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    Home » LIBERIA: Liberia’s MCC Compact: Separating Fact from HPX’s Fiction
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    LIBERIA: Liberia’s MCC Compact: Separating Fact from HPX’s Fiction

    Chester SmithBy Chester SmithJanuary 20, 2025No Comments4 Mins Read
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    IPNEWS: —Liberia’s eligibility for a future Millennium Challenge Corporation (MCC) compact has been dragged into controversy, with High Power Exploration (HPX) pushing a misleading narrative that its proposed National Rail Authority (NRA) is key to securing US government support. However, this claim falls apart under scrutiny, revealing HPX’s attempt to use Liberia’s development ambitions as leverage for its private gains.

    What Really Determines MCC Eligibility

    The MCC compact is awarded to countries based on measurable performance in governance, economic freedom, and investments in people. The annual MCC scorecard evaluates criteria like control of corruption, government effectiveness, and investment in education and healthcare. Liberia’s successful completion of its first compact in 2021 demonstrated its commitment to these priorities.

    Future eligibility for MCC compacts depends on maintaining strong performance in these areas—not adopting specific infrastructure projects like HPX’s proposed NRA. MCC compacts are based on country-led proposals addressing critical development needs, not private-sector lobbying.

    HPX’s Agenda: A Self-Serving Narrative

    HPX’s claim that the NRA is critical for Liberia’s MCC eligibility is a smokescreen. The company is not advocating for Liberia’s broader development but for access to Liberia’s rail corridor to transport resources from its Guinean assets. This access would boost the value of its operations, which it reportedly plans to sell to a Chinese company.

    Ironically, HPX’s endgame undermines the US government’s broader goals of countering Chinese economic influence. By misrepresenting the NRA as a US-endorsed initiative, HPX seeks to pressure Liberian officials into prioritizing its interests over the nation’s.

    MCC Does Not Mandate the NRA

    The MCC’s framework emphasizes country ownership of development priorities, meaning Liberia—not foreign entities—determines which projects to pursue under a compact. The NRA has never been mentioned as a precondition for MCC funding. Liberia’s eligibility will hinge on its ability to strengthen governance, reduce poverty, and ensure economic stability.

    HPX’s narrative risks misleading policymakers into believing that rejecting the NRA could jeopardize US support. This is not only false but also a distraction from Liberia’s actual priorities.

    Liberia’s Real Path to MCC Success

    To secure future MCC funding, Liberia must focus on addressing the key indicators evaluated in the MCC scorecard. Priorities like combating corruption, improving fiscal responsibility, and investing in social infrastructure will determine eligibility—not the adoption of HPX’s NRA proposal.

    Moreover, Liberia’s partnership with ArcelorMittal (AML), a longstanding investor in the country, aligns more closely with these goals. AML’s investments in infrastructure, jobs, and government revenues are tangible contributions that strengthen Liberia’s standing in MCC evaluations. Advancing the third amendment to AML’s Mineral Development Agreement (MDA) offers far greater national benefits than catering to HPX’s Guinea-centric agenda.

    The Sovereignty Challenge

    HPX’s campaign to tie MCC eligibility to the NRA undermines Liberia’s sovereignty and decision-making. By promoting a false narrative, the company seeks to force Liberia into a policy direction that serves foreign interests over national priorities. This is a dangerous precedent that Liberia must reject.

    The US Embassy’s Role

    While junior staff at the US Embassy in Liberia have reportedly echoed HPX’s talking points, it is critical to clarify that the MCC operates independently, based on its scorecard and country-led proposals. The US government has not tied MCC funding to the NRA, and any suggestion otherwise is a misrepresentation of US policy.

    Rejecting HPX’s Falsehoods

    Liberia’s leaders must resist the pressure to adopt policies rooted in misinformation. The MCC compact process is transparent and objective, with no space for private entities like HPX to dictate its terms. By focusing on good governance and strategic investments, Liberia can secure future compacts without compromising its sovereignty.

    Conclusion

    HPX’s attempt to link the NRA to MCC eligibility is a blatant attempt to manipulate Liberia’s development agenda for its private gain. Liberia’s path to future MCC funding lies in maintaining strong governance, combating corruption, and prioritizing investments that serve its people—not in advancing the interests of a foreign company. The government must stand firm against such misleading narratives and focus on building a future grounded in transparency, accountability, and true national development

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