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The Second Loan for financing Cross Road Project 4 (within the Sinai Peninsula Development Program) Amending Loan Agreement No. (987), dated 13/03/2018, in the Arab Republic of Egypt
A Second Loan Agreement was signed today between the Government of the Arab Republic of Egypt and the Kuwait Fund for Arab Economic Development (KFAED) in the new Administrative Capital, Cairo on the sidelines of the 2019 African Conference. The Fund will provide a second loan to the Government of the Arab Republic of Egypt of KD 25 million (equivalent to about US$ 85 million) to contribute to the financing of Cross Road Project 4 (within the Sinai Peninsula Development Program) and the amendment of the Loan Agreement No. (987) concluded on 13/03/2018.
The Second Loan Agreement was signed on behalf of the Government of the Arab Republic of Egypt by H.E Dr. Sahar Ahmed Mohamed Abdel Moneim Nasr, Minister of Investment and International Cooperation, and on behalf of the Kuwait Fund for Arab Economic Development by Mr. Abdulwahab Ahmed Al Bader, Director General of the Fund.
The project aims to integrate the country's road network, improve its safety, reduce operating costs and transport time, contributing to development efforts in the project's impact area, increasing employment opportunities, and facilitating access to education and health services for the population.
The project is located in the Sinai Peninsula and takes a north-south route linking the North Sinai governorate with the northern border of the South Sinai governorate. The project starts from Al-Qantara / El-Arish road near Bir al-Abed and ends on the tunnel / Taba road in the Sadr Hitan area. The project includes the construction of a way with a total length of about 160 km to a six-lane asphalt road (3 lanes in each direction with a width of 3.6 meters per lane) and an overall width of 46 meters, including a central island of 20 meters wide and side shoulders for each side 2 meters exterior and 0.5 meters internally. The project also includes surface drainage works, protection and safety works, as well as consultancy services to review detailed designs and supervise implementation.
The term of the loan mentioned in the preceding paragraph is 25 years, including a grace period of 5 years. The loan will be repaid in 40 semi-annual installments, the first of which is due on the first date on which interest or other costs are scheduled after the expiry of the said period. The interest on the loan is 1.5% per annum, in addition to a 0.5% per annum fee to meet the administrative costs and services of implementing the loan agreement.
The total cost of the project, including reserves, taxes, fees, and interest during implementation, is estimated at LE 3,130.74 million, or about KD 54.594 million, of which about KD 36.52 million in foreign currencies, thus foreign currencies constitute about 67% of the total cost.
The Kuwait Fund loan represents the 52nd Loan provided by the Fund to the Arab Republic of Egypt. The Fund has already delivered 51 loans with a total value of about KD 1,039 million (equivalent to about US$ 3,531 million), of which KD 704 million has been withdrawn to date. This is equivalent to about 67% of the total amount of loans extended, of which KD 327 million was paid, equal to about 31% of the total amount withdrawn. The Fund also provided 18 Grants and Technical Assistance to the Arab Republic of Egypt with a total value of about KD 5.10 million, of which KD 2.42 million was withdrawn. The Fund also administered two grants from the Government of the State of Kuwait to the Arab Republic of Egypt, with a total value of about KD 4.840 million (equivalent to about US$ 16.5 million), which were fully withdrawn.