The government has taken a decisive step toward securing its second compact under the Millennium Challenge Corporation (MCC), launching the Concept Notes Development Process in what officials describe as a critical phase in addressing the country’s deepening energy challenges and broader economic constraints.
The initiative, unveiled at the Bella Casa Hotel in Monrovia over the weekend, marks the formal start of technical work that will shape priority projects–most notably in the electricity sector, long regarded as one of the country’s most binding development bottlenecks.
“This is not just about funding–it is about discipline, partnership, and results,” said Minister of State for Presidential Affairs Samuel A. Stevquoah, underscoring the significance of the process. “We now have a real opportunity to tackle one of the biggest challenges holding back our growth–reliable and affordable electricity.”
The country’s pursuit of a second MCC compact comes with both promise and pressure. The first compact, signed in 2015 and implemented during the administration of Ellen Johnson Sirleaf, was primarily focused on the rehabilitation of the Mount Coffee Hydropower Plant and strengthening the energy sector.
Keep up with the latest headlines on WhatsApp | LinkedIn
That intervention restored a critical piece of infrastructure that had been destroyed during the civil conflict, significantly boosting generation capacity and reconnecting parts of Monrovia to the national grid.
However, while the first compact improved supply, it did not fully resolve systemic challenges–particularly distribution inefficiencies, high tariffs, limited rural access, and governance constraints within the power sector.
More than a decade later, the country’s electricity crisis remains acute.
Access to electricity is still estimated at roughly 30-33 percent, according to Finance Minister Augustine Kpehe Ngafuan, far below regional and global benchmarks.
“Our energy access is still extremely low compared to other countries where access is near 90 percent,” Ngafuan noted. “We are dealing with foundational problems–energy is the engine of the private sector.”
Across the country, communities continue to grapple with unreliable power supply, with frequent outages disrupting businesses; High electricity costs, making operations expensive for small enterprises; Limited rural electrification, leaving vast populations off-grid, and dependence on generators, increasing fuel costs and environmental risks.
For ordinary Liberians, the impact is immediate and personal. Small businesses–from cold water sellers to welding shops–struggle to stay afloat amid erratic power. Hospitals face risks in maintaining critical equipment, while students often rely on candles or generators to study at night.
“Electricity is not a luxury–it is survival for businesses,” said Matee Harding, a businesswoman who runs an entertainment center in Sinkor said. “When the power goes, everything stops.”
While the first MCC compact delivered measurable gains, it was not without challenges.
Implementation delays, procurement bottlenecks, and capacity limitations slowed execution in some areas. Additionally, the benefits of improved generation did not fully translate into widespread access due to weak transmission and distribution systems.
These lessons now inform the design of the second compact.
“The quality of what we produce now will determine what gets funded,” Stevquoah warned, signaling a shift toward stricter technical rigor and accountability.
A Data-Driven, Competitive Approach
Unlike previous processes, the government has emphasized a more transparent and competitive approach to building its technical team for the compact.
Ngafuan highlighted that positions attracted over 100 applicants in some cases, with candidates undergoing dual vetting by both Liberian authorities and U.S. partners.
“The fact that you are here means you’ve crossed two checkpoints,” he told members of the Technical Working Groups. “But the real test is delivery.”
The Technical Working Groups–comprising experts from institutions such as the Liberia Electricity Corporation (LEC), the Rural and Renewable Energy Agency, and other sector actors–are tasked with converting national challenges into actionable investment proposals.
According to Compact Development Coordinator Alieu Fuad Nyei, these concept notes will determine which projects advance to feasibility studies and eventual funding.
“This stage is the bridge between identifying problems and implementing solutions,” Nyei explained.
If successfully secured and implemented, Liberia’s second MCC compact could serve as a transformative intervention in several key areas such as expanding electricity access, particularly in underserved rural communities, improving grid reliability, reducing outages and technical losses, lowering energy costs, making businesses more competitive, strengthening sector governance, ensuring transparency and efficiency and attracting private investment, especially in renewable energy.
Experts say such outcomes could unlock broader economic growth, enabling industrial expansion, job creation, and improved public services.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Since qualifying for the second compact process, the Boakai administration has taken several steps to position the country for success. The government launched technical working groups to drive project design, strengthening coordination between ministries and sector agencies, engaging development partners to align financing and expertise, prioritizing energy sector reforms under its national development agenda and promoting transparency and competition in recruitment and planning.
“This launch is more than a procedural milestone–it is a statement of intent,” Nyei emphasized.
Despite the optimism, expectations remain high–and risks equally significant.
The country must demonstrate not only technical readiness but also sustained political commitment, institutional discipline, and transparency to secure and implement the compact successfully.
For a country where energy constraints have long stifled growth, the second MCC compact represents more than just another development program–it is a potential turning point.
As Stevquoah put it, “One hand cannot tie a bundle. This is a national effort.”
Whether Liberia can translate this moment into lasting transformation will depend on the quality of decisions made now–and the discipline to see them through.
