Two Loan Agreements were Signed to Help Finance Projects in the Kingdom of Morocco
Two loan agreements, totaling KD 72 million, were signed in the Kingdom of Morocco on the 19th of June 2019 to help finance two projects in the Kingdom.
The loan agreements were signed by H. E. Mr. Mohammed Binshaíabon, Minister of Economy and Finance, on behalf of the Government of the Kingdom of Morocco, and by H.E. Mr. Abdlatif Yousef Al-Hamad, Director General/ Chairman of the Board of Directors of the Arab Fund. Below are the details of the loans and the projects they will help finance:
First Project: Ring Road to Laayoune City:
The project aims at contributing to the improvement of the land transportation services on the main road network in Laayoune and its surroundings areas, by absorbing and transferring part of the city centerís increasing traffic, and the traffic passing through the city, as well as decreasing congestion and traffic accidents. The project also aims at improving the connection between the northern and southern areas of Morocco.
The project includes the following main components:
Second Project: Heightening of Mohamed V Dam:
The project aims at improving the regulation of Wadi Moulouyaís water through the heightening of Mohamed V dam to compensate for the decrease in the storage capacity of the dam due to the accumulation of sediment in its reservoir, and to provide additional quantities
of water to meet the demand for water in the projectís region. The additional water provided by the project will allow for the intensification of agricultural production in the lands equipped for irrigation from the exiting dam, meeting the demand for drinking water, as well as generating extra electricity from the damís existing hydroelectric power station. The project will also contribute to the protection of the land downstream of the dam in Wadi Moulouya basin from the risk of flooding.
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.
With the signing of these two loans, the Arab Fundís total contribution to financing projects in the Kingdom of Morocco now amount to KD 1,423 Million.