A Loan Agreement was signed today in Victoria, in the Republic of Seychelles and Kuwait Fund for Arab Economic Development, whereby the Fund will make a loan of Kuwaiti Dinars 2.5 million (KD 2,500,000) equivalent to about US$ 8.5 million to assist in the financing of the Rehabilitation and Development of Educational Establishments Project.

The Loan Agreement was signed on behalf of the Republic of Seychelles by His Excellency Hon. Pierre Laporte, Minister for Finance, Trade and Investment and on behalf of Kuwait Fund for Arab Economic Development by Mr. Hesham Al-Waqayan, Deputy Director-General of Kuwait Fund.

Mr. Abdul-Rahman Al-Hashim, Regional Manager for Central, East and Southern Africa at the Fund, attended the ceremony of signature of the Loan Agreement.

The Project aims at contributing to the economic and social development of the Republic of Seychelles by supporting the plans of the Government of the Seychelles for the development, expanding the capacity and improving the quality of primary, secondary technical education establishments.

The project comprises the rehabilitation of about 1,765 square meters of existing buildings and construction of about 3000 square metres of new buildings in Larosiere Primary School, upgrading library facilities in about 18 primary schools, the supply and installation of furniture, procurement of computers educational, sports and recreational equipment and books for Larosiere Primary School the and other primary schools and for 29 kinder gardens. The Project also includes the construction of about 3,200 square metres of new buildings in Seychelles Agricultural and Horticultural Training Centre, the supply and installation of furniture and the procurement of laboratory equipment and appliances for the said Centre.  In addition, the Project includes the provision of institutional support to the Project Implementation Unit as well as the consultancy services required for the Project. The Project is expected to be completed by the end of 2017.  

The total cost of the project is estimated at about Seychellois Rupees 139.456 million, equivalent to about Kuwaiti Dinars 3.362 million, of which about Seychellois Rupees 111.19 million, equivalent to about Kuwaiti Dinars 2.681 million, will be in foreign currency and represents about 80% of the total cost. The loan from Kuwait Fund will cover about 93% of the foreign exchange costs and about 74% of the total cost of the Project.

The loan is made for a term of 24 years, including a grace period of 4 years.  The loan will be amortized in 40 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 1.5% per annum, in addition to 0.5% per annum to cover administrative charges and other expenses involved in the implementation of the Loan Agreement.

The loan represents the fourth loan by Kuwait Fund to the Republic of Seychelles, as the Fund already made 3 loans to the Republic of Seychelles with a total amount of Kuwait Dinars 3.574 million, equivalent to about U.S $ 12.26 million, for the financing of three projects. The Fund also provided grants and technical assistance amounting in total to about Kuwait Dinars 461,300, equivalent to about U.S. $ 1.582 million, for the study of 4 projects.