A Loan Agreement was signed today in Tunis between the Republic of Tunisia and the Kuwaiti Fund for Arab Economic Development, whereby the Fund shall make a loan amounting to eight million five hundred thousand Kuwaiti dinars (equivalent to approximately U.S. $ 29.75 million) for the participation in the financing of the Ring Road X Section II.
The loan agreement was signed on behalf of the Government of the Republic of Tunisia by His Excellency Mr. Yassin Ibrahim, Minister of Development, Investment and International Cooperation and on behalf of the Fund Mr. Abdulwahab Al-Bader, Director General of the Fund, in attendance of His Excellency Mr. Fahad Ahmed Al-Awadhi, Ambassador of the State of Kuwait to Tunisia.
The project aims at supporting the economic and social development in Tunisia through contributing to the integration of the road network in the northern region of the country and assists in facilitating the smooth flow of traffic around the city of Greater Tunisia and reduce travel and freight expenses.
The project consists of constructing a two-way ring road motorway 15 km long, 7.0 m wide in each direction, with 3.0 m side shoulders, in addition to the construction of 5 flyovers, storm-water drainage works and traffic safety facilities. The project also includes consultancy services for design and supervision. The project main elements are; (1) land acquisition, (2) earthworks, asphaltic paving, construction works of flyovers, drainage works and safety facilities, and (3) engineering consultancy services.
The total cost of the project is estimated at about 90.7 million Tunisian Dinars (or about 16.2 million Kuwaiti dinars) of which about 8.9 million Kuwaiti dinars in foreign currencies. The project's costs in foreign currencies represent about 55% of the total project costs. The Fund's loan will cover about 52% of the total project costs, while the remaining costs of the project will be covered by the Government of Tunisia, in addition to any cost overruns that may occur.
The Loan will be for a period of 20 years, including a grace period of 4 years, and will be amortized in 32 semi-annual installments, the first of which in the first date is worth it to pay interest or other costs on the loan after the elapse of the grace period. The loan bears interest at 2% per annum, in addition to the fee by 0.5% per annum to meet administrative costs and other expenses incurred in the implementation of the Loan Agreement.
By concluding and effectiveness of this Loan Agreement, it will be the 33rd loan extended by the Fund to the Republic of Tunisia, as the Fund had already extended the Republic of Tunisia 32 Loans, amounting to 164.5 million Kuwaiti Dinars (equivalent to about 575.75 million U.S.$), to finance projects in various sectors. In addition, the Fund had extended to the Republic of Tunisia one technical assistance amounting KD 100,000/-, equivalent to about U.S. $ 350 thousand to finance the feasibility study for Shore Protection Project in Agir-Gerba.
