KEY POINTS
- President Boakai submitted a $57 million IDA financing agreement to Liberia’s legislature for ratification.
- The deal covers a 30MW solar plant with 12MWh battery storage at Mount Coffee Island.
- The agreement also expands the Mount Coffee Hydro Power Plant by adding 42MW through four new turbines.
Liberia’s president has sent a $57 million energy financing agreement to the House of Representatives, asking lawmakers to ratify a deal with the World Bank that would add new solar capacity, expand an existing hydro plant and strengthen the country’s connection to the West African regional power grid.
President Joseph Boakai formally submitted the financing agreement to the House on Thursday, describing it as urgent and critical to the country’s energy future. The deal is an additional financing arrangement under the Regional Emergency Solar Power Intervention Project between Liberia and the International Development Association, the World Bank’s concessional lending arm.
“I respectfully urge the National Legislature to ratify this Financing Agreement, which will significantly strengthen Liberia’s energy sector, expand access to reliable electricity, promote renewable energy development, and enhance regional power integration,” Boakai wrote in his communication to the House Speaker.
What the $57 million will build
The financing covers two major infrastructure components. The first is a 30-megawatt peak solar photovoltaic plant with a 12-megawatt-hour battery energy storage system at Mount Coffee Island, along with transmission lines and substations needed to connect it to the national grid.
The second component is an expansion of the Mount Coffee Hydro Power Plant through the installation and commissioning of four turbines, each with a maximum capacity of 10.5 megawatts, adding a combined 42 megawatts of generation output to an existing facility.
The financing package carries concessional repayment terms with a maximum commitment charge rate of 0.5 percent per annum on the unwithdrawn balance, with debt service payable semi-annually on February 15 and August 15.
The legislature’s next steps
The House of Representatives voted unanimously to forward the agreement to a joint committee comprising the Investment and Concessions, Mines, Energy and Natural Resources, Contracts and Monopoly, Ways and Means, and Public Utilities committees for review. The committee has been mandated to conduct public hearings, assess fiscal and macroeconomic implications and examine procurement compliance before reporting back to the full House next Thursday.
Lawmakers said the committee’s review will focus on grid expansion, electricity tariff implications, energy governance, debt sustainability and regulatory compliance. The World Bank financing is repayable under highly concessional terms in line with IDA’s standard credit structure for low-income countries.
