KFAED offers Bangladesh further USD 51 mln loan for Paira Bridge

DHAKA, May 4 (KUNA) -- The Kuwait Fund for Arab Economic Development (KFAED) on Wednesday signed a loan agreement worth KD 15 million (USD 51 million) with the government of Bangladesh as part of financing a major bridge there.
The Paira Bridge (Lebukhali Bridge) is expected to contribute positively to social and economic development in southern Bangladesh.
KFAED Director General Abdulwahab Ahmad Al-Bader and Bangladesh's Finance Ministry Undersecretary for Economic Affairs Mahmoude Bijum signed the agreement during His Highness the Prime Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah's current visit to the South Asian country.
A first loan agreement worth KD 14 million (USD 48 million) was signed in March 2012 between KFAED and Dhaka for the bridge.
The Lebukhali Bridge, to be constructed over the river Paira, will streamline the flow of goods and people, directly linking south Bangladesh to the capital Dhaka.
Total costs of the project, whose length hits 1,470 meters and width 76.19 meters, are estimated at KD 44.4 million (USD 151 million). It is expected to be completed by mid-2019.
The 23-year loan signed today includes a four-year grace period with interest rate of 1.5 percent, in addition to 0.5 percent administrative fee annually.
With today's agreement, KFAED has thus offered the government of Bangladesh 23 loans totaling KD 151 million (USD 513.4 million).
In addition, KFAED has presented three technical donations worth KD 423,000 (USD 1.44 million) to Dhaka to fund technical and economic feasibility studies for transport projects.
KFAED has supervised a donation worth USD 10 million presented by the State of Kuwait to Bangladesh, from the Goodwill Fund allocated for food security in Muslim countries.
His Highness the Premier is on an Asian tour that also includes Vietnam, South Korea and Japan. (Pick up previous) msa