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Signing of a Loan Agreement of KD 5,000,000/ - for Financing the Rehabilitation and Equipping of Medical Departments in Hospitals Project in the Republic of Tunisia
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 5,000,000 (equivalent to about US$ 17 million), to assist in the financing of the Rehabilitation and Equipping of Medical Departments in Hospitals Project. 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 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 the Republic of Tunisia and Mr. Nesf S. Al-Nesf, Assistant Regional Manager for Arab Countries.
The project aims to improve the health and social situation through the provision and development of modern medical diagnostic and therapeutic care services in 15 states in the Republic of Tunisia, through the reconstruction, development and equipping of 21 health departments, including 17 emergency departments and 4 treatment departments, as well as the development of 2 regional hospitals in each state, Tataouine and Qebli, contributing to the provision of better medical services to support saving the lives of patients, which will have a positive impact on social and economic development.
The proposed project includes civil and electromechanical works for the construction, rehabilitation and development of the above-mentioned health departments and hospitals, including external works and infrastructure. The project also includes the supply and installation of medical equipment, in addition to consultancy services for design and supervision for the Project. The implementation of the Project is expected to begin in mid-2018 and be completed by the end of 2021.
The total cost of the Project, including the Contingencies for quantities and prices, fees, taxes and interest during the implementation of the Project is estimated at about 51.765 million Tunisian Dinars, equivalent to about 6.423 million Kuwaiti Dinars, of which about 28.888 million Tunisian Dinars, equivalent to 3.584 million Kuwaiti Dinars in foreign currencies and representing about 56% of the total cost of the Project. The Fund's Loan covers about 78% of the Project's costs, 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 the 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 sixth loan provided by the Fund for financing of projects, as Kuwait Fund has already extended to the Republic of Tunisia 35 loans in various sectors with a total amount of about 195 million Kuwaiti Dinars. In addition to the above, the Fund had extended to the Republic of Tunisia 2 Technical Assistance, the total value of them is about KD 400,000 for the preparation of technical and economic feasibility studies of various projects.