Monrovia – November 2024 marks the contractual end for the Chief Executive Officer of the Liberia Electricity Corporation, Monie Captan and Chief Operating Officer Kwame Kpekpena, both of whom were recruited under the World Bank’s procurement process. Their salaries and benefits have been financed by the World Bank through a tripartite agreement between the Government of Liberia, LEC, and the World Bank.
Andrew Blamo, contributing writer
Outcry of high salaries of LEC’s CEO and COO, but the fetching reality is that a company like LEC, with over a billion dollars in assets and several millions in monthly turnover and its recurrent investment pattern will demand a CEO with salaries that meets international standards and best practices especially being paid by an international group to seamlessly avoid corruption and fosters integrity.
Credible sources say the looming expiration of their contracts, as both considered favorites of LEC’s international partners, could suggest a critical pathway of LEC’s and the electricity sector future.
LEC is currently working on the SP2 solar-hydroelectric dam project in Fuamah District, expected to generate 200 MW of power, as well as the ongoing construction of a 20 MW solar farm and the planned expansion of the Mount Coffee hydroelectric facility from 88mw to 148mw. Another 16.5mw solar project along the Roberts International Airport (RIA) corridor also be at risk. If partners’ expectations are not met on the appointment of the next management team at LEC, the continuation of these projects may be hit hard and fall into a jeopardy of crisis.
According to sources, high-level meetings between LEC’s partners have raised concerns about whether the contracts of Monie Captan and Kwame Kpekpena will be renewed.
Failure to do so, some speculate, could destabilize LEC’s financial stability, potentially leading to staff’s welfare. With a growing wage bill, the corporation might also be forced to scale down its workforce, particularly for contract employees, others in strategic positions will be shifted and several aligned to political parties to be dismissed to accommodate large numbers of political employment requests already on the standby, the existing case and normal phenomenon to stratify partisans…
Over the past two years, under the leadership of Captan and Kpekpena, LEC employees are receiving salaries and benefits paid in full, and the corporation’s operations and partners management and relationships have been proactively stable, improving the corporation’s public image and donor’s confidence. However, a management change not satisfy to partners could threaten these gains and lead the LEC on a critical path.
The possible fallout extends more beyond staff welfare. The CLSG (Côte d’Ivoire, Liberia, Sierra Leone, and Guinea) Power Purchase Agreement, which currently provides Liberia with 25-50 MW of power annually, is also at risk. If LEC’s financial situation worsens, Liberia may default on its commitments, damaging relationships with regional partners and potentially plunging the country back into darkness.
Furthermore, uncertainty surrounding LEC’s future could deter international investors who have expressed interest in the country’s electricity sector. A reduction in investment could stall critical infrastructure development.
Additionally, higher electricity tariffs could follow, further exacerbating power theft and reducing public access to electricity.
The collapse of these projects and partnerships would have wide-ranging consequences, potentially undoing millions of dollars of investment in the sector. Economic growth across multiple industries could slow, with rising costs for goods and services. A recovery, should the crisis unfold, could take years, putting Liberia’s development trajectory at serious risk.
Liberia now finds itself at a critical juncture, grappling with two difficult choices: sticking with the known or embracing the unknown. The country’s domestic revenue collection remains insufficient to independently finance significant advancements in the electricity sector, leaving it heavily reliant on international partners. These investors, who have poured substantial funds into Liberia’s energy infrastructure, are increasingly concerned about protecting their stakes.
Despite the ongoing challenges, the Liberia Electricity Corporation (LEC) has made notable strides in recent years. Power theft, which stood at a staggering 65% in 2021, has been reduced to 40% by 2024. Access to electricity has increased by over 5%, and revenue generation has surged by 200%. These achievements reflect steady progress under the current management.
However, these gains are at risk. As Liberia continues to rely on external support, any shift in leadership or strategy could potentially jeopardize this progress. Partners are keen to safeguard their investments, and any disruption in management or operations could require a reassessment of the current trajectory, with modifications to the ongoing reform efforts.
As the debate intensifies over the future of the sector, Liberia’s challenge is clear: finding a path forward that balances the need for continuity in progress with the expectations and demands of its international partners.
