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The Gambia Ratify Loan Agreement with IDB
By Baboucarr Senghore
At its fourth meeting, the National Assembly on Wednesday, 6th December 2006, ratified the loan agreement between the government of The Gambia and the International Development Bank amounting to ID (Islamic Dinnar) 6,300,000, equivalent to US$ 8,900,000 and ID 1,300,000 equivalent to US$ 1,800,000 for the participation in financing the Lowlands Development Project (LADEP).
In moving the motion before NAMs for ratification, the Secretary of State for Finance and Economic Affairs, Musa Bala Gaye, said the Lowlands project aims at improving food security and alleviating poverty for the population of the Western Division of The Gambia primarily, and the whole country generally.
“The Lowland Development Project consists of rural infrastructure including lowland and irrigated land development, field equipment and tools, environmental protection, input and supply, project management unit, familiarisation visits, and start of workshops, technical assistance, consultancy services and audit,” he noted.
He said the Islamic Development Bank contribution will be through an ordinary loan, and also in Least Developed Countries loans, and represents 84% of the total project cost.
Secy Bala Gaye observed that the terms of the loan agreement are that the IDB will make available to the government of The Gambia an amount not exceeding ID 6.3 million equivalent to US$ 8.9 million by way of an ordinary loan which will be repaid over a period of 25 years including 7 years grace period.
According to the Finance Secy, the Bank will also make available to the government of The Gambia an amount not exceeding ID 1.3 million about US $ 1.8 million equivalent to D50.47 million by way of Least Developed Member Countries (LDMC).
He added that that component of the loan will be repaid over a period of 30 years, including 10 years grace period which will bear a lump sum service charge of ID 173, 550, which shall not exceed 0.75% of the loan amount if calculated on an annual basis.
He added that the project will be implemented over a period of five years starting in 2007 and expected to be completed by 2012.
In supporting the motion, Hon. Halifa Sallah, Minority Leader and Member for Serrekunda Central, said any agricultural development project can be considered to be crucial owing to the relevance to the survival of the people, if it can help achieve food self-sufficiency and food security in order to safeguard the future from poverty.
“The project, if it is going to help us to achieve greater self sufficiency, will be an ideal project,” Hon Sallah concluded.
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