KFAED sign KD 23 million agreements with Bangladesh, Djibouti

KUWAIT: Kuwait Fund for Arab Economic Development (KFAED) signed two loan agreements with Bangladesh and Djibouti, totaling KD 23 million (about $78 million), for financing development projects in the two countries. The project in Bangladesh estimated at KD 15 million (about $51 million) aims to contribute to the enhancement of social and economic development projects through improving facilities in 53 areas, KFAED said in a statement on Tuesday. It includes execution works required to the urban infrastructure development containing the establishment of bridges, roads, umbrellas on roads and others, it added, expecting that the scheme is expected to end by 2021.

This is the 24th loan in its kind provided by KFAED to Bangladesh, the previous 23rd ones were estimated at KD 165 million in total (about $556 million) for financing projects in all sectors, according to the statement. Concerning the deal with Djibouti, the project seeks to set up a power plant to meet demands for electricity in order to lessen cutting of electrical services and importing of fuel and electricity, the fund added in a statement.

The plan also includes the digging of 10 wells for producing vapors and power plants empowered by thermal power.

It is the 15th loan of its kind offered by the fund as the 14th previous ones were estimated at KD 78 million (about $260 million) for financing development projects in various sectors. The first deal was signed by KFAED’s deputy director manager Hamad Al-Omar and Bangladesh’s minister of finance.

While the second agreement was inked by KFAED’s deputy director general Hesham Al-Wagayyan, and Djibouti’s minister of finance Ilyas Dawaleh and head of the establishment of geothermal production energy Kayad Ahmed. Established on December 31, 1961, the fund provides and manages financial and technical aid to Arab and developing countries, as part of Kuwait’s foreign policy which enhances its global status.