By E. J. Nathaniel Daygbor in Monrovia
The Lower House of Parliament of Liberia Tuesday’s session voted to concurred with the Liberian Senate on the ratification of the controversial US$59.1 million loan agreement between the Liberian government and the East International Construction company.
The House voted overwhelmingly with 20 votes for the concurrence, while the Liberian Senate recently passed the agreement has been greeted with public outcry. Civil Society Organizations and activists described agreement as “bad law” and claimed it will unnecessarily tie new government following October to a huge debt.
House Plenary’s decision followed a report from its committee on Ways, Means, and Finance, headed by Rep. Prince Moye of Bong County.
Montserrado County Rep. Julius Berrian filed a motion that was unanimously endorsed by plenary session. “I Move if I can be seconded that this report (pre-financing Agreement) be received and fully endorse its entirety,” the motion to endorse said.
The pre-financing agreement passed into law is intended for the pavement of 24.5km of existing secondary roads from Klay to DC Clarke in Bomi County and 51km of selected neighborhood/community roads in Monrovia and its environs.
In the financing agreement, the East International Group Incorporated, which won the National Competitive Bidding, agreed to procure on behalf of the Liberian government “for the purpose of implementing the project, an external loan in an amount not to (exceed) US$59,567,019.09 on the terms and conditions set forth or referred to in the agreement.”
According to the agreement, the repayment of the financing amount disbursed in the amount of US$19,905,537.39 for the 24.5km Klay to DC Clarke road pavement shall begin and be paid in seven equal amounts over a period of seven calendar years. The payment begins within twelve calendar months of the first disbursement of the financing, based upon the project landmark disbursements received by the contractors.
The repayment conditions apply to the financing disbursement of US$39,661,473.51 for the pavement of 51km of selected neighborhood/community roads in Monrovia and its environs.
“In view of the conformity of the proposed agreement between the Government of Liberia and East International Group, Inc. to the overall developmental agenda of the country to improve existing road networks in various communities and give access to health, educational, economic and other crucial facilities, and in respect of the collaboration between the company and Qingjian International in Liberia Development Company Ltd (CNQC) to provide additional financial and technical support to the company to successfully implement the project, the Joint Committee hereby recommends to the plenary of the Liberian Senate to approve the ratification of the proposed Pre-financing Agreement, as attached,” the document.
