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Signing of a Supplementary Loan Agreement for financing Rehabilitation of the Vlora River Road Project In the Republic of Albania
A Supplementary Loan Agreement was signed today in Tirana between the Republic of Albania and Kuwait Fund for Arab Economic Development, whereby the Fund will provide a Loan of Kuwaiti Dinars six million eight hundred thousand, (KD. 6,8000,000/-) equivalent to about US$ 22.4 million, to assist in the financing of Rehabilitation of the Vlora River Road in the Republic of Albania.
The Supplementary Loan Agreement was signed on behalf of the Republic of Albania by H.E. Mrs.Anila Denaj Minister of Finance and Economy , and on behalf of the Fund by Mr. Marwan Al-Ghanem, Deputy Director General for Operations of the Kuwait Fund for Arab Economic Development.
The aim of the Project is to enhance the economic and social development of the Vlora Region through improving the transportation service of passengers and goods that will reduce the travel time and minimize the cost of transport, in addition to provision of traffic safety. The Project includes the civil works for repaving the 74-Km existing main road Vlora-Peshkepi-Qeparo, and widening it to a two-way carriage road with 3.75m width and 0.75m shoulders each way. The Project also includes rehabilitation works for drainage structures, safety and lighting facilities in addition to pedestrians crossing in main towns along the road, and provision of necessary consultancy services for design, project tender documents and supervision of works. It is expected that the Project will be completed by the end of the year 2022.
The total cost of the project is estimated at about Albanian Leke 9,435 million, equivalent to about Kuwaiti Dinars 26,7 million, of which about 16 million will be in foreign currency and represents about 62% of the total cost. The loan from Kuwait Fund will cover about 60% of the total cost of the Project.
The loan is made for a term of 24 years, including a grace period of 5 years. The loan will be amortized in 38 semi-annual instalments, the first of which will be due on the first date on which interest or other charge on the loan will fall due after the expiry of the said grace period. The loan bears interest at the rate of 2% per annum, in addition to 0.5% per annum to cover administrative charges and other expenses involved in the implementation of the Loan Agreement
By signing this Agreement, the Fund would have provided to the Republic of Albania 8 loans considering that the Fund had already extended to the Republic of Albania 7 loans before with a total amount 32.7 million Kuwaiti Dinars. The Fund also provided two technical assistance amounting in total to about Kuwait Dinars 836.39 for financing feasibility studies in transportation sector.