By Festus Poquie
US authorities are reinforcing financial aid to Liberia as the country’s top development agency named the West African nation for a likely $500 million to $1 billion grant to spur economic programs and ease poverty.
The Millennium Challenge Corporation’s (MCC) Board of Directors selected Liberia as newly eligible to develop a compact during its quarterly meeting on December 18.
Liberia was selected in recognition of the progress the country has made to strengthen its performance on the MCC scorecard and the country’s commitment to pursuing critical economic and democratic governance reforms, the agency said.
The Board also discussed the new opportunities that the Millennium Challenge Corporation Candidate Country Reform Act, provides for MCC.
“MCC is proud of our longstanding history with Liberia and is enthusiastic about embarking on a new partnership to advance opportunities for the people of Liberia,” \MCC’s Chief Executive Officer Alice Albright said.
Liberian President Joseph Boakai said in a radio broadcast Wednesday night, his country qualification for MCC partnership is an “optimistic news that is more empowering and impactful for our progress.
“This giant achievement by our dear country will unlock a significant amount of resources for our development agenda and further help to address the binding constraints to growth in our country,” he said.
“This is a development that must lift any spirit and restore hope that indeed we are bound to achieve greater feats. Let’s join our voices together and say congratulations, Liberia!
The amount of funding that theMCC provides under its compact with a country can vary significantly based on several factors, including the specific needs and priorities of the partner country, the proposed projects, and the overall goals of the compact.
MCC compacts can range from approximately $300 million to over $1 billion. For instance, some compacts have been in the range of $300 million to $700 million, while larger programs in wealthier or strategically important countries might exceed $1 billion.
Liberia’s previous compact with the Millennium Challenge Corporation (MCC), which was signed in 2010. The total amount involved in the country’s first Compact with the MCC was approximately $257 million.
This funding was intended to address various challenges faced by the country and was strategically aligned with Liberia’s development goals, focused on improving the country’s infrastructure, particularly in the areas of energy and transport, health, and agriculture.
In the energy sector, significant investments were made to restore and expand the electricity grid, which included the rehabilitation of the Mount Coffee Hydropower Plant. Also included was initiatives to promote off-grid solar energy solutions to improve access to electricity in rural areas.
Wednesday marked the final Board meeting under the Biden administration and included the participation of presidentially appointed Board members, including Secretary of State Antony Blinken, Congressman Ander Crenshaw, and other senior officials.
MCC CEO Albright reflected on successes in recent years including investing $4.1 billion across 15 programs that are slated to benefit nearly 80 million people, and thanked Secretary Blinken for championing MCC’s life-changing work and incentivizing economic growth and good governance around the world.
The Millennium Challenge Corporation is an independent U.S. government development agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants that pair investments in infrastructure with policy and institutional reforms to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights.
