A Loan Agreement was signed today in Lome between the Government of the Republic of Togo and the Kuwait Fund for Arab Economic Development,  whereby the Kuwait Fund will make a loan in the amount of Kuwaiti Dinars three million  and four hundred thousand (equivalent to about U.S. $ 12 million) for the financing of  Kpalime –Adagali – Atakpame  Road Project.

The Loan Agreement was signed by H.E. Agee Ayasur -Minister of Finance  on behalf of the Republic of Togo, whereas Mr. Ghanem Sulaiman Al-Ghenaiman, Deputy Director-General, signed the Loan Agreement on behalf of the Fund.

The aim of the Project is to enhance the economic and social development of South Western regions of Togo, to satisfy the increasing demand of local traffic, and to promote transport means between these regions and Lome, the Capital and the main sea port of the country. 

The Project consists of the construction of an asphalted road between the town of Kpalime and the town of Atakpame with an approximate length of 102 km. The width of the road shall be 7.4 meters with 1.5 m. paved shoulders in rural areas, and 9 meters with 2.0 m. paved shoulders in urban centers. The Project includes mainly road construction works including earthworks, paving layers, bridge works, drainage facilities, and safety measures. The Project also includes the consultancy services for supervision of the construction works and institutional support for the Directorate of Public Works including administrative costs, the provision of all-terrain vehicles and office equipment.

The total cost of the Project is estimated at African Francs 30.24 billion, equivalent to about K.D. 19.76 million, of which about K.D. 16 million in foreign currencies. The Fund's Loan will cover about 16% of the total cost of the project. The Arab Bank for Economic Development will also participate in the financing of the project with a contribution amounting to about 14% of the total cost, along with the OPEC Fund for International Development contribution amounting to about 14%, and the Islamic Development Bank and the Saudi Fund for Development participations amounting to about 16%  each of the total cost of the project, while the remaining cost will be covered by the Government of Togo.

The Loan is made for a term of 24 years, including a period of grace of about 4 years, and will be amortized by 40 semi-annual installments, the first of which will be due on the first date on which any interest or other charges on the loan shall fall due in accordance with the Loan Agreement after the elapse of the grace period. Loan will bear interest at 1.5% per annum in addition to a charge of 0.5% for meeting administrative costs and the expenses of implementation of the Loan Agreement.

By extending this loan, the Fund will have provided 6 loans to the Republic of Togo, as the Fund has previously extended to the Republic of Togo 5 loans with a total amount of about K.D. 15.8 million for the financing of projects in the energy, water and road sectors.  In addition, the Fund also provided 3 technical assistance to the Republic of Togo of total amount of KD 400,000 for financing feasibility studies in the sectors of potable water, irrigation and roads.