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Thursday, February 29, 2024

HOUSE RATIFIES US$35M INVESTMENT INCENTIVE AGREEMENT

Date:

LIBERIA – The Plenary of the House of Representatives has unanimously voted to ratify an Investment Incentive Agreement between the Republic of Liberia and G5 Plus (Liberia) Incorporated.

G5 Plus Breweries is a corporation duly organized, registered and existing under the laws of the Republic of Liberia.

The Plenary’s decision followed a report from the committees on Investment and Concession; Commerce & Industry: and Judiciary.

Recently, President George M. Weah submitted to the House of Representatives for ratification an Investment Incentive Agreement between Liberia and G5 Plus.

In the President’s communication, he stated that the agreement is for the development, expansion and operation of beverages, and packaging materials production plant for the beverages.

When passed according to the Liberian leader, the following products will be produced by the investor under natural and mineral water (bottled water), carbonated drinks, including soft drinks (can and plastic bottles), malt and energy drinks; as well as an alcoholic beverage, including beer, stout, breezer, among others.

In the committees’ report to the Plenary on Thursday, October 27, it stated that granting the Investment Incentives to G5 Plus (Liberia) Incorporated, to engage in production activities, will have significant benefits to the local economy, including the provision of jobs.

The Joint Committee further noted that the expansion of G5 Plus (Liberia) Incorporated existing plant, to include the production of alcoholic beverages in the Parker Paint area along the Monrovia-Kakata Highway, Montserrado County, will serve as a source for economic growth, attract more foreign direct investments, create jobs, add value to products and directly benefit the lives of citizens within the concession area and Liberia at large.

However, the Joint Committee admonishes that the Investment Incentive Agreement remains in accordance with the Investment Act of 2010 and Section 15 of the Revenue Code as amended.

The Joint Committee also takes cognizance of the following provisions stipulated in the Investment Incentive Agreement:

Section 3 (Terms of Agreement):

That commencing on the effective date, the term of the agreement shall continue for a period of fifteen (15) years.

“That the project area shall be approximately ten (10) acres of land acquired under the lease that is located in Paynesville, Parker Paint, Montserrado County

Section 6 (Conduct of Operations):

That the investor shall develop, expand and operate a Beverages and Packaging materials production plant for: natural and mineral water (bottled water), carbonated drinks, malt, energy drinks, beer, stout, breezer, etc.

That the investor shall commence the expansion project for the production of products no longer than the second (2nd) anniversary of the effective date and that the investor shall make a total investment of at least thirty-five million United States dollars (U$35,000,000) during the term in furtherance of investor’s activities and operations.

Section 7 (Health and Occupational Safety):

That the investor shall provide health coverage for its employees in accordance with law and generally accepted health and sanitation procedures.

That the investor shall ensure that the project area is supplied on a regular basis with clean and safe drinking water in accordance with law or, in the absence of law, the number of common water sources for the project area shall be determined by agreement between the parties.

Section 8 (Employment and Training):

That in no case the Investor shall hire non-Liberian nationals for unskilled labor positions and that the Investor shall not employ or be caused to employ any minor, as defined by law and the United Nations Convention on the Rights of the Child, for any purpose.

That the investor shall give preference for employment at all levels of financial, accounting, technical, administrative, supervisory and senior management positions and other skilled positions to qualified Liberians.

That no later than the fifth anniversary of the effective date, the Investor shall cause Liberian nationals to hold at least fifty percent (50%) of the ten (10) most senior management positions.

The agreement states that the construction and operations of the plant will result in the employment of about five thousand (5,000) indirect jobs and that, no later than the fifth (5th) anniversary of the effective date, the investor shall provide direct employment of at least two hundred fifty (250) skilled and unskilled positions.

The investor, the agreement says, will provide on-the-job training and vocational training necessary for employees to undertake their work competently and will also provide them with opportunities to learn new techniques that will allow such employees to progress into positions requiring more complex and demanding skills.

It notes that the investor, beginning on the commencement date, shall provide annually through a company-administered grant, U$10,000 (Ten Thousand United States dollars) payable throughout the term for high school graduates and university scholarships for study in Liberia to Liberian students within the project area.

That compensation paid or provided to employees of investor, employees’ benefits received by them, and employees’ working conditions provided to them, shall be in accordance with the law, the agreement indicates.

Following the reading of the Committee’s report, Bong County District #2 Representative, James Kolleh, made the motion to have the Investment Incentive ratified. LINA

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