GHANA – The Ghanaian government has secured US$ 23.03 million (7 seven million Kuwaiti Dinars) loan from the Kuwait Fund for Arab Economic Development to finance the rehabilitation of Dome-Kitase Road Project.
The Ghanaian government was represented by Mr Ken Ofori-Atta, the Minister of Finance, while Mr Nedhal Alolayan, Deputy Director-General of the Kuwait Fund for Arab Economic Development represented the fund during the signing of the loan agreement.
The Kuwait Fund loan will cover about 64 per cent of the total costs of the Project, while the remaining costs of the Project will be covered by the Government of Ghana.
The loan which has a four-year grace period and is expected to mature after a period of 28 years will be paid at an interest rate of 1.5 per cent (including 0.5 per cent administration charges), and two payments (equal principal payments) per annum.
The Project which also has a grant element of 36.53 per cent is to be implemented within a three-year period and has is expected to be complete by the end of 2022.
Dome-Kitase Road project road connects the Accra-Kumasi road (N6) to Accra-Aburi-Koforidua road (N4) and provides an alternative route to road users thereby reducing traffic congestion on the two national roads.
Mr Ofori-Atta while expressing Ghana’s gratitude to the State of Kuwait for support to Ghana’s development agenda, noted that concessional financing was in line with the Government’s agenda for improvement of the country’s road infrastructure.
He said the rehabilitation of the Dome-Kitase road would improve transport between Greater Accra and Eastern Region and as a result boost the region’s economic status.
The State of Kuwait is one of Ghana’s major development partners and has so far extended 11 concessionary loans amounting to US$183.7 million (1 billion Ghanaian Cedes) to the West African nations.
Some of the sectors that have received financing from the Kuwaiti Government include hydroelectric power, ecological, health, education and transport.
The Kuwait government has also offered Ghana three technical assistance that have a total net worth of US$ 2.11 million (11.5 million Ghana Cedis).