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Signing A Loan Agreement In The Republic Of Albania
Signing a Loan Agreement of KD. 6,000,000/- for financing Durres Bypass and the Vora Interchange Project on the Durres – Vora Road in the Republic of Albania
A Loan Agreement was signed today in Tirana between the Republic of Albania and Kuwait Fund for Arab Economic Development, whereby the Fund will provide a Loan of Kuwaiti Dinars six million (KD. 6,000,000/-) the equivalent of US$ 21 million, to assist in the financing of "Durres Bypass and the Vora Interchange Project on the Durres – Vora corridor".
The Loan Agreement was signed on behalf of the Republic of Albania by H.E. Ridvan Bode, Minister of Finance, and on behalf of the Fund by Mr. Hesham Al-Waqayan, Deputy Director General of the Kuwait Fund for Arab Economic Development.
The aim of the project is to meet the increasing demand for road transport on the Durres – Morine corridor in Albania efficiently and safely, to reduce the vehicle operating cost and to enhance economic, tourist and social development in the central region of the country.
The project consists of two parts:
(a) Durres Bypass which is a four-lane highway (two in each direction) with a total length of about 5 km, including three interchanges each with two different levels. The bypass also comprises two flyovers, one for rail and the other for vehicles and two-lane 4 km. Service roads.
(b) Vora Interchange which stretches over a 2 km. distance on the Durres-Morine corridor at its crossing with the Tirana Highway. The interchange consists of a number of two-lane roads and roundabouts with a total length of 3 km in addition to four interchanges each of two different levels and one flyover in addition to the improvements to the existing highway.
The total cost of the Project is estimated at 2.48 billion Albanian Leke equivalent to KD. 8.59 million, out of which KD. 6.59 million is in foreign currencies constituting about 81% of the total cost. The loan will cover 70% of the total project cost.
It is expected that the Project will be completed by the end of the year 2010.
The Loan shall be for a period of 20 years including 4 years of grace.
The Loan bears interest at 2% per annum, in addition to 0.5% per annum to cover administrative and other expenses incurred in the implementation of the Loan Agreement.
By signing this Agreement the Fund would have provided to the Republic of Albania 6 loans totaling about Kuwaiti Dinars 21.6 million equivalent to US$ 75.5 million, to assist in the financing of projects in transport and irrigation sectors.