A Loan and Project Agreements were signed today in Tunis between the Republic of Tunisia and the Kuwaiti Fund for Arab Economic Development, whereby the Fund will provide a loan amounting to twenty five million Kuwaiti dinars (equivalent to approximately U.S. $ 88 million) for the participation in the financing the development of Transmission and Distribution Network of Natural Gas Project.

The loan agreement was signed on behalf of the Government of the Republic of Tunisia by His Excellency Mr. Lamin Al Dughry, Minister of Development and International Cooperation, while the Project Agreement was signed on behalf of the Tunisian Company of Electricity and Gas by Mr. Tahar Laaribi, Chairman. Mr. Abdulwahab Al-Bader, Director General of the Fund signed both the Loan and Project Agreements on behalf of Kuwait Fund for Arab Economic Development.

The Project aims at the implementation and development of transport networks and distribution of natural gas produced domestically, which is considered one of the cleanest types of primary energy, instead of using other types high cost and cause environmental pollution in the Project's areas.

The project consists of establishing two gas compression capacity of about 600 thousand cubic meters per hour each and extend the steel pipes to transport gas diameters of 24 to 4 with a total length of about 220 km with the necessary equipment for that, project also includes networks for the distribution of gas to customers in approximately 25 municipalities in the northern region of Bizerte and eastern regions of the country and near the transportation network, the project includes owning land and real estate procedures necessary. The total cost of the project Estimated costs of the project, including contingencies for quantities and prices and interest during construction, is estimated at about 196.4 million Tunisian Dinars, or about 36.1 million Kuwaiti dinars, of which about 155.5 million Tunisian dinars, or about 28.6 million Kuwaiti dinars in foreign currencies. The project's costs in foreign currencies represent about 79% of the total project costs. The Fund's loan will cover about 69% of the project costs, or about 87.4% of the costs in foreign currencies, while the remaining costs of the project will be covered by the Government of Tunisia, in addition to any cost overruns that may occur.

The Loan will be for a period of 20 years, including a grace period of 4 years, and will be amortized in 32 semi-annual installments, the first of which in the first date is worth it to pay interest or other costs on the loan after the elapse of the grace period. The loan bears interest at 2.5% per annum, in addition to the fee by 0.5% per annum to meet administrative costs and other expenses incurred in the implementation of the Loan Agreement.

By concluding and effectiveness of this Loan Agreement, it will be the 32nd loan extended by the Fund to the Republic of Tunisia, where that the Fund had already extended the Republic of Tunisia 31 Loans, amounting to 139 million Kuwaiti Dinars (equivalent to about 474 million U.S.$), to finance projects in various sectors. In addition, the Fund had extended to the Republic of Tunisia one technical assistance amounting KD 100,000/-, equivalent to about U.S. $ 350 thousand to finance the feasibility study for Shore Protection Project in Agir-Gerba.