KFAED, Egypt ink loan, grant accords

KUWAIT, Dec 4 (KUNA) -- One loan and two grants agreements were signed on Sunday in Cairo between the Egyptian Government and Kuwait Fund for Arab Economic Development whereby the fund will lend Cairo KD 35 million (about USD 115.5 million) to assist in financing construction of the desalination of sea water plant project for the East Port Said City.
One of the two grants, valued at KD 200,000 (USD 664,451.83), will be for financing a feasibility study for establishing solar energy plants and the other, worth some KD 4.57 million (USD 15 million), will be a contribution to financing projects aimed at relieving socio-economic impacts in health, municipal services, water, and sanitation within host communities in Egypt of Syrian refugees.
They were signed by Egyptian Minister of International Cooperation Dr. Sahar Ahmed Mohammed Abdul-Moniem Nasr and KFAED General Director Abdulwahab Ahmed Al-Bader.
The desalination project aims at securing potable water, whether for drinking or commercial and industrial uses, in the new Eastern Port Said City, which is currently under construction. It involves construction of a sea water desalination plant with a production capacity of 150,000 cubic meters per day, using the technology of reverse osmosis, together with structures for the intake of sea water and disposal of used water designed for a plant of a capacity of 250,000 cubic meters per day to take account of future expansion in the production capacity of the desalination plant.
The project includes all civil works required for the desalination plant and the construction of the networks for transmission and distribution of water, with a total length of about 700 kilometers, as well as the storage tanks required for the said networks, fittings, measurement and control equipment, all electrical and mechanical works required for the operation of the desalination plant. It is forecast to complete by the end of 2019.
Its total cost is estimated, according to prevailing conditions at the end of July 2016, at about 2,871 million Egyptian pounds, equivalent at the time to about KD 95 million (some USD 311).
The loan will be for a term of 25 years, including a grace period of five years, and is to be repaid in 40 semi-annual instalments, the first of which will be due on the first date on which interest or other charges on the Loan will fall due in accordance with the agreement, after the expiration of the said grace period. It bears interest at the rate of 1.5% per annum, in addition to a service charge of 0.5% per annum to meet administrative costs and other expenses.
The Syrian refugees grant aims at addressing the needs of the refugees and host communities, by increasing the level of health services in fighting infection by increasing health awareness to fight spreading of diseases, and by availing basic vaccinations.
Furthermore, the project aims at contributing to raising the level of municipal services in areas of Syrian refugees' concentration in Giza Governorate by purchasing necessary vehicles. The project further aims at enhancing water and sanitation services in some host areas by increasing the efficiency and the development of three secondary pumping stations, strengthening water and sanitation networks in New Damietta, three secondary pumping stations in New Cairo, one pumping station in Sixth of October and a main sanitation station.
It is KFAED's 43rd loan for Egypt. (end) ms.rk