Mubasher: Kuwait Fund for Arab Economic Development (KFAED) signed a KWD 9 million ($30 million) loan agreement with the People's Republic of China to contribute to financing the expansion of the Second People's Hospital of Guiyang.

The total cost of the project from the reserves of quantities, prices, taxes and interest amounted to KWD 28 million, the fund said in a press release on Monday.

The finance will cover about 32% of the total project’s costs, while the remaining will be financed by the Guiyang People’s government.

The 24-year term loan will be paid over 40 semi-annual installments with a four-year grace period.

The loan has an interest rate of 1.5% per annum, in addition to a rate of 0.5% per annum to meet the administrative costs incurred in the implementation of the loan agreement.

KFAED provided loans worth KWD 289 million to China to finance various projects.