The Government of Liberia, in partnership with the Millennium Challenge Corporation (MCC), has launched a Root Cause Analysis Workshop, marking a major step in the nation’s preparations for a potential Second MCC Compact aimed at transforming Liberia’s energy sector.
Delivering the opening remarks Thursday in Margibi County, Deputy Minister for Economic Management at the Ministry of Finance and Development Planning, Dehpue Zuo, on behalf of the Liberian government welcomed partners from Millennium Challenge Corporation and the U.S. Embassy near Monrovia, describing the workshop as “a distinct honor” and “a clear demonstration of leadership, partnership, and ownership of collaborative efforts by the governments of Liberia and the United States.”
Deputy Minister Zuo emphasized that Liberia’s qualification for Compact II comes at a pivotal moment for national development, particularly in strengthening the energy sector.
“Reliable, affordable, and sustainable electricity is a cornerstone of our national development agenda,” he stated. “It underpins economic growth, drives industrialization, supports job creation, and improves access to quality health care, education, and other essential services.”
He acknowledged, however, that persistent constraints in the power sector continue to slow progress, increase the cost of doing business, and limit opportunities for Liberians.
Describing the workshop as both timely and critical, Zuo urged participants to go beyond surface-level challenges. “We must look beyond the visible symptoms—high tariffs, low access rates, frequent outages, and heavy reliance on imported fuels—and identify the deeper, structural causes that lie beneath them,” he said. “Only by confronting these root causes can we design solutions that are realistic, sustainable, and aligned with Liberia’s long-term development priorities.”
He praised the MCC’s commitment to rigorous analysis, evidence-based decision-making, and country ownership, noting that the workshop’s findings will directly inform government policies, strategies, and future investments.
Highlighting the broad representation at the workshop, including ministries and agencies, the Liberia Electricity Corporation (LEC), regulators, private sector actors, development partners, and civil society, Deputy Minister Zuo called for candid and constructive dialogue.
He reaffirmed the government’s commitment to building a modern, efficient, and financially viable power sector.
MCC Senior Project Lead for Liberia, Carolyn Lesolchian, emphasized that the Root Cause Analysis is a foundational stage in designing a compact that delivers measurable and sustainable impact.
“This is when we dive deeply into the problems, not just jumping to solutions,” Lesolchian said. “We need to fully understand the real constraints to economic growth before designing projects that can truly transform Liberia.”
The MCC compact development process, which began this year, is expected to last for two years and includes constraints analysis, root cause analysis, project identification, feasibility studies, and the establishment of key policy reforms, known as “conditions precedent” that must be met before funding is disbursed.
When successfully concluded, a compact would provide significant grant funding to support targeted investments and policy reforms in the selected sector. In Liberia’s case, energy has emerged as the priority area.
Liberia’s engagement with the MCC builds on years of policy reform efforts aimed at strengthening governance, transparency, and economic management. The country’s progress in meeting MCC scorecard indicators has enabled it to advance to this stage of compact development.
