Kuwait Fund joins Modoghashe-Wajir Road project lenders
Kuwait Fund for Arab Economic Development and the Republic of Kenya have signed a KD7 million ($23.8 million) 25-year loan for the Modoghashe-Wajir Road project in Kenya.
The project comprises construction of 156km of road and has a total cost of KD39.041 million of which KD28.574 million is in foreign currency. The Kuwait Fund loan complements financing from other DFIs including the Saudi Fund for Development (KD7.353 million), the Arab Bank for Economic Development in Africa (KD 5.882 million), OFID (KD5.882 million) and Abu Dhabi Fund (KD4.412 million). The balance and any cost over-runs will be covered by the government of Kenya.
The 25 year loan includes a five-year grace period, and will be amortized in 40 semi-annual installments. The debt is priced at 1.5% per year, in addition to 0.5% per year to cover administrative costs and other expenses incurred in the implementation of the loan agreement.
