Kuwaiti fund to finance Egyptian projects with $1.5 billion

Ahram Online , Tuesday 24 Nov 2015

kuwait fund
The signing ceremony of the deal (Photo courtesy of kuwait fund)

The Kuwait Fund for Arab Economic Development has announced it is allocating $1.5 billion to finance Egyptian projects, particularly in housing, state news agency MENA reported on Monday.

The fund's money will be delivered in annual instalments of $300 million over five years, according to Abdulwahab Ahmed Al-Bader, the fund's general director. It is not yet clear whether the financing constitutes a loan or a grant.

The fund also signed a $95 million loan agreement with the Egyptian minister of international cooperation to assist in financing the Egyptian side of the power interconnection project between Egypt and Saudi Arabia, the fund said on its official website.

The loan represents 15 percent of the total cost of the Egyptian share of the project and is to be repaid over 25 years at 2.5 percent interest rate, the fund added.

Egypt's government expects to receive a total of $1.5 billion in loans from the World Bank and African Development Bank before the end of 2015.

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