Project developer Gigawatt Global and Liberia have signed a Memorandum of Understanding (MoU) for the construction and financing of a 10MW solar photovoltaic power plant in Monrovia.
Marjon Kamara, Liberian Foreign Affairs Minister, signed the MoU on behalf of the Liberian government while Remy Reinstein, the New Projects Coordinator signed on behalf of Gigawatt Global. The signing between Gigawatt Global and Liberia took place at the Permanent Mission of Liberia to the United Nations in New York.
Kamara said that Gigawatt Global and Liberia are excited to be entering into this venture. “Energy is one of the government’s top priorities and desire to bring electricity to as many areas including the rural communities of the country before the end of this administration,” she said.
Minister Kamara added that, Gigawatt Global has an element of corporate social responsibility attached to the project, given that it’s almost a must now that when you enter these kinds of contracts the company or enterprise does something for the community in which it operates.
Signing of the MoU comes in at a better time as Liberia is on the trail of strengthening relations with the State of Israel. However, besides the 10MW to be built in Monrovia, Gigawatt Global would as well like to install 30 additional megawatts in other parts of the country where government deems fit. The company has assured to abide by its corporate social responsibility.
According to the MoU agreement, Gigawatt will provide the government of Liberia, through the Liberia Electricity Company (LEC), the roadmap, which summarizes the main actions and steps necessary for the development and construction of a solar photovoltaic power plant. The company will also conduct at its own expense a financial and technical feasibility, including the analysis of financial cash flows and tariff structures and the average rate over the entire observation period of debt repayment and return on equity; provide all reports to the LEC within a period of 8 months from the signing of the MoU. Additionally, Gigawatt will provide 100% financing, both debt and equity as allowed under the Liberian law.
On the other hand, Liberian government, will take part in analyzing reports and studies submitted by the developer for approval for the development and construction of the solar power plant within a period of 30 days of the developer’s submission. The government will also provide data upon request of the developer on the national electric grid, financial information or technical utility as requested in favor of the feasibility studies.
Liberian government will also help in facilitating an introduction between the project developer and the leading universities in closest proximity of the project site as well as securing optimal land sites for the power facility, given that, the project is consider as part of the National Electrification Plan. The objective is to develop a corporate social responsibility program, knowledge transfer and training for rural solar electrification.
Gigawatt Global Coöperatief U.A. is a multinational – American, Dutch and Israeli – renewable energy company focused on the development and management of utility-scale solar fields in emerging markets. The company has a rich pipeline of solar electricity projects, mostly in Africa.