The Minister of Finance,Ken Ofori Atta has signed a $23.8 million loan agreement with the Kuwait Fund for Arab Economic Development for the rehabilitation of the Dome-Kitase road.
The project, when completed will connect the Accra-Kumasi road to the Accra-Aburi-Koforidua highway and provide an alternative route to road users thereby reducing traffic congestion on the two national roads.
The financing terms for the loan facility are an interest rate of 1.5 per cent (including 0.5 per cent administration charges), maturity period of 28 years (including four years’ grace period) and two payments (equal principal payments) per annum.
Speaking at the event, Mr. Ken Ofori-Atta said the agreement was a milestone in strengthening bilateral relations between the two countries.
He added that “the road when completed would provide a vital linkage between Greater Accra and Eastern Region. It will also reduce travel time and congestion on the Accra-Aburi Road; vehicle operation costs and increase in accessibility, convenience as well as safety of commuters”.
Deputy Director-General of the Kuwait Fund for Arab Economic Development, Nedhal Alolayan who signed the agreement on behalf of the state of Kuwait, said the Kuwait Fund efforts in the development of Ghana goes far back as 1977, when the fund participated in the financing of the Kpong Hydro-Electric Project with a loan equivalent to about GH¢ 167,000,000.
He said “We cherish our cooperation with Ghana and assure you of our continued support to serve our common objective of development and to strengthen the friendly relations between our two countries”.
He added that both Cabinet and Parliament have given their approval for the project and therefore, there should be no fear of fund management activities.
Mr Ofori-Atta on behalf of the Government expressed gratitude to the State of Kuwait and the Kuwait Fund for Arab Development for their unflinching commitment and support to Ghana’s development agenda, especially for the provision of the support for the rehabilitation of the Dome-Kitase Road Project which is estimated to be three years and is expected to be completed by the end of 2022.
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.