Monrovia – The Liberian Senate has voted in favor of a report from its Joint Committee on concession and Investment; Judiciary, claims, Petitions and Human rights and Foreign Affairs granting investment incentive to Musons Group Inc.
Report Henry karmo – henry.karmo”frontpageafricaonline.com
The Investment Act of 2010 allows for business organization to receive certain fiscal and non-fiscal incentives and the National Investment Commission (NIC) is charged with encouraging, promoting and assisting in the development of foreign direct investment, domestic entrepreneurs, and with the implementation of the NIC Act.
In the committee report, it recommended to plenary of the Senate to approve the investment incentive because Liberia will eventually benefit from over US$70 million investment.
“The Senate Committees on Concessions and Investment and Judiciary, claims, petitions and Human Rights hereby recommends to the plenary of the Liberian Senate to approve the ratification of the proposed Investment Incentive Agreement between the government of Liberia and Musons Group Inc.,” the committee recommended.
The committee believes the proposed Investment Incentive Agreement between the Government of Liberia and Musons Group Inc. is intended to improve Tourism and Economic activities in Liberia.
According to the senate, joint Committees Musons Group is a company owned by Liberian Citizen that seeks to develop a one hundred and ten room five-star Hotel through a total investment of no less that seventy Million United States Dollars during the first five years following the effective date.
“The Ministry of Finance and Development Planning and the National Investment Commission have assured the Senate committees that the provision of the incentives indicated in the agreement will eventually bring tremendous benefit to the Liberian Economy,” the commission added.
In other aspects of the agreement, the committee’s report states that the Investor shall provide for training of Liberian nationals in order to qualify them for the positions, and as required by the investor’s operations under the agreement.
In the agreement, investors will also be required to provide on the job training and vocational training necessary for employees to undertake their work competently and will also provide them with opportunities to learn new techniques that will allow such employees to progress into positions requiring more complex and demanding skills.
“Investor agrees to implement a policy of technology transfer which will include a transfer of operational techniques and women and modern management techniques, the report added.
The Senate report also states that the investor, commencing the start of commercial operations, shall provide annually through a company administration grant, five thousand united states dollars adjusted for annual inflation using the GDP implicit price Deflator payable through the term for high school graduates and Universities for scholarship for students who are Liberian citizens and residents of the Marshall community.
The documents also read that the investor shall, when purchasing goods and services related to the Investor’s activities, give preference as much as possible to goods produced in Liberia by Liberian nationals, and services provided by Liberian nationals resident in Liberia, or entities incorporated or formed in Liberia, where Liberian nationals resident in Liberia are entitled to receive sixty percent (60%) or more of all profits from such entities, provided that such goods are equal to or better than comparable goods and services obtained from other persons or entities taking into account price, quality, safety standards, service quantity, delivery schedules, availability and another term.
In addition to the incentive deduction provided under section 204 (d), and pursuant to certification by the Minister of Finance and Development Planning, the Investor shall be granted an additional five percent incentive deduction of the purchase price of equipment and machinery, provided that investor employs more than one hundred Liberian nationals.
Among many benefits, the agreement also calls for an investor to be exempted from import duties on goods and materials imported solely for the construction of the resorts for the first five years of construction including approved medical and educational materials.
From the effective date until the tenth anniversary thereof the investor shall be exempted from import duties on capital spare parts, consumables, equipment, and machinery directly used in operations.