PRESIDENT JOSEPH BOAKAI used his first official foreign trip last week, to visit next-door neighbor, Cote d’Ivoire, a key supplier of electricity to Liberia through the landmark CLSG project, which connects Cote d’Ivoire with Liberia, Sierra Leone, and Guinea, with the flow of electricity.
THE VISIT COMES in the midst of multiple reports that a controversial Turkish Karpowership group is trying to resuscitate its interest in Liberia. FrontPageAfrica reported last week that the company recently submitted a proposal to the Boakai administration to have the ship brought to Liberia in hopes of easing the power needs for millions of Liberians craving electricity.
AS PROMISING AS THE KARPOWERSHIP appeal sounds, there is a lot of red flags surrounding its interests in Liberia. Key amongst them, is the many hidden costs attached to such a deal – and the fact that the Liberia Electricity Corporation(LEC) will, under the contract terms, have to pay for all power produced whether consumed or not.
AT 50 PERCENT CURRENT theft rate, the actual cost will be doubled if 16 cents are only a base cost, one source told FrontPage Africa. At the moment, the cost of power at Mt. Coffee is set at 6 cents. The 35 cents tariff is necessary to cover operational costs, especially with 500+ employees and maintenance costs. The tariff would come down once the customer base increases. So, even if LEC buys at 16 cents, it would be unlikely that it would sell for that amount.
FRONTPAGEAFRICA HAS LEARNED and reported that in order for a Karpowership deal to materialize it will require Liberia to put down US$7 million upfront. Ironically, Liberia owes the Ivory Coast millions of dollars for services rendered and electricity provided so far.
MORE IMPORTANTLY, COTE D’IVOIRE has the ability to provide even more if Liberia can simply pay its bills owed. Paying US$7 million to another company for doing the same services the CLSG offers is not only a waste of time and money but also signals an unwillingness on the part of the Boakai administration to do the right thing regarding the provision of stable electricity to Liberians and Liberia.
WHILE WE WELCOME the President’s assurances to settle Liberia’s indebtedness to Cote d’Ivoire, we hope that it will not end there. The President must follow up his assurances to Liberia’s next-door.
MR. MOHAMMED M. SHERIF, General Manager, the TRANSCO CLSG General Manager was clear during his meeting with President Boakai, about the energy constraints being faced by Liberia, which has led to significant load shedding by LEC. Mr. Sherif expressed the need for the Government to finance its indebtedness to CI Energies and provide adequate financial support to enable LEC to build and expand its national transmission and distribution network including connecting large communities, industries, and mining sites. According to Mr. Sherif, annual budget support to LEC will go a long way in fast-tracking the implementation of rural electrification and the expansion of connections to more towns and villages.
MR. SHERIF INFORMED President Boakai that TRANSCO CLSG will continue to solicit support from the government for its sustainability. “We know that this mechanism (CLSG project) is working and all of us need to put our hands and support it for the CLSG Line to work as envisaged by the four member countries.” He called on the government to move aggressively to support the project. “It’s a reliable power source and mechanism once we can make the necessary funding available,” he emphasized.
AT THE SAME TIME, the Boakai administration must ensure that it engages key stakeholders on how the Mount Coffee Hydro plant can be improved and enhanced in its capacity to supply Liberians with stable electricity especially during the critical raining season period.
PRESIDENT BOAKAI was right when he said during his talks with his counterpart, Alassane Ouattara, last Thursday, that “Electricity is life.”
IT IS LIFE for large and small businesses spending millions of dollars to keep their lights on – and their businesses afloat; it is life for scores of Liberians sleeping in the dark, it is life for kids who are denied the right to study at night, it is life for homes unable to store food and drinks properly due to the lack of stable electricity.
PRESIDENT BOAKAI and his government must put words into action and prioritize increased access and the expansion of stable electricity to the Liberia people.
WE ALSO WELCOME the President’s expression of his administration’s unwavering support for the sustainability of the landmark CLSG project, which connects Cote d’Ivoire with Liberia, Sierra Leone, and Guinea, with the flow of electricity.
THE FACT OF THE MATTER is Liberia is desperately in need of a solution to its ongoing electricity crisis – and while the Karpowership proposal looks appealing, the Boakai administration must read all the fine prints and ensure that Liberia does not fall into the same dilemma next-door neighbor Sierra Leone and Guinea Bissau found themselves in recently when Karpowership shut down electricity over unpaid bills.
IT SIMPLY makes no sense to pay US$7 million to Karpowership while millions more is owed as Liberia’s commitment to the CLSG project. While it is true, in some cases that desperate times calls for desperate measures, the Boakai administration must tread carefully in how it handles this delicate but essential power sector.
THERE IS JUST TOO MUCH at stake and too many depending on a solution to a crisis that, if managed well, could elevate the business climate in Liberia and make life so much easier for millions of Liberians eyeing a permanent solution to the electricity crisis.
