The United States Congress has reportedly given the green light for the Millennium Challenge Corporation (MCC) to proceed with a $480 million compact grant to Sierra Leone.

According to reports, the MCC is expected to formally sign the compact agreement with the Government of Sierra Leone on Friday.

The approval comes after the MCC Board of Directors reselected Sierra Leone for compact development in December 2023, subject to certain conditions related to the country’s 2023 general elections.

While Sierra Leone has made strides in addressing concerns raised by the US Congress, Senators Jim Risch and Chris Coons have emphasized the importance of continued efforts to meet eligibility criteria. In a joint statement, they noted that the actions of Sierra Leone’s government and political leaders will be crucial in determining the final outcome, including potential approval of the MCC Compact.

“After the flawed elections in June, Sierra Leone’s government and the primary opposition party have made significant commitments that are essential but initial steps in a much longer process to restore confidence in Sierra Leone for a potential Future Compact agreement, there is still considerable work to be done by Sierra Leone’s government and its political leaders to meet all the required eligibility criteria. The actions they take in the forthcoming months and years will be crucial in determining a final outcome, including whether the U.S. Congress will approve an MCC Compact with Sierra Leone,”

Sierraloaded learnt that key milestones, like the release of the Electoral Review Committee report which is crucial for strengthening the country’s democratic and electoral structures after the June 2023 elections, were among the criteria the US Congress considered for final approval.

This $480 million compact will build on Sierra Leone’s continued commitment to energy sector reform, a key component of the country’s MCC threshold program that concluded in 2021, while strengthening the foundation of its energy sector for future growth and sustainability.

The compact includes three key projects: Distribution and Access Project, Power Sector Reform Project, and Transmission Backbone Project. They seek to assist the country in addressing a binding constraint to its economic growth: the insufficient availability of affordable and reliable electricity to satisfy demand among households, businesses, and social institutions.

The compact is designed to strengthen the foundation of a reliable electricity sector through investments in transmission and distribution infrastructure, development of a strong enabling environment for independent power producers, and capacity building support for the utilities and key sector institutions.