17 December 2007
Cape Verde is to enjoy major changes on the islands as €140 million is to be invested in new infrastructure.
Portugal has agreed to provide two loans worth a total of €140 million to the archipelago to finance the construction and developments of its roads, ports and airports.
The formal agreement was reached on November 25th in Praia, where Portuguese finance minister Fernando Teixeira dos Santos had travelled for the occasion.
Mr Teixiera said that the loans gave "favourable and advantageous" repayment conditions to the country, as the interest rates were lower than market rates.
The former Portuguese colony will receive a first loan of €100 million essentially to develop the ports on the islands of Fogo and Santiago.
Cape Verde's finance minister Cristina Duarte said that the second loan, amounting to €40 million, will fund maintenance of existing roads as well as the construction of new ones on the islands of Santo Antao, Sao Vicente, Maio and Fogo.
However, the major improvement will be the creation of a new two-lane ring road to link the capital's airport, the east side of the city, and the road to the historic city of Cidade Velha on the western side.
The 17-kilometre ring road will considerably ease traffic congestion. An estimated cost of €27 million has been established for the highway alone.
