A. Energy Sector
The Energy Project comprises four interconnected activities to support the Liberia Electricity Corporation and the Ministry of Lands, Mines and Energy:
(1) 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.
(2) 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.
(3) 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.
(4) 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”).