KFAED signs loan agreement of $15 million to finance road project in Burundi

A loan agreement between Kuwait Fund for Arab Economic Development (KFAED) and the Republic of Burundi has been signed yesterday in Bujumbura whereby Kuwait Fund extends a Loan in an amount of KD 4.411 million equivalent to about $15 million to participate in the financing of the Rumonge - Nyanza Lac Road Project. It is worth mentioning that in extending its loans and providing other kinds of development assistance, Kuwait Fund depends entirely on its own resources.

The loan was made in pursuance of an initiative by His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, the Amir of the State of Kuwait announced at the 3rd Africa-Arab Summit held in Kuwait during the period 19 - 20 November 2013 to grant concessionary loans to African countries to the tune of $1 billion 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 Burundi by Dr Domitien Ndihokubwayo, Minister of Finance, Budget and Privatization of the Republic of Burundi, and on behalf of Kuwait Fund for Arab Economic Development by Ghanem Sulaiman AlGhenaiman, Deputy Director-General of the Fund, in attendance of Ayad AlGharaballi, Regional Manager, Central, East & South African Countries at the Fund.

The project aims to meet the increasing demand for the transport of passengers and goods on the north-south corridor of Burundi, promoting the increasing trade with the neighboring countries, and to contribute to the economic and social development of the project area. The project also aims to reduce vehicle operation and road maintenance costs, and travel time.

The project consists of the rehabilitation of the Rumonge - Nyanza Lac Road, with a length of about 52 kilometer, consisting of two lanes, with a width of about 7 meter, and shoulder of about 1.5 meter on each side. The project comprises, also, the consultancy services for design review and the supervision of the construction of works, in addition to the required Institutional support.

The signing of this Loan brings to 9 the number of loans accorded by Kuwait Fund to the Republic of Burundi, where the Fund previously provided 8 loans totaling about 12.59 million Kuwaiti Dinars, to participate in the financing in projects in various sectors.