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KFAED extends loan to Tunisia for railway development project: The Kuwait Fund for Arab Economic Development (KFAED) has inked a KWD 10 mn (c. USD 32 mn) loan agreement with the Tunisian government to refurbish and upgrade a railway for transporting phosphate in Tunisia, according to a statement released on Thursday. The project is forecasted to be completed in 1H 2028.
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The details: The loan term is set at 27-years, factoring in a grace period of four years, bearing an interest rate set at 2% per annum and to be amortized in 46 semi-annual installments.
More about the project: Tunisia will refurbish and upgrade railway lines transporting phosphate in Tunisia’s south in a bid to slash costs and accommodate new trains running on both fuel and electricity, the statement notes. The rail works will look to cut down on carbon emissions, relieve road congestion, traffic levels, and boost rail speeds to some 80 km/h to 100 km/h — nearly double the current speed levels. Total costs are an estimated KWD 53.6 mn and the government will provide the remaining project financing, the statement adds.
Not the first we’ve heard about this: The Saudi Development Fund issued a USD 55 mn loan agreement for the initiative back in February, with the project set to restore 190 km of the Tunisian railway network.
It doesn’t end there: Kuwait and Tunisia also inked a slew of agreements in a wide range of sectors related to logistics, investment, development, energy, and the environment, including an MoU to boost air transport services between them, Kuna reports.
