Current News & Events
Signing A Loan Agreement With The Kingdom Of Morocco
14/12/2006: Signing a Loan Agreement and a Guarantee Agreement of KD 15,000,000 to finance Fas-Wajda Highway Project in the Kingdom of Morocco
On the occasion of the visit of His Highness Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah, the Amir of the State of Kuwait to the Kingdom of Morocco, a Loan Agreement between Kuwait Fund for Arab Economic Development and the National Company for Highway in Morocco where Kuwait Fund extends a loan in an amount of KD 15,000,000 to participate in the financing of Fas-Wajda Highway Project has been signed today in Marrakech. An Agreement to guarantee the loan was signed by the Kingdom of Morocco and Kuwait Fund.
H.E. Mr. Fathalla Wallalu, the Minister of Finance and Privatization, signed the Guarantee Agreement on behalf of the Kingdom of Morocco, and H. E. Dr. Mohammad Sabah Al-Salem Al-Sabah, Deputy Prime Minister and Minister of Foreign Affairs, Chairman, Board of Directors of Kuwait Fund for Arab Economic Development, on behalf of Kuwait Fund, while Mr. Osman Al-Fasi Al-Fihry, General Manager of the National Company for Highways of Morocco signed the Loan Agreement on behalf of the said Company. Mr. Abdulwahab Ahmed Al-Bader, the Director-General of Kuwait Fund for Arab Economic Development signed the Loan Agreement on behalf of Kuwait Fund.
The objectives of the project are to respond to the increasing demand on road transport between Fas-Wajda, reduce the rate of traffic accidents and promote agricultural, industrial and touristic activities in the area of the Project.
The Project consists of a highway between Fas-Wajda of a length of 328 KM which is designed according to international standards for ensuring safety and easy traffic flow. The project also includes necessary facilities such as elevated crossings, rest and car service areas and toll collection centers in addition to the consulting services for detailed engineering and supervision of the Project..
Total cost is estimated about 9.5 Billion Moroccan Dirhams, equivalent to about KD 319.8 million. The Fund's loan shall cover 8% of the foreign cost of the Project and 4.69% of its total cost without the interest during construction. Work on project shall begin by the first quarter of 2007 and is expected to be completed by the end of 2010.
The Loan matures over a period of 22 years, including a grace period of 5 years. The loan will be repaid in 34 semi-annual installments, the first of which shall be due on the first date on which any interest or other charges on the loan shall be due after the elapse of the above-mentioned grace period. The loan will be charged interest at the annual rate of 3.5% in addition to administrative fees at the annual rate of 0.5% of 1%.
The signing of this Loan brings to 7 The number of loans extended by Kuwait Fund to the National Company for Highways in Morocco and 32 Loans extended to the Kingdom of Morocco or its agencies, totaling about306 million Kuwaiti Dinars, equivalent to about 1,052,668 U. S. Dollars to participate in the financing in projects in different sectors of the economy; in addition to a Technical Assistance and a Grant in a total amount of 1,150,000/- Kuwaiti Dinars, equivalent to about US$ 3,910,000, the first to finance the feasibility study for the Rural and Village Water Project while the second to finance Assilah Hospital expansion project and old Person's Home Project in Assilah city.