Kuwait funding Havana water project
The head of the Kuwait Fund for Arab Economic Development (KFAED) signed
an agreement April 30 in Havana with the Instituto Nacional de Recursos
Hidráulicos to fund the reconstruction of water and sewer lines in the
Cuban capital, the Kuwaiti embassy said in a press release.
No details about the project or funding were released. If previous
history is an indicator, the funding is in the shape of a low-interest loan.
Kuwait has previously funded water rehabilitation projects in Santiago
de Cuba and Holguín. In 2003, KFAED granted Cuba a $10 million loan for
the $100 million Santiago project. In 2009, KFAED granted a $15.3
million loan for the $40 million renovation of the water system in the
city of Holguín; this project is still ongoing.
KFAED's average loan period is 22 years, with an average grace period of
four years, and an average interest rate (including service charge) of
3.2 percent annually, according to the agency's 2011 financial report.
The new agreement was signed by Abdulwahab Al-Bader, general director of
the Kuwait Fund, and Foreign Trade Minister Rodrigo Malmierca.
Kuwait opened an embassy in Havana in 2010.