A Loan Agreement was signed today in Nairobi, Kenya during the Annual Meeting of the African Development Bank group between Kuwait Fund for Arabic Economic Development and Republic of Senegal, whereby the Fund will provide a Loan of K.D. 5.0 million (equivalent to about US 16.5 million) to assist in financing The Highway Dakar-Tivaouane-Saint Louis project (Gandon-Saint Louis Section) in the Republic of Senegal. The Project achieves parts of the Sustainable Development Goals, including: the first (No Poverty), the second (Zero Hunger), the third (Good Health and Well-Being), the fourth (Quality Education), the eleventh (Sustainable Cities and Communities) and the seventeenth (Partnerships for the Goals).

The Loan Agreement was signed on behalf of the Republic of Senegal by His Excellency Hon. Dr. Abdulrahmane Sarr the Minister of Economy, Planning and Cooperation, while the Loan Agreement was signed on behalf of the Kuwait Fund of Arab Economic Development by Mr. Waleed Shamlan Al-Bahar, Acting Director-General of the Fund.

The project aims to support the economic and social development of the country by the improving the link between the major cities in the western regions, which are located on the northern coast of the country’s capital, and supporting regional integration between Senegal and neighboring countries in order to meet the growing demand for local and international transport for passengers and goods, which will lead to an increase in the level of transportation efficiency, the safety of vehicles movement and reduce operation costs and transportation time.

The project involves the construction work of the Gandon-Saint Louis section with a length of about 11 km, consisting of two lanes with a width of about 7 m in every direction with an emergency lane on each side with a width of 3 m, and a road shoulder of 1.5 m in each side, in addition to a median of 2.6 m, with the construction of all required water drainage, and facilities for an upper intersection, a station for collecting tolls and traffic safety. The project also includes institutional support, a workshop for launching of the project, technical and financial auditing, land acquisition and consulting services for supervision and management of the implementation of the project.

The total cost of the project is estimated at approximately 60.254 billion West African francs (equivalent to about 29.1 million Kuwaiti dinars). The proposed loan by the fund in the amount of K.D. 5.0 million covers approximately 17% of the total cost, and the Arab Bank of Economic Development in Africa participating and financing the project by providing a loan equivalent to K.D 20.0 million.

The term of the Kuwait Fund Loan is 26 years, including a grace period of 4 years. The Loan is to be amortized in 44 semi-annual installments, the first of which will be due on the first date on which interest or other charges on the Loan will be due, in accordance with the Loan Agreement, after the expiry of the above-mentioned grace period. The Loan bears interest at the rate of 2% per annum in addition to a service charge of 0.5% per annum for meeting administrative costs and the expense of implementing the Loan Agreement.

Upon signature of this Loan Agreement, the Fund will have provided 33 Loans to the Republic of Senegal, as the Kuwait Fund has previously extended 32 Loans, to finance projects in different sectors, with a total amount of about K.D. 153.8 million of which about K.D. 122 million have been disbursed as of 06/05/2024, which constituted about 85% of the value of the loans and about K.D. 68.7 million have been reimbursed. The Fund also extended 3 grants of worth KD 662.9 thousand, which were fully withdrawn, and 2 grants from the government of the State of Kuwait amounting to KD 2.952 million which were fully withdrawn.