By Mark N. Mengonfia
In less than 72 hours, the House of Representatives last week passed the Eton and EBOMAF loan financing agreements to borrow nearly one billion United States dollars to build roads and other infrastructures across Liberia.
Last Tuesday June 5, 2018, the House unanimously voted to approve US$ 536,400 million for coastal highway pavement from the Eton private company in Singapore. And in many hours later, they gave their approval to borrow US$420.810 million the EBOMAF company owned by the Burkina Faso millionaire businessman who had given his private jet for President George Weah to use.
The US$ 420.810.000 loan agreement between the EBOMAF SA (Headquarters in Ouagadougou) and the government of Liberia as well received unanimous votes as it was done with the 536,400.000.00 for the coastal road project loan.
The US$ 420.810.000 loan agreement between the EBOMAF SA (Headquarters in Ouagadougou) and the government of Liberia instrument was submitted to the House of Rep. on Tuesday, June 5, 2018 by the President of Liberia, George M. Weah seeking for approval as soon as possible.
The plenary of the House of Representatives in it wisdom forwarded the instrument to its Joint Legislative Committee on Ways, Means and Finance to investigate the loan agreement sources and report to the plenary which is the highest decision making body of the House of representatives.
The Joint Legislative Committee on Ways, Means and Finance headed by Thomas Fallah said in its report said that they have done sufficient investigations on the loan thus calling on their colleagues to approve it.
Rep. Fallah making the committee’s presentation to the plenary indicated that ratification of the loan will said that the loan is intended to construct and provide 256.2km flexible road pavement corridors in Monrovia Somalia drive, Kesselly Boulevard to Sinker 16 km and the Northeastern Liberia covering Tappita, Zwedru Road 112 km and as well as the Toe Town to Ivory Coast 10.2km and Zwedru to Greenville 185.5 km of roads.
The Committee said that it will take three years or 36 months from the day of commencement which is three months after the deposit of the first trench of the loan.
It said the loans will attract more investors which he said will stimulate economic activities in communities directly affected, will seek to address Liberia’s infrastructure development challenges, specifically road network.
The lawmakers said problem is a threat to national security and the projects would reduce the social and economic hardships being faced by Liberians.
The committee justified that the financing agreement will increase investment opportunities, job creation, and potential revenue stream of the nation’s economy.
The loan according to the committee when ratified it will help boost development of the health, agriculture, and educational sectors of Liberia.
“The financing contract is in consistent with the legal confine and meets of all of the legal requirements of our laws, in keeping with all the legal framework, the financing loan contract risks no menace in the ability of the Liberian government to effectively generate revenue in the future to repay our loan such a huge capital infrastructure investment when ratified”.
They additionally justified that the US$ 420.810.000 loan agreement between the EBOMAF SA (Headquarters in Ouagadougou) and the government of Liberia will also promote government de-centralization policy by ensuring effective delivery of goods and services across the geographical landscape of Liberia thus alleviating macroeconomic imbalances.
The Thomas Fallah headed Joint Committee said “ the term and conditions of the loan agreement has favorable benefits if the projected loan earmarked to finance the design, construction and supervision of the Northeastern corridors-roads pavement is honestly accountable for its intended purpose which seeks to provide employment opportunities, build our infrastructure, and drive the agenda of our government in keeping with the wishes and aspirations of the Liberian people”.
Since the issue of the loan agreement came about, it has received lots of criticisms from the public on grounds that the Weah led government is requesting for too many loans in just months of being in leadership of the country.
The two instruments have been send to the Liberian Senate for their onwards approval.
The Liberian Senate has set today, June 8, 2018 as the day for a Special Legislative Session to decide on the loan agreements.