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Signing a Loan Agreement for financing the Construction and Equipping of Flacq Teaching Hospital Project "Phase-1" The Republic of Mauritius
A Loan Agreement was signed today in Port Louis between the Republic of Mauritius and Kuwait Fund for Arab Economic Development, whereby the Fund will provide a loan of Kuwaiti Dinars 7.500.000 million (equivalent to about 25.5 million U.S. Dollars) to assist in the financing of the Construction and Equipping of Flacq Teaching Hospital Project "Phase-1" in the Republic of Mauritius. It is worth mentioning that the Fund depends exclusively on its own resources in providing its loans and development assistance.
The Loan Agreement was signed on behalf of the Republic of Mauritius by His Excellency Dr. Hon. Mohammed Anwar Husnoo,Minster of Health and Quality of Life, and on behalf of the Fund by Mr. Hamad Al-Omar, Deputy Director-General of the Kuwait Fund for Arab Economic Development. . Mr. Ayad Al-Gharaballi, Regional Manager for Central, East South African countries at Kuwait Fund, attended the signing Ceremony.
The Project aims at supporting the development of the health sector of the Republic of Mauritius, by helping in meeting the increasing demand for modern healthcare services, improving its quality, and securing hospital services and healthcare coverage in the district of Flacq. The Project will provide adequate infrastructure and technical facilities, as well as meet the needs for modern medical equipment and specialized diagnostic and therapeutic care services, with the aim of reducing morbidity and mortality, thus contributing to the improvement of the health status of the population, which is expected to have a positive impact on the country's health and socio-economic indicators..
The Project comprises of constructing and equipping the Flacq Teaching Hospital (Phase I). The project also includes the supply and installation of medical and non-medical equipment, medical and non-medical furniture, consultancy services for the preparation of detailed engineering and architectural designs and the preparation of tender documents.
The total cost of the Project, is estimated at about 4.232 million Mauritius Rubes, equivalent to about KD 37.153 million, of which about KD 28.047, will be in foreign exchange and represents about 75.5% of the total cost of the Project. Kuwait Fund Loan will cover about 20.19%, while the Saudi Fund for Development will cover about 39.58%, while the Arab Bank for Economic and Development in Africa will cover about 15.83%, The Government of the Republic of Mauritius will cover about 24.40%, of the total cost of the Project, while the remaining costs of the project and any increase may arise out, will be covered by the Government of the Republic of Mauritius.
The Loan matures over a period of 20 years, including a grace period of 5 years, and will be amortized in 30 semi-annual instalments, the first of which will be due on the first date on which any interest or other charges on the loan shall fall due after the elapse of the grace period. The Loan will bear interest rate at 1.5% per annum in addition to a charge of 0.5% for meeting administrative costs and the expenses incurred in the implementation of the Loan Agreement.
By concluding this agreement the Fund would have provided to the Republic of Mauritius seven loans, as Kuwait Fund has already made six loans to the Republic of Mauritius in different sectors with a total amount of about KD 15.914 million, the total amount has been paid to the Fund.