President Ellen Johnson Sirleaf has submitted to the Legislature for ratification a US$20 million loan agreement between the Government of Liberia and OPEC Fund for International Development (OFID).
The term of the loan is 20 years repayment with a grace period of five years.
The agreement, according to the Liberian leader, which was created by the Ministry of Finance and Development Planning, is to generate partial financing for the upgrading of the Gbarnga-Salayea road.
In a communication addressed to Senate Pro-Tempore, Armah Jallah, on Thursday, President Sirleaf noted that when ratified, the loan will contribute to the economic and social development of Liberia.
President Sirleaf disclosed that the Government of Liberia shall pay interest at a rate of one percent per annum on the principal, and a service charge at the rate of one percent on the principal amount of the loan withdrawn and outstanding.
She noted that interest and service charges on the loan shall be paid semi-annually on March and September 15 each year into OFID account.
President Sirleaf urged the Senate to ratify the agreement as it seeks to further develop, expand and integrate Liberia's roads network, thereby reducing travel time and costs and improving the lives of the people of Liberia.
Meanwhile, the Liberian Senate has forwarded the loan agreement to its relevant committees with a mandate to make report in two weeks.