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Signing a Loan Agreement of KD 9,000,000 for financing Cocody Bay and Ebrie Lagoon Safeguard and Development Project in the Republic of Cote d’Ivoire
A Loan Agreement between the Republic of Cote d'Ivoire and the Kuwait Fund for Arab Economic Development has been signed today in Sharm El-Sheikh, the Arab Republic of Egypt, on the sideline of the "Africa 2018 Forum, whereby Kuwait Fund extends a Loan in an amount of KD 9 million equivalent to about US$ 30.6 million to participate in the financing of Cocody Bay and Ebrie Lagoon Safeguard and Development Project. It is worth mentioning that the Fund is a Kuwaiti public corporation, which relies entirely on its own resources for making loans and providing other kinds of development assistance.
The Loan Agreement was signed on behalf of the Republic of Cote d'Ivoire by His Excellency Adama Kone - Minister of Finance of the Republic of Cote d'Ivoire, and on behalf of Kuwait Fund for Arab Economic Development by Mr. Abdulwahab Al-Bader, Director-General of the Fund.
The project aims at supporting the socio-economic development in the Cocody Bay area by improving environmental and health conditions of the residents of the Area through a multisectoral cross-cutting project that includes interventions in sanitation and wastewater treatment among other measures to improve Ebrie lagoon water quality in the city of Abidjan and mainly the project area.
The Project consists mainly of civil as well as electrical and mechanical works for Hydraulic systems, Landscaping, Wastewater treatment, Drainage and Sanitation, and traffic infrastructure, in addition to consulting services for detailed studies and supervision of works, institutional support to the Project Management Unit and land acquisition and compensations.
The total cost, including physical and price contingencies and interest during construction, is about FCFA 474 billion, equivalent to about KD 248.9 million, out of which about FCFA 262.9 billion equivalent to KD 138.1 million is in foreign currency, which represents about 55% of the total cost. The loan, for KD 9 million, will cover about 3.6% of the total project cost, in addition to the financing of the Islamic Development Bank in the amount equivalent to about KD 83 million representing 33% of the total project cost, BADEA in the amount equivalent of KD 6 million representing 2.4% of the total project cost and OFID in the amount equivalent to about KD 3 million representing 1.2% of the total project cost, whereas, the Government of Cote d'Ivoire covers the remaining cost, in addition to any cost increase that may arise.
The Loan is made for a term of 25 years including 6 years grace period, and will be amortized in 38 semi-annual installments, the first of which will be due on the first 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 a charge of 0.5% per annum to cover administrative costs and other expenses incurred in the implementation of the Loan Agreement.
The aforementioned loan represents the seventh loan made by the Fund to the Republic of Cote d'Ivoire, as Kuwait Fund has already made six loans to finance projects in the sectors of transport, potable water, electricity and vocational training with a total amount of about KD 31.0 million. Furthermore, the Fund has extended a technical assistance for an amount of KD 100,000 for financing a study on agricultural development in addition to a technical assistance for an amount of KD 150,000 for financing the preparation of a technical and economic study in the sector of transport.