AfDF Approves $7.41m to Complete Liberia’s Gbedin Falls Hydropower Project

The decision, made during the AfDF Board meeting in Abidjan, will help close remaining financing gaps and ensure full delivery of project components following implementation delays and cost overruns.

 

The African Development Fund (AfDF)—the concessional financing arm of the African Development Bank Group—has approved an additional US$7.41 million loan to support the completion of Liberia’s Renewable Energy for Electrification Project, a major initiative aimed at expanding energy access, boosting renewable generation, and strengthening Liberia’s national grid.

The decision, made during the AfDF Board meeting in Abidjan, will help close remaining financing gaps and ensure full delivery of project components following implementation delays and cost overruns.

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Financing Boost to Complete Hydropower Construction

The supplemental funding will cover rising construction costs for the Gbedin Falls run-of-river hydropower plant and associated infrastructure. It will also finance cost overruns linked to:

• Project management and technical oversight

• Environmental and social safeguards

• Implementation of the Gender Action Plan

• Underfunded activities vital to achieving planned outputs

AfDB officials noted that without this additional financing, key components risked delay, potentially affecting electricity delivery to thousands of households.

The extra funding ensures the project can be completed on schedule and at full operational capacity.

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A Joint Commitment to Transform Energy Access in Liberia

The Renewable Energy for Electrification Project is a partnership between:

• The Government of Liberia

• The African Development Bank Group

Key milestones include:

• Project approval: 31 October 2019

• Financing agreements signed: 29 January 2020

• Implementation launched: March 2021

The project is central to Liberia’s long-term strategy to diversify its energy mix, reduce reliance on expensive diesel generation, and provide reliable power to rural communities.

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Gbedin Falls Hydropower Plant: A Key National Asset

The project’s centrepiece is the construction of a 9.34 MW run-of-river hydropower plant at Gbedin Falls in Nimba County. Once operational, the plant will generate approximately 56.5 gigawatt-hours (GWh) per year—equivalent to 6.9% of Liberia’s national electricity supply.

Key Infrastructure Components Include:

• 9.34 MW hydropower plant using river flow for clean energy

• 8 km, 33-kV evacuation line to transmit power

• Two new transformer substations

• Integration into a cross-border transmission network, boosting regional energy trade

• 15 km permanent access road to the plant

• 8 km temporary access road for construction

• 50 km of 33/0.4 kV distribution lines

• 6,650 household connections in Nimba and Bong counties

The hydropower plant will provide affordable, sustainable electricity and reduce dependence on imported fossil fuels.

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Delivering Clean Power to Thousands of Liberian Families

When completed, the project will expand electricity access to about 60,000 people, many of whom have never had grid connection. Additionally:

• 6,500 people will receive direct grid connections through the project

• Communities will benefit from safer, more reliable power

• Public institutions—schools, clinics, small businesses—will gain improved energy access

• Rural economic activity is expected to increase as energy becomes more affordable

The project will also encourage local enterprises, agricultural value chains, and small industries that rely on stable electricity.

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Boosting Liberia’s Clean Energy Mix

Liberia’s electricity sector has long suffered from:

• High generation costs

• Heavy reliance on diesel

• Limited rural access

• Inadequate transmission infrastructure

The Gbedin Falls hydropower plant is a strategic investment that will:

• Expand the renewable share of Liberia’s energy mix

• Reduce carbon emissions

• Increase energy security

• Improve grid reliability

By adding 56.5 GWh/year of clean electricity, Liberia moves closer to meeting its national renewable energy and climate goals.

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Gender, Inclusion, and Safeguards Prioritised

The additional loan also ensures full implementation of the Gender Action Plan, which supports:

• Economic opportunities for women and youth

• Safe working environments

• Inclusion in community consultations

• Improved access to electricity for female-headed households

Environmental and social safeguards—such as ecosystem protection, community engagement, and resettlement support—will also be fully implemented.

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A Transformative Step for Liberia’s Energy Future

The AfDF’s additional funding underscores the Bank’s long-term commitment to strengthening Liberia’s energy sector and supporting sustainable development. The Gbedin Falls project aligns with Liberia’s broader goals of:

• Expanding nationwide electricity access

• Supporting green growth

• Reducing poverty

• Strengthening rural development

Once completed, the project will stand as a cornerstone of Liberia’s renewable energy infrastructure—bringing light, opportunity, and improved living standards to tens of thousands of people.