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Signing a Loan Agreement for financing the Loga - Doutchi Road Project in the Republic of Niger
A Loan Agreement between the Republic of Niger and the Kuwait Fund for Arab Economic Development has been signed today in Niamey, whereby Kuwait Fund extends a Loan in an amount of KD 4 million equivalent to about US$ 13.6 million to participate in the financing of Loga - Doutchi Road Project. It is worth mentioning that the Fund is a Kuwaiti public corporation, which relies entirely on its own resources for making loans and providing other kinds of development assistance.
The Loan Agreement was signed on behalf of the Republic of Niger by His Excellency Aichatou Boulama Kane – Minister of Planning of the Republic of Niger, and on behalf of Kuwait Fund for Arab Economic Development by Mr. Nedhal Abdulaziz Al-Olayan, Deputy Director-General of Kuwait Fund for Arab Economic Development.
The Project aims to enhance the economic and social development of the eastern region of the Niger, and at the same time participating in linking the Niger with the neighboring country Nigeria.
The project consists of construction works to attain an asphalted road of an approximate length of about 91 km and a width of 7 meters (and 1.5 meters shoulders on each side), and includes earthworks, paving layers, drainage facilities, safety measures, and environmental protection works. The project also consists of construction works to attain about 15 km of paved earth rural roads, 2 weigh and toll stations, schools fences, health and security centers, in addition to the necessary consultancy services, institutional support and financial audit.
The total cost, including physical and price contingencies and interest during construction, is estimated to be about FCFA 48.186 billion, equivalent to about KD 25.173 million of which about KD 20.877 million are in foreign currency representing about 83% of the total cost. The loan, for KD 4 million, will cover about 16% of the total project cost, in addition to the financing of the Saudi Fund in the amount of USD 20 million representing 23% of the total project cost and BADEA in the amount of USD 16 million representing 19% of the total project cost and the Islamic Development Bank in the amount of USD 30 million representing 35% of the total cost while the balance and any cost over-runs that may occur would be covered by the Government of Niger.
The Loan matures over a period of 25 years including 5 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 1.5% per annum, in addition to 0.5% per annum to cover administrative costs and other expenses incurred in the implementation of the Loan Agreement.
The signing of this Loan brings to 13 the number of loans accorded by Kuwait Fund to the Republic of Niger, where the Fund previously provided 12 loans totaling about 34.23 million Kuwaiti Dinars, to participate in the financing in projects in various sectors. Furthermore, the Fund has extended 10 technical assistances with a total amount of KD 1.148 million.