| (in millions of $) | FY 2023 Enacted | FY 2024 Annualized CR | FY 2025 Request |
|---|---|---|---|
| Total Appropriation/Request | 930.0 | 930.0 | 937.0 |
Total Compact Assistance |
651.0 | 650.0 | 650.0 |
MCC’s FY 2025 request includes $650 million in compact assistance for the Togo and Zambia compacts, both completing project development in FY 2024, and partial funding for The Gambia compact projected to complete project development and begin negotiations in FY 2025. If existing funds in the portfolio become available through de-obligations or reprogramming, MCC could potentially fund the remainder of The Gambia compact or the Regional Senegal compact, which is currently unfunded.
The following legend describes the different phases of compact development and the efforts undertaken by country partners and MCC:
New and Developing Compacts
Sierra Leone
MCC and the Government of Sierra Leone are developing a compact to address the country’s constraint to reliable, accessible energy, building off of MCC’s work in the energy sector completed under MCC’s Sierra Leone threshold program that closed in 2021. Three potential projects are currently under consideration for MCC investment. One project expands Sierra Leone’s electricity transmission grid with new, climate-resilient infrastructure. Another improves the resilience and stability of Sierra Leone’s limited distribution network while also expanding the network to new customers. The third project supports the Government of Sierra Leone’s efforts to improve utility performance as well as plan and coordinate energy sector investments, ensuring the sustainability of MCC projects and activities. MCC had planned to submit a compact to MCC’s Board of Directors for approval in September 2023, but delayed compact development in response to serious concerns over the credibility of the June 2023 election in Sierra Leone. In December 2023, the MCC Board of Directors reselected Sierra Leone as eligible to continue developing a compact, noting the Board’s expectation of continued progress toward meaningful election reform. MCC aims to submit the compact to the Board for approval in 2024.
Belize
MCC and the Government of Belize have worked in close collaboration to design two projects focusing on two binding constraints to growth—the low quality of education and high cost of electricity. The Education Project is designed to improve access to, and the quality of, secondary education, and reduce skills gaps in key growth industries to increase the number of post-primary graduates with the competencies needed by the labor market. The Energy Project aims to improve electricity sector governance and support the acquisition of low-cost renewable energy resources to decrease the cost of electricity. The compact is expected to be presented to MCC’s Board for approval in June 2024, with compact signing by September 2024.
Côte d’Ivoire Regional Energy
MCC is developing a regional compact program in partnership with entities of the Economic Community of West African States (ECOWAS), including the West African Power Pool (WAPP), the future Information and Coordination Center (ICC), and the ECOWAS Regional Electricity Regulatory Authority (ERERA). The compact is expected to: (i) strengthen market integration between Côte d’Ivoire and the West African energy sector; (ii) reinforce Côte d’Ivoire’s interconnected power grid to provide stable and affordable electricity to meet national demand and solidify its role as an anchor power exporter to the West Africa region; (iii) strengthen WAPP, ICC, and ERERA’s institutional and operational capacity to monitor and ensure the effectiveness of the purchase, sale, and movement of energy around the West Africa grid to increase Côte d’Ivoire’s energy trade; and (iv) build capacity in regional and national energy institutions to ensure environmentally sustainable and socially inclusive operations and service, enabling them to reach gender integration and universal access objectives. The compact’s infrastructure activities will focus on modernizing the electricity grid network operations in Côte d’Ivoire via technology upgrades and battery storage for grid stabilization. The institutional support aspects of the compact will include technical assistance to improve the financial viability, governance (regulatory readiness and capacity), and operational capacity of Ivoirian and regional energy entities. MCC expects to submit the compact to MCC’s Board of Directors in September 2024.
Zambia
MCC is currently working with Government of Zambia to develop three potential compact projects in the transportation and agriculture sectors, including: (1) investment in roads and road maintenance to reduce the cost of transportation and logistics for agriculture, (2) increased production of crops and agro-processing in high-value agriculture chains through improved access to electricity, irrigation, and logistics investments, and (3) support for reforms that enable a more conducive environment for private sector agriculture investments. MCC aims to submit the compact to MCC’s Board of Directors for approval in September 2024, with compact signing expected in FY 2025.
Togo
In December 2022, MCC’s Board of Directors selected Togo as eligible to develop a compact. MCC is piloting a fast-track (24 month) compact development process with the country, and the Government of Togo designated a national coordinator in early 2023 to enable rapid and proactive engagement with MCC. The Government of Togo selected the energy and digital sectors as the focus of compact development based on constraints analysis to economic growth. Togo’s aspiration is to strategically invest in the energy and digital sectors to modernize their economy, catalyze growth and serve as a hub of digital innovation in West Africa. MCC is working with the government to fully integrate digital applications to administer programmatic investments in connectivity, payments systems, and new innovations and local skills-building and education. If advanced, the investment would contribute to the approach and priorities set forth in the USG Digital Transformation with Africa (DTA) initiative. The Government of Togo has proposed several potential projects, and MCC and the Government of Togo will begin feasibility studies in early 2024 with a view to prioritizing and selecting those projects that best meet MCC’s investment criteria as well as the criteria reflecting the fast-track development process. MCC aims to submit the compact to MCC’s Board of Directors by the end of 2024.
The Gambia
MCC’s Board of Directors selected The Gambia as eligible to develop a compact program in December 2022. The Government of The Gambia appointed a national coordinator, allocated an initial budget of $1 million of government funding for the first year of compact development, and stood up a compact development team. The Government of The Gambia prioritized underutilization of the Gambia River and quality of education as the binding constraints to inclusive growth for further exploration and as a basis for a compact program. MCC is now exploring education investments that would increase the number of Gambians who have the knowledge, skills, and abilities for their economic advancement, as well as potential investments that would revitalize the Gambia River to reduce transport costs and increase tourism revenue and jobs. MCC aims to present the compact to MCC’s Board of Directors for consideration in FY 2025.
Regional Senegal
In December 2022, MCC’s Board of Directors selected Senegal as eligible to develop a concurrent regional compact. In October 2023, Senegal identified the blue economy as their sector of choice to move forward with development of the proposed regional compact. Blue economy is the sustainable development of Senegal’s ocean, coastal, and freshwater resources to create new job opportunities for women, young people, and other vulnerable populations in the region. The Government of Senegal has formed a compact development team and has progressed to the next phase of compact development, the root cause analysis. MCC expects to complete compact development in FY 2025 and present the regional compact to the MCC Board for consideration in early FY 2026.
Regional Cabo Verde
In December 2023, MCC’s Board of Directors selected Cabo Verde as eligible to develop a regional compact. MCC is now allocating staff and resources to support the regional compact development process, beginning with analysis of opportunities for growth in Cabo Verde’s economy with a focus on enhancing regional integration, potentially leveraging existing and planned MCC compact investments in West Africa. MCC anticipates the government will identify a national coordinator and compact development team in early 2024, and that work will begin soon to identify potential investments.