Government is pushing for nearly US$500 million in support from the Millennium Challenge Corporation (MCC).
The effort is to address critical development challenges, particularly in the energy sector.
Finance and Development Planning Minister, Augustine Kpehe Ngafuan, made the case for during a panel discussion in New York on September 23.
The discussion was held under the theme: “Powering West Africa’s Growth: United States Support for Regional Energy Abundance.”
The request comes as Liberia remains in the development phase of a proposed second MCC Compact, meaning the country has not yet secured the US$500 million.
The MCC’s official records currently list Liberia’s proposed compact as “Development,” rather than signed, or approved funding.
Millennium Challenge Corporation
Liberia previously received a US$256.7 million MCC Compact, signed in 2015, and completed in January 2021.
The program supported investments intended to improve electricity, roads, and institutional capacity.
Millennium Challenge Corporation +1
The new compact opportunity followed Liberia’s selection by MCC Board to develop a subsequent compact after the country met the corporation’s eligibility requirements.
MCC said, Liberia had passed its scorecard for the third consecutive year, and was invited to develop another compact.
MCC Assets
However, the current push for nearly US$500 million should not be interpreted as money already secured for Liberia.
MCC compact development involves extensive technical preparation, project design, policy reforms, and further assessment before an agreement can be signed, and funds committed.
The energy sector is expected to remain a major area of focus, because unreliable and inadequate electricity continues to constrain businesses, households and economic activity.
The government is meanwhile, seeking to position the proposed compact within the wider development, and energy-reform agenda.
The process also puts pressure on the government to demonstrate that reforms associated with the proposed compact are producing measurable results.
