Responding to the question posed by the Lower Saloum Member, Hon Sainey K. Jawara, on Wednesday at the National Assembly, the minister explained that the financing was signed to alleviate the rising cost of basic/essential commodities in the country experienced between September and October 2022.
“The idea was to buy bulk quantities of basic/essential commodities from African or Arab countries for supply in the Gambian market to bring down prices,” he said.
Before finalising on the facility with BADEA, he added, “we engaged the MoTIE to reach out to the prominent basic/essential commodities traders in the country on the subject facility.”
He continued: “During a meeting with the said traders, we shared with them all the terms and conditions of the facility, but they didn't express interest in the facility. Later, Jah Oil Co. Ltd expressed interest in the facility and paid all the fees associated with the facility amounting to $770,000.00 as a condition precedent to effectiveness/disbursement.”
Consequently, he said further, “the company was appointed as the Executing Agent for the facility. Jah Oil Co. Ltd also paid 'commitment charges' of US$45,138.89. Currently, 40% of the financing is utilised, as the first tranche of US$20 million has been disbursed since January 2024.
“The second tranche of US$15 million is currently being processed, with disbursement expected soon. This will bring utilisation of the financing to 70% once approved.”
Hon. Samba Jallow, National Assembly member for Niamina Dankunku, asked the minister about the stage of the implementation process.
Responding to the question, the minister said it was at 70%, and they could not prepare a report on the implementation status until the disbursement was at an advanced stage.
He added that before paying disbursement, there is a checklist at BADEA which was to make sure that “what is in the agreement is actually what is requested”.
Hon. Yahya Sanyang, the National Assembly member for Latrikunda Sabiji, asked the minister whether the Gambia government would take the primary obligation as a guarantor should Jah Oil default.
In response, the minister said they had extracted from Jah Oil all the obligations undertaken as a borrower.
Hon.Lamin Ceesay, member for Kiang West, asked whether they had checked the impact of the facility on the life of Gambians.
“Yes indeed we did, as a ministry,” the minister responded. “And just to mention, before Eid, Jah Oil imported rice which was sold at below the market price. Jah Oil also imported cooking oil which was sold at a 20-liter amount of 1,500 - all below market prices. Effectively they have suppressed the market prices for these two commodities. And we believe the second consignment will be rice, and we expect similar impact to be there.”
