The government of Sao Tome and Principe has taken on a loan of US$7.5 million from the Arab Bank for Economic Development in Africa (BADEA) to finance the construction of the drinking water supply network.
The loan agreement was signed by the Sao Tome Minister for Planning and Finance, Hélio de Almeida, and the Director-General of BADEA, Habdelaziz Kelef, who arrived Monday for a 48-hour working visit to the archipelago, Portuguese news agency Lusa reported.
Construction work is intended to improve access to drinking water in the city of Santana and the community in the centre of Água Izé as well as to meet the needs of the current and future population until 2030.
The BADEA loan is due to be repaid over 30 years, has a grace period of ten years and an interest rate of 1 percent.
BADEA’s financial support for Sao Tome and Principe totals US$42 million to date.
As part of his visit to Sao Tome and Principe, Kelef met with the ministers for Planning and Finance, Hélio Almeida, and Public Works, Infrastructure and Natural Resources, Fernando Maquengo and is due to be received by Prime Minister Gabriel Costa, before leaving the country Wednesday. (macauhub/ST)