Monrovia – President Joseph Nyuma Boakai has issued Executive Order No. 136, extending the provisions of the previous Executive Order No. 112 and reaffirming Liberia’s commitment to the development and enhancement of its rail infrastructure.
The new Executive Order, which takes immediate effect, establishes the National Railway Authority (NRA) to oversee and manage the country’s national rail assets. The NRA will ensure the efficient and equitable use of rail infrastructure, particularly benefiting the mining sector, as well as facilitating the transportation of passengers and goods.
Executive Order No. 112, originally issued by former President George Weah on October 17, 2022, expired without the Legislature passing the National Rail Authority Act.
In response, President Boakai has moved swiftly to extend the Executive Order, enabling the establishment of the NRA to regulate and manage Liberia’s rail infrastructure in line with international best practices.
In addition to establishing the NRA, Executive Order No. 136 mandates the appointment of rail regulators, the staffing of key leadership positions, and the generation of funding through the collection of user fees.
Executive Order Sparks Concern
While President Boakai’s move may seem progressive, analysts have raised concerns over the lack of clear economic modeling, transparency, and the questionable financial implications. The absence of firm commitments from key stakeholders, including ArcelorMittal Liberia, further fuels doubts about the timing and long-term benefits of the initiative.
In this report, FPA examines the critical issues that warrant closer scrutiny.
Lack of Commitment from Mining Companies
Despite the government’s ambitious announcement, no mining company, including those in Guinea, has shown relevant approval from the Guinean government to allow utilization of the proposed railway.
High Power Exploration (HPX), which seems central to the government’s railway plans, does not yet have a mining license for its Guinean operations, let alone an operational mine. Analysts say without these critical steps in place, discussions about transporting iron ore through Liberia are premature, bordering on speculative and deception.
According to observers, this lack of commitment underscores the fragility of the government’s vision for the NRA.
“If the major players involved—like HPX—are not yet in a position to utilize this infrastructure, what exactly is the government of Liberia establishing the NRA for? Investing in such a massive project without concrete, long-term commitments from users signals not just poor planning but potential economic recklessness,” said an experienced miner, who asked for anonymity.
HPX’s Uncertain Position in Guinea
FPA has gathered that HPX’s situation in Guinea is equally precarious. Along with its partner Société des Mines de Fer de Guinée (SFMG), HPX started lobbying the George Weah government to establish the NRA, but the idea could not move forward due to potential legal ramifications. However, neither company has received formal approval from Guinea’s current military leadership to transport ore through Liberia. This raises the question: Is Liberia being used as a pawn in HPX’s lobbying efforts?
Recent reports suggest Guinea’s leadership prefers HPX to join forces with Rio Tinto and other mining companies in Guinea in constructing the 650km Trans-Guinean Railway to link the Simandou iron ore deposits directly to the Guinean coast. With such opposition from Guinea, analysts say it is baffling that the Liberian government would prioritize an international railway plan without fully understanding or addressing Guinea’s stance. Has there been any diplomatic engagement with Guinea to align interests? Or is Liberia racing ahead on assumptions that could prove costly?
Financial Strains and Questionable Funding Sources
Liberia’s financial health is already stretched, so the creation of a new institution like the National Railway Authority should raise alarm bells. There are public concerns about the source of funding for this massive new government agency. Rumors suggest that HPX has offered US$25 million to support the NRA’s creation, which casts an uncomfortable shadow over the government’s decision-making process.
If true, observers say this could mirror a past blunder—when the Weah administration reportedly accepted $30 million from HPX for a framework agreement that lacked legislative approval, a move widely condemned as corrupt. Observers say accepting funds without a clear, transparent agreement and legislative oversight would deepen mistrust in the government’s integrity and accountability. Moreover, concerns are being raised about whether the $25 million is sufficient to launch and sustain a viable railway project in the long term?
The government has announced that it will fund the National Railway Authority (NRA) through user fees “levied against users of Liberia’s National Railway assets.” While this may seem like a strategic move to generate revenue, it raises several critical questions about its feasibility and the sources of this proposed funding.
Currently, there is only one recognized user of Liberia’s railway infrastructure—ArcelorMittal Liberia (AML). Under the terms of its concession agreement, ArcelorMittal’s operations are integrated, covering mine, rail, and port. This integrated concession means that the company is not required to pay separate user fees for its use of the railway. Therefore, ArcelorMittal cannot be the source of these proposed user fees, as it is legally exempt.
Recent reports suggest Guinea’s leadership prefers HPX to join forces with Rio Tinto and other mining companies in Guinea in constructing the 650km Trans-Guinean Railway to link the Simandou iron ore deposits directly to the Guinean coast. With such opposition from Guinea, it’s baffling that the Liberian government would prioritize an international railway plan without fully understanding or addressing Guinea’s stance.
On the other hand, HPX, a company interested in Liberia’s rail assets, has no existing legal or contractual agreement with the government regarding the use of the railway. HPX’s $15 billion investment plans focus on the development of Guinean iron ore resources, and it remains unclear whether it will eventually use Liberia’s rail infrastructure or establish its own. Without a contractual agreement in place, HPX cannot be expected to pay user fees either.
This leads to a fundamental question: from which users does the government intend to collect these fees to operationalize its National Railway Authority? Given that there are currently no other significant users of the railway, the government’s plan appears unsustainable without expanding rail access to other potential users or renegotiating existing agreements. If the government fails to address this gap, the funding mechanism for the NRA could remain aspirational rather than practical.
It was thought that the government would explore renegotiating the existing terms with ArcelorMittal or securing new agreements with companies like HPX. Without a clear and legally binding framework that includes multiple users, the vision of a self-sustaining National Railway Authority could remain elusive.
Uncertainty Around HPX’s Investment Promises
The government and HPX are yet to clearly give any update on the status of HPX’s much-publicized $5 billion investment package.
HPX on February 9 announced the Liberty Corridor infrastructure development project which it said aims at creating a cross-border transportation route for iron ore from Guinea’s Nimba mountain region to the Liberian coast.
Months after the announcement, there is little clarity on the status of this investment. What concrete benefits can Liberians expect? Beyond accommodating HPX’s transportation needs, what are the tangible advantages to the country, particularly in terms of job creation, infrastructure development, and revenue generation?
The government owes the public transparency on how this investment package is progressing and what role the NRA would play in it. Is this simply a vehicle to facilitate HPX’s ambitions, or does it serve the broader interests of Liberia’s economy and people?
Is Liberia Sacrificing Its Best Interests?
Observers says the Government of Liberia’s decision to establish a National Railway Authority, without the necessary commitments, financial backing, or a clear understanding of regional dynamics, appears rushed and potentially detrimental.
Liberia deserves better than vague promises and speculative ventures driven by external pressures. If other mining companies are not fully on board and HPX Guinea’s approval remains uncertain, is it wise for Liberia to charge ahead with such a costly, high-stakes project?
Moreover, the financial strains, combined with questionable sources of funding, amplify the risks. The government must prioritize transparency and accountability to avoid repeating past mistakes. Liberia cannot afford to embark on a project of this magnitude without a solid plan, guaranteed commitments from all involved parties, and assurances that it serves the broader national interest, not just the interests of a single foreign company and a few government officials.
Executive Order No. 136 raises critical questions that must be addressed before Liberia moves forward with the establishment of the National Railway Authority. The government owes it to the Liberian people to ensure that this decision is not just about facilitating corporate ambitions but about creating a sustainable and equitable future for the country.
