By: Ecofin Agency

Liberia and the World Bank have signed a $57 million financing agreement to support the RESPITE project, which aims to strengthen the country's energy sector, according to a statement issued by Liberia's Ministry of Finance and Development Planning on June 5.

The financing will strengthen renewable energy infrastructure. The project will modernize the Mount Coffee hydropower plant, increase the capacity of the national solar park to 30 megawatts from 20 megawatts, and install battery storage systems to improve the reliability of electricity supply.

The funding will also expand access to affordable electricity, support businesses, and improve living conditions for thousands of Liberian households, Finance and Development Planning Minister Augustine Kpehe Ngafuan said.

Meanwhile, Liberia and its partners concluded two additional financing agreements. The first agreement allocates $50 million to the second phase of the West Africa Regional Digital Integration Program (WARDIP 2), a regional initiative that seeks to expand broadband access and strengthen digital connectivity in Liberia.

“This project will improve cybersecurity, support digital governance, promote innovation and entrepreneurship, and create opportunities for e-commerce and digital payment systems,” the ministry said in the statement.

The second agreement provides $18 million for the South-Eastern Corridor Road Asset Management Project (SECRAMP), which will finance the completion of road works along the strategic Ganta-Tappita corridor.

Energy Sector Transformation Continues Despite Challenges

Liberia's energy sector continues to undergo significant transformation. However, the country still faces high electricity costs, infrastructure deficits, governance challenges, and a limited installed generation capacity of 126 megawatts.

According to data from the National Energy Compact for Liberia, only 32.7% of the population currently has access to electricity. Grid connections account for 25 percentage points of that figure, while off-grid solutions account for 7.7 percentage points.

Against this backdrop, the Liberian government has committed to accelerating access to reliable and sustainable energy in order to stimulate economic growth, reduce poverty, and improve living standards, particularly in rural areas.

The government plans to connect 100,000 households annually, compared with approximately 70,000 currently. Authorities expect that effort to increase the national electrification rate to at least 75% by 2030.

Liberia also plans to develop a national clean cooking strategy and increase the share of renewable energy in its electricity mix to 75%, up from 67% currently. At the same time, the country intends to expand its power generation capacity by 150%.

The government also aims to create a more attractive environment for private-sector participation in the energy industry and mobilize $150 million in private investment. Furthermore, Liberia possesses one of the most underutilized hydropower resources in West Africa. The 88-megawatt Mount Coffee hydropower plant already supplies nearly 70% of the country's electricity, underscoring the central role of hydropower in Liberia's energy system.