A Loan Agreement was signed today in Niamey between the Republic of Niger and the Kuwait Fund for Arab Economic Development, whereby the Fund will provide a Loan in the Amount of 6.0 Million Kuwaiti Dinars (equivalent to about US$20.4 Million), to the Republic of Niger, to participate in the financing of the Filingue-Tahoua Road Project (Lot-3).
The Loan Agreement was signed on behalf of the Government of the Republic of Niger, by His Excellency Saidou Sidibe - Minister of Economy and Finance , while the Loan Agreement was signed on behalf of the Kuwait Fund for Arab Economic Development by Mr. Hamad Al-Omar, Deputy Director-General of the Fund in attendance of Mr. Thamer Al-Failakawi, Regional Manager for West African Countries.
The Project aims to provide a reliable access between the towns of Tebaram and Tahoua in the North-East of the Republic of Niger, by constructing a paved road of about 92 km long, to meet the increasing demand for transport services of passengers and goods, as well as the connection with neighboring countries, which leads to enhancing the socioeconomic development of the Country.
The Project is considered Lot No. 3 of the Main Road between Fillingue-Tahoua, which is 274 km long. The Project works consist of the construction of about 92 km of asphalt road from Tebaram to Tahoua, and its related Consultancy Services. It also consists of social and environmental ancillary works, such as drilling of water wells, construction of school fences, health awareness, and other services and traffic safety, institutional support, financial auditing, and a Workshop carried-out by the Islamic Development Bank.
The total budgetary cost of the Project, including physical and price contingencies and interest during the implementation period, is estimated at about West African CFA Francs (FCFA) 43.407 Billion, equivalent to about 21.7 Million Kuwaiti Dinars, of which about FCFA 24.775 Billion, equivalent to about 12.4 Million Kuwaiti Dinars, is in foreign currency, representing about 57% of the total cost of the Project. The Project is exempt from Taxes. The Fund's Loan in the amount of 6.0 Million Kuwaiti Dinars will cover about 28% of the total cost of the Project. In addition to the Fund's participation in the financing of the Project, the Islamic Development Bank shall participate in the financing in an amount equivalent to about Euro 27.970 Million, and the OPEC Fund for International Development shall participate in the financing with a loan in an amount equivalent to about US$ 15.0 Million, while the Government of the Republic of Niger shall cover the remainder of the Project costs and any future increase in the cost of the Project from its own resources.
The Loan shall be for a period of 25 Years, including a grace period of 5 Years, and shall be repaid in 40 semi-annual installments, the first of which will be due on the first date on which interest or other charges will fall due, pursuant to the Loan Agreement, after the expiration of the said grace period. 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 12th Loan extended by the Kuwait Fund to the Republic of Niger, as the Kuwait Fund has previously extended 11 Loans to the Republic of Niger, to finance projects in various sectors, with a total amount of approximately 28.234 Million Kuwaiti Dinars (equivalent to about US$96 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 1.456 Million Kuwaiti Dinars (equivalent to about US$4.95 Million).