Liberia’s HPX/Ivanhoe Atlantic Deal, a Recipe for Disaster, Must be averted
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LIBERIA STANDS At a critical crossroads with the temptations bartering its officialdom with foreign concessionaires flirting to lure the nation into deals that are pregnant with intrigues and complexities. Such is seemingly the decision on the HPX/Ivanhoe Atlantic deal, which many pundits consider to be having far-reaching implications for the country’s economic future. The conclusion is stark: unless the government and legislature take a firm stance to protect national interests, this deal will be a recipe for disaster. The risks are real, and the consequences of getting it wrong could be catastrophic. With the country’s history of poor natural resource management and desperation for foreign direct investment, it is imperative that the government and legislature prioritize transparency, governance, and national interests.
THE UNANIMOUS WARNING on the wall is instructive: that the current deal, as it stands, poses significant risks to Liberia’s economic and diplomatic stability. Ratifying it without written consent from Guinea could destabilize bilateral relations between the two neighbors, leaving Liberia exposed to potential diplomatic fallout. The economic implications are equally concerning, with the possibility of under-utilized rail and port capacity, sunk costs, and reputational damage. Furthermore, the deal’s characterization as ‘resource arbitrage’ and ‘corporate opportunism’ raises serious concerns about governance and transparency, which could deter potential investors.
IT THEREFORE BE said without any stupor that the potential consequences of ratifying such a deal without proper safeguards are dire. Liberia may face license revocation, formal diplomatic protests, or even security downgrades from Guinea. Moreover, contractual disputes may arise if rail and port access reserved for HPX remains unused due to absent cross-border approvals. This could lead to costly arbitration and further damage to Liberia’s reputation.
IN LIGHT OF these risks, it is imperative that the legislature, fondly referred to as the “People’s Deputies,” stands tall and ensures scrupulous interrogation of the deal. The Executive, led by the Unity Party administration, must be held accountable for prioritizing national interests over political expediency. Submitting to bad deals for the sake of making a political point or wooing investment at the general risk of the population is unacceptable.
A BETTER APPROACH would be to defer or condition ratification until HPX/SMFG delivers written, current, and verifiable authorization from the Government of Guinea. The legislature should mandate pre-ratification disclosures, including proof of Guinean consent, risk and impact assessments, and contingency plans. Moreover, hard-wiring national-interest safeguards, such as clauses for automatic suspension, multi-user access, performance bonds, and community compacts, is essential to protect Liberia’s interests.
THE TIME FOR caution is now. Liberia’s vulnerable position and desperation for foreign direct investment must not be exploited. The legislature must exercise caution and consider the recommendations outlined above. Any agreement that fails to prioritize transparency, governance, and national interests will be a betrayal of the Liberian people. The Unity Party administration must understand that the Liberian people will be watching closely, and their decision on this matter will have far-reaching consequences for the country’s economic future.
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