[bsa_pro_ad_space id=1]

FinanceGeneralLiberia news

House reviews loan agreement 

By Bridgett Milton

The House of Representatives has mandated its Ways, Means, Finance and Development Planning committee to review several financing and loan agreements submitted by President George Manneh Weah.

According to President Weah’s communication sent to plenary Tuesday, 7 March 2023, the Financing Agreement (Additional Financing for the Recovery of Economic Activity for Liberian Informal Sector Employment Project) is between the Republic of Liberia and International Development Association (IDA).

He said the financing agreement was signed on 26 January 2023, with the objective to increase access to income earning opportunities for the vulnerable in the informal sector.

Related Articles

Other objectives of the agreement are to expand income to livelihood support to poor and food insecure household and improve efficiency in managing social protection programs in the recipient territory.

“The agreement is for additional financing to the Recovery of Economic Activity for Liberian Informal Sector Employment Project, in which the Association agrees to extend to the Republic of Liberia a credit, deemed as Concessional Financing in the amount of Twenty Million dollars ($20,000,000),” said President Weah.

The Principal Payment Dates are February 15 and August 15 in each year beginning February 15, 2033, to and including August 15, 2072, at 1.25 percent.

Mr. Weah said the second Financing Agreement (Additional Financing for the Rural Economic Transformation Project) is between the Republic of Liberia and International Development Association.

[bsa_pro_ad_space id=1]

He said the instrument was signed on 26 January 2023, with the objective to assist in improving productivity and market access for smallholder farmers and agri-enterprises for selected value chains in Project participating counties. 

The Agreement is for additional financing to the Rural Economic Transformation Project in which the Association agrees to extend to Liberia a credit, deemed as concessional financing amounts to Thirty Million dollars ($ 30,000,000).

The Principal Payment Dates are February 15 and August 15 in each year beginning February 15, 2033, to and including August 15, 2072, at 1.25%.

The third Financing Agreement (Regional Emergency Solar Power Intervention Project) is between Republic of Liberia and International Development Association.

President Weah said the agreement signed on 31 January 2023 aims to rapidly increase grid-connected renewable energy capacity and strengthen regional integration in participating countries. 

In Liberia, the project will provide support to the construction of a 20MWp solar PV power plant and associated works, (including construction of transmission lines for connection to the grid at Mount Coffee Island.

 It will also provide support to the expansion of the Mount Coffee Hydro Power Plant (MCHPP) by adding an additional capacity of 41 MW, including supply and installation of two turbines, each having a capacity of 20.5 MW. 

“Under the Agreement, the Association agrees to extend to Liberia a credit, which is deemed as concessional financing in the amount of Ninety-Six Million dollars ($ 96,000,000). The Principal Payment Dates are February 15 and August 15 in each year beginning February 15, 2033, to and including August 15, 2072, at 1.25%”, the President noted.

In a related development, President Weah submitted a loan agreement among the Republic of Liberia and African Development Bank and African Development Fund (as Administrators of the Transition Support Facility) (Emergency Food Production Program).

According to him, the loan agreement signed on 8 December 2022, will assist the government by contributing to increasing climate resilient food production, through direct smart subsidies (subsidies that create incentives for private sector investment in the input market without distorting the market) to vulnerable farmers.

He said under the agreement, the partners agreed to extend to Liberia a loan, in an amount not exceeding the equivalent of Two Million Two Hundred and Twenty Thousand Units of Account (UA 2,220,000). The Principal Payment Dates are January 15 and July 15 in each year.

Meanwhile, President Weah submitted an additional Financing loan agreement between the Republic of Liberia and African Development Fund (Additional Loan for the Special Agro Industrial Processing Zone Project. 

The instrument approved on 8 December 2022, between the Republic of Liberia and African Development Fund (“the Fund”) will provide additional financing to the Special Agro Industrial Processing Zone Project. 

Under the Agreement, the partners also agreed to extend to Liberia a loan in an amount not exceeding the equivalent of UA 2,170,000. 

The Payment dates are 15 February and 15 August of each year.

The objectives of the project are to create a better business environment for increased investment in the agro-industrial sector and to create opportunities for private sector investments at the industrial level and coordinate the integration of smallholder farms, and agro-processing industry into sustained agro-value chains.

It also intends to improve capacities and skills to benefit from new agribusiness employment and value chain opportunities.

The committee will report within a period of two weeks.

[bsa_pro_ad_space id=1] [bsa_pro_ad_space id=2] [bsa_pro_ad_space id=3] [bsa_pro_ad_space id=4] [bsa_pro_ad_space id=5] [bsa_pro_ad_space id=6]
Back to top button