U.S. and Senegal Sign Millennium Challenge Corporation Power Compact

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U.S. Secretary of State Michael R. Pompeo and Senegalese Prime Minister Mahammed Boun Abdallah Dionne attend the Millennium Challenge Cooperation (MCC) Signing Ceremony at the U.S. Department of State in Washington, D.C. on December 10, 2018
U.S. Secretary of State Michael R. Pompeo and Senegalese Prime Minister Mahammed Boun Abdallah Dionne attend the Millennium Challenge Cooperation (MCC) Signing Ceremony at the U.S. Department of State in Washington, D.C. on December 10, 2018

U.S. and Senegal Sign Millennium Challenge Corporation Power Compact

On December 10, Secretary of State Michael R. Pompeo welcomed Senegalese Prime Minister Mahammed Boun Abdallah Dionne to the State Department for the signing of a Millennium Challenge Corporation (MCC) compact.

During the signing event, MCC Chief Operating Officer and Head of Agency Jonathan Nash said “The MCC compact is designed to catalyze private sector investment, spur economic growth and reduce poverty by improving Senegal’s power sector, reducing costs and expanding access to electricity.”

MCC and the Government of Senegal developed the compact to strengthen the power sector and meet the growing demand for reliable electricity in one of Africa’s fastest growing economies, and an important strategic partner of the U.S. in West Africa. The compact is designed to increase reliability and access to electricity, support economic growth and reduce poverty.

MCC COO and Head of Agency Jonathan Nash and Senegalese Minister of Economy, Finance and Planning Amadou Ba shake hands during the ceremony to mark the signing of the MCC Senegal Power Compact at the State Department.

MCC COO and Head of Agency Jonathan Nash and Senegalese Minister of Economy, Finance and Planning Amadou Ba shake hands during the ceremony to mark the signing of the MCC Senegal Power Compact at the State Department.

Secretary Pompeo underscored, "The United States is committed to spurring economic growth in Africa through partnerships, such as this one. Senegal’s hard work in meeting MCC strict eligibility criteria is paying off in the form of a rare second MCC compact. American partnerships – seen through assistance projects like this one – are an essential part of our diplomacy."

The Senegal Power Compact is expected to benefit over 12 million people and consists of three projects:

The Modernizing and Strengthening of Senelec Transmission Network Project aims to strengthen and increase the reliability of Senegal’s high-voltage transmission network in and around Dakar, the country’s capital, and improve service delivery throughout the country. The compact supports the utility, Senelec, in reducing high production costs, facilitating private sector investment in generation, and increasing the reliability of electricity for consumers.

The Increasing Access to Electricity in Rural and Peri-Urban Areas Project seeks to extend and reinforce the electrical grid in selected rural and peri-urban areas in Senegal’s south and center regions, which have high economic potential but low connection rates. The project will also help residents and business connect to the grid and access electrical equipment.

The Power Sector Enabling Environment and Capacity Development Project will work to strengthen laws, policies and regulations governing the power sector as well as the institutions responsible for implementing them to support long-term economic progress.

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