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Liberia, USAID sign US$25m Municipal Water Agreement

Jacob Parley

(elbcradio.com/Aug. 27, 2015)-Finance and Development Planning Minister (MFDP), Amara Konneh, has signed a grant agreement for US$25-million with the United States Agency for International Development (USAID).

The Grant Agreement was signed in Monrovia Tuesday, August 25, 2015 on behalf of the Liberian Government
According to the release, the exercise will be implemented through the Liberia Water and Sewer Corporation (LWSC).

It said the exercise is intended for the construction of municipal water system in   three cities, including Robertsport, Grand Cape Mount County, in Voinjama, Lofa County, and Sanniquellie, Nimba County.

Minister Konneh commended the United States Government for the assistance and assured USAID that the Liberian Government would ensure that the development and sustainability of municipal water supply infrastructure, is executed within the MOU’s time frame.

The municipal water supply infrastructure project will be executed under the Liberia Municipal Water Project (LMWP).

Also speaking at the signing ceremony, USAID’s outgoing Mission Director, John Winfield, emphasized that the agreement is aimed at building earnest relationship between the United States and Liberia.

Mr. Winfield said the US Government would remain committed to supporting the Liberian Government in its quest to provide the basic needs of its people.

He maintained that the implementation of the project will help increase water supply and improve sanitation in the targeted cities and their environs.

The release noted: “The MOU consolidates the accomplishment of the Liberia Municipal Water Project (LMWP) and a Capital Improvement Project (CIP).”

The project’s objective is to increase access to affordable and safe water supply for the population of Robertsport, Voinjama and Sanniquellie cities.

The Liberia Water and Sewer Corporation (LWSC)’s Management is expected to sign a three-year Performance Contract (PC) with the Liberian Government.

The three-year Performance Contract is to ensure that specific targets are achieved during the contract’s period and assume the responsibility for the project’s overall coordination, on behalf of the Government.

The MOU also noted: “The MFDP is to ensure that appropriate governance, financing and management system are put in place to sustainably operate and maintain the infrastructure to be developed under the project.”

“The Liberian Government, through MFDP, will provide financing to meet operational cost shortfall that may occur following the closeout of USAID’s assistance.”

“GOL shall also ensure timely transfer of subsidies needed for basic operation of the LWSC water treatment Plants and setting of all GOL water bills to the entity,” it further noted.

On the other hand, USAID is expected to cover 100% of the system based expenses for the initial two years of the operations and up to 50% of operator based expenses for year one.

Also, USAID is expected to cover 25% for year two as needed to cover verifiable revenue shortfalls while GOL is expected to cover the additional 50% in year one and 75% in year two.

The LMWP and CIP are expected to be completed in 2017.

 


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