President Ellen Johnson-Sirleaf has submitted to the Senate for ratification a US$29.3 million loan agreement between the Government of Liberia and the African Development Fund.
The President’s letter, dated May 5, said the purpose of the loan is to generate financing for the Liberia Energy Efficiency and Access Project (LEEAP), “and is an integral component of the larger multi donor program which aims to improve access to electricity in Liberia.”
She disclosed that the project involves the construction of 46.1km of transmission lines and 280km of distribution lines from Paynesville to Roberts International Airport (RIA), and from Pleebo, Maryland County to Fishtown, River Gee County, with the Liberia Electricity Corporation (LEC) serving as the implementing agency of the project.
The total worth of the loan agreement, according President Sirleaf, comprises three components: the African Development Fund, US$13.35 million; Nigeria Trust Fund, US$10 million; and the Transition Support Facility, US$6 million.
According to the agreement, the government shall repay the principal of the loan over a period of thirty (30) years, after a ten (10) year grace period, commencing from the date of the agreement, “at the rate of two percent (2%) of the principal per annum from the 11th to the 20th year inclusive, and at the rate of four percent (4%) of the principal per annum thereafter.”
Accepted as a first reading before the plenary, the letter, which is sponsored in the Senate by Grand Cape Mount County Senator Edward Boakai Dagoseh, was unanimously voted upon and sent to the Committees on Foreign Affairs, Ways, Means & Finance; Judiciary; Lands, Mines, Energy, Environment and Natural Resources; and Public Corporations.