 In a ceremony held on Monday 20th September 2004, a loan agreement was signed between the Republic of Zambia and the Arab Bank for Economic Development in Africa (BADEA). By virtue of this agreement, BADEA extends to the Republic of Zambia an additional loan of US $ 4.3 million to help finance Mongu-Kalabo Road Project.
The signing ceremony was attended by H.E. Mr. LT Col. BIZWAYO N. Nkunika (Rtd) Permanent Secretary, Ministry of Works and Supply, 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 25 years including a grace period of 5 years and at an annual interest rate of 2%.
The project is within the framework of the country’s National Development Plan, which aims to connect the isolated project area with rest of the country. The project will support the agricultural activities, to meet the needs of the population and to improve their living standards. The project will reduce the transport cost and operation and maintenance of vehicles.
Including this new loan, total commitments of BADEA to the Republic of Zambia will amount to US $ 66.61 million.
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