By Grace Q. Bryant
The Liberian Petroleum Refining Company (LPRC) says it has renegotiated a contentious loan originally initiated by the immediate past administration under the former Managing Director, Marie Urey Coleman.
Managing Director Amos Tweh made the disclosure at the Capitol Hill yesterday when he said under the guidance of the current management, the interest rate on the $7.5 million loan from Eco Bank was successfully reduced from 11% to 9%, saving the government $450,000.
“We thought that the idea, the conceptual framework to contract the loan, was very necessary. To do so, with the objective, one, to increase Liberia’s petroleum strategic reserve, and two, to increase our storage capacity,” the Managing Director of LPRC explained.
The LPRC boss clarified that while the loan was first negotiated by his predecessor, the current administration made significant improvements to the terms.
“When we saw the loan, it was on the high side, like I said, 11% interest rate for $7.5 million. We thought to renegotiate aspects of that loan agreement and succeeded in reducing the interest rate from 11% to 9%, saving the government $450, 000,” Tweh told the lawmakers.
The revised agreement also included the construction of a state-of-the-art laboratory for testing petroleum products, valued at up to $1 million, at no additional cost to the government.
Tweh added, “We succeeded in including the construction of a state-of-the-art laboratory for testing petroleum products in the Republic of Liberia, at no additional cost to the government. Ordinarily, it would cost around $800,000 to almost $1 million to construct a model lab based on control specifications and requirements.”
The Managing Director emphasized the critical need for increased storage capacity, revealing that the lack of infrastructure had forced Liberia to turn down multiple petroleum supply offers noting, “As I speak to you, Honorable Speaker, just yesterday we turned down about three requests for suppliers to bring in petroleum products in Liberia because we don’t have the capacity.”
The new storage tank with a capacity of 17,000 cubic meters, is anticipated to address these deficiencies and prevent future shortages. “The idea to build an additional tank is a very good idea and aligns with the agenda of this government,” the Director noted.
The expansion is projected to boost LPRC’s revenue and contribute significantly to the national budget, stating, “The construction of the tank is going to increase LPRC’s revenue, and it will position us to be able to increase our contribution to the national budget.
The Director said, “It’s also going to make the government of Liberia raise additional revenue in seal tax, reform, and import levies.”
The strategic investment is expected to start yielding returns within 14 months, positioning Liberia for enhanced economic development while he said, “We believe this investment is very strategic and it’s going to have a very fast turnaround. Within the space of 14 months after the construction of this contract, we are going to start generating additional revenue in the interest of the people of Liberia and for development purposes.”
