The government of Ghana and the Kuwait Fund for Arab Economic Development (KFAED) last Friday signed a loan agreement of $24 million for the Dome-Kitase road project in Accra.
The loan, which bares an annual interest rate of 1.0 per cent is expected to be paid within a period of 28 years, including a grace period of four years.
The Minister of Finance, Mr Ken Ofori-Atta, signed on behalf of the government of Ghana, while Deputy Director General of the fund, Mr Nedhal Alolayan signed on behalf of KFAED.
In his address, Mr Ofori-Atta said the rehabilitation of the Dome-Kitase road would provide a vital linkage and enhance integration between the Greater Accra and Eastern regions.
He mentioned that the project would specifically boost economic activities, movement of mainly agriculture produce, facilitate trade and reduce travel time and congestion on the Accra-Aburi road.
The State of Kuwait through the KFAED, he said, had over the years supported Ghana with concessional facilities in various projects and technical assistance including the Korle Lagoon Ecological Restoration Project, the Aboadze-Volta Transmission Line Project, Accra Plains Irrigation Project Feasibility Study and the Maternity, expansion and development of 26 existing Senior High School projects and Children's Hospital Feasibility Study which have all been completed.
The minister revealed that government was at the final stages of preparing the Ghana Development Corporation Policy (GDCP), which is aimed at improving the effective and strategic use of development cooperation and support the implementation of the Ghana's National Medium Term Development Plan.
This policy document, Mr Ofori-Atta said, was envisaged to streamline the country's relationship with its development partners, including the State of Kuwait in the areas of enterprise, foster mutual economic benefit and strengthen political cooperation.
"We will continue to welcome any development aid within the new form of partnership which is targeted and aligned with our national growth and economic transformation priorities as well as ensure efficiency and accountability in the use of all public resources," he added.
The minister encouraged implementers of the project to work assiduously and ensure efficiency for the successful execution of the works.
On his part, Mr Alolayan indicated that the Kuwait Fund attached exclusive importance to the project and hoped the project would achieve all of its objectives for the benefit of Ghana.
"We cherish our cooperation with Ghana and assure you of our continuous support to serve our common objective of development and to strengthen the friendly relations between our two countries," he said.