RFA and KfW sign loan agreement
15 Dec 2017 15:40pm
WINDHOEK, 15 DEC (NAMPA) The Road Fund Administration (RFA) and Germanys KfW Development Bank have signed a N.dollars 482 million loan agreement for the rehabilitation of the Mariental-Keetmanshoop road.
This agreement, according to the RFA, stems from the agreement between the governments of Germany and the Namibia on financial cooperation, specifically directed at the Fifth National Development Plan (NDP5) support programme for road maintenance and rehabilitation.
RFA Chief Executive Officer, Ali Ipinge, during a media conference in the capital on Friday said the loan, through the Roads Authority (RA)s administration, will be used to partially fund the rehabilitation of the trunk road between Tses and Gochas.
In line with this mandate, the RFA is committed to facilitating quality road infrastructure investment and believes that investing in projects such as these shows that the RFA is committed towards achieving its mandate, Ipinge said.
Construction work on this project is envisaged to start during the 2018/19 financial year and planned for completion in the 2020/21 financial year, with the loan repayment expected to commence in 2021.
It will be fully repaid by the RFA over 10 years.
Ipinge said despite Namibias current economic climate, which has resulted in a slowdown in overall infrastructure expenditure, the RFA and RA continue to strive to ensure road construction and maintenance.
The project, among others, is expected to reduce vehicle operating costs and increase the longevity of the road, create employment for local people and contribute to local and regional trade through transportation of goods and services via the Trans-Kalahari and Kunene highways.