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Signing a Loan and Guarantee Agreement For the financing of La Plata Water Supply in the Republic of Argentina
A Loan Agreement was signed today in Buenos Aires between the Government of the Province of Buenos Aires and the Kuwait Fund for Arab Economic Development whereby the Fund will provide a Loan of KD 15,000,000 (equivalent to about US$ 51 million) for the financing of the La Plata Water Supply Project. A Guarantee Agreement relating to the said Loan was also signed between the Republic of Argentina and the Fund.
The Guarantee Agreement was signed on behalf of the Republic of Argentina by His Excellency Mr. D. Pablo QUIRNO MAGRANE, the Chief of Cabinet of Advisors of the Minister Unit. The Loan Agreement was signed on behalf of the Government of the Province of Buenos Aires by His Excellency Mr. Lic. Hern?n LACUNZA, Ministro de Econom?a, Ministerio de Econom?a de la Provincia de Buenos Aires. Both the Loan and the Guarantee Agreements were signed on behalf of the Kuwait Fund for Arab Economic Development by Mr. Ghanem Sulaiman Al-Ghenaiman, Deputy Director-General of the Fund in attendance of Mr. Abdullah Al-Musaibeeh, Regional Manager for Latin America and Caribbean Countries.
The Project aims at supporting the socio-economic development in Buenos Aires Province, by improving the potable water quality and providing adequate quantities of water supply to the residences within the Project area until the year 2040. It will serve three cities namely, La Plata, Berisso, and Ensenada.
The Project consists mainly of the civil and electromechanical work required to establish a sustainable potable water supply system at La Plata City through the construction of new intake, treatment plant, and new conveyance water system, in addition to the preparation of diagnosis studies, awareness programs and activities, project management, audit, and training, in addition to the consulting services.
The total cost of the Project is estimated at about 2.98 Billion Peso (equivalent to about KD 58.38 million) of which 549.5 million Peso (equivalent of KD 10.77 million, will be in foreign currency which represent about 18% of the total cost of the Project.
The term of the Loan is 24 years, including a grace period of 4 years. The Loan will be repaid in 40 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 be due after the elapse of the above-mentioned grace period. The Loan will bear interest at the annual rate of 2.5% in addition to administrative charges at the annual rate of 0.5%.
The signing of this Loan brings to four the number of Loans extended by Kuwait Fund to the Republic of Argentina totaling about 54.9 million Kuwaiti Dinars, equivalent to about 186.66 million U.S. Dollars to finance projects in roads and water sectors.