Republic of Yemen

Rural Roads Development (Phase IV)

Loan No.:


Interest Rate:

2.5 %


Ministry of Public Works and Highways

Grace Period:

5 years

Project Cost:

KD 36.9 million


25 years

Amount of Loan:

KD 30.0 million


41 semi-annual installments

Date of Loan Agreement:


First Installment:

5 years following the first disbursement

Date of Effectiveness:



The project aims at linking remote rural areas and isolated villages with cities and towns, facilitating the residents' access to basic services and products, improving their social situation, and contributing to the reduction of poverty, through the construction, development and rehabilitation of several rural and community roads in the governorates of the Republic of Yemen, and the provision of employment opportunities through the use of national construction companies and local communities.


The project, which is expected to be completed by the end of 2018, consists of the construction of about 600 km of rural roads, of which 470 km will be paved with asphalt and 130 km of the community roads will be paved with cobblestones. The project includes all civil and structural works, and the necessary ancillary works to ensure traffic safety, in addition to the provision of technical services and institutional support to the project implementation unit in order to raise its efficiency. The project consists of the following main components:

  1. Execution of Works: This includes all civil and structural works for the construction and rehabilitation of a number of rural roads in the governorates of Yemen, for a total length of about 600 km. This consists of earth works, foundation layers of asphalt paving and cobblestones, and structural works including small bridges, drainage facilities and retaining walls, in addition to the necessary ancillary works to ensure traffic safety.
  2. Technical Services: This includes consultancy services needed to prepare the technical and economic studies, specifications, detailed designs and plans, and contract documents, as well as tender evaluation and work supervision.
  3. Institutional Support: This includes the provision of equipment and furniture for the unit, and the training of employees in the project implementation unit and on the project sites.


The Arab Fund's loan covers about 81% 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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