Africa-Press – Liberia. The House of Representatives, through a majority vote, has passed the Mineral Development Agreement between Liberia and Arcelor Mittal Liberia (AML). The House’s decision followed a motion by Rep. Dixon Sebo (District #16, Montserrado County), which was triggered by a set of recommendations from its Joint Committee on Investment and Concession, ways, Means & Finance, Judiciary, Lands, Mines & energy and Environment, calling on for its passage.
However, the Joint Committee made several major changes to the agreement submitted by President Weah. A notable one borders on the ownership right of the railroads and port of Buchanan.
According to the Joint Committee, Article 3 of the proposed Amendment called for the company to have exclusive rights over Liberia’s railroads and the Port of Buchanan; something the Joint committee sees as a complete monopoly of the government’s two major infrastructures.
In the amendment, the Committee called on the government to take ownership of the Railroad, Buchanan Iron Ore Port and related Infrastructure. It called for the Infrastructure to be structured, regulated, expanded and managed on a non-discriminatory multi-user basis for the benefit of all eligible applicants and the Republic of Liberia.
Each Eligible Applicant will have (i) a right of access to Liberia’s Infrastructure to enable it to construct and carry out its own transportation activities, and (ii) a right to be involved in the operation of the Liberian Infrastructure on and from its designation as Eligible Applicant, in each case so as to ensure that all Eligible Applicants (including the CONCESSIONAIRE) have equal priority in respect of the construction and operation of their transportation activities (both as to timing and volumes) on the Liberian Infrastructure;
The Third Amendment, among other things, called for ArcelorMittal to make US$800 million Investment in Liberia, which will provide the Government of Liberia with US$55 million within 19 months of ratification.
Social Contributions to Affected Counties
Prior to the passage, there have been split opinions over the ratification of the agreement by the Legislature. While some are backing the agreement, others called for AML to be compelled to living up to its corporate social responsibilities. The Committee called for the county social development fund be increased from US$3million to US$5 million.
It also called for Yekepa be brought to prewar status. Mittal had previously committed to the construction and or renovation of 1800 houses received in its current 2005 MDA. AML has renovated or constructed less than 300 houses of the total 1800 houses.
That the National Housing Authority be authorized to draw up a housing unit plan to be used by AML for the construction of 1800 housing Units. In a report to Plenary Thursday, the Committees craved the indulgence of Plenary to pass the agreement; with the above mentioned amendment which it believes will serve the best interest of Liberia and its people.
The Committees also recommended that the National Housing Authority draw the plan of housing design to be used by the AML, recruit citizens from affected communities and provide jobs, rehabilitate roads in those counties.
The report further recommended that the company assist with the repair of a 2.5km bridge linking the rest of Grand Bassa County with the Liberia Agriculture Company facilities as part of its social responsibilities to Grand Bassa County. Meanwhile, the House of Representatives has forwarded the instrument to the Liberian Senate for concu
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