Liberia gets AfDB $34.7m

George Weah, President, Liberia

The African Development Bank has approved a $34.74m grant and loan to boost renewable energy access and promote an attractive investment climate in Liberia.

At the signing ceremony recently in Monrovia, Dr. Orison Amu, the African Development Bank’s (AfDB.org) country manager in Liberia, and Samuel Tweah Jr., Liberia Minister of Finance & Development Planning, inked the financing agreements for two projects.

Under the first project, the Renewable Energy for Electrification in Liberia, more than $33m, primarily in the form of a grant from the AfDB and the Strategic Climate Fund’s Scaling-up Renewable Energy program, is to support renewable energy.

The grant will go towards the construction of a mini dam on the St. John River in Nimba County in northeastern 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 km, 33kV line connecting 7,000 households.

The system would allow for grid expansion to isolated communities, support the connection of schools, health centers, businesses and industries to the national grid, and also increase the rural electrification rate.

Tweah Jr. said the project, scheduled for completion by 2024, would help unlock one of the main constraints to economic development: access to a reliable, affordable and sustainable supply of electricity.

The second project - Support to Investment Promotion Agencies in Transition Countries – received approval for an additional $1m to assist in promoting business investment in Liberia and building the capacity of the National Investment Commission.

“At AfDB, we understand the challenges faced by Liberia and the efforts underway to attract foreign direct investment,” said Amu. “This project aims at contributing to those ongoing efforts by (the Liberian) government.”

As of January 2020, the AfDB has 16 ongoing and recently approved operations in Liberia with a total commitment of $413m. The active portfolio spreads over six sectors covering energy, infrastructure and roads predominantly.

With this new signing, energy now accounts for 26% of its total Liberia commitments.