Liberia: Senate Committee Sets Conditions for Ivanhoe–Liberia Road Access Deal - FrontPageAfrica

Monrovia — The Liberian Senate Joint Committee on Transport and Concessions has recommended the conditional approval of the Ivanhoe–Liberia Road Access Agreement, outlining a series of amendments it says must be addressed before the Legislature grants final concurrence.

By Gerald C. Koinyeneh

The agreement, which governs road, rail, and logistics access for Ivanhoe’s iron ore operations linking Guinea and Liberia, was earlier passed by the House of Representatives and subsequently forwarded to the Senate for concurrence. Upon receipt, the Senate mandated its Joint Committee on Transport and Concessions to review the terms of the agreement and advise the plenary.

Following its review, deliberations, and examination of supporting evidence, the Joint Committee concluded that while the agreement is acceptable in principle, it should only be approved subject to key modifications aimed at protecting Liberia’s infrastructure, communities, and legislative authority.

Among the committee’s primary recommendations is a requirement that the 25-mile heavy-haul road from the Guinea–Liberia border to Tokadeh be fully paved before the commencement of any iron ore haulage. The committee said this condition is critical to preventing premature damage to Liberia’s road infrastructure.

The committee also recommended that social contributions to affected communities be restructured to remove Ivanhoe from the direct implementation of community projects. Instead, it proposed that the Government of Liberia and the affected communities themselves serve as the sole implementing parties, a move intended to strengthen local ownership and accountability.

On rail infrastructure, the Joint Committee proposed that the agreement explicitly obligate Ivanhoe to construct the rail line from the Guinean mine to the Tokadeh rail connection within two years of the start of commercial production, consistent with commitments outlined in the feasibility study presented by the Executive.

In a significant fiscal clarification, the committee further recommended that the US$37 million already paid by Ivanhoe be designated as a non-refundable signature bonus, rather than a loan or advance, upon ratification of the agreement.

The panel also urged the government to review and increase the access fee currently set between US$1.55 and US$1.95 per ton, proposing a revised range of US$2.00 to US$3.00 per ton to better reflect infrastructure usage and national benefit.

Additionally, the Joint Committee included a safeguard clause recommending that the agreement automatically terminate if approval for the transshipment of Guinean iron ore through Liberia is not granted by the Government of Guinea within five years.

The committee also raised constitutional concerns regarding language in Clause 16.1(d)(ii) of the agreement. It recommended an amendment to ensure that references to a proposed National Rail Authority or an “NRA Act” do not limit or preempt the constitutional authority of the Legislature. According to the committee, any decision to establish such an authority must be made through a separate legislative enactment, without creating contractual default or liability under the agreement.

The Joint Committee’s recommendations will now be submitted to the full Senate for consideration as lawmakers debate whether to concur with the House-passed agreement under the proposed conditions.