KFAED and Republic of Guinea sign loan deal
$27.2 mln to finance road project
KUWAIT CITY, May 23: A Loan Agreement between Kuwait Fund for Arab Economic Development (KFAED) and the Republic of Guinea has been signed today in Ahmedabad, Republic of India, during the Annual Meetings of the African Development Bank, whereby Kuwait Fund extends a Loan in an amount of KD 8 million, equivalent to about $27.2 million to participate in the financing of the Rehabilitation of Gueckedou Kondebadou Road Project. It is worth mentioning that in extending its loans and grants, Kuwait Fund depends exclusively on its own resources.
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 3rd AfricaArab Summit held in Kuwait during the period Nov 19-20, 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 Guinea by His Excellency HE Kanny Diallo – Minister of Planning and on behalf of Kuwait Fund for Arab Economic Development by Hesham Al-Waqayan, Deputy Director General of the Fund.
The Project aims at meeting the increasing demand for transport of passengers and goods on the southern east area of Guinea, thereby promoting trade activities among the neighboring countries, and thus contributing to the economic and social development in the Project area. The Project also aims to reduce vehicle operation and road maintenance costs, as well as travel time.
The Project involves the Rehabilitation of Gueckedou Kondebadou Road located on the National Road (RN2) with a length of about 35 km, consisting of two lanes with a width of about 7m, and a shoulder of 1.5m in each side. The Project also includes consultancy services for revision of tender documents and supervision of construction works.
The signing of this Loan brings to 13 the number of loans accorded by Kuwait Fund to the Republic of Guinea, where the Fund previously provided 12 loans totaling about KD 48.577 million, equivalent to about $165.161 million to participate in the financing in projects in various sectors. In addition to the above, the Fund had extended to the Republic of Guinea 4 technical assistances, the total value of them is about KD 667 thousand (i.e. about $2.267 million). In addition to the provision of $3.961 million from the Goodwill Fund established by the Government of Kuwait.