The Republic of Yemen
Agricultural and Fisheries Development
in the Hadramout Coastal Area

Loan No.:


Interest Rate:

3.0 %


Ministry of Agriculture and Irrigation, and Ministry of Fisheries Wealth

Grace Period:

6 years

Project Cost:

KD 14.7 million


24 years

Amount of Loan:

KD 12.0 million


37 semi-annual installments

Date of Loan Agreement:


First Installment:

6 years following the first disbursement

Date of Effectiveness:




The project aims at developing and increasing the agricultural and fisheries production in the coastal area of Hadramout Governorate. This is to be achieved by improving the management of water resources and the construction of the required facilities in the existing  Al-Shahar fishing harbour. It also aims at alleviating poverty, improving the living conditions of the population in the project area and creating new employment opportunities.


The project, which is expected to be completed by the end of 2012, comprises two complementary parts: Agricultural Development and Al-Shahar Fishing Harbour.

  1. Agricultural  Development: This part includes construction of dams, introduction of modern irrigation systems, provision of effective extension and veterinary services, and provision of engineering services and technical support.
    1. Dams: This includes the construction of eight dams of different types (earth, rock fill, roll-compacted concrete and masonry) with a total storage capacity of about 19.4 million m3 and an annual safe yield of about 5.1 million m3.  It also includes the hydro-mechanical equipment and the pipelines to control and convey water to the irrigation areas.
    2. Irrigation Works: This includes all the necessary works to develop about 720 ha of agricultural land and consists of construction of water intakes and laying of 2700 km of plastic pipes for drip irrigation.
    3. Technical Services: This includes the consultancy services required for revision of the preliminary studies, preparation of detailed designs and for supervision of implementation of this part of the project.
    4. Extension: It includes the rehabilitation of the existing fruit trees nursery, the establishment of an irrigation demonstration farm and a beekeeping center with a laboratory and training facilities, the construction of three veterinary centers and the required support to the unit in charge of the sub-project implementation.
  2. Al-Shahar Fishing Harbour: This part consists of the following two major components:
  3. Civil Works and Equipment: It consists of all the civil works required for the construction of the fishing harbour including buildings, roads, water tanks and networks, sewers, a wastewater treatment plant and a fuel station. It also includes all electro-mechanical installations and equipment needed to store and freeze the produced fish at the harbour.
  4. Technical Services and Institutional Support: This includes reviewing the detailed design, preparing tender documents, providing pre-contract services and supervising the construction. In addition, it includes institutional support to the project management unit, hiring experts, procurement of equipment needed to operate and maintain the harbour, and conducting training programs needed for the local staff.


The Arab Fund’s loan covers about 81.8% of the total project cost. The beneficiary farmers will cover about 4.0% of the total cost, and the Yemeni Government will cover the remaining cost of the project and any additional cost.

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