A Loan Agreement was signed today in Belmopan, in Belize and Kuwait Fund for Arab Economic Development, whereby the Fund will make a loan of Kuwaiti Dinars 4 million equivalent to about US$ 13.6 million to assist in the financing of the Rehabilitation of Hummingbird Highway Project.

The Loan Agreement was signed on behalf of Belize by His Excellency Mr. Dean Barrow, Prime Minister and Minister for Finance, and on behalf of Kuwait Fund for Arab Economic Development by Mr. Ghanem Sulaiman Al-Ghenaiman, Deputy Director-General of Kuwait Fund, in attendance of Mr. Abdullah Al-Musaibeeh, Regional Manager for Latin America and Caribbean Countries.

The Project aims to meet the increasing demand for the transport of passengers and goods in the Southern region of Belize, promote trade with the neighbouring counties, and contribute to the economic and social development of the project area. The project also aims to reduce travel time, vehicle operating and road maintenance costs. 

The project comprises the Rehabilitation of Hummingbird Highway of total length of about 87 Kilometres, consisting of two lanes, with a width of about 7 meters and shoulders of about 1.5 meters on each side.     

The total cost of the project is estimated at about Belizean Dollar 75.084 Million, equivalent to about Kuwaiti Dinars 11.042 Million, equivalent to about Kuwaiti Dinars 8.969 Million, in foreign currency and represents about 81% of the total cost of the project. The loan from Kuwait Fund will cover about 36% of the total cost of the Project. It is expected that the OFID will make a loan of US$ 12 Million, equivalent to about 3.53 Million Kuwaiti Dinars, to cover about 32% of the total cost of the project. While the remaining cost will be covered by the Government of Belize. The project is expected to be completed by the end of 2017.

 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 2% per annum, in addition to 0.5% per annum to cover administrative charges and other expenses involved in the implementation of the Loan Agreement. 

Upon signature of this loan agreement, this loan will be the 5th loan extended by the Fund to Belize considering that the Fund had already extended to Belize 4 loans with in the Transport Sectors, the amount totaling 8.8 million Kuwaiti Dinars.  The Fund had also extended to Belize 2 Technical Assistance to finance the feasibility study for the transportation sector for a total amount of KD. 302,000/ (about US$ 1 Million).