U.S. Congress Approves $480 Million MCC Compact for Sierra Leone
The United States Congress has reportedly approved a $480 million compact grant through the Millennium Challenge Corporation (MCC) to support Sierra Leone's development. This significant milestone comes after the MCC Board of Directors reselected Sierra Leone for compact development in December 2023, subject to meeting certain conditions related to the country’s 2023 general elections.
The compact is expected to be formally signed on Friday between the MCC and the Government of Sierra Leone. U.S. Senators Jim Risch and Chris Coons have emphasized that, despite the progress made by Sierra Leone, the nation must continue to meet eligibility criteria outlined by the US. In a joint statement, they noted, “After the flawed elections in June, Sierra Leone’s government and the primary opposition party have made significant commitments that are essential but initial steps in a much longer process to restore confidence in Sierra Leone for a potential future compact agreement.”
A key factor in the approval was the release of the Electoral Review Committee report, which aims to strengthen the country’s democratic and electoral structures following the 2023 elections. The report, along with the commitment of Sierra Leone’s leaders to addressing these issues, was crucial in gaining the support of U.S. lawmakers.
The $480 million compact will focus on building the foundation for sustainable growth in Sierra Leone's energy sector. This investment will build on the MCC’s earlier threshold program, which concluded in 2021, and is designed to address one of the country’s most critical economic constraints: the lack of affordable and reliable electricity.
The compact includes three key projects:
1. Distribution and Access Project
2. Power Sector Reform Project
3. Transmission Backbone Project
These initiatives will focus on improving transmission and distribution infrastructure, developing a strong regulatory environment for independent power producers, and enhancing the capacity of key utilities and institutions in the energy sector. Together, these efforts will help ensure a more stable and reliable electricity supply for households, businesses, and social institutions, contributing to Sierra Leone's long-term economic growth and sustainability.
This MCC compact approval represents a significant opportunity for Sierra Leone to strengthen its energy infrastructure, while also reinforcing the country's democratic and governance reforms.
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