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Signing of a Loan and Guarantee Agreement for the participation in the financing of “Cordoba’s Main Aqueduct Plan” Project in the Republic of Argentina
The Guarantee Agreement was signed on behalf of the Republic of Argentina, by His Excellency Jorge Marcelo Fauri, Minister of Foreign Affairs, and the Loan Agreement was signed on behalf of the Government of the Province of Cordoba, by His Excellency Juan Schiaretti, Governor of the Province of Cordoba, while the Guarantee Agreement was signed on behalf of Kuwait Fund for Arab Economic Development by His Excellency Sheikh Sabah Khaled Al-Hamad Al-Sabah, Deputy Prime Minister and Minister of Foreign Affairs, Chairman, Board of Directors of Kuwait Fund for Arab Economic Development and the Loan Agreement was signed on behalf of the Kuwait Fund for Arab Economic Development, by Mr. Ghanem Sulaiman Al-Ghenaiman, Deputy Director-General of the Fund.
The Project aims at supporting the socio-economic development in Cordoba Province, by sustainably meeting the increasing demand for potable water in about 26 villages through developing water supply systems to provide adequate quantities of water in the Project area.
The Project consists mainly of civil, electrical, and mechanical works required to construct new water supply systems as well as expanding the capacity of existing ones. This includes extending aqueducts for transmission of potable water, and constructing and increasing the capacity of water treatment plants and pumping stations, and consulting services.
The total cost of the Project, including physical and price contingencies, taxes, and interest during the implementation period, is estimated at about 1.84 Billion Argentine Pesos, equivalent to about 27.1 Million Kuwaiti Dinars, of which about 284 Million Argentine Pesos, equivalent to about 4.2 Million Kuwaiti Dinars, is in foreign currency, representing about 15% of the total cost of the Project. The Fund's Loan in the amount of 15.0 Million Kuwaiti Dinars will cover about 55% of the total cost of the Project, while the Government of the Province of Cordoba 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 2.5% 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 5th Loan extended by the Kuwait Fund to the Republic of Argentina, as the Kuwait Fund has previously extended 4 Loans to the Republic of Argentina, to finance projects in the transportation sector, and in the water and sanitation sector, with a total amount of approximately 54.93 Million Kuwaiti Dinars (equivalent to about US$186.76 Million).