Monrovia — President George Weah Tuesday, July 10, 2018 submitted for ratification additional financing agreement for the West African Power Pool (WAPP) Interconnection Project Cote d'Ivoire-Liberia-Sierra Leone-Guinea (CLSG).
The original international Development Assistance loan (IDA) for the implementation of the regional project is SDR94, 9000,000 or US$147 million negotiated in March 2012. The amount of the project increased between the period 2012 and 2016 due to the Ebola epidemic in the Mano River Basin impasse and other economic factors.
The amount of the additional financing allotted to Liberia is US$45.3 million. This agreement was signed on December 11, 2017 and it comprises a grant of US$22.6 million and a US$22.7 million. The maximum commitment charge rate is one-half of one percent (1/2 of1%) and the service charge is greater of: (a) the sum of three-fourths of one percent (3/4 of 1%) per annum on the withdrawn credit balance with payment dates of February 15 and August in each year.
The objective of the project, according to President George Weah's communication, is to support government's effort in providing reduced and affordable cost of electricity that will be efficient and reliable for the Liberian people in both the rural and urban areas.
"Honorable Speaker, this project when ratified will provide a range of opportunity for Liberia. Liberia can use the transmission line to transport electricity to other countries, and other concessionaires within the power line range which amounts to revenue generation.
This project is significant to our economic recovery program and I trust that the legislature will ratify this agreement in a timely manner."
Under similar project IDA Credit to the Republic of Sierra Leone: $59.57 million equivalent with a maturity period of 38 years, and a Grace period of 6 years
In additional IDA Credit, $22.66 million equivalent and IDA Grant $22.66 million equivalent to the Republic of Liberia for a West African Power Pool - Cote d'Ivoire, Sierra Leon, Liberia and Guinea Power Interconnection Project with Maturity period of 38 years, and Grace 6 years
IDA Additional Grant: $17.5 million equivalent to the West African Power Pool for the WAPP Interconnector Project and Integration and Technical Assistance Project
Project ID: P163033
Project description: The project will help reduce the cost of electricity supply at the utility level for Liberia and Sierra Leone and increase the amount of electricity traded among all the participating countries. It will also help increase the technical integration of the WAPP network.