Current News & Events
Signature of a Loan Agreement for financing of Feeder and Agricultural Roads Project (Phase III) in Grenada
A Loan Agreement was signed today in St. George's, Grenada, between the Government of Grenada and Kuwait Fund for Arab Economic Development whereby the Fund will extend a loan of Kuwaiti Dinars four million (KD. 4,000,000/-), equivalent to about 13.6 million US$, to contribute in financing of Feeder and Agricultural Roads Project (Phase III) in Grenada. It is worth mentioning that in extending its loans and developmental assistance, Kuwait Fund depends exclusively on its own resources.
The Loan Agreement was signed on behalf of Grenada by His Excellency Dr. the Rt. Hon. Keith C. Mitchell, Prime Minister and Minister of Finance and on behalf of the Fund by Mr. Ghanem Sulaiman Al-Ghenaiman, Deputy Director-General of the Kuwait Fund for Arab Economic Development. Mr. Abdullah Al-Musaibeeh, Regional Manager for Latin America and Caribbean Countries at Kuwait Fund attended the signing Ceremony.
The Project aims to support the economic and social development of Grenada, through improving access for exploitation, processing, transport and export of agricultural products, improving access to touristic sites and facilitating rural residents' access to employment and social services, by providing economic and safe transport in all weather conditions.
The Project comprises of the reconstruction and improvement of about 16.5 km of feeder and agricultural roads and bridges in various parishes of the Island to bituminous or concrete tertiary road standards with 3.8 - 5.5 m width including shoulders or side drains, and drainage and other structures. The Project also includes the consultancy services for the preparation of detailed design and supervision construction works and institutional support for the Project Implementation and Management Unit. The Project is expected to be completed by 2019.
The total cost of the Project is estimated at about East Caribbean Dollar 57.5 million, the equivalent of about KD. 6.3 million, of which the foreign currency is equivalent to about KD. 4.2 million which represents about 67% of the total cost of the Project. The Fund's Loan will cover about 95% of the costs of the Project, whereas the Government of Grenada will provide the remaining balance of the cost and all necessary funds to cover any other expenses.
The Loan will be for a period of 24 years including 4 years grace period, and will be amortized in 32 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 2.5% per annum, in addition to 0.5% per annum to cover administrative costs and other expenses incurred in the implementation of the Loan Agreement.
Upon signature of this Loan Agreement, this Loan will be the 7th loan extended by the Fund to Grenada, considering that the Fund had already extended 6 loans to it, totaling about KD 13 million (equivalent to about US$ 44 million). The Fund has also extended to Grenada 3 Technical Assistances the total value of which is about KD 371,000 (equivalent to about US$ 1.261 million) to finance the Technical and Economic Feasibility Studies for various projects, two of which were fully withdrawn, whereas the third one, in the value of K.D. 72,000 , was merged into a Loan that the Fund had provided to finance a road project in the country.