28.03.2007

In the National Bank of Tajikistan, it was signed a Loan Agreementbetween the Republic of Tajikistan and Kuwait Fund for Arab Economic Development

On March 28, 2007, a Loan Agreement was signed today in the National Bank of Tajikistan between the Republic of Tajikistan and the Kuwait Fund for Arab Economic Development. The Loan Agreement was signed by H.E. Najmiddinov, Minister of Finance on behalf of the Republic of Tajikistan, whereas, Mr. Hamad S.Al-Omar, Deputy Director –General of Kuwait Fund for Arab Economic Development signed the Loan Agreement on behalf of the Fund.

After finishing of ceremony of signing, Minister of Finance the Republic of Tajikistan expressed his gratitude to Kuwait Fund for Arab Economic Development for assistance and supports, maintained to the Republic of Tajikistan for economic development. He noted, that KFAED successfully implements investment activities in our country and for today, it is realized several joint investment projects, directed for transport and energy sectors development. Total value of realized jointly with Kuwait Fund for Arab Economic Development Projects is amounted USD 38,4 million.

Loan Agreement for Dangara Valley Irrigation Project is estimated Kuwait Dinars 4 Million, that is equivalent to about US$ 13,8 million. Loan is made for 24 years, with interest rate 1,5% annually and 4 years grace period of the loan shall fall due after the repayment of principal.

The Project aims at increasing the agricultural production, provide employment opportunities in the Project area, covering about 1750 HA, located in the southern part of the country.The Project consists of the rehabilitation works for the main Dangara canal (about 2,5 km), canal №2 (about 7 km), canal №3 (about 7,3 km) in accordance with the necessary structure of irrigation and drainage networks.

The execution of the Project is expected to commence at the beginning of 2007 and is expected to be completed 2010, during 4 years.

Both sides express hope of further cooperation in realization of joint Projects.