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MCC, Government of Senegal start 5 Year Clock on $550M Power Compact

For Immediate Release

September 9, 2021

(WASHINGTON, D.C. September 9, 2021) – The U.S. Government’s Millennium Challenge Corporation (MCC), represented by its Acting Chief Executive Officer, Mahmoud Bah and Deputy Chief Executive Officer, Alexia Latortue are in Dakar to celebrate the launch of the $550 million MCC–Senegal Power Compact.  

This five-year MCC-Senegal partnership is bolstered by an additional $50 million commitment from the Government of Senegal and includes three projects targeting quality, reliable electricity to meet Senegal’s growing demand. The Government of Senegal has already made important reforms ahead of the entry into force of the compact to enable strong results for the people of Senegal. 

“An investment in Senegal’s power sector today, is an investment in Senegal’s future. I am delighted to partner with the United States Government’s Millennium Challenge Corporation on this 600-million-dollar program which is expected to make a significant contribution in creating more growth, job opportunities, and shared prosperity” said Minister of Economy, Planning and International CooperatioAmadou Hott.  

The partnership between MCC and the Government of Senegal aims to strengthen Senegal’s power sector by increasing the reliability of electricity, especially in the capital city of Dakar, as well as increasing electricity access in peri-urban and rural areas of the south and central regions – all while supporting a modern and efficient foundation upon which the nation’s electricity system can grow. 

“For the past 60 years, the U.S. Government has been a proud partner in supporting the economic growth of Senegal,” said U.S. Ambassador to Senegal Tulinabo S. Mushingi. “This new investment into the power sector is another step forward to ensuring all Senegalese have access to reliable electricity.”  

Globally, affordable and reliable access to power is critical to alleviating poverty, advancing economic growth, and improving lives. As of 2019, Senegal’s cost of electricity is the eighth highest in the region, and only 53 percent of people have access to electricity in Senegal’s rural areas. 

“Accelerating  inclusive and sustainable economic growth in Senegal requires greater access to affordable and reliable electricity,” said Mahmoud Bah, MCC’s Acting Chief Executive Officer. “With this $550 million Power Compact jointly designed with our Senegalese partners, we are tackling some of the most difficult policy and institutional reforms in the sector while investing in large infrastructure to facilitate and stimulate productive economic activities in Senegal." 

The Senegal Power Compact is MCC’s second compact with the Government of Senegal. The first compact—completed in September 2015—invested $540 million dollars in the country’s agricultural sector, expanding access to markets and services by constructing roads and irrigation networks in the Senegal River Valley in the north and the Casamance region in the south.  

“Today, we start on the five-year journey to bring reliable energy access to the people of Senegal” added Oumar Diop, Chief Executive Officer of the Millennium Challenge Account Senegal II (MCA-Senegal II), the compact’s lead implementing organization. “I am incredibly thankful to the staff at MCA-Senegal II and our implementing partners for their commitment to designing this ambitious program, and we look forward to starting implementation.”  

MCC is an international development agency of the U.S. government, 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.