Signing A Loan Agreement in Burkina Faso
11-Nov-2013 A Loan Agreement was signed today in Ouagadougou between Burkina Faso and Kuwait Fund for Arab Economic Development, whereby the Fund will extend a Loan of Kuwaiti Dinars five million eight hundred thousand (KD 5,800,000) (i.e. about US$ 20.3 million) to help finance the Ouagadougou-Donsin International Airport Project in Burkina Faso. The Loan Agreement was signed on behalf of the Government of Burkina Faso by H.E. Lucien Marie Noel Bembamba, Minister of Economy and Finance and on behalf of the Fund by Mr. Abdulwahab Al-Bader, Director-General of the Kuwait Fund for Arab Economic Development.
The aim of the project is to enhance the social and economic development of Burkina Faso and to improve its interaction with other countries of the world through the construction of a new international airport in the region of Donsin which is about 35 Kms. to the North of the capital Ouagadougou. It is anticipated that the new airport would satisfy the increasing demand on arriving, departing and transit air traffic, and would handle about 1000 passengers and air movements during the peak hour. The project consists of the following components:
1. Compensating affected inhabitants
2. Access roads, inner roads, and Parking
3. Airside facilities including a runway 3,500 m. long, 45 m. wide
4. Passengers' terminal of 20,000 sq. m. built up area
5. Technical and administrative buildings
6. Utilities and fuel necessities and networks
7. Freight facilities 8. Management, consultancy, running, support and auditing necessities.
It is anticipated that the project would be completed by mid 1918. The total cost of the Project is estimated at about 267.8 billion FCFA (i.e. KD 157 million) of which the foreign currency is equivalent to about KD 108.36 million which represents about 69% of the total cost of the Project.
The Fund's loan will cover 4% of the total cost of the Project. Apart of Kuwait Fund financing IDB will finance about 19%, SFD will finance 5%, OFID 4%, International Bank 16%, BADEA 2%, BOAD 13%, FDA 5%.
In addition to the Government commitment to cover any extra costs in financing the project, it is intending to have international concession agreements for financing and managing parts of the Airport. The Loan will be for a period of 26 years including 6 years grace period, and will be amortized in 40 semi-annual installments, the first of which will be due on 1st date on which any interest or other charge on the loan shall fall due, after the elapse of the above-mentioned grace period.
The Loan bears an interest at 2% per annum, in addition to 0.5% per annum to cover administrative costs and other expenses incurred in the implementation of the Loan Agreement. Upon signature of this loan agreement, this loan will be the 16th one extended by the Fund to Burkina Faso considering that the Fund had already extended to Burkina Faso 15 Loans, the total amount of them is about KD 50.1 million to finance projects in different sectors.