The Kuwait Fund for Arab Economic Development has committed seven million Kuwaiti Dinars (¢130,543,000) towards the rehabilitation of the Dome-Kitase Road Project, ABC News can report.

This follows the signing of a loan agreement between the managers of the Kuwait Fund and the Government of Ghana, which will see the state of Kuwait release the agreed loan package to fund part of the project.

The Finance Minister, Ken Ofori-Atta initialled for Ghana, while Deputy Director-General of the Kuwait Fund for Arab Economic Development, Nedhal Alolayan, signed for the Fund.

The Kuwait Fund loan will cover about 64 percent of the total costs of the Project, while the remaining costs of the Project will be covered by the Government of Ghana.

The financing terms for the loan facility are an interest rate of 1.5 per cent (including 0.5 per cent administration charges), maturity period of 28 years (including four years grace period) and two payments (equal principal payments) per annum.

The project has a grant element of 36.53 per cent, and its implementation period is estimated to be three years and is expected to be completed by the end of 2022.

The project road connects the Accra-Kumasi road (N6) to Accra-Aburi-Koforidua road (N4) and provides an alternative route to road users thereby reducing traffic congestion on the two national roads.

Mr Ofori-Atta expressed gratitude to the State of Kuwait and the Kuwait Fund for Arab Development for their unflinching commitment and support to Ghana’s development agenda.

“Today is an important day for the people of Ghana, especially those in Dome, Kwabenya, Ayim, Brekusu, Agyamenti and Kitase environs. More especially, a great milestone in strengthening the longstanding healthy bilateral relationship between the Government of Ghana and the State of Kuwait,” he said.

A completion of the project, he said, will “boost economic activities, movement of mainly agriculture produce and people to markets, and facilitate trade.”

“It will also reduce travel time and congestion on the Accra-Aburi Road; vehicle operation costs and increase in accessibility, convenience as well as safety of commuters,” he added.

For his part, Mr. Alolayan traced the Kuwait Fund efforts in the development of Ghana to 1977 when the fund participated in the financing of the Kpong Hydro-Electric Project with a loan equivalent to about GH¢ 167 million.

“We cherish our cooperation with Ghana and assure you of our continued support to serve our common objective of development and to strengthen the friendly relations between our two countries.” he said.