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Government of Liberia shall pay interest at the rate of one percent (1%) per annum on the principle amount of the loan withdrawn and outstanding.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.