A Loan Agreement between Kuwait Fund for Arab Economic Development and The Republic of South Sudan has been signed today in Juba whereby Kuwait Fund will make a Loan in an amount of KD. 3,500,000/- (equivalent to about US$ 11.9 million) to assist in financing for Constructing and Equipping of Kuwait Women and Children Hospital Project.

 

            The Loan Agreement was signed by HE Ms. / Mary Jrvas Bak - Deputy Minister of Finance and Economic Planning  on behalf of the Republic of South Sudan, and Mr. Hamad Al-Omar, Deputy Director-General of Kuwait Fund for Arab Economic Development on behalf of Kuwait Fund in attendance of Mr. Abdul-Rahman Al-Hashim, Regional Manager for Central, East and South African countries.

 

            The Project aims to enhance the development of the health sector of South Sudan by meeting increasing demand for women and children healthcare services, improving its quality and securing hospital services and healthcare coverage in Juba and its environs. The Project will provide adequate infrastructure and technical facilities, as well as meeting the needs for modern medical equipment and specialized diagnostic and therapeutic care services, with the aim of providing better quality maternal services and reducing infant mortality rate. Thus, contributing to the improvement of the health status of the populations, which will have a positive impact on the country's socio-economic indicators.

 

            The Project comprises all building construction works and electro-mechanical engineering works required to build, a new women and children hospital with a building area of about 3,000 square meters with a capacity of 150 beds, and consist of several medical units and clinical and administrative service facilities, in addition a staff housing blocks with a building area of about 930 square meters, car parking and landscaping. The Procurement and installation of medical and auxiliary equipment, furniture and ambulances. Institutional Support for (PIU). Consultancy Services for the preparation of the detailed design, technical specification and contract documents of the required medical equipment; preparation of tender documents and assisting in the bidding evaluation and procurement services; (c) supervision of Project implementation, including the equipment commissioning and installation.

 

            The total cost of the Project is estimated at about US$ 13.124 million, equivalent to about KD. 3.860 million of which about KD. 3.460 million and representing about 90% of the total costs, are in foreign currency. The Fund's Loan will cover about 90% of the cost of the Project including the entire foreign cost of the Project.

 

            The Loan matures over a period of 26 years including 5 years grace period, and will be amortized in 42 semi-annual installments, the first of which will be due on 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 rate at 1% 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 marks the first loan to be extended by Kuwait Fund to The Republic of South Sudan.