What is the ruling on taking a loan from a government bank to finance a project, where the money is not received in cash but as equipment, and part of the price of the equipment is at an interest rate of 8.5%, knowing that there is an accompanying grant from the state? And is the surplus considered an added value to the equipment or an installment sale?

If the bank buys the equipment and furnishings and then sells them to you, even at a higher price than it paid, there is no harm in the transaction. However, if the bank undertakes to pay the price on your behalf to the owner and adds interest, this is forbidden usury (riba) and cannot be called an installment sale. It is a usurious loan that is only permissible out of necessity, and there is no necessity in this case. There is no difference between the bank giving you the money directly or undertaking to pay it on your behalf.