Liberia Govt, AfDB sign $203m power loan deal

Power Transmission27 November 2013, Monrovia – The Government of Liberia and the African Development Bank (AfDB) have signed a loan agreementfor the CLSG project, which seeks to electrify 28 localities in Liberia through the construction of four sub-power stations along the first corridors of our growth triangle, the Nimba, Bassa to Montserrado route.

The CLSG project already ratified by the National Legislature is expected to commence next year is part of the wider West Africa Power Pool project, seeks to connect the national grids of the four countries Cote D’Ivoire, Liberia, Sierra Leone and Guinea through the construction of a 1,357-km-long double circuit high voltage (225 kV) line, costing US $ 203 million for the Liberia component.

Speaking at the signing ceremony held at the Ministry of Finance Tuesday, Finance Minister Amara Konneh disclosed that the construction of this line is part of the backbone of the Mano River Union countries and the priority projects of the West African Power Pool (WAPP) Master Plan.

Minister Konneh furthered disclosed that the project will help establish a dynamic electric power market in the West African sub-region and secure power supply for participating countries which have a comparative advantage in importing power rather than producing it at high costs using their national systems. He noted that Government poised to generate 10 MW from the cross border project supported by the EC and 20 MW from the CSLG interconnection rural electrification project.

The Treasure Chief said rural electrification is expected to cost US$35m, with US$32.5M in ADF Loan at 75% rate of interest over a 40 year maturity and 10 year grace period. The project will be implemented by the Liberia Electricity Corporation under the supervision of the Ministry of Lands, Mines and Energy.

For her part, the Country Representative, Dr. Margaret Kilo said the project was approved by the board of the African Development Bank on November 6th, covering all four Mano River Union countries.

The total project amount is UA 331.51 million (approximately US$510 million) with UA 128.15 million (approximately US$197 million) financed by the African Development Bank. Liberia’s allocation from the ADB is UA26.06 million (approximately US$40 million.) She further said the project will help increase the energy access rate from 2% in 2012 to 6% in 2016.

The African Development Bank representative at the same time disclosed that the project together with the Fish Town – Harper Road paving, forms a critical component of the African Development Bank’s Mano river Union initiative, which focuses on investments in regional infrastructure, particularly roads and energy.

She reaffirmed the Bank’s commitment to support the government of Liberia ambitious objectives in its efforts to rapidly expand electricity and increase access for the citizens.

– The New Dawn

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