The enforcement of Conditions Precedent (CPs) is a necessary part of Compact implementation, even when the failure to meet CPs may be connected to insufficiently planned projects. As the report notes, the Government of Liberia (GoL) was able to satisfy most of the CPs set forth in the Compact but was unable to fulfill a crucial CP mandating the consistent deposit of fuel levies into the Road Fund to ensure adequate funding of road maintenance works. The de-scoping of the Matching Road Maintenance Fund Sub-Activity after repeated non-adherence to the CP was a painful step, but a necessary one to maintain MCC’s leverage in the future. Per the report, both exogenous shocks (e.g., 2017 elections) and the lack of training and activities to support the consistent transfer of funds from Liberia Revenue Authority, Ministry of Finance and Development Planning, and National Road Fund played a role in GoL’s inability to meet the CP. The CPs themselves were achievable and not overly restrictive, so enforcement of the CPs was a necessary step for future MCC work. As the report notes, the project should not have come into effect until the CPs were met to ensure maximum project impact. However, the de-scoping may not have been necessary if proper sustainability activities were planned. MCC failing to uphold the CPs and failing to initially provide the needed support would have compounded the problem rather than alleviating it.
Lesson Learned