Signature of a Second Loan Agreement in the Republic of Senegal
Sunday, 15 July 2012
On the occasion of the 19th
African Union Summit in Addis Ababa, the Federal Democratic Republic of
Ethiopia, a second Loan Agreement was signed today between the Republic of
Senegal and Kuwait Fund for Arab Economic Development, in the gracious presence
of His Highness Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah, the Amir of the State
of Kuwait, as
the Guest of Honor,whereby the Fund shall make a Second
Loan of KD. 5,000,000/- (i.e. about US$ 17.5 million) to assist in covering the
increased costs of the Dakar Northern Slip Road Project (Section 3) in the
Republic of Senegal.
The Second Loan
Agreement was signed on behalf of the Republic of Senegal by H.E. Mr. Amadou Kane,
Minister of Economy and Finance, and on behalf of the Fund by H.E. Sheikh Sabah Khaled Al-Hamad Al-Sabah, Deputy Prime Minister and
Minister of Foreign Affairs and Minister of State for Cabinet Affairs and Chairman, Board of Directors of Kuwait Fund for Arab Economic
Project aims to relieve the congestion on the northern entrances of Dakar, to
improve the link between the northern suburbs and the City center, and the link
between Dakar and the other Regions of Senegal by reducing travel time and
vehicle operating costs.
The Project comprises the construction of the Third Section of
the Northern Slip Road of Dakar between the Golf Club at Guediawaye and Diam
Niadio Junction with RN1 and RN2, for a length of about 33 km, to a 4-lanes
road of 2x7m width with a 2.0 m central island, 1.5 to 2.0 m wide shoulders,
roundabouts, access roads and railway overpass. The Project also includes
environmental protection works and the consultancy services for the feasibility
study, detailed engineering design, preparation of tender documents and
supervision of construction works.
The total cost of the Project was
estimated during the evaluation of the project in 2005 at about FCFA 20.7 billion,
i.e. equivalent to KD. 12.3 million, of which the foreign currency is the
equivalent of about KD. 8.6 million.
It was assumed that the First
Loan with a total amount of KD. 5 million will cover 41% of the total cost of
the project, while the Government of Senegal will cover the remaining costs of
the project.The detailed engineering
designs were completed by the end of 2009, yet the revised studies had clarified
that the increasing costs of the project had reached FCFA 47 billion,
equivalent to KD. 28 million as a result to the international increase in
petrol and unit prices in similar road projects in Senegal, in addition to the
modifications to the project specification in its final steps.
The integrated Loan – including
the First and the Second Loan – shall be for a period of 25 years, including a
grace period of 5 years amortized in 50 semi-annual installments.
bears an interest rate at 2% per annum, in addition to 0.5% per annum to cover
administrative and other expenses incurred in the implementation of the Loan
Upon signature of this Loan
Agreement, this loan will be the 27th one accorded by the Fund to
the Republic of Senegal to finance projects in different sectors.The total amount of the previous 26 loans is
estimated at about KD. 80.8 million (i.e. about US$ 282.8 million).The Republic of Senegal had also obtained 3
Technical Assistance Grants from the Fund for financing the technical and
economical feasibility studies for the same projects, the total value of them
is about KD. 663,000/- (i.e.US$ 2.32 million).