Lusaka: The Zambian Government has signed a 12 million United States dollars loan agreement equivalent to K62.4 billion with the Saudi Fund for Development of the Kingdom of Saudi Arabia for the Kalabo-Sikongo-Angola border road project. The Kalabo-Sikongo-Angola road project will be implemented at a total cost of 54 million United States dollars.
Of the 54 million United States dollars, the Arab bank for economic development in Africa (BODEA), the Kuwait Fund for Arab economic development, and the OPEC fund for development will under a signed loan agreement provide 10 million, 14 million and 10 million united states dollars respectively while the Zambian government will provide counterpart funding amounting to 8 million united states dollars.
The agreement was signed in Lusaka this morning between finance and national planning Minister Alexander Chikwanda and vice chairman and managing director of the Saudi Fund for development, Engineer Yousef Ibrahim Al Abdulrahman Al Bassam, and was witnessed by western province minister John Kufuna, Saudi ambassador to Zambia Hassan Attar and officials from the Zambian road agencies.
Speaking during the ceremony, Mr. Chikwanda said the Kalabo-Sikongo-Angola road project is one of the identified SADC and COMESA core-road networks which will contribute towards poverty reduction in the country through trade opportunities which will trigger economic investment.
And engineer Al Bassam said Saudi Arabia is aware of the challenges and needs of development, therefore, the Saudi fund for development is willing to support projects and seeing more applications from the government of Zambia.