Govt gazettes $20m Kuwait loan

GOVERNMENT has gazetted a $20 million loan that it secured from the Kuwait Fund for Arab Economic Development which it signed on March 24 this year to finance the development of irrigation infrastructure at Zhove Dam in Beitbridge District, Matabeleland South.

Finance and Economic Development Minister Patrick Chinamasa made the announcement in an Extraordinary Government Gazette published yesterday.

“It is hereby notified, in terms of Section 300 (3) of the Constitution of Zimbabwe, as read with Section 18 (2) of the Public Debt Management Act (Chapter 22:21), that the Minister of Finance and Economic Development has published the terms of the loan agreement for Zhove irrigation project signed between the Republic of Zimbabwe and Kuwait Fund for Arab Economic Development on 24th March, 2017,” reads the notice.

The period of the loan is 25 years, with a grace period of five years at the interest rate of 1,5 percent per annum.

The interest rate includes 0,5 percent per annum administration charges.

“The loan will be utilised for the purpose of the construction of a conveyance system to supply adequate and sustainable water from the Zhove Dam to irrigate 2 500 hectares of agriculture land to communities in Beitbridge District of Ferguson, Bishopstone, and Cawood Ranches, as well as the communal lands of Mtetengwe, Mabidi and Malala,” reads the notice.