In a ceremony held on Sunday 04 April 2004, at the Headquarters of BADEA in Khartoum, a loan agreement was signed between the Republic of The Gambia and the Arab Bank for Economic Development in Africa (BADEA). By virtue of this agreement BADEA extends to The Gambia a loan of US$ 10 million; to help finance Mandinaba – Soma Road Project.

The singing ceremony was attended by H.E. Mr. Mousa Gibril BALA-GAYE, Secretary of State for Finance and Economic Affairs and by H.E. Mr. Medhat S. Lotfy, BADEA’s Director General.

The loan will be repaid in 27 years including a grace period of 5 years and at an annual interest rate of 2%. The project is within the framework of the Government’s programme for the development of transport sector, upgrading and integrating the standard of the National Roads Network connecting them by administrative and economic centers. The project aims at rehabilitation of the Mandinaba – Soma road; improvement of traffic safety and efficiency on the existing road, reduction of travel time, reduction of operation and maintenance cost of vehicles leading to reduction of transport cost, in addition to relieving traffic congestion. Including this new loan, the total commitments of BADEA to the benefit of The Gambia, till end of March 2004, will amount to US$ 67.041 million, earmarked to finance 10 projects and 6 technical assistance operations, in addition to two loans from SAAFA and one loan for urgent aid.