Current News & Events
Signature Of A Loan Agreement In The Republic Of Cape Verde
A Loan Agreement was signed today in Niamey between the Republic of Cape Verde and Kuwait Fund for Arab Economic Development, whereby the Fund shall make a Loan of Kuwaiti Dinars two million nine hundred thousand (KD 2,900,000) (i.e. about US$ 10.0 million) to help finance the Construction and Rehabilitation of Educational Institutions Project in the Republic of Cape Verde.
The Loan Agreement was signed on behalf of the Republic of Cape Verde by H.E. Mrs. Cristina Duarte, Minister of Finance, and on behalf of the Fund by Mr. Hamad S. Al-Omar, Deputy Director-General of the Kuwait Fund for Arab Economic Development.
The Project aims to support the social and economic development of Cape Verde, by improving both access to, and quality of education, and also promoting educational institutional development, through expanding the existing installations and construction of new secondary schools.
The Project comprises the construction and equipping of Eight Educational Institutions; namely six Secondary Schools and two Elementary Education Teacher Training Schools.
The Project includes the following components:
A. Civil Works
* Construction and rehabilitation works for the following schools:
1. Bovista Secondary School
2. Brava Secondary School
3. Paul Secondary School
4. Maio Secondary School
5. Mosteiros Secondary School
6. Tarrafal de Sao Nicolau Secondary School
*Construction and rehabilitation of two Elementary Education Teacher Training Schools in Assomada and Mindelo with complete facilities.
B. Supply and installation of Furniture and Educational Equipment
- Project Management
D. Curriculum Revision
E. Land Acquisition
F. Consultancy Services:
- Detailed design
- Preparation of tender documents and assistance in analysis of tenders
- Supervision of Construction
The execution of the Project is expected to commence in the mid 2009 and is expected to be completed by 2011.
The total cost of the Project is estimated at about 2.064 Billion Shcoudou (i.e. about KD 6.7 million) of which the foreign currency is equivalent to about KD 5.87 million which represents about 87.5% of the total cost of the Project. The Fund's loan will cover about 43.2% of the total costs of the project, and the Saudi Fund will cover 43.2% of the total cost of the project, whereas the Government of Cape Verde is engaged to cover the remaining costs of the Project.
The Loan will be for a period of 24 years including 3 years as a grace period, and will be amortized in 42 semi-annual installments, the first of which will be due on the 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 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.
Upon signature of this loan agreement, this loan will be the 5th loan extended by the Fund to the Republic of Cape Verde considering that the Fund had already extended to Cape Verde 4 loans, the total amount of them is about KD 5.2 million (i.e. about US$ 18.7 million) to finance projects in different sectors. In addition to the above, the Fund had extended to the Republic of Cape Verde 1 Technical Assistance Grant for financing the feasibility study of one project. The total value of it is about KD 83,000 (i.e. about US$ 298.8 thousand).