Liberia’s efforts to stabilize and expand its electricity supply are at risk following a warning from Ivory Coast that it will cut off power if the outstanding debt is not settled.
The Compagnie Ivoirienne d’Electricité (CIE), Ivory Coast’s electricity provider, has informed the Liberia Electricity Corporation (LEC) that the debt has reached a staggering US$19,691,647 as of June 2024.
The Ivorian company, grappling with its own financial strain due to rising generation costs, has deemed the debt unsustainable.
In a letter dated August 26, 2024, CIE expressed frustration over LEC’s non-compliance with a previously agreed payment plan.
CIE warned that without a response within fifteen days, it would be forced to suspend electricity supply to Liberia as stipulated in the Power Sale Agreement.
The letter noted, “During our last collection visit in February 2024, you informed us of a new clearance plan. To date, this plan has not been complied with, and no payments have been made since the start of the period covered by the plan.”
In a bid to avert the crisis, LEC has urgently appealed to the Ministry of Finance to release funds. LEC CEO Monie Captan, in a letter dated September 3, 2024, highlighted the urgency of the situation.
Captan noted that despite a budget allocation of $3 million for debt repayment, the government’s failure to disburse the funds has left LEC unable to meet its obligations.
He requested an immediate release of US$2,054,368.80 to cover payments for January to September 2024 and additional funds to address the outstanding debt.
Liberia, along with Sierra Leone and Guinea, benefits significantly from the CLSG power line, which enables these countries to import electricity from Ivory Coast.
The CLSG project has been vital in improving electricity access in Liberia, where high fuel costs and unreliable systems have historically hindered power supply.
President Boakai’s recent visit to Ivory Coast aimed to secure an expansion of the electricity grid, but the potential disconnection of the CLSG line poses a severe threat to the country’s energy sector.
Currently, Liberia’s electricity supply is relatively stable due to the rainy season, but the impending end of the rainy season raises concerns.
If the CLSG power supply is cut off, the country could face severe power shortages, especially during the dry season when water levels at the Mount Coffee Hydro Plant drop.
The loss of this critical power source could severely impact Liberia’s energy sector and disrupt ongoing efforts to improve electricity availability across the country.
