The 64MW Mount Coffee project is estimated to cost €180m and is expected to be approved by the end of 2012.
EIB Liberia Vice President Pim Ballekom told Bloomberg that the financing is part of the bank’s several loans to sub-Saharan Africa, totaling nearly €1bn.
"The project is identified as being a very important element in regional integration, and supporting a post-conflict country," van added Ballekom.
Liberia is looking to restore infrastructure in the country that was destroyed during the 1989- 2003 civil wars.
According to the finance ministry, only 23MW of electricity is currently being produced in Liberia.
EIB also plans to invest in generation and transmission infrastructure for the 147MW Ruzizi III hydropower dam in East Africa with a loan of €100m, reported Bloomberg.
The €300m project will be located on the borders of Congo, Burundi and Rwanda on the Ruzizi River.
