2 December 2011
Juba — South Sudan plans to borrow $679 million in the 2011-2012 financial years to invest in improving its road and rail networks, a senior official with the Finance Ministry said on Friday.
That will be in addition to the more $250 million loan expected from other internationals bank including International Monetary Fund, as well as the African Development bank, the official who requested to remain anonymous having not been authoritised to speak to the media told Sudan Tribune on Friday.
The official said the government is seeking to raise at least $750 million in the 2012-13 periods.
“This shows the level of confidence our government has in our economy,” he said.
“With the oil experiencing difficulties on the way to the international markets, the government feels obliged to seek loans from friendly countries so that we can support our developmental projects”, the official adds.
He pointed out that there is an urgent need for financial support from the international community so the government can implement pending projects due to funds.
“There are a lot of projects which have not been implemented since when some of them were identified two to three years.
“There was a project to build oil refinery in Akon. There was also a plan to do the same in Bentiu, Malakal and Bor but these projects are not being implemented now, because of financial constraints. They are stuck simply because there is lack of funds and the government cannot be blamed because there are a lot of priorities”, he explained.
He further added that the government of the newly born nation plans to build new roads and rail lines to mainly areas with “highest economic potential,” such as agriculture, mining and tourism, according to its five-year development plan.
Civil wars for most of Sudan’s independence have destroyed the little infrastructure that South Sudan has.
The loan targeting World Bank and other public lending institutions would last for seven years, with a two-year grace period and after that a 5.2% annual interest rate, he said.
South Sudan’s economy has struggled since independence, coping with the introduction of a new currency, and high inflation. Corruption has also restricted South Sudan’s ability to implement infrastructure projects.
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