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Signing A Loan Agreement With The Republic Of Tunis
27/11/2006: Signing a Loan Agreement of KD 6,000,000 for the financing of Two High Institutes for Technological Studies in the Republic of Tunis
A loan agreement was signed in Tunis between the Republic of Tunis and Kuwait Fund for Arab Economic Development, whereby the Fund shall make a Loan of KD 6 million (equivalent to about 26 million Tunisian Dinars & equivalent to US$ 20 million) to assist in financing of Two High Institutes for Technological Studies Project in the Republic of Tunis.
The Loan Agreement was signed on behalf of the Republic of Tunis by H. E. Mohamed Nouri Jouni, Minister of Development and International Cooperation and by Mr. Abdulwahab Al-Bader, Director-General on behalf of Kuwait Fund.
The Project aims at constructing and equipping a high institute for technical studies in each of Mdeneen and Golaibia City with a view to provide specialist cadre in all aspects of Technology required by the industrial, productive and services entities.
The Project components consist of the construction, equipping and furnishing of two High Institutes for Technological Studies one in Golaibia and the other in Mdeneen. The buildings of each such institute consist of all the departments relating to it including lecture halls, libraries, training workshops, laboratories and Project incubators, administration buildings, students dormitories and attached restaurants. The project also include institutional support to the PIU/S, in addition to the consulting services for the Project .
The total cost of the Project is estimated at about Tunisian Dinars 64.53 million (equivalent to about KD 14.64 million) of which 20.65 million Tunisian Dinars the equivalent of about KD 4.68 million, representing about 32% of the total cost of the project, will be in foreign exchange. The Kuwait Fund's loan will cover about 41% of the total cost of the Project, while the balance of the costs will be covered by the Government of Tunis.
The Loan is extended for a period of 24 years including 4 years grace period, amortized in 40 semi-annual installments, the first of which shall fall 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 1.5% per annum, in addition to 0.5% per annum to cover administrative and other expenses incurred in the implementation of the Loan Agreement.
By concluding this agreement, it will be the thirtieth Loan that the Fund provided to the Republic of Tunisia, where the Fund previously provided twenty nine loans amounting to 130 million Kuwaiti Dinars equivalent to about 434 million U.S. Dollars or about 572 million Tunisian Dinars, for financing projects in various sectors.