The Government of the United States, through the Millennium Challenge Corporation (MCC), is developing a compact with the Government of Benin (GOB) to develop clean energy for the West African country’s electrical power sector.
According to the MCC, only one-third of Benin’s population of 10 million has access to electrical power, with extraordinary geographical disparities. Over half of urban residents have access to electricity, while only 4.5% of rural inhabitants do. Electricity consumption in Benin is below average for Africa’s low-income countries at 110 kWh/capita per year, equivalent to only 0.01% of the average for middle-income economies.
In addition to limited access, there are delays in connecting new customers and the front-end connection costs are high relative to average annual income. Benin’s electrical power network is characterized by high technical and commercial losses in the distribution network, totaling 22%, extensive outages in distribution (planned outages, rationing, and unscheduled cuts), and poor quality service.
To design the compact, MCC and its partner GOB agency, the Unité de Coordination de la Formulation du 2eme Programme et Suivi des Reformes de MCA-Benin (UCF), invite interested companies and organizations from around the world to submit information regarding potential projects that would expand access to renewable off-grid electrical power in Benin.
MCC and UCF will use the information to determine whether to design a matching grant facility to provide matching funding to a project sponsor toward the overall cost of a clean energy project in Benin. Final project selection decisions would be determined at a later date through a separate competitive grant application process to be launched following the signing of a proposed MCC compact with Benin. Signing of the compact is subject to successful negotiations by the GOB and MCC and to approval by MCC’s Board of Directors.
Learn more at the MCC Request for Information page.
Millennium Challenge Corporation (MCC)
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