Liberia: House Reviews US$40.5M Modern Mill Deal
Capitol Building
Amongst other things under the Agreement, the investor shall engage in the processing of wheat into finished flour and value addition activities; the Investor is expected to hire at least 150 Liberians in skilled and unskilled positions during the first five (5) years.
The House of Representatives is reviewing a ratification of an Investment incentive Agreement (special tax free incentives) between the Republic of Liberia and Modern Mills Liberia, Incorporated.
In a letter, from President George Weah, submitted to Speaker Bhofal Chambers, which was read on August 17, — during the 2nd Day Sitting of the Special Session of the House, Weah said the agreement is for the development, construction, establishment, and operation of a flour mill with a capacity of 150 tons per day in Liberia, especially Montserrado County.
The Agreement is worth US$40. 5 million and has a term of fifteen (15) years as of its effective date. The President noted that Modern Mills Liberia is a corporation duly organized and existing under the laws of Liberia.
Amongst other things under the Agreement, the investor shall engage in the processing of wheat into finished flour and value addition activities; the Investor is expected to hire at least 150 Liberians in skilled and unskilled positions during the first five (5) years. and shall provide on-the-job training and vocational training to enhance the competence of those hired. The investor shall also provide an annual company-administered grant of US$5,000 for scholarships to Liberian students residing within the Project affected communities.
Accordingly, the scholarships will be for high school graduates and university students to study in Liberia.
The Liberian leader noted that the project will bring key benefits such as value addition and job creation, thereby contributing to the Country's economic recovery program. Following a motion from Bong County #2 Representative, James M. Kolleh, the communication was forwarded to the Committees on Investment, Judiciary, Commerce and Ways, Means, and Finance.
House To Scrutinize Two loan Agreements
Meanwhile, on Tuesday, the President previously submitted two loan agreements to the House of Representatives for ratification.
The two instruments are: the “Loan Agreement between Republic of Liberia and African Development Fund, Mano River Union Road Development and Transport Facilitation Programme - Phase 2”; and the “Loan Agreement amongst Republic of Liberia and African Development Bank and African Development Fund (as Administrators of the Transition Support Facility) Mano River Union Road Development and Transport Facilitation Programme - Phase 3”.
According to the President, these Agreements were signed between and amongst the Parties on April 14, 2022, for the same Project, with the objective to strengthen the sub regional integration and trade in Guinea, Liberia, and Sierra Leone.
The four main components of the project are: (1) Upgrading Climate Resilience Road and Bridge and New Road Studies; (2) Integrated Support; (3) Transport and Trade Facilitation and (4) Programme Management.
He noted specifically that this Project will support the Government of Liberia by benefitting road users, transporters, farmers, population of the project area, and especially disadvantaged groups such as women and children, who constitute the majority.
The total amount of the two Ioan agreements is the equivalent of UA 31.2 million or US$ 43.7 million. This total comprises UA 22.44 million or US$ 31.4 million Agreement 1; and UA 8.76 million or US$12.3 million - Agreement 2.
The Liberian Chief Executive craved the indulgence of the Legislature to ratify the Agreements to enhance road connectivity in Liberia.
Following the reading of the President's communication, a motion was proffered by Maryland County Representative, P. Mike Jury forwarding the instruments to the Committees on Ways, Means, Finance and Development planning, Public Works, Transport and Judiciary to report in one week .
House Agrees to President Weah's Recall for 30 Days
Further, the House of Representatives has agreed to the recall of President George M. Weah to discuss and act upon matters of national concern, of which the President described as “time-bound critical national issues.”
During session on Tuesday, the 1st Day Sitting of the Special session of the 5th Session, the House of Representatives voted to reconvene into a Special Session for 30 days, from Monday, August 15 to Tuesday, September 13, 2022.
The motion was proffered by Nimba County District #9, Johnson Gwaikolo.