Sep 7, 2011, 1:46 PM
The loan agreement, signed on 9th July 2012, forms part of a co-financing arrangement to participate in the financing of the project.
Earlier in April this year, at a side meeting during the Islamic Development Bank Group (37) Annual Meeting held in Khartoum, Sudan, the Gambia government and the Arab Bank for Economic Development (BADEA) signed a loan agreement worth US$ 9 million to participate in the financing of the same project.
“The 11MW project will, no doubt, add to the much-needed generation capacity of the Greater Banjul Area currently at 70MW, thereby not only relieving power outages and the inadequate supply, but also providing access to un-electrified communities, thus combating poverty,” Abdou Kolley, minister of Finance and Economic Affairs, told deputies while moving the motion.
The loan, which is to be repaid over a period of 20 years, including a grace period of 5 years, has an annual interest rate of 1.25 percent and a service fee of 1 percent.
According to Finance minister Kolley, the current loan agreement will thus close the funding gap and pave the way for effective implementation of the project.
“The facility is a highly concessional one and within our borrowing limits,” Kolley further stated.