A Loan Agreement was signed today in Cairo between the Government of the Islamic Republic of Mauritania and the Kuwait Fund for Arab Economic Development, whereby the Kuwait Fund will provide a loan to Mauritania in the amount of Kuwaiti Dinars 10 million (equivalent to about U.S. $ 32 million) for the financing of Supplying Kiffa City with drinking water Project. The Loan Agreement was signed by His Excellency Abdelsalam Ould Mohamed Saleh Minister of Economy and Sustainable Development on behalf of the Islamic Republic of Mauritania, whereas Mr. Waleed Al-Bahar, Acting Director-General of Kuwait Fund for Arab Economic Development signed the Loan Agreement on behalf of the Fund.

The Project aims to support the economic and social development in the city of Kiffa and the towns and villages along the main aqueduct by constructing a water supply system to provide higher quality, sustainable and adequate quantities of water, to meet the increased water demand, thus improving the health and social conditions of the residence at the Project area, where the Government attaches high importance to this project among other development projects. The project is expected to contribute to the achievement of sustainable development goals, including: the first (No Poverty), the third (good health and well-being), the sixth (clean water and sanitation), the eighth (decent work and economic growth), the ninth (industry, innovation and infrastructure), and the seventeenth (partnerships for the goals).

The project consists mainly of the civil and electromechanical works, which includes the construction of an intake on the Senegal River, water treatment plant, main aqueduct, branch lines and distribution networks, pumping stations and water reservoirs, household connections and public taps, in addition to the construction of toilets for public facilities and the provision of flushing vehicles. The project also includes, the consulting services, and institutional support. The project
implementation period is estimated of about 3 years, as the project is expected to be completed by 2026/12/31.

The total cost of the Project is estimated at about 12.62 billion new Mauritanian ouguiya, equivalent to approximately
106.21 million Kuwaiti Dinars. The proposed first fund loan of 10 million Kuwaiti Dinars covers about %9.4 of the project costs, in addition to the contribution of the Arab Fund for Economic and Social Development in the amount of 10 million Kuwaiti Dinars, the OPEC Fund for Development in an amount equivalent to about 12.12 million Kuwaiti Dinars, and the Islamic Development Bank in an amount equivalent to about 12.12 million Kuwaiti Dinars, the Saudi Fund for Development in an amount equivalent to about 30.30 million Kuwaiti Dinars, and the Abu Dhabi Fund for Development in an amount equivalent to 9.07 million Kuwaiti Dinars, while the Mauritanian government will cover the remaining costs or any other increase that may occur in the project costs.

The Loan is made for a term of 27 years, including a period of grace of about 4 years, and will be amortized by 46 semi-annual installments, the first of which will be due on the first date on which or any interest or other charges on the loan shall fall due after the elapse of the grace period. Loan will bear interest at 1 % per annum in addition to a charge of %0.5 for meeting administrative costs and the expenses of implementation of the Loan Agreement.

The Fund loan represents the twenty-first loan provided by the Fund to the Islamic Republic of Mauritania, as the Fund had previously provided twenty loans to Mauritania, in various sectors, totaling approximately 124.3 million Kuwaiti Dinars. The Fund also provided nine grants and technical aid to Mauritania, totaling approximately 1.33 million Kuwaiti Dinars. Kuwaiti Dinars. The Fund also administered four grants provided by the State of Kuwait to Mauritania, amounting to about 4 million Kuwaiti Dinars, to finance various development projects.