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The Kuwait Fund for Arab Economic Development (KFAED or Kuwait Fund) has signed a $33 million (10 million Kuwaiti dinars) loan agreement with the Government of Tunisia to fund a $174 million (KWD53.6 million) phosphate railway project in the North African country.
Seventy percent of the total project cost, equivalent to $122 million, will be in foreign currency, KFAED said in a press statement.
Saudi Fund for Development (SFD) will provide $55 million as an additional loan with the Tunisian government covering the remaining funding and any cost overruns, the statement said.
The project includes the renewal and development of railway lines spanning approximately 190 kilometres in the phosphate triangle region in the south of the country.
The upgrades will enhance the lines' capacity to accommodate new electric and fuel-powered locomotives capable of transporting larger quantities of phosphate and derivatives. The improvements will also double train speeds to 80–100 km/h, contributing to reduced carbon emissions.
The project also involves constructing and equipping a concrete sleeper plant, along with consultancy services for implementation oversight,
The implementation period is expected to be three years, with project completion anticipated in the first half of 2028, the Kuwait Fund statement noted.
The statement said the loan has an interest rate 2 percent per annum in addition to a 0.5 percent annual fee for administrative and execution costs. The repayment period is 27 years with a grace period of 4 years. It will be repaid in 46 semi-annual instalments, with the first due after the grace period.
(Writing by P Deol; Editing by Anoop Menon)
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