The Government of Sierra Leone is poised to sign a significant $480 million compact with the Millennium Challenge Corporation (MCC) today in Washington, D.C.
The agreement, which is set for finalization at 3 p.m. ET, will see President Julius Maada Bio in attendance, following the pre-signing completion by Finance Minister Sheku F. Bangura.
This compact represents a critical investment in Sierra Leone’s energy sector, a long-standing challenge for the West African nation, home to 8.4 million people.
The country has long struggled to meet the growing demand for electricity, with only 30 percent of the population having access to power, and a mere five percent in rural areas. Even in urban areas, electricity supply remains inconsistent, with frequent outages and voltage fluctuations that damage equipment, forcing many businesses to rely on costly diesel generators.
The $480 million MCC compact builds on previous efforts, including a threshold program that concluded in 2021, aimed at reforming the energy sector. The new agreement seeks to transform Sierra Leone’s power infrastructure, enhance access to reliable electricity, and fuel economic growth by addressing a core obstacle: the insufficient supply of affordable and dependable power.
Three key projects will be funded through the compact:
1. Distribution and Access Project – Aimed at expanding electricity access and improving distribution infrastructure.
2. Power Sector Reform Project – Focused on strengthening the institutions that regulate and manage the electricity sector, and fostering a conducive environment for private-sector participation.
3. Transmission Backbone Project – Designed to improve the country’s electricity transmission network, ensuring more reliable power supply.
This compact marks a major step forward in Sierra Leone’s journey toward sustainable development, with energy at the core of the country’s future growth strategy.
