A Loan Agreement was signed today in Khartoum, between the Republic of Sudan and Kuwait Fund for Arab Economic Development, whereby the Fund shall make a Loan of Kuwaiti Dinars twenty five million (KD. 25,000,000) to help the financing the Al Roseras Al Dandar and Southern Al Rahad Irrigation Project in the Republic of Sudan.

The Loan Agreement was signed on behalf of the Republic of Sudan by H.E. Ali Mahmoud Abdul-Rasool, Minister of Finance and National Economy, and on behalf of the Fund by Mr. Abdulwahab Al-Bader, Director-General of Kuwait Fund for Arab Economic Development.

The project aims to contribute in achieving food security in Republic of Sudan through supplying irrigation water for about 351 ha agricultural land including Al Roseras, Al Dandar and Southern Al Rahad zones by executing the outlet works on the right side of the Roseras Dam to carrying the water from the Dinder outlets towards the right bank conveyor canal for the irrigation lands.

The first part of four parts of the project consists of the following components:

Civil works for the preparation of the inlets and outlets of the dam, supplying the steel penstocks and its ancillaries, infrastructure for transferring the water, a stilling basin building for power generation and security building and exterior arrangements.

Supply and installation of hydro mechanical equipment.

Consultant Engineering Services for supervising the works.

The total cost of the Project is estimated at about KD. 535.8 million of which the foreign currency is equivalent to about KD. 376.3 million which represents about 70% of the total cost of the Project. The total cost of the 1st part of the project is estimated at about KD. 27.8 million of which the foreign currency is equivalent to about KD 19.5 million which represents about 70% of the total cost of the 1st part of the project. The Fund's loan will cover about 89.9% of the total cost of the 1st part of the project and the Government of Sudan will cover the rest of the financing of the Project.

The Loan will be for a period of 25 years including 4 years as a grace period, and will be amortized in 38 semi-annual installments, the first of which will be due on the 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 at 2% per annum, in addition to 0.5% per annum to cover administrative costs and other expenses incurred in the implementation of the Loan Agreement.

Upon signature of this Loan Agreement, this loan will be the 25th loan extended by the Fund to the Republic of Sudan considering that the Fund had already extended to the Republic of Sudan 24 loans before with a total amount of KD. 227 million for financing projects in different sectors. The Fund had also extended to Sudan 1 Technical Assistance for a total amount of KD. 54,000 which was integrated in the concerned Loan. The Fund extended also to Sudan 3 Grants with a total amount of KD. 333,000 (i.e. US$ 1.1 million) completely withdrawn.