MONRVIA, Montserrado – A day after the joint legislative committee on Ways, Means and Finance held a public hearing on the US$536,400,000 loan financing agreement between the government of Liberia and Eton Finance PTE Limited to finance road constructions in the country, the House of Representatives has ratified the document.
Of the 49 representatives in Tuesday’s session, 48 voted to ratify the agreement, while Montserrado’s 10th district representative, Yekeh Kolubah, abstained from the votes.
Montserrado’s 5th district representative, Thomas Fallah, who heads the House’s Committee on Ways, Means, and Finance, presented findings from the public hearing.
In his presentation, Fallah told his colleagues that from the joint public hearing, Liberians were unanimously in favor of road constructions. Meanwhile, the agreement has been forwarded to the Senate for concurrence.
The government entered into the agreement with the Singapore-based finance institution to fund its coastal road project to connect southeastern counties.
The loan agreement, when put into effect, would see the construction of 505.3 kilometers of paved roads connecting Buchanan to Cestos City, Greenville to Barclayville, and Barclayville to Sass Town. The project also includes the construction of the Medina to Robertsport road and the Tubmanburg to Bopolu Road, including rest stops and roadside service areas, within 48-months.
Portions of the loan, according to the agreement, would also be used for the construction of a vocational training center in Greenville, Sinoe and mini-soccer stadiums in Harper, Barclayville, Greenville, Cestos City, Zwedru, Robertsport, and Bopolu.
The loan is payable over 15 years with a seven-year interest and principal free grace period. At an interest rate of 1.46 percent, the government is required to pay the principal amount of the loan each year after seven years from the date the agreement comes into effect.
While the lawmakers were mostly concern about the money being used for its intended purpose, the agreement places a specific restriction to the JVC or Consortium comprising MAEIL Liberia Construction Co., Ltd., a major Chinese Engineering, Procurement and Construction Company as the contractor responsible to implement the projects. Sub-contractors comprising Liberian-owned and operated construction and engineering companies would however be vetted and confirmed by the Ministry of Public Works in respect of their technical capacities, the agreement said.
In addition to the issue with limitation of the contractor’s selection, the contract also places no responsibility of post construction maintenance to the contractor, as the 247 kilometers Redlight to Ganta, Guinea border corridor constructed under an output and performance-based contract, although both contracts have similar cost of US$1 million per kilometer.
Contractors on the Redlight to Ganta, Guinea border corridor are required to manage the road for up to ten years, including the two or three years of construction.
In an attempt to clarify the disparity, the director for highway construction at the Ministry of Public Works, Dave Sleweon said the high projection was meant to avoid cost deficiency during the actual implementation. He said the actual cost of the construction per kilometer would be determined when the actual design of the project is on hand and in the implementation stage.
Director for Highway Construction, Dave Sleweon. Photo: Gbatemah Senah
Sleweon said instead of the contractor taking responsibility for the roads’ maintenance, the new roads would be financed by the country’s road fund, which was established by the legislature in 2016. That fund is also expected to pay for half of the cost to construct the Ganta to Tappita corridor.
House Speaker Bhofal Chambers has congratulated members of the House of Representatives for their almost unanimous vote to ratify the bill.
Chambers told a press conference Tuesday that the ratification of the loan agreement was in the interest of Liberians, through resuscitating the economy through infrastructure that can improve their livelihoods.
He said the government has embarked on building the country and promised that the legislature would do everything possible to satisfy the interest of its people, with no impediment.
“The ship will remain sailing to noble height undisturbedly,†he said.
He threw back at critics of the loan agreement, challenging them to provide alternatives for development. He noted that there was no country in the world, including the U.S. and Great Britain, that is free of debt.
According to the speaker, Liberia borrowed US$1.1 billion during the past regime and has nothing to show. Thus, he urged Liberians to embrace the idea of the new government, if there are people willing and prepared to loan money in order to develop the country.
He also assured that the legislature would ensure a rigid oversight on the agreement to ensure that the loan is used in line with the purpose of the agreement.
“People who create gaps will be quarantined and other appropriate actions will be taken in line with due process. So, we will not relent,†he said.
Featured photo by Gbatemah Senah
