President Ellen Johnson Sirleaf has submitted a US$29.3 million loan agreement to the Liberian Legislature for possible enactment into law.
The President’s loan communication dated April 5, was read in the chambers of the Senate on Thursday, 4May at the Capitol Building in Monrovia, disclosing that the agreement is between Government of Liberia through the Ministry of Finance and Development Planning and the African Development Fund.
The communication says if ratified by members of the Liberian Legislature, the loan is to generate financing for the Liberia Energy Efficiency and Access Project or LEFAP.
“This project is an integral component of the larger multi-donor program, which aims to improve access to electricity in Liberia. This project involves the construction of 46.1 kilometers of transmission lines and 280 kilometers of distribution lines from Paynesville to Roberts International Airport, and from Pleebo, Maryland County to Fish town, River-gee County. The program aims to improve access to electricity in Liberia,” the president’s letter reads.
According to the document, total worth of the loan agreement includes; African Development Bank US$13.35 million; Nigeria Trust Fund US$10.0 million, and Transition Support Facility US$600,000, respectively.
President Johnson Sirleaf notes that in line with Section 3.05 of the agreement, the Government of Liberia shall repay the principal of the loan over a period of 30 years, after a 10- year grace period, commencing from the date of the agreement, at the rate of two percent of the principal per annum from the 11th to the 20 year inclusive and at the rate of four percent of principal per annum thereafter.
Meanwhile, the communication has been sent to the Senate Committee on Ways, Means, Planning and Development, Judiciary and Public Utilities to report to plenary within two weeks.
By Bridgett Milton -Editing by Jonathan Browne