Two Loan Agreements were Signed to Help Finance Projects in Djibouti
Two loan agreements totaling KD 9 million were signed in Kuwait on the 7th of April 2015 to help finance two projects in the Republic of Djibouti.
The loan agreements were signed by H.E. Mr. Mahmoud Ali Youssef, Foreign Minister, on behalf of the Government of the Republic of Djibouti, 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 details of these loans and the projects they will help finance.
First Project: The Social Housing
A loan agreement, valued at KD 6 million, was signed to help finance a project to contribute to the reduction in the severity of the housing crisis in the City of Djibouti and to meet the growing demand for housing for those with limited income. The project is part of an integrated program to build about 5000 housing units in the west of the city of Djibouti.
The project includes the following main components:
1 - Land Expropriation.
2 - Construction of Housing Units.
3 - Basic Services.
4 - Consultancy Services.
Second Project: Tadjoura Port – Supplementary Loan
A loan agreement, valued at KD 3 million, was signed to help finance a project to develop shipping services in the Republic of Djibouti, through the establishment of a new port in Tadjoura to keep up with the growing demand for maritime traffic. The project also aims at supporting economic and social development in the country, and in particular the northern region.
1 - Offshore Installations.
2 - Infrastructure, Buildings and Equipment.
3 - Advisory Services.
Each of the two loans will carry interest at 2.5% per annum, and will be repayable over 25 years including a 5 year grace period.
With the signing of these two loans, the Arab Fund’s total contribution to financing projects in the Republic of Djibouti now amounts to KD 92 million.