The government of Ghana has signed a US $23m loan agreement with the Kuwait Fund for Arab Economic Development to finance the rehabilitation of Dome-Kitase road project.
The Loan Agreement was signed on behalf of the Government of Ghana by the Minister of Finance, Ken Ofori-Atta, while the Deputy Director-General of the Fund, Nedhal Alolayan, signed on behalf of the Kuwait Fund for Arab Economic Development.
The 19.1km road connects the Accra-Kumasi road (N6)| to Accra-Aburi-Koforidua road (N4) and provides an alternate route to road users thereby reducing traffic jam on the two national roads.
The project is in line with the Government’s agenda for the supply of road infrastructure and development of vital road sections across the country to accelerate the socio-economic development.
Upon completion, it will improve connectivity and accessibility to places of work and social services for the inhabitants of the various towns and settlements located along the road path and will reduce the travel time and the vehicle operation cost.
“The road will particularly boost economic activities, movement of primarily agriculture turn out and high productivity and folks to markets, and facilitate trade. It will cut back period of time and congestion on the Accra-Aburi Road; vehicle operation prices and increase in accessibility, convenience furthermore as safety of commuters,” Mr Ofori-Atta.
The loan will be for a period of 28 years, including a grace period of 4 years, and paid in 40 semi-annual installments. The loan bears an interest rate of 1% per annum, in addition to a rate of 0.5% per annum to meet administrative costs and other expenses incurred in the implementation of the agreement.