The Government of Ghana and the Kuwait Fund for Arab Economic Development [KFAED] have signed a loan agreement of $24 million as financing of the rehabilitation of Dome-Kitase road project.
The Loan Agreement was signed on behalf of the Government of Ghana by the Minister of Finance, Ken Ofori-Atta, while the Deputy Director-General of the Fund, Nedhal Alolayan, signed on behalf of the Kuwait Fund for Arab Economic Development and witnessed by the Minister of Roads and Highways, Hon. Kwasi Amoako-Atttah.
The project will improve connectivity and accessibility to places of work and social services for the inhabitants of the various towns and settlements located along the road path and will reduce the travel time and the vehicle operation cost.
The rehabilitation of the road is also expected to enhance investment in agricultural activities, development of light industries and is expected to create jobs and promote new business opportunities in this part of the country.
In an address, the Minister of Finance Hon. Ken Ofori-Atta said, the State of Kuwait through the KFAED 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 which have all been completed.
Hon. Ofori-Atta 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 Ghana’s Medium Term Development Plan. The Minister said the policy document 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 benefits and strengthen political cooperation.
Hon. Ofori-Atta expressed the Government’s commitment to continuously welcome any development aid within the new form of partnership which is targeted and aligned with national growth and economic transformation priorities and also ensure efficiency and accountability in the use of all public resources. The Finance Minister encouraged implementers of the road project to work assiduously and ensure efficiency for the successful execution of the project.
On his part, Mr. Nedhal Alolayan indicated that the Kuwait fund attaches exclusive importance to the project and hoped that the project would achieve all of its objectives for the benefit of Ghana. He further said that they cherish their relationship with Ghana and assured of a continuous support to serve the common objective of development and to strengthen the friendly relations between the two countries.
The total cost of the project, including taxes, interest during construction, land acquisition and price contingencies during the implementation period, is estimated at GH¢179 million.
The loan shall be for a period of 28 years, including a grace period of 4 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% 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.
Present at the ceremony were Hon. Minister of Roads and Highways, Hon. Kwasi Amoako-atta, Chief Director of Ministry of Roads and Highways, Ing. Edmund Offei-Annor, as well as Directors and Heads of Agencies of the Ministry of Roads and Highways and the Ministry of Finance.