Current News & Events
Signing Loan Agreement for Financing of Lot 2 of the Caracol Road Project in Belize
A Loan Agreement was signed today in Belize between the Government and Kuwait Fund for Arab Economic Development, whereby the Fund will make a loan of Kuwaiti Dinars 6 million equivalent to about US$ 20.4 million to assist in the financing of the Caracol Road Project.
The Loan Agreement was signed on behalf of Belize by His Excellency Mr. Patrick Faber, Acting Prime Minister and Minister for Finance and on behalf of Kuwait Fund for Arab Economic Development by Mr. Marwan Abdullah Al-Ghanem, Deputy Director-General for Operations at the Fund.
The Project aims at supporting the economic and social development in Belize by providing reliable year-round land transportation in a subtropical forest region, which is located in Cayo District in the west-central part of Belize. The Project will improve connectivity and accessibility to places of work and social services for the inhabitants of the various towns and settlements located along the road path, and will enhance access to touristic attractions including the Caracol Archaeological Reserve, the largest known Mayan archaeological complex in the country, which is located at the southern end of the road. The upgrading of the road is also expected to enhance investment in agricultural activities and development of related light industries, in mining activities, sustainable logging activities and is expected to create jobs and promote new business opportunities in this part of the Country.
The Project consists of upgrading Lot 2 of 42.9 km of the existing primarily dirt and gravel road to an asphaltic two-lane two-way road that is designed according to appropriate standards. The road will be 7.3 meters wide with a 1.5 meter shoulders on each side. The Project includes drainage works on both sides of the road that will be covered reinforced concrete drainage for inside urban areas and earthen trapezoidal drains outside urban areas including culverts and outflow channels of appropriate dimensions in appropriate locations. The Project includes works on 15 bridges, where 14 bridges will be new reinforced concrete construction replacing the old structures and one bridge will need rehabilitation works. The Project also include the Consulting services that include preparation of tender documents, assistance in civil works procurement and implementation supervision. Provision for 3 vehicle-weighing stations and one mobile equipment. Institutional support to the PEU and land acquisition and compensations.
The total cost of Lot 2 of the Project is estimated at about Belizean Dollar 75 Million. The loan from Kuwait Fund will cover about 54.4% of the total cost of the Project. The Project implementation period is estimated to be 4 years and is expected to be completed by the end of 2022.
The Loan is made for a term of 20 years, including a grace period of 5 years. The loan will be amortized in 30 semi-annual instalments, the first of which will be due on the first date on which interest or other charge on the loan will fall due after the expiry of the said grace period. The loan bears interest at the rate of 2% per annum, in addition to 0.5% per annum to cover administrative charges and other expenses involved in the implementation of the Loan Agreement.
Upon signature of this Loan Agreement, this Loan will be the 6th loan extended by the Fund to Belize considering that the Fund had already extended to Belize 5 loans within the Transport Sector, the amount totaling 12.8 million Kuwaiti Dinars. The Fund had also extended to Belize 3 Technical Assistance facilitates to finance feasibility studies in the transportation sector for a total amount of KD. 487.7 thousand/ (about US$ 1.596 Million).