Announcement of Liberia Receives Ten Million Dollars for Electric Power Project on June 19, 1978

i FbR IMMEDIATE RELEASE .•World Bank 18'18 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/ 119 June 19, 1978 LIBERIA RECEIVES $10 MILLION FOR ELECTRIC POWER PROJECT A project to expand the electricity supply system in Monrovia, the capital of Liberia, will be assisted by a $10 mill ion loan from the World Bank. The main objective of the project is to help meet the projected in- crease in demand for electric power in the Monrovia urban area from the pre- sent 65 megawatts to about 112 megawatts in 1985. Failure to meet this demand could seriously inhibit industrial and commerical development in the country. The project will assist the Liberia Electricity Corporation (LEC) in expanding its generating capacity by about 26 megawatts, and extending the distribution of electric power to the urban poor. About 5,000 low-income households in the Monrovia urban area will be supplied with electricity for • the first time . The project will also provide vehicles and equipment as well as technical assiGtance to strengthen the management of LEC, train its staff and improve its financial position. Two studies will be undertaken. The first is on changing the frequency of Liberia's power system from 60 cycles to 50 cycles per second, and the second is on the feasibility of a 175- kilometer transmission line from the Mt. Coffee power plant to the Gbarnga rural area. The latter study is a prerequisite for the expansion of elec- tricity supply to the rural areas of Liberia. The $10 million loan is the fourth World Bank assistance to the development of the electricity supply system of Liberia. Three previous loans totalling $16.8 million helped in financing the expansion of the Mt. Coffee hydroelectric power plant, associated transmission and distribution facilities, and technical assistance to improve the management of LEC. The European Investment Bank, the Arab Bank for Economic Development in Africa and the Saudi Fund are providing co-financing in the amounts of $4.7 million, $3.7 million and $11 million, respectively. The $10 mill ion World Bank loan to the Liberia Electricity Corpora- tion, to be guaranteed by the Republic of Liberia, will be repayable in 20 years, including 5 years of grace, at 7.5% interest per annum . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) • T EC HNI CAL D A T A PROJECT: Fourth Power COUNTRY: Republic of Liberia TOTAL COST: $31.55 m,llion BANK FINANCING: $10 million payable in 20 years, including 5 years of grace, at 7.5% per annum. OTHER FINANCING: The Saudi Fund for Development, $11 mill ion; the European Investment Bank (EIB), $4.68 million; the Banque Arabe du Developpement Economi'que en Afrique (BADEA), $3.7 mil 1 ion; and the Liberia Electricity Corporation (LEC), $2. 17 million. IMPLEMENTING ORGANIZATION: Liberia Electricity Corporation, Providence Building, Monrovia, Liberia PROJECT DESCRIPTION: The project will assist LEC in expanding its generating capacity by about 26 megawatts, and extending the distribution of electric power to the urban poor. ft will also provide vehicles and equipment as wel 1 as technlcal assistance to strengthen LEC management, train its staff and improve its A ft.nancial position. Two studies will be undertaken; the first is on changing the freque~ of Liberiats power system from 60 cycles to 50 cycles per second, and the second is on the feasibility of a 175-kilometer transmission line from the Mt. Coffee power plant to Gbarnga. PROCUREMENT: Items to be financed solely by the Bank or jointly by the Bank and EIB, will be procured through international competitive blddfng in accordance with Bank guidelines. The excQption will be the construction of the training school (estimated to cost about $250,000), to be financed by the Bank, whtch will be procured after local competitive bidding in accordance with procedures acceptable to the Bank. Project items to be financed by BADEA and Saudi Fund will be procured through international competitive bidding in accordance with procedures approved by these agencies. CONSULTANTS: About 12 man-years of expatriate instructors for staff training as weil as 25 man-years of expatriate management assistance are provided under the project. Consultant service~wtll also be required for the frequency conversion study and for the interior wiring of urban homes. ECONOMIC RATE OF RETURN: 17% ESTIMATED COMPLETION DATE: 1981 • - 0 -