A Loan Agreement between Kuwait Fund for Arab Economic Development and The Republic of Benin has been signed today in Cotonou whereby Kuwait Fund extends a Loan in an amount of 5 million Kuwaiti Dinar equivalent to about US$ 17 million to participate in the of the Construction and Equipping of the Tchaourou Zone Hospital and Six Health Centers Project.
The Loan Agreement was signed by His Excellency Mr. Komi KOUTCHE, Minister of Economy and Finance of the Republic of Benin on behalf of the Republic of Benin, and Mr. Hamad S. Al-Omar, Deputy Director-General of Kuwait Fund for Arab Economic Development, on behalf of Kuwait Fund, in attendance of Mr. Thamer Al-Failakawi, Regional Manager for West African Countries.
The Project aims to support the development of the health sector of Benin by meeting increasing demand for healthcare services, improving its quality and securing hospital services and healthcare coverage in Tchaourou Commune of Borgou Department. The Project will provide adequate infrastructure and technical facilities, as well as meeting the needs for modern medical equipment and specialized diagnostic and therapeutic care services, with the aim of reducing morbidity and mortality. Thus, contributing to the improvement of the health status of the populations, which will have a positive impact on the country's socio-economic indicators.
The Project comprises constructing and equipping of: (A) Tchaourou Zone hospital; (B) one Commune Health Center; and (C) five District health Centers throughout Tchaourou Commune.
Total cost is estimated about 11.407 billion CFA Franc, equivalent to about K.D. 6.1 million of which about 9.9 billion CFA Franc, equivalent to about K.D. 5.3 million and representing about 87% of the total costs, are in foreign currency. The Fund's Loan will cover about 82% of the cost of the Project.
The Loan matures over a period of 25 years including 5 years grace period, and will be amortized in 40 semi-annual installments, the first of which will be due on 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 rate 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.
The signing of this Loan brings to 13 the number of loans extended by Kuwait Fund to The Republic of Benin, where the Fund previously provided 12 loans totaling about 31.3 million Kuwaiti Dinars, equivalent to about US$ 106.4 million to participate in the financing in projects in the transport, water and power sectors of the economy.