Kosovo signs USD 20mn loan agreement with OPEC's Fund for International Development

By bne IntelliNews September 6, 2013

The OPEC Fund for International Development (OFID) said it has signed a USD 20mn loan agreement with Kosovo for the expansion of the Pristina-Mitrovica motorway located in the northern part of the country.

The agreement was signed by Kosovo's finance minister Besim Beqaj and OFID's director general Suleiman Al-Herbish on Sep 5 in OFID's headquarters in Vienna, the lender said in a statement.

The infrastructure project that will benefit from the loan will upgrade a 26.7km road that serves the cities of Mitrovica, Vushtrri and the capital Pristina - which is an area populated by around 400,000 inhabitants, the statement read. The improved road will significantly reduce travel time, thus facilitating trade and production, and easing the local population’s access to health and education.

The project is co-financed by the government of Kosovo, as well as by the Islamic Development Bank (IDB) and the Saudi Fund for Development. The IDB agreed in May to give Kosovo USD 20mn for the upgrade of the motorway. An agreement with the Saudi Fund for Development is expected to be signed by the end of the year, according to Kosovo's finance ministry.

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