MONROVIA — As the supply of cheap, stable and affordable electricity remains a challenge in post-conflict Liberia, the underfire Chief Executive Officer (CEO) of the Liberia Electricity Corporation (LEC) Monie Captan has recommended the purchasing of electricity from any source as one of the best ways forward to address the situation.
By Obediah Johnson
Despite the expenditure of nearly a billion United States dollars to revive Liberia’s shattered energy sector that was destroyed as a result of the 14 years civil conflict, the supply of stable electricity remains far from coming to fruition.
This makes the LEC, the public utility corporation responsible to ensure the generation, supply and transmission of electricity to households and businesses, the most heavily criticized public service delivery entity in the country.
The situation has claimed the attention of members of the Senate Committee on Lands, Mines, Energy, Natural Resources and Environment headed by Grand Cape Mount County Senator Simeon Taylor.
Speaking when he appeared for public hearing before the committee at the Capitol Building on Monday, March 18, Mr. Captan admitted that Liberia is currently faced with an “energy crisis.”
He justified that the current management team of the corporation cannot be held liable for the current inadequate supply of electricity to households and businesses in the country.
Mr. Captan, who appeared very emotional during the hearing, stated that any country that fails to invest in its energy infrastructure development will face similar problem Liberia and its citizens are experiencing.
He maintained that value for money will not be realized when investment in the energy sector commences on an emergency level, as the government remains the only shareholder of the LEC.
“If we want to solve this problem (of poor electricity supply) now, the best solution is we have to buy electricity from whoever has it to sell. But the question is what are the terms and can be accept or afford the terms? Public investment in electrification is not the responsibility of the utility or management; that’s the responsibility of the government.”
When quizzed that the LEC does not have the capacity to produce the required energy, Mr. Captan stated: “Yes, that is correct Sir.”
According to him, the plans of the LEC are to purchase electricity and invest in energy generation infrastructure.
Justifying his dual roles as Board Chair and CEO of the LEC, Mr. Captan claimed that the management of the corporation has been contracted dating as far back as the administration of former Liberian President William R. Tolbert.
According to him, the situation is not only unique to Liberia, but other countries around the world.
Not using tokens money
He maintained that the current management team at the entity cannot use monies generated from the sale of electricity tokens to construct transmission networks and substations in the capital and other areas.
According to him, such investment must come from the government, instead of the LEC as a public utility that has also been striving to connect customers.
“This is a major issue and we need to take it on as a government. We have a gap of over 27,000 homes in Monrovia now that need to be connected and that requires somewhere around US$12.5M to do that. But if you look at our budget, I don’t think you will see anything in there that is supposed to support this.”
“We need to roll this out on a national level. But if somebody will say wait for the LEC to get the money to do all of that, it’s not going to happen.”
On selling electricity, former Liberian Finance and Development Planning Minister Samuel Tweah claimed that Liberia was “selling” electricity to neighboring Ivory Coast while on a campaign trail with ex-President Weah barely few days to the conduct of the October 2023 elections.
But responding to an inquiry, Mr. Captan pointed out that the term “selling” as being used in the public was not accurate.
He disclosed that during the rainy season, load changes prompting the exceeding of electricity usage by Liberia.
He said “excess of electricity is injected into the CLSG line”, like the meters that are being used at various homes and businesses in the country.
“It is not like we have a commercial arrangement to sell electricity to Ivory Coast. Last year rainy season, we have excess and we generated somewhere around US$800,000 in savings on net return.”
Turbine damaged
Mr. Captan used the occasion to disclose that since three years ago; one of the turbines at Mount Coffee Hydro Dam has been damaged, thereby reducing the supply of electricity to consumers.
He put the cost for the repair of the turbine at US$6.5M euros.
According to him, funding has already been secured to finance the project, following the completion of procurement processes.
Mr. Captan said it is extremely costly to run generators to supply electricity during this dry season.
However, he disclosed that the corporation is now focusing on two primary sources of electricity, including solar and hydro.
“When we took over, not one generator was working. We spent US$2M and generators are now working.”
On privatization
Mr. Captan claimed that companies expressing interest to invest in the country’s energy sector want the LEC to sign an agreement to enable them purchase all of the electricity for onward distribution and transmission to consumers.
He added that though the management of the LEC is not against the privatization of the sector, companies expressing interest are “coming with conditions.”
He said by purchasing energy from local companies, the LEC is encouraging private investment in the sector.
Mr. Captan, however, admitted to negative perceptions citizens have about the workings of the entity.
He attributed the growing wave of fire incidents across Monrovia and other parts adjacent to the alleged by-passing of meters, hiring of unqualified electricians and the purchasing of substandard wires by some of the fire victims.
Senators have been questioning the placement of Liberia’s energy sector squarely into the hands of the World Bank and other international partners.
They also observed and pointed out the ineptitude of the current management team of the corporation.
However, they resolved that the current situation requires collective efforts if sustainable gains are to be made in the energy sector.
They further stressed the need for a robust awareness campaign on the usage, prevention and control of energy in the country.
The dual roles being played by Mr. Captan as Board Chair and CEO of the LEC also claimed the attention of the Senators.
They are expected to forward a report to the Plenary upon their return from their first constituency break.
