The Millennium Challenge Corporation (MCC) approved a proposed budget of $480.67 million for Sierra Leone, focusing on enhancing the energy sector to drive economic growth and improve living standards. The budget is divided into four main components: the Transmission Backbone Project, the Distribution and Access Project, the Power Sector Reform Project, and Monitoring and Evaluation, with additional funds allocated for Program Administration and Oversight.
- Transmission Backbone Project – $226.7 million- This is the largest component of the budget, aimed at strengthening the backbone of Sierra Leone’s electricity transmission system. It includes:
Transmission Dispatch Centre Activity ($22.45 million): Establishing a centralized hub for managing electricity transmission, ensuring efficient and reliable power distribution.
Southern Transmission Corridor Activity ($170.9 million): Developing a critical transmission line to connect southern regions, facilitating the flow of electricity across the country.
Bumbuna-Freetown Line Upgrade Activity ($24.39 million): Upgrading existing infrastructure to increase the capacity and reliability of power supply to the capital.
EGTC Capacity Building Activity ($7.97 million): Enhancing the capabilities of the Electricity Generation and Transmission Company (EGTC) to manage and maintain the transmission network.
- Distribution and Access Project – $123.8 million- This component aims to improve the distribution network and expand access to electricity:
Distribution Dispatch Centre Activity ($30.55 million): Creating a centre for managing the distribution of electricity, ensuring efficient service delivery.
Distribution Refurbishment Activity ($44.34 million): Refurbishing and upgrading existing distribution infrastructure to improve reliability and reduce losses.
Access Activity ($26.85 million): Expanding access to electricity in underserved areas, bringing power to more households and businesses.
EDSA Capacity Building Activity ($22.1 million): Strengthening the Electricity Distribution and Supply Authority (EDSA) to enhance its operational efficiency.
- Power Sector Reform Project – $50.3 million- Focused on sustainable reforms within the power sector, this component includes:
MIAA Activity ($24.5 million): Implementing the Millennium Impact and Assessment Activity to evaluate the impact of reforms and guide future actions.
Financial Sustainability Activity ($8.6 million): Ensuring the financial stability of the power sector by implementing policies and mechanisms for cost recovery and financial management.
Policy & Planning Activity ($10.67 million): Developing comprehensive policies and strategic plans to guide the growth and development of the power sector.
Cross-Cutting Capacity Activity ($6.52 million): Building cross-sectoral capacities to support overall reform and sustainability efforts.
- Monitoring and Evaluation – $7.8 million- This allocation is dedicated to monitoring and evaluating the progress and impact of the projects, ensuring accountability and transparency.
- Program Administration and Oversight – $72 million- These funds cover the administrative and oversight costs necessary to effectively implement and manage the compact projects.
The proposed compact budget for Sierra Leone by the MCC represents a strategic investment to overhaul the country’s energy sector. The substantial allocation towards transmission and distribution infrastructure, along with critical reforms and capacity-building initiatives, underscores the importance of reliable electricity in driving economic growth and improving the quality of life.
With proper implementation and oversight, this budget can potentially transform Sierra Leone’s energy landscape, fostering sustainable development and poverty reduction.
