Monrovia – Bombarded by criticisms over the past eleven years, the Sirleaf-led government took steps to revisit compensation packages for paid to both Boards and senior management at its State Owned Enterprises (SOE), a key component of Liberia’s economic growth responsible for millions, if not billions in revenue annually.
The Grades Are In: Who Passed; Who Failed; Who Made The Curve?
Nearly all of the some 20 SOEs are government-owned and make up several sectors including port services, airport and civil aviation, electricity supply, oil and gas, water and sewage, agriculture and forestry, maritime, petroleum importation and storage, and information/communications services.
The SOE sector remains a key part of Liberia’s economic development agenda and is guided by the Public Financial Management (PFM) Law of 2009 which sets out rules governing SOE management and operations.
Among the major contributors to the economy are the National Port Authority (NPA), Liberia Electricity Corporation (LEC), Roberts International Airport (RIA), Liberia Civil Aviation Authority (LCAA), National Oil Company of Liberia (NOCAL), Forestry Development Authority (FDA), Liberia Maritime Authority (LMA), Liberia Petroleum Refining Corporation (LPRC), Liberia Water and Sewer Corporation (LWSC), Liberia Telecommunication Authority (LTA), and the Liberia Telecommunications Corporation (Libtelco).
With millions lost to travel allowances and other benefits each year, criticisms have taken a toll on SOEs partly due to what some experts point to the lack of a strict and clear definition of SOEs. In most instances, the SOEs are bracketed as autonomous public corporations whose ownership is largely dominated by the government, with similar standards of operations.
A major criticism of the SOE’s has been that because most members of boards are appointed by the President as stipulated in the individual laws providing for the creation and governance of each SOE, political appointees who usually fill those positions lack the quality and expertise to make the SOEs more beneficial to the local economy.
As a result the hands have not been equal. While some SOEs have been doing well and contributing to the national budget, others have been more of a liability while some like the Liberia Maritime Authority and the National Oil Company of Liberia(NOCAL) have simply exhausted resources to the detriment of the economy.
A recent government-backed review of SOEs found that a large number of SOEs to be non-functional and a total waste of resources. As a result in June 2015, President Sirleaf submitted a bill to the national legislature to dissolve several n SOEs whose functionalities were no longer relevant to the public service.
Those recommended for dissolution were: National Insurance Company of Liberia (NICOL) Libyan-Liberian Holding Company (LLHC) National Food Assistance Program (NFAP), Liberia Free Zone Authority (LFZA), Liberia Produce Marketing Corporation (LPMC).
Bureau of State Enterprises (BSE), despite the action, many economists and government watchers fear that Liberia is not taking full advantage of its potential regarding the SOEs, particularly as investor interest heighten in areas of agriculture, construction, extractive industries, telecommunications, and public utilities.
Critics charge that Liberia which remains heavily reliant on foreign aid could benefit more if resources from SOEs are managed properly and could come in handy in the development of infrastructures like the road network, the electrical grid, and the communication systems – which despite some interventions, remains in post-war disrepair.
LIBERIA PETROLEUM REFINING COMPANY
THE LOWDOWN: It was yet another scandal-ridden year for the petroleum entity task with procuring and supplying quality petroleum and petroleum-related products to the Liberian market.
Since 2006 when the Sirleaf administration took over, the LPRC has been dogged with reports of financial mismanagement and irregularities and 2016 did not disappoint. Managing Director Sumo Kupee found himself at the center of multiple allegations as the company struggled to keep itself above scandal water.
Outside the scandals consumers felt the pinch as fuel prices saw increase during the course of the year under review. Fuel prices are monitored by the Ministry of Commerce which fixes the prices on monthly basis based on international prices after consultation with the LPRC and the distributors.
But a recurring problem has been poor road conditions which causes prevents fuel from reaching all parts of the country. Most transporters are dedicated to one distributor, such as TOTAL which has 29 selling points in the country.
2016 HIGHS: During the course of the year under review, the company announced that it was allotting funds in its Fiscal Budget in a bid to apply part of it to eligible payments under the contract
of the LPRC’s Product Storage Terminal Expansion Project Consultancy as it sought to implementation comprehensive expansion and modernization of its Bushrod Island terminal. The expansion project includes the construction of new petroleum storage tanks, installation of new jetty pipelines, installation of new loading gantry and the installation of a fire fighting system.
2016 LOWS: During the course of the year under review, the LPRC in conjunction with the Ministry of Commerce & Industry announced an increase in the price of diesel (fuel oil), declaring that
the retail pump price for a gallon of fuel oil had increased from US$2.68 to US$2.98 or its Liberian dollar equivalent of LD$275 (which represents a 30 United States cent increment), while the retail pump price for a gallon of gasoline remains at US$2.96 or its Liberian dollar equivalent of 270. The prices in Liberian dollars were calculated using the Central Bank’s approved exchange rate of $1 LR$92.00.
The company announced that the decision to increase the price of diesel was a result of a shift in the perimeter that is usually used to determine the price of the product in the country. However, many consumers suffered during the year as the company and the MOCI failed to put in place regulations to monitor the ceiling on prices despite pledging to effectively do so.
Despite the increase, LPRC claims that Liberia still has the lowest price in the Sub-region, largely due to lower levy imposed on petroleum products in the country as compared to other countries.
The company also took a hit when its MD Kupee was among several named in the Global Witness (GW) corruption report on Liberia. Kupee made an appearance before the Special Task Force set up to look into allegations that Sable Mining bribed senior Liberian government officials to influence passage of concession laws.
Kupee was also forced to shoot down allegations that he pocketed US$2.1 million which he allegedly generated in storage fee using the China Union Storage tank instead of the tanks at the LPRC in an attempt to deprive government of the storage fee.
In response he said: “I just heard that. I haven’t seen it, so I don’t know what they are saying. But I can imagine like I said out there that LPRC doesn’t bring in a drop of fuel into the country. The fuel are brought in by importers. So, unless somebody say to me that this importer brought the fuel and they are going to sell it and give me US$2.1 million. But all of that I know. It is the usual Liberian hatred. If you can’t go up, you come down”.
Some reports suggested that the storage fee due to be paid to the LPRC through the use of its storage tank was paid to the LPRC Managing Director since some importers were allegedly made to use the China Union storage tanks. But Kupee declared: “I don’t see how I will be able to benefit from any amount of money like that, all we receive here is storage and handling fees and we have already started an audit of our system. We have our auditors, they are in the system they are going to audit for six years including my one year of operations and the audit report will tell”.
GRADE: F
2017 OUTLOOK: A lot of anticipation is building over the resumption of the importation of Heavy Fuel Oil (HFO) in Liberia with SRIMEX and CONEX said to be on the verge of completing storage facilities and jetties. HFO importation was stopped due to the civil crisis when the storage and piping infrastructures were either damaged or looted. The resumption of HFO importation is expected to significantly reduce the operational cost of mining companies and cut down bill for electricity in the Liberia.
LIBERIA ELECTRICITY CORPORATION (LEC)
THE LOWDOWN: The LEC is tasked with providing electricity throughout the length and breadth of Liberia. In the past eleven years however, much of that service has been limited to the capital, Monrovia. Today, the vast majority of electric energy services is provided by small privately owned generators which businesses and residents rely on daily. At $0.54 per kWh, the electric tariff in Liberia is among the highest in the world.
Prior to the escalation of civil conflict in 1987, LEC’s total nameplate installed capacity was around 190 MW, which supported a peak demand of 63 MW. Electricity was mainly provided in the capital of Monrovia, where the Corporation served around 35,000 customers by 1989. Generation was a mix of hydropower, heavy fuel oil (HFO), and diesel. The small isolated rural systems were powered by diesel plants ranging from 300 kilowatts (kW) to 1,300 kW. The total installed electricity generation capacity, including the private sector, was about 412 MW.
The private sector generation, largely mining companies, also consisted of hydropower, heavy fuel oil, and diesel. During the war, the Monrovia Grid and all rural systems outside of Monrovia were largely destroyed.
The Sirleaf led government made the restoration of electricity a top priority when it took command of state in January 2006. In fact, part of the President’s 150-day plan in 2006 included installing street lighting and connecting a small number of customers in downtown areas—she coined the energy initiative “small light today, big light tomorrow.”
Toward the end of the year, the build-up to the completion of the repair and expansion of the Mount Coffee Hydropower Plant with a maximum capacity of 80 MW offered hope that light was at the end of the tunnel.
Economists and stakeholders agree that Liberia’s economic growth is severely constrained by an insufficient supply of reliable and affordable electricity. But with the only on grid electricity sold in the capital city, Monrovia, currently has an approved single tariff exceeding US$ 0, the capitol city of Liberia, Monrovia and the rural towns and cities has consequentially witnessed a proliferation of an estimated several hundred megawatts of mostly micro off grid self-generators and sellers operating at an even greater cost
As a result, electricity remains the single largest component of operational expenses in Liberia for large concessions, industries, and businesses that must have electricity and has also completely prevents new business establishments due to an inability to show projected positive returns on investment.
2016 HIGHS: Several interconnection projects with neighbouring countries is proving beneficial to Liberia. Among them, the local MV interconnections from Ivory Coast to Liberia and projects within the framework of West African Power Pool (WAPP) development that links Ivory Coast, Liberia, Sierra Leone and Guinea under the CLSG. The WAPP project provides for a second 225 kV interconnection between Liberia and Ivory Coast from Buchanan in Liberia to San Pedro in Ivory Coast.
As part of the project, voltage interconnection from Ivory Coast to Liberia in areas in the border zone to Ivory Coast in the south of Liberia, a power supply system connected to Ivory Coast’s 33 kV network has been developed and is currently under construction and targeting Nimba, Grand Gedeh, and Maryland counties.
2016 LOWS:
GRADE: F
2017 OUTLOOK: With the completion of the hydro in plain sights, will President Sirleaf have the last laugh over her “Small light today; Big Light tomorrow boast?
LIBERIA AIRPORT AUTHORITY (LAA)
THE LOWDOWN: The LAA has seen its share of negative publicity during the course of the past eleven years. But it was the indictment in 2013 of its former Managing Director, Ellen Corkrum who while serving as head of the Liberia Airport Authority left the country amid allegations of theft, and later released strings of recordings linking senior government officials to alleged corruption, that eclipsed much of authority’s work.
During the course of the year, those ghosts continue to haunt the authority when Corkrum, who has been indicted for theft of property and economic sabotage, filed a Motion for dismissal of the case against her.
Corkrum, in filings, wants the indictment quashed for Failure to Proceed with the case. Under the Liberian legal system, a motion to dismiss can be filed if the opposing party fails to proceed with the case after two terms of court. In the case of Corkrum, legal pundits have said that the motion to dismiss filed by the defendant has no legal basis on grounds that she was not properly served the indictment and brought under the jurisdiction of the court.
Not to be sidestepped by the saga, the LAA continues to press on. During the course of the year under review, authorities at the LAA has been busy working toward changing the narratives amid mounting criticisms regarding the state of the RIA.
It is the hope of many that the renovation into a state-of-the-art airport facility of the current airport will offer advantages to Liberia by becoming a key hub for air transport in West Africa region. The construction works will entail setting up of cargo handling facility, cargo storage and processing facilities.
It is also expected that the state-of-the-art airport will also have fuel supply terminals and parking garages. The LAA expects that the contractor will set up facilities that meet relevant ICAO Standards. Other facilities to be included in the design include modern hotel/conference center/complex and a “free zone” manufacturing complex.
No date for completion has been set since the qualifying firm is supposed to submit proposals for timeline, as well as source funds for the project.
2016 HIGHS: The high point of the year Runway Rehabilitation and Terminal Projects began with competitive bidding processes simultaneously and successfully completed with two Companies, SINOHYDRO Corporation (for the runway) and China Harbour Engineering Company Limited (for the terminal), emerging as winners.
The Contract for the Runway Rehabilitation Project was signed on September 5, 2016 with a total value of US$ 30 Million and duration of 10 months. The Project is funded through a loan from the Saudi Fund for Development (SFD) and the Arab Bank for Development in Africa (BADEA).
The Contract for the Terminal Upgrade and Expansion Project was also signed on April 29, 2016 with a total value of US$ 50 Million, through a Concessional Loan from the China EXIM Bank.
The total length of the runway is 11000 ft and involves the excavation of significant sections of Runway 04-22, and asphalt pavement of these sections, rehabilitation of parts of the taxiways, airside geometric improvements including a new turn-pad at runway end 04, widening of taxiway fillets, grading of the runway strip, storm-water drainage improvements, runway and taxiway marking, rehabilitation of the Aeronautical Ground Lighting (AGL) system, amongst other things. By July 2017, RIA is expected to have a Rehabilitated (new) runway, which will increase airline confidence as a safe airport for their flights. It is also intended to make Liberia fully and unconditionally compliant with the International Civil Aviation Organization (ICAO) standards.
The project involves the construction of a brand new 5070m2 Passenger Terminal building. The terminal is consisted of 2 storey, of which the first floor is for arrival and baggage handling area, and the second floor for departure.
Departure passengers will go through the centralized security check and then be dispersed for boarding. The arrivals and departures near flight gates are connected with aircraft stands by boarding bridge and shuttle bus which are used for the remote flights gate. The arrivals and departures passengers will be separated by a common corridor.
The Roberts International Airport is expected to see a brand new Terminal in roughly 22 months and anticipates an increase in airlines and passengers traffic, and hopefully restoring the facility to pre-war status as a major international hub in West Africa. Ground Breaking ceremony for both projects was held on November 21, 2016 and performed by Her Excellency, Ellen Johnson-Sirleaf, President of the Republic of Liberia.
The LAA has also identified the need for total restructuring of the current Cargo Handling operations at the RIA and therefore opted to seek Public Private Partnership with the key objectives of improving operating procedures for efficiency, improve cargo handling, data collection and management.
Following a competitive bidding process, the Government of Liberia, through the Liberia Airport Authority has awarded the Concession for Air Cargo Operations to “Global Logistics Services (GLS) Liberia”, pending the formal signing of the aforesaid Agreement.
This Concession will see GLS work to visibly improve cargo operations at RIA and the construction of a modern cargo facility, with international standards of handling and storing cargo. The Concession is expected to be for 25 years.
2016 LOWS: Much of the criticisms of the RIA have been on the current poor and dilapidated condition of not just the runway but the terminal as well. The Corkrum ghost remains a nagging pain in the LAA – and may for a long time.
GRADE: B-2017 OUTLOOK: It is hoped that the long-overdue terminal and runway revamp will save Liberians from the embarrassment they have been enduring over the past twelve years.
LIBERIA CIVIL AVIATION AUTHORITY
THE LOWDOWN: THE LOWDOWN: The authority responsible for providing enhanced quality in service and productivity by providing innovative technical regulatory supervision geared towards the promotion of a safe civil aviation sector has steered off the drama circuit over the past few years. But despite its vision of working toward becoming a world-class leader in the regulation and promotion of aviation has remained firm.
Much of the drama at the LCAA in the past year have centered on the collective bargaining agreement with previous management of the RIA. In 2013, the disgraced former head of the LAA, Ellen Corkrum, entered into the agreement with some employees during the chairmanship of Mr. Musa Bility then chairman of the Board of the LAA.
2016 HIGHS: The LCAA high point was the construction and subsequent dedication of its new modern at the Roberts International Airport (RIA) in Margibi County.
Dubbed as a “symbol of remarkable institution within the aviation industry,” by President Sirleaf, Director General Richlieu Williams says the LCAA headquarters has come a long way since it was relocated from a one room office space at the James Spriggs Field to the RIA.
2016 LOWS: The LCAA has been under fire from rights campaigners who have expressed dismay that both the LAA and the RIA have been reneging on adhering to the collective bargaining agreement signed during the administration of ‘fugitive’ Ellen Corkrum. DG Williams have been adamant and refusing to work with the RIA workers union leadership.
GRADE: C+
2017 OUTLOOK: A lot of stake and interest amid anticipation for new state-of-the-art airport terminal and runway.
LIBERIA REVENUE AUTHORITY
THE LOWDOWN: The LRA which is vested with the authority to: “transparently equitably and fairly administer the assessment and collection of revenues, as well as account for all revenues in Liberia has not been without controversy with many Liberians complaining that all heads are not equal when it comes to collection.
Scepticisms aside, collection has been the LRA’s strength. Up to April 2016 alone, the LRA’s revenue intake for the Department of Customs was US$160.8M compared to a forecast of US$154.4M translating into a year to-date performance of US$ 6.37M above expectation.
According to the LRA, the positive difference was largely on account of revenue generated from the tax line of customs surcharges and other imports duties For the month of April, the revenue Collection from the department was US$15.98M against a forecast of US$16.21M resulting into a gap of US$225K or 1.4%.
The contribution of tax revenue was very important during the period accounting for 98% or US$15.6M of the total intake, while non – tax revenue only accounted for 2% or US$318K representing collection from the exports of woods and mineral products for the extractive sectors.
The total tax expenditure on account of Customs related exemptions as at YTD April 30th FY2015/ 20 16 was US$78.7M of which 93% or US$73.3M was waived on general goods and US$5.3M or 7% was waived on petroleum products.
Under the general goods category, waivers to the Government’s institutions amounted to US$40.8M or 52% whereas the type of items waived to GOL were mainly vehicles and equipment; on the other hand, US$32.6M or 41% was waived to Non-Government institutions.
The items waived to Non GOL institutions are mainly transportation, rice and capital goods. The exemption waived under the petroleum scheme for GOL institutions amounted to US$1.8 M or 3%; while US$3.5M or 4% was waived to Non-Government institutions.
2016 HIGHS: The LRA scored a major victory during the year under review when LoneStarCell Communications Corporation lost a court appeal and has judged liable by the Supreme Court of Liberia to pay an amount of US$2.3 million in tax obligations to the Government of Liberia.
“Accordingly, the appellant is adjudged liable to the Government in tax obligations in the amount of US$2,376,098.78. MTN Liberia, known as LoneStarCell Communications Corporation lost the case in the Tax Court but the company took an appeal against the lower Judge ruling but the Supreme Court of Liberia has judged the company liable and ordered full payment of the amount of US$2,376,098.78.
The ruling marked another big financial blow to MTN after MTN Nigeria was recently fined a hefty $5.2 billion by the Nigeria Communications Commission in which the mobile operator on February 24, 2016 announced the payment of $250 million as advance payment towards the settlement of the proposed penalty through out of court settlement.
2016 LOWS: While the LRA has been receiving a lot of commendations from stakeholders over its aggressive tax regime, the authority has been facing a few demons of its own. In October, the Supreme Court of Liberia mandated the LRA Commissioner General, Elfreda Tamba to re-instate 10 dismissed employees. The LRA boss was taken to task by the employees who accused her of not following the court’s order.
The case follows the plight of some ten employees dismissed in June 2015. They had been transferred from the then Ministry of Finance to the Liberia Revenue Authority (LRA) on claims that they were allegedly involved in corruption while in the employ of the Ministry of Finance. Not satisfied with the antics of the LRA, the ten affected employees through their legal counsel, Cllr. Tiawan Gongloe, filed a writ of prohibition to the Supreme Court Justice-In-Chamber Kabineh Ja’neh against her decision.
The high court Associate Justice Ja’neh ruled in the matter that the dismissed employees were never given any due process and therefore asked the parties to the case to return to a status-quo-ante meaning that the employees should be maintained on the job until the merit of the case is heard and determined.
The LRA has also taken heat over what some say is its unfair tax regime which targets small businesses but allow big businesses to go free. A case in point, several media houses owed thousands of dollars by the government are being hamstring by the LRA and forced to keep their tax clearances current.
But while government have reneged on paying what it owes media institutions, many are short-changed as the clearances, usually given for three months run out without media houses being paid what they owe. The LRA to the detriment of the media continues to demand taxes from media houses even though the same government is delinquent in its payments.
President Sirleaf has also weighed in on the saga, telling FrontPageAfrica in an interview during the year that she concedes that the complaints from businesses about high taxes and the short timeframe for the renewal of tax clearance are all valid.
“That is a valid position and we have looked at it and we are even thinking about extending the period for the tax clearance but the LRA says: ‘look it is a system that is just working so that people get accustomed to paying taxes, and getting their tax clearance and now that they are beginning to get accustomed to it; than we begin to relax it.’
GRADE: B-
2017 OUTLOOK: Many are calling on the LRA to revisit what many believe to be an unfair and unreasonable tax clearance policy. Will the coming year be the one that LRA hear the cry of the disadvantaged?
LIBERIA MARITIME AUTHORITY
THE LOWDOWN: Once regarded as one of the driving forces behind the Liberian economy, the LMA’s stock has plummeted in the past few years. It’s much-heralded Marine Training Institute has fallen off the radar as students trained for the program loiter without making use of the training they got from the program.
The doors have been closed since December 2013 without graduating students who were attending the school, making many to draw conclusions that the institute has failed miserably. FrontPage Africa reported during the year that the Liberia International Shipping Registry had intervened to take over the institute and that LISCR has embarked on the renovation of the LMTI building in Marshall.
2016 HIGHS: The LMA’s dormancy in the past year was ruffled with the departure of former commission Binyah Kesselly, whose contract was not renewed after two stints as commission by President Ellen Johnson-Sirleaf. Commissioner Kesselly informed the President that after eight consecutive years of service as head of the entity, he was moving on to pursue other professional options.
2016 LOWS: The authority’s bad year took a dive during the year under review it embarked on a dismissal spree, laying off over 16 persons. The dismissal follows the layoffs in 2015 of more than 60 employees.
The LMA said in letters to employees that the action was necessary due to financial constraints the entity was faced with, and that it had no option but to lay off some of its employees.
GRADE: F
2017 OUTLOOK: New Commissioner James Kollie has his work cut out in trying to return the authority to the glory days.
NATIONAL PORT AUTHORITY
THE LOWDOWN: One of the key contributors to the national budget in the past few years, the National Port Authority, established by an Act of the National Legislature in 1967 and amended in 1970 as a state-owned corporation to manage, plan, and build all public ports in Liberia, had a fairly smooth year.
All four ports within its network – Freeport of Monrovia, Port of Buchanan, Port of Greenville, and Port of Harper saw considerable improvements during the year under review. The port, dubbed the Gateway to Monrovia, boasts a throughput of more than 2.3 million metric tons and employs more than 250 Liberian and foreign nationals.
Building on its record-setting 7,452,492 metric tons of cargo moved across National Port Authority docks in 2014 in spite of the outbreak of the Ebola, management has recorded a 13% percent higher than the amount of tonnage handled the previous year. Additionally, 76,075 twenty-foot-equivalent units (TEUs) were achieved. This uniform system of port statistics recorded each successive year particularly in 2014 represents impressive progress.
2016 HIGHS: Under the guidance of David Williams, the NPA during the year under review set out with a goal of increasing vessel throughput, improving operational hours and operational efficiency while remaining compliant with the terms of the concession agreement with the APM Terminals which puts the responsibility of installing and maintaining Aids to Navigation in the Freeport on the NPA Management, installed Aids to Navigation which allowed it to increase the operation windows to 24 hours.
This has meant increase employment, improved turnaround time and reduced cost of doing business occasioned by operational efficiency. This is the first time in decades that the Freeport of Monrovia has been able to handle vessels 24 hours around the clock.
Following more than three decades of inattention leading to most internal roads in the Freeport of Monrovia falling into a state of disrepair, management during the year embarked on the construction of rigid pavement, sidewalks, streetlights and drainages on about 2.4 Kilometers of roads outside the APM Terminals Concession area.
When completed, the new roads will minimize traffic hazard and improve traffic flow. This, according to management will improve safety of port users and addressed the perennial flooding within the port during the rainy season. Illumination will also be improved, thereby improving overall security as well.
During the year, the port management in anticipation of future container traffic volume increase and the need to have shared resources in order to reduce cost, embarked on the project to construct a modern office building that will house majority, if not all, of the offices within the port.
The project will free up the present head office land space that could be used to extend the container storage facility as well as centralized all the NPA offices that are currently dispersed around the port in different locations. It will also streamline the business processes and reduced the cost of doing business for port users who will enter one building and remained there until they complete business dealings with the NPA.
In support of GOL policy to encourage private participation in the development of port infrastructure, the NPA is in discussion with Bollore, Africa Logistics and may consider other potential partners and investment alternatives to attract the right partner for the development of the port of Buchanan. Management has made a presentation to the Economic Management Team (EMT) and recently submitted an alternative proposal with at least three investment options, to the EMT for her consideration in order to facilitate further discussions.
Following years of delay, occasioned by late ratification and other related matters, moved with immediate haste this year to execute on the Kuwait Fund by procuring marine crafts and other procurable items under the terms of the Kuwait Fund Loan Agreement with the NPA for the rehabilitation of the Greenville Port. Currently, the vendor, SMIT Lamnalco, has delivered two tugs boats to the port of Greenville and one patrol boat and one pilot boat to the Freeport of Monrovia for onward conveyance to the port of Greenville.
The NPA management also completed contract with the manufacturing of one container forklift which will be shipped to Liberia by mid-January 2017 by the Vendor, Kalmar West Africa. Processes for the procurement of Aids to Navigation, Reachstacker and log loaders are underway and nearing completion. This will mark the first major investment in equipment for the Greenville port since the civil war and it follows the total renovation of the port by the management in 2015.
In furtherance of the GOL policy to invite private capital for the development of the port sector, the NPA management through the Inter Ministerial Concession Committee (IMCC) setup by Her Excellency President Ellen Johnson Sirleaf, have been receiving Expression Of Interest document from potential partners in line with the requirements published in the EOI announcements. The submission deadline was December 5. 2016.
Shortlisted partners will receive a Request For Proposal (RFP) document that they must complete and submit. All evaluations will be carried out by the IMCC assisted by the NPA technicians as is required
The NPA Management undertook the most significant investment yet in the port infrastructure in the port of Harper. Renovation of buildings, installations of fenders and bollards as well as the construction of concrete fence to separate port property from encroaching private properties are all underway and will be completed before the turn of the year. This will not only give the port the necessary facelift but also improved the doing business climate within the port, and possibly attract additional business to the port and therefore, the county economy.
2016 LOWS:
GRADE: A –
2017 OUTLOOK: The NPA management is also overseeing the implementation of the APM Terminals Phase 2 project which includes yard development and the construction of a headquarter office building. The project which is more than 50% complete as of today is expected to be completed and dedicated before mid-next year 2017.
NATIONAL OIL COMPANY OF LIBERIA (NOCAL)
THE LOWDOWN: Liberia’s budding oil program has been in a freefall of late with near bankruptcy, massive layoffs and operational mismanagement chronicling a trail of bad fortune for the once-promising National Oil Company of Liberia. A year ago, the company was in the news for all the wrong reasons at President Sirleaf demanded the retirement of NOCAL’s Chief Executive Officer Dr. Randolph McClain, dismissed three Vice Presidents, and reduced the staff to 50 employees.
The move, according to the President was part of a sustainable action plan to address the financial crisis and make NOCAL more vibrant in developing the country’s hydro Carbon Sector. The company is now currently being managed by an Interim Management Team (IMT) headed by Althea Sherman.
Liberia not known as an oil exploration country, did not have a well-developed upstream oil industry – even prior to the civil war. Hydrocarbon exploration activities started in the late 1960s, but no viable oil and gas discoveries have been made.
Despite promise, Liberia relies heavily on the outside for its refined petroleum products which are imported from neighboring countries since Liberia’s refinery was destroyed during the civil wars more than twenty-five years ago.
Exploration ceased in Liberian waters due to a variety of factors, including political instability.
According to CBL reports, import bills for petroleum products amounted to US$ 351.1 million in 2015, representing about 15.7 percent of total import payments. However, expectations for significant offshore oil discoveries are high, but as yet unproven with the US giant, ExxonMobil in the process of drilling. Today, a number of offshore blocks (LB01-17) some of which have been licensed to multinational oil companies offers promise but very little else.
Liberia granted Chevron approval to acquire interests in three deep-water blocks in 2010. Chevron is the operator of and has a 45 percent interest in Blocks LB-11, LB-12 and LB-14. Working with international and Liberian partners, Chevron Liberia is drilling some of the deep-water wells in Liberia in decades.
In 2015 the National Oil Company of Liberia (NOCAL) concluded negotiations of production sharing contract (PSC) with another international oil and gas exploration company, Kosmos Energy Ltd, for two offshore blocks (LB 6, LB 7). The company had participated in the bid round NOCAL conducted in 2014.
Should there be a commercial discovery in Liberian oil and gas sector, there will be significant opportunity for investment in the supply of goods and services to support further development of the petroleum industry.
The National Oil Company of Liberia (NOCAL) is a state-owned company established in 2000 to “hold all of the rights, titles, and interests” of Liberia in the oil and gas sector. Since NOCAL was founded in 2000, TGS-NOPEC Geophysical Company began the acquisition of 2D seismic data on Liberia’s offshore. Under the existing law, NOCAL is responsible for conducting bid rounds and administering all oil exploration and development agreements.
2016 HIGH: The high point for the cash-strapped oil company during the year under review was the passage of the new petroleum law. The New Petroleum E&P law and the NOCAL Act of 2014 replace the Petroleum E&P Law of 2002 and NOCAL Act of 2002 respectively. President Ellen Johnson Sirleaf approved the laws on October 5, 2016, and it was printed and published on October 10, 2016. The approval, printing, and publication of the laws followed a passage by the Liberian Legislature.
2016 LOWS: NOCAL is still struggling to appease several former employees who continue to face a long wait for severance benefits they are owed. The workers were laid off in September 2015 and the payments were the result of a settlement with the cash-strapped company. In an emailed statement NOCAL Chief Operating Officer Cllr. Althea Sherman said the company cannot afford to make the payments. To date, GOL has not provided any funds to NOCAL for the payment of redundancy or parting benefits to former staff or senior executives.
GRADE: C
2017 OUTLOOK: NOCAL’s Interim Management Team is hoping that the new laws will increase investors’ confidence and lead to more investments that will keep the Liberian basin active despite current global downward trend in exploration activities in the oil & gas industry.
LAND COMMISSION
THE LOWDOWN: The biggest threat to Liberia’s post-war stability has nothing to do with guns, post-war elections or a fragile state but everything to do with the issue of land. Since the end of the civil war, scores of communities in Monrovia and its environs have seen violence erupts over land disputes.
This is why the commission was established by an Act of the Legislature in August 9, 2009, and charged with the mandate to propose, advocate and coordinate land policy, laws and programs in Liberia.
Tasked with work along with other Government agencies to complete draft legislation and activities to facilitate the transition into a new land agency, the commission’s work while commendable appears to fall short on the implementation end of the stick as recommendations upon recommendations appear to be lost in translation. The establishment of the commission illustrates the seriousness the post-war government attaches to the land issues.
Since its establishment, the Commission has made significant progress in fulfilling its key mandate to undertake necessary policy and law reforms as evident by the following: formulation, validation and adoption by the Government and people of Liberia a National Land Rights Policy; the drafting of a Land Rights Act, now before the National Legislature for enactment; the formulation of a draft Land Administration Policy, which among several recommendations will declare Government’s intention to establish a dedicated land agency; and developing policies and drafting laws for Urban Land Use and Land Dispute Resolution, among others.
2016 HIGHS: A major breakthrough in March surfaced as the Senate gave its unanimous endorsement to the draft Bill to set up the Land Authority of Liberia (LAA). The Bill had been before the Senate since 2014 and all hope was almost lost. The Senate’s decision comes after major stakeholder discussions and review of the Bill by key Government actors. The bill has been sitting in the corridors of the lower hose since its submission in April with no light being seen at the end of the tunnel.
The enactment of the law, development experts say, will pave the way for establishing a progressive land reform in Liberia, which recognizes the centrality of land for a majority of Liberians who depend on it for food production and livelihoods.
2016 LOWS: An institutional audit conducted by the USAID Land Governance Support Activity (LGSA) across the country raised a red flag about dangers associated with lingering delays over the passage of the Land Rights Bill. Leadership squabbles in the lower house did very little to ease the roadblocks keeping the bill’s passage in limbo. The delay has prompted developmental experts to expressed fears that the issue could pose serious consequence to development, peace and security. Development experts have concluded that access to land and clearly defined ownership rights is a key pillar to sustaining post-war peace.
GRADE: C
2017 OUTLOOK: It’s a pity that an important piece of legislation is taking this long to win passage in the national legislature. Will this be the year?
LIBERIA TELECOMMUNICATIONS AUTHORITY
THE LOWDOWN: One of the consistently worse performers and wasteful entities in the post-war nation, the Liberia Telecommunications Authority, the regulatory and competition authority charged with the statutory responsibility to ensure a vibrant telecommunications sector in Liberia never seem to change its spot or make any kind of effort to do so.
Veteran Aaron Kollie and manager of PowerTV, aptly summed up the LTA as an incompetent bunch ill-prepared to serve as a regulatory body for radio and television stations.
Mr. Kollie said at the close of a two-day “Media Law and Regulatory Reform Stakeholders Conference in May: “The Liberia Telecommunication Authority, just by its nomenclature as structure, is not effectively positioned, nor qualified–not in terms of academic credentials but as a body to handle such a specialized sector.”
According to him, the LTA has become derelict in its function as broadcast regulator and has instead focused its attention heavily in the telecommunications arena, saying it is only interested in spectrum and registration fees. This, he says, has to be changed.
But change has not been a good practice in governance for the controversial body. The former Chair of the body, Mr. Albert Bropleh, was convicted on three counts after being indicted by the Government of Liberia (GoL) for the crimes of economic sabotage, theft of property and criminal facilitation in the amount of over US$70, 000. During the trial, the government argued that instead of buying cars for the Commissioners that would likely cost less money; Bropleh ordered vehicles from overseas, without displaying any receipt to substantiate how he depleted the accounts of LTA.
Mr. Bropleh’s successors are performing even worse. In March, a FrontPageAfrica investigation found that the authority was auctioning off thousands of dollars’ worth of government-owned items without bidding our the knowledge of the General Services Agency (GSA).
The action follows a February 2014 controversy based on a FrontPageAfrica investigative report which uncovered some wasteful spending by the regulatory agency in the tone of US$1.1 Million dollars over a controversial lease agreement between LTA and a Chinese company, Qinjian International, for a building it intends to secure as an office.
President Sirleaf was forced to intervene after reviewing the lease agreement and noticing that all the required processes were scrupulously followed and observed, The President ordered a freeze on the accounts of the LTA, and suspended the US$1 million lease agreement. The President through an Executive Mansion statement ordered a full investigation into all standing contracts between the Ministry of Public Works and construction companies in the country. But despite the pressure, the LTA remained in the building because they could not find anywhere to move.
It is still unclear today, why the LTA continues to waste thousands on rent when it could construct its own building.
Today, the saga has come full circle with new information reaching FrontPageAfrica suggesting that the US$375,000 building is up for renewal. It is unclear why the LTA has not to date found a new building. The Chinese, according to sources are reportedly only willing to drop US$25,000 from the asking price.
Concerns are also being raised over why are they still in a rented building, no spectrum monitoring machine. They only have three weeks to find a new space with some suggesting that someone may have deliberately delayed in a bid to capitalize on the renewal deal.
2016 HIGHS: The LTA during the year under review mediated two separate complaints filed by Cellcom GSM and Lonestarcell/MTN against each other. In June, the LTA launched an investigation into a complaint submitted by Lonestar MTN alleging Cellcom GSM was deceptively luring Lonestar subscribers through an SMS scheme using Lonestar short codes. The messages, copies of which have been submitted to the LTA, urged Lonestar subscribers to switch to Cellcom’s 3 days special by texting a short code.
Lonestar also alleged that SMS created traffic jams on their network and the practice is in violation of Part VIII of the Telecommunications Act which deals with Interconnections, but Cellcom categorically denied the allegations.
The LTA, however, set up a team co-chaired by Engineering Commissioner Henry Benson and International Gateway Services Commissioner Maria Harrison. Their responsibilities were to ascertain the facts, analyze the evidence and make recommendations to the Board of Commissioners for subsequent action(s) as may be deemed necessary.
On September 2, 2016, LTA launched an investigation into a complaint submitted by Cellcom Telecommunications Inc. alleging LonestarCell MTN’s violations of LTA’s Interconnection regulations, among other things.
Cellcom alleged that Novafone, which was recently acquired by LonestarCell MTN, sent out promotional texts to LonestarCell MTN customers announcing 4 days of free calls for USD1.00. Cellcom also claimed promotional texts were sent to their customers from LonestarCell message center. Earlier this year, LonestarCell MTN made a similar allegation against Cellcom.
In its letter of complaint against LonestarCell, Cellcom demanded the immediate intervention of the LTA, or Cellcom would be compelled to shut down its interconnection trunks with Novafone and LonestarCell.
The LTA took very seriously, any threat to disrupt the telecommunications sector; and issued to Cellcom and LonestarCell, strong warnings against any retaliatory action that could potentially have National Security implications. The LTA requested both companies to submit evidence and/or repudiate the claims against them.
2016 LOWS: The LTA failed to make public the outcomes of these complaints and actions taken against the faulting party. In contrast, the Nigerian telecommunication regulatory body in March 2016 fined MTN Nigeria US$1.1 billion after the GSM Company was found liable of failing to disconnect 5.1 million unregistered SIM cards. Such actions are yet to be seen taking place here in Liberia despite several violations by GSM Companies in Liberia,
GRADE: F
2017 OUTLOOK: Commissioner Angelique Weeks and her team have nothing to show after eight years on the clock. Now that the clock is ticking on their reign, many are hoping the New Year and new blood inject some new energy into a failing regulatory body.
LIBERIA TELECOMMUNICATIONS CORPORATION (LIBTELCO)
THE LOWDOWN: The national operator and sole licensed fixed line telephone provider in Liberia endured a rugged year under review amid question marks a plan to privatise that went caput.
President Sirleaf was forced to intervene and squashed Managing Director Sebastian Muah’s poorly-planned effort to sell the national operator.
The President ‘rejected the deal in its entirety, declaring to aides that it is not in Liberia’s best interest’, effectively killing Libtelco’s plan stone dead.
Muah after an earlier denial later tried to put a positive spin on the deal gone bad, before confirming that his company had agreed a deal to acquire 100% of Novafone for around USD10 million. In a statement at the time he said: ‘The acquisition of 100% of the shares in Novafone means Libtelco can do what it needs to foster its commercialisation and strategies; and it means Novafone will continue to run, but with a new management team and direction.’
He went on to point out that Novafone was considered to be a ‘competitive asset’ that would allow his company to enter the mobile space with national coverage using a core network that has a viable long term lifespan. Muah said that LIBTELCO would invest upwards of US$5 million to build 100 cell sites on the Novafone network, suggesting that it would take up to two years to complete the full integration of the cellco.
2016 HIGHS: Not much has been heard about the much-touted plan by Libtelco following the commissioning of Cataleya to deliver a turnkey solution for interconnection, billing, and session and application management. Cataleya is a wholly owned subsidiary of the Epsilon Global Communications group.
The foundation for the solution will be Cataleya’s Orchid One session and application manager, which will be used to support Libtelco’s migration from legacy TDM infrastructure to IP networking. Phase 1 of the network modernisation was aimed at delivering both domestic and international VoIP services to local enterprises and government and allow international calling from fixed line phones for the first time in Liberia. Phase 2 will support the delivery of Unified Communications as a Service (UCaaS) to Liberia’s growing small and medium businesses (SMBs).
2016 LOWS: Had President Sirleaf not put her thumb down on the failed deal to sell Libtelco to NOVAFONE, Liberia would have been without a national operator. Even LTA boss Angelique Weeks in announcing that the deal was off the table had no explanation as to how or why LIBTELCO came up with such an ill-advice deal. Weeks initially vehemently denied knowing anything about a Lone Star Communication bid to purchase Novafone for US$30 million. “This was totally false and even nonsensical,” she said.
GRADE: F
2017 OUTLOOK: What’ next? Who knows? Perhaps another attempt to sell Libtelco may be in the cards – as is everything else these days at the national operator.
CIVIL SERVICES AGENCY
THE LOWDOWN: At the end of the civil war and ushering in of a post-war government, Liberia faced a daunting task of renewal. But the Sirleaf administration was the first to acknowledge that economic recovery and reconstruction were constrained by a Civil Service that was highly incapacitated.
Thus a reform strategy was engineered with a roadmap aimed a re-inventing the Liberian Civil Service. Two years after taking office, Sirleaf lamented that due to the mediocre performance of the Civil Service, many Liberians had lost confidence in the government to meet their needs.
The CSA was established in 1973 by an Act of the Legislature to increase efficiency in the civil service and also act as the central personnel agency of MACs. It is independent from all other Ministries and Agencies of Government and serves as the central government agency responsible for managing the Civil Service.
2016 HIGHS: During the course of the year under review, the CSA concluded arrangements with a Liberian owned IT consultancy firm, Integrity Consultants, to revise and automate the Civil Service examination administered to Liberians desirous of seeking employment in the public service. The revision and automation is funded through the Public Sector Modernization Project. The Agency administers about 75 different paper-based examinations tailored to specific jobs and positions within the civil service.
According to the agreement, Integrity Consultants will revise and automate all of the exams within the period of ninety days. The company will also develop a proprietary software and provide training for the test administration team at the CSA to ensure continuity and sustainability of the process.
The CSA also completed the 2016 mid-year interactive forum with Human Resource Supervisors and Assistant Ministers representing various Ministries, Agencies and Commissions (MACs). The 2016 mid-year forum is aimed at engaging the relevant government institutions that are piloting the Civil Service Reform Agenda through the Public Sector Modernization Project.
2016 LOWS: Liberians continue to lament the fact that the CSA has not been up to the task in pushing qualify Liberians into the public sector. The government has dedicated a lot of time and effort into the Senior Executive Service (SES) Program which assists in recruiting experienced and qualified professionals with the requisite technical managerial skills for strategic decision making and capacity building for improved public service delivery.
But the program which is administered from the Civil Service Agency with a Program Implementation Committee in place comprising representatives from the donor partners and the Government, appears to be leaving a lot of qualified Liberians on the limb.
GRADE: C
2017 OUTLOOK: Eleven years later, the CSA, according to its Director General, Dr. Puchu Leona Bernard, has become more professional and effective over the years in executing its statutory functions. Many hope this extends over to a public sector reform process that see political appointees fall in line to more qualified applicants.
GENERAL SERVICES AGENCY
THE LOWDOWN: The GSA is the agency of government tasked with the responsibility of providing value for money-asset management services to the Government of Liberia. During the year under review, the agency continued to rebuild its infrastructures to handle a significant increase in GOL vehicle repair service and public building maintenance.
2016 HIGHS: The no-nonsense Mary Broh has been busy holding officials feet to the fire and naming and shaming abusers of government vehicles. Although some have taken the mayor to task for her aggressive stance, the action has given officials repeatedly engaging in such practices to pause.
But Broh has not stopped there. The GSA has issued warnings to abusers that any vehicle caught in this act of being abused will be re- assigned by the General Services Agency.
2016 LOWS: The controversial GSA boss suffered a blur during the year when after several failed arrangements to have the agency settle arrears it allegedly owed the Fawh Building and General Goods Incorporated, in the amount of US$15,205 did not materialize. The money is allegedly due the company for building materials it supplied the GSA.
In the suit, the company alleged that Director Broh allegedly wrote the management on October 9, 2013, requesting it to supply on credit building materials that were needed for the preparation of a high level conference in Zwedru City, Grand Gedeh County.
The court documents further alleged that based upon the agency’s statutory mandate to purchase and procure materials for the construction on behalf of the government, they wasted no time to supply the needed items.
The records also claimed that because of Director Broh’s commitment and integrity after she expressed her entity’s preparedness to repay the debt, the company had no fear supplying the building materials to the GSA.
The GSA has also been forced to address a General Auditing Commission report alleging that it failed to account for one Hundred (100) Ebola vehicles.
In its response, the General Services Agency see this smear campaign as a shock as it is in receipt of an audit report from the Internal Audit Agency in which none of the 382 vehicles reported by the General Services Agency, Ministry of Health and the National Task Force on Ebola is reported missing and of the 134 motorcycles reported, only one was reported stolen in Margibi County.
GRADE: B
2017 OUTLOOK: What will become of “General Broh” Ambitious plan to transform the Palm Grove Cemetery?
PUBLIC PROCUREMENT CONCESSIONS COMMISSION (PPCC)
THE LOWDOWN: The PPCC has oversight responsibility to regulate and monitor all forms of public procurement and concessions practices in Liberia. During period under review, the commission Chief Executive Officer Mr. James Dorbor Jallah, expressed a commitment in working with county authorities to narrow the procurement capacity gaps at county level, so as to enhance effectiveness and efficiency in the conduct of public procurement.
Mr. Jallah has brought a calm but stern presence to the procurement commission and has backed up his vow to fight corruption head-on and bringing to book those who will want to circumvent the procurement law and jeopardize the gains made in the fight against corruption.
“Let this be known that PPCC under my leadership will not cooperate with those who will seek to defraud the system by creating unnecessary emergencies, so as to seek the approval of the Commission to utilize the sole source method of procurement, which is prone to corruption,” he warned.
He declared that the PPCC, under his leadership will accentuate collaboration and coordination but will not tolerate acts of corruption that will undermine the development agenda of Liberia. Mr. Jallah made the assertions on Friday, October 31, 2014 when he officially took over as Executive Director of the Public Procurement and Concessions Commission. The occasion was attended by stakeholders in the fight against corruption including the Liberia Anti-Corruption Commission and Governance Commission.
2016 HIGHS: The Public Procurement and Concessions Commission (PPCC) with support from the UNDP’s Strengthening National Capacities for Development (C4DE) Program has concluded another rounds of the Introductory Certificate in Public Procurement–CIPS Accredited Level 2 training for public procurement practitioners representing government ministries, agencies and county based institutions. The training was conducted in two phases in the Conference Hall of National Elections Commission.
Phase one of the training commenced on Tuesday, June 14, 2016 and ended on Friday, June 17, 2016, while the second phase ran from June 20 to 23, 2016. The training initiative is part of the PPCC’s capacity-building interventions aimed at addressing the human resource constraints faced by many government institutions in the administration of procurement. It seeks to enhance effectiveness and efficiency in the conduct of public procurement.
2016 LOWS: There have been several violations of PPCC laws and the PPCC does monitor whether or not its laws are being followed stringently to ensure that they’re properly adhered to. Most of the corruption cases derive from violation of PPCC laws.
GRADE: A-
2017 OUTLOOK: PPCC must be robust in ensuring that the saga between the National Elections Commission (NEC) and Efficient Logistics Services wherein over US$1 million dollar contract was awarded to a single company does not repeat itself in 2017 as we draw closer to elections.
NATIONAL SOCIAL SECURITY AND WELFARE CORPORATION
THE LOWDOWN: The National Social Security & Welfare Corporation (NASSCORP) is an autonomous public institution charged with implementing three schemes designed to provide social security protections to eligible formal sector workers.
These schemes are: (a) Employment Injury Scheme or EIS which was launched February 1, 1980; (b) National Pension Scheme or NPS which was launched September 1, 1988; and (c) Welfare Scheme or WS which is yet to be launched. These three schemes constitute the Social Security Program in Liberia.
The EIS is a social security program available to all persons working for a registered employer. It is designed to provide cash and material benefits to take care of employees who sustain injuries or become disabled as a result of job-related accidents or occupational diseases.
The NPS is a social security program designed to provide cash benefits to individuals who had to stop working for registered entities as a result of illness or disablement, to elderly persons who can no longer work; and to survivors of deceased insured persons.
2016 HIGHS: The National Social Security & Welfare Corporation, NASSCORP, has allocated a portion of its 2015/2016 Fiscal Budget for the procurement of Diagnostic Imaging & Laboratory Systems for the Establishment of a Medical Diagnostic Center in Liberia. The medical equipment and accessories will be installed in the Medical Diagnostic Laboratory presently under construction in Paynesville. The Center, when completed, will diagnose health problems and provide medical care for Liberians and other nationalities.
The National Social Security & Welfare Corporation now invites sealed bids from eligible and qualified bidders for the supply and installation of the Diagnostic Imaging & Laboratory Systems. Bidding will be conducted through the International Competitive Bidding (ICB) procedures specified in the Public Procurement and Concessions Act of 2010 and are open to all eligible bidders.
Interested and eligible bidders may obtain the standard bidding documents from the Office of the Coordinator, General Services Department at the NASSCORP Complex on 15th Street, Sinkor, Monrovia for a non-refundable fee of US$200.00 beginning Monday, February 1, 2016 from 9:00 a.m. to 4:00 p.m. on working days.
2016 LOWS: NASSCORP has not been able to ensure the instituting of social security payment across various private entities operating in the country. Not many Liberians understand the necessity of paying security.
The inflexibility of the process through which the beneficiaries of pension get their benefits came under heavy criticism by people making claims on NASSCORP. This has stalled public interest in the payment of social security. Buildings constructed by the NASSCORP Village housing project implanted by the National Housing Authority remain unoccupied simply because they’re expensive for ordinary Liberians.
GRADE: B-
2017 OUTLOOK: NASSCORP must be looking forward toward seeing more infrastructural development and the more support to our crumbling health system.
NATIONAL TRANSIT AUTHORITY
THE LOWDOWN: In February 2016, the National Transit Authority launched her feeder road bus service in Monrovia. The launch of the program was in response to President Sirleaf’s request for feeder road bus service to reduce the high demand of transportation on feeder roads. Seven Hyundai County 29 +1 Seater were purchased by NTA through GOL’s subsidy and has been placed on seven routes in Monrovia. In 2016, the National Transit Authority recorded a total of 600,545 passenger trips from our feeder road service operations.
2016 HIGHS: In 2016, NTA operated total of 14 Ikarus buses donated to the Monrovia City Corporation by the Municipality of Istanbul, Turkey. Even though the Ikarus buses posed particular challenge to the Authority, they boosted up our nation-wide ridership and created particular opportunities for commuters in Monrovia and its suburbs. In 2016, Management recorded a total of 527,771 passenger trips from these buses.
It provided efficient, effective, systematic and affordable public transportation in several parts of Liberia. Our public transportation service covered nine counties, namely: Bomi, Bong, Grand Bassa, Grand Cape Mount, Grand Gedeh, Lofa, Margibi, Montserrado, and Nimba counties. In the rationing of buses per route, Monrovia received the highest number of buses (40) as this represents 73% of the total number operational buses routed in 2016.
Thus, our nationwide ridership amounts to 4,175,064 passenger trips in nine counties. This consists of three categories, namely: regular riders—4,122,568; discount riders—45,142; and free riders—7,354. The ridership in 2016 represents 22.8% increment in NTA ridership when compared with 2015 which recorded a total of 3,223,078. The increase in passenger trips recorded in 2016 was due to the operationalization of additional 14 Ikarus and 7 feeder road buses in 2016.
In order address the fiscal problems plaguing many government entities in Liberia, President Ellen Johnson Sirleaf commissioned our Management to explode opportunities of promoting Public Private Partnership for NTA. In a PPP transaction, a private equity investor is expected to make a large up-front payment to operate public transportation service and expand public transport modes and infrastructures — often for hundreds of millions of dollars. In return, the investor is expected gain a concession to operate the service under a contract that may last for decades.
2016 LOWS: In 2016, the National Transit Authority received from the GOL a core budget of US$2.1 million. However, GOL did not appropriate subsidy for the Management (salaries, fuel & lubricants, spare parts, etc.) of 14 Turkish buses projected earlier in NTA 2015/2016 budget. As a result of the additional cost to operate these buses, Management was constraint to suspend spending in order areas and rely on internal revenue from mass transit operations.
The rapid response of mechanics to breakdowns in Monrovia has been greatly impeded due to huge traffic congestion in Monrovia, especially along the Somalia Drive Road.
In addition to Ecobank restructured debt payment, Management continues to make payment for debts and received claims of debt owed to vendors through court orders or from the vendors. In 2016, Management paid US$100,000 through GOL subsidy to Ecobank to offset the high interest rate and restructured the loan repayment. Furthermore, NTA made payment of 47,891.22 to Royal Security& Consultancy Services and received claims reform Cactus Motor and GMAPS.
In 2016, Management experienced huge decline in internal revenue’s generation. Factors accounting for the decline in revenue included continuous breakdown eight Ikarus buses, increased competition from commercial transportation, traffic congestion (especially on the Somalia Drive Road) and suspension of major routes (Zwedru and Lofa) due to poor road conditions.
GRADE: B
2017 OUTLOOK: Looking forward to seeing more seeing rapid response of mechanics to breakdowns in Monrovia and on the highways.