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Signing Of A Loan Agreement In The Republic Of Cuba
Mr. Ghanem Al-Ghenaiman during Agreement signature
A Loan Agreement was signed in Havana between Banco Exterior de Cuba and the Kuwait Fund for Arab Economic Development, whereby the Fund make a loan in the amount of KD 4.4 million (Equivalent to about 14.960 million Pesos) to assist in financing the Holguin Water Supply System Rehabilitation Project. Related Guarantee and Project Agreements were also signed today between the Fund and representatives of the Republic of Cuba and of the Institute of Hydraulic Resources.
The Guarantee Agreement was signed on behalf of the Republic of Cuba by H. E. Felix Martinez Suarez, Vice Minister, Ministry of Finance & Prices, the Loan Agreement was signed on behalf of Banco Exterior de Cuba by Mr. Jacobo Peison Weiner, President of Banco Exterior de Cuba, and the Project Agreement was signed on behalf of the Institute of Hydraulic Resources by Mr. Rene Mesa Villafana, President of the National Hydraulic Resources Institute. All three Agreements were signed on behalf of the Fund by Mr. Ghanem Ghenaiman, Deputy Director-General of Kuwait Fund for Arab Economic Development
The main objective of the project is to improve living conditions in the city of Holguin through expansion and comprehensive rehabilitation of the city water supply system. The project includes rehabilitation and modernization of water treatment plants, water distribution network, pumping stations and water tanks, provision of necessary tools, measuring equipment and meters, in addition to engineering services for preparation of detailed design and contract documents, and the supervision of construction. The project is expected to be completed over a 4-year period.
The total project cost is estimated at about 42.33 million Peso, equivalent to about 11.76 million Kuwaiti Dinars, of which about 17.05 million Peso would be in foreign exchange. The loan provided by the Fund would cover the entire foreign exchange cost of the project, or about 37% of total project cost, excluding interest during construction.
The loan is provided with a maturity period of 20 years, including 5 years of grace, and will be repaid over 30 semi-monthly installments, with interest at the rate of 2% per annum and a loan service charge at the rate 0.5% per annum.
This is the second loan provided by the Fund to the Republic of Cuba, as a previous loan has been previously provided by the Fund in the amount of KD 3.1 million (Equivalent to about 10.540 million Peso) to finance the Santiago de Cuba Water Supply System Rehabilitation Project.