House Ratifies US$20M Loan for Gbarnga-Salayea Road

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Partial view of lawmakers approving a loan agreement for the reconstruction of the highway between Gbarnga and Salayea.

Members of the House of Representatives have ratified the Loan Agreement signed between the Saudi Fund for Development (SFD) and the Republic of Liberia for the construction of the Gbarnga (Bong County) – Salayea (Lofa County) road.
The loan is seventy-five million (75,000,000) Saudi Riyals, which is equivalent to US$20 million.

The Lawmakers approved the financial deal yesterday according to a report from the Joint Committee of Ways, Means, Finance and Development Planning, Foreign Affairs and Judiciary.

The project, upon its completion, will provide expanded road connectivity to rural parts of the country and will boost Liberia’s development agenda by stimulating economic activities through easy access of goods and services. It will also facilitate the free movement of people across the country.

The Liberian government has agreed to secure a loan of US$12 million from the Arab Bank for Development in Africa (BADEA), and has already received US$15.5 million from the Kuwait Fund for Arab Economic Development; US$20m from the OPEC Fund and US$15 million from the Abu Dhabi Fund, according to the report from the joint Committee.

In a letter requesting the House to ratify the Loan Agreement, President Ellen Johnson Sirleaf said the loan is critical and aims to develop an existing gravel/length road of approximately 81km length with a width of 7.5 million that connects Bong and Lofa counties, as well as improve accessibility and reduce travel costs for residents of the affected counties.

The Government of Liberia shall pay interest at the rate of one percent (1%) per annum on the principle amount of the loan withdrawn and outstanding. Interest and other charges shall be paid semi-annually, according to the Agreement.

The term of the loan is 30 years, including a 10-year grace period. The government will repay the principal amount of the loan in accordance with Amortization Schedule set forth in Schedule No.3 to the Agreement.

The Agreement is in support of the government’s overall development agenda, the President said.

3 COMMENTS

  1. Broke; Liberia continues to take on more and ever more loans. These (LOANS) are MORTGAGES for future generations. Liberia shall for ever be at “THE MERCY” of other Nations. Be Ware! Every LOAN comes with some strings attached. “If this, then that…”

  2. It would’ve been funny were such scenes just mere acting in a movie.

    EJS, according to available “spreadsheets”, paid almost $US 300M to so – called lobbyists and PR firms (KBL et al) in the US from 2006 to 2013. Yet the House is approving a loan in 2017 of US 20M to grow the national debt. First, why haven’t there been an attempt to countercheck that expenditure by a body entrusted with overseeing the nation’s purse strings? Second, what is the House waiting for to disabuse itself of the notion that the G8 debt forgiveness was an outcome of her influence?

    For heaven’s sake, that program started long before the 2005 elections which brought her to power. And multiplying the national debt at this eleventh hour will only hamstrung the next political leadership in future efforts to implement reconciliatory – orientated decentralization processes, and other related development projects. After all, leaving debts behind for road projects that should have begun in 2007 won’t be considered part of any legacy.

    More so, after billions of US dollars from resources, revenues, grants, and aids have disappeared over the years via graft and waste. Not to mention that it is unhelpful to believe that without her presence Liberia won’t get loans earmarked for “sustainable projects”. Simply put, by piling up debts the next administration will also be unable to address poverty – reduction opportunities (education, social services, etc.). The upshot: no end to political discontent, and the hovering risk of chaos.

  3. THANKS MADAM E.S.J HOPE THIS WORK NOW AND IF IT DO WORK AND FNISH ON TIME WE CAN SET UP OR BUILD AN HIGH WAY TOW BOOTHS AND SHOULD BE ENFORCE TO THE LETTER.

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