The Energy Project comprises four interconnected activities to support the Liberia Electricity Corporation and the Ministry of Lands, Mines and Energy:
(I.) Mt. Coffee Rehabilitation
The Mt. Coffee Rehabilitation Activity aims to increase the amount of electricity generated in Liberia, facilitate a decrease in the overall electricity tariff and contribute to increased reliability and adequacy of electricity.
MCC assumes the Government’s financial contribution for the rehabilitation and will in addition support the following:
(A) The expected additional cost required to provide a total installed generation capacity of up to 88 MW;
(B) Cover unfunded gaps between existing stakeholder commitments and a total cost to complete the rehabilitation of MCHPP in an amount not to exceed $357 million;
(C) Cover the cost of a second 66 kV transmission line from MCHPP to the Paynesville substation;
(D) Cover the cost of rehabilitating the raw water intake at MCHPP from the power house to the MCHPP site boundary; and
(E) Costs related to the establishment of certain dispute adjudication boards.
(II) Mt. Coffee Support Activity.
The Mt. Coffee Support Activity aims to provide additional support to the Mt. Coffee Rehabilitation Activity to mitigate environmental and social risks and ensure long-term sustainability that were not addressed under the pre-existing contract structures.
MCC Funding will support:
(A) the provision of small-scale community infrastructure and related technical assistance (foot bridges, water points, pit latrines, etc.) for project affected persons (“PAPs”) to address resettlement impacts and help ensure that the local communities affected most directly by the Mt. Coffee Rehabilitation Activity will experience benefits from such Activity;
(B) Additional human resources support to LEC, including the PIU, to ensure timely and professional management, oversight and reporting of environmental and social impacts and risks;
(C) A watershed management plan (including climate change and fisheries studies); and
(D) Rehabilitation of the raw water transmission line from MCHPP to the White Plains Water Treatment Works.
(iii) LEC Training Center Activity.
The LEC Training Center Activity aims to build LEC’s technical, operational, financial, and administrative capacity. The training center to be established (the “LEC Training Center”) will form the core base for training of technicians in the electricity sector.
MCC Funding will support:
(A) Construction of, and provision of equipment and training materials for, the LEC Training Center;
(B) Development of a training curriculum, in the following core areas:
(1) Transmission and distribution,
(4) hydro-electric and
(5) Other specialized training; and
(C) Training for the director, instructors, and support staff of the LEC Training Center, who will be hired as employees of LEC.
(iv) Energy Sector Reform Activity. The Energy Sector Reform Activity aims to provide support to the key institutions responsible for policy making, investment planning, asset management, and environmental and social oversight of the sector – namely MLME, LEC, and the Environmental Protection Agency (“EPA”)
The Roads Project comprises two interconnected activities to (1) build a foundation for national road maintenance planning and execution and (2) build capacity within the sector.
1. National Road Maintenance Activity.
The National Road Maintenance Activity aims to:
a. Pilot and construct at least two regional maintenance centers (“RMC”),
b. Provide data collection equipment,
c. Lab equipment and vehicles to the RMCs,
d. Match Government contributions to a road fund in an effort to better maintain and sustain Liberia’s paved roads and increase institutional capacity in the sector.
(B) Sector Reform/Institutional Strengthening/Capacity Building
(1) Providing capacity building related to the Axle Load Control Law,
(2) Strengthening the administrative and operational framework of the Road Fund,
(3) Training and support in transportation planning methods,
(4) Assisting in the development of a five year transportation asset management plan for Liberia,
(5) Aiding urban transportation planning in Monrovia, and
(6) Reviewing existing policies concerning road safety and developing a set of recommendations and framework of implementation...Read More
Environmental and Social Performance
Environmental and Social Mitigation Measures
Institutional Strengthening for the Environmental Protection Agency Sub-Activity.
This Sub-Activity aims to enhance the capacity of the EPA to better manage its core functions, including environmental licensing/permitting, review and approval of environmental and social impact assessments (“ESIA”), Environmental and social management plans (“ESMP”) and Resettlement action plans (“RAP”), and Monitoring and oversight of environmental and social impacts and risks in both the electricity and road sectors.
The Roads Project is a Category C project because it is expected to have limited adverse environmental and social impacts that can be readily addressed through mitigation measures.
For the National Maintenance Activity, MCC Funding will be used to conduct site-specific environmental audits and/or environmental and social impact assessments (which will include environmental and social management plans) and resettlement action plans during the project design phase. The results of those audits will form the basis of site-specific ESIAs and/or ESMPs, and RAPs, as appropriate.
Gender and Social Inclusion
Social inclusion and gender integration under the Energy Sector Reform Activity are directed at strengthening socially inclusive and gender responsive planning and implementation capacity of MLME and LEC. The Government will establish and support staff salaries at dedicated social inclusion and gender focused units within the respective entities.
Social inclusion and gender integration under the Road Sector Reform Activity are directed at strengthening socially inclusive and gender responsive planning and implementation capacity of the Ministry of Public Works (“MPW”) and the Ministry of Transportation (“MoT”).
Policy, Legal and Regulatory Reforms
Government will pass an electricity law that incorporates the development of a regulatory unit followed by the creation of an independent regulatory agency over a three year period;
The Government will pass legislation establishing the Road Fund and the Road Fund Administration as a stand-alone legal entity; and
The Government will pass the Axle Load Control Law.
The Government may engage one or more entities of the Government to implement and carry out any Project or Activity (or a component thereof) under this Compact (each, an “Implementing Entity”).
The Government will engage a fiscal agent (a “Fiscal Agent”), which will be responsible for assisting the Government with its fiscal management and assuring appropriate fiscal accountability of MCC Funding. The Fiscal Agent works under the supervision of the MCA-Liberia Director of Finance and Administration.
The Government will engage one or more procurement agents (collectively, the “Procurement Agent”) to carry out and certify specified procurement activities in furtherance of this Compact. The Procurement Agent works under the supervision of the MCA-Liberia Director of Procurement ...Read More