A Loan Agreement was signed today in Beirut between the Republic of Lebanon and the Kuwait Fund for Arab Economic Development, whereby the Fund will provide a Loan in the Amount of KD 7,000,000 (equivalent to about US$ 23.8 million), to participate in the financing of the Kark - Riyak Road Project in the Republic of Lebanon.

 The Loan Agreement was signed on behalf of the Republic of Lebanon by His Excellency Mr. Nabeel Al-Jisr, President of the Council for Development and Reconstruction, and was signed on behalf of the Kuwait Fund for Arab Economic Development  by  Mr. Abdulwahab Al-Bader, Director-General  of the Fund.

 The Project aims to support economic and social development in the Bekaa region by meeting the demand for the movement of goods and passengers and remove the traffic jams on the international transport axis extending between Chtaura and Baalbek and Syrian borders to reduce vehicle operating costs and travel time and improve the level of safety on the road.

The Project consists of the rehabilitation, improvement and expansion of the existing road between Kark and Riyak six kilometers long to become main roads standards with two lanes 3.5 meters wide in each direction with a middle island of two meters wide or concrete median barrier, with shoulders of 2.5 meters wide, and a pedestrian corridor one meter wide one on each side. The Project includes the construction of three intersections on one level, and a bridge over the Litani River, in addition to the relocation of utilities and sanitation facilities, protection and road lighting and safety requirements. The Project also includes consultancy services for implementation supervision.

The total estimated costs of project, (including the Contingencies for quantities and prices, fees, taxes and interest during the implementation of the project) is approximately 45,511 million LBP is equivalent to about 30.2 million U.S. Dollars, or about 8.9 million Kuwaiti Dinars, of which about 6.4 million Kuwaiti Dinars in foreign currencies. The Fund's Loan covers about 100% of the Project's costs in foreign currencies, while the remaining costs of the Project will be covered by the Government of the Republic of Lebanon.

The Loan shall be for a period of 24 Years including 4 Years grace period. The Loan bears interest at 2% per annum, in addition to 0.5% per annum to cover administrative and other expenses incurred in the implementation of the Loan Agreement.

By signing this Loan Agreement, the Fund will have provided Lebanon with 23 Loans, as the Fund has previously extended to Lebanon 22 Loans to finance projects in various sectors totaling approximately KD 217 million. The Fund has also provided Lebanon with Two Technical Assistances totaling about KD 880 thousand to finance the preparation of technical and economic feasibility studies, in addition to 6 Grants totaling approximately KD 2.7 million to finance projects in the Health Sector and Train Government Employees. The Fund also administers 7 Grants provided by the Government of the State of Kuwait to the Republic of Lebanon totaling approximately KD 119 million to finance projects in the Health Sector in addition to the Reconstruction Program in Lebanon and the Rebuilding of Beirut Historical Museum.