Two Loan Agreements were Signed to Help Finance Projects in Oman
Two loan agreements totaling KD 118 Million were signed in Muscat on the 24th of December 2018 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 by 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 loans and the projects they will help finance:
First Project: Reinforcement of Desalinated Water Transmission Lines in Al Batinah Governorates
A loan agreement, valued at KD 70 million, was signed to help finance a project which aims at facing the current deficit in meeting the demand for drinking water, and the increasing future needs in North and South Al Batinah governorates up to the year 2040. This will be achieved through the laying of transmission lines to transfer desalinated water, available from the Barka desalination plant, which was recently expanded, and the Sohar desalination plant, the expansion of which is about to be completed. The transmission line between the two desalination plants will avoid any water cutoffs in Al Batinah governorates in the case of a breakdown in either plant or in their subsidiary facilities. The project will provide drinking water for the people living in the vicinity of the project who resort to water tanks to meet their needs, in addition to providing water to several industrial and touristic projects, and public facilities in the area.
The project includes the following main components:
Second Project: Development and Expansion of the Third and Fourth Sections of the Sinaw – Muhut – Duqm Road
A loan agreement, valued at KD 48 Million, was signed to help finance the modernization and upgrade of the third and fourth sections of the Snau-Mhout-Dokm roa. The project aims at improving land transport services on the main corridors in the areas where the road passes through in the Al Sharqiyah North governorate and Al Wusta governorate in Oman, to accommodate the rapid increase in road traffic, reduce traffic accidents and contribute to the support of economic and social development.
Each of the two loans will carry interest at 2.5% per annum, and will be repayable over 30 years including a 6 year grace period for the first loan, and 5 year grace period for the second loan.
With the signing of these two loans, the Arab Fund’s total contribution to financing projects in the Sultanate of Oman now amounts to KD 711.5 Million.