President Ellen Johnson Sirleaf has submitted to the House of Representatives for ratification a loan agreement signed between the Liberian Government and the Arab Bank for Economic Development in Africa to the tone of US$12 million.
According to a letter addressed to House Speaker J. Alex Tyler – dated June 23, 2016, the purpose of the loan is to generate financing for the rehabilitation of the Gbarnga-Salayea road. The President said the loan would supplement the amounts being requested from other financing institutions to develop and pave the existing gravel road of around 81 kilo meters that connects Bong and Lofa Counties, as well as improve accessibility and reduce travel costs for residents of those affected counties.
The Liberian Chief Executive added that the Liberian Government shall pay interest at the rate of one per cent per annum on the principal amount of the loan withdrawn and outstanding. “Interests and other eventual charges shall be paid semiannually. The dates of payments will be fixed on the basis of the first day of the month following the first withdrawal from the loan account,” the communication said.
“Mr. Speaker, in view of the need to develop, expand and integrate Liberia’s road network thereby reducing travel time and cost and ultimately improve the standard of living of the inhabitants of Bong and Lofa Counties, I ask your ratification of this instrument,” President Johnson Sirleaf concluded in her communication.
Meanwhile, the Plenary of the House of Representatives has forwarded the communication to the Ways, Means and Finance committee to report back to Plenary within one week time.
By E. J. Nathaniel Daygbor