Liberia Compact

The $257 million Liberia Compact aims to encourage economic growth and reduce poverty in Liberia by addressing the inadequate access to reliable and affordable electricity in the country and the poor quality of road infrastructure.

The compact includes:

  • Funding for the rehabilitation of the Mt. Coffee Hydroelectric Plant,
  • Development of a training center for technicians in the electricity sector,
  • Support for the creation of an independent energy sector regulator, and
  • Development support for an approach to nationwide road maintenance.

The compact will significantly enhance Liberia’s participation in the U.S. Government’s Power Africa initiative. Presently, only two percent of the population has access to the electric grid, and 84 percent of Liberians currently live on less than $1.25/day.

This new partnership also works in conjunction with the U.S. Government’s efforts to help Liberia recover from the Ebola outbreak. Over the next 20 years, MCC expects at least 460,000 people to benefit from the compact.

Financials

Compact Budget

Milestones

  • Signed:
    October 2, 2015
  • Entry Into Force:
    January 20, 2016

Compact Projects

Energy Project

  • $201,590,000Project Total Amount
  • $152,893,460Project Amount Committed
  • $114,778,419Project Amount Expended

The Energy Project is comprised of four interconnected activities aimed at:

  • Enhancing power generation,
  • Strengthening the capabilities of sector investment planning, asset management, regulatory and social institutions, and
  • Supporting the development of policy-making institutions as the sector modernizes and becomes more commercially viable.

The Mt. Coffee Rehabilitation Activity aims to increase the amount of electricity generated in Liberia, facilitate lower overall electricity rates, and contribute to increased reliability and adequacy of electricity. This activity addresses the lack of access to affordable and reliable electricity by targeting the insufficient supply of electricity in Liberia.

Parallel activities in the Energy Project were included to mitigate environmental and social impacts that could impact the sustainability of the Mt. Coffee operations, help ensure affected communities benefit from the Mt. Coffee investment and address other integral problems in the sector.

Projected Long-Term Results

  • Estimated Beneficiaries 460,000 Over the next 20 years
  • Estimated Net Benefits $517,899,307

Roads Project

  • $21,070,000Project Total Amount
  • $5,000,000Project Amount Committed
  • $5,000,000Project Amount Expended

This project aims to strengthen national and regional road planning to help reduce road user costs. Inadequate road infrastructure significantly hinders economic growth in Liberia. The Roads Project focuses on enhancing institutional capabilities to improve road maintenance, and to conduct critical periodic maintenance works on key segments of the primary paved and unpaved road network. The project consists of two activities:

The National Road Maintenance Activity will match Government of Liberia contributions up to $15 million dollars into a Matching Road Maintenance Fund to conduct periodic maintenance on primary paved and unpaved roads in fair condition. Conducting periodic maintenance on these roads will improve their condition and extend their useful life.

The Roads Sector Reform Activity includes training and technical assistance in data collection, maintenance planning and institutional systems at the national level, including the Ministry of Public Works and The Office of National Road Fund. This activity will lead to the prioritization of maintenance projects and institutional management of the National Road Maintenance Activity.

Progress and Achievements to Date

Extensive training was provided on the Highway Management and Development Model, HDM-4, leading to the development of the Ministry’s first ever draft five-year road maintenance plan in May 2018.

Projected Long-Term Results

As of May 16, 2018