1.
Liberia: Investing in the Energy Sector
Mohamed Radhouani | Financing for Development

2.
Facts & Figures
4/1/2017 2
830 578 622 733 785
1,444
2,185
1,439
2,061
2,5003%
-30%
8% 8%
0%
-
1,000
2,000
3,000
-40%
-20%
0%
20%
2000 2002 2005 2010 2014
Gross Domestic Product
GDP per capita, PPP (constant 2011 international $)
GDP per person employed (constant 2011 PPP $)
GDP growth (annual %)
2%
89%
18%
85%
36%[CELLRANGE]
[CELLRANGE][CELLRANGE][CELLRANGE]
60
147 301
751
744
-100%
-50%
0%
50%
100%
50
400
750
2000 2002 2005 2010 2013
FDI & OfficialAid
FDI, net inflows (% of GDP)
FDI, net outflows (% of GDP)
ODA & Official Aid (constant 2013 US$ million)
44% 45% 46% 48% 50%
6% 3% 3% 4% 3%
2.89
3.07 3.27
3.96
4.50
0%
20%
40%
60%
2000 2002 2005 2010 2015
-
2.00
4.00
6.00
Population
Urban population (% of total) Urban population growth (annual %)
Population, total (million)
Indicator Year Value
Account at a financial institution
(% age 15+)
2011 19%
Urban population (% of total) 2015 50%
Investment in energy with PS
participation (current US$ million)
200
8
340
Human Development Index (HDI) 2015 177/188
WB Cost of Doing Business Report 2016 179/189
SOURCE: WB Data

3.
4/1/2017 3
Country Context
* Debt Sustainability analysis (DSA) of the IMF
 Volatile political landscape
 Corruption still a big challenge
 Public dissatisfaction heightened by
EbolaVirus Disease (EVD)
 Strong post-conflict economic
growth interrupted by the EVD
 Worsening debt distress risk (from
low to moderate)*
 Highly dollarized economy
 Exports heavily impacted by the drop
in the international commodity prices
 PS growth constrained by inadequate
energy and transport infrastructure
 Limited skills & capacity
 HighVulnerability to Climate Change
 Improved stability
 Key governance reforms
started since 2006
 Establishment of Liberia
Revenue Authority (LRA)
 improved revenue
administration and
mobilization
 Contained Inflation
 Improved gender equity

4.
Destruction of the public infrastructure due to 14 years of political crisis
Weak capacity
Low level of investments
Obsolete infrastructure
Very low electrification rate and high average electricity cost ($0.52/kWh)
Unavailability of reliable statistics
4/1/2017 4
Energy Sector
1% 8%
19%
17%
1% 1% 1% 3%
1%
4%
10% 10%
0%
5%
10%
15%
20%
0%
2%
4%
6%
8%
10%
12%
2000 2011 2012 2013
Access to Electricity
Access to electricity, urban (% of urban population) Access to electricity, rural (% of rural population)
Access to electricity (% of population)
SOURCE: WB Data , Sustainable Energy for All SE4LL initiative, IEA Energy Outlook
 Liberia ranked 179/189
in 2016 WB Cost of
Doing Business report.
 Inadequate supply of
infrastructure is one of
the top problematic
factors to set up
business as per 2015
Global Competitiveness
Report.

5.
4/1/2017 5
Why focusing on Energy?
 Education & Energy is a development priority.
 Education & Energy would contribute most to reducing priority.
 Energy would contribute most to generating economic growth.
SOURCE: WB Data 2014 Country Opinion Survey for Liberia
 Energy is a …

6.
4/1/2017 6
Why focusing on Energy? (Cont’d)
Power Africa
initiative*
• Grid connection to
70% of Monrovia and
35% of the rest of the
country by 2030
New Deal on Energy
for Africa**
• 100% urban access and
95% rural access by 2025
SDG***
• Universal access to
affordable, reliable
and modern energy
services by 2030
* https://www.usaid.gov/powerafrica/liberia **https://www.afdb.org/en/the-high-5/light-up-and-power-africa-%E2%80%93-a-new-deal-on-energy-for-Africa ***https://sustainabledevelopment.un.org/sdg7
Efforts will be supported by

7.
4/1/2017 7
Why is it important for the Government?
* http://www.lr.undp.org/content/dam/liberia/docs/docs/Liberia%20Agenda%20for%20transformation.AfT.pdf

8.
Deliver on
Corporate Strategy
Efficient & targeted
use of Aid resources
Deliver on
SDG
Mobilize additional
resources
4/1/2017 8
Why is it important for Development Partners*?
* Only key partners selected

9.
Explore new
markets
High returns
Risks mitigated by
other
stakeholders
Improved
reputation by
contributing to
SDG
4/1/2017 9
Why is it important for the Private Sector?

10.
4/1/2017 10
Major Challenges, proposed solutions and source of funding
Weak
Governance
Improve
Public
Expenditure
Management
Sector
Refor
ms
Improve
Investment
Climate
Limited
Capacity
Capacity
Building
Programs
Improve
Data
Collectio
n &
Analysis
Lack of
Investments
Build a
pipeline
of
bankable
projects
PS Resources
Mobilization
Investment
Operations
Government Budget
ODA (Technical Assistance)
Trust funds
MDB
(ADF**, IDA)
MDB
(Syndication &
arranged
financing)
MDB (Risk
Guarantees
through PSF* &
PSW)
MDB (Technical Assistance, Economic & Sector Work &
Project Preparation Facilities)
Private
Sector
* PSF: Private Sector Facility of the African Development Bank. A facility providing guarantees to PS operations in the countries with fragile situation. ** ADF: Concessional window of the African Development Bank.