Republic of Yemen

Public Works (Phase IV)

Loan No.:


Interest Rate:

2.5 %


Ministry of Planning and International Cooperation

Grace Period:

7 years

Project Cost:

KD 11.4 million


25 years

Amount of Loan:

KD 10.0 million


37 semi-annual installments

Date of Loan Agreement:


First Installment:

7 years following the first disbursement

Date of Effectiveness:



The project aims at alleviating poverty, lowering the unemployment rate, improving the living conditions in the poor and remote areas, and mitigating the negative impact of the economic and financial reform programs. The project aims, through its various phases, at achieving these goals by the promotion of local development efforts to implement and develop sub-projects in infrastructure and services in various sectors, which will contribute to the provision of permanent and temporary employment opportunities.


The project, which is expected to be completed by the end of 2018, consists of the implementation of the civil, structural, and architectural works of the sub-projects, the supply and installation of the necessary devices, equipment and furniture, the provision of the necessary consultancy services to prepare the studies, designs and tender documents, and supervision of the implementation. The project also consists of the necessary institutional support to raise the efficiency of the project management unit and other agencies contributing to the implementation, and to train their employees. The project consists of the following components:

  1. Developmental Sub-Projects: This includes the implementation and development of about 225 sub-projects in infrastructure and services in poor rural, urban and remote areas in various economic and social sectors. These sectors include education, water and sewerage, agriculture, roads and social services.
  2. Technical Services: This includes consultancy services needed to prepare the sub-project studies, designs and detailed plans, tender documents, bid analysis, and supervision.
  3. Institutional Support: This includes the implementation of the plans and programs aimed at raising the efficiency of the project management unit, the agencies contributing to the implementation of the sub-projects, the implementation offices, and the training of employees implementing the project, in addition to the development of the database, the provision of the devices and equipment, and training on the management, operation, maintenance and monitoring of projects.
  4. roject Implementation Management: This consists of the provision of all the administrative, financial and operational components necessary for the implementation of the project.


The Arab Fund's loan covers about 88% of the total project cost. The Yemeni Government will cover the remaining cost of the project and any additional cost that may arise.

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