President Ellen Johnson-Sirleaf is urging the Legislature to ratify the finance contract between the Government of Liberia and the European Investment Bank (EIB).
The contract which is in the amount of US$50 million is geared toward the rehabilitation of the Mount Coffee Hydro generation facility.
In a communication sent to the Senate, President Johnson-Sirleaf said the contract signed between the EIB and the Government of Liberia in Luxembourg on December 28, 2012, seeks loan of credit equivalent of 50 million Euros from the EIB owned resources.
According to President Johnson-Sirleaf, the loan is in accordance with a partnership agreement signed in Cotonou on June 23, 2000 between the European Community and its member states as well as the African Caribbean and Pacific States.
President Sirleaf explained that the loan will assist in financing the re-construction of 80 mega watt hydro power plant including two 66 kilo volts, 25 kilometers transmission lines from Mount Coffee to Monrovia and related 66 kilo volts sub-station to be implemented by the LEC.
She said the total cost of the project is 186,200,000 Euros and that the government which is the borrower will lent through a lending agreement with the LEC.
She indicated that the project will be financed jointly by the Government of Liberia, including grants from the Kingdom of Norway and Germany.
President Sirleaf noted that the loan will be payable within 20 years and its interest rate will be 1.43 percent which is a subsidiary rate.
Following the reading of the communication, it was suggested by Grand Gedeh County Senator Isaac Nyenabo that the document which seeks ratification on the finance contract be received and sent to the committee on Ways, Means and Finance for review in a week.