AFESD loans Egypt $55 million for pipeline construction
The Arab Fund for Economic and Social Development (AFESD) has agreed to grant Egypt a 17 million Kuwaiti dinar ($55 million) soft loan for the construction of a natural gas pipeline between the border town of Al-Arish and the port city of Aqaba in Jordan, reported Al-Ahram.
Egypt will repay the loan over a 20-year period at a three percent annual interest cost. The Kuwait Fund for Arab Economic Development (KFAED) will finance the project’s remaining KD31 million ($108 million) cost.
Exporting natural gas to Jordan is part of a pact signed between the two countries in June 2001 within the framework of a major project to transport Egyptian gas to Jordan, Syria and Lebanon. The 278-kilometer-long gas pipeline will be extended for 18 kilometers under water of the Gulf of Aqaba, 850-meters down to reach the Jordanian mainland.
Established in 1974, AFESD is a multilateral Arab development corporation. Its membership consists of all states that are members of the Arab League. The Fund’s function is to assist the economic and social development of Arab countries through financing development projects, with preference given to overall Arab development and to joint Arab projects. — (menareport.com)
© 2002 Mena Report (www.menareport.com)