The Inquirer (Monrovia)
23 September 2008
Buchanan Renewables B.V. announced today that the Board of Directors of the Overseas Private Investment Corporation (OPIC) approved a loan of up to US$112,000,000 to Buchanan's subsidiary in Liberia, Buchanan Renewables (Monrovia) Power, Inc. for a 35-megawatt independent biomass power project that will provide electricity from renewable sources to Monrovia, Liberia and its surrounding area.
The approval of the loan by OPIC is a key towards enabling planned construction to begin by January 2009. It comes two months after an agreement was signed between Buchanan and the Liberian Ministry of Lands, Mines and Energy, which provided the basic terms for the concession agreement with the Government of Liberia and the power purchase agreement with the Liberian Electricity Corporation.
Buchanan plans to construct the 35-megawatt power generation near Kakata in Margibi County. The power plant will be fueled with woodchips from Liberian rubber trees that are beyond their useful life and must be removed to make way for new and productive rubber trees.
The electricity provided form renewable sources will be sold at a much lower price than current electricity, and will be transmitted to the Liberia Electricity Corporation's grid by the end of 2010.
Because the plant will be fueled by end-of-life rubber trees that Buchanan will be replacing on a two for one basis, the project has carbon neutral footprint.
In addition to over 650 Liberians currently employed by other subsidiary companies of Buchanan Renewables B.V., the power company will employ 100 Liberians when the plant is completed.
According to Stan Ridley, President of Buchanan's power company, "This project will generate thousands of additional associated jobs because of the economic activity resulting from the construction of plant, the rejuvenation of the rubber industry, and the availability of clean, reasonably priced, reliable electricity."
Jim Polan, OPIC Vice-President, stated that the approval by OPIC's Board "reflects the quality of this project and its potential contribution to the economic recovery of Liberia, a country that OPIC has identified as one of its highest priorities because of the great strides it has made to restoring democracy after a prolonged civil war."
OPIC is an independent entity of the U.S. Government that provides loans and insurance to the private sector in developing countries.
Buchanan Renewables (Monrovia) Power, Inc. is a Liberian corporation, wholly owned by Buchanan Renewables B.V. Buchanan Renewables B. V. is affiliated with a Foundation that is currently the largest private donor in Liberia.
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