His Excellency, Joseph Nyumah Boakai, President of the Republic of Liberia,
His Excellency, Jeremiah Koung, Vice President, Senior members of Government, our international donor partners, the peace-loving people of Liberia, our valued customers, and members of the Fourth Estate,
On behalf of the Board of Directors, the Interim Management Team, the Senior Management Team, and the entire staff of the Liberia Electricity Corporation (LEC), I extend warm greetings and best wishes to all Liberians for a happy and prosperous New Year 2025.
As we usher in this new year, I would like to take this opportunity to reflect on significant developments within the leadership of LEC. On November 29, 2024, His Excellency Joseph Nyumah Boakai, President of the Republic of Liberia, appointed an Interim Management Team to lead the affairs of the Liberia Electricity Corporation. This transition followed the expiration of contracts for the former CEO, Mr. Monie Captan, and COO, Mr. Kwame Kpekpena.
I am honored to be appointed as the Interim Managing Director, with the following distinguished professional teammates:
- Mr. Eric Augustine Fredericks: as Interim Deputy Managing Director for Administration,
- Mr. Dele I. Shobayo: as Interim Deputy Managing Director for Technical Services, and
- Mr. Emile G. Karnga: as Interim Deputy Managing Director for Operations
These appointments are a deliberate attempt to realign the management of LEC with statutory requirements while leveraging on best practices to achieve operational excellence, sustainability and growth in Liberia’s energy sector. It further positions the Corporation in good stead to respond to the pressing needs of sustainable energy supply and distribution, and commercial viability, while enhancing transparency, accountability in all its operations.
As we continue to steer the affairs of the Corporation, we reaffirm our unwavering commitment to addressing the critical challenges of sustainable energy supply and distribution.
Today marks 42 days since the Interim Management Team assumed leadership of this corporation. As a public utility, we firmly believe that accountability transparency, and responsiveness in our operations are essential to the collective growth and development of Liberia’s energy sector. To uphold this commitment, we are dedicated to keeping the public informed about key initiatives and developments undertaken in the national interest and in alignment with the ARREST Agenda.
This press conference has been convened to brief the public on critical matters, share the challenges we have encountered, and highlight the progress made since we assumed responsibility for the corporation’s operations.
Upon taking office, we initiated a comprehensive review of the handover notes provided by the previous management. This review was aimed to critically evaluate existing practices, refine ongoing initiatives, and introduce new strategies to proactively enhance the corporation’s effectiveness and efficiency in providing service to its customers.
To drive meaningful improvements across all facets of the Corporation’s operations and establish the energy sector as a cornerstone of Liberia’s development, the Interim Management Team has launched a tripartite review which is aimed at assessing and optimizing three critical operational areas of the corporation:
- Governance and Financial Processes: This component focuses on strengthening the corporation's financial management systems, refining business workflows, and reinforcing governance structures to ensure transparency, accountability, and operational efficiency. To strengthen corporate governance, the Interim Management Team has, for the first time in the history of LEC, initiated the establishment of the Governance, Risk, and Compliance (GRC) Framework. The establishment of this framework will ensure alignment with strategic governance objectives, effective risk management, and adherence to compliance standards. The management has engaged the Internal Audit Agency (IAA) to conduct a comprehensive audit of LEC's financial and system processes. This initiative aims to ensure that our workflows align with best practices in financial management.
- Commercial and Technical Efficiencies: This aimed at enhancing revenue generation and protection, this area emphasizes improving customer service, optimizing technical performance, and implementing robust mechanisms to ensure commercial viability and operational efficiency
- Energy Supply: This was focused on increasing the volume of energy imported through the WAPP while simultaneously exploring options for increasing local energy generation. Further enhancements include assessing upgrade requirements for transmission and distribution infrastructure as well as assessing grid reliability, and the availability of energy services to effectively meet consumer demand, especially during critical period of the dry season.
These assessments lay the foundation for strategic reforms aimed at enhancing LEC’s capacity to provide reliable and sustainable electricity to the people of Liberia. The corresponding recommendations have been submitted, and several operational adjustments are currently being implemented. These initiatives are focused on improving performance and aligning the corporation’s operations with its strategic objectives, enhancing service delivery and operational efficiency.
As the Interim Management Team, we are pleased to report on the following: We have identified three key challenges that persist in our operations: inadequate energy supply, electricity theft leading to losses and network capacity constraints. These challenges are central to our efforts and require strategic attention to ensure the continued growth and stability of the corporation.
The Challenges-
- Inadequate Energy Supply: Growth in electricity demand has outstripped the available supply The Liberia Electricity Corporation (LEC) continues to experience significant increase in demand, driven largely by grid expansion and substantial untapped industrial demand in Monrovia. In the 2024 operational year, our base load stood at 57MW, with peak load reaching 90mw. Currently, our base load has exponentially increased to 86MW, while peak load during high-demand hours has risen to 107MW as of January 2025. This load growth has been mainly driven by grid expansion to hitherto unserved areas (e.g. RIA corridor), connection of large customers (including the MIP) and demand arising from an increasing population in our service area.
This growing demand for electricity presents challenges. Addressing this challenge will serve as a catalyze for economic development, thus underscoring the significant role of energy in fostering national progress.
- Revenue Protection:
The Anti-Power Theft (APT) Initiative, launched on November 9, 2022, has proven to be a critical strategy in protecting revenue and reducing commercial losses. At the close of 2022, commercial losses were recorded at 41.3%. Through sustained efforts, this figure decreased to 31.4% in 2023 and further dropped to 27.5% by the end of 2024. This represents a significant reduction of 33.4% in commercial losses from 2022 to 2024. Moving forward, we are steadfast in our commitment to significantly reducing commercial loss to a greater level that ensures financial sustainability and achieves operational breakeven.
Building upon the successes of the APT initiative, the Interim Management Team is committed to further strengthening revenue protection. In the coming weeks, we will initiate a comprehensive review of the Anti-Power Theft (APT) operations, accompanied by a rigorous and uncompromising crackdown Powertheft operations to hold individuals consuming electricity illegally accountable for the power they utilize. This review will focus on an end-to-end approach, identifying gaps, realigning processes, and institutionalizing the task force's activities to ensure long-term effectiveness in the fight against power theft.
We are committed to institutionalizing the Anti-Power Theft Task Force, which was launched as a project initiative within the corporation. This institutionalization will pave the way for the decentralization of APT operations by strategically positioning taskforce teams at each FBBU Unit and oversight from the APT head.
With the signing of the meter framework contract for the supply of over 300,000 meters, LEC has already received initial quantities of single-phase and three-phase meters under this agreement. The Corporation plans to deploy these meters strategically to minimize direct connections to the grid. Additionally, the initiation of the Prepaid Service Transition Program for Public Entities and Comprehensive Audits of Large Customer Connections will largely combat Electricity Theft
This renewed focus will also involve key strategic interventions, including routine rotations and checks of the assigned teams to ensure accountability and transparency.
iii. Network Constraints:
To ensure the reliability and efficiency of LEC's power transmission and distribution network, the corporation has identified three critical network constraints of focus:
- Transmission Constraints
Upgrading transmission lines is critical to enhancing the reliability, increase capacity and efficiency of our transmission infrastructure. Key areas identified for improvement include:
- Upgrading the Mount Coffee transmission line to Bushrod Island, as well as the transmission line from Mount Coffee to Paynesville, from 66kV to 132kV, and including the construction of two new transitional 132KV/66KV substations to support these essential upgrades.
- Substation Constraints
To enhance the efficiency, reliability, and safety of LEC’s infrastructure, four substations require immediate upgrades:- Paynesville Substation, Gardnersville Substation, Stockton Creek Substation and Bushrod Island Substation
- Construction of additional substations to create greater access.
- Distribution Constraints
A significant challenge in the distribution network is the lack of redundancy. Addressing this issue is critical to ensuring reliable power distribution and minimizing interruptions.
We remain committed to tackling these constraints as part of our broader efforts to enhance network reliability, improve power quality, and meet the increasing energy demands of Liberia. These initiatives will require substantial investment and collaboration with stakeholders, but they are vital to achieving sustainable energy solutions that support national development.
Key Initiatives and Developments Undertaken.
- Dry Season Preparedness Plan
The Liberia Electricity Corporation recognizes the recurring challenges posed by the dry season to local energy generation, particularly due to the significant reduction in water levels at the Mount Coffee Hydropower Plant. This seasonal decline directly impacts our operational capacity. Currently, three out of the four turbines at Mount Coffee are operational, while one turbine remains out of service following an insultation breakdown that damaged its stator unit.
To address the anticipated shortfall during the peak of the dry season, allow me to outline both our past and current generation portfolio.
During the last dry season, our operational capacity was as follows:
- The CLSG Transmission Line supplied 25 MW.
- The Mount Coffee Hydropower Plant contributed 18 MW.
- Our thermal plant produced 12 MW.
This resulted in a total operational capacity of 55 MW during that period.
Currently, we have improved our preparedness for this dry season with the following measures:
- The thermal plant has been fully prepared with an operational capacity of 18 MW.
- The Mount Coffee Hydropower Plant to supply 18 MW as its base output, and the CLSG Transmission Line supply of 50MW (Power Purchase Agreement – PPA is being finalized and expected to be signed by the end of January 2025.
Our total prepared operational capacity for this dry season stands at 86 MW, with an additional reserve of 20 MW in "Extra Energy" an agreement with our Ivorian counterparts to address unforeseen demands under the new PPA
As we transition into the dry season, the Liberia Electricity Corporation (LEC) reaffirms its commitment to minimizing power outages and ensuring reliable electricity supply for our valued customers. To achieve this, we have developed an enhanced load management strategy focused on customer satisfaction and power reliability. Key elements of this strategy include:
- Limited Outage Duration: Ensuring that no community experiences power outages exceeding eight hours at a time.
- Timely Communication: Providing clear and transparent updates to customers regarding load management schedules to foster trust and understanding.
- Improved Customer Support: Strengthening our 24-hour customer service capabilities to promptly address technical issues and respond to customer inquiries.
- Electricity Tariff
In the final quarter of 2024, the previous management submitted a new tariff proposal to the Liberia Electricity Regulatory Commission (LERC). This proposal was necessary following the expiration of the existing tariff structure on December 31, 2024. The proposed tariff, covering the period from January 1, 2025, to December 31, 2027, was designed to enable LEC to recover its operational costs while ensuring a reasonable return on investment, in line with regulatory guidelines.
However, we have withdrawn the initial proposal to allow for revisions and further improvements. The revised proposal will be resubmitted for regulatory approval.
The interim management team assures the public of its commitment to maintaining transparency throughout the process and ensuring that the proposed tariff adjustments are in the best interest of both the corporation and its customers.
iii. Power Purchase Agreement (PPA)
The existing Power Purchase Agreement (PPA) between Cote d'Ivoire Energies (CI-ENERGIES), Compagnie Ivoirienne d'Électricité (CIE), and the Liberia Electricity Corporation (LEC), which ensured the annual supply of 25 megawatts of electricity through the CLSG Transmission Line, expired on December 31, 2024. This supply has been vital in supplementing LEC’s local energy generation to meet national electricity demand.
We are pleased to announce that the management of LEC has successfully negotiated and finalized a new PPA with our Ivorian counterparts, securing a 50MW energy supply. Additionally, provisions have been made to procure additional 20MW of energy, referred to as "Extra Energy", during the operating period.
We would like to emphasize that during the execution of this agreement, there may be instances where load adjustments or changes are unavoidable due to unforeseen technical issues in energy generation, which are beyond LEC’s control.
Recently, we received an emergency adjustment notice from CIE, our energy partner, citing technical challenges they are currently experiencing. Their technical teams are actively working to resolve the issue, and this has resulted in electricity outages in some parts of Monrovia. We will provide timely updates to the public regarding the progress of this situation.
We assure our valued customers and the public that, barring unforeseen circumstances, our commitment to delivering reliable electricity remains steadfast.
- Project Updates:
As part of our ongoing efforts to enhance Liberia's energy infrastructure, we are pleased to provide an update on key projects at the Mt. Coffee Hydropower Plant and other major initiatives that were initiated before we assumed leadership.
Currently, three of the four turbines at the Mt. Coffee Hydropower Plant are operational, while one turbine remains temporarily out of service due to an insulation failure in the stator unit. To address this issue, a financing package of $5.5 million has been secured through the World Bank’s LESSAP project for the necessary repairs. The procurement process has been successfully completed, and the contract was awarded to SINOHYDRO Corporation Limited on December 23, 2024. Repair works are expected to commence by March 2025 and will be completed by March 2026, following the fulfillment of key contract conditions, including the submission of performance and advance payment guarantees. Once completed, these efforts will restore Mt. Coffee’s original installation capacity of 88MW.
Additionally, the construction of a 20MWp solar power plant at Mt. Coffee, being executed by the International Consolidated Contractors, is currently underway and is slated for completion by October 2025. Options are being explored to i99ncrease this plant capacity to 30MWp. This $16 million project is financed through the World Bank under the RESPITE Project. Upon completion, this project will mark Liberia's first solar farm and its inaugural renewable and clean energy initiative, demonstrating a strong commitment to the transition toward sustainable energy solutions.
Moreover, the expansion of the Mt. Coffee Hydropower Plant, which involves the addition of two new turbines, has been approved with a $62 million allocation under the same World Bank financing. This project will increase Mt. Coffee's installed capacity by over 50%, marking a significant milestone in the advancement of Liberia's energy infrastructure and the enhancement of the nation's power generation capabilities.
Looking ahead, the government has prioritized the construction of a new hydro dam called (SP2), to be located upstream of the St. Paul River in Bong County. This project, which aims to generate an additional 150-200MW of power, is currently in the feasibility study phase, with engineering and environmental assessments expected to be completed in the coming months. The project is estimated to cost between $600 to $700 million. It will include the construction of an access road from Bong Mines to the project site, a substation, transmission lines linking the project site to Mt. Coffee, and an operators' camp. Following successful negotiations with development partners, the World Bank has made a conditional commitment to finance 50% of the SP2 project.
Once these projects are fully implemented, LEC’s installed generation capacity is expected to increase from 126MW to 412.5MW, greatly enhancing Liberia’s energy sovereignty and providing a more reliable and affordable power supply for the country.
These above projects will span between 3 to five years hence the need for quick thermal plants intervention cannot be over emphasized. The LEC will collaborate with the NIC, LERC and other stakeholders to achieve this thru private sector participation.
Ladies and Gentlemen of the Press,
As I conclude this briefing, I would like to extend my sincere gratitude to each of you for your time, attention, and continued support as we work together to advance the Liberia Electricity Corporation (LEC) and the energy sector in our beloved country.
I would like to most importantly appreciate the President of the Republic of Liberia His Excellency, Joseph Nyumah Boakai for his continuous and unwavering support to the Energy Sector of Liberia. Through the effort of the President and His visit to the People’s Republic of China, the Liberia Electricity Corporation has had fruitful engagements aimed towards the construction of a 75MW power plant in Bomi and another100 MW plants (80 MW Thermal Power and 20MW Solar Power).
The Liberia Electricity Corporation remains committed to its core mission: to provide sustainable and reliable electricity to the public. Through collaborative efforts with our stakeholders, including the Government of Liberia, international partners, and the communities we serve, we are confident that we will continue to make significant strides in addressing the challenges we face while building a stronger, more resilient energy infrastructure.
We recognize that the energy independence or reliable power for Liberia is far from over, but with each step, we are ensuring that the people of Liberia have access to the electricity they need to thrive. We will continue to prioritize energy security, financial sustainability, and operational efficiency as we navigate the dry season and beyond.
In closing, we value your continued partnership and understanding as we press forward with these transformative initiatives and management will place heightened focus to address and rigorously crack down on power theft, with the objective of strengthening revenue protection. This strategic action is vital to safeguarding the corporation’s financial stability, thereby enabling the execution of further initiatives aimed at expanding electricity access to the public. Together, we will achieve a brighter and more energy-secure future for Liberia.
Thank you once again for your attention and support.
END OF PRESS STATEMENT
