Monrovia — The Liberian Senate Joint Committee on Transport and Concessions has really helpful the conditional approval of the Ivanhoe–Liberia Highway Entry Settlement, outlining a collection of amendments it says should be addressed earlier than the Legislature grants remaining concurrence.
By Gerald C. Koinyeneh
The settlement, which governs highway, rail, and logistics entry for Ivanhoe’s iron ore operations linking Guinea and Liberia, was earlier handed by the Home of Representatives and subsequently forwarded to the Senate for concurrence. Upon receipt, the Senate mandated its Joint Committee on Transport and Concessions to evaluate the phrases of the settlement and advise the plenary.
Following its evaluate, deliberations, and examination of supporting proof, the Joint Committee concluded that whereas the settlement is appropriate in precept, it ought to solely be accepted topic to key modifications geared toward defending Liberia’s infrastructure, communities, and legislative authority.
Among the many committee’s major suggestions is a requirement that the 25-mile heavy-haul highway from the Guinea–Liberia border to Tokadeh be totally paved earlier than the graduation of any iron ore haulage. The committee stated this situation is vital to stopping untimely injury to Liberia’s highway infrastructure.
The committee additionally really helpful that social contributions to affected communities be restructured to take away Ivanhoe from the direct implementation of group tasks. As a substitute, it proposed that the Authorities of Liberia and the affected communities themselves function the only real implementing events, a transfer supposed to strengthen native possession and accountability.
On rail infrastructure, the Joint Committee proposed that the settlement explicitly obligate Ivanhoe to assemble the rail line from the Guinean mine to the Tokadeh rail connection inside two years of the beginning of economic manufacturing, per commitments outlined within the feasibility examine introduced by the Govt.
In a major fiscal clarification, the committee additional really helpful that the US$37 million already paid by Ivanhoe be designated as a non-refundable signature bonus, somewhat than a mortgage or advance, upon ratification of the settlement.
The panel additionally urged the federal government to evaluate and improve the entry price at the moment set between US$1.55 and US$1.95 per ton, proposing a revised vary of US$2.00 to US$3.00 per ton to higher replicate infrastructure utilization and nationwide profit.
Moreover, the Joint Committee included a safeguard clause recommending that the settlement mechanically terminate if approval for the transshipment of Guinean iron ore by Liberia shouldn’t be granted by the Authorities of Guinea inside 5 years.
The committee additionally raised constitutional considerations relating to language in Clause 16.1(d)(ii) of the settlement. It really helpful an modification to make sure that references to a proposed Nationwide Rail Authority or an “NRA Act” don’t restrict or preempt the constitutional authority of the Legislature. In response to the committee, any choice to determine such an authority should be made by a separate legislative enactment, with out creating contractual default or legal responsibility beneath the settlement.
The Joint Committee’s suggestions will now be submitted to the complete Senate for consideration as lawmakers debate whether or not to concur with the Home-passed settlement beneath the proposed circumstances.
