Burkina Faso Compact II

Burkina Faso is a landlocked country in West Africa with a population of 18.6 million. It faces significant development challenges as indicated by its ranking of 182/189 countries in the United Nations Development Program 2019 Human Development Index, and 43.7 percent of its population is considered poor. However, Burkina Faso also has one of Africa’s fastest growing economies, with a 2019 GDP growth rate of six percent.

Burkina Faso successfully implemented a first compact with MCC from July 2008 to July 2014. The MCC Board of Directors reselected Burkina Faso in subsequent years and on August 13, 2020, MCC and the Government of Burkina Faso signed a second compact.

The second compact was composed of three projects: The Strengthening Electricity Sector Effectiveness Project; the Cost-Effective and Reliable Electricity Supply Project; and the Grid Development and Access Project. On December 8, 2020, the Government Burkina Faso ratified this compact and published it in a special edition of its Official Journal. Burkinabe Parliament confirmed the President’s ratification on April 20, 2021.

On January 31, 2022 MCC paused activity related to the Burkina Faso Compact II following the military’s actions against the elected government on January 23, 2022. These actions contradict MCC’s commitment to democratic governance and upholding the rule of law—principles that underpin MCC’s rigorous selection criteria. MCC again called on all parties to pursue a democratic solution while ensuring the safety and security of all Burkinabes.

On March 31, 2022 the MCC Board of Directors voted to suspend MCC’s assistance to Burkina Faso and its eligibility for a concurrent regional compact as a result of the country’s coup d’état. These events run counter to MCC’s commitment to democratic governance and upholding rule of law. All MCC partner countries are expected to demonstrate an ongoing commitment to these principles to remain eligible for MCC investments.

On September 28, 2022, the MCC Board voted to terminate MCC’s assistance to Burkina Faso and the country’s eligibility for a regional compact. This 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. In making this difficult decision, MCC’s Board noted its strong interest in partnering with the Burkinabe people once a democratically-elected government takes office.

Financials

Compact Budget

Milestones

  • Signed:
     August 13, 2020
  • Terminated:
     September 28, 2022

Compact Projects

Cost-Effective and Reliable Electricity Supply Project

The Cost-Effective and Reliable Electricity Supply Project aims to increase the supply of energy and the reliability of the network, at a lower cost for the national public electricity supplier, through the production and storage of solar energy and increased imports. This project will boost energy supply infrastructure, by supporting new solar power projects, introducing battery storage, and making improvements to electricity dispatch centers.

Projected Long-Term Results

  • Estimated Beneficiaries 8,100,000

Grid Development and Access Project 

The Grid Development and Access Project aims to reduce outages and increase the availability and consumption of electricity for end users by (i) updating the transmission and distribution network, and (ii) increasing access and targeting productive use of electricity. This project is expected to result in extending the reach and capacity of the network and improving the access of customers covered, allowing the national utility to reduce losses and outages caused by system failures and lack of redundancy, as well as to increase coverage, access, and consumption of end users.

Projected Long-Term Results

  • Estimated Beneficiaries 4,300,000

Strengthening Electricity Sector Effectiveness Project

The objective of the Strengthening Electricity Sector Effectiveness Project is to improve and strengthen the legal, regulatory, and institutional framework of the electricity sector by investing in priority reforms and capacity-building for key actors, including the national utility, regulator, and Ministry of Energy.

This project is expected to result in improvements in the quality and supply of electricity, which will translate into improved operational efficiency, cost reduction, improved service, and increased investment by the private sector.

Projected Long-Term Results

  • Estimated Beneficiaries 8,100,000

As of September 29, 2022