Current News & Events
Signature of a Supplementary Loan Agreement for Kuwaiti Dinars 3,000,000 for financing the Ngouri-Bol Road Project in the Republic of Chad
A Supplementary Loan Agreement was signed today in N'Djamena between the Republic of Chad and Kuwait Fund for Arab Economic Development whereby the Fund will extend a supplementary loan of Kuwaiti Dinars three million (KD 3,000,000/-) to further assist financing the Ngouri-Bol Road Project and securing additional funds to cover the financial gap encountered by the Government during the implementation of the Project. It is worth mentioning that the Fund is a Kuwait Public Corporation which relies entirely on its own resources for making loans and providing other kinds of development assistance.
The Supplementary Loan Agreement was signed on behalf of the Republic of Chad by His Excellency Dr. Issa DOUBRAGNE, Ministre de l'Economie et de la Planification du Développement, and on behalf of the Fund by Mr. Marwan Al-Ghanem, Deputy Director-General for Operations of the Kuwait Fund for Arab Economic Development.
The Project aims to enhance the economic and social development of the western region of Lac, satisfy the increasing demand for local traffic and promote regional commercial exchanges and opening-up of the area of the north of Lake Chad. The Project will also contribute to the consolidation of regional economic integration by the progressive improvement of the Trans-Saharan road, which connects six African countries: Chad, Niger, Nigeria, Mali, Algeria and Tunisia.
The Project consists of constructing an all-weather 7m wide asphalted road between Ngouri and Bol, with an approximate length of 99 km the width of each lane is 3.5m with 1.5m shoulders on each side. The Project also includes earthworks, paving layers, drainage structures, safety measures and environmental protection works as well as the institutional support for the Project Implementation Unit including the provision of vehicles, and office equipment, and consultancy services for the review of detailed design, preparation of tender documents and supervision of construction. The Project shall be divided, under the Supplementary Loan, in to two lots: Lot (1) with a length of about 65 km commencing from Ngouri and Lot (2) with a length of about 34 km ending in Bol. The Project implementation is expected to be completed by the end of 2021.
The total cost of the Project is estimated during the evaluation of the Project in 2013 at about CFA Franc64.364 billion equivalent to about 37.863 million Kuwaiti Dinars of which the foreign currency is equivalent to about 26.818 million Kuwaiti Dinars, which represents about 70.8% of the total cost of the Project.
The Supplementary Loan shall be for a period of 24 years including additional 3 years grace period. The Original and Supplementary Loans (the "Consolidated Loans"), will be amortized on 42 semi-annual installments, the last of which shall be due on 15/07/2040. The Consolidated Loans bear interest at 1.5% per annum, in addition to 0.5% per annum to cover administrative and other expenses to be incurred in the implementation of the Loan Agreements.
By concluding this agreement, it will be the 7th Loan that the Fund provided to the Republic of Chad, where the Fund previously provided 6 loans amounting to about 23.2 million Kuwaiti Dinars equivalent to about 79 million U.S. Dollars for financing projects in various sectors. In addition to the above, the Fund extended to the Republic of Chad a Technical Assistance Grant for preparing the feasibility study for extension of power supply system with a value of KD 14,868/- (i.e. US$ 50,552). Furthermore, the Fund had administrated the State of Kuwait's Government's Grant, the amount of which is US$ 2.5 million attributed to the Emergency Project of Rural Water Supply in addition to the Grant allocated from the resources of Kuwait Goodwill Fund for Promotion of Food Security in Islamic Countries with an amount of US$ 4 million .