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KFAED signs loan agreement with Rwanda worth KD six mln

KFAED signs loan agreement with Rwanda worth KD six mln
KFAED signs loan agreement with Rwanda worth KD six mln
KUWAIT, May 30 (KUNA) -- Kuwait Fund for Arab Economic Development signed on Thursday a loan agreement with Rwanda worth KD six million (about USD 19.5 million) to finance a road project in the City of Muhanga.
In a statement to KUNA, KFAED said that the project aims to support economic and social development in Rwanda by providing a safe road that is accessible all year long in different weather conditions.
The project will also contribute to achieving a number of sustainable development goals, mostly associated with poverty, starvation, health and creation of job opportunities, it said.
The total cost of the project reached about KD 7.99 million (about USD 26 million), and the loan covers about 75 percent of the total cost of the project. Rwandan government pledged to cover the rest of the amount, in addition to any extra cost that might come up during the execution of the project, he noted.
He mentioned that the loanآ’s duration is 25 years with an additional grace period of five years. The loan is repayable in 40 semi-annual instalments, with an interest rate of one percent annually with an 0.5 percent annual fee for to cover the administrative costs and execution.
KFAED has provided 10 loans to Rwanda to finance projects in various sectors, with a total amount of about KD 29.4 million (about USD 95.8 million), of which about KD 8.3 million (about USD 27 million) were repaid.
KFAED extends loans on concessionary term to finance development projects in the developing countries. The Fund also provides technical assistance to finance the costs of the feasibility studies of projects. (end) md.bb