Sierra Leone is set to sign a five-year, $480,669,000 Millennium Challenge Compact with the Millennium Challenge Corporation (MCC), following a 15-day congressional notification period that began on July 29, 2024.

The Millennium Challenge Corporation (MCC) has issued a Congressional Notification regarding its plans to formalize a Millennium Challenge Compact with Sierra Leone. This notification, transmitted to Congress on July 29, 2024, indicates that the signing of the compact and the subsequent allocation of funds are expected to occur 15 days after the notice date.

The compact represents a major investment in Sierra Leone’s economic development, focusing on key infrastructure and reform projects. The notice includes supplemental information detailing the scope and objectives of the compact.

This substantial investment aims to enhance the country’s electricity sector through three main projects:

Transmission Backbone Project: This initiative will construct a new transmission corridor and establish a centralized dispatch center to improve network management.

Distribution and Access Project: Focuses on refurbishing the existing distribution network, extending electricity access to underserved areas, and setting up a new distribution dispatch center.

Power Sector Reform Project: Aims to improve the sector’s financial sustainability, regulatory frameworks, and encourage private sector investment, while supporting key sector institutions to enhance operational efficiency and financial management.

Currently, about 30% of Sierra Leone’s population has reliable electricity access. The compact builds on the previous Threshold Program’s successes and aligns with the U.S. Power Africa initiative.

The compact is projected to benefit approximately 4.6 million people, particularly improving living standards and economic opportunities for those below the national poverty line.