Government of Belize Signs Loan Agreement with the Kuwait Fund for Arab Economic Development for the Caracol Road Project
On Monday, January 14, 2019, the Government of Belize signed a Loan Agreement with the Kuwait Fund for Arab Economic Development in the sum of Kuwait Dinars 6 million (approximately US$20 million) for the financing of the Caracol Road Project.
The loan terms include an interest rate of two percent (2.0%) per annum and a repayment term of 20 years with a grace period of five years.
Signing on behalf of the Government of Belize was the Hon. Patrick Faber, Acting Prime Minister and Minister of Finance, while H.E. Mr. Marwan Al-Ghanem, Deputy Director-General for Operations, signed on behalf of the Kuwait Fund.
The Caracol Road Project consists of upgrading an existing primary dirt and gravel road to an asphaltic two-lane, two-way road. This includes the replacement of several bridges covering some 85.4 km of highway from the junction with the George Price Highway to the Caracol Archaeological Reserve.
The Project is divided into two Lots, with the Second Lot (Lot II) being financed by the Kuwait Fund. Lot II encompasses all the road works and structures falling south of the point at the Blancaneax marker to the Caracol Archaeological Reserve and covering a total of 42,9 km.
The First Lot (Lot I) of the Project which encompasses the road works and structures from the George Price Highway to the Blancaneax marker covering a total of 42.5 km, is being financed by the OPEC Fund for International Development and by the Government of Belize.
The Project implementation period is estimated at four years and is expected to be completed by the end of 2022.
In signing the Loan Agreement, the Acting Prime Minister expressed the thanks and appreciation of the Government and People of Belize to Kuwait Fund of their continued support and for their long partnership in the development of Belize.