A Loan Agreement between Kuwait Fund for Arab Economic Development and the Republic of Chad has been signed  in N'Djamenawhereby Kuwait Fund extends a Loan in an amount of K.D. 5 millionequivalent to about US$ 17 million to participate in the financing of theNgouri - Bol Road Project.

The Loan Agreement was signed by H.E. Issa Ali Taher, Minister ofPlanning, Economy and International Cooperation on behalf of the Republic of Chad, and Mr. Hamad S. Al-Omar, Deputy Director-General of Kuwait Fund for Arab Economic Development on behalf of Kuwait Fund.

The Project aims to enhance the economic and social development of the western region of ‘Lac', satisfy the increasing demand for local traffic and promote regional commercial exchanges and opening-up of the area of the north of Lake Chad. The Project will also contribute to the consolidation of regional economic integration by the progressive improvement of the Trans-Saharan road which connects six African countries: Chad, Niger, Nigeria, Mali, Algeria and Tunisia.

The Project consists of constructing an all-weather 7m. wide asphalted road between Ngouri and Bol, with an approximate length of 99 km. the width of each lane is 3.5m with 1.5m. shoulders on each side. The Project is expected to be completed by 2015.

The total cost of the Project is estimated at about 64.364 billion African  Franc, equivalent to about K.D. 37.860 million of which about K.D. 45.590 billion African  Franc, equivalent to about K.D. 26.818 million and representing about 70.8% of the total costs, are in foreign currency.

The Loan matures over a period of 24 years including 3 years grace period, and will be amortized in 42 semi-annual installments, the first of which will be due on 1st date on which any interest or other charges on the Loan becomes due after the elapse of the above mentioned grace period. The Loan bears an interest rate of 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 4 the number of loans extended by Kuwait Fund to The Republic of Chad, where the Fund previously provided 3 loans totaling about 7.3 million Kuwaiti Dinars, equivalent to about US$ 24.820 million to participate in the financing in projects in transport and water sectors of the economy; in addition to one Technical Assistance grant totaling about 14.8 thousands Kuwait Dinars, equivalent to about US$ 50.320 thousand. The Fund also administered the Government of Kuwait Grant of US$ 4 million thru the GoodWill Fund and another Government Grant of about K.D. 760 thousand (US$ 2.584 million ) to finance Village and Pastoral Water Supply Programme.