Kuwait loans Morocco $36.4 mln for dam construction

Morocco and the Kuwaiti Fund for Economic Development will sign in Rabat next Monday an agreement on a $36.45 Mln loan to finance the Arrouz dam, near the northern city of Tetuan.

The project, to be completed by end 2005, aims to supply drinking and irrigation water to the region, and alleviate the impact of floods, the Kuwaiti embassy in Rabat said Tuesday.

The Kuwaiti loan will cover 54% of the project cost estimated at $76,1 Mln.

The loan will be paid back over 23 years with a 3% interest rate.

The fund has so far extended Morocco a total of 27 loans for a total amount of $813 Mln, to finance several social-economic projects.