Finance Minister Augustine K. Ngafuan
[By Pewu Y. Sumo]
Monrovia – Liberia is poised for a historic second Compact with the Millennium Challenge Corporation (MCC) after successfully passing the corporation’s rigorous annual scorecard, according to Finance and Development Planning Minister, Hon. Augustine Kpehe Ngafuan.
Speaking at a media engagement in Monrovia today, Minister Ngafuan announced that the country’s recent success, which saw it pass 12 out of 22 indicators, is a significant boost in its quest for a compact that could substantially accelerate energy and infrastructure development.
Passing the “Hard Hurdles”
The Minister emphasized that passing the scorecard was a critical milestone, as anything less would have ruled Liberia out for compact consideration. Specifically, he highlighted the passing of the three critical mandatory indicators, often referred to as the “hard hurdles.”
“We passed three hard hurdles (corruption, government accountability, and personal freedom), a threshold Liberia reached to be considered,” Min. Ngafuan noted.
Liberia was declared “Electable” by the MCC in December last year, and the recent successful scorecard pass confirms the country’s commitment to the core principles of good governance required for long-term MCC partnerships.
Focus on Energy and Infrastructure
Minister Ngafuan stressed that the potential funding from a second Compact is essential for addressing the nation’s key development constraints.
“Liberia’s score… is a boost for the country in its quest for a compact which could significantly improve and spur energy and infrastructure development,” he said.
The first MCC Compact, valued at US$257 million and won by Liberia in 2015, was primarily focused on rehabilitating the Mount Coffee Hydropower Plant and other electric facilities. The expectation is that the new Compact will build upon this progress by tackling broader infrastructure and energy challenges.
Diplomatic Push to Resume Partnership
Minister Ngafuan attributed the delay in the compact process to the transition in U.S. leadership, which led to a pause in many MCC and USAID programs globally.
He stated that the administration of President Boakai has vigorously pursued the resumption of the MCC Compact, which had been put on hold. This included a diplomatic push during President Boakai’s recent visit to the U.S.
“One of the things we did there was to engage the MCC. I led the team; we visited the management,” the Minister detailed, adding that the efforts, along with the instrumentality of Foreign Minister Beysolow Nyanti, paved the way for an MCC assessment team to visit Liberia in September of this year.
Minister Ngafuan also underscored the strategic importance of the United States to Liberia, clarifying that the U.S. remains Liberia’s second largest donor next to the World Bank.
Preparing for Compact Development
Following the MCC’s assessment and the successful scorecard result, the Ministry is moving quickly to establish the necessary administrative structure to manage the upcoming phase.
“We are about to hire a national coordinator for the new MCC office, senior economist, gender specialist, private sector specialist and some position,” Min. Ngafuan revealed, signaling that the process of developing the second Compact is now moving forward rapidly.
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