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,
  • Supporting the creation of an independent energy sector regulator,
  • Building capacity and strengthening institutions for a cost-effective approach to nationwide road maintenance, and
  • Contributing matching funds for periodic road maintenance

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

This partnership was designed to complement the U.S. Government’s efforts to help Liberia recover from the Ebola outbreak, since the government’s efforts to address the epidemic required reallocating resources planned for development of the energy sector. Over the next 20 years, MCC expects 528,000 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
  • $176,887,559Project Amount Committed
  • $141,049,430Project Amount Expended

The Energy Project is comprised of interconnected activities aimed at:

  • Enhancing power generation,
  • Strengthening the capabilities of sector planning, asset management, regulatory and social institutions, and
  • Supporting the development of an independent regulator.

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 and help communities displaced or cut off by the reservoir to benefit from the Mt. Coffee investment by restoring access and improving local conditions.

Projected Long-Term Results

  • Estimated Beneficiaries 528,000 Over the next 20 years
  • Estimated Net Benefits $207,000,000 Estimate excludes water pipeline costs and benefits

Roads Project

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

This project aims to strengthen national road maintenance planning. Inadequate road infrastructure significantly hinders economic growth in Liberia. The Roads Project focuses on enhancing institutional capabilities to improve road maintenance, and conducting 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 should 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 aims to improve 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 June 2018.

Projected Long-Term Results

As of August 24, 2018