On the occasion of the 19th African
Union Summit in Addis Ababa, the Federal Democratic Republic of Ethiopia, a Loan Agreement was signed today between the Republic of Kenya 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 Loan of KD. 4.5 million) equivalent to about US$ 15.3
million) to participate in the financing of the Development of Schools
Infrastructure in North Nyamira/Borabu Project in the Republic of Kenya.
The Loan Agreement was signed on behalf of Republic
of Kenya by H.E. Prof. Amb. Sam Ongeri,
Minister for Foreign Affairs, 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 Development.
The Project aims to support
the economic and social development of Kenya by supporting and the Government’s
plans for the development, expanding the capacity and improving the quality of
primary and secondary education schools in north Nyamira and Borabu of Nyanza
Province, through infrastructure development, construction, and equipping of
buildings and workshops, new educational service facilities, and additional
students dormitory in 27 existing primary and secondary schools, so as to
enhance the access and to meet the growing demand for student enrollment in
primary and secondary education.
The Project comprises of the construction of new education
buildings and facilities and services in 27 existing primary and secondary
schools, and supply of educational furniture, equipments and tools for the new
facilities, in addition to the institutional support for the Project
Implementation Unit and the consultancy services for design and supervision.
Total
cost is estimated about 1,881
million Kenyan Shilling, equivalent to about K.D. 6.9 million of
which about K.D. 5.042 million and representing about 73% of the total costs
are in foreign currency. The Fund's Loan will cover about 66% of the cost of
the Project.
The Loan matures over a period of 24 years
including 4 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.
The signing of
this Loan brings to 5 the number of loans extended by Kuwait Fund to the Republic
of Kenya, where the Fund previously provided 4 loans totaling about 19.9 million
Kuwaiti Dinars, equivalent to about US$ 79.9 million, to participate in the
financing of projects in transport, agricultural, heath and other sectors of
the economy, besides one technical assistance of
about K.D. 232,000