Liberian govt receives $34.74mn loan from African Development Fund for renewable energy

A loan of around USD 34.74 million has been approved by the African Development Fund to enhance renewable energy access and promote investment climate in Liberia.

The African Development Bank's Country Manager in Liberia, Dr. Orison Amu, and Liberia's Minister of Finance & Development Planning, Samuel Tweah Jr. signed the financial agreements for two projects in Monrovia. The ceremony was attended by officials from government, the National Investment Commission (NIC), the Rural Renewable Energy Agency (RREA), development partners and other stakeholders.

The first project titled 'Renewable Energy for Electrification in Liberia', attracting USD 33 million, is in the form of a grant from the African Development Bank and the Strategic Climate Fund's Scaling-up Renewable Energy program. This project is aimed to support renewable energy sector growth.

The funds will go towards construction of a mini dam on the St. John River in Nimba County in north-eastern Liberia and the development of the Gbedin hydropower Falls with a total capacity of 9.34 megawatts of power, to be transmitted through an 8 kilometres, 33 kilovolt line connecting 7,000 households.

According to the plan, the project is aimed to make a system that would allow for grid expansion to isolated communities and support the connection of schools, businesses, health centres and industries to the national grid, increasing the rural electrification rate in Liberia. The project would assist in unlocking one of the main constraints to economic development, access to a reliable, affordable and sustainable supply of electricity, as said by Samuel Tweah Jr.

On the other hand, the second project titled 'Support to Investment Promotion Agencies in Transition Countries' received approval for an additional USD 1 million to assist in promoting business investment in Liberia and building the capacity of the National Investment Commission. The funds will come from the Bank's Transition Support Facility. "As a Bank we understand the challenges faced by Government and the efforts underway to attract Foreign Direct Investment. This project aims at contributing to those ongoing efforts by (the Liberian) government," Amu said.