On February 8, 2007, the African Capacity Building Foundation (ACBF) signed a Grant Agreement of US$ 1.8 million with the Government of the Republic of Liberia in support of the Liberian Macroeconomic Policy Analysis Capacity Building Project (LIMPAC). The Grant, to be disbursed over a four-year period, aims at building the Liberian Government's capacity in macroeconomic policy analysis, formulation and management. The country's long-drawn civil war disrupted its economic activities, severely reduced growth and weakened institutional and human capacity across government institutions, the private sector and civil society.

Speaking at the signing ceremony, Dr. Soumana Sako, ACBF Executive Secretary, emphasized the importance of the intervention, a support that was approved within the context of the Foundation's expanded mandate. Despite previous and other on-going ACBF-funded initiatives that benefit Liberia, LIMPAC is the first full-fledged support of the Foundation to the country. Also, the grant agreement was signed at a critical period in Liberia's drive towards reconstruction when the inflow of foreign humanitarian and development aid to the country calls for a robust institutional and human capacity building for a sound policy and institutional framework that will form the basis for sustainable development of the country.

Dr. Sako stressed the importance of post-conflict reconstruction and national reconciliation in Liberia, a twin process requiring sound macroeconomic policies underpinned by transparency, accountability and equity in the distribution of national resources. In this regard, he pointed out that ACBF support would play catalytic and complementary roles through the building of individual, institutional, and societal capacity. He further indicated that efforts were underway to assist the Governance Reforms Commission and the Liberian Civil Service Agency. He concluded by expressing his hope that the Foundation would collaborate with stakeholders to develop a country program in response to the intersectoral capacity challenges in the country by the end of the year.

Honourable Dr. Toga McIntosh, Minister of Planning and Economic Affairs of the Republic of Liberia, on his part thanked ACBF for the financial support on behalf of his Government and delegation. In transmitting the message from H.E. President Ellen Johnson-Sirleaf of Liberia, Dr. McIntosh conveyed the President's respect for ACBF's activities in the area of capacity building. Despite the fact that the signing of the grant took more than 8 years to materialize, the Minister commended ACBF for keeping the project alive in a context of civil war and unrest, which shows the Foundation's commitment to his country. Furthermore, he highlighted the centrality of this grant agreement at a time when Liberia has initiated the implementation of its interim poverty reduction strategy (PRS). He indicated that the grant agreement responds to two strategies underlying the PRS, namely (i) the search for strategic partnerships in Liberia's reconstruction efforts, which is premised on the harmonization of national interests with Liberia's partners and its development priorities, as well as the need to ensure mutual respect, accountability, transparency, and ultimately higher performance; and, (ii) maintaining stability by securing peace, revitalizing the economy, ensuring the rule of law and good governance, and rehabilitating basic services and infrastructure. He underscored the fact that capacity is the driving force to achieve both strategies. Finally, the Honourable Minister expressed the Government of Liberia's satisfaction and approval of the project since macroeconomic policy formulation and management is one of the priority capacity building areas. He pledged on behalf of the Government of Liberia to promptly fulfill the conditions of the grant agreement and maintain the same degree of commitment during the implementation of the project.

The LIMPAC project was approved by ACBF in 1998. However, renewed conflict, which persisted throughout the 1998-2003 period, stalled its implementation. Following the signing of the Accra Comprehensive Peace Agreement (CPA) in 2003 and the 2006 democratic elections _ which saw Africa's first-elected woman Head of State, President Ellen Johnson-Sirleaf, the implementation of LIMPAC has proved to be timely as Liberia builds up momentum in its reconstruction efforts. The ACBF grant will go towards the building of a critical mass of expertise in the priority area of macroeconomic and financial policy analysis and management.

The project is thus expected to address the key institutional and human resource gap resulting from several years of conflict and war in Liberia.