Current News & Events
Signing a Loan Agreement to finance the Rehabilitation of Gueckedou-Kondebadou Road Project 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 Ahmedabad, Republic of India, during the Annual Meetings of the African Development Bank, whereby Kuwait Fund extends a Loan in an amount of K.D. 8 million, equivalent to about US$ 27.2 million to participate in the financing of the Rehabilitation of Gueckedou-Kondebadou Road Project. It is worth mentioning that in extending its loans and grants, Kuwait Fund depends exclusively 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 H.E Kanny Diallo – Minister of Planning and on behalf of Kuwait Fund for Arab Economic Development by Mr. Hesham Al-Waqayan, Deputy Director-General of the Fund.
The Project aims at meeting the increasing demand for transport of passengers and goods on the southern east area of Guinea, thereby promoting trade activities among the neighboring countries, and thus contributing to the economic and social development in the Project area. The Project also aims to reduce vehicle operation and road maintenance costs, as well as travel time.
The Project involves the Rehabilitation of Gueckedou-Kondebadou Road located on the National Road (RN2) with a length of about 35 km, consisting of two lanes with a width of about 7 m, and a shoulder of 1.5 m in each side. The Project also includes consultancy services for revision of tender documents and supervision of construction works.
The total cost of the Project is estimated about FCFA 502.billion, equivalent to about K.D. 15.961 million of which about K.D 12.352 million are in foreign currency and representing about 77% of the total Project cost. The Loan provided by the Fund of KD 8.0 million, will cover about 50.1 % of the total Project cost, while the balance would be covered by the government of Guinea.
The Loan matures over a period of 25 years including 5 years grace period, and will be amortized in 40 semi-annual installments, the first of which will be due on 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 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 13 the number of loans accorded by Kuwait Fund to the Republic of Guinea, where the Fund previously provided 12 loans totaling about 48.577 million Kuwaiti Dinars, equivalent to about US$ 165.161 million to participate in the financing in projects in various sectors. In addition to the above, the Fund had extended to the Republic of Guinea 4 technical assistances, the total value of them is about KD. 667 thousand (i.e. about US$ 2.267 million). In addition to the provision of US$ 3.961 million from the Goodwill Fund established by the Government of Kuwait.