Turning Over ‘Totally Reborn’ M&E Ministry -Paye Bows Out Gracefully, Proudly After Ouster

MONROVIA  – Wilmot Paye, former Chairperson of the ruling Unity Party, has finally returned over his official duties as Minister of Mines and Energy to a new administration named by President Joseph Boakai in a well-attended ceremony last weekend. Paye’s sudden dismissal has sparked widespread speculation and concern due to the fact that he was widely regarded as one of the best-performing cabinet ministers in the Boakai administration, and his dismissal came without explanation, thus fueling rumors of a high-stakes investment deal gone sour. The move has sent shockwaves through the mining sector, with many wondering what drove the president’s decision and what it means for the country’s economic prospects. But last week, he turned over and made a number of remarks exalting is two-year stewardship. THE ANALYST reports.

Minister Wilmot Paye has been lavishing praises on his two-year stewardship at the Ministry of Mines and Energy.

In a speech delivered at the official handover ceremony, Paye recalled the challenges inherited by his administration, including derelict infrastructure, limited technical capacity, and outdated policy instruments.

He asserted: “Exactly twenty months ago, we assumed office as Minister of Mines and Energy. I am extremely grateful to GOD ALMIGHTY for HIS sufficient grace and guidance. I thank the President of Liberia for the confidence reposed in us to steer the affairs of two of the most critical drivers of our economy: the Energy and Mineral Sectors.”

However, through dedicated efforts, the Ministry has made substantial strides in improving electricity generation, increasing access to energy, and promoting transparency in the mining sector.

Paye noted that electricity supplies are becoming stable, load shedding is vanishing, and generation capacity is increasing.

He also highlighted the launch of solar power projects, expansion of electricity access to other regions, and the vetting of proposals from Independent Power Producers.

In the mineral sector, Paye reported that the Ministry has analyzed new geological information from the China-sponsored Liberia Mineral Resource Survey, shedding light on the country’s mineral resource potential.

He also noted the establishment of 15 County Mine Offices, promulgation of a new fee structure, and the digitalization of licensing to improve performance.

Paye emphasized that the Ministry’s budget has grown from $2.7 million in 2023 to $6.1 million in the draft budget for FY 2026, with revenue generation exceeding projections.

He attributed the success to the commitment, dedication, and resolve of the Ministry’s team and employees.

“We are turning over an institution that is totally reborn, with the express optimism that one day, very soon, this Ministry will continue along this progressive trajectory, laboring to unlock the full potential of Liberia’s Energy and Mineral sectors,” Paye stated.

Paye expressed gratitude to President Joseph Nyuma Boakai for the opportunity to serve and acknowledged the dedication of the Ministry’s team and employees.

He  highlighted the significant progress made in the Energy and Mineral Sectors during his twenty-month tenure.

“We are turning over an institution that is totally reborn, with the express optimism that one day, very soon, this Ministry, this important arm of the Executive Branch, will continue along this progressive trajectory, laboring to unlock the full potential of Liberia’s Energy and Mineral sectors,” Paye stated.

Paye recalled the challenges inherited by his administration, including derelict infrastructure, limited technical capacity, and outdated policy instruments.

The former Minister told the story about his tenure: “We assumed leadership during a difficult period. The Transition had just ended. Earlier, as a member of The Joint Presidential Transition Team (JPTT), we had spearheaded the Energy and Petroleum Cluster Working Group, a team of some forty-seven professionals. The task was to “assess the current composition, status, structure and operations of the Ministry, Agencies and Commissions across these sectors”.

According to the findings contained in the Energy and Petroleum Sector Assessment Report of January 10, 2024 which was submitted to The Joint Presidential Transition Team (JPTT), “The findings would then inform decisions and policy measures which the new administration should consider in tackling problems within each sector, including the development of a work plan for the short, medium and long terms that is aligned to the President’s six-pillar ARREST Agenda”.

The findings were startling, he said, recounting them: Infrastructure was derelict, with no electricity, no Internet services, almost all of the offices were without basic stationeries, computers and their accessories and other related equipment; technical capacity was despicably limited, particularly in the Engineering and Geosciences, with some 220 volunteers in the Inspectorate Division of the Ministry, posing what the Assessment Report describes as “a significant risk to the mineral sector”;  License issuance, a key regulatory function of the Ministry, “was performed by the Ministry of State for Presidential Affairs” according to the findings; Policy instruments had become outdated; Regulatory roles were splintered across different institutions, often leading to overlapping and tensions among entities, and resulting into a larger public sector bureaucracy, coordination issues, inefficient regulation as well as underperformance of the potential of the Energy sector; No regulation for underground mining; and Geological/Hydrological information had become outdated, as the existing data was obtained in the 1970s and had since not been updated, and except for the St. Paul River, the country’s hydroelectric potential remains largely unknown.

He continued: “No production records for precious minerals and other natural resources; LEC Board was not fully constituted, with the Chairman of the Board also acting as Chief Executive Officer(CEO) following his appointment by the same Board upon expiration of the ESBI Management Services Contract, with a monthly salary of US$17,500.00 under a World Bank arrangement; LEC had a Chief Operating Officer(COO), a foreign national, who received US$26,655.00 as monthly salary under the same World Bank arrangement; Organizational structure in use at LEC was not approved at any time, either by a Board or other means; Total installed electricity generation capacity stood at 161MW: 88MW installed capacity for Mt. Coffee Hydro Power Plant, 38MW for Bushrod Thermal Plant, 35MW of imports from Cote d’Ivoire(8MW of Cross Border Import+27MW of CLSG Import); Mt. Coffee Hydro Plant’s capacity was reduced to 66MW as a result of the 2021 fire incident that destroyed the stator compartment of one turbine(Unit 1).

“Total electricity generation in Dry Season stood at 91MW, with LEC required to settle import bills of US$13m in arrears to CI-Energies, purchase LFO, HFO, lubricants and stock of basic spares; Consistency in base and peak load demands, projected to reach 104.9MW in 2024, requires optimizing the network’s capacity to avoid massive load shedding; Because of high technical and commercial losses, LEC was collecting only about 50% of revenue from the energy generated; Transmission infrastructure was still grossly inadequate, with 9 of the 13 substations situated in Montserrado County, 1 in Bomi County, and 3 in Margibi County, respectively; LEC had 214,314 active prepaid customers, 59,141 dormant prepaid customers, and 620 postpaid customers on the grid; LEC had a total of 68,993 meters in stock; Jungle Energy Power(JEP) and LIBENERGY were the only two(2) private distributors, and The already inadequate three-member Board of Commissioners of the Liberia Electricity Regulatory Commission(LERC) was reduced to two(2), with no approved organizational structure.

“Contrary to the Act establishing it, LERC’s budget was not approved by the Legislature, with no financial statements provided; The Rural and Renewable Energy Agency(RREA) also had an incomplete Board; While solar energy potential was consistently high across Liberia with an average of 1,712kWh per square meter per year, there is no known solar energy production facility; The Liberia Petroleum Regulatory Authority(LPRA) had only two(2) members on its five-member Board; Despite an unsuccessful bid round in 2020, there was no progress to date; No International Oil Companies (IOCs) were operating in Liberia as at the time of the Assessment Report; In six years, no Reconnaissance and Exploration rights or license was issued, with no new seismic data generated throughout this period while the available data was generated as far back as 2013; At the Liberia Petroleum Refining Company(LPRC), the number of employees increased from 376 in January 2018 to 672; Petroleum importers did not store their own products but instead stored products for importers and collected fees from them, a function of the LPRC; and LPRC’s storage capacity thus reduced from 61,000 metric tons to 52,976 metric tons due to an earlier Government decision to give Bea Mountain Mining Company(BMMC) half of LPRC’s storage tank farm to construct a mini terminal exclusively for BMMC’s use.”

However, through dedicated efforts, the Ministry has made substantial strides in improving electricity generation, increasing access to energy, and promoting transparency in the mining sector .

“Our nation’s mineral wealth, if managed effectively, has the potential to transform Liberia and lift countless people out of poverty,” Paye emphasized, highlighting the country’s rich mineral resources, including gold, diamonds, and iron ore.

The Ministry has strengthened its regulatory framework, introduced new fee structures, and enhanced local content requirements. “We have established 15 County Mine Offices, recruited 30 professionals, and assigned Resident Geologists and Resident Mining Engineers to support mining activities,” Paye noted.

Paye also emphasized the importance of transparency and accountability in the mining sector. “We cannot continue to award our mineral resources for a token,” he said. “We must ensure that the wealth from our resources benefits the people of Liberia, not just a few.”

Buy today’s edition of The Analyst for the full statement of Hon. Paye’s turning over.