Kuwait Fund offers key funding for Nicaragua highway project
KUWAIT CITY, 8 hours, 22 minutes ago
Kuwait Fund for Arab Economic Development has announced that it has entered into an agreement with Republic of Nicaragua to provide KD4 million ($13.1 million) for the construction of Prinzapolka Bridge on the Rio Blanco – Siuna National Highway.
The total cost of the project is estimated at KD5.26 million ($16.8 million). The loan from The Kuwait Fund, amounting to KD4 million, will cover 76% of the total cost of the Project.
The loan agreement was signed on behalf of the Republic of Nicaragua by Dr Bruno Gallardo Palaviccine (Minister of Finance and Public Credit) and Waleed Al Bahar, the Acting Director-General of the Fund.
The loan will be made for a 20-years, including a grace period of 4 years, and bears an interest rate of 2% per annum in addition to a service charge of 0.5% per annum for meeting administrative costs and the expenses of implementing the Loan Agreement.
Kuwait Fund said this is its third loan to the Republic of Nicaragua, following two previous loans, totalling KD10.13 million ($32.42 million) for the financing of the construction and equipping of the Chinandega Departmental Hospital in the health sector. This loan was the first in the transportation sector, it added.
