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Signing of a Loan Agreement in the Amount for the participation in the financing of the Wuzhong People’s Hospital Project (Second Phase) in the People’s Republic of China
A Loan Agreement was signed today in Beijing between the People's Republic of China and the Kuwait Fund for Arab Economic Development, whereby the Fund will provide a Loan in the Amount of 9.0 Million Kuwaiti Dinars (equivalent to about US$ 30.6 Million), to the People's Republic of China, to participate in the financing of the Wuzhong People's Hospital Project (Second Phase). It is worth mentioning that the Fund depends exclusively on its own resources in providing its loans and development assistance.
The Loan Agreement was signed on behalf of the Government of the People's Republic of China, by His Excellency Wang Zhang Jing - Deputy Director General of the Ministry of finance, while the Loan Agreement was signed on behalf of the Kuwait Fund for Arab Economic Development by Mr. Hesham Al-Waqayan, Deputy Director-General of the Fund, in attendance of His Excellency Mr. Samih Jawhar Hayat, Ambassador of the State of Kuwait to the People's Republic of China and Mr. Waleed Al-Bahar, Regional Manager for East, South Asia and Pacific Countries.
The Project aims to accommodate the demand of both the City's and the surrounding Regions' people for both the quality basic and high-end medical care services and supporting social development of Ningxia Hui Autonomous Region, thru constructing the Second Phase of Wuzhong People's Hospital in Wuzhong City.
The Project comprises constructing and equipping Five main medical specialized buildings, in Tumors, Cardiovascular diseases, Infection diseases, Rehabilitation Medicine, and Logistics supporting building, and other required related services, with a capacity of 498 beds, in a new location in the City, which has been designated as a health area. The Project also includes the supply of required medical equipment and furniture, and consultancy services.
The total cost of the Project, including physical and price contingencies, taxes, and interest during the implementation period, is estimated at about 411 Million Chinese Yuan, equivalent to about 18.1 Million Kuwaiti Dinars, of which about 4.7 Million Kuwaiti Dinars, is in foreign currency, representing about 26% of the total cost of the Project. The Fund's Loan in the amount of 9.0 Million Kuwaiti Dinars will cover about 49.7% of the total cost of the Project. The Wuzhong Municipal Government shall cover the remainder of the Project costs and any increase in the cost of the Project.
The Loan shall be for a period of 24 Years, including a grace period of 4 Years, and shall be repaid in 40 semi-annual installments, the first of which will be due on the first date on which interest or other charges will fall due, pursuant to the Loan Agreement, after the expiration of the said grace period. The Loan bears an interest rate of 1.5% per annum, in addition to a rate of 0.5% per annum to meet administrative costs and other expenses incurred in the implementation of the Loan Agreement.
This Kuwait Fund's Loan represents the 38th Loan extended by the Kuwait Fund to the People's Republic of China, as the Kuwait Fund has previously extended 37 Loans to the People's Republic of China, to finance projects in various sectors, with a total amount of approximately 279.99 Million Kuwaiti Dinars (equivalent to about US$ 951.96 Million).