Chinese Bank Offers Kuwait 5 Billion Dinars Loan

The China Development Bank in charge of preparing the technical study for the Al-Shaqaya City project has unofficially offered the possibility of lending Kuwait 5 billion dinars, to finance the project infrastructure, but the bank officials fear the project may falter politically and demanded guarantees from the Kuwaiti government given the size of the project.

The sources told Al-Rai that the project to be built on an area of ​​50 million square meters, which is expected to be completed in two years according to the 10-year study.

The sources said, should the China Development Bank lend 5 billion dinars for the project the money is to be paid over 19 years at an interest of up to 5.5 percent, or the Kuwaiti government establish a company which the bank will finance with the same benefits, but the bank has requested guarantees through legislation or otherwise to ensure the stability of the project fearing political instability. 

The sources indicated “the authorities in Kuwait are studying the Chinese offer, in addition to other ideas, including that the Chinese bank bear the entire cost of implementing the project in exchange for the concessions on B.O.T. system, provided that 30% of the products offered in tenders for the project will be allocated to Kuwaiti industries.

 

SOURCE  :  TIMES KUWAIT

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