Loans to help Finance Three Projects in Oman
On Monday 27/04/2020, two loan agreements totaling KD 52 Million were signed, in Kuwait, between the Government of the Sultanate of Oman and the Arab Fund. Additionally, on Monday 08/06/2020, a third loan agreement, for the amount of KD 45 Million, was also signed, in Kuwait, between the same parties.
The three loan agreements were signed, on behalf of the Sultanate of Oman, by H.E. Mr. Darwish Bin Ismaeel Bin Ali Al Bulushi, the Minister responsible for Financial Affairs. H.E. Mr. Abdlatif Yousef Al-Hamad, Director General/ Chairman of the Board of Directors of the Arab Fund, signed both the agreements on behalf of the Arab Fund.
Below are the details of these loans and the projects they will help finance:
First Project: Reinforcement of Desalinated Water Transmission Lines in both the Ash-Sharqiyah Governorates of the Sultanate of Oman (Supplementary Loan).
A loan agreement, valued at KD 25 million, was signed to help finance the project which aims at facing the current deficit in meeting the existing demand for drinking water and meeting the growing future demand in both Ash-Sharqiyah Governorates, through the laying of pipelines to transfer desalinated water from the recently completed expansion of the Soor station, and the Al Ashkara plant, expected to be completed in 2020. The project will provide drinking water to states of the northern Ash-Sharqiyah Governorate, most of which lack water distribution networks and whose residents resort to water tankers to obtain the water they require. The project will also enable the provision of water to a number of industrial and tourism projects, and public utilities in the project area.
The project includes the following main components:
The Arab Fund loan will carry interest of 2.5% per annum, and will be repayable over 30 years including a 4 year grace period.
The Oman Power and Water Procurement Company is the beneficiary of the loan, and responsible for the supervision and implementation of the project.
Second Project: Sea Fishing Port in the State of Dibba in the Governorate of Musandam in the Sultanate of Oman.
A loan agreement, valued at KD 27 Million, was signed to contribute to the development of sea fishing activities and aims at raising the efficiency in the utilization of the abundant supply of fish in the Governorate of Musandam overlooking the Sea of Oman and the Arabian Gulf. This will contribute to meeting the demand on local consumption in the Sultanate of Oman and the increasing rate of fish and other seafood export. It will also contribute to the support of the economic and social development in the Governorate, through the development and expansion of the sea fishing port in the State of Dibba in the Governorate of Musandam.
The Arab Fund loan will carry interest of 2.5% per annum, and will be repayable over 30 years including a 5 year grace period.
The Ministry of Agriculture and Fisheries is the beneficiary of the loan, and is responsible for the supervision and implementation of the project.
Third Project: Sea Fishing Port in the State of Dibba in the Governorate of Musandam in the Sultanate of Oman.
A loan agreement, valued at KD 45 Million, was signed to help finance a program aimed at contributing to the efforts to ward off the effects of the Corona pandemic in the Sultanate of Oman, and the resulting negative repercussions in various sectors. The program includes the implementation of all the works, supplies, services, and advisory and technical services necessary, as agreed upon by the beneficiary and the Arab Fund.
The Arab Fund loan will carry interest of 2% per annum, and will be repayable over 30 years including a 7 year grace period.
With the signing of these three loans, the Arab Fundís total contribution to financing projects in the Sultanate of Oman now amounts to KD 898.5 Million.