Mozambique: Loan Agreement With Kuwait Fund

Maputo — Mozambican Finance Minister Manuel Chang on Tuesday signed a credit agreement worth 10.5 million US dollars with the Kuwait Fund, intended to support rural electrification in the north of the country.

The project, with a total cost of 55 million dollars, covers the northernmost province of Niassa, and the adjacent districts of Balama and Namuno, in Cabo Delgado province. In an initial phase, the project will cover 32,000 households.

Chang declared “the implementation of this project will allow the extension and improvement of the electricity grid in that part of northern Mozambique, thus contributing to making viable the strategies of the government expressed in its five year programme”.

The project is co-funded by the Arab Bank for Economic Development in Africa (BADEA), with 10 million dollars; the Islamic Development Bank (BID), with 6.5 million; the Saudi fund, with 15 million; and the OPEC Fund, with 10 million. The government itself will contribute 3.3 million dollars from the state budget.

“These are soft loans, with a period of maturity of 30 years, including a six year grace period”, said Chang. “The interest rate is 2.2 per cent”.

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