The Liberian government, under the leadership of President Joseph Nyuma Boakai, has announced the full implementation of a concession agreement with Liberia Traffic Management Incorporated (LTMI), granting the company exclusive rights to manage the nation’s vehicle and traffic systems. This decision, effective February 3, 2025, marks the culmination of a protracted legal and legislative battle surrounding the concession, originally ratified in 2018 under the previous administration of President George Manneh Weah. LTMI’s mandate encompasses a wide range of responsibilities, including traffic ticketing, vehicle registration, driver’s license issuance, and parking enforcement. The move aims to bolster investor confidence by demonstrating the government’s commitment to honoring contractual obligations.
The path to implementation was fraught with complications, stemming from a conflicting Public-Private Partnership (PPP) agreement signed with Modern Development Management Corporation (MDMC) in 2020. This agreement, signed during the Weah administration, overlapped with LTMI’s pre-existing concession, leading to a legal dispute. LTMI’s initial lawsuit against the government and MDMC was dismissed by the Civil Law Court on procedural grounds, directing the parties to arbitration as stipulated in the concession agreement. While LTMI appealed to the Supreme Court, the matter remained unresolved until President Boakai assumed office.
Upon taking office, the Boakai administration initiated a comprehensive review of the legal entanglement. The Ministry of Justice, following its assessment, concluded that the concession agreement with LTMI held greater legal weight than the subsequent PPP agreement with MDMC, citing its legislative ratification and presidential signature. This legal opinion was further reinforced by an independent investigation conducted by the Liberian Senate, which concurred with the Ministry of Justice’s findings and recommended honoring the agreement with LTMI. The Senate also pointedly criticized the Ministry of Transport for entering into the conflicting agreement with MDMC.
With both legal and legislative branches aligned in their support of LTMI, President Boakai directed the Ministry of Justice to proceed with the full implementation of the concession agreement. This directive mandates that all vehicle registrations, driver’s licenses, and related services be exclusively handled by LTMI beginning February 3, 2025. While the Liberia National Police (LNP) will continue to recognize existing valid documents, they are instructed not to honor any new registrations or licenses issued by other entities after the effective date. MDMC has been instructed to cease operations, marking a decisive end to the contentious overlap in service provision.
The government’s decision to implement the LTMI concession, while intended to reinforce legal certainty and attract foreign investment, has elicited mixed reactions from the public and stakeholders. Some applaud the move as a necessary step to uphold the sanctity of contracts and promote a stable investment climate. Others express concerns about the potential for job losses resulting from the termination of MDMC’s operations, as well as potential disruptions in service delivery during the transition period. The Ministry of Justice has emphasized that the decision is consistent with Liberia’s legal framework and its commitment to honoring contractual obligations, urging all affected parties to comply with the directive.
The transition to the new system under LTMI’s management will undoubtedly present challenges. The government has pledged to implement measures to ensure a smooth transition and minimize disruptions to vehicle registration and licensing services. The immediate future will be critical in assessing the effectiveness of the handover process and its impact on traffic management throughout the country. The ability of LTMI to seamlessly integrate its operations and provide efficient services will be closely scrutinized, as will the government’s ability to mitigate any negative consequences arising from the termination of MDMC’s involvement. The success of this transition will be a key indicator of the government’s commitment to fostering a stable and predictable business environment in Liberia.
