Infrastructure and Housing Development Minister Charles Milupi has held discussions with the president of the Arab Bank for Economic Development in Africa (BADEA), Dr. Sidi Ould Tah, regarding contractor engagement issues for the Kalabo-Sikongo-Angola Road.
Milupi explained that the high-level meeting in Riyadh, Saudi Arabia today focused on the timely engagement of a contractor to undertake the US$50 million project being financed by BADEA through a concessional loan signed on 6 October 2024.
The Kalabo-Sikongo-Angola Boarder Road is part of the Lobito Corridor and is a critical infrastructure development to enhance regional connectivity and promote economic growth.
“Our discussion with BADEA was centered around the specific conditions relating to project implementation, particularly the eligibility criteria for contractors,” Milupi stated.
He said this information was important to ensure compliance and facilitate the timely engagement of a contractor.
The US$50 million concessional loan will be disbursed in two tranches of US$20 million and US$30 million respectively.
A concessional loan is given on more favorable terms than what a borrower could get from the market. In this instance, the first US$20 million will mature after 17 years and has a grace period of 6 years at an interest rate of 1.5%. The US$30 million will be payable in 15 years with an interest rate of 2.5%.
