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 Hydropower Plant,
- Development of a training program for technicians in the electricity sector,
- Supporting the creation of an independent energy sector regulator,
- Supporting a management services contract to the Liberia Electricity Company aimed at improving the delivery of electricity services, and
- Building capacity and strengthening institutions for a cost-effective approach to nationwide 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. The Liberian 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 as of March 31, 2020
October 2, 2015
Entry Into Force:
January 20, 2016
- $207,331,034Project Total Amount
- $198,518,362Project Amount Committed
- $174,954,225Project Amount Expended
The Energy Project is comprised of interconnected activities aimed at:
- Enhancing power generation,
- Strengthening the capabilities of utility commercial operations, and
- Supporting the development of an independent electricity 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.
In addition to rehabilitation of the hydropower plant, activities under the Energy Project include the development of a training program for energy technicians and management, the reconstruction of a water pipeline linking the Mt. Coffee dam to the White Plains water treatment plant, improved customer service for the electricity utility, the establishment of an independent electricity regulator, and support for a management services contractor to improve the electric utility’s performance.
Progress and Achievements to Date
In 2017, the Mount Coffee Hydropower Plant on the St. Paul River became operational with the commissioning of 88 megawatts of generating capacity. In 2019, the Mount Coffee Rehabilitation Activity reached completion with the construction of an emergency spillway, access roads and bridges enabling the surrounding communities to safely cross the river. MCC provided $147 million for project construction and startup operations and was the largest donor in a consortium with the Government of Liberia and other international donor agencies. Mt. Coffee’s hydropower will generate electricity for the capital city of Monrovia and its surrounding area. This supply of relatively inexpensive power will facilitate lower electricity rates and improve system reliability.
In 2017, the board of the Liberia Electricity Corporation contracted for a management services contract with a subsidiary of the Energy Services Board of Ireland, Ireland’s electric utility operator. This contract, which began operations in January 2018, provides management of utility operations and coordination of donor- funded capital improvement projects. Key objectives of the management services contract are to create an operationally efficient and profitable utility that is financially viable; to increase capabilities of local staff; to improve quality and reliability of electricity supply and customer service; and to increase the customer base.
In 2019, the Liberia Electricity Regulatory Commission became operational with the confirmation of commissioners and hiring of initial key staff. The commission has conducted a census of Liberian electricity operators and commenced development of tariff and licensing regulations.
As a component of the Mt. Coffee Support Activity, the Raw Water Pipeline sub-activity is constructing a 4.7 km raw water pipeline from the Mt. Coffee Hydropower plant to the Liberia Water and Sewer Corporation’s White Plains Water Treatment Plant. The pipeline will provide additional water resources for the capital, Monrovia, and its environs. The Pipeline groundbreaking ceremony was attended by President Weah at the end of October 2019, and is expected to be completed by October 2020.
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
- $20,070,000Project Total Amount
- $5,022,892Project Amount Committed
- $5,001,247Project 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 provides for matching 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.
In 2019, despite setbacks to proceeding with the Matching Road Maintenance Fund under the National Road Maintenance Activity, the project continued to support the Sector Reform Activity. Preparations were completed for the procurement of a Road Asset Management System (RAMS) for the Ministry of Public Works, which will strengthen its capacity for processing and utilizing data on its road network for maintenance planning purposes. RAMS procurement was completed in June 2020.
Projected Long-Term Results
As of June 1, 2020