Arab Fund for Economic and Social Development plans allocation of $400m for Sinai projects

Abdul-Latif al-Hamad, Chairman of the Kuwait-based Arab Fund for Economic and Social Development, said Monday that AFESD agreed to discuss in its April meeting contribution to partial financing of a number of projects in Egypt’s Sinai.

The projects are part of the Egyptian government’s plan for integrated development of the peninsula.

In statements by the end of his participation in the annual economic researches forum in Cairo, Hamad said AFESD is willing to co-finance two development projects in Sinai; the first of which would be building a giant power station with some dlrs 220m, and the second a drinking water, sanitation and irrigation project with a fund estimated at dlrs 185m.

A number of other Arab funds voiced readiness to finance several mega development projects in Sinai in the fields of infrastructure, road networks and housing, Hamad added.

Egypt is one of the more committed member states to fulfill their obligations towards the AFESD in time, noted Hamad, adding that the total funds received by Egypt over the past four decades were estimated at five billion dollars, in addition to dlrs 60m of non-refundable grants.

AFESD (the Arab Fund) is an Arab regional financial institution focused on funding economic and social development by financing public and private investment projects and providing grants and expertise.

With all the Arab countries as its members and concentrating on economic and social development affecting the same countries, the Arab Fund carefully follows guidelines on neutrality in pursuing its activities and organizes itself under substantive rules to ensure independence from any political considerations when conducting in its operations.

The Arab Fund seeks to meet the development needs of member countries and at the same time ensure feasibility and transparency in all its projects.

In this context, the most important aspect of the Arab Fund's operations is to consider the priorities of the projects and the policies established by the member countries so that it does not impose any financial or economic conditions that interfere with such policies.

The loans provided by the Arab Fund to member countries are characterized as being concessional; by providing easy financing conditions to assist these countries implement their development plans.