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The Kingdom of Lesotho and BADEA sign A us $ 10 million loan Agreement |
In a ceremony held on Thursday July 1st 2004, a loan
agreement was signed between the Kingdom of Lesotho and
the Arab Bank for Economic Development in Africa
(BADEA). By virtue of this agreement, BADEA extends to
the Kingdom of Lesotho a loan of US $ 10 million to help
finance Likalaneng-Thaba Tseka Road Project.
The signing ceremony was attended by H.E. Madame.
Lieketseng Pilane, Ambassador of Lesotho in Cairo, H.E.
Mr. Ahmed Abdallah Al-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 26 years including a grace
period of 6 years and at an annual interest rate of 2%.
The project aims at improvement of traffic safety on the
existing road and the integration of national road
networks in the country, and will connect it with
national roads network in South Africa. The project also
aims at reduction of travel time, reduction of operation
and maintenance of vehicles costs leading to reduction
of transport cost, in addition to reduction of poverty
in rural areas.
Including this new loan, total commitments of BADEA to
the Kingdom of Lesotho will amount to US $ 58.817
million.
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