A Loan Agreement was signed today in Abidjan between the Republic of Cote d'Ivoire and Kuwait Fund for Arab Economic Development, whereby the Fund shall make a Loan of Kuwaiti Dinars Five Million Eight Hundred Eighty Thousand (KD 5,880,000) (i.e. about US$ 20.58 million) to help finance the Bouna-Doropo-Burkina Faso Road Project in the Republic of Cote d'Ivoire.

The Loan Agreement was signed on behalf of the Republic ofCote d'Ivoire by Mme Niélé Kaba, Ministre Auprés du Premier Ministre Chargé de L'Economie et des Financesand on behalf of the Fund by Mr. Hamad S. Al-Omar, Deputy Director-General of the Kuwait Fund for Arab Economic Development.

The project aims to meet the increasing demand for the transport of passengers and goods in the Northern East region of the Republic of Cote d'Ivoire, promoting increasing trade with the neighboring countries, and to contribute to the economic and social development of the project area.  The project also aims to reduce vehicle operation and road maintenance costs, and travel time.

The project comprising the Construction of Bouna-Doropo-Burkina Faso Road, a length of about 91 kilometers and consisting of two lanes, with a width of about 7 meter, and shoulder of about 1.5 meter on each side.

The project consist of the following components:

1. Civil works, which include site preparation, earthworks, drainage, pavement  layers, safety provisions and signage.

2. Institutional Support to the PIU, which includes the provision of vehicles, office  equipment, and operation cost.

3. Project Financing Auditing.

4. Project Administration Services.

5. Consultancy Services of Design and tender documents Review, and the supervision of the construction of works.

The project starts in the beginning of 2013 and is expected to be completed by the end of 2015.

The total cost of the Project is estimated at CFA 51.8 billion (i.e. about KD 30.5 million) of which the foreign currency is equivalent to about KD 20.9 million which represents about 69% of the total cost of the Project. The Fund's loan will cover about 19.2% of the total cost of the project, or about 28% of the costs in foreign currency.

The Loan will be for a period of 20 years including 4 years as a grace period, and will be amortized in 32 semi-annual installments, the first of which will be due on the 1^st 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 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.

Upon signature of this loan agreement, this loan will be the 3^rdloan extended by the Fund to the Republic of Cote d'Ivoire considering that the Fund had already extended to the Republic of Cote d'Ivoire two loans before with a total amount of KD 6.35 million (about $ 21.7 Million) in the Irrigation and Transport Sectors.  The Fund had also extended to Cote d'Ivoire one Technical Assistance Grant to finance the feasibility studies of an Agricultural project for a total amount of KD 100,000/ (about 340 thousand Dollars).