A Loan Agreement was signed today in Kigali t
between the Republic of Rwanda and Kuwait Fund for Arab Economic Development
whereby the Fund will extend a loan of Kuwaiti Dinars four million (KD. 4,000,000/-)
(i.e. equivalent of 13.6 million US$) to help finance of Rubengera - Gasiza Road Project.
The Loan Agreement was signed on behalf of the
Republic of Rwanda by Hon. John Rwangombwa, Minister of Finance and Economic
Planning and on behalf of the Fund by Mr. Ghanem Sulaiman
Al-Ghenaiman, Deputy Director-General of the Kuwait Fund for Arab
Economic Development.
The aim
of the Project is to enhance the economic and social development of the
North Western regions of Rwanda, and to satisfy the increasing demand for local
traffic, and promote regional trade with neighboring countries.
The Project consists of the construction of an
asphalted road between the town of Rubengera and the town of Gasiza with an
approximate length of 24 Km, 7 meters width, and two paved 1.5 - 2.0 meters
shoulders. The Project also includes feeder roads connecting the Project to
Lake Kivu to serve fishermen and tourists.
The
Project is expected to start in the first half of 2012, and to be completed by the
second half of 2015.
The total
cost of the Project is estimated at about 34.9 billion Rwanda Francs, the
equivalent of about KD. 17.1 million (about US$ 58.14 million), of which the
foreign currency is equivalent to about KD. 12.4 million (about US$ 42.16
million), which represents about 73% of the total cost of the Project. The Fund's Loan will cover about 23% of the
costs of the Project.
The Loan
will be for a period of 25 years including 5 years grace period, and will be
amortized in 40 semi-annual installments, the first of which will be due on 1st
date on which any interest or other charge on the Loan shall fall due after the
elapse of the above mentioned grace period.
The Loan
bears an interest rate at 1.5% per annum, in addition to 0.5% per annum to
cover administrative costs and other expenses incurred in the implementation of
the Loan Agreement.
By
concluding this agreement, it will be the eight Loans that the Fund provided to
the Republic of Rwanda, where the Fund previously provided five loans amounting
to 17.4 million Kuwaiti Dinars (equivalent to about 59.16 million U.S. Dollars
for financing projects in various sectors). In addition to one Technical
Assistance grant totaling about 93 thousands Kuwaiti Dinars (equivalent to
about 310 thousands United States Dollars) for financing a feasibility study in
the Roads sector.