Members of the House of Representatives at their Tuesday’s (August 8th ) sitting concurred with the Liberian Senate on the ratification of a US$59.1 million loan agreement between the Government of Liberia and the East International Construction company here.
The lower House voted overwhelmingly in concurrence the Senate on the passage of the agreement. The senate’s ratification of the agreement was recently was greeted with public outcry, with Civil Society Organizations and activists describing it as bad law intended to unnecessarily obligate the next government to huge debt.
Plenary’s decision followed report from the House’s committee on Ways, Means and Finance headed by Bong County Representative Prince Moye after thorough scrutiny of the pre-financing agreement.
A motion filed by Montserrado County Representative Julius Berrian and unanimously endorsed by plenary states: “I move if I can be seconded that this report (pre-financing Agreement) be received and fully endorsed in its entirety.”
The agreement is intended for the pavement of 24.5km of existing secondary roads from Klay to DC Clarke in Bomi County, and 51km of selected neighborhood/community roads in Monrovia and its environs.
Under the agreement, East International Group Incorporated, which won the National Competitive Bid, agreed to procure on behalf of the Liberian government “for the purpose of implementing the project, an external loan in an amount not to (exceed) US$59,567,019.09 on the terms and conditions set forth or referred to in the agreement.”
The document says that repayment of the financing amount disbursed in the amount of US$19,905,537.39 for the 24.5km Klay-to-DC Clarke road pavement shall begin and be paid in seven equal amounts, over a period of seven calendar years, which shall begin within twelve calendar months of the first disbursement of the financing, based upon the project landmark disbursements received by the contractors.”
The repayment conditions apply for the financing disbursement of US$39,661,473.51 for the pavement of 51km of selected neighborhood/community roads in Monrovia and its environs.
By E. J. Nathaniel Daygbor-Editing by Jonathan Browne