Two Loan Agreements Were Signed to Help Finance Projects in Oman
Two loan agreements totaling KD 110 Million were signed in Muscat on the 28th of December 2016 to help finance two projects in the Sultanate of Oman.
The loan agreements were signed by H.E. Mr. Darwish bin Ismail bin Ali Al Balushi, Minister of Finance, on behalf of the Government of the Sultanate of Oman, and H.E. Mr. Abdlatif Yousef Al Hamad, Director General/Chairman of the Board of Directors of the Arab Fund, on behalf of the Fund. Below are the details of these two loans and the projects they will help finance:
First Project: Development and Expansion of Roads:
A loan agreement, in the amount of KD 50 Million, was signed to help finance a project to improve the land transportation services on the main corridors of the road network to accommodate the rapid increase in road traffic and reduce traffic accidents. The project also aims at contributing to the economic and social development of Al-Batinah South and Dhofar governorates, which are located in the north and south of Oman, respectively.
The project includes the following main components:
1 - Civil Works.
2 - Consultancy Services.
Second Project: Water Distribution Lines for the Transfer of Desalinated Water from Al Ghubrah to Al Seeb and from Barkka to Al Dakhiliyah Governorate:
A loan agreement, in the amount of KD 60 Million, was signed to help finance a project for reducing the current deficit in meeting the existing, and the expected future, demand for drinking water in the west of Muscat Governorate and Ad Dakhiliyah Governorate. This will be achieved through the laying of a new water distribution line to transfer part of the desalinated water from the Al Ghubrah Desalination Plant to the provinces of Bawshar and Al Seeb in Muscat Governorate, the laying of a new, and the strengthening of the existing, water distribution pipelines to transfer water which will be provided by the expansion of the Barka desalination plant to all provinces in Ad Dakhiliyah Governorate.
1 - Water Distribution Pipeline from Al Ghubrah Pumping Station to Al Seeb.
2 - Two Water Distribution Pipelines from Barka Pumping Station to Ad Dakhiliyah Governorate.
3 - Technical Services.
Each of the two loans will carry interest at 2.5% per annum, and will be repayable over 30 years. The grace period for the first loan will be 5 years, while that for the second loan will be 6 years.
With the signing of these two loans the Arab Fundís total contribution to financing projects in the Sultanate of Oman now amounts to KD 481.5 Million.