Press Release

Millennium Challenge Corporation Board of Directors Approves Benin Power Compact

For Immediate Release

June 22, 2015

Washington, D.C.–At its quarterly meeting on June 17, the Millennium Challenge Corporation Board of Directors voted to approve a $375-million, power-sector-focused compact with Benin. The compact includes MCC's largest power generation project, its largest investment in solar power and its largest off-grid electrification project. The MCC compact will significantly enhance the engagement of Benin in the Power Africa effort. MCC's continued focus on combining infrastructure investments with sector policy reforms and institutional strengthening is expected to help Benin open the power sector to private investment.

“Only one-third of Benin's population has access to power, and that is a major constraint on its growth and a major barrier to reducing poverty. Our compact with Benin will expand business production, increase economic opportunities for households and enhance the capacity to provide public services,” MCC CEO Dana J. Hyde said.

The $375-million compact includes:

  • $41.2 million for policy reform and institutional strengthening;
  • $135.9 million for electricity generation, including solar power, thermal, and small-scale hydroelectric generation activities;
  • $109.7 for electricity distribution;
  • $45.9 million for off-grid electricity access;
  • $5.3 million for compact monitoring and evaluation; and
  • $37 million for program administration and oversight.

The Government of Benin will make a financial contribution of $28 million towards the program.

The compact includes a strong emphasis on policy reform, including:

  • Utility governance and administrative reforms;
  • Payment of government arrears to the utility;
  • Tariff reforms;
  • Reforms targeted to enable private sector participation in on-grid power generation; and
  • Reforms allowing for off-grid electrification.

Over the next 20 years, MCC expects 9.8 million people to benefit from the Benin compact.




The Millennium Challenge Corporation, a U.S. Government agency designed to work with some of the poorest countries in the world, is based on the principle that aid is most effective when it reinforces good governance, economic freedom and investments in people that promote economic growth and elimination of extreme poverty.