The plant is located on the Saint Paul River, in West Africa and was the only hydroelectric plant to provide electricity to Monrovia, Liberia’s capital city, before 1992.
Mount Coffee was destroyed during an attack on Monrovia during the First Liberian Civil War and the government now seeks to restart the plant, primarily to reduce the country’s energy deficit.
Upgradation of the hydroelectric plant is projected to cost $230m with the German and Norwegian governments agreeing to extend $32m and $75m grants respectively.
The Liberian government will also provide $45m for the project while donors will provide an additional $107m.
Speaking on the loan agreement a Finance Ministry official was quoted by Daily Observer as saying that this is a significant development for the country.
Repair works are scheduled to commence in January 2013.
