Oman signs RO 138m loan deals

MUSCAT: Two loan agreements were signed on Wednesday between the Government of the Sultanate and the Arab Fund for Economic and Social Development (AFESD) to finance several development projects in water and roads sectors. Darwish bin Ismaeel al Balushi, Minister Responsible for Financial Affairs, and Abdul Latif Yousef al Hamad, AFESD Chairman, signed the agreements. The value of the first agreement is 50 million Kuwaiti dinars (around RO 63 million) to help finance Barka-Nakhal road project (39 km) in the Governorate of South Al Batinah, in addition to 27 km service roads and Taqah-Mirbat road (36 km) in the Governorate of Dhofar, in addition to 18 km service roads.

The two projects aim to develop road transport services, absorbing the increasing traffic, reducing traffic accidents and contributing to economic and social development in areas that the two roads pass by. The second agreement worth 60 million Kuwaiti dinars (about RO 75 million) will fund water transport projects from Al Ghubrah station to Al Seeb and lines transferring water from Barka station to the Governorate of Al Dakhiliyah. The two projects aim to tackle the current deficit to meet the demand for potable water and to meet the growing future needs by building a pipeline to transfer part of water from Al Ghubrah station to the Wilayat of Seeb, building another pipeline, and strengthening the existing water pipeline to be provided by Barka station to all the wilayats of the Governorate of Al Dakhiliyah.

The project will provide potable water for many industrial, tourist and residential projects and public facilities, whether existing or under construction. The two loans will be paid back in 30 years with annual interest of 2.5 per cent. — ONA