BADEA extends four loans
The Arab Bank for Economic Development in Africa (BADEA), has signed four loan agreements worth US $ 25.2 million for the benefit of four countries – Sao Tomé & Principe, Mali, Tanzania and Kenya. The agreements were signed on sideline of The Annual Meetings of the the World Bank Group and the International Monetary Fund (IMF) that took place in Washington, during the period 20-24 September 2011. Republic of Sao Tomé & Principe:- Under the agreement, Sao Tome & Principe received a loan of US $ 3,20 million to finance Water Supply for the City of “Ribeira Afonso”. The Project aims at the provision of potable water to the residence of the city of “Ribeira Afonso” and some of the surrounding villages to meet the current and future demands up to the year 2035, improve the health standards and reduce the suffer to fetching for water especially on women and children. The project will also encourage economic activities which will help in increasing the income and their stability. Republic of Mali: Mali received a loan of US $ 4 million to finance a Line of Credit to Mali Solidarity Bank. The project aims to alleviate poverty by strengthening the financial activity of Mali Solidarity Bank so as to provide the capital resources of the segments targeted its operations (contractors, the young and the young unemployed and the owners of small craft and craftsmen and women and owners of small agricultural areas ... and others) to help them to implement micro projects, and the achievement of job opportunities, which lead to the reduction of poverty and achieve sustainable development in the country. United Republic of Tanzania: Moreover, BADEA signed a loan totaling US $ 8 million dollars to help finance “Orkesumet” Township Water Supply in the United Republic of Tanzania. The Project aims at participating in the improvement of health, social and economic conditions through the supply of potable water to “Orkesumet” township and the surrounding villages to meet the current water demand and the future water demand (2034) to participate in lessening the burden of fetching water and to reduce the outbreak of polluted water borne diseases and hence leading to the improvement of the level of health, settlement of population, in addition to the promotion of the economic activities thus leading to the improvement of incomes and reduction of poverty. Republic of Kenya: During the same occasion, BADEA and Kenya signed also a loan totaling US $ 10 million dollars to help finance Rural Electrification in Five Areas. The Project aims at improving the standard of living and reducing poverty and rate of immigration from rural to urban areas through the provision of power supply to houses, schools, health and government centres and commercial, industrial and agricultural activities, which will help in boosting the economic and social development. The project will improve small industries working in the field of agriculture industries specially tea and coffee, in addition to achieving positive environmental impact represented in reducing the use of wood as source of energy. The four loans were granted on highly concessional terms; in accordance with BADEA's Six Five-Year-Plan (2010-2014), and are to be reimbursed over a period of 30 years and include a grace period of 10 years, with an annual interest rate of 1%, except the Line of Credit to the Republic of Mali, which will be reimbursed over 22 year and include a grace period of 7 years, with an annual interest rate of 1% .