Senate to Ratify 2 Loan Agreements for US$80m

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President Ellen Johnson Sirleaf yesterday submitted for ratification two loan agreements totaling US$80 million.

The first agreement is between the Government of Liberia and the OPEC Fund for International Development (OFID) which was submitted by the Ministry of Finance and Development Planning in the amount of US$20 million. It is intended to partially finance the upgrading of the Gbarnga- Salayea road.

The government will pay interest at the rate of one percent per annum on the principal withdrawn and outstanding, and a service charge at the rate of one percent on the principal loan withdrawn and outstanding.

According to the agreement, interest and service charges shall be paid semi-annually on March 15 and September 15 each year into OFID Account.

The term of the loan is 20 years, including a five-year grace period, while repayment of the principal amount shall be effected in 30 semi-annual installments on the dates specified in schedule 3 of the agreement.

The other agreement for ratification between Liberia and the International Development Association is in the amount of SDR42,700,000 (Special Drawing Rights) which is equivalent to US$60 million. The loan is to be used as additional financing for the implementation of the Liberia Accelerated Electricity Expansion Project which will increase access to electricity and strengthen the institutional capacity in the electricity sector.

The term of the agreement is 38 years, including a six year grace period.

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