Establishment of a Water System for Bahr El Bakar Drain
A loan Agreement for KD 70 Million was signed in the Arab Republic of Egypt on the 8th of August 2018 to help finance the Establishment of a Water System for Bahr El Bakar Drain in the Arab Republic of Egypt.
The loan agreement was signed by H.E. Dr. Sahar Nasr, Minister of Investment and International Cooperation on behalf of the Egyptian Government, and by H.E. Mr. Abdlatif Yousef Al-Hamad, Director General/Chairman of the Board of Directors of the Arab Fund.
The project represents a main component in the program to develop the Sinai Peninsula. It aims at increasing agricultural production and re-enforcing the interconnection between the Peninsula and the Delta Region, along with the creation of additional job opportunities and the improvement of the service provided to the citizens. This will be accomplished through the transport and treatment of the wastewater from Bahr El Bakar Drain in order to provide around 5 million cubic meters per day of water suitable for agricultural use in order to irrigate around 330 thousand acres.
The project includes the following main components:
The loan will carry interest at 2.5% per annum and will be repayable over 30 years, including a 5 year grace period.
The Ministry of Housing, Facilities and Urban Communities, and the Ministry of Water Resources and Irrigation will be the beneficiary of the loan.
With the signing of this loan, the Arab Fundís total contribution to financing projects in the Arab Republic of Egypt amounts to KD 1,633 million.