In a ceremony held at BADEA’s Headquarters in Khartoum, the Arab Bank for Economic Development in Africa (BADEA) signed today Thursday 24 January 2008, six (6) loan agreements with the Republics of: Botswana, Cap Verde, Sierra Leone, Seychelles, Mauritius and Namibia. The loans extended by virtue of those agreements are based on easy terms and aim at contributing to financing development projects in the afore-mentioned African countries. The total amount of these loans is US $ 45.3 million and is allocated as follows:

   - US$ 10 million to the Republic of Botswana, to participate in financing Upgrading of "Sir Seretse Khama" International Airport project. The loan will be repaid in 20 years, including a grace period of 5 years, and at an annual interest rate of 3%. The project will play an important role in the development of the country's economy especially its contribution in the development of the industrial, mining and tourism sectors and it will enable the country to benefit from the great tourism traffic in the southern African region which exceeded its international rate. The upgrading of the airport will also support the mining sector. The project will also support government efforts for the development of the air transport sector.         

    - US$ 8 million to the Republic of Cap Verde to participate in financing Ring Road project in FOGO Island Project. The loan will be repaid in 30 years, including a grace period of 10 years, and at an annual interest rate of 1%. The project aims at connecting the villages in Fogo island with the harbor and airport in Sao Felipe town, and facilitate the movement of passengers and goods between different parts of the island and securing a path for the inhabitants to reach the important urban centers (Sao Felipe, Mosteiros and Cova Figueira) where social and commercial activities are there which helps in breaking the isolation in the arrears where the road passes and also help in poverty alleviation.   

US$ 10 million to the Republic of Sierra Leone to participate in financing Kenema – Koindu Road Project (Section: Kenema – Pendembou). The loan will be repaid in 30 years, including a grace period of 10 years, and at an annual interest rate of 1%. The project aims at supporting the regional trade between Sierra Leone and Republic of Guinea and Liberia. The project will remove the traffic congestion due to bad conditions of the roads in the south eastern part of the country, connect and integrate the area with the agriculture and mining producing regions with the markets. The project will also reduce passengers and goods transport cost, operational and maintenance cost, facilitate traffic flow and improve safety all over the year and facilitate the travel of the people to the health and education services in addition to its contribution in poverty alleviation in the zone where the road is passing.

 US$ 1.5 million to the Republic of Seychelles, to finance Second Line of Credit for Development Bank of Seychelles - (DBS). The loan will be repaid in 12 years, including a grace period of 3 years, and at an annual interest rate of 4%. The project aims at the protection of the environment and human safety and protection of the main income resources represented by tourism and agriculture. The project will ensure the continuation of the development of the economy, through the construction of the infrastructures to deal with hazardous wastes in the country mainly caused by the dissolved chemical and looped oil and wastes from printing industry and pesticides and sewerage wastes.

-  US$ 3.10 million to the Republic of Mauritius, to finance Waste Management project. The loan will be repaid in 20 years, including a grace period of 5 years, and at an annual interest rate of 3%. The project aims at the protection of the environment and human safety and protection of the main income resources represented by tourism and agriculture. The project will ensure the continuation of the development of the economy, through the construction of the infrastructures to deal with hazardous wastes in the country mainly caused by the dissolved chemical and looped oil and wastes from printing industry and pesticides and sewerage wastes.  

    - US$ 12.70 million to the Republic of Namibia, to finance Tandjiescoppe Irrigation Project. The loan will be repaid in 25 years, including a grace period of 7 years, and at an annual interest rate of 2.5%. The project is part of the framework of “the Strategy of the Green Project”. It contributes in developing natural resources, fighting poverty in the isolated areas of the country, diversifying of agricultural products, achieving sustainable agricultural products in the irrigated lands and improving families’ income and stability in the isolated areas.  

 On behalf of BADEA, the agreements were signed, by H.E. Ahmed Abdallah Al-Akeil, Chairman of the Board of Directors and in the presence of H.E. Abdelaziz KHELEF, Director General. The beneficiary countries were represented by the officials designated by their respective countries as follows:

 H.E. Mr. Charles T. MOGOTSI,  High Commissioner of the Republic of Botswana to Kenya,

Hon Mme. Cristina DUARTE, Minister of Finance and Public Administration for the Republic of Cape Verde,

H.E Mr. Momodu I. Kargbo, Deputy Minster of Finance and Economic Development, sign for the Republic of Sierra Leone,

Mr. Hans Aglae, Special Advisor in the Ministry of Finance, sign for the Republic of Seychelles,

H.E Mr. Rashid SOOBADAR, Extraordinary Ambassador and Plenipotentiary of the Republic of Mauritius in Egypt,

Hon. Mme Saara Kuugongelwa-Amadhila, Minister of Finance for the Republic of Namibia.

 It is worth noting that BADEA’s total commitments to these six beneficiary countries amounted to about US$ 332.92 million, by the end of December 2007.

 The total BADEA’s commitments for the 43 African beneficiary countries during the period March 1975 to December 2007, stands at US$ 3354.127 million, to finance projects and technical assistance operations and the funds allocated through Heavily Indebted Poor Countries Initiative (HIPC).