On the occasion of the 4^th Africa–Arab Summit" in Malabo, Equatorial Guinea on 21 - 24 November 2016, a Loan Agreement was signed between the Government of the Republic of The Gambia and Kuwait Fund for Arab Economic Development, in the gracious presence of His Highness Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah, the Amir of the State of Kuwait, whereby the Fund will make a loan in the amount of five million Kuwaiti Dinars (K.D.5,000,000/-), equivalent to about U.S.$ 17 million, to the Republic of The Gambia, to assist in the financing of the Developing Basic and Secondary Schools Project.  It is worth mentioning that the Fund depends exclusively on its own resources in providing its loans and development assistance.

 

The Loan was made in pursuance of an initiative by His Highness Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah, the Amir of the State of Kuwait announced at the 3^rd Africa-Arab Summit held in Kuwait during the period 19 - 20 November 2013 to grant concessionary loans to African countries to the tune of one (1) Billion US Dollars spread over the succeeding five years for financing development projects in the African countries.

 

The Loan Agreement was signed on behalf of the Republic of the Gambia by His Excellenc Hon. Abdou Kolley, Minister of Finance & Economic Affairs, and on behalf of the Kuwait Fund for Arab Economic Development by His Excellency Shaikh Sabah Khaled Al Hamad Al Sabah, First Deputy Prime Minister  and Minister of Foreign Affairs, in attendance of His Excellency Anas Khaled Al Saleh, Deputy Prime Minister and Minister of Finance and Minister of Oil.

 

The Project aims to support the social and economic development of The Gambia through supporting the Government's Education Sector Strategic Plan (2016 - 2030) by developing and expanding about 39 Basic and Secondary schools in the 6 educational regions of the country.  This will allow access to the growing demand of student's enrollment in Basic and Secondary schools. In addition, it will contribute to the improvement of the quality of teaching and learning outcomes at these two important levels of the education sector and this will promote sustainable social and economic development. 

The project includes comprises of constructing new buildings, rehabilitating & maintaining educational facilities for about 39 existing Basic and Secondary Schools, and to supply and install the educational furniture, science laboratories, workshops' equipment and tools, and developing the teaching curriculum, as well as Institutional Support for PIU. The project also includes consulting services for design review and supervision of works.

 

The total cost of the Project is estimated at about 903 million Gambian Dalasi, equivalent to about 5.9 million Kuwaiti Dinars. The Fund loan, in the amount of five million Kuwaiti Dinars, covers about 85% of the project cost. , whereas the Gambian government will cover the rest of the project cost.

 

The Loan is made for a term of 26 years, including a grace period of 5 years, and will be amortized by 42 semi-annual installments, the first of which will be due on the first date on which any interest or other charges on the loan shall fall due after the elapse of the grace period.  Loan will bear interest at 1.0% per annum in addition to a charge of 0.5% for meeting administrative costs and the expenses of implementation of the Loan Agreement.

 

The aforementioned loan represents the thirteenth loan made by the Fund for financing projects in the Republic of The Gambia, as Kuwait Fund has already made 12 loans to the Islamic Republic of The Gambia in transport, agriculture, and education sectors with a total amount of K.D. 40 Million. Furthermore, the Fund has previously extended technical assistances with a total of K.D. 869,300. Additionally, the government of Kuwait provided a grant to the Republic of The Gambia within the framework of the Goodwill Fund of K.D.874,100 fully withdrawn.