Renewable energy in Liberia takes a new turn as the African Development Fund (ADF) recently signed agreement with Liberia’s Minister of Finance & Development Planning to boost renewable energy access and promote an attractive investment climate in the West African country.
The signing ceremony was undertaken by the African Development Bank’s Country Manager in Liberia, Dr. Orison Amu, and the Liberia’s Minister of Finance & Development Planning, Samuel Tweah Jr.
ADF approved a $34.74 million grant and loan for the financing of two projects. Under the first project, the Renewable Energy for Electrification in Liberia, more than $33 million, primarily in the form of a grant from the Bank and the Strategic Climate Fund’s Scaling-up Renewable Energy program, is to support renewable energy sector growth.
While the second project – Support to Investment Promotion Agencies in Transition Countries, received approval for an additional $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.
According to Dr. Amu, “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,” he adds.
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 portfolio spreads over six sectors covering infrastructure, predominantly roads, and energy.
As a result of the new signing, energy in Liberia will accounts for 26% of the Fund’s total commitments going forward.
With high expectation towards the realization of the project, Minister Samuel 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.