EDITORIAL: GoL’s Clarity about Controversial HPX Agreement Trending is urgently needed

IT HAS BEEN reported times without number that the Government of Liberia and the High Power Exploration (HPX) are initiating the consummation of a deal that would give the latter access to use the Yekepa-Buchanan railroad to ferry its ores from Guinea to the port of Buchanan. It is reported at least officially that, if consummated, the deal will provide substantial economic push for the country – in revenue generation and in job creation.

DESPITE THE OFFICIAL narratives, there pundits who strongly disagreed, contending that HPX is a scam and its proposals for a deal are unimplementable. One account says the HPX now faces the stark reality that Guinea’s military government which will not allow HPX’s iron ore to be evacuated through Liberia. For decades, it is said, Guinean authorities have maintained a clear policy: any company seeking to exploit Guinea’s mineral resources must invest in domestic infrastructure. According to sources, this policy is rooted in national development strategy—after all, once the resources are depleted, only the infrastructure remains to benefit Guinea.

IT IS SAID that the HPX once had privileged access to the previous Guinean administration under Alpha Condé, but that era is long gone. With the current military government refusing to engage on the bi-lateral agreement signed under Condé, sources indicate that HPX finds itself shut out of Guinea’s decision-making circles. This has forced HPX to shift its focus to Liberia, where it believes it can manipulate government officials into reshaping the rail access landscape in its favor, according to the sources.

ANOTHER ACCOUNT REVEALS that HPX’s real play is to remove ArcelorMittal as the rail operator and replace it with an entity it can control so that once the scheme achieved, HPX will install its own handpicked rail operator – under the guise of “independent” management, HPX will introduce a company that serves its interests. It is also accused that the deal will be use by the HPX to jack up rail access fees and that once AML is no longer the operator, HPX’s chosen entity will impose exorbitant fees on the company, undermining its operations.

AN EXPERT WHO followed the matter opines that sealing a deal with HPX, it will use Liberia as a pawn in its MIGA insurance scheme. The company would have positioned itself to claim $200 million under the World Bank’s MIGA political risk insurance if Guinea refuses to let its iron ore be transported through Liberia. This means HPX will extract financial compensation without even using the rail it claims to need access to.

THESE ANALYSES OF the contemplated deal with HPX are grave and concerning to be ignored by a government of Liberia which needs as many concessionaries as possible to help address this backward nation’s woes though at the same time sane and thoughtful not to be entrapped by scammers. 

THIS IS NOT to say that all what is being said against HPX is correct and factual. The problem is, if the HPX deal is better than what is being said about it, the Government needs to say it. If it is indeed the fact being portrayed, public still needs to know. Because in whatever case, ArcelorMittal which is already on ground, a good friend of Liberia, could hold onto some of its promised goodies if this HPX continues to hover over the country like a ragging ghost. No investor operates effective in an uncertain environment. And certainly the Government’s protracted silence and dillydally over the issue could paint a gloomy picture of the country’s investment environment with potential to keep concessionaires frozen and away.