The Arab Bank for Economic Development in Africa (BADEA) Monday in Cairo, Egypt, signed four loan agreements with Burkina Faso, Burundi, Kenya and Mali, totalling US$ 30.9 million to finance development projects in the four countries.
The loans are in line with the set goals of BADEA to boost the social and economic development in African countries – south of the Sahara.
Burkina Faso – US$ 10 million will be for the financing of the “Samindini” Dam Project which is aimed at increasing agriculture production. The dam will be constructed on the “Mohan” river to store water for irrigation and reclamation of 1500 hectare of land for cultivation, which will increase to 23000 hectare in the long run.
Burundi – US$ 10 million to finance the “Bobonza-Andora” Road project to link the provinces of “Bobenza” and “Sibitoki” with “Entenba” and “Andoro” in the West, facilitate tra nsportation of passengers and goods, reduce cost of transportation and contribute to the economic and social development in the region.
Kenya – US$ 8 million to finance the “Bura” Irrigation and Resettlement Project. The objective is to create job opportunities and improve the living standard of the people in the project area by supporting resettlement of 2,590 household farmers. The resettlement project will include rehabilitation works for irrigation, drainage and infrastructure; and provision of water for irrigation of 5,460 hectares of land on the west bank of “Tana” river.
Mali – US$ 2.9 million is an additional loan to Mali to participate in the financing of Fisheries Resources Project in Sélingué Lake, to which BADEA had earlier given out US$ 5.2 million. The project aims at increasing fish production in Lake Sélingué and contributing towards food security. It also aims at improving the living standards of the people in the project area by increasing their incomes and creating employment opportunities which will help prevent migration to cities.
BADEA had granted the loans with very liberal lending terms under its fifth Five-year development Plan (2005-2009). The loans are repayable during a period of 30 years, including a grace period of 10 years, with an annual interest rate of 1 per cent. Panapress .