The Government of Ghana has signed a loan agreement with the Kuwait Fund for Arab Economic Development to finance its Dome-Kitase Road renovation project.

The 19.1km road will connect the Accra-Kumasi road N6 to Accra-Aburi-Koforidua road N4. The project received approval from both the Cabinet and Parliament.

Dome-Kitase road will serve as an alternative route and help reduce traffic congestion on the two national highway roads. It includes the 1km Ashesi University internal roads.

The KD7m (nearly $23.8m) loan will cover around 64% of the project’s total cost. The Ghana Government will be responsible for the remaining costs.

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Under the agreement, the loan will be taken for an interest rate of 1.5%, including 0.5% administration charges.

It will be repaid in 28 years and includes a four year grace period and two equal principal payments a year.

Ghana Finance Minister Ken Ofori-Atta said: “Today is an important day for the people of Ghana, especially those in Dome, Kwabenya, Ayim, Brekusu, Agyamenti and Kitase environs. More especially, a great milestone in strengthening the longstanding healthy bilateral relationship between the Government of Ghana and the State of Kuwait.

“It will especially boost economic activities, movement of mainly agriculture produce and produce and people to markets, and facilitate trade. It will also reduce travel time and congestion on the Accra-Aburi Road; vehicle operation costs and increase in accessibility, convenience as well as safety of commuters.”

The renovation work has a projected implementation period of three years.