Kuwait Fund for Arab Economic Development has signed a loan agreement with Ghana for financing of the rehabilitation of Dome-Kitase road project. This is the 11th loan extended by the Kuwait Fund to the country. Ghana’s Minister of Finance, Ken Ofori-Atta, and the Deputy Director-General of the Fund, Nedhal Alolayan, signed the loan agreement of $23.8 million. The project is meant to support the economic and social development in the country by providing reliable land transportation in the southern part of the country. The initiative is expected to improve connectivity and accessibility to different parts cutting down the travel time and the vehicle operation cost.
The cost of the rehabilitation of the road including taxes, interest during construction, land acquisition and price contingencies during the implementation period, is estimated at GH¢179 million. The project is also expected to boost investment in agricultural activities and light industries, create jobs and promote new business opportunities in this part of the country. The loan has a repayment period of 28 years, including a grace period of 4 years. The interest rate of the loan is 1% 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 agreement.
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