Grenada's Deputy Prime Minister and Minister of Agriculture, Gregory Bowen says Government will continue to improve conditions for farmers.

He said that farmers played an invaluable contribution in the development of the society and that their needs were of paramount importance to Government. Minister Bowen made these comments Monday at the signing of a loan agreement in St. George's between Grenada and the Kuwait Fund for Arab Economic Development.

The fund will provide a loan of two million five hundred thousand Kuwaiti Dinars (equivalent to about Eastern Caribbean dollars 22.5 million) to assist in financing the Agricultural Feeder Roads Project on the island.

The Loan Agreement was signed by Minister of Finance, Anthony Boatswain on behalf of Grenada, and Hesham Ibrahim Al-Waqayan, Deputy Director General of Kuwait Fund for Arab Economic Development signed the Loan Agreement on behalf of the Fund.

Minister Boatswain thanked the Kuwaiti Fund for the assistance given to Grenada and said that the help rendered was going a long way towards enhancing farming in Grenada. The purpose of the project is to enhance the social and economic development of Grenada, reduce vehicle operating cost and facilitate transport of agricultural produce and passengers in all parishes on the island through the rehabilitation of agricultural feeder roads that are safe to use in all weather conditions.

The project involves civil engineering works for the reconstruction and rehabilitation of about 50 kilometres of  agricultural feeder roads. The work involves sea defences, site preparation, earthworks, pavement layers, drainage structures, bridges and road safety works, as well as consultants' services for the construction.

In addition, the project includes, Institutional support for the project's Implementation Unit, including the procurement of vehicles, office furniture, computers and office equipment and supply of maintenance equipment and tools for the Farm Roads Unit.

The total cost of the project is estimated at about Eastern Caribbean dollars 28.53 million, equivalent to about 3.17 million Kuwaiti Dinars, of which about Eastern Caribbean dollars 27.18 million, equivalent to about 3.02 million Kuwaiti Dinars and representing about 95% of the total costs, are in foreign exchange.

The Project is expected to be completed by the end of 2009 and the loan is for  20 years, including grace period of 4 years.

The Loan will bear interest at the rate of 2.5% per annum in addition to a service charge of 0.5% to cover administrative costs and the expenses of implementing the Loan agreement.