Notice2024-22902
Notice of Entering Into a Compact With the Republic of Sierra Leone
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 4, 2024
Issuing agencies
Millennium Challenge Corporation
Abstract
In accordance with the provisions of the Millennium Challenge Act of 2003, as amended, the Millennium Challenge Corporation (MCC) is publishing a summary of the Millennium Challenge Compact (Compact) between the United States of America and the Republic of Sierra Leone. Representatives of the United States of America and the Republic of Sierra Leone executed the Compact on September 27, 2024. The complete text of the Compact has been posted at: https://www.mcc.gov/resources/ doc/compact-sierra-leone/.
Full Text
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<title>Federal Register, Volume 89 Issue 193 (Friday, October 4, 2024)</title>
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[Federal Register Volume 89, Number 193 (Friday, October 4, 2024)]
[Notices]
[Pages 80962-80963]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-22902]
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MILLENNIUM CHALLENGE CORPORATION
[MCC FR 24-09]
Notice of Entering Into a Compact With the Republic of Sierra
Leone
AGENCY: Millennium Challenge Corporation.
ACTION: Notice.
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SUMMARY: In accordance with the provisions of the Millennium Challenge
Act of 2003, as amended, the Millennium Challenge Corporation (MCC) is
publishing a summary of the Millennium Challenge Compact (Compact)
between the United States of America and the Republic of Sierra Leone.
Representatives of the United States of America and the Republic of
Sierra Leone executed the Compact on September 27, 2024. The complete
text of the Compact has been posted at: <a href="https://www.mcc.gov/resources/doc/compact-sierra-leone/">https://www.mcc.gov/resources/doc/compact-sierra-leone/</a>.
(Authority: 22 U.S.C. 7709 (b)(3))
Dated: September 30, 2024.
Peter E. Jaffe,
Vice President, General Counsel, and Corporate Secretary.
Summary of Sierra Leone Compact
Overview of MCC Sierra Leone Compact
The Millennium Challenge Corporation (MCC), on behalf of the United
States of America, has signed a five-year Compact with the Republic of
Sierra Leone aimed at reducing poverty through economic growth. MCC
funding of $480,669,000, together with a voluntary contribution of
$14,200,000 from the Government of Sierra Leone, will support economic
growth in Sierra Leone through investments in the energy sector to
address the constraints of insufficient availability of affordable and
reliable electricity. The Compact will address these constraints
through three projects: (1) the Transmission Backbone Project; (2) the
Distribution and Access Project; and (3) the Power Sector Reform
Project.
Background and Context
Sierra Leone's economy suffers from a power sector that cannot
serve its existing customer base or keep up with future business and
household demand. This is due to limited and high-cost supply, low
capacity and poor reliability of the transmission and distribution
networks, and the ineffectiveness of sector policies and institutions.
These bottlenecks negatively impact current customers, most of whom are
in the capital city, and prevent Sierra Leone from expanding
electricity service to the 70% of the population without electricity.
As the economy grows and the grid expands, load forecasts suggest
demand will more than double by the end of the compact term.
Meeting this demand will require large investments in foundational
infrastructure and institutional capabilities. The need to
simultaneously address multiple sector constraints, combined with the
long lead times required to plan, finance, and construct large scale
infrastructure, poses a major coordination challenge for public and
private investment in the sector. This coordination challenge is
magnified by the lack of capacity at sector institutions to reassess,
update, and execute against sector planning documents--as well as
sector wide issues with transparency and governance. As a result, much
needed public and private investment is all too often delayed,
withdrawn, or exceedingly costly due to the risks and uncertainties
involved.
Given this sector context, the Compact strengthens the foundations
of a reliable electricity sector through investments in transmission
and distribution infrastructure, development of a strong enabling
environment for independent power producers, and substantial capacity
building support for the utilities and key sector institutions.
Project Summaries
The compact program consists of three projects:
(1) The Transmission Backbone Project ($226,702,000) will expand
Sierra Leone's transmission network to increase network coverage,
increase the throughput capacity needed to evacuate increasing
electricity supply, and increase reliability of service. With less than
500 miles of transmission lines currently in Sierra Leone, the
country's extremely limited grid means most citizens do not have access
to power. This project connects a high-voltage West African Power Pool
transmission line to the capital city. The project also builds and
operationalizes a main and back up transmission dispatch center
critical for network reliability and integration into the regional
power marketplace. Technical assistance supports critical capacity
development for the transmission utility in transmission operations and
maintenance.
(2) The Distribution and Access Project ($123,634,000) is designed
to increase reliability of the grid, improve the financial viability of
the distribution utility, and make strategic investments in connecting
new customers to the grid and regularizing existing connections. This
project refurbishes critical components of the distribution network in
the capital city where 80% of power is consumed in Sierra Leone and
reduces both technical and commercial losses through the provision of
new meters and organizational change. Access investments include
distribution line and substation expansion as well as direct
connections to select end users, driven by socioeconomic data and
planned transmission expansion. In addition, this project will involve
the construction and operationalization of a main and a back-up
distribution dispatch center to improve the Electricity Distribution
and Supply Authority's operations and maintenance performance.
[[Page 80963]]
(3) The Power Sector Reform Project ($50,490,000) is designed to
improve sector financial sustainability, reduce the cost of service,
and improve regulation by investing in priority sector reforms and
capacity-building for key sector actors, including the utilities,
regulator, and Ministry of Energy. The project includes embedded
support to key sector institutions such as the regulator, the
Electricity and Water Regulatory Commission, and the Ministry of Energy
(especially its planning functions) to help them develop the
capabilities needed to shepherd sector development over the coming
decade. This support is intended to help Sierra Leone implement its
Power Sector Reform Roadmap and Action Plan, including achieving
improvements on key sector performance indicators targeting improved
sector financial sustainability, reduced cost of service while
fostering cost recovery for supplied electricity, and improved
regulation. Additionally, this project seeks to spur private sector
financed generation through project preparation support, transaction
advisory services, and de-risking mechanisms.
Compact Budget
The table below presents the overall compact budget of
approximately $495 million, which includes MCC funding under the
Compact of up to $480,669,000 and a voluntary Government of Sierra
Leone contribution of $14,200,000.
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Component Amount
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1. Transmission Backbone Project........................ $226,702,000
Activity 1.1: Transmission Dispatch Center.......... 23,447,000
Activity 1.2: Southern Transmission Corridor........ 170,900,000
Activity 1.3: Bumbuna-Freetown Line Upgrade......... 24,390,000
Activity 1.4: EGTC Capacity Building................ 7,965,000
2. Distribution and Access Project...................... 123,634,000
Activity 2.1: Distribution Dispatch Center.......... 30,554,000
Activity 2.2: Distribution Refurbishment............ 44,335,000
Activity 2.3: Access................................ 26,850,000
Activity 2.4: EDSA Capacity Building................ 21,895,000
3. Power Sector Reform Project.......................... 50,490,000
Activity 3.1: MIAA.................................. 25,250,000
Activity 3.2: Financial Sustainability.............. 8,300,000
Activity 3.3: Policy & Planning..................... 10,420,000
Activity 3.4: Cross-Cutting Capacity Activity....... 6,520,000
4. Monitoring and Evaluation............................ 7,800,000
5. Program Administration and Oversight................. 72,043,000
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Total MCC Compact Funding........................... 480,669,000
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Total MCC Compact Funding............................... 480,669,000
Government of Sierra Leone Contribution................. 14,200,000
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Total Program Funding............................... 494,869,000
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[FR Doc. 2024-22902 Filed 10-3-24; 8:45 am]
BILLING CODE 9211-03-P
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