By zainab.joaque@awokonewspaper.sl
Washington DC, USA – Sierra Leone’s $481 million Compact package, aimed at bolstering its economic growth through enhanced access to electricity, awaits approval from the United States Congress, with expectations set for the end of April 2024.
The meeting at MCC
In a bilateral meeting with the Technical Team of the Millennium Challenge Corporation (MCC), Financial Secretary Matthew Dingie conveyed the news that the Compact proposal had been forwarded to the US Congress for its initial approval. Dingie, speaking to Awoko Newspaper following the meeting, expressed optimism about Congress’s response, anticipating approval by the end of April. He further disclosed that upon approval, Sierra Leone would return to Washington for negotiations with the MCC, with hopes for final approval by mid-2024.
The proposed Compact, outlined in the Congressional Notification Transmittal Sheet, aims to address a critical constraint to economic growth in Sierra Leone: the insufficient availability of affordable and reliable electricity. Comprising three key projects—Transmission Backbone Project, Distribution and Access Project, and Power Sector Reform Project—the Compact endeavours to enhance electricity access for households, businesses, and social institutions.
Dingie elaborated on the discussions held during the meeting, which focused on resolving outstanding issues and requirements for the implementation phase. He expressed satisfaction with the progress made, particularly in delineating specific timelines.
Highlighting the government’s energy priorities, Dingie underscored the emphasis placed on energy reforms and private sector participation in Sierra Leone’s energy sector. He stressed the necessity of sustainable energy supply through private sector-led initiatives, citing ongoing reforms within the Electricity Distribution and Supply Authority (EDSA) and efforts to streamline processes for independent power producers (IPPs).
Dingie emphasized the government’s commitment to ensuring a conducive environment for private sector investment in the energy sector, facilitated by reforms supported by the World Bank. He asserted that by the time the Compact receives final approval, significant reforms would have already been implemented, facilitating seamless integration with subsequent investments.
Beyond energy, Dingie highlighted agriculture as another focal point, emphasizing the need to leverage enhanced energy access for agricultural productivity and value addition. With a focus on targeted ecological zones, such as rice production and cassava processing, the Compact aims to boost agricultural output for both domestic consumption and export.
In conclusion, Dingie expressed optimism that the energy generated through the Compact would catalyze economic activities, particularly in agro-processing, thereby supporting the country’s socio-economic development agenda. ZIJ/19/4/2024