(Business in Cameroon) - The financing agreement for the Bingambo-Grandzambi section (106 km) of Olama-Kribi road project has been signed with the Kuwait Fund for Arab Economic Development (FKDEA) on 13 January 2020. However, this signature comes almost five years after the conclusion of the first loan agreement.
The note published by the Cameroonian Ministry of Economy on cooperation between Cameroon and FKDEA provides some understanding about the delay in the financial closing and subsequently on the implementation of the project. “The first difficulty in cooperating with the Kuwait Fund is related to communication problems that lengthened the delays in the file follow-up process,” the document indicates.
“In addition, unlike other Arab partners, the Kuwait Fund has the Kuwaiti dinar as its sole currency unit and means of payment in all operations. This generates foreign exchange charges borne by the beneficiary of this financing,” the note continues.
However, the Ministry of Economy explains, in the case of the Olama-Kribi road project, the Kuwait Fund, as the beneficiary’s agent, can make and accept payments in other freely convertible currencies based on market exchange rates and the outstanding amount of the loan or the amount of technical assistance provided by the Fund.