2006 Loans

• During 2006, the Fund extended 18 loans to 9 Arab countries, amounting to KD 345.0 million. The loans contributed to 15 new projects, one of which was a private sector project, in addition to 3 previous projects. The total cost of these projects is estimated at KD 996.0 million, with the loans provided by the Fund covering around 34.6% of these costs.

• Infrastructure projects were given first priority with respect to loans extended by the Fund during 2006, in line with the increased interest of member states in improving infrastructure efficiency and providing essential services to citizens. Thus, infrastructure projects accounted for 84.4% of total loans; of which 7 loans were allocated to transport projects and amounted to KD 182.0 million, aimed at developing and improving land transport services, increasing efficient utilization of the main road networks and their absorptive capacity, in addition to linking isolated rural areas to hubs. Morocco, Oman, Tunisia, Egypt, Lebanon and Jordan benefited from these loans. Other transport projects included the development of Hurghada International Airport in Egypt, in order to meet the increasing demand for passenger transport services. Furthermore, 3 loans were allocated to energy and electricity projects in Bahrain, Egypt and Tunisia, totaling KD 69.0 million. These projects aim at increasing the electricity generating capacity and upgrading power transmission networks. The activities of the Fund’s lending program during 2006 also included 2 loans allocated to water and wastewater projects in Yemen and Lebanon, amounting to KD 40.0 million. Additionally, 2 loans were allocated to the education sector totaling KD 20.0 million, which helped finance the project of the generalization and integration of information technology in public schools in Morocco, and the construction of the University of Djibouti. Moreover, a KD 15.0 million loan was extended to the Social Development Fund in Yemen, while a KD 9.0 million loan was allocated to finance the administrative rehabilitation project in Lebanon.

• Since the commencement of the Fund’s activities and until the end of 2006, the number of loans extended has reached 504, with a total value of KD 5449.7 million. These loans have financed 431 projects in 17 Arab countries, and have represented 27.9% of the total cost of these projects. The distribution of loans is as follows: 65.5% of total loans represented infrastructure sector projects totaling approximately KD 3568.9 million ; of which KD  1676.8 million were allocated to energy and electricity projects, KD 1314.9 million were allocated to transport and telecommunication projects, and KD 577.3 million were allocated to water and sewerage projects. Productive sector projects made up approximately 23.9% of total cumulative loans with a total value of KD 1305.5 million; of which KD 921.8 million were allocated to agricultural, irrigation and rural development projects, and about KD 383.7 million were allocated to finance industry and mining projects. Furthermore, 9.3% of total loans (KD 506.5 million) was allocated to social services projects, and contributed to financing projects in education, health, housing and social development.  The remaining 1.3% of the total value of loans was provided to finance other activities. In addition to financing the main components of the various projects, the Arab Fund also contributed towards institutional support and training to most of the institutions concerned in those projects, in order to increase their efficiency. Table (2) shows the sectoral distribution of the Fund’s loans.

• The activities of the Fund have also continued to encourage the role played by the private sector in development. Since the beginning of its private sector program, the Fund has extended 5 loans with a total value of KD 21.0 million, which have contributed towards financing 4 projects. In 2006, the Fund extended a KD 7.0 million loan which contributed to the financing of Aden iron factory in Lahaj province in Yemen. The Fund also contributed to the Grain Silos and Flour Mills project at Saleef Port in Yemen with two loans totaling KD 5.0 million, the Five-Star Hotel project in Sana’a with a KD 6.0 million loan, as well as the Bahrain Specialist Hospital with a loan of KD 3.0 million. Additionally, the Fund contributed towards the capital of the Glass Containers Company (Egypt) and the Middle East Healthcare Company (Saudi Arabia), with a total value of KD 3.2 million. The Arab Fund has initially agreed to complete the assessment of the Ras Isa oil refinery project in Yemen; Mukalla iron and steel plant in Hadhramaut; Alsalam cement production plant in Atbara, Sudan; the project for the raising and trading of livestock in Sudan; as well as the  evaluation of the Mauritanian Leasing Company, as a prelude to a decision about contributing to the financing of these projects.

• The Arab Fund maintained its support of joint Arab efforts to build basic framework and strengthen means of communication and inter-connections between member states. Since its inception, the Fund has extended 65 loans, totaling approximately KD 322.1 million, to finance 29 joint Arab projects in the areas of communications, electricity, natural gas and international roads. Total disbursements from these loans, until the end of 2006, reached about KD 271.2 million, or approximately 93.1% of total loan commitments.

• The Fund continued its co-financing activities with other Arab national, regional and international development institutions. During 1974-2006, the Fund’s contribution to this area reached KD 2.8 billion, constituting around 35.8% of the KD 7.7 billion total joint financing.

• The Fund continued to monitor the progress of ongoing projects, follow the implementation of the conditions set forth in their loan agreements, and take the necessary steps to ensure the proper completion of projects. During 2006, a total of 16 projects amounting to a total cost of KD 613.1 million were completed, with the Fund financing about 41.7% of their costs.

• Total disbursements during 2006 amounted to about KD 281.5 million, of which KD 9.3 million were disbursed to finance private sector projects. Cumulative disbursements on all loans since the commencement of the Fund’s activities and until the end of 2006 totaled KD 3,536.8 million, which  included KD 20.0 million for private sector projects. Repayments of loans in 2006 amounted to KD 306.4 million, of which KD 540 thousand were from the private sector. Cumulative repayments totaled KD 1,597.1 million, of which KD 1,350 thousand were from the private sector, representing  about 32.4% of the net value of all effective loans, and about 45.2% of total disbursements.

 

 

2006 Loan Commitments | 2006 Loans By Sector

Summary of Loans Extended to Member Countries

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Table (1)

Loan Commitments during 2006

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Loan Commitments by Sector, 2006
and for the Period 1974 - 2006

Loan Commitments by Sector