The Loan Agreement was signed on behalf of the Republic of Lebanon by His Excellency Mr. Mohammad Safadi, Minister of Finance and His Excellency Mr. Gebran Bassil, Minister of Energy on behalf of the Government of the Republic of Lebanon, whereas Mr. Abdulwahab Al-Bader, Director-General of the Fund signed the Loan Agreement on behalf of the Fund.

The aim of the project is to assist in protecting the environment and public health and encourage the inhabitants to stay in their areas and to protect the natural resources and support the agriculture activity.

The Project comprises the construction of two sewage systems, one in Marjayoun – Alkhyam and the other in Shaqra.  The first system consists of networks totaling about 140 km in length and about 5 riser stations to collect and transport the sewage from 7 villages situated in Marjayoun – Alkhyam agricultural valley.  The networks are connected to the 5200 m3/day sewage treatment plant in the valley.  The treated water will be carried to a collecting reservoir to be used for agriculture through an existing irrigation scheme.  The system includes also pipeline to carry the sewage treated water to the Litanie River in the rainy season.  As to the Shaqra system it consists of networks of sewage water for 6 villages that connect to a sewage treatment plant, the capacity of which is about 4500 m3/day.

The total cost of the project is about KD 20.8 million (equivalent to about US$ 70.7 million) of which KD 18.3 million (equivalent to about US$ 62.2 million) is in foreign currency. 

The loan shall be for a period of 25 years including 5 years grace period.  The loan bears interest at 2% per annum, in addition to 0.5% per annum to cover administrative and other expenses incurred in the implementation of the Loan Agreement.

By signing this loan agreement, the Fund will have provided Lebanon with 19 loans, as the Fund has previously extended to Lebanon 18 loans to finance projects in various sectors totaling about KD 167 million equivalent to about US$ 568 million, in addition to one technical assistance totaling about KD 700 thousand (equivalent to about US$ 2.4 Million) to finance the preparation of the technical and economic feasibility studies for the Development of Raffic Al-Hariri International Airport Project, in addition to 6 Grants totaling about KD 2.7 million (equivalent to about US$ 9.2 million) to finance projects in the Health sector and train the Government employees.  The Fund also administers 7 grants provided by the Government of Kuwait to the Republic of Lebanon totaling about KD 119 million (equivalent to US$ 405 million) to finance projects in the Health sector in addition to the reconstruction of South Lebanon and the rebuilding of Beirut Historical Museum.