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Writer's pictureChris Wizo

US Provides $412 Million in Financing for Power Generation Project in Sierra Leone


Claim: US Shames Development Pessimists With $412 Million MCC Grants for Bio’s Government


Verdict: MISLEADING


Context: While the US government has allocated $412 million to support Sierra Leone's power generation project, it is misleading to state that it is through the Millennium Challenge Corporation (MCC). Instead, the funds come from the US International Development Finance Corporation (DFC), which partners with the private sector to finance public projects. The DFC's involvement aims to address rolling blackouts and expand Sierra Leone's power system using renewable energy solutions.


Evidence: A correspondence from the Board of Directors of DFC dated 16th April 2024 and signed by Acting Corporate Secretary Sarah Fandell has approved a loan of up to $292 million for the Western Area Power Generation Project in Freetown. This financing will aid in developing and upgrading the power plant's infrastructure to ensure reliable access to electricity 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).


Conclusion: The claim that the $412 million allocated to Sierra Leone is MCC grant money is misleading.


The funding comes from the US International Development Finance Corporation, not the MCC and is intended to support a power generation project in Sierra Leone, aiming to enhance access to reliable electricity.

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