The African Development Fund (ADF) has approved $34.74 million loan and grant to boost renewable energy access and promote an attractive investment climate in Liberia. Such decision will shape the Liberian energy sector for decades.
Dr. Orison Amu, the African
Development Bank’s Country Manager in Liberia, and Samuel Tweah Jr., Liberia’s Minister of Finance & Development Planning, inked financing agreements for two projects at a signing ceremony.
The first project covers the Renewable Energy for Electrification in Liberia, more than $33 million, in form of a grant from the Bank and the Strategic Climate Fund’s Scaling-up Renewable Energy program, is to support growth in the renewable energy sector in the country.
The grant will go towards construction of a mini dam on the St. John River in Nimba County in northeastern Liberia and the development of a 9.34 megawatt Gbedin hydropower Falls which will be transmitted through an 8 km, 33kV line connecting 7,000 households.
The system would allow for grid expansion to isolated communities and support the connection of schools, health centres, businesses and industries to the national grid, increasing the rural electrification rate in Liberia.
“The project, which is 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” Minister Samuel Tweah Jr. stated.
The second project Support for InvestmentPromotion Agencies in TransitionCountries, received approval for an additional $1 million to assist in promoting business investment in Liberia and building the capacity of the NationalInvestment Commission. The funds will come from the Bank’s Transition Support Facility, the report noted.
“As a Bank we understand the challenges faced by
Government 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 Fund has 16 on-going and
recently approved operations in Liberia with a total
commitment of $413 million. The active portfolios spreadsover six sectors covering infrastructure, predominantly roads, and energy. With this new signing, energy now accounts for 26% of the Fund’s total commitments in Liberia.
The Africa continent is rich in renewable energy sources, including hydro, sun, wind and others, and the time is right for sound planning to ensure the right energy mix.
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