In the presence of His Excellency Minister of finance the Republic of Cape Verde a Loan Agreement was signed today in Praia between the Republic of Cape Verde and Kuwait Fund for Arab Economic Development, whereby the Fund will provide a loan in the amount of KD 5,000,000 (Equivalent to about US$ 17 million) to assist in the financing of Praia water supply and waste water project in the Republic of Cape Verde.

 

                        The Loan Agreement was signed on behalf of the Republic of Cape Verde by His Excellency Mrs. Cristina Duarte, Minister of Finance of the Government of the Republic of Cape Verde, whereas Mr. Ghanem Sulaiman Al-Ghanaiman, Deputy Director-General of the Fund signed the Loan Agreement on behalf of the Fund in attendance of Mr. Thamer Al-Failakawi, Regional Manager for West African countries at the Fund.

 

                        The project aims at supporting the socio-economic development in Praia city by improving the environment and health conditions of the residence through the extension and improving of the water supply and wastewater services within the Project area. The Project area will cover around 18 localities to the north of Plateau city center in Praia.

 

                        The Project consists of mainly civil and electromechanical work required to establish a sustainable water supply and wastewater systems, in addition to the consulting services, institutional support and to construct a memorial at the project area.

 

The Project is expected to be completed by the mid of year 2021.

                        The total cost of the project is about KD 8.75 million (equivalent to about US$29.75 million) of which KD 6.16 million (equivalent to about US$ 20.9 million) is in foreign currency. 

 

                        The loan shall be for a period of 26 years including 5 years grace period.  The loan bears interest at 1.5% 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 Cape Verde with 7 loans, as the Fund has previously extended to Cape Verde 6 loans to finance projects in various sectors totaling about KD 12.138 million equivalent to about US$ 41.2 million, in addition to two technical assistance totaling about KD .232 Million (equivalent to about US$ .788 Million), in addition to one Grants totaling about KD .083 Million (equivalent to about US$ .282 Million).  The Fund also administers one grant provided by the Government of Kuwait to the Republic of Cape Verde totaling about KD .883 million (equivalent to US$ 3 million) to finance various projects in the Cape Verde.