11/12/2025
What will Liberian benefits when 173 individuals live luxury Life?
๐๐ผ๐๐๐ฒ ๐ผ๐ณ ๐ฅ๐ฒ๐ฝ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ฎ๐๐ถ๐๐ฒ๐ ๐ฃ๐ฎ๐๐๐ฒ๐ ๐๐๐ฎ๐ป๐ต๐ผ๐ฒ ๐๐ถ๐ฏ๐ฒ๐ฟ๐ถ๐ฎ ๐๐๐ฑ. ๐๐ผ๐ป๐ฐ๐ฒ๐๐๐ถ๐ผ๐ป ๐ฎ๐ป๐ฑ ๐๐ฐ๐ฐ๐ฒ๐๐ ๐๐ด๐ฟ๐ฒ๐ฒ๐บ๐ฒ๐ป๐
The Plenary of the House of Representatives has voted to ratify the Concession and Access Agreement (CAA) entered into between the Government of Liberia, Sociรฉtรฉ des Mines de Fer de Guinรฉe (SMFG), and Ivanhoe Liberia Limited.
The decision was reached on Thursday during the 17th Day Sitting of the 3rd Quarter of the 2nd Session, following the submission of a comprehensive report from the Joint Committee on Investment & Concessions, Judiciary, Ways & Means, and Good Governance, mandated to review the agreement.
The Joint Committee presented findings following an extensive review of the CAA dated July 5, 2025, and testimonies from members of the Inter-Ministerial Concessions Committee (IMCC).
The report says on August 19, 2021, the Government of Liberia, through the Ministry of Transport, granted SMFG/Ivanhoe a conditional Right of Access for export of Guinean iron ore through Liberia.
After negotiations, the IMCC and SMFG/Ivanhoe signed the CAA, which received attestation from the Ministry of Justice and was subsequently approved by the President and submitted to the Legislature for ratification.
The report inserts that the CAA grants SMFG and Ivanhoe Liberia Limited a 25-year right to transport iron ore from Guinea through Liberia using the existing rail line and the Port of Buchanan.
Concessionaires are required to upgrade rail capacity and improve the Buchanan Commercial Quay to support safe, multi-user operations.
The report says Liberia will serve as a transit route for industrial goods destined for Guinea.
โข The agreement provides for:
o 1.5% customs user fee on imports (CIF-based)
o US$500,000 annual customs transit fee
Infrastructure Investments
โข Phase 1: Over US$64 million in rail and port upgrades.
โข Phase 2: Approximately US$888 million in rail expansion and port improvements โ totaling nearly US$1 billion in direct Liberian infrastructure investments.
The Concessionaires will make the following payments:
โข US$1 million โ within 10 business days after signing
โข US$10 million โ within 10 business days after the Effective Date
โข US$15 million โ on the Commencement Date
โข US$2.33 million โ upon enactment of the NRA Act
โข US$3.33 million โ upon appointment of the Independent Operator
โข US$3.33 million โ first anniversary of the appointment
โข Rail Access Fee: sliding scale of US$1.95 to US$1.55 per ton, indexed to inflation
โข Cross-Border Transit Fee: US$0.10 per wet ton
โข A previously advanced US$37 million remains non-refundable unless access is denied.
The CAA provides a structured Community Development Fund:
โข Year 1: US$1 million
โข Year 2โ3: US$1.5 million annually
โข Year 4โ5: US$2.5 million annually
โข Year 6 onward: US$5 million annually
This totals more than US$110 million for communities along the rail corridor.
โข Over US$1 billion in projected rail access fee revenues
โข Approximately US$176 million in additional taxes and duties
โข Preference for Liberian employment at all levels
โข Preference for Liberian businesses in goods and service supply
โข Mandatory compliance with Liberiaโs environmental, safety, and medical standards
โข 2026: Project development begins (pending ratification)
โข 2027: First shipment of 2โ5 million tons annually
โข Phase 2: Increase to 30 million tons per year after feasibility studies
โข ArcelorMittal Liberia remains operator until September 23, 2030
โข Thereafter, rail use transitions to a multi-user regime managed by a neutral Independent Operator under the National Rail Authority.
Representatives from the IMCC stated that the agreement will:
โข Boost national revenue
โข Create direct and indirect jobs
โข Expand Liberiaโs rail capacity
โข Strengthen regional economic integration
โข Support multi-user rail governance in the national interest
All required approvals were confirmed to have been obtained.
โข Ivanhoe Atlantic completed and submitted an Environmental and Social Impact Assessment (ESIA) to the EPA.
โข The ESIA included extensive consultations with communities along the Yekepa-Buchanan corridor and provides grievance mechanisms and environmental/social management plans.
The Joint Committee concluded that the CAA:
โข Will benefit Liberia,
โข Supports the goals of the Mano River Union and ECOWAS, and
โข Should be ratified without reservation.
Following debate, a motion by Hon. Sekou Kanneh of Montserrado County District #2 was endorsed by Plenary, thereby passing the Agreement and forwarding it to the Liberian Senate for concurrence.
Source: The Honorable House of Representatives
