As MCC Compact II Process Gains Momentum
Monrovia, Liberia – Liberia’s preparations for a possible Second MCC Compact to overhaul the country’s energy sector have taken a significant step with the beginning of a Root Cause Analysis Workshop by the government and the Millennium Challenge Corporation (MCC).
On behalf of the Liberian government, Deputy Minister for Economic Management at the Ministry of Finance and Development Planning Hon. Dehpue Zuo welcomed partners from Millennium Challenge Corporation and the U.S. Embassy near Monrovia on Thursday, February 26, 2026, in Margibi County.
He described the workshop as “a distinct honor” and “a clear demonstration of leadership, partnership, and ownership of collaborative efforts by the Governments of Liberia and the United States.”
Liberia’s eligibility for Compact II, according to Deputy Minister Zuo, comes at a critical juncture for the country’s growth, especially in terms of bolstering the energy sector. “Reliable, affordable, and sustainable electricity is a cornerstone of our national development agenda. It underpins economic growth, drives industrialization, supports job creation, and improves access to quality health care, education, and other essential services,” he added.
The Deputy Minister also admitted that ongoing limitations in the power industry still hinder development, raise operating costs, and restrict Liberians’ potential. Hon. Zuo called the event vital and timely, and encouraged participants to go beyond the obvious problems.
“We need to find the deeper, structural causes that lie beneath the obvious symptoms, high tariffs, low access rates, frequent outages, and heavy reliance on imported fuels,” he stated. “We can only create solutions that are practical, sustainable, and in line with Liberia’s long-term development priorities by addressing these underlying causes.”
The results of the workshop will directly impact government policies, plans, and future investments, he said, praising the MCC’s dedication to rigorous research, evidence-based decision-making, and country ownership.
Deputy Minister Zuo pressed for open and productive communication while highlighting the wide representation at the workshop, which included ministries and agencies, the Liberia Electricity Corporation (LEC), regulators, business sector actors, development partners, and civil society. He however, reiterate the government’s dedication to creating a cutting-edge, effective, and financially sustainable power industry.
Carolyn Lesolchian, the Senior Project Lead for Liberia at MCC, stressed that the Root Cause Analysis is a crucial step in creating a compact that has a quantifiable and long-lasting effect. “This is when we delve deeply into the problems, rather than just jumping to solutions,” Lesolchian said. Before creating initiatives that have the potential to genuinely change Liberia, we must have a thorough understanding of the actual barriers to economic progress.
This year marked the start of the two-year-long MCC compact development process, which entails constraints analysis, root cause analysis, project identification, feasibility studies, and the establishment of significant policy reforms, or “conditions precedent,” that must be fulfilled prior to funding being released.
A compact, if successful, would offer substantial grant cash to encourage specific investments and policy changes in the chosen industry. Energy has become the top priority in Liberia. Liberia’s participation in the MCC is an extension of years of policy reform initiatives to improve economic management, transparency, and governance. The nation has reached this stage of compact development thanks to its progress in satisfying MCC scorecard indicators.
Reported by: Prince Saah
