The Plenary of the House of Representatives has mandated the Committees on Ways, Means, Finance and Development Planning, Foreign Affairs and Judiciary to review a US$20 million Loan Agreement signed between Liberia and the Saudi Fund for Development (SFD).
The committees are expected to advise the House’s plenary in two weeks, whether or not the Loan Agreement should be ratified.
The committees were set-up owing to a communication from President Ellen Johnson Sirleaf requesting the House to ratify the Loan Agreement.
The purpose of the loan is to generate finance for the rehabilitation of the Gbarnga-Salayea Road Project. This loan is critical and aims to develop an existing gravel road of approximately 81km in length, with a width of 7.5m, connecting Bong and Lofa counties, as well as improving accessibility and reducing traveling costs for residents of the affected counties and those commuting in and through the counties.
The Government of Liberia will pay interest at the rate of one percent per annum on the principle amount of the loan withdrawn and outstanding. Interest and other charges shall be paid semi-annually, the letter said.
The term of the loan is thirty years, including a ten-year grace period. Government will repay the principal amount of the loan in accordance with Amortization Schedule set forth in Schedule #3 of the agreement.
The President added: “Hon. Speaker, this agreement is in support of the government’s overall development agenda, and I trust that the Legislature will ratify it.”