY 2005 Appropriations Act prohibits direct assistance to Iran. Iran is also subject to Section 620A of the Foreign Assistance Act. 9. Section 507 of the FY 2005 Appropriations Act prohibits direct assistance to North Korea. North Korea is also subject to Section 620A of the Foreign Assistance Act. 10. Serbia and Montenegro is subject to Section 561of the FY 2005 Appropriations Act which prohibits assistance to any country whose competent authorities have failed, as determined by the Secretary of State, to take necessary and significant steps to implement its international legal obligations with respect to the International Criminal Tribunal for the former Yugoslavia. 11. Somalia is subject to Section 620(q) of the Foreign Assistance Act and Section 512 of the FY 2005 Appropriations Act which prohibit assistance to countries in default in payment to the U.S. in certain circumstances. 12. Sudan is subject to Section 620(q) of the Foreign Assistance Act and Section 512 of the FY 2005 Appropriations Act which prohibit assistance to countries in default in payment to the U.S. in certain circumstances. Sudan also is subject to Section 508 of the FY 2005 Appropriations Act and Section 620A of the Foreign Assistance Act. Sudan is also prohibited from receiving assistance under the Trafficking Victims Protection Act for not complying with minimum standards for eliminating trafficking and not making significant efforts to comply (Presidential Determination No. 2004-46, 9/10/04). 13. Section 507 of the FY 2005 Appropriations Act prohibits direct assistance to Syria. Syria is also subject to Section 620A of the Foreign Assistance Act. 14. Section 577 of the FY 2005 Appropriations Act requires that funds appropriated for assistance to the central Government of Uzbekistan may be made available only if the Secretary of State determines and reports to the Congress that the government is making substantial and continuing progress in meeting its commitments under a framework agreement with the U.S. 15. Zimbabwe is subject to Section 620(q) of the Foreign Assistance Act and Section 512 of the FY 2005 Appropriations Act which prohibit assistance to countries in default in payment to the U.S. in certain circumstances. Countries identified above as candidate countries, as well as countries that would be considered candidate countries but for the applicability of legal provisions that prohibit U.S. economic assistance, may be the subject of future statutory restrictions or determinations, or changed country circumstances, that affect their legal eligibility for assistance under part I of the Foreign Assistance Act or any other provision of law during FY 2006. MCC will include any required updates on such statutory eligibility that affect countries' identification as candidate countries for FY 2006, at such time as it publishes the Notices required by Sections 608(b) and 608(d) of the Act or at other appropriate times. Any such updates with regard to the legal eligibility or ineligibility of particular countries identified in this report will not affect the date on which the Board is authorized to determine eligible countries from among candidate countries which, in accordance with Section 608(a) of the Act, shall be no sooner than 90 days from the date of publication of this report. Dated: August 1, 2005. Jon A. Dyck, Vice President & General Counsel, Millennium Challenge Corporation. [FR Doc. 05-15496 Filed 8-4-05; 8:45 am] BILLING CODE 9210-01-P