A Supplementary Loan Agreement was signed today in Sharm El-Sheikh, Arab Republic of Egypt between the Republic of Niger and the Kuwait Fund for Arab Economic Development, whereby the Fund will provide a Loan in the Amount of 2.94 Million Kuwaiti Dinars (equivalent to about US$10 Million), to participate in the financing of the Kandadji Dam Project.
The Supplementary Loan Agreement was signed on behalf of the Republic of Niger by His Excellency Amadou Boubacar Cisse – Minster of Economic Planning Territorial Management and Community Development , while the Supplementary Loan Agreement was signed on behalf of the Kuwait Fund for Arab Economic Development by Mr. Abdulwahab Al-Bader, Director-General of the Fund.
The Project will contribute to improve and restore the ecosystem of the River Niger by building Kandadji Dam, to enhance the development of agriculture for food security, energy generation and hence alleviate the poverty in the country.
The Project includes the preparation work near the Dam site, the civil work for the construction of an earth fill Dam of about 8.4km in length, and about 26m height to impound about 1.56 billion cubic meters, in addition to the procurement and installation of the hydro mechanical equipments. The Project also includes, the construction of the power plant, the construction of the electrical transfer line, the construction of the diversion road and access to the Dam, the social work, engineering services for the supervision of the work execution, and the Project management.
The total cost of the Project is estimated at about West African CFA Francs (FCFA) 606.49 Billion, equivalent to about 324.41 Million Kuwaiti Dinars, of which about FCFA 168.85 Billion, equivalent to about 90.28 Million Kuwaiti Dinars, is in local currency, representing about 28% of the total cost of the Project, and about FCFA 437.64 Billion, equivalent to about 234.13 Million Kuwaiti Dinars, is in foreign currency, representing about 72% of the total cost of the Project. The Fund's First Loan (in the amount of 5.7 Million Kuwaiti Dinars) and Supplementary Loan will cover about 2.7% of the total cost of the Project, while the remainder of the Project cost shall be financed by The Islamic Development Bank, The Arab Bank for Economic Development in Africa, The West African Development Bank, The Saudi Fund for Development, The Abu Dhabi Fund for Development, The African Development Bank, The OPEC Fund for International Development, The ECOWAS Bank for Investment and Development, The World Bank, and the French Development Agency, in addition to the participation of the Government of Niger.
The First Loan and Supplementary Loan (consolidated together) shall be for a period of 24 Years, including a grace period of 6 Years, and shall be repaid in 36 semi-annual installments, whereby the Two Loans (upon consolidation) shall be repaid according to the Consolidated Amortization Schedule annexed to the Supplementary Loan Agreement. The Loan bears an interest rate of 1.0% per annum, in addition to a rate of 0.5% per annum to meet administrative costs and other expenses incurred in the implementation of the Loan Agreement.
This Kuwait Fund's Loan represents the 11th Loan extended by the Kuwait Fund to the Republic of Niger, as the Kuwait Fund has previously extended 10 Loans to the Republic of Niger, to finance projects in various sectors, with a total amount of approximately 25.29 Million Kuwaiti Dinars (equivalent to about US$86 Million). The Kuwait Fund has also provided the Republic of Niger with Nine Grants with a total amount of approximately 1.063 Million Kuwaiti Dinars (equivalent to about US$3.61 Million), in addition to One Technical Assistance in the amount of about 85 Thousand Kuwaiti Dinars (equivalent to about US$289,000). The Kuwait Fund also administered a Grant provided by the Government of the State of Kuwait to the Republic of Niger, under the Goodwill Fund, in the amount of about 1.45 Million Kuwaiti Dinars (equivalent to about US$4.93 Million).