Liberia Compact

  • Grant Total: $256,726,000
  • Grant Committed: $109,462,170
  • Grant Expended: $76,728,493
  • Signed: October 2, 2015
  • Entry Into Force: January 20, 2016

The $257 million Liberia Compact aims to encourage economic growth and reduce poverty in Liberia by focusing on the inadequate road infrastructure and access to reliable and affordable electricity in the country.

The compact includes:

  • Funding for the rehabilitation of the Mt. Coffee Hydroelectric Plant,
  • Development of a training center for technicians in the electricity sector,
  • Support for the creation of an independent energy sector regulator, and
  • Development support for an approach to nationwide road maintenance.

The compact will significantly enhance Liberia’s participation in the U.S. Government’s Power Africa initiative. Presently, only 2 percent of the population has access to the electric grid, and 84 percent of Liberians currently live on less than $1.25/day.

This new partnership also works in conjunction with the U.S. Government’s efforts to help Liberia recover from the Ebola outbreak. Over the next 20 years, MCC expects at least 460,000 people to benefit from the compact.

Financials as of January 20, 2016

Energy Project

The Energy Project is comprised of four interconnected activities aimed at: 

  • Enhancing power generation, 
  • Strengthening the capabilities of sector investment planning, asset management, regulatory and social institutions, and
  • Supporting the development of policy-making institutions as the sector modernizes and becomes more commercially viable.

The Mt. Coffee Rehabilitation Activity aims to increase the amount of electricity generated in Liberia, facilitate lower overall electricity rates, and contribute to increased reliability and adequacy of electricity. This activity addresses the lack of access to affordable and reliable electricity, by targeting the insufficient supply of electricity in Liberia. 

Parallel activities in the Energy Project were included to mitigate environmental and social impacts that could impact the sustainability of the Mt. Coffee operations, help ensure affected communities benefit from the Mt. Coffee investment, and address other integral problems in the sector. 

Roads Project

This project aims to strengthen national and regional road planning to help reduce road user costs. Inadequate road infrastructure significantly hinders potential economic growth in Liberia. The Roads Project focuses on enhancing institutional capabilities rather than making a large capital investment directly in road construction or maintenance. 

The National Road Maintenance Activity will pilot up to five Regional Maintenance Centers (“RMC”), including the construction of at least two RMCs. This activity will match Government of Liberia contributions up to $8 million dollars into a Road Maintenance Fund for periodic maintenance

The Roads Sector Reform Activity will provide training and technical assistance in transportation planning, policy, maintenance, and institutional systems at the national and regional level, including the RMCs, the Ministry of Public Works, the Ministry of Transport, and Road Fund Administration staff