Kuwait City, Aug 03: The Kuwait Fund for Arab Economic Development (KFAED) has extended Afghanistan a 15-million-dollar loan to finance improvements of a road, the Gulf state's Kuna news agency reported today. The road will connect the southern city of Kandahar to Spin Boldak further to the East, close to the border with Pakistan, Kuna said, quoting a Kfaed statement.

The grant will be managed by the manila-based Asian Development Bank (ADB) and the road reconstruction will be completed in one year, the statement added.

The cost of repairs to the 105-kilometre road, including two major bridges, are estimated at 30 million dollars. The other 15 million dollars is being funded by a grant from the ADB's Japan fund for poverty reduction. Rebuilding Afghanistan's roads after decades of war is a priority for the Central government as it attempts to improve security and communications with the provinces.

The cost of rebuilding around 2,400 kilometres of major roads is estimated at 3.4 billion dollars, according to the ministry of public works.

KFAED, established in 1961, is a Kuwaiti government agency which provides financial and technical assistance to developing countries.

Bureau Report