President Ellen Johnson has announced a 10% reduction in electricity tariff for customers connected to the Liberia Electricity Cooperation (LEC) energy grid. The tariff has been reduced from 39 cents to 35 cents per kilowatt/hour. Since August, 2016, the tariff has seen reduction from 54 cents to 35 cents per Kw/hr.
According to an Executive Mansion release, President Sirleaf made the pronouncement when Liberia and Germany signed a KfW €15m grant at the Foreign Ministry in Monrovia. She thanked the President's Delivery Unit (PDU), the German Ambassador to Liberia, Hubert Jager and KfW for the great job and for bringing the agreement to reality.
President Sirleaf noted that over 9,000 connections have been made in the City of Paynesville and other parts of Monrovia with enhanced visibility. She also indicated that funding is already available for 93,000 connections within the Bomi, Kakata and RIA Corridors; an initiative that will spread electricity beyond Monrovia. "The small light today and big light tomorrow has become a dream realized," President Sirleaf concluded.
The project was initiated in June, 2017 when the President's Delivery Unit (PDU) met with KfW for bilateral talks in Frankfurt, Germany and that the signing ceremony of Tuesday, this week - will see the release of funds in October, 2017 with the first connections in the second quarter of 2018. The PDU has worked assiduously with KfW to ensure the release of funding and procurement got underway before President Sirleaf leaves office.
The Agreement is expected to deliver 16,000 new connections that will fill the gaps between the larger projects in areas such as Clay Ashland - Bentol- Fendell; Double Bridge-Pipeline-Police Academy; and Duport Road - Rehab Communities. Schools and medical institutions in the targeted areas will benefit from the additional connections. As the customer base grows, there will be further reduction in the tariff rate.
Finance and Development Planning Minister, Boima Kamara and Acting Board Chairperson of the Liberia Electricity Corporation, Dr. Clarence Moniba signed on behalf of the Government while Mr. Herr Andre Collins signed for KfW.
Speaking earlier, Finance and Development Planning Minister, Boima lauded Germany for standing tall in its development cooperation with Liberia. He pointed out that the Agreement will set the platform for a stronger recovery of the economy for post-2017. "Liberia is grateful to Germany and KfW as this intervention comes at a time of strong efforts aimed at resuscitating the Liberian economy," Minister Kamara said.
German Ambassador, Hubert Jager recommitted his country to upholding its bilateral relations with Liberia and praised the Government of Liberia for concluding the Agreement in record time. He indicated that it took the team just two months to negotiate and conclude the Grant Agreement compared to the nine to twelve months it normally takes for such initiative.