Liberia: MCC and the Government of Liberia Recognize Closeout of U.S.$257 Million Compact, Boosting Access to Power and Economic Growth

Monrovia — The Millennium Challenge Corporation (MCC) and the Millennium Challenge Account Liberia (MCA-L) marked the successful closeout of the $257 million MCC Liberia Compact which aimed to address limited access to reliable and affordable electricity in the country and poor-quality road infrastructure. The compact funded the rehabilitation of Liberia's largest power source, the Mt. Coffee Hydropower Plant, supported the creation of an independent energy sector regulator, developed a training program for technicians in the electricity sector, supported improved delivery of electricity services by the Liberia Electricity Company, and established a data-driven road maintenance system.

MCC programs are designed with partner countries to reduce poverty by addressing the binding constraints to economic growth. Analysis by MCC and the Government of Liberia showed that reliable access to power is a critical element to reduce poverty, strengthen economic growth, and improve living standards. As of compact development, less than 4% of Liberians were connected to the electricity grid. Furthermore, on-grid electricity sold in Monrovia was one of the largest operating expenses for businesses in Liberia selling at over $0.50 per kWh. With the rehabilitation and expansion of the Mt. Coffee Hydropower Plant and other system improvements, it became possible to reduce that cost to $0.35 per kWh. The MCC Liberia Compact was a critical step for the country's economic growth and development. Today, access to the grid continues to expand, business owners can expand their services and increase their income, and 12% percent of Liberians are connected to the on-grid power supply, an increase of 70%.

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