Ghana and the Kuwait Fund for Arab Economic Development have signed a seven million Kuwaiti Dinars (an equivalent of about $23.8 million) loan agreement to finance the rehabilitation of Dome-Kitase Road Project.
Mr Ken Ofori-Atta, the Minister of Finance initialled for Ghana, while Mr Nedhal Alolayan, Deputy Director-General of the Kuwait Fund for Arab Economic Development signed for the Fund.
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 of Ghana.
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.
The project has a grant element of 36.53 per cent, and its implementation period is estimated to be three years and is expected to be completed by the end of 2022.
The project road connects the Accra-Kumasi road (N6)| to Accra-Aburi-Koforidua road (N4) and provides an alternative route to road users thereby reducing traffic congestion on the two national roads.