Republic of Sudan
| Loan No: | 586 | Interest Rate: | 2.5 % |
| Beneficiary: | Industrial Development Bank (IDB) | Grace Period: | 5 years |
| Project Cost: | KD 20.0 million | Maturity: | 25 years |
| Amount of Loan: | KD 10.0 million | Repayment: | 41 semi-annual installments |
| Date of Board Approval: | - | First Installment: | 5 years following the first disbursement |
| Date of Loan Agreement: | 2013-01-02 | Date of Loan Effectiveness: | - |
Objectives:
The program aims at providing financing to industrial projects and enterprises in the private sector, which will contribute to the creation of new jobs that will help fight unemployment and reduce poverty, in addition to the substitution of imports, or the manufacture of products from local raw materials or intermediate products, in order to increase gross domestic product and value added, and provide foreign exchange.
Description:
The program consists of providing loans for selected industrial development projects through IDB. The loans will be used for acquisition of machinery, equipment, means of transportation and communication, spare parts, systems, programs and other services needed for the establishment of new projects or the expansion of existing ones in the field of manufacturing industries. The program includes loans to: an animal feed plant, an ethanol production project, a paper production project, an organic fertilizer manufacturing project, a leather tannery project, and a vegetable oil extraction project. The program also consists of improving IDB’s performance and activities through institutional support which includes consultancy services, studies, software systems and training, in addition to other tools needed
to improve performance.
Financing:
The Arab Fund’s loan covers about 50% of the total program cost, and IDB covers about 37% of that cost. The beneficiaries from the loans will contribute to the remaining program cost, and IDB will cover any additional cost that may arise.