Millennium Challenge Compact for Liberia Ends

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A view of the Mt. Coffee Hydro Power Plant, downstream of the main spillway (Photo: Millenniu Challenge Account- Liberia)

The Millennium Challenge Account-Liberia has announced the end, effective January 21, 2021, of the Millennium Challenge Compact between the United States Government and the Government of Liberia.

The Compact, during its operation, improved the amount and reliability of electricity supply, more than doubled the number of homes with electricity access and left the Liberian government with a sustainable, data-driven, road maintenance system.

With the signing of the Compact in October 2015, the United States Government, acting through the Millennium Challenge Corporation (MCC), provided US$257 million to help increase access to more reliable and affordable electricity; and improve the planning and execution of routine, periodic, and emergency road maintenance.

Its goal was to support the energy and road sectors in Liberia with the aim of helping to reduce poverty through economic growth in Liberia.

Mt. Coffee Rehabilitation

The Compact, according to a press release, contributed US$146.3 million to the rehabilitation of the Mt. Coffee Hydro Power Plant, the single largest support of any donor to the power plant, constituting 40 percent of the total US$350 million spent to rebuild the hydropower plant.  

“With 88 MW power generating capacity; Mt. Coffee represents the largest source of power and renewable energy supply for the Liberia Electricity Corporation (LEC). Mt. Coffee has enabled LEC to expand more reliable and affordable power supply to more than 82,000 homes, businesses, and other entities, compared to a little over 34,000 when Mt. Coffee came online in 2016,” the release said. “Mt. Coffee also allowed LEC to reduce the average number of electricity outages by 45 percent since the start of the Compact. Outages are also much shorter now, with a reduction of 83 percent in the average duration of outages.”

The release added that due to the intervention, electricity tariffs have also reduced from US$0.56 per kilowatt-hour to US$0.35 per kWh, representing a 37.5 percent decrease—a cut, which has made electricity more affordable for ordinary consumers, particularly marginalized households and small and medium enterprises.

“While this is still a very high tariff, an independent study found that LEC offers cheaper and better-quality power than generators or mini-grids can provide. In focus group discussions with households and interviews with small business owners, respondents described how, once connected to LEC, they could start income-generating activities, such as selling cold drinks, or expand business operations by staying open later and offering more goods. Customers reported that their main use of electricity was lighting but also showed shifts toward using electronics and appliances. Small businesses shifted toward using freezers and large end-users shifted toward technology and machinery after connection,” the release said.

It added: “At the commencement of the Mt. Coffee rehabilitation, Liberia lacked a skilled workforce to operate and maintain the hydropower plant. The project has provided for on-the-job training for operators and maintenance staff, which will allow for sustainable local operation and maintenance of Mt. Coffee. The project has already trained three generations of trainees in hydropower plant operation and maintenance.”

Raw Water Pipeline Construction

According to the release, the MCC compact also funded the construction of a new 48-inch diameter Raw Water Pipeline between Mt. Coffee and the White Plains Water Treatment Plant to replace a damaged 36-inch diameter pipeline that had not been in use since before Liberia’s civil war.

By drawing water from Mt. Coffee, the release said, the new pipeline’s operation will eliminate saltwater intrusion into the Liberia Water and Sewer Corporation (LWSC) water treatment plant at White Plains, which occurs in the dry season when the St. Paul River experiences low water levels.

It added that with the new bigger pipeline, the municipal water supply is not only of much higher quality but also because of the use of gravity flow to transport water into the system; LWSC will save an estimated US$780,000 annually in the cost of pumping water into the treatment plant. The new expanded pipeline will contribute to the increased supply of better quality water to about 1 million residents of Monrovia and surrounding areas. The total project cost is around US$18 million.

LEC Management Services Contract

“Aside from the investment in Mt. Coffee, a significant part of the Compact support went to helping LEC become a viable public utility. The compact funded the Liberian government’s efforts to hire a private firm, ESB International (ESBI), under a management services contract to turn LEC into a more operationally and financially efficient and effective corporation,” the release said.

“Despite many challenges, the utility has achieved success in the areas of network reliability, availability of power plants, collections efficiency, new customer connections, improved customer service, and information technology that can improve various aspects of utility’s processes and procedures, such as network development and customer relations,” the release noted.

Procurement of Connection Materials for LEC

The MCA release said, under the Compact, it invested in materials to help LEC increase connections, improve reliability, and provide more affordable electricity. This included procuring over US$1.78 million in priority items, including transformers, meters, surge arrestors, specialized vehicles, spare parts for generators, utility poles, conductors, tools, and personal protective equipment.

Refurbishment of LEC Waterside Customer Service Center

Meanwhile, MCA-L noted that it also remodeled LEC’s Waterside Customer Service Center into a state-of-the-art facility that now boasts 300 percent increased capacity.

“The remodeled facility now features spacious waiting areas, offices for LEC staff, a call center, and sanitary facilities more accessible to women and disabled people. Equipped with new IT infrastructure and staff trained in delivering effective customer service, the new Customer Service Center reduces waiting times for customers and allows for better tracking of service orders through the new, MCC-supported IT solutions,” the release said.

A resident of the Duport Road community who has been an LEC customer since 2019 remarked, “The new service center is very beautiful. Our waiting time is now much shorter than before. LEC can now address our problems much faster,” it added.

2 COMMENTS

  1. So is this picture showing part of the repair to the power plant?
    With all that big money mentioned, shouldn’t we be seeing a complete restoration of the plant and the whole city up and running?

  2. Concerned Citizen

    That’s the reason the United States has ended the Millennium Compact Agreement (MCA). How come 257 million United States dollars were expended in improving this dam and as expert witnesses say, it still cannot deliver the promises for which such a loan was secured?

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