Published: September 4, 2024
· House ratifies $24M loans for infrastructure and youth initiatives.
· $12M allocated to Phase IV of Mano River Union roads project.
· $12M designated for youth entrepreneurship through PAYEL.
· Loans await Senate approval, with repayment terms pending.
Capitol Hill – The House of Representatives has unanimously ratified two crucial loan agreements totaling US$24 million. Secured from the African Development Fund, these loans are intended to boost infrastructure improvements and youth empowerment initiatives nationwide.
The first agreement, worth US$12 million, is allocated to Phase IV of the Mano River Union (MRU) roads project, formally known as the Mano River Road Development and Transport Facilitation Program – Phase IV. This project aims to enhance regional connectivity and foster economic integration among MRU member states, including Liberia, Sierra Leone, Guinea, and Côte d’Ivoire.
The second loan, also totaling US$12 million, is designated for the Program for Advancing Youth Entrepreneurship Investment (PAYEL). This initiative is designed to support young Liberians in launching and growing their businesses, providing essential resources and training to stimulate economic growth and job creation.
The program emphasizes the critical role of youth entrepreneurship in boosting productivity, reducing unemployment, and enhancing living standards across the country.
“The approval of these loans represents a strong commitment to Liberia’s infrastructure development and the empowerment of its youth,” stated a spokesperson from the House’s Press and Public Affairs Department. “These initiatives are laying a foundation for future growth and prosperity in Liberia.”
Both loan agreements will now be forwarded to the Liberian Senate for concurrence. The approval process includes stipulations, such as repayment terms and conditions that must be met by the Republic of Liberia.
Among these, Liberia must decide within two months whether to elect the “Principal Option,” the “Interest Option,” or the “Combination Option” for repayment, with automatic default to the “Principal Option” if no decision is communicated within the specified period.
Additionally, if Liberia’s economic condition deteriorates significantly after the repayment terms have been modified, the African Development Fund may revise the terms further upon request from the Liberian government. The country also retains the option to prepay the loan balance under certain conditions, potentially with discounts.
The PAYEL program, in particular, is expected to deliver substantial benefits to Liberia’s youth, fostering entrepreneurial behavior that is crucial for economic development.
“Youth entrepreneurship plays a vital role in economic prosperity by increasing productivity, reducing unemployment, and improving living standards,” noted a representative during the House session. “This program will equip young Liberians with the tools they need to succeed in today’s dynamic labor markets, driving economic independence and innovation.”
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