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Signing of a Loan Agreement for the financing of Dr. Ayres de Menezes Central Hospital Project in the Democratic Republic of Sao Tome and Principe
On the occasion of the 4th Africa–Arab Summit" in Malabo, Equatorial Guinea on 21 - 24 November 2016, a Loan Agreement was signed between the Government of the Democratic Republic of Sao Tome and Principe and Kuwait Fund for Arab Economic Development, in the gracious presence of His Highness Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah, the Amir of the State of Kuwait, whereby the Fund will make a loan in the amount of five million Kuwaiti Dinars (K.D. 5,000,000/-), equivalent to U.S.$ 17 million, to the Democratic Republic of S?o Tomé, and Principe to assist in the financing of the Construction of Dr. Ayres de Menezes Central Hospital Project. It is worth mentioning that the Fund depends exclusively on its own resources in providing its loans and development assistance.
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 Democratic Republic of S?o Tomé and Pr?ncipe by His Excellency The Hon. Americo de Oliveira Ramos, Minister of Finance and Economical Affairs, and on behalf of the Kuwait Fund for Arab Economic Development by His Excellency Shaikh Sabah Khaled Al Hamad Al Sabah, First Deputy Prime Minister and Minister of Foreign Affairs, in attendance of His Excellency Anas Khaled Al Saleh, Deputy Prime Minister and Minister of Finance.
The Project aims to support the development of the health sector of Sao Tome and Principe by meeting increasing demand for healthcare services, improving its quality and securing hospital services and healthcare coverage in Sao Tome and Principe. The Project will provide adequate infrastructure and technical facilities, as well as meeting the needs for modern medical equipment and specialized diagnostic and therapeutic care services, with the aim of reducing morbidity and mortality. Thus, contributing to the improvement of the health status of the populations, which will have a positive impact on the country's socio-economic indicators. The Project comprises constructing and equipping of Dr. Ayres De Menezes Central Hospital
The Project include the Civil works: comprising all building construction works and electro-mechanical engineering works required to rehabilitate two existing buildings (the main building and ICU, Operation and blood bank) and to construct a new one with the connection between them bringing the total beds in the new development into about 132 Beds, the rehabilitation of Hospital kitchen, several service facilities, car parking and landscaping. And the procurement and installation of medical and auxiliary equipment to service laboratory, emergency room, blood bank, ICU, Orthopedics, outpatient clinic, physiotherapy, telemedicine, imaging, otorhinolaryngology, ophthalmology, cardiology, hemodialysis, archive and ICT department, that will commensurate to the envisaged specialized services. The project also includes, the provision two ambulances, generators and incinerator and provision of furniture for the said buildings. Training program for specialized doctors and medical technical staff and Consultancy Services: for (a) the preparation of the detailed design, technical specification and contract documents of the required construction works and medical equipment; (b) preparation of tender documents and assisting in the bidding evaluation and procurement services; (c) supervision of Project implementation, including the equipment installation. The Project is expected to start during the fourth quarter of 2016 and to be completed by the end year of 2019.
The total cost of the Project is estimated at about 425.6 billion Dobra, equivalent to about KD 5.6 million, of which about KD 4.7 million will be in foreign currency and representing about 84% of the total cost of the Project. The loan provided by the Fund will cover about 89% of total Project cost, while the balance would be covered by the government of Sao Tome and Principe.
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.
It is worth mentioning that by extending this loan, the Fund and the Democratic Republic of Sao Tome and Principe mark the start of their development cooperation.