El nuevo Compact de la Millennium Challenge Corporation (MCC) está dotado de 257 millones de dólares y pretende afrontar la falta de acceso a electricidad y la inadecuada infraestructura de carreteras del país.
The $257 million Liberia Compact seeks to address two binding constraints to economic growth in Liberia: lack of access to reliable and affordable electricity and inadequate road infrastructure. To address that, 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 support for the development of a nationwide road maintenance framework.
The compact will significantly enhance Liberia’s engagement in the U.S. Government’s Power Africa effort. Presently, only 2 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 complements 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.
The Energy Project is comprised of four interlinked activities aimed at enhancing power generation, strengthening the capacity of key sector institutions, and supporting the development of foundational policies 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 a decrease in the overall electricity tariff, and contribute to increased reliability and adequacy of electricity. This activity addresses the overarching problem in the energy sector, i.e., lack of access to affordable and reliable electricity, by targeting the insufficient supply of electricity in Liberia.
Complementary activities in the Energy Project should support the results of the Mt. Coffee Rehabilitation Activity, address other root cause problems in the sector and/or mitigate negative impacts and risks of the investment, such as the risk of increased saltwater intrusion in the municipal water supply.
Inadequate road infrastructure is a binding constraint to economic growth in Liberia. Rather than a large capital investment directly in road construction or maintenance, the Roads Project focuses on institutional strengthening via two activities.
The National Road Maintenance Activity will pilot up to five Regional Maintenance Centers (“RMC”), including the construction of at least two RMCs, and match government of Liberia contributions up to $8 million dollars into a Road Maintenance Fund, which is considered critical for the sustainability of road maintenance.
The Roads Sector Reform Activity will provide for capacity building and technical assistance at the national and regional level, including training support for RMCs, the Ministry of Public Works, the Ministry of Transport, and Road Fund Administration staff in transportation planning, policy, maintenance, and institutional systems from the local to international level.