KUWAIT, 21st December, 2016 (WAM) — A loan agreement was signed on Wednesday in Abidjan between the Republic of Cote d’Ivoire and Kuwait Fund for Arab Economic Development, whereby Kuwait Fund will lend 7 million Kuwaiti Dinar (KD) or about US$23.8 million to the Republic of Cote d’Ivoire to assist in financing the ADZOPE 90/33 kV Substation Construction Project.

Another agreement related to all necessary arrangements for the implementation of the project was also signed between Kuwait Fund and Societe des Energies de Cote d’Ivoire ‘CI-Energies’ (the company).

The electrification project will ensure quality and reliability, suitable for economic and social development in the region. It will also help fight unemployment and provide job opportunities to young people, thus achieving sustainable development.

The project includes civil works, procurement and installation of electromechanical equipment to construct the Adzope substation, building Agboville and Attakro extensions and the linking of 90 kV overhead transmission lines with extension and modification of MV network in Adzope department, consulting services, environmental and social studies, environmental impact mitigation measures, institutional support and land acquisition.

The cost of the project will be about 24.8 billion West African Francs or KD12.46 million, which means the loan will cover about 56 percent of the total project cost. The loan amount will partially cover the cost of substation, transmission lines and the MV network, and will fully cover consultation and supervision work. The Government of Cote d’Ivoire will bear the remaining cost and also any additional cost that may occur.

The loan is for a term of 25 years, including a grace period of five years, and will be amortised by 40 semi-annual instalments. The interest will be 1 percent per annum in addition to a charge of 0.5 percent for meeting administrative costs and expenses of implementation of the loan agreement.

It is the fifth loan provided by Kuwait Fund for project financing. The fund has already provided four loans to the Republic of Cote d’Ivoire for developments in different sectors, with a total amount of about KD19.23 million or US$ 65.7 million. It has also extended KD250,000 (US$850,000) for technical assistances and grants.