The AfDB is providing USD 7.41 million in financing to complete a run-of-river hydropower plant and associated transmission infrastructure, in order to strengthen access to clean, reliable, and affordable electricity for Liberian households and businesses. This project is part of the country’s strategy to reduce its dependence on costly and polluting diesel power plants, while improving the competitiveness of the economy.

AfDB Support to Finalize a Strategic Power Plant

The USD 7.41 million in financing comes from the African Development Fund, the concessional window of the African Development Bank Group dedicated to low-income countries. It will enable the completion of the commissioning of a run-of-river hydroelectric power plant, as well as the construction of associated infrastructure such as an approximately 8 km, 33-kilovolt transmission line and two transformer substations.

According to the African Development Bank (AfDB), this support should help secure Liberia’s electricity supply while reducing reliance on private generators running on fossil fuels, which are widespread in the country. Ultimately, the project should strengthen the resilience of the energy sector and support the expansion of the grid to areas not yet served.

A run-of-river hydroelectric power plant: what are the advantages for Liberia?

The funded power plant is a run-of-river type, meaning it uses the natural flow of the river without requiring a large dam. This technological choice limits the project’s environmental footprint, reduces the risk of population displacement, and accelerates construction compared to large-scale, conventional hydroelectric projects.

For Liberia, hydropower offers several advantages: more stable production costs than thermal power plants, reduced fuel imports, and lower greenhouse gas emissions related to electricity generation. It also allows for better utilization of the country’s hydrographic potential, already harnessed in other projects supported by international donors.

Expected Impact on Energy Access and Local Development

By improving production capacity and the quality of electricity supplied, the project should facilitate the connection of new households, schools, health centers, and small businesses to the formal grid. Liberian authorities hope this will gradually reduce reliance on informal and costly solutions such as mini-generators or unregulated systems.

Strengthening the energy supply is also presented as a way to attract more private investment in sectors such as agribusiness, services, and manufacturing. More reliable and affordable electricity can indeed improve the competitiveness of local businesses, support job creation, and stimulate inclusive growth.

This project is part of the regional interconnection strategy

The power plant and its transmission lines must also be connected to a cross-border transmission line, which will facilitate Liberia’s integration into electricity trading within the West African sub-region. This strengthened network aligns with the objectives of the Economic Community of West African States (ECOWAS) to develop a more integrated and resilient regional electricity market.

This regional dimension should allow Liberia to optimize its energy trade with neighboring countries, importing when there is a shortage and exporting the surplus when hydroelectric production is more abundant. Ultimately, the interconnection helps to secure supply, pool capacity, and reduce production costs for consumers.

Project Key Figures

Financing Amount: $7.41 million from the AfDB, via the African Development Fund.

Type of Project: Run-of-river hydroelectric power plant.

Associated Infrastructure: Approximately 8 km of 33 kV transmission line and two substations.

Main Objective: To increase access to reliable, clean, and affordable electricity for Liberian households and businesses.

Regional Dimension: Connection to a cross-border transmission line within the framework of West African electricity integration.

Importance for the Energy Transition in West Africa

This new financing confirms the AfDB’s central role in the development of green energy infrastructure in West Africa.

West. The institution is expanding its hydroelectric, solar, and grid reinforcement projects to support the energy transition of member countries while fostering their economic development.

For Liberia, this project complements other renewable energy and rural electrification programs implemented by technical and financial partners. It thus contributes to achieving national objectives for universal access to electricity and the climate commitments made under the Paris Agreement.

Conclusion

By mobilizing 7.41 million USD to complete a run-of-river hydroelectric power plant and its infrastructure, the AfDB is strengthening Liberia’s energy transition trajectory and the reliability of its electricity system. Beyond improving access to energy, this project addresses issues of local development, economic competitiveness, and regional integration into the West African electricity market.