Country ISO2
LR
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Overview

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This activity financed an affordability study as input to the design and structuring of a subsidy project in Liberia. The findings of the study informed the economic context of the potential energy consumers in Liberia in urban and rural areas.
Activities included:
(1) Quantify consumer access to energy and consumption levels.
(2) Identify characteristics of household income levels of in Liberia and quantify the ability or willingness to pay for energy.

Inputs from the study were included in the commitment paper for the subsidy project, which was approved by the PoE for commitment in June 2011. GPOBA signed the grant agreement with the government on December 21, 2011. The project declared effectiveness on March 2012.

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Overview

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This  scoping  study  assesses  the  feasibility  of implementing   an   OBA   approach   to   expand access  to  piped  water  supply  to  low-income households in Monrovia.

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The objective was to introduce integrated services for the urban poor as part of a larger Strategy for Monrovia initiative that identified strategic reforms and investments over the medium-to-longer term for enabling development of Liberia's  capital city. 

The analytical deliverables have been drafted, identifying specific subprojects in water, solid waste management, solar energy, agribusiness, healthcare, education, etc. Spatial analytics that this activity has supported involves mapping of the Greater Monrovia area, helps understand densification of the built environment and people in various parts of the Greater Monrovia district with population of almost one million people, or 20% of the nation.

The activity was extended from December 2019 to July 2020 to be synchronized with the discussion about project scope. GPRBA was to then take part in the discussion of RBF feasibility in each sector to enable the identification of sub-projects for possible funding under the proposed Outcomes Fund.

 

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GPRBA's $3.3 million subsidy is supplementing the Liberia Reconstruction Trust Fund's $ 6 million to the ongoing Cheesemanburg Landfill and Urban Sanitation (CLUS) project in Monrovia, Liberia.

This additional financing is recognized as a critical intervention to enhance the resilience of the residents of Monrovia to the adverse effects of the COVID-19 pandemic.

Improved solid waste management can also create skilled and unskilled jobs in the areas of waste collection/processing and recycling, and has the potential to achieve increased levels of social cohesion through engagement and behavior change.

By working toward improved quality waste-related services, a local economy has a greater chance of thriving and enhancing public spaces to be enjoyed by all.

Such public services must be a part of a community’s efforts to protect public health and the environment, as outlined in UN Sustainable Development Goal 11.

 

 

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In 2011, GPOBA provided a grant to the local power utility, Liberia Electricity Corporation (LEC), to ensure broad-based and inclusive access to electricity and significantly improve living conditions among the poor in low-income households in Monrovia. This project was part of a larger greenfield effort, the Liberia Electricity System Enhancement project, backed by the International Development Association (IDA) to rebuild the power infrastructure in Monrovia and strengthen LEC.

Expanding Electricity to Low-Income Customers in Liberia (619.73 KB)
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News Release  No 2011/03

Contacts

In Washington:
Jacqueline Sibanda, tel. (+1) 202 458 2974
jsibanda@worldbank.org

In Monrovia:
Michael Sahr, tel. (+231) 88 6514 321
msahr@worldbank.org
 
Monrovia, December 21, 2011 – The World Bank, acting as administrator for the Global Partnership on Output-Based Aid (GPOBA), has approved a grant of US$10 million to connect about 80,000 people to Monrovia’s electricity grid, raising the electricity access rate in Liberia’s capital from 0.6 percent to 8 percent. GPOBA funding will supplement capital allocations from various donors to install connections, initially targeting 21 priority low-income neighborhoods. The scheme will be implemented by the Liberia Electricity Corporation (LEC), the sole power company in the country.

Liberia is one of the poorest countries in Sub-Saharan Africa, with 64 percent of the population living below the national poverty line. A decade and a half of successive armed conflicts devastated the nation’s infrastructure and institutions, reducing access to key services like electricity to practically zero. Most households depend on expensive and polluting energy alternatives including kerosene, dry cell batteries and diesel generators for lighting and electricity needs. Households without access to grid electricity are estimated to spend up to 50 percent of their disposable income on energy-related expenditures.

“This innovative output-based aid scheme will help the Government of Liberia’s urgent goal to increase and improve access to electricity for its citizens,” said Ohene N yanin, World B ank Country Manager for Liberia. “The project will help make access to electricity more affordable by subsidizing the cost of connection and more inclusive by explicitly targeting the poor.”

GPOBA will pay LEC a capital subsidy of US$595 for each connection installed. The connections made through the output-based aid (OBA) scheme will help LEC increase its customer base and secure resources for further investments in access programs. Also, the utility will be able to speed up its goal to reduce tariffs and subsequently energy expenditure for Liberian households. LEC estimates that for every 10,000 new customers it acquires, tariffs will reduce by US$0.03-0.04. Ultimately, the savings made by households will help make more spending available for other commodities and education. LEC will receive the subsidy payment in two phases and in accordance with the OBA approach, only after independent verification of household connections. 80 percent will be paid after a connection in a priority neighborhood is made and verified; and the remaining 20 percent will be paid upon verification of proof of three months satisfactory service delivery to target households.

“We hope that by using this innovative and results-based approach--as part of a wider effort to expand distribution and power generation capacity in Monrovia—we can make affordable electricity connections a reality for all and help to improve living conditions among the poor,” said Shahid Mohammad, CEO of Liberia Electricity Corporation (LEC).

The GPOBA project is part of the Liberia Electricity System Enhancement Project (LESEP). The scheme will be financed jointly by GPOBA (US$10 million), the Government of Norway (US$5.8 million), and user contributions (US$0.8 million). LESEP is funded through a US$29 million grant from the Government of Norway, a US$10 million IDA credit from the World Bank and US$2 million grant from the World Bank’s Africa Renewable Energy Access (AFREA) program. 

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 A decade and a half of successive armed conflicts in Liberia has devastated the national infrastructure, leaving access to basic services like electricity at practically zero. GPOBA supported, through at $10 million grant,  a project aimed at rehabilitating Monrovia’s power supply and rapidly expanding the roll-out of the network to a low-income households. Using an output-based aid scheme, the project was to help make access to electricity more affordable by subsidizing the connection cost and more inclusive by explicitly targeting the poor. 

Outputs: The project was successful in ensuring broad-based and inclusive access to electricity, and significantly improving living conditions among the poor.

At project closing, a total of 17,165 low-income households (= 83,695 beneficiaries) were connected to electricity in 21 low-income areas, exceeding the target of 16,806 households.