Liberia-Economy-Agreement

Liberia, AfDB sign $32m loan agreement

APA-Monrovia (Liberia)

Liberia and the African Development Bank (AfDB) have signed a US$ 32.64 million loan and grant agreements for the Renewable Energy for Electrification in Liberia (EEEL) project and support to investment promotion agencies in transitional countries.

According to the Country Manager of AfDB Dr. Orison M. Amu, the loan and grant agreements for the two projects are aimed at attaining the objective of the Government of Liberia’s Pro-Poor Agenda for Prosperity and Development(PAPD).

Dr. Amu made the statement Wednesday at the signing ceremony for the agreement held at the Ministry of Finance and Development Planning in Monrovia.

He noted that the Renewable Energy for the Electrification in Liberia and support to investment promotion agencies in transitional countries were both formerly financed by AfDB and the Scaling-Up Renewable Energy Program of the Strategic Climate Fund, but the latter is financed entirely by the Transitional Support Facility of the Bank.

He stated that the project is intended to increase access to reliable electricity and to foster the use of renewable energy sources, improve annual electricity generation, contribute to the reduction of electricity generation cost, increase hydro-power generation, reduce fossil energy consumption and create jobs.

“This will be achieved by developing the Gbedin Hydro power falls with a total capacity of 9.34MW, constructing an 8km and 33kv evacuation line, improving access to electricity to 7,000 new households, building the capacity of the Rural and Renewable Energy Agency (RREA) and creating 52 permanent jobs and over 1,000 jobs during the construction phase,” Dr Amu added.

He indicated that as a response to a request from the Liberian Government, the bank on an exceptional basis will be financing from its resources, the Environmental and Social Management Plan (ESMP), the Resettlement Action Plan (RAP), the Livelihood Restoration Program and Gender Action Plan (GAP).

He indicated that the entire project is planned to be completed by 2024, noting that with this signing the energy sector will now account for 26 percent of the AfDB’s total commitment of US$413 million in Liberia.

Dr. Amu stressed that the bank's effort in supporting the Government of Liberia to achieve its ambitions in increasing power generation and energy access remains critical in achieving the development objectives of the PAPD.

The AfDB Country Manager at the same time said the grant to support investment promotion agencies in Liberia, Sierra Leone, and the Gambia is about US$ 1 million allocated for the implementation of the project
.

Dr. Amu maintained that the project will strengthen the institutional and human capacity of each investment promotion agency such as the National Investment Commission of Liberia to identify and access the most promising investment opportunities and provide tailored facilitation and investor services to attract increased levels of investment to the country.

“This will be achieved over a period of three years by reaching out to all stakeholders engaged in supporting foreign direct investment in the country, including development partners, philanthropic organizations and embassies as well as engaging civil society,” he pointed out.

TSS/abj/APA

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