Nicaragua secures 4 million Kuwaiti Dinar loan from Kuwait Fund for Prinzapolka bridge project

A Loan Agreement was signed on August 26^th 2025 in Managua, between the Republic of Nicaragua and Kuwait Fund for Arab Economic Development, whereby the Kuwait Fund provides a Loan in the amount of 4 million Kuwaiti Dinar (KD) to assist in financing the Construction of Prinzapolka Bridge on the Rio Blanco – Siuna National Highway Project.

The Loan Agreement was signed on behalf of the Republic of Nicaragua by Dr. Bruno Gallardo Palaviccine (Minister of Finance and Public Credit) and on behalf of the Kuwait Fund for Arab Economic Development by Mr. Waleed Al-Bahar, Acting Director-General of the Fund.

The total cost of the project is estimated at US$ 16.8 million, equivalent to KD 5.26 million. The loan from The Kuwait Fund, amounting to KD 4.0 million, will cover 76% of the total cost of the Project.

The loan will be made for a term of 20 years, including a grace period of 4 years, and bears an interest rate of 2% per annum in addition to a service charge of 0.5% per annum for meeting administrative costs and the expenses of implementing the Loan Agreement.

This is the third loan extended by the Kuwait Fund to the Republic of Nicaragua, following two previous loans, totalling approximately KD 10.13 million (equivalent to about US$ 32.42 million) for the financing of the Construction and Equipping of the Chinandega Departmental Hospital in the health sector. This loan is the first in the transportation sector.