President Joseph Nyuma Boakai has received a briefing on the progress of Liberia’s engagement with the United States Millennium Challenge Corporation (MCC) toward the development of a proposed compact, with a focus on electricity infrastructure and mining sector reforms.
The update was provided by MCC Country Director Kevin George and National Coordinator of the Liberia MCC Compact Development Team, Mr. Alieu F. Nyei.
Presenting the progress report, National Coordinator Nyei disclosed that the process has received strong support from the Ministry of Finance and Development Planning and relevant sector institutions as Liberia works to advance the proposed compact.
He informed the President that the process is now moving into a phase focused on identifying and designing projects in the two priority areas, with the broader objective of promoting economic growth and expansion.
Mr. Nyei explained that the focus on electricity reflects the MCC’s approach of identifying sectors with the potential to accelerate economic growth and address key constraints to development.
On electricity infrastructure, the Compact Development Team indicated that the proposed compact is expected to prioritize investment in transmission infrastructure, including the expansion, rehabilitation, and construction of transmission facilities.
The proposed initiative is also expected to support reforms in electricity sector governance to encourage greater private-sector participation in power generation and improve efficiency in electricity distribution.
Regarding the mining sector, the Team highlighted the need for legal and regulatory reforms to strengthen Liberia’s capacity to negotiate mining agreements, protect national interests, and secure greater benefits from the country’s natural resources.
Mr. Nyei pointed to gaps in the existing legal framework, noting that the relevant framework dates back to 2007 and requires updating to reflect current needs and realities.
“We want to be able to finalize the development of a new legal framework for the country, having data that is accurate, so that when we go into negotiations of new contracts, we are not shortchanging Liberia,” Mr. Nyei stated.
In response to the briefing, President Boakai emphasized the Government’s commitment to accelerating the compact development process and working closely with the MCC to develop projects that address Liberia’s development priorities.
Discussions also highlighted the need for technical support to strengthen the Government’s capacity to assess proposed reforms and negotiate agreements that protect Liberia’s interests and deliver greater benefits to the country.
As part of the next steps, an electricity options and readiness study was identified as necessary to assess potential reform options and determine the requirements for implementing the preferred approach. The study is expected to provide recommendations by January 2027, giving the Government a basis for determining which electricity reform option to pursue in collaboration with the MCC.
The MCC Development Team emphasized that its compact development model is based on partnership with eligible countries rather than imposing predetermined projects. Under this approach, Liberia identifies its development challenges and priorities, while the MCC works with the Government to develop and implement appropriate solutions.
The Team further noted that the pace of progress will depend on continued coordination between the Government of Liberia and the MCC, with the Government seeking to advance the process as quickly as possible.
Concluding the session, President Boakai commended the Team for its work on the proposed compact and expressed confidence in the process, noting its potential to support Liberia’s broader economic development objectives by addressing persistent electricity constraints and strengthening the legal and institutional framework governing the mining sector.
—-Emansion
