Liberia: As MCC Board Selects nation for New Partnership, US Embassy Cautions Eligibility Does Not Assure A Compact Program

Monrovia – The announcement that Liberia has been chosen by the Millennium Challenge Corporation (MCC) Board of Directors to develop a compact has been met with jubilation by the federal government and the Liberian populace.

By Gerald C. Koinyeneh, [email protected]

This growth comes after Liberia handed 11 out of 20 indicators on the Millennium Challenge Corporation’s scorecard for the 2025 Fiscal Year, marking a slight decline from the earlier 12 months’s 14. The information was first disclosed by President Joseph Nyuma Boakai on Wednesday night time throughout his nationwide deal with on the Executive Mansion, even earlier than the MCC’s official announcement.

“This is not just a victory for the government but for all Liberians. It reflects the international community’s confidence in our ability to deliver progress through unity and reform. Let us join hands to celebrate this collective success… This is a development that must lift every spirit and restore hope that we are bound to achieve greater feats. Let us join our voices together and say, ‘Congratulations, Liberia!” President Boakai acknowledged.  

The MCC subsequently confirmed Liberia’s choice on its web site, stating that the choice was in recognition of the progress the nation has made in strengthening its efficiency on the MCC scorecard and its dedication to pursuing important financial and democratic governance reforms. MCC’s Chief Executive Officer, Alice Albright, expressed enthusiasm concerning the new partnership, saying, “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.”

What’s Next for Liberia?

Contrary to public notion, being chosen by the MCC Board doesn’t robotically assure a compact program. The U.S. Embassy in Monrovia cautioned that eligibility alone doesn’t guarantee Liberia will obtain a compact.

In a launch, the Embassy famous, “MCC expects all partner countries to continue to demonstrate an ongoing commitment to the principles of inclusive democratic governance that underpin MCC’s eligibility criteria.  Eligibility does not guarantee that Liberia will receive a compact program. MCC and the U.S. Embassy look forward to working closely with the Government of Liberia to launch the compact development process.”

The Embassy additional defined that the dimensions and content material of the ultimate program will rely on analytical work carried out in partnership between MCC and the Government of Liberia, the provision of funds, and approval by the MCC Board of Directors.

MCC Programs

The MCC presents two sorts of applications for chosen international locations. Its flagship program, the compact, is a five-year grant settlement typically valued between $100 million and $700 million. Liberia has beforehand benefited from an MCC compact.

According to the Congressional Research Service (CRS), accomplice governments develop and implement compacts underneath MCC pointers and oversight. The course of begins with a “growth diagnostic”—an evaluation of the principal constraints (normally one to a few) to quicker financial development and poverty discount. Countries then choose constraints and suggest corresponding tasks for approval by the MCC Board. If permitted, the compact is signed, adopted by a years-long preparatory interval earlier than implementation. Compacts typically spend money on bodily infrastructure, coverage reforms, and capacity-building measures. Sub-Saharan Africa stays a main focus for MCC investments, with transport and power as prime sectors.

Liberia’s Previous Compact

In 2015, the United States Government, by way of MCC, offered $257 million to Liberia to reinforce entry to dependable and inexpensive electrical energy and enhance street upkeep. The Compact contributed $146.3 million to rehabilitate the Mt. Coffee Hydro Power Plant, the most important donor help to the plant, accounting for 40% of the whole $350 million reconstruction value. With an 88 MW producing capability, Mt. Coffee has considerably expanded dependable and inexpensive electrical energy provide, benefiting over 82,000 properties and companies in comparison with simply 34,000 in 2016. The venture additionally lowered the common period of electrical energy outages by 83% and decreased outage frequency by 45%, in response to the US Embassy.

Raw Water Pipeline Construction

The Compact funded the development of a brand new 48-inch diameter Raw Water Pipeline between Mt. Coffee and the White Plains Water Treatment Plant, changing a broken 36-inch pipeline unused since Liberia’s civil warfare. By eliminating saltwater intrusion into the therapy plant, the brand new pipeline improved water high quality and lowered operational prices by an estimated $780,000 yearly. It now gives better-quality water to about 1 million residents of Monrovia and surrounding areas. The venture’s complete value was $18 million.

LEC Management and Other Investments

The Compact additionally supported the Liberia Electricity Corporation (LEC) by way of a administration companies contract with ESB International (ESBI) to reinforce operational and monetary effectivity. Additional investments included procurement of connection supplies, refurbishment of LEC’s customer support middle, capacity-building for LEC workers, and the institution of the Liberia Electricity Regulatory Commission.

Future Prospects

While the federal government has but to announce particular tasks for the brand new compact, hypothesis suggests it would prioritize power and street infrastructure, which stay key areas for growth.

Who takes the credit score?

President Boakai emphasised that the choice displays the enhancements made underneath his administration, saying, “Today, thanks to the significant improvements we have made in our governance process, the Millennium Challenge Corporation (MCC) has officially informed me that Liberia’s outstanding performance has qualified the country for a second Compact.”

However, Samuel Tweah, former Finance Minister underneath the Weah administration, argued that Liberia’s choice was based mostly on sturdy efficiency on MCC’s scorecards in the course of the earlier administration. Tweah defined that the 2025 scorecard, revealed in November 2024, displays information from March 2023 to March 2024—a interval primarily underneath the Weah administration.

As Liberia embarks on the compact growth course of, all eyes shall be on the federal government to ship impactful tasks that deal with the nation’s important growth challenges.