The agreement was signed in Lusaka between the Zambian government and the Kuwait Fund for Arab Economic Development, whereby the Fund will extend a loan of $14 Million for financing the establishment of the planned Teachers Training College.
Acting Secretary to the Treasury Felix Nkulukusa signed on behalf of the Zambian government, while Hamad AI-Omar, Deputy Director-General of the Kuwait Fund for Arab Economic Development signed on behalf of Kuwait.
The loan agreement is for a period of 24 years, preceded by a 4 year grace period.
Speaking at the signing ceremony Mr. Nkulukusa said the aim of the project was to improve quality and increase access to teacher training education through establishment of a Teachers Training College in Science, Mathematics and Technology.
He says the Project, which is expected to commence during the first half of 2014 and is scheduled for completion by end 2015, will contribute to meeting the country’s demand for Teachers in Science, Mathematics and Technology.
Mr Nkulukusa assured Zambians that the acquisition of the loan facility does not in any way expose the country to unsustainable debt burden.
He says the Treasury is mindful that borrowing within national and international limits is necessary to ensure that Zambia’s debt burden remains manageable.
Mr. Nkulukusa states that the implementation of the project would reinforce the implementation of government’s nationwide economic programme which is aimed at creating one million jobs within five years from 2011 to 2015.
Speaking on behalf of Kuwait, Mr. AI-Omar disclosed that the project involves the construction of buildings and infrastructure, and the supply of furniture, educational equipment and tools.
He explained that the total cost of the Project, including contingencies for quantities and prices is estimated at K102. 7 Million, equivalent to USD 20 Million.
Mr Al Omar says the Kuwait Fund will cover about 70% of the total costs of the project while the remaining costs will be covered by the Zambian Government.
This is contained in a statement issued to QFM News by Ministry of Finance Public Relations officer Chileshe Kandeta.