The Management of the Liberia Electricity Corporation (LEC) says it needs approximately US$7 million to enable it purchase heavy fuel oil for the supply of electricity across the country.
LEC Deputy Chief Executive Director for Planning Joseph T. Mayah said fuel delivery to various plants for power supply is a major challenge faced by the entity.
Mr. Mayah said presently the LEC does not have such money to ensure the purchase of the fuel oil, and appealed to government to assist.
Mayah made the disclosure recently in Monrovia when President Ellen Johnson-Sirleaf inspected works on three power supply projects ongoing at the LEC Central Office on Bushrod Island.
They include project for the design, supply and installation of 10 MW duel fuel LFO. HFO Fired Thermal Generation plant, project for the rehabilitation of Monrovia power system and the government of Liberia 18 MW power plant project.
Funded by the governments of Japan, Liberia and the Word Bank, these plants would serve as backup for the Mount Coffee Power Plant which will be completed in 2015.
Mr. Mayah told President Sirleaf that the LEC as a public corporation, is capable of making arrangement for the purchase of fuel but wants some guarantee from government as was done prior to the war.
"Madam President, the LEC as we stand today does not have the resources to buy a 1st quarter fuel that cost US$7 million; we will need the assistance of government; we can make these arrangements as public corporation but we need some guarantees as was done before the war," Mayah told the Liberian leader.
In response, President Sirleaf told the LEC Management to act as a corporation by showing a business plan that indicates how much will be generated and how much will that business cost.
President Sirleaf said when the business plan is developed and government realized that the profit generated cannot meet the demand for fuel; there will be assistance from government.
"If we find out that as you growing and expanding, you cannot generate enough revenue to cover your cost then the government comes in with the subsidy, but we know exactly what that subsidy is. What we don't want is for public corporation to start crying saying we need US$7 million, we need US$5 million... NO.., give us your business plan for the next three years," the President noted.