7 March 2013 – The government of Liberia and the European Investment Bank (EIB) recently agreed to a US$65 million loan deal as part of a financing arrangement for the Mount Coffee hydroelectric power plant rehabilitation. The loan comes with a high concessional interest rate of 1.42%, amounting to US$8 million payable over 20 years with a four years grace period.
Liberia’s government has put the total financing cost of the project atUS$242 million. It is providing US$47.1 million of this, while its European partners are contributing US$195 million. Norway and Germany have already committed their support comprising the grant component of US$97.5 million and US$32.5 million respectively.
President Ellen Johnson-Sirleaf has made the rehabilitation of the hydroelectric facility key to economic transformation and job creation in Liberia. The absence of a cheap electric power supply in the country has slowed investment due to the high costs associated with thermally generated electricity.
The rehabilitation process which has begun includes the reconstruction of the hydro plant to produce about 80 MW and also includes the 66 kV transmission line.