Frequent power outages result in high economic and environmental costs in the form of lost production, equipment damage, produce deterioration, and the reliance on fossil fuels for backup generators, according to a joint analysis undertaken by the Government of The Gambia and MCC.
As a result, following the successful conclusion of discussions during the COP26 Climate Change Conference, the United States’ Millennium Challenge Corporation (MCC) and the Gambia’s government signed the $25 million Threshold Program on Wednesday, November 16, 2021.
The Gambia’s government will make a number of institutional and regulatory changes as part of the agreement to ensure the project’s success and long-term viability.
The Gambia’s aim to achieve universal energy access by 2025 will be aided by the grant program. Imports and renewable energy sources, particularly domestic solar generation, are being prioritized to help the government meet its Nationally Determined Contributions (NDCs) to reduce greenhouse gas emissions.
The initiative will assist essential policy and institutional reforms to help the sector become more effective, responsible, and transparent, as well as to improve sector operations.
The virtual ceremony was presided over by MCC Acting Chief Executive Officer Mahmoud Bah and The Gambia’s Minister of Finance and Economic Affairs Mambury Njie, who celebrated the positive impact this grant program will have on reducing poverty and promoting sustainable economic growth by constructing a climate-resilient electricity sector.
“An efficient energy sector in The Gambia means increased productivity such as safe vaccine storage, access to late night learning for young students, efficient manufacturing processes for goods and services – ultimately growing The Gambian economy. I am excited for what this grant means for the people of The Gambia and the long-term change it can bring to their everyday lives” Bah said.
MCC Resident Threshold Director in The Gambia, Matthew Langhenry, had the following to say about the historic agreement:
“The program also constitutes an affirmation of The Gambia’s commitment to good governance and equitable prosperity at a critical time in The Gambia and the broader region.”
By enhancing the national power utility’s administration and operational management, MCC’s cooperation with the Gambia’s government will lower the frequency and duration of outages.
The Millennium Challenge Corporation is a non-profit organization that works to alleviate worldwide poverty by promoting economic progress.
MCC was established in 2004 to provide time-limited funds and assistance to nations that meet stringent conditions for good governance, corruption fight, and democratic rights respect.
Source: MCC Press Release