The United States of America, through the Millennium Challenge Corporation (MCC), and the Government of Benin signed a grant agreement on September 9, 2015 for the Millennium Challenge to help reduce poverty in the United States. Benin through strong and sustainable economic growth.The agreement is part of an aid program from the United States of America to which are eligible countries fulfilling certain criteria relating to economic freedom, investment in human capital and the governance.
The subsidy granted to Benin covers an amount of USD 375 000 000, to which is added a contribution of the Government of Benin in the amount of USD 28 000 000. In accordance with the principle of the agreement, the Government of Benin created the Millennium Challenge Account-Benin II (MCA-Benin II) to implement the program agreed between the two parties.
The ultimate goal of the program is to increase the productivity and output of enterprises, to generate more economic opportunities for households and to improve the capacity to provide public and social services by improving the quantity and quality of supply of electricity.
MCA's energy program for Benin includes four projects namely:
The key activities that will be carried out under the program are, for example, the construction of solar power plants, a dispatching center, mini-grids using renewable energies, the reinforcement of the distribution lines (Cotonou-Porto -Novo and regions), etc.
At the end of five years of implementation, Benin will increase its production capacity by 78 megawatts, corresponding to one third of current peak hour requirements, and will have efficient and reliable energy for strong economic growth.
