Government’s deal to secure a loan of more than $256 million from China to rehabilitate roads throughout the Scotland District is about to be sealed.
Minister in the Ministry of Finance Ryan Straughn announced yesterday that the agreement for the money from China’s Export Import Bank, for which a memorandum of understanding was signed three years ago, will be formally signed on July 1.
According to the terms of the agreement, $256 600 000, which constitutes the 20-year loan, will be drawn down over a four-year period when the roadworks are expected to be executed. There will be a five-year grace period before repayment starts. That repayment will be in 31 equal semi-annual instalments at an interest rate of two per cent per annum on the undisbursed balance.
A management fee on the aggregate amount of about $641 530 is payable in a lump sum within 30 days of the effective date of the agreement. (GC)
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