Current News & Events
Signing of a Loan Agreement for Financing the Construction and Equipping of Four Regional Hospitals Project and of a Grant Agreement for financing the Feasibility Study for Building and Equipping of Cancer Disease Center
A Loan Agreement was signed today in Tunis between the Republic of Tunisia and the Kuwait Fund for Arab Economic Development, whereby the Fund will provide a Loan in the Amount of KD 24,000,000 (equivalent to about US$ 81.6 million), to participate in the financing the Construction and Equipping of Four Regional Hospitals in the Republic of Tunisia, together with a Grant Agreement of KD 300,000 (equivalent to about US$ ,020,000) for financing the Feasibility Study for Building and Equipping of Cancer Disease Center.
The two Agreements were signed on behalf of the Republic of Tunisia by His Excellency Mr. Ziad Al-Azari, Minister of Development and International Cooperation and was signed on behalf of the Kuwait Fund for Arab Economic Development by His Excellency Mr. Abdulwahab Ahmed Al-Bader, Director-General of the Fund in attendance of His Excellency Ali Ahmad Al-Dhafiri, Ambassador of the State of Kuwait to Tunisia and Mr. Abdullah Al-Musaibeeh, Regional Manager for Latin America and Caribbean Countries
The Project, financed from the proceeds of the Loan, aims to meet the growing demand for health services of the population of Sidi Bouzid, Siliana, Kairawan and Jendouba Governorates by providing them with health services and medical care through the construction and equipping of four regional hospitals. The Project will also contribute in supporting and improving the health conditions of the said population, adding to the Project's positive impact in supporting the social and economic development in these Governorates in particular and in the Republic of Tunisia in general.
The Project consists of the construction of four regional hospitals in the Municipalities of Jelma, Makthar, Haffouz and Ghar Aldemaa, on land areas ranging from 3.7 to 5.5 hectares, with a building area of about 11,000 square meters per hospital, each of which can accommodate 105 beds for various medical specialties. The project includes civil and electromechanical works for the construction of the above-mentioned four hospitals. Each hospital includes a reception hall and outpatient clinics in addition to various specialties in internal medicine and general medicine, surgery, pediatrics, otolaryngology, ophthalmology, dentistry, obstetrics and gynecology. Each hospital will also contain a laboratory, radiology unit, pharmacy, surgery theater, central sterilization unit, intensive care and emergency in addition to a day care facility, doctors and nurses' accommodation and a building for the administration and supporting services. The project also consists of the supply and installation of all medical equipment and furniture, as well as the consultancy services and land acquisition.
The total cost of the Project, including the Contingencies for quantities and prices, land acquisitions, fees, taxes and interest during the implementation of the Project is estimated at about 260.60 million Tunisian Dinars, equivalent to about 30.78 million Kuwaiti Dinars, of which about 158.25 million Tunisian Dinars, equivalent to 18.69 million Kuwaiti Dinars in foreign currencies and representing about 60.7% of the total cost of the Project. The Fund's Loan covers about 77.9% of the Project's costs in foreign currencies, representing the total amount of Project's costs in foreign currencies and part of the Project's costs in local currency, while the remaining costs of the Project will be covered by the Government of the Republic of Tunisia.
The Loan matures over a period of 24 years including 4 years grace period, and will be amortized in 40 semi-annual installments, the first of which will be due on 1st 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% per annum, in addition to 0.5% per annum to cover administrative costs and other expenses incurred in the implementation of the Loan Agreement.
By signing this Loan Agreement, the aforementioned loan will represent the thirty fifth loan provided by the Fund for financing of projects, as Kuwait Fund has already extended to the Republic of Tunisia 34 loans to the Republic of Tunisia in various sectors with a total amount of about 195 million Kuwaiti Dinars. Furthermore, with signing the aforementioned Grant Agreement, it will be the second grant that the Fund has provided to the Republic of Tunisia, as the Fund has extended a technical assistance for an amount of 100 thousand Kuwaiti Dinars for financing a Feasibility Study for the Rehabilitation and Development of the Gulf of Monastir Project.