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Responding to a question raised by Lower Saloum MP Hon Sainey K. Jawara in the National Assembly on Wednesday, the Minister explained that the financing was signed to cushion the rising cost of basic/essential goods in the country between September and October 2022.
“The idea is to buy basic/essential goods in bulk from African or Arab countries and supply to the Gambian market to bring down the prices,” he said.
He added that before finalizing the financing with the United Arab Emirates Development Authority, “we have approached the Ministry of Trade and Industry with well-known traders of basic/essential goods in the country regarding the financing.”
He continued: “During a meeting with the said traders, we shared with them all the terms and conditions of the facility but they did not express interest in the facility. Later, Jah Oil Co. Ltd expressed interest in the facility and paid all fees associated with the facility, totaling US$770,000.00, as a condition precedent to commencement/payment.”
Therefore, he further stated, “the company was appointed as the executive agent for the facility. Jah Oil Co. Ltd also paid a “commitment fee” of $45,138.89. Currently, 40% of the financing has been utilized as the first tranche of $20 million was paid in January 2024.
“The second tranche of $15 million is currently being processed and is expected to be available soon. Once approved, the financing utilization rate will reach 70%.”
Samba Jallow, the National Assembly member for Nyamina Dankunku constituency, asked the minister about the phases of the implementation process.
Responding to the question, the Minister said that 70% has been completed so far and they are not in a position to prepare an implementation report at a late stage of disbursement of funds.
He added that before making payments, BADEA goes through a checklist to ensure that “what is in the agreement is indeed what is required.”
Mr Yahya Sanyang, the Member of the National Assembly for Ratrikunda Sabij Constituency, asked the Minister if the Gambian government was willing to take on the main responsibility of guaranteeing if Jah Oil defaulted.
In response, the minister said they have already extracted all the obligations they had assumed as a borrower from Jah Oil.
Kiang West MP Lamin Ceesay asked if they had checked the impact of the facility on the lives of Gambians.
“Yes, we did, as a department,” the minister replied. “Incidentally, before Eid, Jah Oil imported rice and sold it below the market price. Jah Oil also imported cooking oil and sold it for Rs1,500 per 20 litres – all below the market price. They actually depressed the market price of both commodities. We believe the second consignment will be rice and we expect a similar impact.”
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