Over $480 Million To Address Salone’s Energy Challenge …Based On MCC Compact Negotiation With Govt

The Millennium Challenge Corporation (MCC) has proposed the sum of $480,669,000 compact which aims to address the energy challenge in Sierra Leone.

This was made known by the MCC through an announcement noting their (MCC’s) intention to negotiate a Millennium Challenge Compact with the Government of Sierra Leone.

The MCC noted that the insufficient availability of affordable and reliable electricity in the country is a major constraint to economic growth.

That the compact includes three key projects: Transmission Backbone Project, Distribution and Access Project, and Power Sector Reform Project.

“Sierra Leone’s economy currently suffers from a power sector that cannot meet the existing demand or keep up with future growth. Limited and high-cost supply, poor reliability of transmission and distribution networks, and ineffective sector institutions are hindering the expansion of electricity access to 70% of the population without electricity,” MCC noted.

That the proposed compact aims to address these challenges by investing in foundational infrastructure and institutional capabilities.

Adding that the Transmission Backbone Project will focus on increasing the coverage and reliability of the transmission network with modern centralized system operations and that investments will be made in centralized control, a new transmission corridor, and network upgrades to ensure continuity of service during and after construction.

“The project also includes the construction of a southern transmission corridor to support grid expansion to southern parts of the country,” MCC stated.

That the Distribution and Access Project aims to improve the delivery and consumption of electricity in Sierra Leone while reducing barriers to access in selected communities, noting that pgrades to the distribution network, establishment of new connections, and regularizing of existing connections will lead to reduced outages, improved power quality, increased access to electricity, and reduced technical and commercial losses.

That the overall compact economic rate of return is estimated at 10.3%, with the potential to benefit 4.6 million Sierra Leoneans, 28% of whom fall below the national poverty line.

“MCC will continue to refine its assessment of the compact’s impact as new sector data becomes available,” they assured.

That the negotiation of the Millennium Challenge Compact with Sierra Leone represents a significant step towards improving the country’s electricity sector and promoting economic growth and development.