Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS
A lock ( ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Benin Power Compact

Per capita consumption of electricity in Benin is among the world’s lowest because of limited access to and availability of electricity for the country’s 11.8 million people. Rapidly growing demand coupled with inadequate maintenance and insufficient investment have stressed Benin’s national grid, resulting in poor service that impacts households, hurts businesses, and hinders public services.

MCC is partnering with Benin to tackle these issues through a $391 million compact that is reforming and modernizing the West African country’s power sector. With an additional contribution of $28 million by the Government of Benin, the compact aims to strengthen the national power utility, attract private sector investment into solar power generation, and fund infrastructure investments in electricity distribution as well as off-grid electrification for poor and unserved households.

Financials

Financials as of June 30, 2023

Program Budget

Milestones

  • Entry Into Force:
    June 22, 2017
  • Signed:
    September 9, 2015

Program Projects

  • $284,550,747
    Project Total Amount
  • $280,294,427
    Project Amount Committed
  • $239,447,468
    Project Amount Expended

MCC is modernizing Benin’s electricity distribution infrastructure to expand grid capacity, accommodate future demand growth, improve service reliability, reduce losses, and minimize outages. The project focuses on improving the power grid serving Cotonou—Benin’s center of commerce and government—as well as areas in northern Benin with high levels of poverty. At a national level the project is building a modern dispatch and control center to manage Benin’s grid more effectively.

Progress and Achievements to Date

Eighteen substations have been completed and energized. Nearly 50 kilometers of new 63 kV underground cabling have been installed and over 775 kilometers of overhead power lines have been upgraded to 33 kV. More than 41 substations nationwide are connected to a national electricity dispatch and control center, which provides real-time monitoring and control of Benin’s national grid. A total of 44 substations are expected to be connected by June 2023.

Projected Long Term Results, Timeframe Not Specified
  • 10,600,000
    Estimated Beneficiaries
  • $634,000,000
    Estimated Net Benefits

  • $10,828,693
    Project Total Amount
  • $10,815,109
    Project Amount Committed
  • $10,790,587
    Project Amount Expended

To accomplish the project objectives, MCC funding will be used to increase Benin’s domestic generation capacity by up to 50 megawatts (AC) of solar photovoltaic generation through an independent power producer (IPP) transaction.

Progress and Achievements to Date

The 50 MW solar photovoltaic IPP transaction has reached commercial close. If financial close is attained, the transaction could leverage $50-60 million in private investment.

Projected Long Term Results, Timeframe Not Specified
  • 10,600,000
    Estimated Beneficiaries
  • $634,000,000
    Estimated Net Benefits

  • $29,743,327
    Project Total Amount
  • $29,739,669
    Project Amount Committed
  • $21,788,399
    Project Amount Expended

This project is helping to address the gap in access to electricity for two-thirds of Benin’s population through policy reforms, infrastructure financing, and public-private partnerships, including:

  • Benin’s first-ever policy, strategy, master plan, and regulatory framework for off-grid electrification; and
  • Off-grid electrification systems for communities, households, and micro-businesses through a competitive grant facility that is leveraging private investment.
Progress and Achievements to Date

Twelve signed off-grid electrification co-financing agreements are expected to leverage $33 million in private investment with $19 million of compact funding. Despite COVID-19 disruptions, distributors of solar home systems have delivered power for the first time to more than 110,000 people. Six of eight mini-grid project developers obtained regulatory approvals for 20-year concession agreements and all are expected to have received equipment and either begun or completed their portfolio.

Projected Long Term Results, Timeframe Not Specified
  • 135,000
    Estimated Beneficiaries

    OCEF Call One – Window Three: Household generation, storage, and productive uses, such as renewable energy source devices for individual families and microbusinesses.

  • $23,740,000
    Estimated Net Benefits
Projected Long Term Results, Timeframe Not Specified
  • 329,000
    Estimated Beneficiaries

    OCEF Call Two – Window Two: Mini-grids providing electricity generation and distribution for household, commercial, agricultural, and industrial use.

  • $14,400,000
    Estimated Net Benefits
Projected Long Term Results, Timeframe Not Specified
  • 89,000
    Estimated Beneficiaries

    OCEF Call Two – Window Three: Household generation, storage, and productive uses, such as renewable energy source devices for individual families and microbusinesses.

  • $38,300,000
    Estimated Net Benefits

  • $24,731,551
    Project Total Amount
  • $24,716,529
    Project Amount Committed
  • $23,446,165
    Project Amount Expended

MCC funding is:

  • Improving governance in the electricity sector by strengthening regulation, supporting tariff reforms, advancing energy efficiency, and creating a policy and institutional framework for independent power producers;
  • Improving the national electricity utility’s management, operations, and maintenance through a management contract; and
  • Informing and educating the public on tariffs, energy efficiency, renewable electricity, and other key electricity sector issues.
Progress and Achievements to Date

This project has led to major reforms to Benin’s power sector, including the first electricity tariff increase in a decade, a four-year management contract for the national power utility that led to considerable commercial improvements, and government approval for an IPP framework that has resulted in internationally competitive bidding for solar power plants that, if built, will supply up to one-third of national daytime demand for electric power. The project has also supported energy efficiency audits for public buildings and private industry in order to reduce demand and costs.

Projected Long Term Results, Timeframe Not Specified
  • 10,600,000
    Estimated Beneficiaries
  • $634,000,000
    Estimated Net Benefits

Independent Evaluations

    • {{ item.sectors }}
    • {{ item.programs }}

    {{ item.title }}

    • Type: {{ item.type }}
    • Status: {{ item.status }}
Filter By
{{ facet.title }}
    • {{ item.sectors }}
    • {{ item.programs }}

    {{ item.title }}

    • Type: {{ item.type }}
    • Status: {{ item.status }}
Filter By
{{ facet.title }}
    • {{ item.sectors }}
    • {{ item.programs }}

    {{ item.title }}

    • Type: {{ item.type }}
    • Status: {{ item.status }}
Filter By
{{ facet.title }}

Monitoring & Evaluation

Results to Date

Information on results to date is available in the Table of Key Performance Indicators (a subset of the full set monitored under the Benin II Monitoring and Evaluation Plan). The full set of performance indicators is detailed in the Monitoring and Evaluation Plan.

Impact Evaluation Framework

In addition to careful monitoring of implementation performance and measurement of preliminary results, MCC is funding several independent evaluations that will assess the results of the MCC-funded activities. More information also is available in the Monitoring and Evaluation Plan.

Projected Long Term Results by Project
Project Estimated Beneficiaries Estimated Benefits
Electricity Distribution Project
Objective

The objective of the Electricity Distribution Project is to:

  • Increase the hours of operation for businesses and public and social services;
  • Reduce reliance on costlier sources of energy;
  • Reduce losses of products and perishable goods; and
  • Improve productivity for users of electricity.
10,600,000 $634,000,000
Electricity Generation Project
Objective

The objectives of the Electricity Generation Project are to:

  • Increase the hours of operation for businesses and public and social services;
  • Reduce reliance on costlier sources of energy;
  • Reduce losses of products and perishable goods;
  • Improve productivity for users of electricity.
10,600,000 $634,000,000
Off-Grid Electricity Access Project
Objective

Increase access to electricity to:

  • Increase the hours of operation for businesses and public and social services;
  • Reduce reliance on costlier sources of energy;
  • Reduce losses of products and perishable goods; and
  • Improve productivity for users of electricity.
135,000

OCEF Call One – Window Three: Household generation, storage, and productive uses, such as renewable energy source devices for individual families and microbusinesses.

$23,740,000
Off-Grid Electricity Access Project
Objective

Increase access to electricity to:

  • Increase the hours of operation for businesses and public and social services;
  • Reduce reliance on costlier sources of energy;
  • Reduce losses of products and perishable goods; and
  • Improve productivity for users of electricity.
329,000

OCEF Call Two – Window Two: Mini-grids providing electricity generation and distribution for household, commercial, agricultural, and industrial use.

$14,400,000
Off-Grid Electricity Access Project
Objective

Increase access to electricity to:

  • Increase the hours of operation for businesses and public and social services;
  • Reduce reliance on costlier sources of energy;
  • Reduce losses of products and perishable goods; and
  • Improve productivity for users of electricity.
89,000

OCEF Call Two – Window Three: Household generation, storage, and productive uses, such as renewable energy source devices for individual families and microbusinesses.

$38,300,000
Policy Reform and Institutional Strengthening Project
Objective

Strengthen the capacity of Government of Benin institutions to improve the governance, management, and operations of the electricity sector.

10,600,000 $634,000,000

As of Fri Jul 28 2023 00:00:00 GMT-0400 (Eastern Daylight Time)