The loan agreement between OPEC and The Gambia government for the Third Public Works Project, signed in Vienna, Austria, on 5th September, 2007 was on Wednesday ratified by Members of the National Assembly, at an extra-ordinary session held at the Assembly Chambers in Banjul. 

The Third Public Works Project aims at improving the living conditions of the urban population with emphasis on the poorer segments, the provision of adequate public infrastructure and services on a sustainable basis, as well as the development of durable conditions of municipal investment, financing, job creation and income-generation.
According to Musa, Gibril Balla Gaye, Secretary of State for Finance and Economic Affairs, the project will finance small to medium-scale operations in the public works domain, for the construction and rehabilitation of public infrastructure in the urban and peri-urban areas. 

"In the process of executing works, contracts by small and medium sized enterprises in the construction industry", he said, there will be income-generation and job creation.  He added that the project will also build the capacity of beneficiaries, such as Local Government Authorities, village communities, and some public institutions.

He further highlighted that the Civil Works Component (US$3M), comprises small and medium work, consisting of the construction/rehabilitation of physical infrastructure, mainly in the social sector, following traditional type of Gamworks sub-projects.  These, he said, are proposed by the beneficiaries, and are subjected to meeting adequately the eligibility and appraisal criteria as contained in the Gamworks Manual of Procedures. 

"Capacity-building (US$620,000), both of the demand and supply side of public infrastructure and service in the urban areas on a sustainable basis will be a matter of primary concern. For the Third Public Works Project, emphasis will be put on the absolute need for definite maintenance arrangements by local authorities, also resource mobilisation and the provision of training and technical assistance for Gambia Association for Local Government Authorities, Local Government Authorities, and other service providers.  In addition, office equipment and computers will also be provided to augment the operations of the targeted beneficiaries" he narrated.

For the Project Implementation Unit -(US$ 380,000), he said, it comprises programme support for the implementation of the activities of the executing agency, and administrative costs, including staffing, and the procurement of office equipment and project vehicle, as well as compliance with audits and report obligations, to be undertaken under this component.

He then highlighted the terms and conditions of the loan, noting that "government will pay interest at the rate of one percent (1%) per annum, on the principal amount of  the loan withdrawn and outstanding, from time to time with a grace period of 5 years and a repayment period of 15 years".

He added that government will also pay from time to time a service charge, at the rate of one percent (1%) per annum on the principal amount of the loan withdrawn, to meet the expenses of administering the loan and interest and service charge, which will be paid in Dollars semi-annually on March 15 and September 15 each year into an account of OFID designated for this purpose.