Senate to Ratify US$12M Loan Agreement

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In an apparent move to meet with the deadline for her promised return of electricity to Liberia by December, 2015, President Ellen Johnson-Sirleaf has sent to the Liberian Senate for ratification a loan agreement in the tone of US$12 million.

According to President Sirleaf’s communication to the Senate plenary dated March 26, 2014, the loan agreement which was signed between Liberia and the Arab Bank for Economic Development in Africa is to help finance the Liberia Electricity Corporation (LEC) Bushrod Island Power Generation Plant.

“The agreement, which was signed on November 18, 2013, has the total value of US$12 million and is for the sole purpose of financing the Bushrod power generation special project. The project aims to help reduce the power deficit in the country, and to ensure regular supply of power to residential, commercial and industrial area, and other places like health centers, government centers and schools in Monrovia and nearby towns. This in turn is intended to improve the social development of the country, reduce poverty and create jobs…”

President Sirleaf  further said in her communication that most  specifically, the project will consist of several components, such as  civil works on the foundation for the diesel unit, transformer and fuel tankers, electrical mechanical equipment, spare parts and maintenance tools,  and provision for operators training on plant operation and maintenance, supply of computers and vehicles, among others.

“In view therefore, and in furtherance of the government’s response to power need of our citizenry and by extension the economy that I ask for the ratification of this loan agreement…”

It may be recalled that early this year, the Senate ratified similar loan agreement in the tone of US$14 million between the government of Liberia and the Kuwaiti Bank. That loan is expected to be used for the rehabilitation of the port of Greenville, Sinoe County.

The President’s communication, which is the first to be received by the Senators following their three-week Easter break and Ebola sensitization retreat, was voted upon and sent to the Senate Committees on Ways, Means & Finance, Lands, Mines & Energy, Judiciary and Foreign Affairs.

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