Press Releases
- Press Release Archives
Press Release
Sierra Leone receives US$7 million loan from OPEC Fund for road rehabilitation project
48/2005 April 21, 2005, Vienna, Austria
The OPEC Fund for International Development today signed a US$7million loan agreement with the Republic of Sierra Leone to help finance upgrading of the 21 km-long Tokeh-Lumley road, an important section of the Waterloo-Lumley route, which runs along the west coast and provides a key link to the capital, Freetown.
The combination of inadequate maintenance and more than a decade of civil strife has taken its toll on Sierra Leone’s roads, with barely 900 km of the 11,300 km network paved and the majority classified as being in poor condition. This situation perpetuates poverty for thousands of families who rely on agriculture for income-generation and subsistence. Without reliable roads, the transportation of farming inputs and produce is both costly and time-consuming.
Works will entail the widening, re-aligning and upgrading of the existing gravel-surfaced road to all-weather paved standard, together with the installation of drainage structures to prevent flooding. Two new bridges and 8 km of village access roads will also be built. A 300 m-long stone reinforcement wall is envisaged to protect the road from sea erosion.
The newly rehabilitated stretch will greatly improve links between the coastline’s numerous fishing communities and Freetown, thereby considerably boosting economic activity. Additionally, previously isolated villages will be able to benefit from easier access to services such as health clinics, schools and marketplaces.
The OPEC Fund has previously approved eight loans to Sierra Leone. Three of these provided balance of payments support; one financed a commodity imports program; and four others supported projects in the energy and transportation sectors.
Today’s agreement was signed in Vienna by the Honorable Mr. Joseph B. Dauda, Minister of Finance of the Republic of Sierra Leone, and by H.E. Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.
Data Summary:
| DATA SUMMARY | |
| Project: | Tokeh-Lumley Road |
| Sector: | Transportation |
| OPEC Fund loan: | US$7million |
| Lending terms: | Interest rate of 1% per annum, with an annual service charge of 1% on amounts withdrawn and outstanding; maturity of 20 years, including a grace period of 5 years. |
| Borrower: | Republic of Sierra Leone |
| Executing agency: | Sierra Leone Roads Authority |
| Implementation period: | 3 years |
| Appraising agency: | OPEC Fund |
| Loan administrator: | Kuwait Fund for Arab Economic Development (Kuwait Fund) |
| Cofinanciers: | Kuwait Fund Government of Sierra Leone |
| Total cost: | US$16.6 million |
| Project description: | The project will comprise the following:
|