Kuwaiti fund extends $65 million loan to Morocco

The Kuwaiti fund for Arab economic development will extend Morocco a $ 65 million loan (20 million Kuwaiti Dinars or 680 million DH) destined to co-finance the construction of a dam in the region of Midelt, some 300 KM to the south east of Rabat.

The Sidi Said Dam will contribute to the irrigation of 72,000 hectares in the Moulouya region, enable to supply drinking water to the region of Midelt, Missour and Outat El Haj, and to produce 25 megawatts of electric power. It will also help protect the Mohammed V and Mechraa Hammadi dams from floods.

The project, to cost about $ 86 million (900 million DH), will be completed over five years.

The loan will be reimbursed over 17 years with a five year grace period at an interest rate of 3.5 percent.

This loan brings up the total loans extended to Morocco by the Kuwaiti fund to $ 774 million (238 million Kuwaiti Dinar or 8.3 billion DH).

The loan agreement was initialed here Wednesday by Moroccan minister of economy, finance, tourism, and privatization, Fathallah Oualalou, and the fund's general manager, Badr El Mechari El Hamidi.

During the signing ceremony, El Hamidi announced that a delegation from the fund will shortly visit Morocco to draft an agreement on the carrying out of the Casablanca-El-Jadida highway.