A Loan Agreement was signed today in Bamako, between the Republic of Mali and Kuwait Fund for Arab Economic Development, whereby the Fund shall make a Loan of Kuwaiti Dinars five million eight hundred eighty thousand (KD. 5,880,000) to help the financing the Bamako-Senou Airport Project in the Republic of Mali.
The Loan Agreement was signed on behalf of the Republic of Mali by H.E. Mme. Bouace Fily Sissoko, Minister of Finance, and on behalf of the Fund by Mr. Hamad Al-Omar, Deputy Director-General of Kuwait Fund for Arab Economic Development. Mr. Thamer Al-Failakawi, Regional Manager for West African countries at the Fund attended the signing ceremony of the Loan Agreement.
The project aims to contribute towards the improvement of the economic conditions in the Republic of Mali through the expansion and improvement of air transport facilities to cater for the excessive demand on air transport by constructing and renovating the existing international airport in the Capital Bamako. The Project includes the renovation of the landside structures of the airport in addition to the expansion and rehabilitation of the airside structures and installation of necessary equipment.
The total cost of the Project is estimated at about US$ 57.8 million (i.e. about KD 17 million) of which the foreign currency is equivalent to about US$ 40 million (i.e. about KD. 11.8 million) which represents about 70% of the total cost of the Project.
The Fund's Loan covers about 34.6% of the total costs of the project. In addition to that, OPEC Fund is extending a loan of US$ 10 million, and IDB will contribute by a loan equivalent to US$ 20 million in the financing of the project. The Government of Mali is committed to cover the remaining costs of the project or any extra thereof.
The Loan will be for a period of 26 years including 4 years as a grace period, and will be amortized in 44 semi-annual installments, the first of which will be due on the 1st date on which any interest or other charge on the loan shall fall due, after the elapse of the above-mentioned grace period.
The Loan bears an interest at 1% per annum, in addition to 0.5% per annum to cover administrative costs and other expenses incurred in the implementation of the Loan Agreement.
Upon signature of this Loan Agreement, this loan will be the 12th loan extended by the Fund to the Republic of Mali considering that the Fund had already extended to the Republic of Mali 11 loans before with a total amount of KD. 45.12 million for financing projects in different sectors. The Fund extended also to Mali 3 Government Grants with a total amount of KD. 6.7 million (i.e. US$ 23.4 million) completely withdrawn.