Morsi To Approve 3 Loan Agreements Worth US$ 500 Mln With SFD Soon

Procedures for issuing three presidential decrees are currently being conducted to approve three loan agreements worth US$ 500 million between the Egyptian government and the Saudi Development Fund to finance Egypt’s development program.

The loans will finance several development projects in Egypt.

The first loan agreement will finance the drinking water sector. SFD allocates US$ 80 million to finance a drinking water project in Nasr City which requires finance worth EGP 1028 million. Egypt aims at establishing this project so as to meet the increasing demand for drinking water in Nasr City where the population growth is expected to reach 2 million persons by 2037. The project is slated to be completely executed by mid of 2015. The cost of the loan is 2%. The loan repayment period is 15 years and will be repaid in 30 half annual payments of which the first payment will be after a grace period of five years commencing on the date of signing the definitive loan agreement.

The second loan agreement will go towards building new horizontal silos to enhance Egypt’s overall seed storage capacity and minimize storage losses. This project is part of a long-term plan to build up 50 horizontal silos in different governorates. The project, expected to be fully executed by mid of 2016, will cost EGP 1.950 billion.

The third agreement will finance new irrigation and sanitary drainage plants through the procurement and installation of new electric pumps and turbines in the newly established water plants, in order to help create a balance between the available water resources and the demand on irrigation and drainage facilities. The project, expected to be executed completely by mid of 2016, will cost EGP 960 million.