President George Manneh Weah, has issued an Executive Order that exempts the Liberia Electricity Corporation (LEC) from Customs duty, GST on generation, transmission and distribution equipment, material and fuel.
Executive Order 104, which was issued on February 3, 2021, seeks to reactivate Executive Order #9 which has since expired at the time the Government of Liberia is creating every avenue to expand its use of hydroelectric power generated at the Mount Coffee facility to deliver affordable electricity to customers.
President Weah said the Executive Order is in the interest of national reconstruction and development.
The Liberian Chief Executive maintains that the Executive Order is imperative because the LEC, during its transition from the use of fossil fuels to hydropower to generate electricity, faces external market forces and risks that increase the costs of operations of the entity.
President Weah asserted there is still a need to minimize the cost of fuel to enable the LEC to provide electricity to the general public at a reasonable cost.
He said some of the costs, which are associated with the purchase, delivery, storage, and use of fossil fuels, particularly Heavy Fuel Oils (HFO), represent a significant expense to LEC, which slow investments in the transition to the wider use of hydroelectric power in Liberia.
President Weah also intimated that it was necessary for the LEC to achieve what he calls “higher levels of operational and financial efficiencies” to enable it to distribute electricity at affordable rates to customers.
Customs Duties and GST on petroleum products are LEC cost categories that have the potential for volatility that adversely impacts the monthly expenses of the Corporation.