In a ceremony held on Thursday 08th January 2004, a loan agreement was signed between the Republic of Botswana and the Arab Bank for Economic Development in Africa (BADEA). By virtue of this agreement BADEA extends to the Republic of Botswana a loan of US $ 10 million to help finance the construction of Middlepits-Bokspits Road Project.

The signing ceremony was attended by H.E. Mr. Baledzi Gaolathe, Minister of Finance and Development Planning, H.E. Mr. Ahmed Abdallah El-Akeil, Chairman of BADEA's Board of Directors, and H.E. Mr. Medhat S. Lotfy, the Director General of BADEA.

The Loan will be repaid in 22 years including a grace period of 5 years and at an annual interest rate of 3%.

The project aims at connecting the project area with the national road networks and to facilitate the transportation of passengers and goods from the southwest area of the Kalahari, connecting this isolated area with other parts of the country and with South Africa and Namibia to improve the area socially and economically, in addition to reduce the poverty and to support the gender issues. The project will also increase the safety on the existing earth road, by improving its alignment and constructing it in accordance with engineering practice and making it usable around the year.

Including this new loan, total commitments of BADEA to the Republic of Botswana will amount to US $ 109.082 million.