Lagos, Nigeria (PANA) - The Arab Bank for Economic Development in Africa (BADEA) has signed separate loan agreements with four African nations - Lesotho, Tanzania, Cape Verde and Senegal.
The Sudan-based bank said in a statement made available to PANA here Wednesday that the agreements were signed on the sidelines of the just-concluded 47th Annual Meeting of the African Development Bank Group (AfDB), held in Arusha, Tanzania.
Under the BADEA-Lesotho pact, the bank will extend to the Kingdom an additional loan of US$5 million to help finance the Metolong Dam for Potable Water Project. BADEA had earlier given an original loan amounting to US$10 million in the year 2007 for the project.
The project aims at provision of water for domestic and industrial uses in the capital city, Maseru, and in the towns of Roma, Mazenod and Teyatetaneng, as well as neighboring villages, through the supply of an additional 71,000 m3 of water.
It also aims at reducing poverty and creating employment by the construction of a dam on the Fothiatsana River for the impoundment and regulation of the water of the river and its partial utilization.
BADEA Director General Abdelaziz Khelef signed for the bank while Mr. Mosito N. Khethisa, Principal Secretary, Ministry of Finance and Development Planning, signed for Lesotho.
BADEA's commitments to projects in Lesotho stand at US$84.142 million as at the end of March 2012.
Under the BADEA-Tanzania pact, the the bank will give the East African nation US$10 million to help finance the Wete-Chake Chake Road Project in Pemba Island in Zanzibar.
According to the BADEA statement, the project is part of the government strategy to develop Pemba roads network and improve their safety. It aims at improving the conditions of transport of passengers and goods by reducing the costs and facilitating the access to social facilities centres, as well as the transfer of agricultural products to the markets.
The Project is also expected to boost tourism and reduce the poverty.
Mr. Khelef signed the agreement on behalf of BADEA, while Dr. William Mgimwa, Minister for Finance, signed for Tanzania.
BADEA's total commitments to Tanzania stand at US$174.75 million up to the end of March 2012.
Under the BADEA-Cape Verde agreement, BADEA will give the country a loan of US$5 million to help finance the Sanitation Project in Esperagos in Sal Island.
The project aims to contribute of the improvement of socio-economic conditions & public health, preservation of the environment and combat poverty in the town of Esperagos, the capital of Sal island, by constructing a sewage system. The project also aims to contribute to the achievement of the Millennium Development Goals.
Mr. Khelef signed for BADEA while Mr. Carlos Furtado, Director of Resource Mobilization Department, Ministry of Finance and planning, signed for Cape Verde.
BADEA's total commitments to projects in Cape Verde stand at US$108.500 million as at the end of March 2012.
The BADEA-Senegal pact paves the way for the bank to give the West African nation an additional loan of US$4 million to help complete the construction of Dalal Jamm Hospital.
BADEA had given an original loan of US$7 million to the project in 2006.
The construction of the Dalal Jamm Hospital in Dakar is part of the Government programme to promote health conditions in the country by improving, for example, quality and efficiency for health services in Senegal.
The project aims also to improve the quality of medical care provided to the Senegalese population in general and people in the project area in particular.
Mr. Khelef signed for BADEA, while Mr. Amadou Kane, Minister of Economy and Finance, signed on behalf of Senegal. BADEA's total commitment to projects in Senegal amount to US$246.85 million as at the end of March 2012
All the loans are repayable in 30 years, including a grace period of 10 years and at an annual interest rate of 1%.
BADEA, which began operations in March 1975, is a financial institution owned by 18 Arab countries that are members of the League of Arab States (LAS) which signed its Establishing Agreement 18 February 1974.
The bank was created to strengthening economic, financial and technical cooperation between the Arab and African regions and for the embodiment of Arab-African solidarity on foundations of equality and friendship through participation in financing economic development in African countries.
-0- PANA SEG 6June2012