WASHINGTON (September 27, 2024) – Today, Millennium Challenge Corporation (MCC) Chief Executive Officer (CEO) Alice Albright and Sierra Leone Minister of Finance Sheku Bangura signed a $480 million compact designed to help millions of people gain access to affordable and reliable electricity.
In a country where 70 percent of the population currently lacks access to electricity, the five-year, $480 million grant — coupled with a $14.2 million voluntary contribution from the Government of Sierra Leone — will fund transformational energy sector investments to deliver affordable and reliable electricity for 4.6 million people.
The compact consists of three energy projects that together will better satisfy demand among households, businesses, and social institutions in Sierra Leone:
The Transmission Backbone Project will expand the transmission network to increase coverage and reliability of service. The project will facilitate additional energy trading with other West African countries and benefit further private sector power generation, including the Nant Energy project financed by the U.S. Development Finance Corporation.
The Distribution and Access Project will increase the reliability of the grid, reducing losses and barriers to access in selected communities, specifically focusing on schools, health facilities, businesses and households.
The Power Sector Reform Project will focus on improving the energy sector’s sustainability by reducing the cost of service, generating additional private financing, and improving regulations.
The program signing follows significant progress made by the Government of Sierra Leone and Sierra Leonean stakeholders to implement the Agreement for National Unity (ANU), which provides a pathway towards electoral reform and inter-party dialogue, and progress toward implementing the recommendations of the Tripartite Electoral Review Committee report, including Cabinet adoption of a timed implementation plan for reforms. During the next phase of partnership MCC, its Board of Directors, and Congressional stakeholders expect the Government to continue implementing the ANU and the recommended reforms of the review committee to strengthen democratic institutions, national unity, and accountability for electoral misconduct.
MCC and the Government of Sierra Leone first partnered in 2014 on a $40.54 million threshold program to support policy and institutional reform in the water and electricity sectors in Sierra Leone and advance economic growth. MCC selected Sierra Leone as eligible to develop a compact in December 2020.
The Millennium Challenge Corporation is an independent U.S. government agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants and assistance to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights.
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