MONROVIA, LIBERIA – In a strategic effort to improve Liberia’s energy infrastructure and reduce electricity costs, President Joseph Boakai has issued Executive Order #138. The order exempts the Liberia Electricity Corporation (LEC) from paying customs duties and Goods and Services Tax (GST) on critical materials, equipment, and fuel for electricity generation, transmission, and distribution.
Replacing the expired Executive Order #122, this new directive reinforces the government’s commitment to alleviating the financial pressures on LEC and its consumers. It addresses key challenges such as escalating fuel prices and operational costs that have hindered the corporation’s transition to hydroelectric power, particularly at the Mount Coffee Hydropower Plant.
The exemptions outlined in the order include customs duties and GST on petroleum products like Heavy Fuel Oil (HFO), a significant cost driver for LEC. Additionally, the exemptions cover vital materials such as electric transformers, stranded wires, insulated conductors, optical fiber cables, refined copper and aluminum conductors, and light poles made of wood or metal—all essential for maintaining and expanding Liberia’s electricity infrastructure.
The order aims to achieve several objectives:
Lowering Costs: Reducing dependency on costly fossil fuels to keep electricity rates affordable.
Enhancing Stability: Mitigating external market risks and stabilizing LEC’s financial position.
Promoting Sustainability: Supporting the shift toward renewable energy sources, such as hydroelectric power.
Expanding Access: Strengthening the National Electricity Grid to serve more Liberians and spur economic growth.
The Boakai administration’s focus on stabilizing operational costs and promoting infrastructure expansion reflects its broader goal of ensuring reliable and affordable electricity for all Liberians. By alleviating cost pressures through tax and duty exemptions, the government aims to curb potential electricity price hikes and accelerate national development.
Executive Order #138 is expected to have an immediate and far-reaching impact, reducing electricity costs while advancing Liberia’s energy infrastructure. This initiative underscores the administration’s commitment to fostering sustainable growth and improving the lives of Liberians through enhanced energy access.
