Gambia has signed a $24 million funding agreement with Saudi Fund for Development (SFD), meant for the construction of the ‘Lamin koto-Pasamas road’ in the Central River Region of the country, APA reported.
A part of the funding is also expected to be used in providing clean drinking water for rural communities in the area.
The agreement was signed by Gambian Minister of Finance and Economic Affairs, Abdou Colley and the Managing Director of the SFD, Yusseph Ibrahim Albadsah, at Sate House in Banjul on Friday evening.
Minister Colley described the agreement as a step forward in overcoming short falls on the construction of the strategic122km road as well as the provision of clean drinking water for communities in rural Gambia.
He said the Saudi Funds has been a good partner to the Gambia government in terms of funding in different areas of developments.
According to him, the project will henceforth resume soon and work is expected to be completed given the availability of Funds thanks to SFD.
Established by royal decree in 1974, the Saudi Fund for Development (SFD) is a Saudi government agency that channels bilateral aid to developing countries, predominantly through grants and soft loans.
The Gambia and Saudi Arabia have established diplomatic relations since 1965.
However, it was only in 2014 when the two countries had a Bilateral Cooperation Agreement that covers agreements in economic development, agriculture, tourism, education, health, infrastructural development, exchange of information, and investment.
The two countries are now negotiating to sign another agreement on the Avoidance of Double Taxation and Protection of Investments, according to Gambia’s ambassador to Arabia, Omar Gibril Sallah.
Sallah told Worldfolio online publication last week that The Gambia is “going to be part of the coalition in Saudi Arabia against terrorism”.