Policy Note on Power Purchase Agreements (PPAs), Transmission Service Agreements (TSAs) and Public Private Partnerships (PPPs) for the Generation, Transmission and Distribution of Power in Liberia.
Whereas, the Ministry of Mines and Energy (MME) is the energy sector lead for the Government of Liberia (Gol) the Liberia Electricity Corporation (LEC) is the GoL utility responsible for the generation, transmission and distribution of electrical power across the entire country, and the Liberia Electricity Regulatory Commission (LERC} is the sector regulator responsible for licensing and tariff regulation;
Whereas, MME, LEC, and LERC welcome Power Purchase Agreements (PPAs), Transmission Service Agreements (TSAs) and Private Public Partnership (PPP) proposals for the development of the Liberian energy sector;
Whereas, Generation, Transmission, Distribution and equipment or services proposals must be structured in a manner that support His Excellency, President George Manneh Weah’s Pro Poor Agenda for Prosperity and Development (PAPD), and they must represent best value to ordinary Liberian citizens (consumers), and must be fully transparent; Whereas, Proposals must not be reliant on sovereign guarantees and must abide by the principle of a ‘reducing tariff that supports the President’s Pro Poor Agenda;
Now therefore, PPA, TSA and PPP Proposals must meet the following criteria before they can be considered:
1. PPA and TSA Proposals for power that is consumed, transmitted or distributed on the Liberian grid (network), and funded from LEC or Gol revenue, funds or debt, must be approved by MME, LEC Board, and the LERC consistent with the 2015 Electricity Law of Liberia;
2. All PPP Proposals for Generation, Transmission, and Distribution associated or connected to the Liberian (LEC) grid (network), and funded from LEC or Gol revenue, funds or debt, must be subject to the Public Procurement and Concession Act and the 2015 Electricity Law of Liberia prior to approval by the LEC Board and the Minister of Mines and Energy;
3. Any PPA or PPP Proposal must deliver power to LEC (the National Grid) at a price (per KwH) below the two (2)-year average price (per Kwh) of the Cote d’Ivoire, Liberia, Sierra Leone, Guinea (CLSG) West African Power Pool (WAPP) 225KV line until the Regulator sets a cost reflective tarriff. The CLSG KwH cost will be measured and defined as the pure PPA cost charged to LEC or GoL, exclusive of TSA costs and any other associated or implied costs and will be seen as the ‘benchmark’ price, Notwithstanding, all such costs must be consistent with Section 8 (Tariffs and Terms of Supply) of the 2015 Electricity Law of Liberia
4. TRANSCO is the CLSG operator and each of the four CLSG countries owns an equal 25% share of the TRANSCO CLSG Transmission Line
5. PPAs or PPPs will not be considered on a ‘Take or Pay’ basis. A proposed PPA or PPP for power generation connected to the National Grid would only see generation purchased by LEC or GoL, once all cheaper generation options indigenous to LEC and Gol (including the approved TRANSCO CLSG off take), have been exhausted by LEC and Gol. The requirement for LEC and GoL to exhaust their own indigenous and cheaper generation capacity before purchasing other sources of generation, represents the best interest of Liberian citizens and businesses, and supports His Excellency, President George Manneh Weah’s Pro Poor Agenda for Prosperity and Development;
6. The Liberian Energy Sector discourages PPA, TSA and PPPs that seek to ‘cherrypick’ prime commercial customers.
7. As an overriding principle, any proposed PPA must demonstrate a reducing tariff in support of His Excellency, President George Manneh Weah’s Pro Poor Agenda for Prosperity and Development. The current tariff of US $0.35 / KwH (May 2019) remains unsustainably high and PPAs that offer models based on that level of tariff cannot be seen as supporting the PAPD;
8. Companies, entities and organizations proposing PPAs, TSAs and PPPs, must be able to materially demonstrate previous expertise, acceptable financial credentials and credible experience in the specific discipline they are proposing to deliver;
9. The Government of Liberia recognizes that Transmission Service Agreements (TSA) are a transaction between the TSO (or LEC) and a third-party operator who meets the requirements of the 2015 Electricity Law, allowing a nondiscriminatory access arrangement to National Grid transmission lines
10. Potential PPA and PPP providers must also consider Liberia’s acceptance of its long-term responsibility to combat climate change and its commitment to a preference for renewable energy options over hydrocarbon options. Furthermore, in order to accelerate universal access to electricity, PPPs must also consider other options such as mini/micro grids in areas not covered by the national grid.
Minister Gesler E. Murray touring progress of the TRANSCO CLSG Transmission Line: https://www.youtube.com/watch?v=RKJ-4nL32H0
Minister Gesler E. Murray live television interview at the 2019 African Energy Forum, in Lisbon, Portugal: https://www.youtube.com/watch?v=ey4phFOSRpE
Ministry of Mines and Energy
Miners Identification Project
Undertaken in Collaboration with the National Identification Registry (NIR)
Minister of the Ministry of Mines & Energy (MME) Press Statement on the Announcement of the Project
Delivered at a Press Conference held on July 23, 2019 at MME Headquarters
Ladies and gentlemen of the Press:
I am delighted to welcome you to the Ministry of Mines and Energy (MME) for this important press conference held during this historic week marking the 172nd Independence Day anniversary of our beloved Country, Liberia. I have here with me the Executive Director of the National Identification Registry (NIR), Hon. J. Tiah Nagbe, who will jointly host this press engagement with me.
We have invited you here to inform you and, through you, our people across the Country that the Ministry of Mines and Energy will be working in partnership with the National Identification Registry to issue Artisanal and Small-Scale Mining Identification Cards (ASMID) to all miners and other actors involved in Artisanal and Small-Scale Mining(ASM) activities across the Country so as to establish a comprehensive database of all actors in the sector beginning Monday, July 29, 2019. We expect to complete this project by the end of October this year. Under this arrangement, we are requesting all miners and anyone who operates within our designated mining areas to make sure he/she is registered with the National Identification Registry and has obtained an ASMID card.
The NIR will issue to each miner a national identification card and a special ID card for miners, which we call the ASM ID card. ASM represents Artisanal and Small-Scale Miners. The NIR will also collect additional information on behalf of the MME to support our work in regulating and fixing the messy ASM sector in Liberia.
We want all miners and people who conduct business in our designated mining areas to know that the ASM ID card will serve as the permit or authorization to enter the mining areas. This means that anyone who does not carry the ASM ID card will NOT be allowed to work in these mining areas. Among those who should carry the ASM ID card are mining claim holders, diggers, divers, brokers, dealers, equipment operators, equipment owners/leasers/managers, and people who conduct business within mining sites.
This identification project will bring many benefits to all who are involved with this industry, from the Government to the workers. For us at the Ministry of Mines and Energy, this will allow us to operate a database of mining actors, which will help us regulate the ASM sector. We need to know who works in the sector, what type of work the person is doing, where is the individual working, etc. National security institutions also need information on the mining actors to be able to protect workers and also make sure that mining activities do not pose security risks to the larger society. There are also policies and programs that the Ministry needs to consider for the safety, health and future financial well-being of miners. To put these programs into place, we must have information on those that work in this sector.
It is for these reasons and many more that we are undertaking this project. Therefore, we count on the cooperation of all those involved.
Independent Diamond Training and Valuation Services
The Government of Liberia (GOL) through the Ministry of Mines and Energy (MME) intends to apply part of its budgetary allocation for Fiscal Year 2019/2020 for the Selection of Consultant Services – Independent Diamond Training and Valuation Services.
The Ministry of Mines and Energy was established by an Act of the Legislature and charged with the mandate to administer the Mineral and Energy sectors relative to all mineral, water and energy resources exploration, coordination and development in the Republic of Liberia. The Government Diamond Office (GDO) is established at the Ministry of Mines and Energy.
Diamonds have been a major export commodity and one of the sources of revenue for Liberia since the start of diamond mining in the 1930s. In 2004, the Government of Liberia imposed a moratorium on diamond mining in support of the UN sanctions on the exportation of rough diamond from Liberia. Subsequently in 2007, sanctions on the exportation of Liberia’s rough diamonds were lifted followed by the subsequent admittance of Liberia into the Kimberley Process Certificate scheme.
Diamond exports from Liberia need to be valued accurately to ensure that the Government receives the appropriate revenue in the form of export duties, royalties and other taxes. The diamond export procedures are also expected to comply with those recommended by the Kimberley Process.
The Ministry of Mines and Energy now invites qualified consultant firms to indicate their interest in providing the services of an Independent Diamond Training and Valuation. Interested consultant firms must provide information demonstrating that they have the required qualifications and relevant experience to perform the services as it relates to description & references of similar services, experience in similar conditions, methodology, availability of appropriate skills among staff, pictorial brochures, etc.).
A consultant firm will be selected in accordance with the procedures enshrined in the Public Procurement and Concessions Commission Act (PPCA) of the Republic of Liberia as amended and restated in 2010.
- The consultant firm must have carried out at least 3 diamond training and valuation services.
- The consultant firm must demonstrate that at least two of the staff allocated to work as diamond valuators in Liberia each have a minimum of ten years rough diamond valuing experience.
- The consultant firm must produce a letter signed by each staff member allocated to work in Liberia that they are prepared to travel and work in Liberia.
- The consultant firm must obtain business visa and/or work and resident permits for all staff working on the contract according to the duration of their residency in Liberia.
- The consultant firm will provide all equipment necessary to carry out its rough diamond valuation.
- The Consultant firm must be duly registered and tax compliance
- Authorized certification or license in diamond valuation
- Company’s profile
- List of Key professional staff
- Financial Statement / Balance Sheet for the year ended December 2018
Submission and Deadline
Sealed Expression of Interest (EOI) must be delivered in hard copy to the Procurement Unit not later than 6 August 2019 at 3:00 Post Meridian (Liberia Time), Monday to Friday. Late EOI will be rejected and returned to consultant firm(s) unopened. All EOIs must be delivered to the below address and marked “Expression of Interest for IDTV”.
Interested consultant firms may obtain information at the address below during office hours between 9:00 AM to 3:00 PM (Liberia time) Monday – Friday.
The referred address is:
Ground Floor, Room #10
Ministry of Mines and Energy
United Nations Drive, Capitol Hill
Email Address: email@example.com
Tel. Number: (+231) 777 299 651 / (+231) 888 832 299