Current News & Events
Signature Of A Loan Agreement In The Republic Of Senegal
Signature of a Second Loan Agreement of KD 10,000,000 for financing of the Roads Rehabilitation Project in Dakar and the Amendment of the Loan Agreement No. 721 concluded on 22.3.2006 in the Republic of Senegal.
A Second Loan Agreement was signed today in Dakar whereby Kuwait Fund shall make a Second Loan of KD 10,000,000 (i.e. about US$ 35 million) to assist in covering the increasing costs of the Roads Rehabilitation Project in Dakar in the Republic of Senegal. This loan shall amend the Loan Agreement No. 721 concluded on 22.3.2006.
The Second Loan was signed on behalf of the Government of Senegal by H. E. Abdoulaye Diop Minister of Finance and Economy and on behalf of Kuwait Fund by Mr. Hamad S. Al-Omar, Deputy Director-General of the Kuwait Fund for Arab Economic Development.
The aim of the Project is to cope with the transportation needs of the convention of the 11th Islamic Summit Conference in Dakar, capital of Senegal, expected during March, 2008. The Project aims, also, at satisfying the demand on road traffic, and to avoid traffic congestions within Dakar, thus contributing to the socio-economic development of the people of Dakar.
The Project consists of the following components:
A. Civil Engineering works and displacement of services for the:
A.1. Construction of the Divinity Mosque – Atepa 4 lanes road. ( 2.7 KM)
A.2. Extension of the Northern Exit of Dakar including three interchanges (6 KM)
A.3. Construction of the Liberty 6 – Senghor Pharmacy 4 lanes road (2.4 KM)
A.4. Widening of the West costal road to a 4 lanes road, including a tunnel, three underpasses, and three roundabouts. (6.9 KM)
A.5. Widening of the Airport – proposed conference site – Divinity mosque 4 lanes road with a connection to the King Fahd Conference Centre. (12.5 KM)
A.6. Rehabilitation of the access roads to the airport. (1.4 KM)
A.7. Rehabilitation of connecting access and feeder roads.(0.6 KM)
A.8. Construction of the Lamine Gueye – train station 4 lanes road. (1 KM)
B. Expropriation Works
C. Consultancy services
The total cost of the project is estimated during the evaluation of the project in 2005 at about FCFA 72.3 billion i.e. equivalent to about KD 40.9 million of which the foreign currency is equivalent to about KD 28.1 million, which represents about 69% of the total cost of the project. On the other hand, the additional costs that occurred after starting the implementation of the project, and upon encountered a lot of difficulties in digging the main tunnel of the project represents about 9% of the total cost of the Project and represents about 29% of the cost of west costal road. The extra costs have been calculated by the consultant engineer supervising the project and approved by the Fund.
The integrated loan - including the First and the Supplementary – shall be for a period of 25 years, amortized in 40-semi-annual installments. The interest rate is 1% per annum, in addition to 0.5% per annum to cover administrative costs and other expenses in implementing the Second Loan Agreement.
Upon signature of this Loan Agreement, this Loan will be the 26th one accorded by the Fund to the Republic of Senegal to finance projects in different sectors. The total amount of the previous 25 loans is estimated at about KD 83.2 million (i.e. about US$ 291.2 million). An amount of KD 59.3 million has been withdrawn (equivalent to US$ 207.5 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 702,000/- (i.e. US$ 2.45 million), of which an amount of about KD 663,000/- have been disbursed. In addition to the above, the Fund had administrated the State of Kuwait's Government's Grant in 1983, the amount of which is KD 1.5 million (i.e. about US$ 5.2 million) attributed to the Emergency Project of Rural Water Supply.