Burkina Faso Compact II

MCC’s $450 million compact agreement with the Government of Burkina Faso aims to address the country’s main binding constraint to economic growth: access to affordable and reliable electricity.

Burkina Faso faces significant development challenges, and 43.7 percent of its population is considered poor. However, Burkina Faso also has one of Africa’s fastest growing economies, with a 2019 GDP growth rate of six percent.

The compact focuses on three projects: The Strengthening Electricity Sector Effectiveness Project; the Cost-Effective and Reliable Electricity Supply Project; and the Grid Development and Access Project.

Additionally, this compact will also support Burkina Faso’s increased participation in regional power markets and the development of a potential MCC regional investment. MCC has increased flexibility to promote regional collaboration, trade, and economic growth through concurrent compacts designed to promote regional integration.

 

Financials

Compact Budget

Milestones

  • Signed:
     August 13, 2020

Compact Projects

Cost-Effective and Reliable Electricity Supply Project

The Cost-Effective and Reliable Electricity Supply Project aims to increase the supply of energy and the reliability of the network, at a lower cost for the national public electricity supplier, through the production and storage of solar energy and increased imports. This project will boost energy supply infrastructure, by supporting new solar power projects, introducing battery storage, and making improvements to electricity dispatch centers.

Projected Long-Term Results

  • Estimated Beneficiaries 8,100,000

Grid Development and Access Project 

The Grid Development and Access Project aims to reduce outages and increase the availability and consumption of electricity for end users by (i) updating the transmission and distribution network, and (ii) increasing access and targeting productive use of electricity. This project is expected to result in extending the reach and capacity of the network and improving the access of customers covered, allowing the national utility to reduce losses and outages caused by system failures and lack of redundancy, as well as to increase coverage, access, and consumption of end users.

Projected Long-Term Results

  • Estimated Beneficiaries 4,300,000

The Strengthening Electricity Sector Effectiveness Project

The objective of the Strengthening Electricity Sector Effectiveness Project is to improve and strengthen the legal, regulatory, and institutional framework of the electricity sector by investing in priority reforms and capacity-building for key actors, including the national utility, regulator, and Ministry of Energy.

This project is expected to result in improvements in the quality and supply of electricity, which will translate into improved operational efficiency, cost reduction, improved service, and increased investment by the private sector.

Projected Long-Term Results

  • Estimated Beneficiaries 8,100,000

As of August 13, 2020