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Monday , November 12 2018

KFAED signs $15 million loan deal with Republic of Burundi – Nyanza Lac Road Project to be financed

KUWAIT CITY, March 20: A loan agreement between Kuwait Fund for Arab Economic Development and the Republic of Burundi has been signed 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-Ahmed Al-Jaber Al-Sabah, the Amir of the State of Kuwait announced at the 3rd Africa-Arab Summit held in Kuwait during the period Nov 19-20, 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 Burundi by His Excellency 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 Al-Ghenaiman, Deputy Director-General of the Fund, in attendance of Ayad Al-Gharaballi, 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-km, 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.

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