Current News & Events
Signature of two Loan Agreements within the Sinai Development Program & Signature of two Grants
Signature of two Loan Agreements within the Sinai Development Program
(1) Loan of KD 60 Million to Finance Alnafaq-Sharm Alshiekh Road Project
(2) Loan of KD 17.5 Million to Finance Ardhi 4 Road Project
Signature of two Grants
(1) KD 500,000 for financing of the activities Egypt's Center for Strategic Documents
(2) KD 100,000 for financing the Technical and Economic Feasibility Studies for Date Palm Cultivation and Dates Processing
Arab Republic of Egypt
Two Loan Agreements were signed today the city of Cairo between the Government of the Arab Republic of Egypt and the Kuwait Fund for Arab Economic Development, (KFAED) whereby KFAED provides a loan of KD 60 Million (equivalent to about US$ 204 Million), to Finance Alnafaq-Sharm Alshiekh Road Project & a loan of KD 17.5 million (equivalent to about US$ 59.5 million), to finance the Construction of Ardhi 4 Road Project. Both Projects within Sinai Development Program.
Additionally, two Grant Agreements were also signed between the Arab Republic of Egypt and KFAED, whereby the Fund provided an amount of KD 500,000/- for financing the Strategic Center for document for the Social and Economic Rehabilitation and an amount of KD 100,000/- for financing the Organic Farming Technology for Bio and Oil Corporation Pilot Project in Northern Sinai Province.
It is worth-mentioning that the Fund is a Kuwaiti Public Institution which relies entirely on its own resources for the provision of loans and other kinds of development assistance.
The Loan and Grant Agreements were signed by H.E. Dr. Sahar Ahmed Mohammed Abdul-Moniem Nasr, Minister of Investment and International Cooperation, on behalf of the Government of the Arab Republic of Egypt, and by Mr. Abdulwahab Ahmed Al-Bader, Director-General of KFAED on behalf of Kuwait Fund for Arab Economic Development.
Both Projects aims at supporting the economic and social development of the area's Bedouin settlements through providing means of living and stability for the population, including the attraction of investment, leading to the creation of employment opportunities and improving living standards in the Sinai area. Both Projects targets more integration of the roads network in Sinai and increasing road safety in addition to reducing vehicle operating costs and travel time. In addition, the Project will contribute to easing access to health and education services in Projects' path. In addition, the Projects aims at facilitating future trade between the Republic of Egypt and neighboring countries.
The First Road Project takes a northern-southern route, parallel to the Western coast of Sinai, and linking Suez and South Sinai Governorates. The Project commences in Suez Governorate, east of the Canal at the junction of Ardi 1 road and the Martyr Ahmed Hamdi Tunnel, and ends in Sharm Al-Sheikh City within South Sinai Governorate. It consists of constructing an asphalted road of an approximate length of about 350 km, with 6 lanes (3 lanes in each direction with a width of 3.6 m for each lane), a median strip with a width ranging between 12.2 – 37.5 m, and outer shoulders 2.5 m wide and inner shoulders 0.6 m wide. The Project also includes drainage structures, protection and safety works and consultancy services for the revision of the detailed engineering design and for the supervision of construction. The total costs of the first Project is estimated at about Egyptian Pounds 6,644 million, equivalent to about KD 110.105 Million, of which about Egyptian Pounds 4,299 Million (equivalent to about Kuwaiti Dinars 71.238 Million) will be in foreign currency (representing about 64.7% of the total cost of the Project).
The Second Road Project further aims at integrating road network in Sinai, raising road safety, and reducing operating costs and travel time. This will contribute to the development efforts in the Project impact area, and increase employment opportunities, as well as facilitating population's access to education and health services. The Project also aims at improving trade between the port of El Arish and the North, Central, and South Sinai, as well as commercial traffic between the port of Awja and the areas in North Sinai. The Second Road Project is located in the Sinai Peninsula, takes a north-south route, linking the North Sinai Governorate with the northern border of South Sinai Governorate. The Project starts from El-Qantara / Arish road near Bir Al-Abd, and ends at the Tunal / Taba road in Sadr Hittan area. It consists of constructing an asphalted road of an approximate length of about 160 km, with 6 lanes (3 lanes in each direction with a width of 3.6 m for each lane), and with a total width of 46 m which includes a median strip 20 m wide and inner shoulders 0.5 m wide and outer shoulders 2m wide. The Project also includes drainage structures works, protection and safety works, in addition to the consultancy services for the revision of the detailed engineering design and for the supervision of construction. The total cost of the Second Project is estimated at about Egyptian Pounds 3175 million, equivalent to about KD 52.617 Million, of which about Egyptian Pounds 2,091 million (equivalent to about KD 34.656 million) is in foreign currencies, representing about 66% of the total cost of the Project.
The first Loan is made for a term of 22 years, including a grace period of 7 years, and is to be amortized in 30 semi-annual installments, while the Second Loan is made for a term of 25 years, including a grace period of 5 years, and is to be amortized in 40 semi-annual installments, the first of which will be due on the first date on which interest or other charges of the Loans will fall due, in accordance with the respective Loan Agreement, after the laps of the said grace period. Both Loans bear interest at the rate of 1.5% per annum, in addition to a service charge of 0.5% per annum to meet administrative costs and other expenses related to the implementation of the Loan Agreements.
Additionally, the first Grant Agreement comes as a continuation of the previous grant to the Center for Strategic Documents taking into consideration the importance of the vision to spread the culture of documentation, information and knowledge accumulation and to build the foundations of electronic memory in support of reform efforts and economic and social development. The Second Grant will finance the date palm cultivation and dates processing Project, which aims at achieving part of the 2030 State Sustainable Development Goals and within the food security strategy to bridge the food gap by increasing the agricultural area and benefiting from groundwater reserves for irrigation.
These Loans represents the 46th & 47th loan made by KFAED to the Government of the Arab Republic of Egypt or to entities, which are subordinate to it. KFAED has previously made 45 loans to finance projects in various sectors, with a total of about KD 845 million (equivalent to about US$ 2.87 billion). In addition, KFAED has already provided 16 grants and technical assistance to Egypt, totaling to about KD 3.9 million (equivalent to about US$ 13.3 million), to finance technical and economic feasibility studies for certain projects, and other activities. KFAED also administered two Grants provided by the Government of the State of Kuwait to the Arab Republic of Egypt with a total amount of about KD 4.9 million (equivalent to about US$ 16.7 million) for the purpose of reconstruction of schools damaged by the earthquake in 1993 and villages affected by floods in 1995.