Claim: Sierra Leone Secures $481 Million Energy Development Deal with the MCC
Verdict: FALSE
Context: The claim suggesting Sierra Leone secured a $481 million energy development deal with the MCC is False. Firstly, the actual allocated amount is $412 million, not $481 million. Secondly, the funding does not originate from the MCC but rather from the US International Development Finance Corporation (DFC), which collaborates with the private sector to finance public projects aimed at addressing energy challenges and promoting renewable solutions in Sierra Leone.
Evidence: A correspondence from the Board of Directors of the DFC, dated April 16, 2024, and signed by Acting Corporate Secretary Sarah Fandell, confirms the approval of a loan of up to $292 million for the Western Area Power Generation Project in Freetown. This financing aims to develop and upgrade infrastructure to ensure reliable electricity access across Sierra Leone. Additionally, the DFC will provide up to $120 million in political risk insurance to attract private investment. The financing package also includes a $40 million loan from the ECOWAS Bank for Investment and Development (EBID).
Moreover, a tweet from the US Embassy in Freetown (@USEmbFreetown) confirms that a Sierra Leonean delegation has negotiated the terms of the MCC compact in Washington DC. However, final approval depends on the report of the Electoral Review Committee and the implementation of resulting electoral reforms and accountability measures. Therefore, no money has been secured through the MCC at this point.
Conclusion: Contrary to the claim, Sierra Leone has not secured a $481 million energy development deal with the MCC. The actual allocated amount is $412 million, provided by the US International Development Finance Corporation.
Additionally, while negotiations for MCC compact terms have taken place, final approval hinges on electoral reforms, with no funds secured yet.
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