Country Brief last updated September 2008 History Currently moving forward from a time of transition, Liberia has for the past four years, together with international partners, worked to ensure a peaceful society and to revive its once thriving economy, but the long path of reconstruction remains a severe challenge. The Comprehensive Peace Agreement signed in Accra, Ghana, in 2003 still holds strong with the support of a 15,000 strong UN peacekeeping mission. The National Transition Government of Liberia (NTGL) was succeeded by peaceful legislative and presidential elections in October 2005, with Ellen Johnson Sirleaf becoming Liberia’s-and Africa’s-first democratically elected female head of state. Two years on, the President and the new government’s progress towards economic and political reforms have been recognized by the local and international community, but expectations from the population for concrete peace dividends remain high. The World Bank stands ready to continue to support the Government of Liberia in this crucial time as the country moves to establish the foundations for long term development. The World Bank’s Engagement The World Bank Group reinitiated relations with Liberia in 2003 after a 20 year absence through the endorsement of a Liberia Country Reengagement Note, which expired at the end of the 2006/2007 fiscal year. In August 2004, the World Bank opened a liaison office in Monrovia, which morphed into a Country Office in July 2006. The World Bank Group reinitiated relations supporting the Liberian Government through the initial post-conflict transition on rebuilding its economic governance systems, reconstructing basic infrastructure, and rebuilding community and social cohesion. Following a democratic transition in 2006, the Bank developed an interim Strategy Note (ISN) for Liberia (jointly with the African Development Bank) which has provided the framework for its interventions since June 2007. The Bank strategy is aligned to the national reconstruction and development agenda as outlined in the interim Poverty Reduction Strategy (iPRSP). Four main sectors of intervention, or “pillars” are identified in the iPRSP: (I) Security; (II) Economic Revitalization; (III) Governance and the Rule of Law; and (IV) Infrastructure and Basic Services. As encapsulated in the ISN, the World Bank Group is active in the areas of Economic Revitalization, Governance and Rule of Law and Infrastructure and Basic Services. This continues the Bank’s work in improving economic governance, rehabilitating infrastructure and providing basic services such as health and education, community empowerment and revitalizing the private sector. The World Bank also plays an important role in donor coordination in Liberia. Being the principle actors in Pillars II and IV, the World Bank co-chairs these committees together with government, as well as being a member of the overall government-led aid and policy coordination body, the Liberia Reconstruction and Development Committee (LRDC), responsible for overseeing the implementation of the iPRSP. In December 2007 Liberia cleared all overdue debt service payments of $US 400 million to the World Bank, thereby ‘normalizing’ relations with the Bank and making Liberia eligible for full debt relief under the Heavily Indebted Poor Country (HIPC) and Multilateral Debt Relief Initiative (MDRI) programs. In light of the arrears clearance and following the Government’s completion of Liberia’s PRSP, a full World Bank Country Assistance Strategy (CAS) is under preparation in 2008 which will provide a framework for the Bank’s program over the next three years. Overall Portfolio The World Bank’s overall portfolio of grant funding totals just over US $144 million with an additional US$24 million in the pipeline. This portfolio focuses on three main areas; Infrastructure and Basic Services, Economic Revitalization and Governance/Rule of Law. Infrastructure and Basic Services The World Bank in Liberia is investing over US$126 on infrastructure and basic services, which includes ongoing projects and those under preparation. The World Bank is supporting emergency infrastructure repairs of the rural and urban road and water networks as well as funding the purchase of fuel for electricity generation (US$46.5 million, with $38.5 million under preparation). The World Bank is facilitating urgent urban works in Monrovia; that include the cleaning of pipe’s drains and sewers, rehabilitation of public toilets, and market rehabilitation. Supporting recovery and reconstruction in local communities both in urban and rural areas is critical. Under the Transitional Support Fund, the World Bank is working closely with a number of NGOs to implement quick impact local infrastructure projects within communities. The Community Empowerment Project, implemented by the Liberian Agency for Community Empowerment (US$11 million), seeks to involve local communities in the reconstruction of vital social infrastructure laying a premium on local decision-making and labour. The World Bank recently launched the US$ 37 million Agriculture and Infrastructure Development Project, a vital infrastructure development project that seeks to reestablish basic agricultural activity. This project will develop policies that will enhance agricultural value chains, promote public-private partnerships and provide farmers with access to local, national and international markets. In order to meet the challenges of the lack of major infrastructure throughout the country, the Liberia Infrastructure and Rehabilitation Project supports additional urgent infrastructure works in the port and airport of Monrovia (US$8.5 million). In recognition of the fact that Liberia’s formal unemployment rate is between 80-85%, all Bank-funded infrastructure projects utilize labor-intensive work methods. In response to the urgent needs in the health sector, the World Bank has launched an US$8.5 million emergency health project. This project aims to support the Ministry of Health through the provision of equipment and responding to the human resource challenge. Economic Governance: Economic Revitalization and Governance/Rule of Law US$12 million of the World Bank’s portfolio is focused on economic and good governance initiatives, primarily in support of the Governance and Economic Management Program (GEMAP) through technical assistance in the following areas: procurement and financial management reform, legal reform, forestry, mining, agriculture, telecom, and land sector reforms, the gender sector and the establishment of a Resource Management Unit (RMU) at the Ministry of Finance. To respond to the capacity challenges of government, the Bank is providing technical assistance in civil service reform and lending significant support to the government-led Senior Executive Service initiative. The economic and governance work is funded through TFLIB and LICUS grants. The World Bank has facilitated the launch of the Extractive Industries Transparency Initiative in Liberia, the secretariat of which is housed in the Ministry of Finance, a project that seeks to bring transparency within the context of economic revitalization. Additional support is provided through smaller trust funds for employment generation, environmental conservation projects, investment reform, and capacity development of the national statistical system. The Road Ahead In light of the arrears clearance and following the Government’s completion of Liberia’s Poverty Reduction Strategy Paper (PRSP), which is expected in June 2008, a full World Bank Country Assistance Strategy (CAS) will be prepared for late 2008. The CAS will elaborate a program of International Development Association (IDA) post-conflict assistance to Liberia until 2012. For information about World Bank assistance in Liberia, please refer to All Projects. International Finance Corporation (IFC) and Liberia IFC’s strategy in Liberia is, through its post-conflict initiative, to support economic recovery by helping to improve the investment climate, strengthening the domestic financial sector, supporting private participation in infrastructure and financing select private sector companies. IFC’sinvestment climate reform program focuses on the key issues hindering investment . Activities include re-draft of the investment code, reducing informality by easing business registration processes , creation of the Liberia Better Business Forum for public-private dialogue, and implementing reforms to improve “Doing Business” rankings and assist qualification to the Millennium Challenge Account. IF C is committed to assisting Liberia’s reconstruction and development strategy which, among other objectives, aims at developing the electricity sector to deliver economic growth and ensure general access to electricity. The sustainable and bankable transaction structure is a PPP with public and private sector investments. GoL cannot directly meet the public financing and IDA credits are not immediately available. To assist GoL in meeting the public financing obligations, IFC applied for and received US$5mm GPOBA grant support. The a vailability of donor funding for the public sector financing would reduce the tariffs to affordable levels and increase electricity access for pro-poor economic growth. In conjunction with the Ministry of Agriculture, IFC PEP Africa has completed a proactive review of Liberia’s oil palm resources and potential for new (nucleus and outgrower) investment opportunities and provides specific support in revitalizing the sector . IFC recently completed appraisal of a US$10 million loan investment to Salala Rubber Company to replant/expand the plantation and upgrade social and environmental infrastructure. An Investment Review Meeting is scheduled for April 2008. Donor coordination Donor coordination is particularly strong among the key donors active in Liberia. These donors – the Bank, the United States, the IMF, the African Development Bank, and the European Commission – co-hosted a two-day Liberia Partners Forum in Washington, D.C. in February 2007. The Liberia Partners Forum 2007 strongly endorsed the Government’s reform program and pledged both significant development assistance and debt relief as Liberia moves from a short-term relief to a long-term development agenda. The Bank is active in the Liberia Reconstruction and Development Committee (LRDC) – the government- led body that coordinates the implementation of the national development agenda both within Government and with donors. The LRDC is organized around the four pillars of the I-PRSP including Security (I), Economic Revitalization (II), Governance & Rule of Law (III), and Infrastructure& Basic Services (IV). The Bank is actively engaged as vice chair of the Economic Revitalization Working Group (along with the U.S.) and the Basic Services/Infrastructure Working Group (along with China), and is a member of the Governance/Rule of Law Working Group. The Bank works closely with and coordinates with the large U.N. presence in Liberia, in particular the U.N. Mission in Liberia (UNMIL) and UNDP. In addition to working together on emergency infrastructure repairs funded by the Bank, UNDP administers a number of other Bank financed emergency projects. Working in collaboration with UNMIL and UNDP, the Bank has embarked upon a unique and innovative solution to emergency infrastructure repairs within a post-conflict environment: the Bank provides the funding; UNMIL engineering battalions provide the heavy equipment, and UNDP administrative support. In line with the principles of harmonization and coordination, the Bank held extensive consultations with the U.N. system and other development partners during the preparation of the Bank’s Interim Strategy Note (ISN) for Liberia. Contacts Ishac Diwan
Country Director
World Bank Accra Office
69, Dr. Isert Road
Accra , Ghana
Tel: 233-21-229-681
Fax: 233-21-227887
Email: Idiwan@worldbank.org Ohene Nyanin
World Bank Monrovia Office
Bright Building
Sekou Toure Ave. ( UN Drive) and Gibson Streets
Monrovia, Liberia
Tel: +231-606-967
Email: Onyanin@worldbank.org Michelle C. Keane
Acting Country Program Coordinator for Liberia
World Bank
1818 H Street, N.W., MSN J8-806
Washington , DC 20433
Tel: 202 473 2534
Fax: 202 473 5139
Email: Mkeane1@worldbank.org Errol George Graham
Senior Economist
World Bank
1818 H Street, N.W. MSN J9-903
Washington , DC 20433
Tel: 202 458 4671
Fax: 202 473 8136 Asmaou Diallo-Bah
Sr. Country Program Assistant for Liberia
World Bank
1818 H Street , N.W.MSN J8-806
Washington , DC 20433
Tel: 202 473 6046
Fax: 202 473 5139
Email: Adiallobah@worldbank.org | 
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