By Crispina Taylor
Parliament in Sierra Leone on Tuesday approved an 83 million Euros agreement for the construction of a power transmission line that will improve electricity generation in four West African countries, including Sierra Leone.
Parliament made the approval about three years after it ratified a treaty for interconnection between Cote d’Ivoire, Liberia, Sierra Leone and Guinea. The project, otherwise referred to as ‘The West African Power Pool, (WAPP)’, primarily aims at improving electricity generation and transmission in the sub-region. It will involve the installation of 1, 360 km kv transmission line from Man in Cote d’Ivoire to Linsan in Guinea.
The line will pass through Yekepa, Buchanan and Mano in Liberia and Nzerekore in Guinea. In Sierra Leone, it will pass through Kenema, Bikongor, Bumbuna, Yiben and Kamakwie.
Addressing parliament, Sierra Leone’s Deputy Minister of Finance, Foday Mansaray, explained that the total amount needed for the project was 323 million Euros. Out of that amount, he revealed, the country would pay 110 million Euros.
The deputy minister explained further that the European Investment Bank (EIB) and the African Development Bank (ADB) had already granted the country loans of 75 million Euros and 31 million Euros, respectively, leaving an outstanding amount of 4 million Euros for the government to pay.
However, the deputy finance minister revealed that the EIB loan was going to be on-lend to TRANSCO CLSG, the company responsible for the construction and management of the transmission line. He said the board and management of TRANSCO were already set.
Although government was the primary borrower of the EIB funds, Mansaray stated, the burden of payment would be shifted to TRANSCO through the On-Lending Agreement in order to utilize the proceeds from the management of the transmission line.
“Thus, the payment of the loan, plus interest, would be moved, thereby absolving the government from any debt service obligations,” he said, adding that the agreement had already been cleared by the country’s Attorney General.
“Once completed, the project will benefit the government in the provision of 27 mega watts of energy from Cote d’Ivoire and the people of Sierra Leone will benefit from reduced tariff charges,” the minister assured parliament. He said the country would also boast of “state-of-the-art T&D infrastructure” within her jurisdiction, amongst other things.
© Politico 19/02/15
