A Loan Agreement was signed in Khartoum today between the Republic of Sudan and Kuwait Fund for Arab Economic Development whereby the Fund will extend a loan of Kuwaiti Dinars twenty million (KD. 20,000,000/-), equivalent to about US$ 68 million, to contribute in financing of Rural Water Harvesting Project in Sudan .
The Loan Agreement was signed on behalf of the Republic of Sudan by His Excellency Mr. Magdi Hassan Yassin - Minister of State for Finance and Deputy Minister of Finance and National Economy and on behalf of the Fund by Mr. Hamad Al-Omar, Deputy Director-General of the Kuwait Fund for Arab Economic Development, in attendance of Mr. Abdul-Rahman Al-Hashim, Regional Manager for Central, East and South African countries.
The Project aims at improving the standard of living and promoting public health for the inhabitants of the rural areas allover Sudan through provision of potable water for people and their cattle by implementing water harvesting and underground water structures.
The Project includes the construction of 6 small dams, 200 surface reservoirs for rain water storage, 210 tube wells equipped with electric pumps, storage tanks and water distribution pipes, 300 shallow tube wells equipped with hand pumps, and 32 compact treatment plant. The project also includes provision of necessary consultancy services for preparation of designs and supervision of works.
The total cost of the Project is estimated at about Sudanese Pounds 1,017 billion, equivalent of about KD. 48.3 million, of which the foreign currency is equivalent to about KD. 25.7 million which represents about 53% of the total cost of the Project. The Fund's Loan will cover about 62% of the costs of the Project whereas the Government shall cover the reminder balance or any additional cost.
The Loan will be for a period of 20 years including 4 years grace period, and will be amortized in 40 semi-annual installments, the first of which will be due on 1st date on which any interest or other charge on the Loan shall fall due after the elapse of the above mentioned grace period.
The Loan bears an interest rate at 1% per annum, in addition to 0.5% per annum to cover administrative costs and other expenses incurred in the implementation of the Loan Agreement.
Upon signature of this Loan Agreement, this Loan will be the 28th loan extended by the Fund to the Republic of Sudan, considering that the Fund has already extended 27 loans to Sudan, totaling about KD 286.4 million (equivalent to about US$ 973.76 million). The Fund has also extended to Sudan 3 Technical Assistance the total value of which is KD 387,000 (equivalent to about US$ 1.3 million) to finance the Technical and Economic Feasibility Studies for projects in various sectors. Moreover, the Fund has also administered two State of Kuwait grants to the Republic of Sudan totaling about KD 16 million (equivalent to about US$ 54.4 million).