Kuwait loans Lebanon 40 million for road construction

The Kuwaiti fund for Arab Economic development (KFAED) and Lebanon signed on monday a 12 million Kuwaiti dinars (around 40 million dollars) loan to finance the rehabilitation and expansion of Beirut's Southern entrance road network.

The project, to be completed by mid 1999, will solve a major problem of traffic and access to the city of Beirut from its Southern suburbs.

The Arab Fund for Economic and Social Development contributed 40 percent in the 100 million dollars project, while KFAED brought another 40 percent and the Lebanese government will pay for the remaining 20 percent.

The 20-year loan has a four year-grace period and would be settled by a total of 32 installments with an interest rate of 2.5 percent plus 0.5 percent service rate. The last installment is due in 2018.

KFAED already extended nine loans to Lebanon valued at around 242 million dollars, in addition to three technical grants valued at around 7.6 million dollars.

The state of Kuwait also granted Lebanon around 81.5 million dollars.

The agreement was signed by the visiting General Director of KFAED, Bader Al-Humaizi, and the Chairman of Lebanon's development and reconstruction council Nabil Al-Jisr.

Al-Humaizi, who arrived in Lebanon on Sunday, is scheduled to sign this Tuesday an agreement for the supply of ambulances and hospital equipment.