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Signing A Loan Agreement In The Kingdom Of Morocco
The Loan Agreement was signed by His Excellency Salaheddine Mezouar, Minister of Economy and Finance, on behalf of the Kingdom of Morocco, and on behalf of Kuwait Fund for Arab Economic Development by Mr. Abdulwahab Al-Bader, Director-General.
The objectives of the project are to contribute to the provision of irrigation water for an area of about 4000 hectares on the banks of Insekmer river at Midelt Town through the construction of a Dam on the river to regulate about 38 million m3 of water. In addition to securing about 1.3 million m3 of potable water to nearby villages. The Project will also contribute to the prevention of water floods in the downstream areas.
The Project consists of the construction of a roller compacted concrete-weight dam on Insekmer river the dam will be about 320 m long and 7 meters wide and with a height of 60 meters and storage capacity of about 50 million m3. The project also includes the construction of concrete spillway 90 m in length with a design flow of about 750 m3 /second, bottom evacuation 2.2 meter in diameter with a design flow of about 60 m3 /second and irrigation and potable water intakes in addition to the consulting services for detailed engineering and supervision of the Project.
Total cost is estimated about 877 million Moroccan Dirham, equivalent to about KD 30.25 million of which about 453 million Moroccan Dirham, equivalent to about K.D. 15.6 million and representing about 52% of the total costs, are in foreign exchange. The Fund's Loan will cover about 49.6% of the cost of the Project.
The Loan matures over a period of 24 years including 4 years grace period, and will be amortized in 40 semi-annual installments, the first of which will be due on 1st date on which any interest or other charge on the Loan shall fall due after the elapse of the above mentioned grace period. The Loan bears an interest rate at 2.5% per annum, in addition to 0.5% per annum to cover administrative costs and other expenses incurred in the implementation of the Loan Agreement.
The signing of this Loan brings to 35 the number of loans extended by Kuwait Fund to the Kingdom of Morocco or its agencies, , where the Fund previously provided 34 loans totaling about 345 million Kuwaiti Dinars, equivalent to about US$ 1.17 Billion to participate in the financing in projects in different sectors of the economy; in addition to a Technical Assistance of 150 thousands Kuwaiti Dinars to finance the feasibility study for the Rural and Village Water Project and a grant of one million Kuwaiti Dinar to finance Assilah Hospital expansion project and old Person's Home Project in Assilah city.