MCC Partner Countries That Completed Compacts in FY2022
Since its founding, MCC and its partner countries have completed 30 compacts, totaling more than $9.5 billion in total expenditures (Table 1). Ghana completed its compact with MCC in FY2022.
Ghana
MCC and the Government of Ghana formally completed the $316 million MCC-Ghana Power Compact on June 6, 2022, celebrating a partnership that invested in new power infrastructure and power sector reforms, energy efficiency programs, and expanded opportunities for women in the power sector. The Government of Ghana through the Millennium Development Authority led the construction of four new power substations, including the two largest capacity bulk supply points in the country, expected to benefit up to 4.8 million Ghanaians, and which will provide power to critical medical facilities such as the University of Ghana Medical Center and the Greater Accra Regional Hospital. The Power Compact also installed more than 14,000 energy-efficient LED streetlights and facilitated internship, development, and training opportunities in Ghana’s power sector for more than 700 female students in the fields of science, technology, engineering, and math (STEM).
The Electricity Company of Ghana also adopted a new gender policy and action plan, targeting greater female recruitment and employee promotion and has committed to partnering with the U.S. Agency for International Development’s (USAID) Engendering Utilities Program to continue making progress on creating a more gender inclusive, diverse energy sector workforce.
In addition to implementing internship and mentoring programs for female STEM students, 30 schools implemented new green-energy curricula to help promote good energy stewardship and energy efficient practices. Finally, the Ghanaian government established the Air Conditioner and Refrigerator Test Laboratory. The laboratory is the first of its kind in West Africa and will carry out tests that ensure air conditioners and refrigerators imported into Ghana meet the country’s minimum energy performance standards.
Table 1
| Partner Country | Date Compact Signed | Compact Obligations as of September 30, 2022 (in millions of dollars) |
|---|---|---|
| Madagascar | April 18, 2005 | $85.6 |
| Honduras | June 14, 2005 | $204.0 |
| Cabo Verde | July 5, 2005 | $108.5 |
| Nicaragua | July 15, 2005 | $112.7 |
| Georgia | September 12, 2005 | $387.2 |
| Benin | February 22, 2006 | $301.8 |
| Vanuatu | March 2, 2006 | $65.4 |
| Armenia | March 27, 2006 | $176.6 |
| Ghana | August 1, 2006 | $536.3 |
| Mali | November 13, 2006 | $434.3 |
| El Salvador | November 29, 2006 | $449.6 |
| Mozambique | July 13, 2007 | $447.9 |
| Lesotho | July 23, 2007 | $358.0 |
| Morocco | August 31, 2007 | $650.1 |
| Mongolia | October 22, 2007 | $269.0 |
| Tanzania | February 17, 2008 | $694.5 |
| Burkina Faso | July 14, 2008 | $474.7 |
| Namibia | July 28, 2008 | $295.7 |
| Senegal | September 16, 2009 | $433.3 |
| Moldova | January 22, 2010 | $259.4 |
| Philippines | September 23, 2010 | $385.1 |
| Jordan | October 25, 2010 | $272.9 |
| Malawi | April 7, 2011 | $344.8 |
| Indonesia | November 19, 2011 | $474.0 |
| Cabo Verde | February 10, 2012 | $65.6 |
| Zambia | May 10, 2012 | $332.1 |
| Georgia | July 26, 2013 | $138.6 |
| Ghana | August 5, 2014 | $315.9 |
| El Salvador | September 30, 2014 | $270.7 |
| Liberia | October 2, 2015 | $237.8 |
| Total | $9,582.3 |
MCC Partner Countries in Compact Implementation
Six countries in MCC’s portfolio were in compact implementation as of September 30, 2022. Compact implementation begins upon entry into force of the compact agreement, marking the start of the five-year timeline. Under specific authority granted by the U.S. Congress, five compacts that had entered into force at the beginning of the COVID-19 pandemic were extended beyond their original five-year timeline to mitigate implementation delays caused by the pandemic. Each compact is managed and implemented by an accountable entity, generally known as the Millennium Challenge Account (MCA), established by the partner country government. Key implementation milestones from FY2022 are described below.
Benin
In Benin, where only a third of the population has access to electricity, MCC and the Government of Benin are implementing a compact to modernize the country’s power sector. The compact will fund countrywide projects in electricity distribution infrastructure, attract private sector investment in solar power generation, strengthen the country’s national utility through a management services contract, and expand access to electricity in rural areas. In FY2022, the compact funded an independent power producer transaction for 50 megawatts of solar photovoltaic power that reached commercial close with financial close anticipated in FY2023. Energization of nine substations in Cotonou, which account for nearly one-third of national power demand, is underway and major line works including installation of more than 50 miles of new underground cabling and 500 miles of rehabilitated overhead power lines are complete and awaiting energization. Thanks to Benin’s off-grid clean energy facility, approximately 140,000 people have electric power for the first time, with tens of thousands more expected to benefit by the compact’s end date. Over the next 20 years, MCC expects more than 11 million Beninese to benefit from compact investments. MCC and the Government of Benin amended the compact to extend the compact end date from June 2022 until June 2023 to mitigate implementation delays due to the COVID-19 pandemic.
Côte d’Ivoire
MCC’s compact with the Government of Côte d’Ivoire aims to support the country’s drive to diversify its economy through projects in skills development and transportation. The Abidjan Transport Project aims to reduce transport costs and travel times along targeted road segments in and around the port of Abidjan, while improving overall pedestrian and vehicle mobility and safety. In FY2022, designs were completed for the three major roadways and Koumassi flyover, and bids were launched for the road works contracts. The Skills for Employability and Productivity Project intends to increase access to quality secondary education, along with improved governance of the education sector. Through a new public-private partnership model for technical vocational education and training centers under the Skills for Employability and Productivity Project, MCC plans to assist the Government of Côte d’Ivoire in developing the skills needed by the private sector. In FY2022, the government passed a critical vocational education reform law, and four consortia were selected as implementing partners for the technical vocational education and training centers. Due to implementation delays caused by the COVID-19 pandemic, the term of this compact was extended from its original end date of August 2024 to August 2025.
Morocco
MCC’s compact with the Government of Morocco addresses binding constraints to economic growth around two Moroccan government priorities: 1) employability and 2) land productivity. The Education and Training for Employability Project is designed to improve the quality and relevance of secondary education and technical and vocational training. The compact is also assisting in modernizing the labor market observatory, reforming and modernizing the vocational training sector, upgrading student evaluation systems, and testing a results-based financing model for job insertion for marginalized youth and women. The Land Productivity Project aims to increase land productivity in Morocco by enabling land markets to better respond to investor demand and by strengthening the enabling environment for investment. The compact is funding the construction and rehabilitation of 15 technical and vocational training centers in Morocco, with construction completed on 10 of these centers in FY2022. MCA-Morocco also completed the rehabilitation of the first 33 of the 90 secondary schools that are being rehabilitated under the compact, with rehabilitation of the remaining schools underway and expected to be completed by the compact end date. MCA-Morocco is helping the Moroccan government to deliver land ownership rights via a faster and more-inclusive process, with the first 23,000 hectares of irrigated agricultural land titled in FY2022. In addition, MCA-Morocco and the Government of Morocco signed two additional public-private partnership (PPP) agreements for new industrial zones, which represent the first-ever industrial zone according to a PPP model in Morocco. The compact end date is March 2023.
Niger
MCC’s $442 million Sustainable Water and Agriculture Compact for Niger has completed 91 percent of Niger’s largest irrigation perimeter in the state of Konni as of September 2022. MCA-Niger launched procurement processes for the installation of up to 173 wells equipped with solar pumping kits and small-scale water distribution demonstrations across a 640 hectares footprint to promote efficient year-round access to water for high-value agricultural production. The rehabilitation of 190 miles of key market access road segments have reached 85 percent completion. In addition, the new performance-based road maintenance structure is operational and government financing has been secured to cover maintenance costs of these segments for the next three years. In FY2022, the compact funded research on satellite imaging of water tables that discovered five aquifers containing over 600 billion cubic meters of accessible water under central Niger. The use of these aquifers could dramatically improve agricultural irrigation, sanitation, and counter-desertification for millions of Nigeriens. The Government of Niger is currently developing an action plan to utilize these aquifers while sustaining their future viability. Under the Climate Resilient Communities Project, MCA-Niger launched procurements for 17 livestock markets to be rehabilitated across four regions, as well as nine community small-scale irrigation sites in the region of Maradi. The compact end date is January 2024.
Mongolia
MCC’s compact with Mongolia is designed to provide a sustainable supply of water to households and businesses in the capital city of Ulaanbaatar, while supporting the country’s economic growth. MCC’s investment is expected to provide an 80 percent increase in the long-term supply of water to the capital city by adding new groundwater wells and by constructing a state-of-the-art water purification plant. Additionally, the compact program will introduce new technologies for recycling and reuse of wastewater. To support these two major components, the compact will also fund critical legal, regulatory, and institutional reforms to enhance the sector’s sustainability. In May 2022, MCA-Mongolia signed a critical contract for the construction of the Water Recycling Plant (WRP). A groundbreaking ceremony for the WRP took place in late August, with participation by U.S. State Department Assistant Secretary Daniel Kritenbrink, MCC’s Vice President, Cameron Alford, the President of Mongolia, and other key Mongolian ministers and stakeholders. Work is also progressing on other procurements and the Water Sector Sustainability Activity, including compact-supported updates to the government’s cost-recovery plan to enhance the sustainability of the water sector in Ulaanbaatar. The compact end date is March 2026.
Senegal
MCC’s compact with Senegal is designed to strengthen the country’s power sector by increasing reliability and access to electricity and by helping the Government of Senegal establish a modern and efficient foundation upon which the nation’s power system can grow. Investments will focus on energy sector policy, institutional and regulatory reform, upgrading the high-voltage transmission network in and around Dakar, and expanding rural electricity access through distribution network upgrades and enhancements to consumer-side elements. Ensuring consistent and affordable access to energy in Senegal will allow businesses to grow, catalyze private sector investment, increase productivity and employment, and ultimately support the diversification and growth of Senegal’s economy. The compact entered into force in September 2021. During the first year of implementation, MCA-Senegal II launched critical procurements for the construction of substations, underground high-voltage transmission lines, and West Africa’s first undersea high-voltage transmission cable, all together representing over sixty percent of the compact’s budget. MCA-Senegal II is also finalizing detailed designs of the Increasing Access to Electricity in Rural and Peri-Urban Areas Project, and operationalizing legal, policy, and institutional reform commitments made by the Government of Senegal as conditions precedent to the entry into force of the compact. The compact end date is September 2026.
Table 2
| Activity in Fiscal Year 2022 | |||||
|---|---|---|---|---|---|
| Section 609 (g) Compact Facilitation Funding | Section 605 Assistance | ||||
| Partner Country | Total Compact Amount, including Amendments | Obligations | Expenditures | Obligations | Expenditures |
| Benin | $391.0 | 87.5 | |||
| Burkina Faso | $450.0 | 1.9 | |||
| Côte d’Ivoire | $536.7 | 8.4 | 12.0 | 30.5 | |
| Ghana | $315.9 | 50.8 | |||
| Kosovo | $202.0 | 21.2 | |||
| Lesotho | $300.0 | 30.3 | |||
| Malawi | $350.0 | 21.1 | |||
| Mongolia | $350.0 | 2.5 | 29.3 | ||
| Morocco | $460.5 | 10.5 | 148.3 | ||
| Nepal | $500.0 | 3.9 | |||
| Niger | $442.6 | 5.6 | 87.6 | ||
| Senegal | $550.0 | (15.2) | 11.8 | 15.2 | 4.9 |
| Timor-Leste | $420.0 | 51.0 | |||
Table 3
| Partner Country | Obligations (in millions of dollars) | Expenditures (in millions of dollars) |
|---|---|---|
| Nepal In September 2017, MCC signed a $500 million compact with the Government of Nepal—the agency’s first investment in South Asia. The compact aims to increase the availability of electricity, improve road quality, and facilitate power trade between Nepal and India. The $398.2 million Electricity Transmission Project aims to increase domestic electricity consumption by improving the availability and reliability of electricity in Nepal through the construction of 300 kilometers of high-voltage electric transmission lines—equivalent to one third of Nepal’s transmission network—and three substations, that will increase power for further distribution to customers or to serve as pooling hubs for generators. The Electricity Transmission Project also includes a cross-border transmission line to facilitate the growth of power exchange between Nepal and India to meet the domestic demand for electricity in the short term and to allow electricity exports in the long term. The $52.3 million Roads Maintenance Project provides funding for roads maintenance, which is expected to reduce transport costs due to decreased vehicle operating costs and reduced travel time. Given the extended pre-EIF period coupled with the current high-cost macro environment, the compact is undergoing a rescoping exercise to fit the overall objectives into the available budget. The compact is in the final stages of the preparatory phase while the government works to meet key conditions before entry into force, targeted for August 2023. |
$40.5 | $18.3 |
| Burkina Faso MCC’s Board of Directors voted to terminate MCC’s assistance to Burkina Faso and the country’s eligibility for a concurrent regional compact in September 2022. MCC’s Board previously voted to suspend assistance and Burkina Faso’s eligibility in March 2022. The decision was made in response to the January 2022 coup d’état, which is inconsistent with MCC’s statutorily mandated eligibility criteria, and the July 2022 announcement by the transition authorities of a prolonged period before elections. Notification to the interim government and financial closure of the agreement will take place in FY2023. |
$33.4 | $2.5 |
| Lesotho MCC and Lesotho signed a $300 million compact on May 12, 2022. The compact aims to address the binding constraint of ineffective policy planning, coordination, and execution that prevents the Government of Lesotho from delivering public goods and services that are essential for private sector growth. The compact consists of three projects in health, irrigated horticulture, and business environment strengthening. It also includes an investment through the new American Catalyst Facility for Development mechanism, a collaboration between MCC and the U.S. International Development Finance Corporation (DFC). The Health Systems Strengthening Project aims to strengthen the delivery of primary health care services, improve the efficiency of government expenditures, modernize and make interoperable health data systems, and address the unique needs of gender-based violence treatment and referral services. The Market Driven Irrigated Horticulture Project aims to catalyze private sector investment in horticulture through investments in irrigation infrastructure and policy reform while providing technical support to local communities and creating transparent and sustainable access to land and water. The Business Environment and Technical Assistance Project will work across key productive sectors like agriculture, creative industries, manufacturing, and tourism to support the growth of existing and new firms through establishing an effective communication framework with the government, technical assistance, business development services, and linkages to financing opportunities. To ensure inclusive growth, the projects include targeted strategies to empower women and youth. |
$30.3 | $0 |
| Kosovo MCC and Kosovo signed a $202 million compact on July 15, 2022, followed by a July 27 ceremony on Capitol Hill alongside members of the House Foreign Affairs Committee and leadership from the Government of Kosovo. Kosovo’s Parliament unanimously ratified the compact shortly thereafter on July 28. The compact is designed to help accelerate Kosovo’s transition to a more sustainable, inclusive, reliable, and affordable energy future via three projects supporting the energy sector. The Energy Storage Project will support battery storage systems designed to enable Kosovo’s transmission system and market operator to cost-effectively smooth out imbalances in the electricity grid. The project will also support a public energy storage entity, or an entity created through a public-private partnership with authority to deploy approximately 250 megawatt hours in additional energy storage, and strengthen the regulatory environment governing battery energy storage systems, while supporting renewable energy projects and climate change management. The Just and Equitable Transition Acceleration (JETA) Project will support female participation in energy-related training programs, increasing the number of qualified women in the energy sector with a focus on increased knowledge and incentives among employers to create more inclusive workplaces. The project will create new technical training programs and expand existing ones focused on building the skills required to meet the needs of Kosovo’s energy transition, while supporting the sustainability of compact investments. The American Catalyst Facility for Development Project aims to leverage financing from the DFC to support one or more blended finance transitions to catalyze private investment in Kosovo to complement the objectives of the Energy Storage and JETA Projects. Following compact signature and ratification in July 2022, MCC and the Government of Kosovo’s Compact Development Team continued progress towards MCA creation and entry into force. |
$21.2 | $0 |
| Timor-Leste MCC and the Government of Timor-Leste signed a $420 million compact on July 19, 2022. The Timor-Leste Compact addresses Timor-Leste’s human-capital binding constraint to economic growth through two projects focused on improving the health and skills of the Timorese population. The Water, Sanitation, and Drainage (WSD) Project seeks to reduce the presence of disease-causing pathogens in piped and stored water and groundwater through the construction of the country’s first central wastewater system, related drainage network improvements, and a plant to produce the disinfectant needed to treat the water supply across the capital city of Dili and four municipalities. The WSD Project will also support key policy and institutional reforms to support long-term sustainability of water and sanitation infrastructure as well as social and behavior change efforts to improve household water management and hygiene practices. The Teaching and Leading the Next Generation of Timorese (TALENT) Project seeks to improve student learning outcomes in numeracy, literacy, and soft skills by investing in the training of secondary school teachers and school leadership. The TALENT Project will establish a Center of Excellence (CoE) as the first formal pre-service teacher training and certification institution in Timor-Leste for secondary education. Through the CoE, trainings will be delivered to current and future secondary school teachers and school leaders across the country. The project will also seek to increase the number of women in secondary school teaching and leadership positions through a specific Women’s Economic Empowerment component. |
$51.0 | $0 |
| Malawi
MCC and the Government of Malawi signed a $350 million compact on September 28, 2022. MCC and its Malawian counterparts developed a program aimed at increasing land efficiency as a critical production input for economic growth and increasing competitiveness in the agriculture and transport sectors. The Land Project activities include strengthening estate sector management by renewing estate leaseholds or reallocating them for higher-value use and achieving more productive use of land through better-funded land administration in rural and urban environments. The Agricultural Growth Corridors Project aims to reduce the costs of transport and support commercial agricultural value chains by reducing the costs of doing business for firms and farmers in targeted rural areas. The American Catalyst Facility for Development Project is a joint effort between MCC and DFC to identify opportunities to further invest in Malawi’s private sector. The compact will integrate climate resiliency in its investments, as well as foster inclusivity by incorporating women and smallholders into reforms. |
$21.1 | $0 |
Note: For MCC’s financial reporting, disbursements are expenditures. Compact funds are fully obligated, and the five-year compact term starts when the compact enters into force.
Compacts in Development as of September 30, 2022
During FY2022, MCC continued to work with nine countries to develop potential compacts and continued developing potential concurrent compacts with several partner countries in West Africa.
Belize
In December 2021, MCC’s Board of Directors selected Belize as newly eligible to develop a compact. The Government of Belize appointed a national coordinator who joined MCC on a series of consultations with government stakeholders, private enterprises, and civil society organizations to identify binding constraints to economic growth in Belize. In March 2022, MCC presented the Government of Belize with five top binding constraints of which the government chose two for further development: low quality of education and high cost of electricity. The Government of Belize, in close coordination with MCC, then analyzed the selected binding constraints’ root causes and proposed several concepts for MCC’s consideration aimed at addressing the root causes. MCC is currently assessing the proposed concepts and will work with the Government of Belize to jointly develop the viable approaches into projects that will form the basis of the final compact program. MCC expects to submit the compact to MCC’s Board of Directors in June 2024.
Zambia
In December 2021, the MCC Board of Directors selected Zambia as eligible to develop a subsequent compact, following the closure of the initial $354.8 million compact in November 2018.
MCC identified five binding constraints to growth, and the Government of Zambia selected three: inadequate agriculture inputs and policies, poor roads and transport, and low access and reliability of power along the agriculture value-chain. MCC is currently working with the government to develop strategic approaches that will address the root causes of these constraints as a basis for a compact program. MCC aims to submit the compact to MCC’s Board in 2024.
Indonesia
The proposed compact will seek to assist the Government of Indonesia in addressing the economic binding constraint of costly and underdeveloped financial intermediation by improving the financing of infrastructure, particularly transport and logistics infrastructure, and increasing access to finance for micro-, small, and medium sized enterprises. The proposed compact will support three projects and has a geographical focus in five priority provinces: South Sumatra, Riau, North Sulawesi, Riau Islands and Bali. The Advancing Transport and Logistics Accessibility Services Project aims to improve transport planning and preparation in the target provinces. The Financial Market Development Project is designed to reach financial close on transactions using structured finance, including participation by institutional investors and with a focus on local currency transactions. The Access to Finance for Women-owned / Micro-, Small and Medium Enterprises (W/MSMEs) Project aims to increase lending by formal financial service providers to MSMEs and W/MSMEs in the target provinces to support their businesses. In parallel, MCC has identified opportunities to maximize the impact of the proposed projects’ climate-related components, consistent with Indonesia’s climate goals and MCC’s Climate Strategy. The proposed program will promote green finance tools and include a project preparation facility that will focus on climate-adaptive and mitigating transport and logistics solutions. MCC funding may also be used to incentivize the wind-down of coal fired power plant operations in anticipation of decommissioning through the Just Energy Transition Partnership. The anticipated budget for the proposed compact is up to $698 million, which includes MCC funding of approximately $649 million and a Government of Indonesia contribution of approximately $49 million. Following the fiscal year 2022 reporting period, MCC concluded compact development and submitted the compact to MCC’s Board of Directors in December 2022.
Sierra Leone
MCC and the Government of Sierra Leone are developing a compact aimed at addressing the country’s power constraint, building on work in the energy sector completed under MCC’s Sierra Leone threshold program that closed in 2021. Four potential projects are currently under consideration for MCC investment. One project seeks to expand Sierra Leone’s electricity transmission grid with new, climate-resilient infrastructure. Another project aims to increase the generation of climate-friendly energy in Sierra Leone, including through potential support for targeted investments in solar and hydro power projects. A third project aims to improve the resilience and stability of Sierra Leone’s limited existing distribution network, and potentially expand the network to new customers. This project will also include a focus on increasing the productive use of energy to reduce food insecurity via improved post-harvest processing and storage of key crops. The fourth project is expected to support the Government of Sierra Leone’s efforts to plan and coordinate energy sector investments, ensuring the sustainability of MCC projects and activities. The proposed program advances climate goals by ensuring infrastructure is resilient to climate change and by increasing the availability and use of renewable sources of energy. MCC aims to submit a compact to MCC’s Board of Directors for approval at the end of FY2023.
Tunisia
The Tunisia Compact features two projects focused on addressing Tunisia’s constraints to growth. The Transport and Trade Project is designed to make it easier and less expensive for businesses to engage in trade in Tunisia and includes investments to improve management and expand infrastructure at the Port of Rades, Tunisia’s principal port. The compact also aims to simplify and digitalize procedures and regulations in the transport and trade sectors. The Water Project aims to improve the sustainable use of scarce groundwater resources while moving the country towards increased water sustainability. The compact features new partnerships using the American Catalyst Facility for Development mechanism, an MCC–DFC collaboration to catalyze greater private sector investment, as well as collaboration with the U.S. Small Business Administration to introduce new water-efficient technologies to farmers in Tunisia. The compact program also integrates gender and social inclusion by improving market access for women-owned enterprises.
MCC’s Board of Directors approved the Tunisia Compact in June 2021, however compact signing is on hold until the Government of Tunisia makes significant progress toward constitutional and democratic governance.
Mozambique
MCC and the Government of Mozambique are in the process of finalizing the designs of three projects aimed at addressing the constraints to economic growth: a poor agricultural policy, legal, and regulatory framework; poor and climate vulnerable secondary and tertiary road infrastructure; and low freight transport market competitiveness. One project aims to improve road transport by providing climate-smart, sustainable, and cost-effective road transport connectivity along with reforms for a second-generation road fund. Another project includes targeted support for improving the business-enabling environment as well as creating an investment platform to connect commercial aggregators to smallholder farmers under a results-based financing arrangement. A third project plans to leverage both existing partners and climate finance to holistically reverse the decline in coastal fisheries and enhance the benefits to local communities. MCC expects to conclude compact development and submit a compact to MCC’s Board of Directors in FY2023.
Concurrent Regional: Benin-Niger
The proposed concurrent compacts will involve rehabilitating portions of the existing transport corridor between Cotonou in Benin and Niamey in Niger, while addressing some of the institutional and market constraints that raise the financial and time costs of transporting goods along this road. MCC will invest $202 million in Benin and $302 million in Niger. These investments will be further supported by $15.15 million and $15 million in contributions from Benin and Niger respectively. The two compacts are expected to benefit an estimated 1.6 million people and that projection is expected to grow as designs for the policy and institutional reforms are completed. MCC’s Board approved the Benin-Niger regional concurrent compacts in September 2022. Following the fiscal year 2022 reporting period, MCC signed its first regional concurrent compacts in December 2022.
Concurrent Regional: Côte d’Ivoire
MCC is developing a concurrent compact program for regional integration with Côte d’Ivoire, in partnership with entities of the Economic Community of West Africa States (ECOWAS), including the West African Power Pool (WAPP), the future Information and Coordination Center (ICC) and the ECOWAS Regional Electricity Regulatory Authority (ERERA). The compact is expected to: (i) strengthen market integration between Côte d’Ivoire and the West African energy sector; (ii) reinforce Côte d’Ivoire’s interconnected power grid to provide stable and affordable electricity to meet national demand and solidify its role as an anchor power exporter to the West Africa region; (iii) strengthen WAPP, ICC, and ERERA’s institutional and operational capacity to monitor and ensure the effectiveness of the purchase, sale, and movement of energy around the West Africa grid; and (iv) build capacity in regional and national energy institutions to ensure environmentally sustainable and socially inclusive operations and service, enabling them to reach gender integration and universal access objectives. MCC aims to make an investment decision by September 2023; negotiate the concurrent compact program for regional integration with Côte d’Ivoire in December 2023; and submit the Côte d’Ivoire concurrent compact to MCC’s Board of Directors in the spring of 2024.
MCC Threshold Programs: Results Through Reforms
MCC’s threshold program assists promising candidate countries to become eligible for a compact by offering them the opportunity to demonstrate their commitment to democratic governance, economic freedom, and investments in their people. By advancing policy reforms and strengthening institutions to address the most binding constraints to economic growth, threshold programs complement the “MCC Effect” created by the MCC selection criteria and allow the agency to assess the opportunity for an impactful and cost-effective partnership before committing to a larger compact. MCC uses the same rigorous, evidence-based approach in threshold programs as it does in compacts, leading to high-quality programs that maximize potential systemic impact and lay the foundation for a higher level of assistance.
In FY2022, MCC partnered to develop or implement threshold programs with The Gambia, Guatemala, Kenya, Kiribati, Kosovo, Solomon Islands, and Togo.
The Gambia
Following signature in November 2021 of a $25 million threshold program focused on energy sector governance and operations, The Gambia completed all requirements to entry into force in June 2022. MCC and the Government of The Gambia have since collaborated to finalize and issue the bidding documents for the main technical assistance contract and have advanced other administrative work to set up the accountable entity in early 2023.
Guatemala
MCC’s threshold program with the Government of Guatemala concluded on October 31, 2021. MCC’s investment led to improvements in the quality of secondary education by training over 2,000 secondary teachers and supporting the Ministry of Education to enact and prepare for the implementation of a decree to reform hiring practices, ensuring that teachers have basic competencies in the subjects they will teach. The program also supported the Guatemalan tax authority to install a competent internal affairs group to deter corruption, improve use of data analytics to detect customs tax evasion, and strengthen customs risk management—resulting in fewer inspections while still identifying customs tax evasion.
Kenya
MCC and the Government of Kenya have completed the development of a $60 million threshold program that aims to strengthen connectivity in the Nairobi metropolitan area. The program is designed to support integrated transport planning, first and last mile connections to public transport, and urban planning and land use. The MCC Board of Directors approved the program in March 2022 and MCC expects to sign the threshold program agreement in FY2023.
Kiribati
Kiribati was selected to develop a threshold program in December 2020. MCC is working with the Government of Kiribati to develop a threshold program that improves the Government of Kiribati’s ability to facilitate decent and inclusive employment for Kiribati citizens. In September 2022, MCC was able to conduct its first mission to Kiribati since the start of the COVID19 pandemic and aims to present the program to the MCC Board of Directors in FY2023.
Kosovo
MCC and the Government of Kosovo substantially completed implementation of a $49 million threshold program. The program fostered a market-driven approach to lowering energy costs for households and businesses, encouraging energy efficiency, and developing new sources of finance for electricity generation. The program also supported the government’s efforts to improve decision-making and accountability by increasing the accessibility and use of judicial, environmental, and labor force data.
Solomon Islands
In January 2022, MCC and the Government of Solomon Islands signed a $20 million threshold program agreement to facilitate private investment for increased tourism and to generate more reliable and sustainable benefits from the country’s forest resources. As of September 2022, the implementing contracts and partnership agreements have been signed and program implementation has begun.
Togo
The $35 million MCC threshold program with Togo is focused on addressing critical constraints in the country’s land and information and communications technology (ICT) sectors. In 2022, work began on a project to expand access to formalized land titles. Building on reforms in the ICT sector initiated by the Government of Togo, the program will support improving citizens’ access to high-quality and affordable ICT services by encouraging private sector investments, supporting the implementation of a universal service fund, strengthening an independent regulatory body, and creating a digital transformation agency.
For More
- Visit www.mcc.gov for the latest progress on each MCC partner country, including financial data, results, and donor coordination efforts.
- Review MCC’s Fiscal Year 2022 Annual Management Report for financial statements and the independent auditor’s report.