By Theresa Thomas
Last week, after years of hard work, the government of President Julius Maada Bio finally succeeded in landing the Millennium Challenge Corporation (MCC) grant of $480 million. This is one of the largest compact grants ever approved for any country and has been successfully championed by President Bio. All of the money will be injected into transforming the energy sector in the country, which is critical to growth.
Following the approval of the funds, the question arises: how will the money be used?
At the usual weekly government press briefing, the National Coordinator for the Compact Development Unit, Ndeye Fatu Koroma, explained the areas of focus. Madam Koroma said the project will broadly focus on three key areas: the Transmission Backbone, Access and Distribution, and Reform in the energy sector.
With the Transmission Backbone, Koroma stated that the MCC money will be invested to complete the transmission loop from Newton in the Western Area to Pujehun District in the South. The investment will also see the construction of a national dispatch center at Newton, which will station both the power provider and supplier—EGTC and EDSA—to monitor the grid and make real-time decisions aided by technology. The MCC Coordinator noted that over $200 million will be spent on this aspect of the project, adding, “This will transform the private sector.”
The second project the MCC money will invest in is Access and Distribution. This project will ensure that cities and towns across the country are connected to the main electricity grid. Currently, Sierra Leone’s electricity penetration is around 30%, and this project aims to significantly expand on that. Among a number of steps under this project, Madam Koroma said, “We would decommission the shield wire in Makeni and build a substation to improve the electricity situation.” She emphasized the importance of having a strong and resilient network to increase evacuation capacity and improve stability. Around $120 million has been set aside for this.
The third aspect focuses on Reforming the sector. Koroma mentioned that MCC will support the government in whatever direction they choose with EDSA, considering the current plans for privatization to improve its financial viability and enhance the transmission capacity of EGTC. She highlighted that reform is a critical aspect of the project because it will guarantee sustainability.
“At the top of our mind is to make sure every dollar that has been promised to Sierra Leone is spent, and the good thing is that we have experience. We had implemented the $44.4 million threshold program, so this is to build on that,” Koroma said.
Following the announcement of the grant, Sierra Leone is expected to sign the deal by September, according to the coordinator, which will then kickstart the five-year lifespan of this strategic investment. $42 million has already been earmarked for the mobilization and design phase of the projects. Koroma expressed her pride in the fact that Sierra Leoneans have led this effort and will continue to do so.
