House Ratifies US$102M Loan Agreements

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The House of Representatives has unanimously ratified four financing and loan agreements aimed at potentially yielding social benefits and improving the nation’s economy.

On Thursday, June 30, during the 41st Day Sitting, the House passed the ‘Financing and Loan Agreements’ totaling US$102,600,000 (One hundred two million and six hundred thousand US dollars).

The House ratified the financial agreement between the government and the International Development Association (IDA) in the amount of seven million, two hundred thousand Special Drawing Rights (SDR), which is equivalent to US$10 million.

According to the agreement’s allocation, the Liberia Agency for Community Empowerment (LACE) will receive US$5 million; the Ministry of Youth and Sports will get US$1.2 million; and the Ministry of Gender, Children and Social Protection will benefit from US$1 million. It is not known what

will become of the remaining US$2.8 million, as it was not allocated.

The purpose of the loan is to improve access to income generation opportunities for targeted youths and for strengthening the government’s capacity to implement its cash transfer program. The term of the loan is 37 years, including a six-year grace period.

The second financial agreement, also between the two institutions, is forty-two million seven hundred thousand Special Drawing Rights (SDR 42,700,000) which is equivalent to US$60 million. It would be paid in 38 years, with a six-year grace period.

This loan is to implement the Liberia Accelerated Electricity Expansion Project (LAEEP), mainly to increase access to electricity services for household consumers and large institutional customers in greater Monrovia and the electrification of the Monrovia-Bomi-Grand Cape Mount corridor.

The third financing agreement, between the government and the OPEC Fund for International Development Planning (OPEC FUND/IDP), is US$20 million. It is intended to partially finance the upgrade of the Gbarnga-Salayea road.

The term of the loan is 20 years, including a five year grace period.

The fourth loan agreement is in the tune of US$12.6 million. It was signed between the government and the Arab Bank for Economic Development in Africa (BADEA). The loan is to complete the rehabilitation of the Gbarnga-Salayea road.

According to the Lofa County District # 5 Representative, Moses Kollie, who is also the Chairman of the Joint Committee, all the loan agreements were checked, and are consistent with the country’s loan strategy.

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