Current News & Events
Signing a Loan Agreement for financing the Construction of Four Interchanges Project in Conakry in the Republic of Guinea
A Loan Agreement between Kuwait Fund for Arab Economic Development and the Republic of Guinea has been signed today in Conakry, whereby Kuwait Fund extends a Loan in an amount of KD 8 million equivalent to about US$ 27 million to participate in the financing of the Construction of Four Interchanges Project in Conakry. It is worth mentioning that in extending its loans and providing other kinds of development assistance, Kuwait Fund depends entirely on its own resources.
The Loan was made in pursuance of an initiative by His Highness Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah, the Amir of the State of Kuwait announced at the 3rd Africa-Arab Summit held in Kuwait during the period 19 - 20 November 2013 to grant concessionary loans to African countries to the tune of one (1) Billion US Dollars spread over the succeeding five years for financing development projects in the African countries.
The Loan Agreement was signed on behalf of the Republic of Guinea by His Excellency Momadi Camara , Minister of Economy and Finance of the Republic of Guinea, and on behalf of Kuwait Fund for Arab Economic Development by Mr. Ghanem Sulaiman Al-Ghenaiman, Deputy Director-General of the Fund, in attendance of Mr. Thamer Al-Failakawi, Regional Manager, West African Countries at the Fund
The Project aims to facilitate the traffic movement of passengers in the Capital Conakry connecting the center of the Capital with its urban areas in view of the severe traffic congestion on "Le Prince" road in peak hours that cause the increase of travel time and fuel consumption, in addition to traffic and pedestrian accidents and cars pollution.
The project consists of the construction of (4) flyovers and roundabouts at the intersections of Hamadallaye, Bambeto, Cosa and Enco districts, located along "Le Prince", in addition to the construction of (4) tunnels at the intersections' sites connecting to service roads. The Project also includes the rehabilitation of (4) transversal roads which intersects with "Le Prince" road and connecting the said intersections with the North Corniche Highway and South Corniche Highway. The project comprises, also, the institutional support, Project Audit, the consultancy services for the supervision of the construction of works.
The total cost, including physical and price contingencies and interest during construction, is estimated about GNF 1,114 million, equivalent to about KD 36.413 million of which about KD 29 million are in foreign currency and representing about 80% of the total cost. The loan, for KD 8 million, will cover of about 22% of the total project cost, in addition to the financing of the Abu Dhabi Fund for Development in the amount equivalent of KD 8 million representing 22% of the total project cost and the Islamic Development Bank representing 42% of the total cost while the balance representing 14% and any cost over-runs that may occur would be covered by the Government of Guinea.
The Loan matures over a period of 27 years including 5 years grace period, and will be amortized in 44 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 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.
The signing of this Loan brings to 14 the number of loans accorded by Kuwait Fund to the Republic of Burundi, where the Fund previously provided 13 loans totaling about 56.578 million Kuwaiti Dinars, to participate in the financing in projects in various sectors. Furthermore, the Fund has extended technical assistances with a total amount of KD 667,000, 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 about US $ 1.165 million.