President Sirleaf, in a communication to the legislature on Tuesday, said the purpose of the loan agreement is to generate financing for the rehabilitation of the Gbarnga-Salayea road.

Proceeds of the loan, according to President Sirleaf, would supplement amounts being requested from other financing institutions to develop and pave the existing gravel road of around 81 kilometres that connects Bong and Lofa Counties as well as to improve accessibility and reduce travel costs for residents of the affected counties.

The Liberian leader noted that the government shall pay interest at the rate of one percent per annum on the principal amount of the loan withdrawn and outstanding.

She said interest and other eventual charges shall be paid semi-annually, while the date of payments will be fixed on the basis of the first day of the month following the first withdrawal from the loan account.

President Sirleaf noted that government shall repay the principal amount of the loan in 40 semi-annual installments as contained in the agreement after a grace period of ten years, which is to be calculated from the first day of the month following the first withdrawal from the loan account.

President Sirleaf is, meanwhile, seeking the indulgence of the legislature to ratify the agreement, considering the nation's urgent need to develop, expand and integrate Liberia's road networks, thereby reducing travel time and cost.

It can be recalled that President Ellen Sirleaf on March 10 submitted to the Legislature for ratification a US$20 million loan agreement between the Government of Liberia and OPEC Fund for International Development (OFID).

The loan agreement, according to the Liberian leader, which was created by the Ministry of Finance and Development Planning, was also intended to generate partial financing for the upgrading of the Gbarnga-Salayea road.
LINA WSG/TSS/PTK