By Grace Q. Bryant
The Chief Executive Officer (CEO) of the Liberia Electricity Corporation (LEC), Monie Captan, has disclosed that the Government of Liberia owes the corporation an overwhelming US$18.9 million as of October 2024.
This debt, representing 14% of LEC’s total energy consumption, is a significant challenge to the utility’s operations and service delivery.
Speaking at a press conference on November 27, Captan, whose tenure ends on November 30 reflected on his leadership, highlighting key achievements while underscoring the urgency of resolving the government’s financial obligations.
The Liberian government is LEC’s largest consumer, accounting for approximately 14% of energy consumed. Captan emphasized that the $18.9 million debt has strained LEC’s financial capacity to maintain the national grid and pay for critical energy inputs.
To address the issue, LEC’s management, in collaboration with the Ministries of Mines and Energy and Finance and Development Planning, has proposed prepayment metering for all government institutions. “This reform, starting with the 2025 budget cycle, will ensure accountability and steady revenue streams.”
“The government’s payment of energy bills is crucial to maintaining our electrical network and enhancing service delivery for all Liberians,” Captan emphasized.
However, Captan noted that rising costs of energy supply, coupled with government arrears, continue to strain LEC’s financial health. Despite this, the corporation’s annual losses have dropped from US$27.2 million in 2022 to an expected US$11 million by December 2024, with a breakeven target set for 2026.
According to him, under him leadership, LEC expanded its customer base by 53.6%, growing from 199,000 connections in 2022 to 306,000 as of October 2024.
“This increase was driven by donor-supported projects, such as the Gap Communities Electrification Project which connected nearly 10,000 households across 19 underserved communities at a cost of $5.2 million”, he disclosed.
Other ongoing initiatives aim to connect an additional 7,000 households in 15 communities, as LEC prioritizes extending access to previously unserved areas.
Captan emphasized that LEC has made notable strides in operational efficiency and financial performance: Energy Supply Increased by 88.79%, from 275,426 megawatt-hours in 2022 to a projected 520,000 megawatt-hours by year-end 2024.
While Revenue Growth: Surged 183%, from $24 million in 2022 to a projected $66 million by December 2024 and commercial Loss Reduction declined from 41.3% in 2022 to 27.5% by October 2024, thanks to anti-theft initiatives and improved metering.
Captan’s tenure also oversaw critical infrastructure improvements, including: restoring damaged thermal generators in Buchanan, adding 28 megawatts of capacity at a cost of $2 million and securing a 27-megawatt power purchase agreement with Côte d’Ivoire in 2022.
“Expanding the grid with 92 kilometers of high-voltage, 138 kilometers of medium-voltage, and 350 kilometers of low-voltage lines,” he added.
He disclosed that LEC commissioned a transformer repair workshop to address frequent outages caused by overloading, significantly reducing response times.
LEC is advancing its renewable energy initiatives, with several projects underway including the Mount Coffee Hydropower Plant Repairs to its damaged turbine will restore full capacity to 88 megawatts and Solar Expansion A 20-megawatt solar plant at Mount Coffee is set for completion in 2025, with plans to scale up to 30 megawatts.
He revealed that Liberia has been recognized as one of 15 African countries to develop an energy compact under the World Bank and African Development Bank partnership.
He noted that LEC revenue surged from $24 million in 2022 to an expected $56 million by October 2024. Commercial losses decreased from 41.3% in 2022 to 27.5% in 2024.
“Through donor support, LEC added 13 major substations, 92 km of high voltage lines, and over 350 km of low-voltage lines. The expansion of the grid has significantly increased access to electricity,”
He furthered that LEC has initiated projects to diversify energy sources, including a $60 million solar plant at Mount Coffee, a 20 MW solar project set to complete by 2025, and a new hydro dam with 150-200 MW capacity. Negotiations are also ongoing for additional energy supply agreements with CIE and Ghana.
“LEC’s financial position has improved, reducing debt losses from $27.2 million in 2022 to a projected $11 million by 2024. However, energy supply costs have risen due to an increase in thermal generation and grid expansion,”
He explained that LEC has focused on enhancing the capacity of its workforce, with over 50% of employees benefiting from training programs. This includes a gender-inclusive effort supported by USAID, which trained 19 female technicians and engineers.
LEC is focused on further infrastructure development, including a new control system (SCADA) and a transformer repair workshop, alongside ongoing efforts to improve customer service through more accessible outlets and quicker responses to complaints.
He added that President Boakai will present Liberia’s compact at a summit in January 2025, reflecting LEC’s progress under Captan’s leadership.
Despite these achievements, Captan acknowledged ongoing challenges, including managing LEC’s debt, securing fuel for the dry season, and maintaining energy import agreements with Côte d’Ivoire and Ghana.
As he steps down, Captan expressed confidence in the capacity of LEC’s management team to sustain the progress made.
“The journey ahead is not without its challenges, but the opportunities for Liberia’s energy sector are immense,” Captan concluded.
