In a ceremony held on Thursday 7th of April 2005, a loan agreement was signed between the Republic of Cape Verde and the Arab Bank for Economic Development in Africa (BADEA). By virtue of this agreement BADEA extends to the Republic of Cape Verde a loan of US $ 1.75 million, to help finance Water Bottling Project in Santiago Island.

The signing ceremony was attended by H.E. Victor A.G. Fidalgo, Advisor to the Minister of Finance and Planning, 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 28 years, including a grace period of 7 years, and at an annual interest rate of 2.5%.

The project is within the national development programme framework, which aims at achieving economic development in Cape Verde by supporting the local industries and encouraging investment. The project will provide the bottled water according to international standards and help cover increasing local demand, and reducing imports in foreign currencies. In addition, the project will foster economic activities and improve health standard of population.

Including this new loan, total commitments of BADEA to the Republic of Cape Verde will amount to US $ 70.30 million.