Tk 2.79b loan deal signed with Kuwait Fund

Kuwait will provide TK 2.79 billion (279.51 crore) for ensuring infrastructural development in four areas of capital Dhaka, reports UNB.

The government signed Monday a loan agreement with Kuwait Fund for Arab Economic Development (KFAED).

ERD Senior Secretary Md Mejbahuddin and KFAED Deputy Director General Hamad Al-Umar signed the deal on behalf of their respective sides at the NEC conference room.

The estimated cost of the project, titled 'The improvement of urban road in North Dhaka City Corporation' is TK 3.10 billion through which infrastructural development would be ensured in the city's Mirpur, Mohammadpur, Agargaon and Bhasantek.

Of the total project cost, the Kuwait Fund will provide TK 2.79 billion while the rest of TK 307.5 million will come from the national exchequer.

Under the project, there will be improvement of roads in these selected areas to reduce traffic congestion and road accidents, development of footpaths and drainage system and installation of road lamps.

The loan of the Kuwait fund will be repaid in 25 years with a five-year grace period which bears a 1.5 per cent annual interest rate and 0.5 per cent service charge.

Dhaka North City Corporation under the Local Government Division of the LGRD Ministry will implement the project by June 2017.