Egypt’s President Abdel Fattah El Sisi has issued a presidential decree approving a 5.5-million-dinar loan with the Kuwaiti Fund for Arab Economic Development.
Intended for the establishment of seawater desalination plants in Rafah and Bir el Abd, the loan was signed on November 23, 2020.
The decree was published in the state’s official gazette Al-Waqa’i’ al-Misriyya to be effective Monday, July 26, 2021.
In April 2020, North Sinai Governor Mohamed Shousha announced that construction of the largest desalination plant in Africa and the Middle East has started.
The capacity of the first phase is 100,000 cubic meters daily, and that of the second and third phases is 300,000 cubic meters per day, he added.
This loan represents the 42nd loan made by the Kuwait Fund for the financing of projects in Egypt. It has a 25 years term, with a grace period of 5 years. It is expected to be repaid in 40 semi-annual installments, the first of which will be due on the first date on which interest or other charges on the loan will fall due in accordance with the Loan Agreement, after the expiration of the said grace period.
The Loan bears interest at the rate of 1.5% per annum, in addition to a service charge of 0.5% per annum to meet administrative costs and other expenses related to the implementation of the Loan Agreement.
Kuwait Fund has previously loaned Egypt or subordinate to it on 41 occasions to finance projects in various sectors, with a total amount of about Kuwaiti Dinars 751 Million (equivalent to about US$ 2.533 Billion).