Loans, Grants, and Technical Assistance for East and South Asia and the Pacific
Total Page：16
File Type：pdf, Size：1020Kb
Loans, Grants, and Technical Assistance For East and South Asia and the Pacific as of 31 October 2011 Tel: (+965) 22999 000 - Fax: (+965) 22999 090 P.O.Box: 2921 Safat, Kuwait 13030 www.kuwait-fund.org Kuwait Fund For Arab Economic Development The establishment of Kuwait Fund for Arab Economic Development in 1961 was an inspired decision reflecting the wisdom and great enlightment of the political leadership of the State of Kuwait for supporting developing countries in their efforts to achieve economic and social development. The Fund’s operations were confined to Arab countries up to mid 1974 when the law of the Fund was amended and its capital was increased from KD 200 million to KD 1,000 million (about US$ 3,400 million), with the scope of operations extended to include in addition to Arab countries other developing countries. Later in 1981, the Law of the Fund was further amended to increase the Fund’s capital from KD 1,000 million to KD 2,000 (about US$ 6,800 million) in response to the increasing requests for funding projects and the rise in the cost of development operations, in general. The Fund which is the first development institution in the world to be established by a developing country has been active in supporting developing countries in their development efforts over the last forty-nine years. Over the years, financing of projects has been the principal activity of Kuwait Fund. In addition to project lending operations, the Fund also extended technical assistance to help countries and institutions in capacity building to strengthen and accelerate their development efforts. Apart from those activities, the Fund, acting on behalf of the State of Kuwait, also made contributions to the resources of regional and international financing institutions, and undertook the responsibility for administering grants extended directly by the Government of the State of Kuwait to Arab and other developing states. Up until 2000, the Fund’s operations focused on financing projects in such sectors as agriculture, transport, communication, energy, industry, water and sewerage. In the following years, the Fund activities included also lending to finance projects in the health and education sectors, with the aim of reinforcing the contribution of these other sectors to the development objectives of recipients, and to help them in their efforts to achieve the targets of the Millennium Development Goals. Total loan commitments at about US$ 15.6 billion as of October 31, 2011 benefitted 102 countries, including 16 Arab countries, 40 African countries, 19 in East, South Asia and the Pacific, 16 in Central Asia and Europe, and 11 in Latin America and the Caribbean region. In addition to loans, the Fund provided financing for a variety of technical services aimed at helping recipients to carry out certain activities to facilitate the implementation of development operations. Such services include, among other things, the preparation of project feasibility studies, expert services for assisting in the planning and execution of development projects and programmes, and in training, especially for upgrading the technical skills and capacities of the staff assigned for the management and operation of projects, as deemed necessary during project appraisal. Hence training was often included as a component of the financed project. The total net value of technical assistance and grants extended by the Fund reached about US$ 368 million 2 on October 31, 2011. Apart from the aid provided directly by the Government and Kuwait Fund to developing countries, the State of Kuwait also makes contributions to the resources of a number of regional and international institutions involved in assisting developing countries in their economic and social development. Over the past years, the Fund made contributions on behalf of the State of Kuwait to the capital and replenishment of resources of some regional and international financing institutions. The cumulative value of committed contributions reached about US$ 1080 million on March 31, 2011. In certain circumstances, the Government of the State of Kuwait provides assistance in the form of grants to finance urgently needed projects including schools, hospitals, housing facilities and other social amenities especially in post-conflict situations or where countries faced consequences of natural disasters such as earthquakes, floods, and extreme drought. Such grants are normally administered and supervised by the Fund. All projects financed from the proceeds of government grants are governed by the procedures applicable to Kuwait Fund supported projects, with due consideration to the nature and objectives of the former type of projects. The total value of grants extended by the government reached around $1194 million on October 31, 2011. The beneficiaries included 12 Arab countries, 17 African countries, two Central Asian and Europian Countries,3 South East Asian and Pacific countries, one country in Latin America and the Caribbean region, and one Instiute. Recognizing the importance of advice and consultation, the Fund has since its inception availed its partners of the advisory services of its professional staff in the field of engineering, economics, finance and law. Over time, they have helped recipient countries in the various project cycle activities including, inter alia, advice on the preparation of feasibility studies, conditions of contract and tender documents, selection of consultants, contractors, and suppliers, as well as sharing with them the Fund’s experiences and lessons drawn in respect of similar operations. The advisory activities have been a major part of the daily responsibilities, duties, and tasks of the Fund’s professional staff. The Fund’s activities are guided by flexible policies, simplified procedures, and transparent practices with the aim of sparing recipients the burden of unduly rigid operational guidelines and directives. The Fund’s main concern in applying its policies and lending conditions is to ensure the timely and orderly implementation of projects and the realization of their expected benefits. Having been involved in development operations over a relatively long period, the Fund has gained considerable experience, with lessons drawn leading to the adoption and the implementation of best practices in executing development projects. In conjunction with its long standing development efforts, the Fund has over time been able to maintain close cooperation with its various development partners and contribute to the promotion of friendly relations between them and the State of Kuwait. 3 Kuwait Fund For Arab Economic Development PROFILE Amount Amount AS OF 31 October 2011 (K.D. Million) (U.S.$ Million) Capital 2000 6600 Loans Commitment 4593 15616 Total Disbursements of Loans 3813 12965 Total Repayments of Loans 2188 7439 Amount of Kuwait Fund Grants 97 330 Amount of Technical Assistant 11 38 Amount of Kuwait Government Grants 351 1194 Number of Loans 804 Number of Beneficiary Countries (Loans) 102 Number of Kuwait Fund Grants 185 Number of Technical Assistant 44 Number of Kuwait Government Grants 57 Number of Beneficiary Countries & Institution (K.F. Grants) 91 Number of Beneficiary Countries & Institution (Tech. Assistance) 32 Number of Beneficiary Countries & Institution (Kuwait Govt. Grants) 36 Sectoral Distribution of Fund Loans East,South and Pacific Countries at 31 October 2011 No.of Amount K.D Amount U.S $ Per Sector Loans (million) (million) % Transportation 56 297 1,010 33.43 % Agriculture 23 105 357 11.80% Industry 21 125 426 14.08% Energy 41 280 953 31.53% Water and Sewerage 3 17 57 1.88% Social 5 44 149 4.93% Development Banks 1 2 5 0.17% Others 3 19 66 2.18% Total 153 889 3,022 100% 4 Sectoral & Georgraphical Distribution of Loans at 31 October 2011 No. of No. of Amount Amount Countries countries Loans ( K.D. Million) ( U.S.$ Million) Arab Countries 16 306 2,515 8,552 Central, Asia and Europe Countries 16 57 291 988 Central, South and East African Countries 21 108 334 1,135 East, South Asia and the Pacific Countries 19 153 889 3,023 Latin America and the Caribbean Countries 11 39 111 378 West African Countries 19 141 453 1,540 Total 102 804 4,593 15,616 Geographical distribution of Loans (Percentage) Arab Countries 54.77 % Central Asian and Euoropean Countries 6.33 % Central, South and East African Countries 7.27 % South Asian and Pacific Counties 19.35 % Latin American and the Caribbean Countries 2.42 % West African Countries 9.86 % Sectoral Distribution of Loans (Percentage) Transportation 34.94 % Energy 26.31 % Agriculture 12.05 % Industry 7.36 % Water & Sewerage 9.36 % Communications 2.20 % Development Bank 2.93 % Social 3.85 % Others 1.00 % 5 ISLAMIC REPUBLIC OF AFGHANISTAN The Republic of Afghanistan is considered one of many countries to benefit from Kuwait Fund. In 1977 Afghanistan was granted a 29.1 million US dollars loan to provide a sugar production project. The fund also endowed a 31.1 million US dollars grant to finance a number of different projects. Basic Information Official Name : Islamic Republic of Afghanistan Area : 652,230 sq km Capital : Kabul Infant mortality rate : 103 per 1,000 live births Population density : 52.7 persons per sq km (2010) Illiteracy rate : 63.7 % Population growth rate : 2.8 % Gross domestic product : $11.76 billion (2008) Life expectancy (2009) : 48 Years Monetary unit : afghani 6 Afganistan Loans Project Agreement Loan Amt. Loan Amt. No. Name Sign Date in K.D. in U.S. $ 1 Baghlan Sugar Factory 19/06/1977 8,565,132 29,121,448 Total 8,565,132 29,121,448 Grants & Technical Assistance Project Grant Grant Amt. Grant Amt. No. Name Sign Date in K.D. in U.S. $ a. Livestock 1 07/11/1974 347,532 1,181,610 b. Farah rad a. Reconstruction of Afghanistan 2 b. Rehabilation & Reconstruction of 10/03/2002 8,904,235 30,000,000 Kandahar-Spinbldak Road Total 9,251,767 31,181,610 Projects Financed by Kuwait Fund Bahlan Sugar Factory Project: Kuwait Fund contributed $ 29.1 million US for the financing of Baghlan Sugar Factory Project.