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Signing A Loan Agreement In The Republic Of The Gambia
Signing a Loan Agreement of KD. 3,100,000 for Financing the Banjul International Airport Improvement Project (Phase II) in the Republic of The Gambia.
A Loan Agreement was signed today in Banjul between the Republic of The Gambia and Kuwait Fund for Arab Economic Development, whereby the Fund will provide a loan of three million one hundred thousand Kuwaiti Dinars (equivalent to about US.$ 10,850,000) to assist in the financing of the Banjul International Airport Improvement Project (Phase II).
The Loan Agreement was signed on behalf of the Republic of The Gambia by the Minister of Finance and Economic Affairs Mousa Balagae, and on behalf of the Fund by Mr. Hamad S. Al-Omar, Deputy Director-General of the Kuwait Fund for Arab Economic Development.
The Project aims at satisfying the increase in passengers and cargo traffic, at Banjul International Airport, and to further ensure its safety. The project also aims at improving the operational standards of the Airport.
The Project consists of rehabilitation and expansion of the existing apron, construction of two new taxiways and a fire fighting building, rehabilitation of the existing terminal building and the control tower, supply and installation of navigation systems, signs, pavement marking and apron lighting, fire rescue vehicle in addition to consultancy services for the supervision of construction works.
The total cost of the project is estimated at about 776.66 million Dalasis equivalent to about 10.1 million Kuwaiti Dinars of which the Fund's loan covers about 31%. The Project is expected to be completed by mid 2010.
The Loan shall be for a period of 25 years including a grace period of 3 years. The Loan will be amortized on 44 semi-annual installments, the first of which shall 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 bears interest at 2% per annum, in addition to 0.5% per annum to cover administrative and other expenses to be incurred in the implementation of the Loan Agreement.
By concluding this agreement the Fund would have provided to the Republic of The Gambia nine loans totaling about 22.8 million Kuwaiti Dinars (equivalent to about 79.8 million U.S. Dollars) to finance Projects in various sectors, in addition to 5 technical assistance grants totaling about 770,000 Kuwaiti Dinars (equivalent to about 2.7 million U.S. Dollars).