The Kuwait Fund for Arab Economic Development (KFAED) has agreed to provide a loan of $20.5m towards the $547m Ouagadougou Airport project in Burkina Faso.

The new airport is being built 35km to the north of Ouagadougou, the country’s capital, and will feature a 3500m runway and 20,000m2 passenger terminal, due by 2015.

The aim of the project is to enhance the social and economic development of Burkina Faso and to improve its interaction with other countries of the world, and will be expected to handle around 1,000 passengers during peak hours.

The loan agreement was signed in Kuwait on the fringes of the African-Arab Economic Forum on behalf of the Kuwaiti state fund by Director-General Abdulwahab Al-Bade alongside Burkina Faso’s Minister of Economy and Finance, Lucien Marie Noel Bembamba.

The loan will mature over 26 years at an interest rate of two percent per annum, in addition to 0.5% per annum to cover administrative costs and other expenses incurred.

Burkina Faso later signed another agreement with the Islamic Development Bank (IDB) and the Arab Bank for Economic Development in Africa for the funding of the same project.

Burkina Faso’s Government reportedly also secured $51.5 million from the West African Development Bank for roads, utilities and technical facilities related to the project, and that the ECOWAS Bank for Investment and Development would contribute a further $10.3m.

KFAED has so far handed 15 loans to Burkina Faso worth a total of $177m for various key projects in the land-locked central African nation.