Overview of the Road Construction Project
Liberia’s Ministry of Public Works has announced a proposed financial envelope totaling US$363.9 million to be financed over five years (2026-2030) for a Public-Private Partnership Concession. This initiative aims to operate and maintain 225 kilometers of primary roads across Liberia’s Western and Northern Regions.
The project is being implemented by the Ministry of Public Works (MPW) as the Executing and Regulatory Agency, while Pavifort AL Associates Inc. serves as the Concessionaire responsible for financing, construction, operation, and maintenance. The project follows a Design-Finance-Build-Operate-Maintain (DFBOM) model under a Hybrid Annuity arrangement (60% EPC + 40% BOT), balancing Engineering, Procurement, and Construction (EPC) and Build-Operate-Transfer (BOT).
During a public hearing presentation before the Senate Joint Committee on Public Works, Concessions & Investment, Ways & Means, Finance & Budget, Public Accounts & Audits, and Judiciary, Public Works Minister Roland Layfette Giddings extended appreciation for the opportunity to present the proposed Public-Private Partnership Concession.
According to him, the concession represents a shift toward sustainable road asset management, blending private-sector efficiency with public-sector oversight. This aligns with the ARREST Agenda’s Infrastructure Pillar and the National Road Fund Law.
Strategic Relevance of the Project
Minister Giddings pointed out the strategic relevance of infrastructure, emphasizing that the concession corridors link four key counties—Montserrado, Bomi, Grand Cape Mount, and Lofa. Additionally, the project connects the Freeport of Monrovia to the borders of Sierra Leone and Guinea, reinforcing Liberia’s regional trade integration under ECOWAS.
The financial envelope for the total project cost of US$363.9 million is financed over five years (2026-2030). The breakdown includes:
- Pavifort AL Associates Inc.:US$218,345,261 (60%)
- Government of Liberia (Central Govt Road Fund):US$145,563,507 (40%)
The GoL Contribution/Commitment includes:
- US$46 million cashspread across FY2026-FY2028.
- US$100 million Government Payment Bond(interest-bearing, two-year maturity).
The Concessionaire Contribution/Private Financing involves:
- Private financing through shareholder loans:US$63m in 2026, US$45m by 2029.
- Repayment through toll revenues over 24 years (2027-2050)at 1.5% interest.
Projected Traffic and Toll Revenue
On Projected Traffic and Toll Revenue (commencing from 2027), the Minister highlighted the following:
- Vehicle Type Charge:
- Cars: $0.25
- Pickups: $0.50
- Annual Volume:
- Cars: 954,720
- Pickups: 38,680
Total Annual Gross Collection (2027) is estimated at US$17.65 million, with an average adjusted revenue of US$15.0 million.
Toll Revenue Allocation:
- 75%:Repayment of concessionaire contribution (including interest).
- 15%:National Road Fund (GoL share).
- 10%:Toll operations and maintenance.
Total 24-Year Toll Proceeds (2027-2050) are estimated at US$323.3 million (US$15 million per year), inclusive of a US$23 million resurfacing fund for 2045.
This revenue ensures that the corridor becomes self-financing, with toll income covering long-term maintenance and loan servicing.
Technical Due Diligence Findings
Providing key findings from MPW Technical Due Diligence (June 2025) regarding the implementor, the Minister stated that the Ministry conducted a detailed technical due diligence of Pavifort Al Associates Inc., reviewing its proposal, design package, and corporate track record across multiple West African countries.
Global & Regional Footprint
Pavifort Al Associates, registered in 2015, operates its headquarters in Freetown, Sierra Leone, with regional offices in the Gambia, Guinea, and Liberia. It plans for future expansion in Ghana, Senegal, Nigeria, and São Tomé.
International Experience
The firm has successfully executed over US$500 million in civil works, including:
- Tikonko-Kpetema-Mattru Jong Road (38 km, Sierra Leone)
- Kenema Township Roads (29.6 km)
- Kabala-Kono Highway (261 km)
- Freetown Urban Mobility Corridor (World Bank-funded)
- Conakry Transversal Road 112-115 (Guinea)
- Banjul Urban Roads Project (The Gambia) funded by the Saudi Fund for Development.
Engineering Soundness
The pavement designs meet AASHTO and ECOWAS standards, with proposed materials such as bituminous base, crushed aggregate base, and gravel sub-base compatible with Liberia’s soil profile and climatic conditions.
Geotechnical Stability: Bearing capacities and compaction results fall within 98-100% Modified Proctor standards, demonstrating structural reliability.
Drainage & Climate Resilience: The design integrates enhanced drainage structures, kerbs, and erosion control to mitigate flood impacts; culvert and bridge sizing recommendations were incorporated into the final drawings.
Traffic Forecast Validation
Pavifort’s projected 70-85% traffic performance factor aligns with MPW’s independent count and follow revenue analysis.
At the same time, on toll gate placement, the proposed locations at St. Paul Bridge, Klay, and Bo Waterside were confirmed as economically justified under MPW’s model.
Operational Capacity
Technical & Resource Capacity: The company demonstrated over 1,700 skilled personnel, 443 units of heavy machinery and plants, and full in-house design, fabrication, and quality assurance teams.
Conclusion: Pavifart Al Associates has a proven performance record across multiple countries and project types, strong technical and financial standing, and the operational experience necessary to deliver Liberia’s first PPP road concession under a Design-Finance-Build-Operate-Maintain model.