Monrovia, Liberia – In a strong letter to departing U.S. Secretary of State Antony Blinken, Senator Jim Risch, the chairman of the U.S. Senate Foreign Relations Committee, raised grave concerns over one of High Power Exploration’s (HPX) main offers to the Liberian government.
The letter highlights HPX’s controversial attempt to seize ownership of the Buchanan-Yekepa railway under the pretense of creating a National Rail Authority, as well as its purported $5 billion investment pledge that has not yet materialized.
High Power Exploration (HPX) reportedly offered the Liberian government a $25 million deal in August 2024 to establish a National Rail Authority; the transaction is anticipated to be concluded in Australia.
Following HPX’s years-long advocacy and pledge to provide financing for the establishment, President Boakai subsequently declared the creation of a National Railway Authority in the hopes of obtaining millions of dollars in funding through the Countering People’s Republic of China Influence Fund (CPIF) implementation.
Senator Risch voiced reservations in his letter regarding the fund’s execution, claiming that it lacks strategic direction, falls short of Congressional purpose, and does not sufficiently address the mounting danger posed by China.
He claimed to have vetoed a CPIF project in September that supported Liberia’s creation of a National Railway Authority. The project would not make Liberia more competitive with Chinese-backed railways in neighboring Guinea or mining activities in the nation, according to the Senate Foreign Relations Committee’s supervision, which included an on-site study in Liberia.
To facilitate the export of one of the biggest undeveloped high-grade iron ore reserves in the world, the Chinese are actively pushing a $15 billion railway project in Guinea that would link the nation’s Simandou iron ore-rich resources to a deep-water port.
Additionally, this letter accused U.S. embassy employees of exploiting the CPIF’s flexible guidelines to fabricate a narrative or link against China (PRC, People’s Republic of China) and of utilizing the initiative for purposes unrelated to its true objectives or not initially intended.
“Embassy staff acknowledged using the CPIF’s expansive guidelines to create a counter-PRC nexus and to repurpose the initiative to address unrelated objectives,” Senator Risch stated. “Liberian officials later confirmed, in writing, that the intervention was unnecessary,” he told former Secretary of State Blinken.
Despite having no legally enforceable agreement with Liberia, High Power Exploration (HPX) paid $30 million to the government of Liberia in March 2022 as part of an updated Framework Agreement that contained a “upfront” payment arrangement. This payment was made without the consent of the legislature.
Samuel Tweah, the former finance minister, defended the government’s acceptance of this payment by pointing to the difficulties in increasing the salary of governmental personnel at the time. Suspicions of possible corruption and inquiries over the payment’s relationship to the rejection of ArcelorMittal’s deal were sparked by worries regarding the legality and transparency of taking such payments without parliamentary confirmation.
HPX announced a multibillion-dollar investment proposal in Liberia, led by billionaire mining tycoon Robert Friedland. The goal of this well reported statement was to advance its Simandou North project in Guinea and strengthen its position in the iron ore market. On closer inspection, though, a number of this investment plan’s claims are still unsubstantiated. Opponents claim that HPX has not demonstrated any concrete proof of its dedication, which raises questions about a possible “scam” to boost political and popular support.
The focus of HPX’s lobbying activities has been the Buchanan-Yekepa railway, which was restored at a cost of more than $800 million during Liberia’s civil war. The company vigorously advocated for the establishment of a “National Rail Authority” to oversee the railway.
It outlined this idea as a step toward shared infrastructure and pledged $20 million to it. But according to insiders, this approach may allow HPX to gain excessive influence over the railway, putting Liberia’s interests at a disadvantage.
In order to increase infrastructure investments and increase iron ore output, ArcelorMittal Liberia (AML) proposed a new Mineral Development Agreement (MDA) in 2021. The MDA’s ratification was halted, nonetheless, by HPX and others who vehemently opposed AML’s operation of the railway and launched a disinformation campaign against politicians and the general public.
While conveniently ignoring AML’s significant efforts in restoring the railway after years of wartime ruin, HPX asserted that AML’s ownership over the railway was monopolistic. The economy of Liberia has been impacted by the MDA’s halting.
Senator Risch’s letter highlights the need of exercising due diligence when interacting with foreign investors and serves as a warning to the Liberian government not to be duped by lofty claims that lack supporting documentation. The vital infrastructure and abundant natural resources of Liberia should be used for the sake of the country rather than as instruments for opportunistic exploitation.
On the surface, the concept of a National Rail Authority might seem like a good idea, but it would weaken Liberia’s control over vital infrastructure. It is important to examine HPX’s $20 million commitment to this project. Instead of serving the interests of foreign firms, the government must make sure that the railway continues to be a national asset that benefits Liberians.
The involvement of the U.S. senator must serve as a wake-up call for Liberia’s authorities to put responsibility, openness, and national interests first when interacting with foreign businesses.
The need of being vigilant in protecting Liberia’s resources and infrastructure is underscored by HPX’s unsupported investment claims and its attempts to control the country’s railway network.
