ARAB FUND FOR ECONOMIC AND SOCIAL DEVELOPMENT

ANNUAL REPORT 2007

Post Office Box 21923 Safat 13080, , State of Kuwait

Cable Address INMARABI KUWAIT

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Telephone (965) 495 9000

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Internet Web Site www.arabfund.org

Address Arab Organizations Headquarters Building Airport Road, Shuwaikh Kuwait - State of Kuwait

Contents

Contents Page No.

Basic Information 5

Basic Financial Data as at 31/12/2007 6

Member Countries, Governors and Alternate Governors 7

Board of Directors 9

Letter of Transmittal to the Board of Governors 11

Overview 13

First Loans 15

Second Grants and Other Activities. 22

Third Financial Statements for the Financial Year Ended 31 December 2007 29

Annexes 37

Annex 1 Project Sheets for Loans Extended in the Year 2007 39

Annex 2 Capital, Resources and Status of Loans and Grants, 1972 - 2007 64

Annex 3 Summary of Loans Extended to Member Countries, 1974 - 2007 68

Annex 4 Sectoral Distribution of Loans Among Beneficiary 69 Member Countries, 1974 - 2007

Annex 5 Loans Extended to Beneficiary Member Countries, 1974 - 2007 71

Annex 6 Loans Extended to Finance Inter-Arab Projects, 1974 - 2007 84

Annex 7 Grants Committed and Disbursed, 1974 - 2007 86

Annex 8 Co-financing Activities of the Fund, 1974 - 2007 87 ANNUAL REPORT 2007 REPORT ANNUAL 3

Basic Information

Introduction guarantees to corporations and enterprises The Arab Fund for Economic and Social possessing juridical personality, and parti- Development (“the Fund”) is an autonomous cipating in their equity capital; as well as providing other forms of financing and regional Pan-Arab development financing furnishing the requisite financial, technical organization. Its membership consists of all and advisory services in accordance with such countries that are members of the League of regulations and subject to such conditions as Arab States.* may be prescribed by the Board of Directors Establishment of the Fund and of the Fund provided for in Article (22) of the Agreement. Commencement of Operations The Agreement establishing the Fund (“the 3. Forming, or participating in, the equity Agreement”) was adopted by the Economic and capital of corporations possessing juridical Social Council of the League of Arab States on personality and whose objects concern the 16 May 1968. The General Secretariat of the implementation and financing of private League of Arab States declared the Agreement sector projects in member countries, effective as of 18 December 1971. The first including the provision and financing of meeting of the Board of Governors was convened the necessary technical, consultancy and on 6 February 1972, and the Fund commenced financial services. operations in early 1974. 4. Establishing and administering special funds whose purposes are compatible with that Purpose of the Fund of the Arab Fund, and whose resources are In accordance with the Agreement, the purpose provided by the Fund or other sources. The of the Fund is to contribute to the financing constituent instruments of such special funds of economic and social development in Arab shall define their purposes and functions, countries through: and set out the regulations governing their operations and administration. 1. Financing economic and social development projects by providing loans on concessionary 5. Encouraging the investment, directly or terms to governments and public enterprises indirectly, of public and private capital in a and corporations, giving preference to manner conducive to the development of the projects deemed vital to the Arab world and Arab economy. to inter-Arab projects. 6. Providing expertise and technical assist- 2. Financing private sector projects in member ance in the various fields of economic countries by providing all forms of loans and development.

* With the exception of the Union of the . ANNUAL REPORT 2007 REPORT ANNUAL 5 Basic Financial Data as at 31/12/2007 (KD Million)

Authorized Capital 800.00

Paid-up Capital 663.04

Resources (Paid-up Capital and Reserves) 2,535.04

Cumulative Loan Commitments 5,817.73

Cumulative Loan Disbursements 3,811.33

Cumulative Loan Repayments 1,733.68

Cumulative Grant Commitments 134.98

Cumulative Grant Disbursements 100.26 ANNUAL REPORT 2007 REPORT ANNUAL 6 ARAB FUND FOR ECONOMIC AND SOCIAL DEVELOPMENT Member Countries, Governors and Alternate Governors

Member Countries (1) Governors(2) Alternate Governors(2)

The Hashemite Kingdom of H.E. Ms. Suhair Al-Ali H.E. Mr. Nasser Shraideh

The Republic of H.E. Dr. Mohamed Nouri Jouini H.E. Mr. Omar Jilani

The Algerian Democratic and People’s Republic H.E. Mr. Karim Djoudi -

The Republic of the H.E. Mr. El-Zubair Ahmed El-Hassan -

The Republic of - -

The Kingdom of H.E. Dr. Ibrahim Bin Abd-El-Aziz Al- Assaf -

The Syrian Arab Republic H.E. Dr. Mohamed Al-Hussein -

The Great Libyan Arab People’s Socialist Jamahiriya H.E. Mr. Mohamed Al-Huwaij -

The Arab Republic of H.E. Dr. Othman Mohamed Othman H.E. Ms. Fayza Aboul Naga

The Republic of H.E. Mr. Abdulkarim Al-Arhabi H.E. Dr. Mohamed Ahmed Ali Al-Hawri

The State of Kuwait H.E. Mr. Mustafa Al-Shamali -

The Republic of H.E. Mr. Nabil Adnan Al-Jisr H.E. Mr. Alain Bifani

The Kingdom of H.E. Dr. Salaheddine Mezouar H.E. Mr. Abderrazak Lazrak

The State of the H.E. Dr. Mohammed Khalfan Bin Kharbash -

The Kingdom of H.E. Sheikh Ahmed Bin Mohammed Al-Khalifa H.E. Mr. Yousif Abdulla Humood

The State of H.E. Mr. Yousef Hussain Kamal -

The Somali Democratic Republic* - -

The Islamic Republic of H.E. Mr. Abderrahmane Ould Hama Vezaz H.E. Mr. Sidi Mohamed Ould Bakha

Sultanate of Oman H.E. Mr. Ahmed Bin Abdulnabi Macki H.E. Mr. Darwish Bin Ismaeel Bin Ali Al-Bulushi

Palestine H.E. Mr. Abdulmohsen Al-Qattan H.E. Dr. Nabil Hani Al-Qaddumi

The Republic of H.E. Mr. Ali Farah Assoweh -

(1) Countries are listed according to the original list of signatories to the Agreement Establishing the Fund, and according to the date of membership.

(2) Names of Governors and Alternate Governors are given as at 31/12/2007.

*Membership suspended pursuant to Board of Governors’ Resolution No.3 of 1993. The suspension was extended annually by the Board of Governors’ Resolutions until 2007. ANNUAL REPORT 2007 REPORT ANNUAL 7

Board of Directors

Director General/Chairman of the Board of Directors Mr. Abdlatif Y. Al-Hamad

Members of the Board Mr. Ibrahim Fayez Mr. Ali Bin Mohammad Redha Bin Jaffar Dr. Ahmed Mahrous El-Darsh Mr. Benaouda Merad Mr. Abdellatif Bennani Mr. Abdulwahab Al-Bader Mr. Ayad Amer Aboufayed Mr. Yousef Ben Ibrahim Al-Bassam ANNUAL REPORT 2007 REPORT ANNUAL 9

ARAB FUND FOR ECONOMIC AND SOCIAL DEVELOPMENT

Letter of Transmittal to the Board of Governors

Dear Mr. Chairman,

Pursuant to Article (24) of the Agreement establishing the Arab Fund for Economic and Social Development, I am pleased to submit to the esteemed Board of Governors, on behalf of the Board of Directors, the 36th Annual Report, which presents the Arab Fund’s lending operations, grants and other activities during the year 2007, and its financial statements for the financial year 2007.

Please accept, Mr. Chairman, the assurances of my highest consideration and esteem.

Abdlatif Y. Al-Hamad

Director General/Chairman of the Board of Directors April 2008 ANNUAL REPORT 2007 REPORT ANNUAL 11

Overview

During 2007, the Arab Fund continued its lending projects in Lebanon and Oman, and a loan of program aimed at supporting Arab countries’ KD1 million for lease financing of small and medium- development efforts through implementation of size projects and enterprises in Mauritania. high-priority economic and social projects. The program focused primarily on infrastructure projects Cumulative loan commitments of the Arab Fund, in order to alleviate the existing deficiencies and since the commencement of its activities in 1974 provide an environment conducive to investment. and until the end of 2007, have reached about KD Priority was given to projects in the transport sector 5818 million and have contributed to approximately to develop road networks and ports, followed 27.1% of the total cost of the projects they helped by projects in the energy sector to raise power finance. Cumulative disbursements over the same generating capacity and expand transmission period amounted to about KD 3811 million, and distribution networks in Arab countries, then representing about 74.3% of the net amount of projects in the water sector to provide populations effective loans. The infrastructure sector received with this vital resource, in addition to projects in the majority of loans extended during this period, the agriculture and industry sectors. Loans were with a share reaching about 66.0% of the total, also extended to finance projects that addressed followed by the productive sectors with about urgent needs in some Arab countries. Furthermore, 22.6%, then the social services sectors with about the Arab Fund continued to allocate grants to 8.7%, and finally projects in other sectors which member countries to enhance the efficiency of received about 2.7% of the total. their institutions, undertake studies, organize conferences and seminars, as well as implement The Arab Fund also provided 35 grants during emergency programs. 2007, for a total amount of about KD 11.3 million. A large share of these grants, representing about The Arab Fund extended 16 loans in 2007 for a 44.9% of the total, was allocated to support total amount of KD 368 million. These loans were the implementation of emergency programs in used for the implementation of 12 new projects and Oman, Lebanon and Mauritania. In addition, 4 previously financed projects in 8 Arab countries, about 38.1% of the total amount of grants was for a total cost of about KD 1900 million. Two of allocated for institutional support and training, in the loans were extended for private sector projects, order to enhance the productivity of institutions in and amounted to KD 4 million. The share of loans member countries and improve the capabilities of provided to the transport and telecommunications employees. The remaining grants were allocated sector represented about 35.9% of the total loan to support general studies and research (about commitments during the year, and that of the energy 12.8% of the total amount), feasibility studies and electricity sector about 23.1%. The water and and project preparation (about 2.6%), and sewerage sector accounted for about 13.6% of the seminars and conferences (about 1.6%). Since the total amount of loans, and the productive sectors commencement of the Arab Fund’s operations and about 4.0%. The loans provided to other sectors until the end of 2007, the cumulative number of represented about 23.4% of the total amount of grants extended has reached 855 for a total amount loan commitments during the year; they included of about KD 135 million, and about 78.1% of the 2 loans amounting to KD 85 million for emergency net amount of these grants has been disbursed. ANNUAL REPORT 2007 REPORT ANNUAL 13 During 2007, the Arab Fund also continued to and publication of the Joint Arab Economic Report cooperate with other Arab and international in cooperation with the General Secretariat of the institutions in areas of interest to Arab countries. League of Arab States, the Arab Monetary Fund It pursued its duties within the Coordination and the Organization of Arab Petroleum Exporting Group which includes Arab national and regional Countries. development institutions. It maintained its cooperation and coordination activities with the According to the Arab Fund’s financial statements for Kuwait Fund for Arab Economic Development, the year ending 31/12/2007, total income was about the OPEC Fund for International Development KD 117.28 million, while total administrative expenses and the Islamic Development Bank, in relation to were about KD 5.99 million and the provision for their joint financing and monitoring of a number loans was about KD 0.14 million. Thus, the Arab of projects being implemented in several Arab Fund’s net profit for the year 2007 was approximately countries, and particularly those in Palestine which KD 111.15 million, compared to about KD 119.62 aim at providing aid to the Palestinian people. million for the year 2006. Moreover, the statements Furthermore, the Arab Fund has maintained its show that the member countries’ equity was about support and monitoring of the Arab Trade Financing KD 2535 million as at 31/12/2007, compared to Program, and its participation in the preparation about KD 2451 million at the end of 2006. ANNUAL REPORT 2007 REPORT ANNUAL 14 First: Loans

Priorities of the Lending Program for 2007 urban centers. These projects are implemented in During 2007, the Arab Fund provided increased Morocco, Mauritania, Bahrain and Tunisia. The port support to projects aimed at reinforcing Arab project aims at contributing to the economic and countries’ development efforts, and improving social development of the Wusta region in Oman. their infrastructure and social services. The lending Three other loans, amounting to KD 85 million or program for the year focused on projects that aimed about 23.1% of the total, were extended to finance at developing and improving the sectors of roads, electricity projects in Lebanon, Yemen and Jordan. energy, water, agriculture and industry, in light of These projects aim at increasing electric power the objectives of member countries to enhance the generating capacity, expanding power transmission efficiency and alleviate the existing deficiencies of and distribution networks, and rehabilitating these sectors. existing power stations. Two loans, amounting to KD 50 million or about 13.6% of the total, were Lending Activities During 2007 provided to develop water and road services in rural areas of Mauritania, and supply the city of A total of 16 loans were extended during the year Nouakchott with potable water. Furthermore, a to 8 Arab countries, for a total amount of KD 368 loan in the amount of KD 12 million, or about 3.2% million. The loans contributed to the financing of 12 new projects and 4 previously financed projects. of the total, was extended to develop agricultural The total cost of these projects was estimated at and fisheries production in the Hadramout coastal about KD 1900 million, with the loans provided area of Yemen. In addition, two loans amounting to by the Arab Fund covering about 19.4% of that KD 85 million were provided for the rehabilitation amount. Two of the loans were provided for private of the Lebanese private sector enterprises damaged sector projects, and amounted to KD 4 million. by the Israeli aggression, and the reconstruction of basic infrastructure and facilities damaged by Public sector projects: The Arab Fund extended 14 cyclone Gonu in Oman. loans during 2007 for a total amount of KD 364 million, which contributed to the implementation The Arab Fund continued to monitor the progress of 11 new and 3 previously financed public sector of ongoing projects, follow the implementation of projects. Table 1 highlights the loans approved by the conditions set forth in their loan agreements, the Arab Fund during 2007, and Annex 1 provides and take the necessary steps to ensure their proper the project sheets for these loans. completion. During 2007, 28 projects were completed; their total cost amounted to about KD The majority of loans provided by the Arab Fund 1367 million, with the Arab Fund covering about during 2007 were allocated to infrastructure 32.3% of that cost. projects, and accounted for about 72.6% of the total amount of loans. Six of these loans helped Private sector projects: The Arab Fund continued finance road and port projects, and amounted to to promote the role of the private sector in the KD 132 million which represented about 35.9% of development of Arab countries. During 2007, a the total. The road projects aim at developing and loan in the amount of KD 1 million was extended improving land transport services, enhancing the to contribute to lease financing of small and efficiency of road networks and their absorptive medium-size projects in Mauritania, and a capacity, and linking isolated rural areas to supplementary loan in the amount of KD 3 million ANNUAL REPORT 2007 REPORT ANNUAL 15 was provided for the project of the Aden Iron capital. The Arab Fund had previously contributed Factory in Yemen which had benefited from a loan to the capital of 2 private sector companies in Egypt in the amount of KD 7 million in 2006. Hence, and Saudi Arabia, for a total amount of about KD by the end of 2007, the Arab Fund had extended 3 million. A total of 8 projects are currently under 7 loans for private sector projects for a total evaluation in Yemen, Sudan, Kuwait, Lebanon, amount of KD 25 million, which helped finance Egypt, Jordan and Morocco, in the areas of 5 projects in Yemen, Bahrain and Mauritania. cement, oil, cattle breeding, real estate, tourism During 2007, the Arab Fund also contributed and education. Furthermore, several requests for to the capital of 2 private sector companies, financing private sector projects in various areas namely, Al Mukalla Iron and Steel Limited in are currently under study. Box 1 provides a brief Yemen with KD 9 million which constitutes 25% of its capital, and Al Salam Cement Company in Sudan on Arab Fund activities in financing private sector with KD 7 million which also constitutes 25% of its projects in Arab countries. ANNUAL REPORT 2007 REPORT ANNUAL 16 Box 1 Private Sector Operations

Following a decision by the Board of Governors now relies entirely on domestic labor. Moreover, to contribute to the financing of private sector implementation of the project attracted several projects in member countries according to a related small businesses to the project area and set of guidelines, the Arab Fund allocated an thereby contributed to its development. amount of U.S. Dollars 500 million, or about KD 150 million, for these operations. Through its The 5-star Movenpick hotel in Sanaa is interventions, the Arab Fund aims at supporting considered a successful project since it provided the role of the private sector in the development hotel services of international standards for the of Arab countries and contributing to the first time in Yemen. The Hotel includes 340 alleviation of the unemployment problems that rooms and suites, several conference rooms and they face. These interventions can take several restaurants, in addition to related services. The forms, including equity participation, lending, project resulted in the creation of about 300 loan guaranty and line of credit. positions for domestic labor, and multiples of The Arab Fund has contributed to the that number in related businesses. The hotel has implementation of several private sector projects started attracting conferences and international in various areas, some of which have already gatherings, in addition to tourists. started operations. One of the main projects As to the project of the Aden Steel Factory in financed is the Grain Silos and Mills Factory Yemen and that of Al Salam Cement Factory in in Yemen which helped resolve bottlenecks Sudan, they each had a major impact on the in unloading, storing and grinding grains in domestic market since they helped meet the a country that relies heavily on imports for demand for construction materials at reasonable its consumption of these commodities. The project also resulted in the creation of about prices, at a time when shortages of these materials 300 positions for domestic labor, in addition to on international markets led to sharp increases multiples of that number in activities related to in prices. Each of these projects also resulted the project. After depending on foreign labor in the creation of about 400 positions, and for up to 30% of its workforce at the start of its multiples of that number in related businesses in operations, the company which owns the project the respective countries.

Cumulative Lending Activities projects. Annex 3 presents a summary of the loans extended to member countries over the period Since the commencement of its operations in 1974-2007, and Annex 5 provides details on these 1974 and until the end of 2007, the Arab Fund has loans. extended 520 loans, for a total amount of about KD 5818 million. These loans have contributed to The sectoral distribution of loans extended by the the financing of 443 projects in 17 Arab countries, Arab Fund over the period 1974-2007 has been as and covered about 27.1% of the total cost of these follows: loans for infrastructure projects amounted ANNUAL REPORT 2007 REPORT ANNUAL 17 to about KD 3836 million, or about 66.0% of the summary of that distribution among beneficiary total amount of loans, of which about KD 1762 member countries over the same period. million for energy and electricity projects, about Inter-Arab Projects KD 1447 million for transport and telecomm- unications projects, and about KD 627 million for The Arab Fund continued its support of joint Arab water and sewerage projects. Loans for productive efforts to build basic framework and strengthen sector projects amounted to about KD 1321 means of communication and inter-connections million, or about 22.6% of the total amount, between member countries. Since the start of its of which about KD 934 million for projects in operations, the Arab Fund has extended 65 loans agriculture and rural development, and about KD for a total amount of about KD 322 million, which 387 million for projects in industry and mining. contributed to the implementation of 29 inter- Loans for projects in social services amounted to Arab projects in the areas of telecommunications, about KD 507 million, and accounted for about electricity, natural gas and international roads. Total 8.7% of the total amount. They were allocated to disbursements from these loans reached about KD finance projects in education, healthcare, housing 273 million at the end of 2007, or about 93.7% of and social development. The remaining 2.7% of total loan commitments. Annex 6 provides details the total amount of loans was provided to finance on the loans extended by the Arab Fund to finance projects in other activities. inter-Arab projects over the period 1974-2007.

In addition to financing the main components of Co-Financing Activities projects, the loans also contributed to institutional The Arab Fund also maintained its co-financing support of the entities involved and training of their of projects in Arab countries with other Arab employees in order to enhance their efficiency. national, regional and international development Table 2 shows the sectoral distribution of the loans institutions. During 2007, 4 projects were co- extended by the Arab Fund during 2007 and over financed with several institutions. Box 2 below the period 1974-2007, while Annex 4 provides a highlights the co-financing of these projects. ANNUAL REPORT 2007 REPORT ANNUAL 18 Box 2 Co-Financing of Projects During 2007

Percentage of Percentage of Project cost financing to Project cost financing to Project Financial institution Project Financial institution (KD million) project cost* (KD million) project cost* (%) (%)

Fes - Oujda 298.4 Arab Fund 10.1 Atar-Tidjikja 28.9 Arab Fund 38.1 Motorway / Morocco Road / Mauritania Kuwait Fund for Arab Kuwait Fund for Economic Development 5.0 Arab Economic 19.7 Development Islamic Development Bank 11.6 Islamic European Investment Bank 22.7 Development Bank 14.2 OPEC Fund for International Saudi Development Development 2.4 Fund 19.7 Abu Dhabi Development Fund 2.4

Nouakchott Water 107.1 Arab Fund 34.5 Replacement of Sitra 71.7 Arab Fund 26.5 Supply from the Causeway Bridge/ Islamic Development Senegal River Kuwait Fund for Arab Bahrain Bank 27.2 (Supplementary Economic Development 9.3 Loan)/ Mauritania Saudi Development Fund 8.1 Islamic Development Bank 2.6 African Development Bank 3.6 OPEC Fund for International Development 1.8

* The borrower and the Government cover the remaining share of the project cost.

During the period 1974-2007, the Arab Fund’s were disbursed to finance private sector projects. contribution to these activities reached about KD Cumulative disbursements on all loans over 2.9 billion, representing about 35.7% of the total the period 1974-2007 totaled about KD 3811 amount of co-financing of about KD 8 billion. million, including KD 22 million for private sector Annex 8 provides details on these co-financing projects. Repayments of loans in 2007 amounted activities over that period. to about KD 137 million, of which about KD 0.7 million were from the private sector. Cumulative repayments over the period 1974-2007 totaled Disbursements and Repayments about KD 1734 million, which represented about Total disbursements during 2007 amounted to 33.8% of the net amount of all effective loans and about KD 275 million, of which KD 2 million about 45.5% of cumulative disbursements. ANNUAL REPORT 2007 REPORT ANNUAL 19 Table 1 Loan Commitments during 2007

Amount Date of Country Project of Loan Signature of Loan (KD Million) Agreement

A: Public Sector Projects 1. Republic of Lebanon Rehabilitation of the Private Sector Enterprises Damaged by the Israeli Aggression 25 15/01/2007 2. Republic of Lebanon Rehabilitation of Electric Power Installations Damaged by the Israeli Aggression 35 15/01/2007 3. Kingdom of Morocco Rural Roads 15 22/01/2007 4. Sultanate of Oman Al Duqm Port 35 11/02/2007 5. Kingdom of Morocco Fes - Oujda Motorway 30 16/03/2007 6. Islamic Republic of Mauritania Atar - Tidjikja Road 11 17/03/2007 7. Islamic Republic of Mauritania Developing Water and Road Services in Rural Areas 13 17/03/2007 8. Islamic Republic of Mauritania Nouakchott Water Supply from the Senegal River (Supple- mentary Loan) 37 17/03/2007 9. Republic of Yemen Construction of a Second Ma’rib Gas-Turbine Power Generat- ing Station and the Expansion of the Transmission Grid 30 27/03/2007 10. Republic of Yemen Agricultural and Fisheries Development in the Hadramout Coastal Area 12 27/03/2007 11. Hashemite Kingdom of Jordan Al - Samra Power Generating Station (Phase II) 20 06/05/2007 12. Kingdom of Bahrain Replacement of Sitra Causeway Bridge 19 03/07/2007 13. Sultanate of Oman Reconstruction of Basic Infrastructure and Facilities Damaged by Cyclone Gonu 60 10/07/2007 14. Republic of Tunisia Regional and Rural Roads Network (Phase II) 22 19/07/2007 Subtotal 364

B: Private Sector Projects 15. Islamic Republic of Mauritania Lease Financing of Small and Medium-Size Projects and Enterprises 1 07/04/2007 16. Republic of Yemen Aden Iron Factory in Lahaj Governorate (Supplementary Loan) 3 27/05/2007 Subtotal 4 Total 368 ANNUAL REPORT 2007 REPORT ANNUAL 20 Table 2 Loan Commitments by Sector (KD Million)

2007 1974 - 2007 Sector Amount % Amount % 1. Infrastructure Sectors Transport and Telecommunications 132.00 35.9 1,446.90 24.9 Energy and Electricity 85.00 23.1 1,761.75 30.3 Water and Sewerage 50.00 13.6 627.25 10.8 Subtotal 267.00 72.6 3,835.90 66.0

2. Productive Sectors Industry and Mining 3.00 0.8 386.70 6.6 Agriculture and Rural Development 12.00 3.2 933.80 16.0 Subtotal 15.00 4.0 1,320.50 22.6

3. Social Services Sectors* - - 506.50 8.7

4. Other Sectors** 86.00 23.4 154.83 2.7

Grand Total 368.00 100.0 5,817.73 100.0

* Includes Education, Health, Housing and Social Development. ** Include Loan Commitments for Emergency Projects.

Sectoral Distribution of Loan Commitments (Percentage)

During 2007 During the Period 1974 - 2007

Transport & Telecom. 24.9% Agriculture & Rural Dev. 16.0% Transport & Telecom. 35.9% Industry & Mining 0.8% Energy & Electricity 30.3% Social Services 8.7% Energy & Electricity 23.1% Agriculture & Rural Dev. 3.2% Water & Sewerage 10.8% Other Sectors 2.7% Water & Sewerage 13.6% Other Sectors 23.4% Industry & Mining 6.6% ANNUAL REPORT 2007 REPORT ANNUAL 21 Second: Grants and Other Activities

Grants During 2007 Table 4 shows the grant commitments by activity The Arab Fund extended 35 inter-Arab and for 2007. national grants in 2007, for a total amount of about Support to Palestine: The Arab Fund continued its KD 11.3 million. These grants aimed at efforts to support the Palestinian people and limit strengthening economic and social development the deterioration of their living conditions under efforts in the Arab countries, as well as enhancing the occupation. In compliance with the decision the efficiency of their institutions and improving of the Board of Governors of the Arab Fund in its their performance. The grants included 12 inter- 2007 annual meeting to allocate 10% of its net Arab grants which amounted to about KD 1.9 income for 2006, that is KD 11.96 million, to the million, and were allocated to support activities of Palestinian people and institutions, priorities for common interest to most Arab countries. The grants the allocation of this amount were determined in also included 23 national grants which amounted coordination with the Governor of Palestine, the to about KD 9.4 million, and were provided to 13 concerned entities and participating Arab financial Arab countries. Table 3 shows the inter-Arab and institutions. These priorities included provision of national grants approved during 2007. basic services, support to Palestinian universities and educational institutions, support to charitable The majority of grants provided by the Arab Fund societies and organizations that work at providing during 2007 were for institutional support and health, education and social services, and support training, 16 were national grants amounting to to Al-Aqsa Fund and to small projects. At the end about KD 3.4 million and 5 were inter-Arab grants of 2007, the cumulative contributions of the Arab amounting to about KD 930 thousand. These grants, Fund to Palestine, in compliance with the decisions which aimed at improving the performance of of the Board of Governors to allocate 10% of its institutions and raising the quality of their services, net income for the years 2001, and 2003 through were provided for rehabilitation of specialized 2006, amounted to about KD 50.7 million. These entities and training of their employees, support of contributions were made in addition to the grants the activities of several social welfare and youth provided to Palestine under the regular grant centers, development of databases and information program of the Arab Fund, which have reached a systems, and for preservation of national heritage. total amount of about KD 25.5 million by the end Inter-Arab and national grants were also allocated of 2007. to activities that included the conduct of research in specific topics and feasibility studies for Cumulative Grants projects, as well as the organization of seminars Since the beginning of its operations and until the and conferences dealing with development issues end of 2007, the Arab Fund has provided 855 grants in Arab countries. Furthermore, 3 grants were for a total amount of about KD 135 million. They provided during the year for the implementation included 412 inter-Arab grants, amounting to about of emergency programs for a total amount of about KD 43.4 million, which were allocated as follows: KD 5.1 million; namely, the relief of cyclone KD 23.3 million to provide institutional support and Gonu effects in Oman, the reconstruction of Nahr training programs in several specialized scientific Al-Bared camp and the surrounding areas in and research centers, about KD 9.4 million to Lebanon, and the alleviation of drought effects undertake general studies and research in various and the provision of potable water in Mauritania. economic and social development areas, about ANNUAL REPORT 2007 REPORT ANNUAL 22 KD 5.9 million to conduct feasibility studies and Grant Disbursements project preparation, about KD 2.8 million to Cumulative disbursements on the total amount organize seminars and meetings to discuss priority of grants approved over the period 1974-2007 development issues for Arab countries, in addition amounted to about KD 100.3 million, which to about KD 2 million to support emergency constituted approximately 78.1% of that net programs. amount. Annex 7 provides a summary of the grants committed and disbursed over that period. During The grants provided over the same period also 2007, a total of 28 grants, amounting to about KD included 443 national grants, amounting to about 3.6 million, were completed. This brought the total KD 91.6 million, which were allocated as follows: number of grants completed during the period about KD 50.3 million for institutional support and 1974-2007 to 649, with a cumulative amount of training, about KD 14.6 million for feasibility studies about KD 78.8 million, representing about 58.4% and project preparation, about KD 4.8 million for of the total amount of grants approved over that period. general studies and research, KD 129 thousand for seminars and conferences, in addition to about Box 3 provides details on Arab Fund activities KD 21.8 million for emergency programs. aimed at supporting development in Palestine. ANNUAL REPORT 2007 REPORT ANNUAL 23 Box 3 Arab Fund Support of Development in Palestine The total amount of financing provided by the of intervention of the Arab Fund under the Arab Fund to Palestine, over the period 1974- program were determined in coordination with 2007, reached about KD 90.2 million, of which the Governor of Palestine. Interventions included about KD 76.2 million was in the form of grants support to higher education, construction of and the rest as concessionary loans. schools, provision of health services, housing repairs, infrastructure rehabilitation, support to Grants and Loans: Since the commencement non-governmental organizations and families in of its operations and until the end of 2007, need, provision of incentives to small industries, the Arab Fund has provided 169 grants to and conservation of the identity of Jerusalem. non-governmental organizations in Palestine These interventions had a significant impact which amounted to about KD 25.5 million and on the people and helped them withstand represented about 27.8% of the total amount the adverse conditions they were facing. As a of grants provided to member countries. A result, the Board of Governors of the Arab Fund number of 165 grants amounting to about KD decided to renew the support provided to the 24.7 million were executed, and disbursements Palestinian people under the urgent program on reached about 95.7% of that amount. These an annual basis and on similar terms. Thus, the grants covered most economic and social total contribution of the Arab Fund under the sectors, led by social services which accounted program amounted to about KD 50.7 million for about 73.7% of the total amount due to over the period 2002-2006. the urgent need to provide these services to Coordination of Cooperation: Within the the population, and followed by agriculture, framework of coordination of interventions industry and infrastructure. After the Palestinian of the various donor institutions in Palestine, National Authority took office in 1994, the the Arab Fund acts on their behalf in terms of Arab Fund extended 4 concessionary loans to overseeing the projects they finance. Since 1986, Palestine for a total amount of KD 14 million the Arab Fund manages grants provided by the which contributed to 4 projects in the sectors of OPEC Fund for International Development to roads, health, education and rural development. the Palestinian people. The total number of these By the end of 2007, total disbursements on grants reached 127 by the end of 2007 for a total these loans amounted to about KD 13.3 million amount of about U.S. Dollars 29.4 million, of or about 95% of their net amount, and 3 of the which about 84.0% was disbursed. The Arab projects were executed while implementation of Fund also manages a grant of U.S. Dollars the fourth one is progressing well. 25 million provided by the State of Kuwait, through the Kuwait Fund for Arab Economic The Urgent Program to Support the Palestinian Development, to finance a program to help the People: In response to the urgent needs of the Palestinian people. Part of the grant, amounting Palestinian people resulting from the deteriorated to U.S. Dollars 16.5 million, was allocated to economic and social conditions in the occupied finance 5 projects in the health sector, and the territories, the Board of Governors of the Arab remaining amount was allocated to finance 9 Fund adopted, in its meeting in Algiers in projects in the education sector. Disbursements April 2002, an urgent program to support the on the grant reached about U.S. Dollars 18.6 Palestinian people and allocated 10% of its net million by the end of 2007, or about 74.4% of income for 2001 to finance that program. Areas its amount. ANNUAL REPORT 2007 REPORT ANNUAL 24 Other Activities Organization for Economic Co-operation and Development (OECD / DAC) at its headquarters During 2007, the Arab Fund participated in in Paris. the preparation of the Joint Arab Economic Report which is published annually in The Arab Fund participated, during 2007, cooperation with the General Secretariat of in meetings of financial institutions which the League of Arab States, the Arab Monetary addressed ways to improve their role Fund and the Organization of Arab Petroleum in providing the necessary financing of Exporting Countries, and which covers the development programs and projects in main economic and social developments in Mauritania, Yemen and Palestine. The Arab Arab countries. The theme of this year’s report Fund also maintained its cooperation and was “Improving Employment Programs in coordination activities with the Kuwait Fund Arab Countries.” for Arab Economic Development, the OPEC Fund for International Development and The Arab Fund also continued to act as the the Islamic Development Bank, in relation Coordination Secretariat of the Coordination to their joint financing and monitoring of a Group which includes Arab National and number of projects being implemented in Regional Development Institutions, and several Arab countries, and particularly those organized the group’s periodic meetings and in Palestine which aim at providing aid to the those of its technical committees. The sixty- Palestinian people. Furthermore, the Arab first periodic meeting of the Group took place Fund continued its monitoring of the Arab in 2007. A high-level meeting was also Trade Financing Program in coordination with organized at the Arab Fund headquarters with the Arab Monetary Fund. It also continued the participation of international, regional and its cooperation with specialized Arab and national institutions, to discuss economic and international organizations in order to help social development issues of concern to Arab improve the efficiency of their interventions in countries, and ways to enhance cooperation Arab countries; these organizations included in dealing with those issues. In addition, the the Arab Organization for Agricultural Arab Fund took part in 2007 in meetings of Development and the International Center for the Working Party on Aid Effectiveness held by Agricultural Research in Dry Areas (ICARDA). the Development Assistance Committee of the ANNUAL REPORT 2007 REPORT ANNUAL 25 Table 3 Grants Approved during 2007 Amount No. of Date Beneficiary/Grant Allocated Board’s Approved (KD 000) Resolution by Board A: Inter-Arab Grants 1. Arab Towns Organization / The Fourteenth General Conference of the Organization (4) 30 10/2007 07/03/2007 2. Arab Planning Institute / Supporting the Programs and Activities of the Institute for 2006/2007 (2) 100 11/2007 07/03/2007 3. Harvard University / Symposium on the Environmental Effects of the Lebanese Oil Spill (4) 15 12/2007 07/03/2007 4. ICARDA / Supporting the Center’s Activities for 2007 (2) 200 13/2007 07/03/2007 5. ICARDA / Supporting the Combating of the Threat of Wheat Stem Rust in Arab Countries (3) 300 21/2007 10/04/2007 6. ERF / Supporting the Forum’s Activities and Programs (2) 300 23/2007 10/04/2007 7. Arab Urban Development Institute / Supporting the Activities of the “Poverty Alleviation in Arab Towns” Project (2) 30 39/2007 10/06/2007 8. ICARDA / Development of Biotechnology Research in Arab Countries (2008-2009) (3) 250 40/2007 10/06/2007 9. ERF / ERF’s Fourteenth Annual Conference (4) 100 41/2007 10/06/2007 10. Universal Networking Digital Foundation / Translation of the UNESCO Encyclopedia to Arabic and Four Other Languages Using the Universal Digital Language (2) 300 42/2007 10/06/2007 11. Kuwait Environment Protection Society / Small Applied Projects for Water Conservation (3) 300 57/2007 06/11/2007 12. Arab Thought Forum / Supporting the Third Youth Conference (4) 30 59/2007 06/11/2007 Subtotal 1,955 B: National Grants 1. Morocco / National Human Development Program (2) 700 6/2007 07/03/2007 2. Kuwait / Aquaculture Study of Zobaidy Fish (3) 300 7/2007 07/03/2007 3. Sudan / Institutional Support for Development of Women’s Capabilities (2) 85 9/2007 07/03/2007 4. Yemen / Study of the Rehabilitation and Widening of Sanaa-Hodeida Road Project (1) 250 18/2007 10/04/2007 5. Kuwait / Partnership in Inclusion Project of the Center for Child Evaluation and Teaching (2) 150 19/2007 10/04/2007 6. Morocco / Student Information Management System in Al Akhawayn University (2) 200 20/2007 10/04/2007 7. Saudi Arabia / Renovation of the Riyadh Literary Club Headquarters (2) 80 22/2007 10/04/2007 8. Jordan / Amman Cultural Forum (4) 4 24/2007-1 10/04/2007 9. Mauritania / Developing the Institutional Capacity of the National Agency for the Promotion of Youth Employment (2) 100 34/2007 10/06/2007 10. Egypt / Pilot Project for the Creation of a Database for the Documents Stored in the Egyptian National Archives (2) 300 35/2007 10/06/2007 11. Yemen / Rehabilitation of Al-Salam Center for the Disabled (2) 100 36/2007 10/06/2007 12. Jordan / Construction and Equipment of Women’s Health Center in the South of Jordan (2) 200 37/2007 10/06/2007 13. Yemen / Renovation and Rehabilitation of the Grand Mosque in the old Sanaa (Phase II) (2) 1,000 38/2007 10/06/2007 14. Mauritania / Alleviation of Drought Effects and Provision of Potable Water (5) 700 43/2007 10/06/2007 15. Oman / Relief of Cyclone Gonu Effects (5) 3,000 44/2007 10/06/2007 16. United Arab Emirates / Institutional Support for Rashid Center for Child Welfare-Dubai (2) 8 24/2007-2 25/10/2007 17. United Arab Emirates / Institutional Support for the Specialized Center for Special Needs - Ras Al Khaimah (2) 8 24/2007-3 25/10/2007 18. Jordan / “Youth Employment Centers” Project (2) 100 54/2007 06/11/2007 19. Tunisia / Strategic Study of the Tourism Sector in Tunisia (3) 300 55/2007 06/11/2007 20. United Arab Emirates / Institutional Support for the Emirates Center for Special Needs (2) 50 56/2007 06/11/2007 21. Lebanon / Institutional Support for the Schools of the Social Welfare Institutions (2) 100 58/2007 06/11/2007 22. Lebanon / Supporting the Reconstruction of Nahr Al-Bared Camp and the Surrounding Areas (5) 1,384 60/2007 06/11/2007 23. / Institutional Support for the National Agricultural Policy Center (2) 200 65/2007 06/11/2007 Subtotal* 9,369 Total* 11,324 (1) Feasibility Studies and Project Preparation (2) Institutional Support and Training (3) General Studies and Research (4) Seminars and Conferences (5) Emergency Programs * Includes an amount of KD 50 thousand which constitutes the increase in the amount of the grant No. 40/2005 allocated for the technical and economic feasibility

ANNUAL REPORT 2007 REPORT ANNUAL study of an additional power generation station in Nouakchott, according to the resolution of the Board of Directors No. 8/2007. 26 ** * Total* 5. Emergency Programs 4. Seminars and Conferences 3. General Studies and Research 2. Institutional Support and Training Activity 1. power generation station in Nouakchott, according to the resolution of Board Directors No. 8/2007. Includes an amount of KD 50 thousand which constitutes the increase in amount of grant No. 40/2005 allocated for the technical and economic feasibility study of an additional 2003, 2004, 2005 and 2006. Does not include an amount of about KD 50.7 million allocated by the Arab Fund Board of Governors to support the Palestinian people, representing 10% of net income earned in 2001, Feasibility Studies and Project Preparation Amount Inter-Arab Grants 1,955 175 850 930 - - 100.0 % 43.5 47.6 8.9 - - Grant Commitments by Activity Amount 300** 9,369 5,084 3,381 National Grants 600 During 2007 4 100.0 % 54.3 36.0 0.1 6.4 3.2 ) KD 000 ( Table 4 Amount 11,324 5,084 1,450 4,311 179 300 Total 100.0 % 44.9 12.8 38.1 1.6 2.6

Amount Inter-Arab Grants 43,417 23,334 2,000 2,834 9,369 5,880 100.0 % 21.6 53.8 13.5 4.6 6.5 During the Period 1974 - 2007 Amount 91,559 21,784 50,291 14,570 4,785 National Grants 129 100.0 % 23.8 54.9 15.9 0.2 5.2 134,976 Amount 23,784 14,154 73,625 20,450 2,963 Total 100.0 % 17.6 10.5 54.5 15.2 2.2 ANNUAL REPORT 2007 REPORT ANNUAL 27 Grant Commitments by Activity (Percentage)

National Grants During 2007 Inter-Arab Grants During 2007

Inst. Support & Training 36.0% Emergency Programs 54.3% Inst. Support & Training 47.6% General Studies & Research 6.4% Feasibility Studies & Project Prep. 3.2% General Studies & Research 43.5% Seminars & Conf. 0.1% Seminars & Conf. 8.9%

National Grants During the Period 1974 - 2007 Inter-Arab Grants During the Period 1974 - 2007

Feasibility Studies & Project Prep. 15.9% Seminars & Conf. 0.2% Feasibility Studies & Project Prep. 13.5% Seminars & Conf. 6.5% Inst. Support & Training 54.9% Emergency Programs 23.8% Inst. Support & Training 53.8% Emergency Programs 4.6% General Studies & Research 5.2% General Studies & Research 21.6% ANNUAL REPORT 2007 REPORT ANNUAL 28 Third: Financial Statements for the Financial Year Ended 31 December 2007

I – Financial Position II – Income and Expenditure Assets: Total assets amounted to KD 2,605 Income: Total income for the year amounted million (100%) at year end, consisting of: to KD 117.28 million (100%), consisting of KD 473 million (18%) in investments, KD KD 77.83 million (66%) interest income from loans, 2,026 million (78%) in loans, KD 48 million KD 36.98 million (32%) income from investments, (2%) in the Arab Trade Financing Program, and and KD 2.47 million (2%) from the Arab Trade KD 58 million (2%) representing the shares Financing Program, compared with a total income of the participants in the Arab Organizations of KD 126.45 million in 2006, consisting of KD Headquarters Building, other assets, cash and 74.67 million interest income from loans, KD 49.98 cash equivalents, compared with total assets of million income from investments and KD 1.80 KD 2,512 million at the end of 2006, consisting of million from the Arab Trade Financing Program. KD 517 million in investments, KD 1,888 million in loans, KD 50 million in the Arab Trade Financing Expenditure: Total administrative expenses for the Program, and KD 57 million representing the year 2007 amounted to KD 5.99 million (100%), shares of the participants in the Arab Organizations consisting of KD 4.14 million (69%) for salaries Headquarters Building, other assets, cash and cash and allowances, and KD 1.85 million (31%) for equivalents. other operating expenses, compared with KD Liabilities: Total liabilities at year end amounted 6.56 million for administrative expenses during to KD 70 million (100%), consisting of KD 28 2006, consisting of KD 4.04 million for salaries million (40%) in grants, KD 11 million in provision and allowances, and KD 2.52 million for other for employees’ pension (16%) and KD 31 million operating expenses. (44%) as other liabilities, compared with KD Net Profit: Net profit for the year reached KD 61 million in total liabilities at the end of 2006, 111.15 million (100%), after excluding provision consisting of KD 24 million in grants, KD 10 for loans amounting to KD 0.14 million. Out of million in provision for employees’ pension and that profit, KD 0.15 million was allocated to Arab KD 27 million as other liabilities. scholars, KD 5.56 million (5%) to the grants reserve, Member Countries’ Equity: As at the end of KD 11.11 million (10%) to the general reserve, 2007, shareholders equity reached KD 2,535 and the remaining KD 94.33 million (85%) to the million (100%), consisting of KD 663 million additional reserve, compared with KD 119.62 (26%) in paid-up capital, KD 1,868 million million net profit for 2006 from which KD 0.21 (74%) in capital reserves, KD 6 million in grants million was allocated to Arab scholars, KD 5.98 reserve and KD 2 million decrease in fair value million to the grants reserve, KD 11.96 million to reserve, compared with total equity of KD 2,451 the general reserve, and the remaining KD 101.47 million as at the end of 2006, consisting of million to the additional reserve. KD 663 million in paid-up capital, KD 1,777 million in capital reserves, KD 9 million in grants III – Cash Flows reserve and KD 2 million change in fair value Net cash flow provided by operating activities reserve. during the year amounted to KD 11.18 million, ANNUAL REPORT 2007 REPORT ANNUAL 29 which resulted from KD 274.53 million in loan disbursements, KD 6.54 million in grant disbursements, as well as loan repayments of KD 136.54 million and a decrease in trading investments of KD 47.38 million, compared with KD 5.10 million in net cash flow provided by operating activities during 2006 resulting from KD 281.47 million in loan disbursements, KD 7.79 million in grant disbursements, KD 306.35 million in loan repayments and KD 87.68 million increase in trading investments. Net cash used in investment activities during the year amounted to KD 11.61 million, compared with net cash from investment activities of KD 0.94 million during 2006. The net decrease in cash and cash equivalents during the year was KD 0.43 million, compared with a net increase in cash and cash equivalents of KD 6.04 million during 2006. ANNUAL REPORT 2007 REPORT ANNUAL 30 Arab Fund for Economic and Social Development Balance Sheet as at 31 December 2007 )KD 000(

2007 2006

Assets Cash and cash equivalents 25,146 25,574 Investments 473,498 516,631 Investment in associate 48,161 49,678 Loans 2,025,795 1,887,942 Receivables from participants in the building 9,097 9,443 Other assets 23,901 22,916

Total assets 2,605,598 2,512,184

Liabilities and members’ equity

Liabilities

Grants 28,112 23,454 Provision for pension fund 10,935 10,342 Other liabilities 31,511 27,260 Total liabilities 70,558 61,056

Members’ equity

Paid-up capital 663,040 663,040 General reserve 205,105 193,990 Additional reserve 1,662,788 1,583,419 Grants reserve 6,047 8,688 Change in fair value reserve (1,940) 1,991 Total members’ equity 2,535,040 2,451,128

Total liabilities and members’ equity 2,605,598 2,512,184 ANNUAL REPORT 2007 REPORT ANNUAL 31 Arab Fund for Economic and Social Development Statement of Income for the year ended 31 December 2007 )KD 000(

2007 2006

Income Interest income from loans 77,836 74,669 Net gain from investments 36,359 47,440 Interest income 651 1,940 Share in income of associate 2,469 1,795 Other income 127 726 Operating expenses (159) (120) Total income 117,283 126,450

Administrative expenses Staff costs 4,137 4,035 Other expenses 1,851 2,523

Total administrative expenses 5,988 6,558

Net profit before provision for loans 111,295 119,892 Provision for loans (138) (267)

Net profit for the year 111,157 119,625 ANNUAL REPORT 2007 REPORT ANNUAL 32 Arab Fund for Economic and Social Development Statement of Changes in Members’ Equity for the year ended 31 December 2007 )KD 000(

Change in Paid-up General Additional Grants Retained fair values Total capital reserve reserve reserve earnings reserve

Balance at 1 January 2006 663,040 182,027 1,498,210 10,489 733 - 2,354,499 Transfer to the account of supporting the Palestinian people - - (10,262) - - - (10,262) Change in fair values of available-for-sale investments - - - - 1,275 - 1,275 Transferred to profit or loss on sale - - - - (17) - (17) Net profit for the year - - - - - 119,625 119,625 Transfer to fellowship - - - - - (210) (210) Transfer to grants reserve - - (6,000) 11,981 - (5,981) - Transfer to general reserve - 11,963 - - - (11,963) - Transfer to additional reserve - - 101,471 - - (101,471) - Grants approved - - - (13,865) - - (13,865) Grants cancelled and transferred - - - 83 - - 83 Balance at 31 December 2006 663,040 193,990 1,583,419 8,688 1,991 - 2,451,128

Balance at 1 January 2007 663,040 193,990 1,583,419 8,688 1,991 - 2,451,128

Transfer to the account of supporting the Palestinian people - - (11,963) - - - (11,963) Change in fair values of available-for-sale investments - - - - (3,931) - (3,931) Transferred to profit or loss on sale ------Net profit for the year - - - - - 111,157 111,157 Transfer to fellowship - - - - - (152) (152) Transfer to grants reserve - - (3,000) 8,558 - (5,558) - Transfer to general reserve - 11,115 - - - (11,115) - Transfer to additional reserve - - 94,332 - - (94,332) - Grants approved - - - (11,324) - - (11,324) Grants cancelled and transferred - - - 125 - - 125 Balance at 31 December 2007 663,040 205,105 1,662,788 6,047 (1,940) - 2,535,040 ANNUAL REPORT 2007 REPORT ANNUAL 33 Arab Fund for Economic and Social Development Statement of Cash Flows for the year ended 31 December 2007 )KD 000(

2007 2006 Cash flows from operating activities Net profit for the year 111,157 119,625 Adjustments: Interest income from loans (77,836) (74,669) Net unrealized loss / (gain) on investments 7,267 (29,682) Interest income (651) (1,940) Share in income of associate (2,469) (1,795) Provision for loans 138 267 Provision for pension fund 1,531 1,498 39,137 13,304 Changes in operating assets and liabilities

Net change in trading investments 47,377 (87,681) Disbursement of loans (274,528) (281,470) Loan repayments 136,537 306,350 Disbursements of grants (6,541) (7,793) Receivables from participants in the building 346 (317) Other assets 70 (253) Other liabilities (7,712) (11,043) (65,314) (68,903) Interest received 77,432 75,688 Pensions and employees’ end of service indemnity paid (938) (1,683) Net cash flows from operating activities 11,180 5,102

Cash flows from investment activities

Net changes in other investments (13,029) (10) Dividends received from associate 1,421 951 Net cash (used in) / from investment activities (11,608) 941

Net (decrease) / increase in cash and cash equivalents (428) 6,043 Cash and cash equivalents at beginning of the year 25,574 19,531 Cash and cash equivalents at end of the year 25,146 25,574 ANNUAL REPORT 2007 REPORT ANNUAL 34 Arab Fund for Economic and Social Development Significant Accounting Policies a) Statement of compliance are classified as being available-for-sale and are The financial statements are prepared in stated at fair value, with any resultant gain or loss accordance with International Financial being recognized directly in equity, except for Reporting Standards promulgated by the impairment losses and, in the case of monetary International Accounting Standards Board items, foreign exchange gains and losses. (“IASB”) and the interpretations issued d) Loans by the International Financial Reporting Loans are carried at amortized cost less Interpretations’ Committee of the IASB. impairment losses. Specific provision for b) Basis of preparation impairment is established if there is objective The financial statements are prepared on a fair evidence that the Fund will not be able to collect value basis for financial assets and liabilities all amounts due. The amount of provision held for trading and available-for-sale assets, is determined as the difference between except those for which a reliable measure of fair the carrying amount and the recoverable value is not available. Other financial assets and amount of the asset. The recoverable amount liabilities and non-financial assets and liabilities is calculated as the present value of the are stated at amortized historical cost. expected future cash flows, discounted at the loan’s original effective interest rate. The accounting policies applied by the Fund are Short-term balances are not discounted. consistent with those used in the previous year. c) Investments e) Impairment Loans, other assets, investments available for Financial assets and liabilities are designated sale and investment in associated institutions at fair value through profit or loss when the are reviewed at each balance sheet date to assets or liabilities are managed, evaluated and determine whether there is objective evidence reported on a fair value basis. of impairment. All impairment losses are Financial instruments at fair value through recognized in the income statement. profit or loss are measured initially at fair value. Transaction costs on financial instruments f) Investment in associate through profit or loss are expensed immediately. Investment in associated entities are accounted Subsequent to initial recognition, all instruments for on equity basis. measured at fair value through profit or loss are measured at fair value with changes in their fair g) Fixed assets value recognized in the income statement. Fixed assets are not capitalized but are fully Investments which are not held-to-maturity or written off to the income statement in the year financial assets at fair value through profit or loss of purchase. ANNUAL REPORT 2007 REPORT ANNUAL 35 h) Provision for pension fund k) Revenue recognition Provision for the Fund’s obligation towards Interest income is recognized in the income employees’ pension is determined on the basis statement as it accrues taking into account the of contributions paid by the employees and effective yield of the asset or an applicable the Fund, in addition to a return of 10% p.a. floating rate. Interest and commission due on guaranteed by the Fund. the loans of countries with unpaid past due interest for over three months are excluded i) Foreign currencies from the income statement and only recorded Foreign currency transactions are recorded at as income when received. Fee and commission rates of exchange prevailing at the value dates income is recognized when earned. Dividend of the transactions. All monetary assets and income is recognized when the right to receive liabilities in foreign currencies are converted payment is established. Other revenues and into Kuwaiti Dinars at the rates of exchange expenses are recognized on an accrual basis. prevailing at the balance sheet date. Any resultant gains or losses are recognized in the income statement. j) Cash and cash equivalents Cash and cash equivalents, for the purpose of preparing the statement of cash flow, includes cash and short term funds with banks. ANNUAL REPORT 2007 REPORT ANNUAL 36 ANNEXES ANNUAL REPORT 2007 REPORT ANNUAL 37

Annex (1) Project Sheets for Loans Extended in the Year 2007

Annex (1) Project 1 of 14

The Republic of Lebanon Rehabilitation of Private Sector Enterprises Damaged by the Israeli Aggression

Loan No.: 505 Interest Rate: 3.0% Beneficiary: Banque du Liban Grace Period: 8 years Project Cost: KD 105.5 million Maturity: 25 years

Amount of Loan: KD 25.0 million Repayment: 35 semi-annual installments

Date of Loan Agreement: 15/01/2007 First Installment: 8 years following the first disbursement Date of Effectiveness: _

Objectives: 1. Production and Service Projects: This includes The project aims at contributing to the process of private sector projects in different economic rebuilding Lebanon and repairing the direct and sectors that were damaged directly or indirectly indirect damage caused by the Israeli aggression by the Israeli aggression in the summer of 2006. to private sector projects in the summer of 2006. The project will assist the owners of such projects The project is expected to stimulate the domestic through granting them concessionary sub-loans, economy, and help reduce the unemployment allocated by the Banque du Liban to local banks level, which increased due to the shutting down which will relend them to the targeted beneficiaries. of many private enterprises damaged by the Israeli These sub-loans will be used to rebuild the aggression. damaged enterprises, through the execution and maintenance of the civil works, acquisition Description: and maintenance of equipment, machinery, The project comprises concessionary loans to transportation vehicles, communication devices, the owners of small and medium size private spare parts, systems and programs, technical enterprises, in different economic sectors. The assistance and working capital. purpose of these loans is to help rebuild the damaged enterprises and to establish new ones as 2. Technical Assistance: This includes conducting substitute. The loans will be made through local studies, acquiring systems and programs, and banks, under the supervision of the Banque du providing experts and training for the executing Liban, and in co-operation and co-ordination with agencies and the targeted beneficiaries. the Economic and Social Fund for Development, Kafalat Company and other related institutions. Financing: The project, which is expected to be completed by The Arab Fund’s loan covers about 23.7% of the end of 2009, has two main components: the project total cost. The remaining financing is expected to be provided by the Lebanese Government and other sources of financing. ANNUAL REPORT 2007 REPORT ANNUAL 41 Annex (1) Project 2 of 14

The Republic of Lebanon Rehabilitation of Electric Power Installations Damaged by the Israeli Aggression

Loan No.: 506 Interest Rate: 4.5 % Beneficiary: Electricité du Liban Grace Period: 8 years Project Cost: KD 56.6 million Maturity: 25 years Amount of Loan: KD 35.0 million Repayment: 35 semi-annual installments

Date of Loan Agreement: 15/01/2007 First Installment: 8 years following the first disbursement Date of Effectiveness: -

Objectives: generation stations and substations in Al- Jieh, Al Zouk, Sibline, Saidon, Baalback, Sultanieh The project aims at participating in the rehabilitation and Musaileh. It will also cover rehabilitating, and expansion of electric power installations replacing and renovating power transmission damaged by the summer 2006 Israeli aggression, lines in various areas, including reinforcing and at contributing to the satisfaction of demand 66 kV substations in Eastern Lebanon. The project for electric power and energy. will also avail equipments for rehabilitating Description: distribution networks and their accessories. The project includes supply and installation of machines, equipment and spare parts needed 2. Technical Services: This includes supervision for power generating stations, substations and of project execution, studies and institutional transmission and distribution networks, in addition support. to civil works related to project scope. The project, Financing: which is expected to be completed by the end of The Arab Fund’s loan covers about 61.8% of the 2009, consists of the following components: total project cost. The Lebanese Government will cover the remaining project cost and any 1. Supply, Installation and Work Execution: It future cost that may arise, through grants, in-kind includes rehabilitating and equipping power contributions or concessionary loans. ANNUAL REPORT 2007 REPORT ANNUAL 42 Annex (1) Project 3 of 14

The Kingdom of Morocco Rural Roads

Loan No.: 503 Interest Rate: 4.5% Caisse pour le Financement Beneficiary: Grace Period: 5 years Routier Project Cost: KD 21.7 million Maturity: 22 years Amount of Loan: KD 15.0 million Repayment: 35 semi-annual installments Date of Loan Agreement: 22/01/2007 First Installment: 5 years following the first disbursement Date of Effectiveness: 13/05/2007

Objectives: rural roads, including earthwork, paving and The project, as part of the Second National Program structural works, in addition to ancillary works of Rural Roads (NPRR-2), aims at alleviating the related to traffic safety. isolation of rural areas and increasing their access to basic services, through the construction and 2. Studies and Designs: This includes providing rehabilitation of a number of rural roads, which will consultancy services to complete the preparation contribute to the improvement of living conditions of technical studies, designs and specifications and the eradication of poverty in those areas. of the project. Description: The project, which is expected to be completed by 3. Technical Control: This includes supervision the end of the first quarter of 2011, comprises the of the project execution, as well as obtaining construction and rehabilitation of about 1000km the services of specialized quality control of rural roads included in the first phase of the laboratories. NPRR-2. These roads represent about 12.6% of the first phase and about 6.4% of the NPRR-2 Financing: as a whole. The project consists of the following The Arab Fund’s loan covers about 69.1% of the components: total project cost. The Moroccan Government will cover the remaining cost. 1. Execution of Works: This includes all necessary civil works to construct and rehabilitate the ANNUAL REPORT 2007 REPORT ANNUAL 43 Annex (1) Project 4 of 14

Sultanate of Oman Al Duqm Port

Loan No.: 501 Interest Rate: 4.5% Ministry of Transport & Com- Beneficiary: Grace Period: 4 years munication Project Cost: KD 297.3 million Maturity: 22 years Amount of Loan: KD 35.0 million Repayment: 37 semi-annual installments Date of Loan Agreement: 11/02/2007 First Installment: 4 years following the first disbursement Date of Effectiveness: 20/03/2007

Objectives: The project aims at contributing to the economic 2. Breakwaters: This component includes the and social development of the Wusta region of the construction of a large breakwater 2700 m Sultanate of Oman and securing job opportunities long to protect ships in the port, and a smaller for its population. This will be achieved through secondary breakwater. the construction of a new port in Al Duqm district between Sultan Qaboos and Salalah ports. The 3. Pavement Works: This component consists of project also aims at improving the economy through building a 700 m long commercial quay to the construction of a dry dock and development of accommodate three commercial berths, and industries associated with the port activities. a 330m long government quay for the use of the marine and the coast guard forces. It also includes providing the commercial quay Description: with the crane rails, the paving works and all The project, which is expected to be completed by mechanical and electrical works necessary for the third quarter of 2010, includes all necessary the port operations. works to construct a new port and dry dock, and provide the required equipment to operate the port. The main components of the project are as 4. Infrastructure Works: This component includes follows: all works needed to provide the port requirements of buildings, workshops, warehouses, various utility networks, access roads connecting the 1. Dredging: This component consists of dredging port with the town centre, in addition to fuel the port basin and the entrance channel to storage. a depth of 16 m and 17 m, respectively. The dredging materials will be used to reclaim sea area to provide land space necessary for 5. Dry Dock: This component consists of all civil container warehousing, related activities and works necessary for building the dry dock future port development. including the provision of floating docks, a ANNUAL REPORT 2007 REPORT ANNUAL 44 gas station, coast protection, a weighbridge, Financing: drainage and sewage treatment systems, in The Arab Fund’s loan covers about 11.8% of the addition to buildings, and water and electricity total cost of the project. The Government of Oman services required for the operation of the yard. and the local and international private sector will cover the remaining part of the project cost, and 6. Equipment: This component includes the any additional cost that might arise during the acquisition of all land and marine equipment implementation period. necessary for the operation of the port and the dry dock.

7. Consultancy Services: This component comprises the consultancy services required to prepare the project studies, the design and the tender documents. It also includes assisting in the supervision of the execution of the project. ANNUAL REPORT 2007 REPORT ANNUAL 45 Annex (1) Project 5 of 14

The Kingdom of Morocco Fes – Oujda Motorway

Loan No.: 512 Interest Rate: 4.5 % Société Nationale des Beneficiary: Grace Period: 5 years Autoroutes du Maroc Project Cost: KD 298.4 million Maturity: 22 years Amount of Loan: KD 30.0 million Repayment: 35 semi-annual installments Date of Loan Agreement: 16/03/2007 First Installment: 5 years following the first disbursement Date of Effectiveness: 11/07/2007

Objectives: 1. Motorway Construction: This includes civil The project aims at improving land transportation works related to the construction of the services on the road network to accommodate motorway, drainage works, construction of over- the rapidly growing road traffic and reduce traffic passes and under-passes, as well as construction accidents. This project also contributes to the of main bridges over the valleys. economic and social development of the north eastern regions of Morocco, and it links Arab 2. Ancillary Works: This includes traffic lights Maghreb countries, as it is part of the Arab Maghreb and other safety equipment, maintenance Union Motorway. workshops, toll stations, and related equipment. It also includes extending and restoring the services affected by the project such as water Description: pipelines, telephone and electricity lines, in The project comprises the construction of the addition to building fences along the sides of motorway between Fes and Oujda. The total length the road. of this motorway is approximately 328 km, and is divided into two main sections. The first section 3. Project Management: This includes setting is Fes-Taza with a length of about 127 km, and up a project implementation unit to manage the second section is Taza-Oujda with a length of the project execution, providing consultancy about 201 km. The project, which is expected to services to assist in project supervision and be completed by the end of the third quarter of implementation of the technical aspects of the 2010, consists of the following elements: project, as well as obtaining the services of specialized quality control laboratories. ANNUAL REPORT 2007 REPORT ANNUAL 46 Financing: The Arab Fund’s loan covers about 10.1% of the total project cost. The Kuwait Fund, the Islamic Bank, the European Investment Bank, the OPEC Fund, and the Abu Dhabi Fund will provide additional funding in the amounts of KD 15.0 million, KD 34.6 million, KD 67.7 million, KD 7.2 million, and KD 7.2 million, respectively . The borrower, Société Nationale des Autoroutes du Maroc, and the Moroccan Government will cover the remaining cost and any additional cost that might arise. ANNUAL REPORT 2007 REPORT ANNUAL 47 Annex (1) Project 6 of 14

The Islamic Republic of Mauritania Atar – Tidjikja Road

Loan No.: 509 Interest Rate: 3.0% Beneficiary: Ministry of Equipment & Grace Period: 5 years Transport Project Cost: KD 28.9 million Maturity: 25 years

Amount of Loan: KD 11.0 million Repayment: 41 semi-annual installments Date of Loan Agreement: 17/03/2007 First Installment: 5 years following the first disbursement Date of Effectiveness: 26/05/2007

Objectives: road. The works include earthwork (cut and The project aims at supporting the economic fill), preparing the sub-grade and subsequent and social development in Mauritania through pavement layers, constructing water culverts, upgrading the national road network and securing side drainage structure and ancillary works an internal corridor to improve communication needed for proper traffic movement, in addition between the cities of Atar and Tidjikja. The project to protecting the road from sand. also aims at linking the national network with the neighboring networks. The project will contribute 2. Consultancy Services: This component towards the development of the region through comprises the consultancy services required which the road passes and provide the necessary for the study and design of the project, the services to its inhabitants. preparation of tender documents, the analysis of submitted bids, the supervision of the execution of the project and any revisions to the project Description: documents if needed. The project, which is expected to be completed by the beginning of 2011, consists of a 2-lane two- 3. Supporting Maintenance Works: This includes way single carriageway with 3.5 m lane width and the provision of some equipment and spare 1.5 m shoulder width. The total length of the road parts necessary for road maintenance. connecting the cities of Atar and Tidjikja is about 340 km long, in addition to about 30 km of service roads leading to the neighboring villages. The main 4. Institutional Support: This includes the components of the project may be summarized as acquisition of equipment required to enable the follows: Ministry of Equipment and Transport to follow up and administer the project, as well as the provision of necessary training of employees. 1. Civil Works: This component consists of the civil and structural works required for the construction of the different sections of the ANNUAL REPORT 2007 REPORT ANNUAL 48 Financing: The Arab Fund’s loan covers about 38.1% of the total cost of the project. The Kuwait Fund will provide a loan of about KD 5.7 million, the Islamic Development Bank will provide a loan of about KD 4.1 million, and the Saudi Fund will provide a loan of about KD 5.7 million. The Government of Mauritania will cover the remaining cost of the project and any additional cost that might arise during implementation. ANNUAL REPORT 2007 REPORT ANNUAL 49 Annex (1) Project 7 of 14

The Islamic Republic of Mauritania Developing Water and Road Services in Rural Areas

Loan No.: 510 Interest Rate: 3.0% Ministry of Economic Affairs and Beneficiary: Grace Period: 6 years Development Project Cost: KD 14.8 million Maturity: 25 years Amount of Loan: KD 13.0 million Repayment: 39 semi-annual installments

Date of Loan Agreement: 17/03/2007 6 years following the first First Installment: Date of Effectiveness: 26/05/2007 disbursement

Objectives: 1. Components of the Program of the Universal The project aims at reducing poverty and Access to Basic Services: They include works unemployment, and improving the living related to drinking water and the rehabilitation conditions of the population in remote rural areas. of several rural roads in the governorates of This will be achieved through the development Hodh Charghi, Hodh Gharbi, Assaba, Gorgol, of water resources for drinking and agricultural Guidimagha, Trarza, Adrar, Tagant and other purposes, as well as the reduction of the isolation areas. These components include: of many areas through the construction of rural a. Deep Wells and Drinking Water Networks: This roads. The project includes a major part of the includes digging and equipping about 53 wells works related to drinking water and rural roads whose depths vary between 40 and 50 meters, incorporated in both the Program of the Universal and equipping about 31 wells with solar- Access to Basic Services and the Program of the based and electric water pumps. In addition, it Sustainable Development of the Oases, in addition includes the installation of 154 km of pipelines to the construction of small dams and wells. whose diameters vary between 90 and 150 mm, the construction of 44 water reservoirs whose capacities vary between 20 and 100 Description: cubic meters, the laying of 190 km-long water The project, expected to be implemented by distribution networks whose diameters vary the end of 2010, includes the acquisition of the between 60 and 110 mm, and the installation of equipment for drinking water and small irrigation about 3000 household extensions, 110 public networks, the construction of water dikes, the fountains and 30 livestock water basins. construction and rehabilitation of small dams, and the construction of several rural roads, in addition to b. Rural Roads: This includes the construction and the provision of technical and consultancy services rehabilitation of about 110 km of rural roads. and institutional support for the recipient parties This component includes earthwork and other supervising the implementation of the project. The related civil works. main components of the project include: ANNUAL REPORT 2007 REPORT ANNUAL 50 2. Components of the Program of the Sustainable 8 additional dams, with a height ranging Development of the Oases: They include the between 1 and 3 meters, and a length ranging digging and equipping of wells, the installation between 200 and 1200 meters, in addition to of public drinking fountains, construction of the construction of 27 water dikes, with lengths livestock water basins, installation of small ranging between 180 and 500 meters and a irrigation networks, construction of small dams width of about 8 meters. and water reservoirs, and the construction and rehabilitation of several rural roads. These c. Rural Roads: This includes the construction components will be implemented in the and the rehabilitation of rural roads, with a governorates of Hodh Charghi, Hodh Gharbi, total length of 45 km. This component includes Adrar, Assaba and Tagant. They include: earthworks and other related civil works. a. Wells, Basins, Public Fountains, and Irrigation 3. Technical Services: It includes the provision of Networks: This includes the digging of 150 technical and consultancy services needed for shallow wells, with a depth of about 10 meters the preparation of studies and execution plans, and their equipment with solar-based water design and implementation of the project, pumps, construction of 10 cubic meter water preparation of the tender documents and reservoirs installed on each well, installation of assistance in bid evaluation. public drinking fountains and livestock water basins, in addition to equipping the 500 existing 4. Institutional Support: It includes the provision shallow wells with solar-based water pumps and of the necessary equipment and vehicles for the connecting each to a small irrigation network supervision of the project implementation. mainly through 300 meter-long plastic pipes, and through secondary pipes for drip-based Financing: irrigation. The Arab Fund’s loan covers about 87.8% of the total project cost. The Mauritanian Government b. Rehabilitation and Construction of Small Dams will cover the remaining cost of the project and and Water Dikes: This includes the rehabilitation any additional cost that might arise. of 6 existing dams and the construction of ANNUAL REPORT 2007 REPORT ANNUAL 51 Annex (1) Project 8 of 14

The Islamic Republic of Mauritania Nouakchott Water Supply from the Senegal River )Supplementary Loan(

Loan No.: 511 Interest Rate: 3.0%

Beneficiary: National Water Company Grace Period: 6 years Project cost: KD 107.1 million Maturity: 25 years Amount of Loan : KD 37.0 million Repayment: 39 semi-annual installments Date of Loan Agreement: 17/3/2007 First Installment: 6 years following the first disbursement Date of Effectiveness: 26/5/2007

Objectives: 1. Water Intake and Pumping Stations: This The project aims at using the Mauritanian water includes the equipment of the exiting water share from the Senegal river to eliminate the deficit intake on the Senegal river (Aftout intake), and in potable water supply of Nouakchott and to meet the construction of a pumping station near 3 its future demand up to the year 2030. The project the intake with a nominal capacity of 1.8 m /s will also help improve the standard of living and and a head of 24 meters, a pumping station at health conditions of the population of Nouakchott, Beni Neji village with a nominal capacity of 3 and will provide potable water for the villages 1.8 m /s and a head of 140 meters, and another and cities along the main conveyer between the pumping station at Nouakchott with a nominal 3 Senegal river and Nouakchott. The loan will cover capacity of 1.6 m /s and a head of 40 meters. It the gap in financing the initial project (loan No. also includes the construction of electrical lines 454/2003) due essentially to the increase in the with a total length of about 74 km to supply price of the ductile iron pipes and the appreciation the pumping stations and treatment plants with of the Euro. electrical power.

2. Treatment Plants: This includes the construction Description: of a preliminary treatment plant at Beni Neji with The project, which is expected to be completed a nominal capacity of 170 thousand m3/day, a by the year 2010, includes the construction of filtration plant at Nouakchott with a capacity of pumping stations, treatment plants and reservoirs, 150 thousand m3/day, and two reservoirs for the laying of transmission pipelines, land acquisition, regulation of water at the preliminary treatment consultancy services and institutional support for plant with a capacity of 3000 m3 each. the National Water Company which will be in charge of the implementation and management of 3. Transmission Pipelines from the Intake to the the project. The project consists of the following Collecting Reservoir of Nouakchott: This includes main components: the laying of two parallel pipelines between the ANNUAL REPORT 2007 REPORT ANNUAL 52 raw water pumping station and the preliminary 6. Technical Services: This includes necessary water treatment plant at Beni Neji with a consultancy services to prepare studies, detailed length of about 6 km and a nominal diameter design of the project and tender documents, of 1100 mm for each pipeline, and laying of a and to perform the required supervision during main pipeline between the pumping station of project implementation. Beni Neji and the collecting reservoir located at Nouakchott with a total length of about 169 km 7. Institutional Support: This includes the services and a nominal diameter of 1400 mm. of a consulting firm specialized in project management to provide support to the unit in 4. Collecting Reservoir of Nouakchott: This charge of the project implementation, and the includes the construction of a concrete reservoir provision of necessary equipment, computers located near the filtration plant at Nouakchott and vehicules to this unit. with a capacity of 129 thousand m3 which will be supplied by the main pipeline. Financing: The initial loan (No. 454/2003) and the present loan 5. Potable Water Transmission Pipeline and cover about 62.6% of the total project cost. The Storage Reservoir: This includes the laying of following funding agencies will also contribute to a transmission pipeline between the filtered the financing of the project as follows: the Kuwait water pumping station and the existing storage Fund with a loan of KD 10 million, the Saudi Fund reservoir of Nouakchott with a total length with a loan equivalent to KD 8.7 million, the Islamic of about 19 km and a nominal diameter of Bank with a loan equivalent to KD 2.8 million, the 1200mm, and the construction of an additional African Development Bank with a loan equivalent storage reservoir at Nouakchott with a capacity to KD 3.8 million, and the OPEC Fund with a loan of 5000 m3. equivalent to KD 1.9 million. The Government of Mauritania will cover the remaining cost of the project and any increase in cost. ANNUAL REPORT 2007 REPORT ANNUAL 53 Annex (1) Project 9 of 14

The Republic of Yemen Construction of a Second Ma’rib Gas-Turbine Power Generating Station and the Expansion of the Transmission Grid

Loan No.: 502 Interest Rate: 3.0 % Beneficiary: Public Electricity Corporation Grace Period 5 years (PEC) Project Cost: KD 95.9 million Maturity: 25 years Amount of Loan: KD 30.0 million Repayment: 41 semi-annual installments Date of Loan 27/03/2007 5 years following the first Agreement: First Installment: disbursement Date of Effectiveness: -

Objectives: components: The project aims at satisfying the increasing 1. Power Generating Station: This includes the demand for electricity in the Republic of Yemen. supply and installation of four gas turbines, This will be accomplished through the construction each rated at 100 MW and using natural gas of a second gas-turbine power generating station as primary fuel, four electrical generators each to be located adjacent to the first gas-turbine rated at 125 MVA, four 15/400 kV transformers power generating station being constructed in Safir each rated at 125 MVA, along with the execution area in the Governorate of Maarib, along with the of all required civil, mechanical and electrical expansion of the transmission grid in order to allow works. it to evacuate the additional power and energy generated from the new generating station. 2. Expansion of the Switchyard: This includes the expansion of the 400 kV switchyard, which is being constructed as part of the first power Description: generating station, through the addition of six The project includes the supply and installation of new bays, including all their necessary control, a 400 MW gas-turbine power generating station protection and communications equipment. using natural gas, available at the project area, as primary fuel, and light fuel as a backup fuel. It also includes connecting the generating station with 3. Expansion of the Transmission Network: the electrical grid in Yemen through the expansion This includes the construction of new 132 kV of the 400 kV switchyard that is being built as transmission lines, the construction of two new part of the first station. The project also comprises 132/33 kV substations, and the expansion of the the construction of new transmission lines and existing 132/33 kV Dhamar substation. substations and the expansion of an existing substation, along with the provision of necessary 4. Consultancy Services: This includes assisting consulting services and institutional support. PEC during tender evaluation, reviewing The project, which is expected to be completed construction drawings, supervising project

ANNUAL REPORT 2007 REPORT ANNUAL by the end of 2010, includes the following main 54 implementation, and participating in witness testing and acceptance tests for major project components. 5. Institutional Support: This includes the acquisition of systems, programs and equipment, along with consultancy services needed to enhance the performance of PEC and its employees.

Financing: The Arab Fund’s loan covers around 31.3% of the total project cost. The Yemeni Government will cover the remaining project cost and any additional cost that might arise. ANNUAL REPORT 2007 REPORT ANNUAL 55 Annex (1) Project 10 of 14

The Republic of Yemen Agricultural and Fisheries Development in the Hadramout Coastal Area

Loan No.: 508 Interest Rate: 3.0 % Ministry of Agriculture and Beneficiary: Irrigation, and Ministry of Grace Period: 6 years Fisheries Wealth Project Cost: KD 14.7 million Maturity: 24 years Amount of Loan: KD 12.0 million Repayment: 37 semi-annual installments Date of Loan 27/03/2007 Agreement: First Installment: 6 years following the first disbursement Date of Effectiveness: 25/10/2007

dams of different types (earth, rock fill, roll- compacted concrete and masonry) with a total Objectives: storage capacity of about 19.4 million m3 and The project aims at developing and increasing the an annual safe yield of about 5.1 million m3. It agricultural and fisheries production in the coastal also includes the hydro-mechanical equipment area of Hadramout Governorate. This is to be and the pipelines to control and convey water achieved by improving the management of water to the irrigation areas. resources and constructing the required facilities in the existing Al-Shahar fishing harbour. It also b. Irrigation Works: This includes all the necessary aims at alleviating poverty, improving the living works to develop about 720 ha of agricultural conditions of the population in the project area land, and consists of construction of water and creating new employment opportunities. intakes and laying of 2700 km of plastic pipes for drip irrigation.

Description: c. Technical Services: This includes the consultancy services required for revision of the preliminary The project, which is expected to be completed by studies, preparation of detailed designs and the end of 2012, comprises two complementary supervision of implementation of this part of the parts: Agricultural Development and Al-Shahar project. Fishing Harbour. d. Extension: It includes the rehabilitation of the 1. Agricultural Development: This part includes existing fruit trees nursery, the establishment construction of dams, introduction of modern of an irrigation demonstration farm and a irrigation systems, provision of effective beekeeping center with a laboratory and training extension and veterinary services, and provision facilities, the construction of three extension of engineering services and technical support. and three veterinary centers, and the provision of the required support to the unit in charge of a. Dams: This includes the construction of eight implementation of this part of the project. ANNUAL REPORT 2007 REPORT ANNUAL 56 2. Al-Shahar Fishing Harbour: This part consists of the following two major components: a. Civil Works and Equipment: It consists of all the civil works required for the construction of the fishing harbour including buildings, roads, water tanks and networks, sewers, a wastewater treatment plant and a fuel station. It also includes all electro-mechanical installations and equipment needed to store and freeze the produced fish at the harbour. b. Technical Services and Institutional Support: This includes reviewing the detailed design, preparing tender documents, providing pre-contract services and supervising the construction. In addition, it includes providing institutional support to the project management unit, hiring experts, procuring equipment needed to operate and maintain the harbour, and conducting training programs needed for the local staff. Financing: The Arab Fund’s loan covers about 81.6% of the total project cost. The beneficiary farmers will cover about 4.0% of the total cost, and the Yemeni Government will cover the remaining cost of the project and any additional cost. ANNUAL REPORT 2007 REPORT ANNUAL 57 Annex (1) Project 11 of 14

The Hashemite Kingdom of Jordan Al – Samra Power Generating Station (Phase II)

Loan No.: 515 Interest Rate: 4.5 % Al-Samra Electric Power Gener- Beneficiary: Grace Period 5 years ating Company Project Cost: KD 34.9 million Maturity: 22 years Amount of Loan: KD 20.0 million Repayment: 35 semi-annual installments Date of Loan 06/05/2007 Agreement: First Installment: 5 years following the first disbursement Date of Effectiveness: 05/06/2007

Objectives: at around 100MW and using natural gas as The project aims at satisfying the increasing primary fuel, two generators, and two 15/400 demand for electric power and energy in the kV power transformers, each rated at about 150 Kingdom, through the expansion of the Al-Samra MVA. This component also includes the supply Power Generating Station, located in the Al-Zarqaa of necessary spare parts and the execution of all Governorate, around 35 km to the East of the capital necessary mechanical and electrical works. city of Amman. The project will lead to an increase in the installed capacity of the station, originally 2. Consultancy Services: This includes providing financed by Arab Fund Loan No. 462/2004, from all consultancy services required to prepare around 300 MW to 500 MW. design drawings, assist in the tendering process, perform project supervision, participate in witness testing and preliminary acceptance of Description: equipment included in the project. The project, which is expected to be completed by the end of the first half of 2008, consists of the following main components: Financing: The Arab Fund’s loan covers around 57.3% of 1. Station Expansion Works: This includes leveling the total project cost. The Al-Samra Generating of land in the project site, execution of all other Company will cover the remaining project cost required civil works, in addition to the supply and any additional future cost. and installation of two gas turbines, each rated ANNUAL REPORT 2007 REPORT ANNUAL 58 Annex (1) Project 12 of 14

The Kingdom of Bahrain Replacement of Sitra Causeway Bridge

Loan No.: 504 Interest Rate: 4.5 % Ministry of Works and Beneficiary: Grace Period: 4 years Housing Project Cost: KD 71.7 million Maturity: 22 years Amount of Loan: KD 19.0 million Repayment: 37 semi-annual installments Date of Loan Agreement: 03/07/2007 First Installment: 4 years following the first disbursement Date of Effectiveness: -

Objectives: and southern marine bridges and Umm Al- The project aims at accommodating the increased Hassam intersection. transport demand between the Capital Manama and Sitra island, and enhancing the road infrastructure 2. Umm Al-Hassam Interchange: This comprises network in Bahrain. The project is expected to all civil works needed for the execution of the contribute towards increasing traffic safety and three levels of the intersection. These include efficiency, and reducing travel time and cost. earthworks, drainage, retaining walls, concrete and steel works, and all necessary ancillary works. Description: The project involves the construction of a new 3. Dredging and Reclamation: This includes causeway 3.5 km long and 16 m wide. It also dredging and reclamation works, in addition to includes upgrading Umm Al-Hassam intersection testing of the soil that is to be used for to be three-fold grade-separated with free flow an embankment of about 2.3 km length and for the main traffic directions, in addition to the 110 m -180 m width. provision of the related utilities and facilities, and the necessary consultancy services. The project, which is expected to be completed by the end of 4. Causeway Bridges: This component comprises the first quarter of 2010, consists of the following the works needed to build a northern bridge about components: 200 m long and a southern bridge about 400 m long. These works include rainwater drainage, earthworks, concrete and steel works, supports 1. Preliminaries: This component comprises and retaining walls and expansion joints. preparation of contractual documents, erection of site offices, laboratories, workshops and warehouses, in addition to the temporary works 5. Causeway Road Works: This includes demolition needed during the construction of the northern and site clearance, earth excavation and filling, ANNUAL REPORT 2007 REPORT ANNUAL 59 and construction of pavement layers and other 8. Consultancy Services: This includes providing works necessary to build a road about 2.3 km technical services required for the preparation long over the embankment. It also includes all of project studies, design and tender documents, ancillary works necessary for building the road as well as assisting in the analysis of submitted such as road safety features, irrigation system bids and supervision of project execution. and vegetation.

9. Expropriation: This includes land acquisition 6. Utilities and Services: This comprises the and property compensation necessary for provision, relocation and upgrading of various project implementation. networks including electrical, water, gas, drainage, sewage, telephone and lighting networks and other works. Financing: The Arab Fund’s loan covers about 26.5% of the total cost of the project. The Islamic Development 7. Replanning and Provision of Utilities: This Bank will contribute the equivalent of KD 19.5 component includes the replanning of the million (about 27.2% of the total cost). The industrial area at Salman port, in addition to the Government of Bahrain will cover the remaining provision of water, electricity and other services cost of the project and any additional cost that during project implementation. might arise during the implementation period. ANNUAL REPORT 2007 REPORT ANNUAL 60 Annex (1) Project 13 of 14

Sultanate of Oman Reconstruction of Basic Infrastructure and Facilities Damaged by Cyclone Gonu

Loan No.: 519 Interest Rate: 4.5% Government of the Sultanate Beneficiary: Grace Period: 5 years of Oman Project Cost: KD 721.0 million Maturity: 22 years Amount of Loan: KD 60.0 million Repayment: 35 semi-annual installments Date of Loan Agreement: 10/07/2007 First Installment: 5 years following the first disbursement Date of Effectiveness: 06/09/2007

Objectives: The project aims at contributing to the on-going efforts to repair the damages caused by the tropical cyclone Gonu in the Sultanate of Oman, through the reconstruction of the basic infrastructure and facilities that were damaged in the different sectors of the economy. This contribution will be determined in light of the agreement that will be reached between the Arab Fund and the Government of Oman.

Description: The project includes the implementation of all relevant civil, mechanical and electrical works, in addition to the acquisition of necessary equipment and the provision of consultancy and technical services related to the reconstruction of basic infrastructure and facilities, both public and private.

Financing: The Arab Fund’s loan covers about 8.3% of the total project cost. The Government of Oman will cover the remaining cost. ANNUAL REPORT 2007 REPORT ANNUAL 61 Annex (1) Project 14 of 14

The Republic of Tunisia Regional and Rural Roads Network (Phase lI)

Loan No.: 518 Interest Rate: 4.5%

Ministry of Equipment, Hous- Beneficiary: Grace Period: 5 years ing and Territory Development

Project Cost: KD 28.9 million Maturity: 22 years Amount of Loan: KD 22.0 million Repayment: 35 semi-annual installments

Date of Loan Agreement: 19/07/2007 First Installment: 5 years following the first disbursement Date of Effectiveness: -

Objectives: of about 145 km, widths ranging between 7 m The project aims at linking the rural areas to and 8 m, shoulders from 1.5 m to 2.5 m, and towns and cities through the construction and asphalt thickness of 2 cm. This also includes rehabilitation of a number of regional and rural water drainage structures and other ancillary roads, in order to increase the safety on the roads, works. and to facilitate land transportation between the agricultural and industrial areas. 2. Construction of Rural Roads: This includes the necessary civil works to construct and improve Description: 48 rural roads with a length of about 537 km, The project consists of two main elements: the of which 192 km are asphalt pavement, and the first element involves the development and remaining are made of a well-compacted mix strengthening of 145 km of the classified regional of crushed stone and sand. This also includes road network, and the second element consists water drainage structures and other civil works. of the improvement and construction of about 48 rural roads, with a total length of 537 km. The 3. Institutional Support: It includes the support project execution is expected to start during the of the Ministry by providing the equipment third quarter of 2007 and be completed by the required to conduct the necessary maintenance end of the first quarter of 2010. The project’s main for the rural roads, and providing the Ministry components include: with computers.

1. Development of the Regional Road Network: It 4. Consultancy Services: It includes assisting includes the rehabilitation and the strengthening the Ministry in the preparation of technical of about 7 important segments in several studies, design and tender documents, and the governorates. These segments have a total length supervision of the project. ANNUAL REPORT 2007 REPORT ANNUAL 62 Financing: The Arab Fund’s loan covers about 76.1% of the total project cost. The Tunisian Government will cover the remaining cost of the project and any additional cost that might arise. ANNUAL REPORT 2007 REPORT ANNUAL 63 Annex (2) Page 1 of 2

Capital, Resources and Status of Loans and Grants, 1972 - 2007 (KD Million) Capital Amount of Loan According to Total Administra- Surplus Year Income Board Date of Authorized Subscribed Paid-up Resources tive Expenses Income Resolution Signature 1972 100.0 81.0 15.4 16.0 0.6 0.1 0.5 - - 1973 100.0 81.0 21.7 22.7 1.0 0.6 0.4 - - 1974 102.0 81.0 36.0 38.7 2.9 0.8 2.1 37.1 37.1 1975 400.0 99.9 52.0 57.4 3.7 0.9 2.8 56.1 56.1 1976 400.0 102.1 99.6 108.5 5.9 1.5 4.4 98.2 98.2 1977 400.0 189.5 131.9 145.7 10.3 2.1 8.2 103.9 103.9 1978 400.0 370.4 164.9 186.2 11.3 2.2 9.1 - - 1979 400.0 370.1 202.7 225.8 14.7 2.0 12.7 26.2 19.4 1980 400.0 385.0 260.7 313.2 22.1 2.2 19.9 26.1 30.2 1981 400.0 395.1 317.5 393.3 26.8 2.1 24.7 56.8 40.5 1982 800.0 750.1 374.2 482.9 36.7 2.4 34.3 72.0 67.3 1983 800.0 750.1 450.1 598.4 40.2 3.2 37.0 76.4 91.1 1984 800.0 750.1 520.5 680.4 40.2 2.9 37.3 93.1 85.6 1985 800.0 750.1 581.1 797.4 61.0 3.2 57.8 81.1 53.2 1986 800.0 750.1 642.2 960.5 113.8 3.2 110.6 66.9 104.5 1987 800.0 694.8 644.2 1,009.3 53.9 3.2 50.7 106.3 65.4 1988 800.0 694.8 644.3 1,062.0 80.0 2.9 77.1 100.8 112.9 1989 800.0 694.8 663.0 1,176.2 103.7 3.0 100.7 151.0 165.8 1990 800.0 694.8 663.0 1,236.7 68.9 3.2 65.7 203.7 195.0 1991 800.0 694.8 663.0 1,245.2 74.4 3.7 64.9 180.2 171.4 1992 800.0 663.0 663.0 1,344.4 116.7 3.2 104.7 183.5 175.7 1993 800.0 663.0 663.0 1,424.9 99.5 3.1 85.0 208.5 184.5 1994 800.0 663.0 663.0 1,421.5 2.8 3.3 -0.4 187.9 194.4 1995 800.0 663.0 663.0 1,495.3 117.2 3.4 80.6 263.5 207.5 1996 800.0 663.0 663.0 1,584.8 98.5 4.0 94.4 212.0 266.4 1997 800.0 663.0 663.0 1,675.0 105.4 4.1 96.1 281.0 244.1 1998 800.0 663.0 663.0 1,747.8 83.8 4.7 77.9 280.0 258.0 1999 800.0 663.0 663.0 1,828.7 95.3 4.7 86.6 239.0 266.0 2000 800.0 663.0 663.0 1,933.2 81.4 4.7 76.7 292.5 279.5 2001 800.0 663.0 663.0 1,983.9 53.6 4.9 48.6 276.0 285.0 2002 800.0 663.0 663.0 2,054.4 34.2 4.9 78.6 352.0 293.5 2003 800.0 663.0 663.0 2,169.8 129.2 4.9 122.4 400.0 308.5 2004 800.0 663.0 663.0 2,266.0 119.3 5.2 113.2 282.0 309.0 2005 800.0 663.0 663.0 2,354.5 108.4 5.9 102.6 254.0 335.0 2006 800.0 663.0 663.0 2,451.1 126.5 6.6 119.6 434.0 345.0 2007 800.0 663.0 663.0 2,535.0 117.3 6.0 111.2 493.0 368.0

Total 800.0 663.0 663.0 2,535.0 2,261.2 119.1 2,118.8 6,174.8 5,817.7 ANNUAL REPORT 2007 REPORT ANNUAL 64 Annex (2) Page 2 of 2

Capital, Resources and Status of Loans and Grants, 1972 - 2007 (KD Million) Average No. of Grant No. of No. of No. of Amount of Loan Loans* Repayments Grants Disburse- Member Beneficiary Technical Loan* Disbursements ments Countries Countries Staff

------17 ------17 - 18 8 4.6 1.8 - 0.2 0.1 17 7 26 11 5.1 11.7 - 0.5 0.1 20 8 30 14 7.0 18.3 - 0.4 0.2 21 10 43 15 6.9 24.7 - 1.0 0.6 21 11 56 - - 61.8 0.2 0.4 0.3 21 - 48 4 4.9 37.0 2.1 0.3 0.2 21 6 30 9 3.4 25.5 3.4 0.7 0.2 21 8 32 13 3.1 36.1 6.0 1.3 0.2 22 11 29 26 2.6 26.8 9.5 1.3 0.7 22 9 21 29 3.1 30.2 11.9 1.5 0.6 22 12 32 21 4.1 29.9 10.8 1.3 0.7 22 11 37 17 3.1 44.5 12.6 1.4 1.2 22 11 44 20 5.2 57.3 26.2 3.3 1.0 22 10 50 11 5.9 48.4 25.5 3.8 2.2 22 7 50 20 5.6 45.5 26.0 5.1 2.7 22 9 50 15 11.1 84.0 31.1 3.8 4.8 22 8 50 18 10.8 40.6 26.8 4.7 3.4 21 8 52 11 15.6 85.7 46.6 3.3 4.2 21 8 45 13 13.5 103.1 44.7 3.4 3.2 21 8 46 12 15.4 116.5 40.5 5.9 3.2 21 6 43 16 12.2 115.7 40.1 3.5 4.1 21 9 45 12 17.3 174.8 42.4 5.8 3.9 21 7 46 18 14.8 212.7 46.9 2.9 3.5 21 9 61 22 11.1 178.5 50.0 4.9 3.0 21 9 66 18 14.3 165.6 53.1 3.9 3.9 21 10 65 15 17.7 173.2 51.9 6.3 4.5 21 12 68 15 18.6 228.8 119.5 13.0 5.8 21 10 69 15 19.0 182.8 93.9 5.0 5.2 21 11 69 15 19.6 161.2 90.6 4.1 4.5 21 10 71 16 19.3 199.7 122.5 7.0 5.9 21 10 68 18 17.2 250.3 101.0 5.1 6.1 21 9 67 19 17.6 282.2 155.1 4.5 6.2 21 11 69 18 19.2 281.5 306.3 13.9 7.8 21 9 68 16 23.0 274.5 136.5 11.3 6.5 21 8 67

520 11.2 3,811.3 1,733.7 135.0 100.3 - - -

* Based on the date of signature of the loan agreement. 2007 REPORT ANNUAL 65 2007 2003 1999 1995 1991 1987 (KD Million) 1983 Reserves Paid-up Capital 1979 1975 Growth in Arab Fund Resources During the Period 1972-2007 Arab Fund Resources in Growth 1972 0 800 400 2,800 2,400 2,000 1,600 1,200 ANNUAL REPORT 2007 REPORT ANNUAL 66 Loans and Disbursements During the Period 1974 - 2007 (KD Million)

1,750

1,500

Loans 1,250 Disbursements

1,000

750

500

250

0 1974-1977 1978-1982 1983-1987 1988-1992 1993-1997 1998-2002 2003-2007

Cumulative Loans and Disbursements During the Period 1974 - 2007 (KD Million)

6000

5000

Cumulative Loans 4000 Cumulative Disbursements

3000

2000

1000

0 1974 1977 1982 1987 1992 1997 2002 2007 ANNUAL REPORT 2007 REPORT ANNUAL 67 Annex (3)

Summary of Loans Extended to Member Countries, 1974 - 2007 (KD 000)

Effective Loans % No. of Loans Amount of Loans % and Disbursements Disburse- Net ments to Effective Disburse- Beneficiary Countries Approved Net Approved Cancelled Net Loans Effective Loans ments Loans 1- Hashemite Kingdom of Jordan 39 38 407,150 17,421 389,729 7.3 389,729 328,745 84.4

2- Republic of Tunisia 45 45 526,775 24,441 502,334 9.4 480,334 358,303 74.6 3- Algerian Democratic and People’s Republic 26 25 395,300 112,487 282,813 5.3 282,813 282,813 100.0

4- Republic of Sudan 28 27 280,000 12,848 267,152 5.0 267,152 243,980 91.3

5- Republic of Iraq 10 9 59,725 10,600 49,125 0.9 36,425 19,571 53.7

6- Syrian Arab Republic 46 45 565,975 28,431 537,544 10.0 537,544 391,643 72.9 7- Great Arab Libyan People’s Socialist Jamahiriya 9 8 175,700 27,932 147,768 2.8 147,768 116,904 79.1

8- Arab Republic of Egypt 43 42 788,150 88,278 699,872 13.1 699,872 539,168 77.0

9- Republic of Yemen 81 79 541,650 29,908 511,742 9.6 481,742 336,210 69.8

10- Republic of Lebanon 24 24 387,000 9,524 377,476 7.1 253,476 164,350 64.8

11- Kingdom of Morocco 54 53 793,900 77,655 716,245 13.4 716,245 525,094 73.3

12- Kingdom of Bahrain 18 17 241,500 13,463 228,037 4.3 209,037 165,436 79.1

13- Somali Democratic Republic 12 12 40,700 1,251 39,449 0.7 37,949 23,821 62.8

14- Islamic Republic of Mauritania 40 40 253,700 2,750 250,950 4.7 250,950 152,960 61.0

15- Sultanate of Oman 23 23 297,500 15,168 282,332 5.3 282,332 121,982 43.2

16- Palestine 5 5 17,000 2,156 14,844 0.3 14,844 14,155 95.4

17- Republic of Djibouti 17 15 46,000 4,568 41,432 0.8 41,432 26,193 63.2

Total 520 507 5,817,725 478,882 5,338,843 100.0 5,129,644 3,811,326 74.3 ANNUAL REPORT 2007 REPORT ANNUAL 68 Annex (4)

Sectoral Distribution of Loans Among Beneficiary Member Countries, 1974 - 2007 (KD Million)

Infrastructure Sectors Productive Sectors

Beneficiary Countries Sectors* Mining cations Percentage Grand Total Grand Transport Sewerage and Rural and Rural Electricity Water and Water Social Services Energy and Agriculture Other Sectors** Industry and Development - Telecommuni 1- Hashemite Kingdom of Jordan 36.6 6.0 163.9 8.8 115.4 18.0 58.0 0.5 407.1 7.0 2- Republic of Tunisia 171.8 4.7 78.8 59.9 144.0 37.0 25.0 5.6 526.8 9.1 3- Algerian Democratic and 45.0 7.8 147.0 30.0 77.3 10.0 70.0 8.2 395.3 6.8 People’s Republic 4- Republic of Sudan 94.6 7.7 84.5 14.3 57.5 21.4 - - 280.0 4.8 5- Republic of Iraq - 5.0 8.5 - 8.0 18.8 - 19.4 59.7 1.0 6- Syrian Arab Republic 53.0 60.7 253.0 47.5 86.1 52.1 13.0 0.6 566.0 9.7 7- Great Arab Libyan People’s - 12.5 127.2 - - 36.0 - - 175.7 3.0 Socialist Jamahiriya 8- Arab Republic of Egypt 73.0 - 410.4 101.0 - 118.4 83.4 2.0 788.1 13.5 9- Republic of Yemen 157.9 8.9 147.9 87.6 63.3 15.0 52.1 9.0 541.7 9.3 10- Republic of Lebanon 83.0 - 115.5 52.0 31.0 - 71.5 34.0 387.0 6.7 11- Kingdom of Morocco 299.0 4.0 85.5 42.3 320.5 9.0 33.0 0.6 793.9 13.6 12- Kingdom of Bahrain 50.5 6.0 54.0 36.0 - 25.0 70.0 - 241.5 4.2 13- Somali Democratic Republic 16.5 2.9 6.8 5.0 9.5 - - - 40.7 0.7 14- Islamic Republic of Mauritania 51.8 11.1 43.8 97.9 10.3 19.3 4.5 15.0 253.7 4.4 15- Sultanate of Oman 158.5 3.0 22.0 45.0 3.0 6.0 - 60.0 297.5 5.1 16- Palestine 5.0 - - - 6.0 - 6.0 - 17.0 0.3 17- Republic of Djibouti 4.5 5.9 13.0 - 1.9 0.7 20.0 - 46.0 0.8

Total 1,300.7 146.2 1,761.8 627.3 933.8 386.7 506.5 154.9 5,817.7 100.0 Percentage 22.4 2.5 30.3 10.8 16.0 6.6 8.7 2.7 100.0

* Includes Education, Health, Housing and Social Development. ** Include Loan Commitments for Emergency Projects. ANNUAL REPORT 2007 REPORT ANNUAL 69 Djibouti Other Palestine Oman Social Services Mauritania Industry & Mining Bahrain Morocco Lebanon Agriculture & Rural Development Yemen Egypt (KD Million) Water & Sewerage Water Syria Iraq Energy & Electricity Energy Sudan Telecommunications Tunisia Sectoral Distribution of Loans Among Beneficiary Countries, 1974 - 2007 Sectoral Distribution of Loans Transport Jordan 0 800 700 600 500 400 300 200 100 ANNUAL REPORT 2007 REPORT ANNUAL 70 Annex (5) Page 1 of 13

Loans Extended to Beneficiary Member Countries, 1974 - 2007 (KD 000) Disburse- Cancelled Disburse- Repayments Amount ments Country/Project Loan No. Loans and ments as at as at of Loan During Balances 31/12/2007 31/12/2007 2007 (1) Hashemite Kingdom of Jordan 1- Amman Northern Approach* 14/75 5,000 69 - 4,931 4,931 2- Electric Power Development I* 19/76 6,000 - - 6,000 6,000 3- Electric Power Development II* 43/77 5,900 - - 5,900 5,900 4- Aqaba Water* 47/79 2,100 129 - 1,971 1,971 5- Second Pan-Arab Telecommunications* 58/80 5,000 4,433 - 567 567 6- White Cement Industry (Jordan and Syria)* 78/82 5,000 - - 5,000 5,000 7- Potable Water to the Rural Areas* 82/82 700 - - 700 700 8- Electric Power Development III (Aqaba Power Station)* 92/82 5,000 - - 5,000 5,000 9- Fifth Pan-Arab Telecommunications (Inter-Arab)/(Earth Stations)* 96/82 1,000 - - 1,000 1,000 10- Small Farmers Credit in the Jordan Valley* 108/83 2,500 - - 2,500 2,500 11- Zarqa-Al Mafraq-Syrian Border Road* 118/83 4,000 - - 4,000 4,000 12- Central Ghors Irrigation* 145/84 6,000 82 - 5,918 5,918 13- Mitigation of Earthquake Risks* 148/84 450 182 - 268 268 14- The Lower Zarqa River Basin* 165/85 5,000 - - 5,000 4,625 15- Zara-Ghor Haditha Road* 175/86 5,600 27 - 5,573 5,573 16- Ruwaishid Pilot Scheme in Hammad Basin (Inter-Arab)* 184/86 1,500 4 - 1,496 1,496 17- Extension of Aqaba Thermal Power Station** 192/87 7,000 7,000 - - - 18- Shaidiya Phosphate Mines* 224/89 8,000 700 - 7,300 5,300 19- Jordan-Egypt Power Link* 233/89 10,500 - - 10,500 7,040 20- Supporting Operations of Jordan Electricity Authority and 239/90 8,000 - - 8,000 5,472 the Jordan Phosphate Mines Co.* 21- Industrial Development Bank Operations Program, 1990-1993* 252/90 5,000 17 - 4,983 4,983 22- Karameh Dam* 277/93 15,000 1,104 - 13,896 6,892 23- Second Agricultural Credit for Income Diversification* 283/93 2,500 - - 2,500 975 24- King Abdallah Teaching Hospital* 285/93 10,000 399 - 9,601 4,417 25- Aqaba Power Station Phase II and Reinforcement of Internal 301/94 35,000 - - 35,000 14,000 Transmission Lines* 26- Interconnection of Jordan and Syria Power Grids (Jordan)* 311/95 19,500 - - 19,500 6,545 27- Aqaba Thermal Power Station (Phase III)* 320/95 26,000 - - 26,000 9,620 28- Hwarat-Abu Zeighan Irrigation Water Pipeline* 333/96 1,900 595 - 1,305 523 29- Infrastructure Development in the Poor Areas* 358/97 6,000 - - 5,554 724 30- Integrated Development in the Southern Ghors* 359/97 34,000 - 41 22,492 6,180 31- Integrated Development in the Southern Ghors (Phase II - Mujib Dam)* 365/98 12,000 - 249 11,498 2,145 32- King Abdallah Teaching Hospital (Second Loan)* 371/98 15,000 29 260 14,971 3,150 33- Prince Hamza Hospital* 386/99 23,000 2,650 956 13,029 1,790 34- Al-Wehdah Dam* 394/2000 35,000 - 2,223 25,130 - 35- Education Reform - School Buildings 444/2003 10,000 - 636 8,821 - 36- Amman Development Corridor (Section I) 455/2003 12,000 - - - - 37- Al-Samra Power Generating Station* 462/2004 21,000 - - 20,881 - 38- Amman Development Corridor - Phase I (Second Loan) 499/2006 10,000 - - - - 39- Al - Samra Power Generating Station (Phase II) 515/2007 20,000 - 11,960 11,960 - Subtotal 407,150 17,421 16,325 328,745 135,205 (2) Republic of Tunisia 1- Tunis Sud Electric Power* 3/74 2,000 1 - 1,999 1,999 2- El-Borma Gas* 15/75 4,000 4 - 3,996 3,996 3- Development Credit* 34/77 7,000 - - 7,000 7,000

* Completed Project. ** Fully Cancelled Loan. ANNUAL REPORT 2007 REPORT ANNUAL 71 Annex (5) Page 2 of 13

Loans Extended to Beneficiary Member Countries, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount Country/Project Loan No. Loans and ments Dur- ments as at as at of Loan Balances ing 2007 31/12/2007 31/12/2007 4- Water Supply for Industry in Gabes* 50/79 3,300 1,018 - 2,282 2,282 5- Ghardima Plain Irrigation* 57/80 3,500 478 - 3,022 3,022 6- Binzert Fisheries Port* 64/81 3,800 649 - 3,151 3,151 7- Fourth Pan-Arab Telecommunications* 72/81 3,700 - - 3,700 3,700 8- Potable Water to Rural Areas* 83/82 600 88 - 512 512 9- Wadi Lubna for Irrigation and Agricultural Development* 91/82 3,500 1,628 - 1,872 1,872 10- Fifth Pan-Arab Telecommunications (Earth Stations)* 101/82 1,000 3 - 997 997 11- Water Supply for the Central and Southern Coastal Areas* 115/83 4,000 1,489 - 2,511 2,511 12- Mornag Agriculture* 123/83 1,500 133 - 1,367 1,367 13- Burj Tomi, Mater and Sajnan Irrigation* 144/84 6,000 2,700 - 3,300 3,300 14- Mitigation of Earthquake Risks* 149/84 575 48 - 527 527 15- Integrated Rural Development (Phase I)* 166/85 14,000 - - 14,000 14,000 16- Northern Roads Development* 190/87 7,000 - - 7,000 7,000 17- Monastir Fishery Port* 195/87 1,300 72 - 1,228 1,228 18- Al-Qairawan Plain Irrigation* 207/88 5,500 2,079 - 3,421 2,661 19- Tunis Municipality Road Rehabilitation* 213/88 2,700 - - 2,700 2,079 20- Rehabilitation and Maintenance of the Phosphoric Acid 228/89 16,000 - - 16,000 11,425 and Fertilizers Company’s Factories* 21- Hammamat-Masaken Motorway* 242/90 20,000 - - 20,000 13,200 22- Tunisia-Libya Power Link* 243/90 17,800 - - 17,800 3,240 23- Maintenance of Flood-Damaged Roads* 253/90 5,000 1,049 - 3,951 2,631 24- Sidi El-Barraq Dam Project for Potable Water and Irrigation* 273/92 20,000 3,217 - 16,783 7,783 25- Integrated Rural Development (Phase II)* 293/94 21,000 372 137 20,628 8,943 26- Roads Development* 296/94 10,000 - - 10,000 4,275 27- University Buildings in Gafsa* 321/96 10,000 2,119 - 7,881 2,793 28- Al-Wakael Project (Phase III)* 328/96 5,000 254 - 4,746 1,687 29- Zarqa Dam and the Irrigation of Tbarqa and Mekna Plains* 338/96 13,000 - 102 9,017 2,335 30- Hima, Abeed, Rumail and Al-Bark Dams for Irrigation* 348/97 22,000 - 332 15,240 4,045 31- Supporting the Vocational Training and Employment Programs* 361/97 11,000 134 - 10,866 1,956 32- Improvement of the Roads Network and Rural Roads Development* 374/98 35,000 30 - 34,970 5,970 33- Tunis - Bizerte Motorway* 382/99 24,000 4,877 - 19,123 2,623 34- El-Kebir and El-Maoula Dams 391/99 28,000 - 2,977 12,908 - 35- Development of the Industrial Parks 402/2000 14,000 - - 9,224 1,275 36- Tunis - Mejez El-Bab Motorway 405/2000 25,000 - 524 22,430 1,420 37- Developmental Credit Lines* 413/2001 11,000 2,000 - 9,000 904 38- Construction of Six Dams in the North to Supply Potable Water 428/2002 32,000 - 3,332 6,265 - 39- Modernization of the Transmission Network 443/2003 30,000 - 3,419 21,289 - 40- Sarrat Dam and Irrigation of Oulad Bou Ghanem and 459/2004 12,000 - - - - Mahjouba Plains 41- Al-Wakael Project (Phase IV) 464/2004 4,000 - 255 978 - 42- Regional and Rural Roads Network 483/2005 16,000 - 4,254 4,616 - 43- Wadi Al-Kabir Dam in Gafsa Province 490/2006 3,000 - - - - 44- Ghannoush Combined Cycle Power Generating Station 494/2006 25,000 - - - - 45- Regional and Rural Roads Network (Phase II) 518/2007 22,000 - - - - Subtotal 526,775 24,441 15,331 358,303 139,710 (3) Algerian Democratic and People’s Republic 1- New Arzew Port* 5/74 6,000 1,563 - 4,437 4,437 2- Telecommunications* 10A/75 300 52 - 248 248

* Completed Project. ANNUAL REPORT 2007 REPORT ANNUAL 72 Annex (5) Page 3 of 13

Loans Extended to Beneficiary Member Countries, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount Country/Project Loan No. Loans and ments Dur- ments as at as at of Loan Balances ing 2007 31/12/2007 31/12/2007 3- Jijel Port* 42/77 12,000 6,760 - 5,240 5,240 4- Navigation Inspection Unit* 55/80 2,000 70 - 1,930 1,930 5- Fourth Pan-Arab Telecommunications* 71/81 4,500 153 - 4,347 4,347 6- Two Hospitals in Tihart State* 94/82 5,000 1,624 - 3,376 3,376 7- Fifth Pan-Arab Telecommunications (Earth Stations)* 102/82 1,000 - - 1,000 1,000 8- The Mitigation of Earthquake Risks (First Loan)* 117/83 4,700 3,704 - 996 996 9- Agricultural Credit* 140/84 6,000 - - 6,000 6,000 10- Wadi Mina Irrigation* 167/85 6,500 1,364 - 5,136 5,136 11- Sharfa Dam* 183/86 10,800 2,042 - 8,758 8,758 12- Bani Haroun Dam for Municipal Water, Electricity and 210/88 17,000 127 - 16,873 16,873 Irrigation (First Loan)* 13- South Power Supply: Adrar Power Station* 261/91 21,000 1,028 - 19,972 19,972 14- Bashar-National Grid Power Link* 280/93 16,000 2,235 - 13,765 13,765 15- Bani Haroun Dam for Municipal Water, Electricity and 298/94 6,000 - - 6,000 6,000 Irrigation (Supplementary Loan)* 16- Power Generating Station in Hassi Massoud* 324/96 40,000 57 - 39,943 39,943 17- The Mitigation of Earthquake Risks (Second Loan)* 332/96 3,500 1,887 - 1,613 1,613 18- Development of Small and Medium Industries* 339/97 10,000 1,012 - 8,988 8,988 19- Power Generating Station in Hassi Massoud (Supplementary Loan)* 353/97 10,000 47 - 9,953 9,953 20- Al-Hama Power Generation Station* 377/98 30,000 1,476 - 28,524 28,524 21- Upgrading of the Electric Grid* 387/99 30,000 - - 30,000 30,000 22- Development of Social Housing in the Central Region* 396/2000 35,000 12,190 - 22,810 22,810 23- Pumping and Conveyance of Bani Haroun Water (First Stage)* 415/2001 31,000 3,902 - 27,098 27,098 24- Conveyance of Bani Haroun Water (Conveyor to Othmania Dam)* 424/2002 30,000 21,597 - 8,403 8,403 25- Afroun- Husseinia Motorway* 426/2002 27,000 19,599 - 7,401 7,401 26- Housing Construction and Reconstruction** 450/2003 30,000 30,000 - - - Subtotal 395,300 112,487 - 282,813 282,813 (4) Republic of Sudan 1- Gadaref-Kassala Motorway (First Loan)* 6/74 8,000 - - 8,000 8,000 2- Telecommunications* 9/75 4,800 257 - 4,543 4,543 3- Rahad Roads* 16/75 4,400 11 - 4,389 4,389 4- Sennar-Damazin Motorway* 31/76 11,000 986 - 10,014 10,014 5- Railways Development* 46/77 5,000 32 - 4,968 4,968 6- Gadaref-Kassala Motorway (Supplementary Loan)* 51/79 5,200 - - 5,200 5,200 7- Nzara Rural Development** 65/81 2,500 2,500 - - - 8- Potable Water for the Rural Areas* 84/82 1,800 73 - 1,727 1,727 9- Fifth Pan-Arab Telecommunications (Earth Stations)* 100/82 1,300 223 - 1,077 1,077 10- Rehabilitation of Sugar Industry (First Loan)* 110/83 6,000 - - 6,000 6,000 11- Rehabilitation of Sugar Industry (Second Loan)* 111/83 7,500 - - 7,500 7,500 12- Rehabilitation of Gezira Agricultural Scheme (First Loan)* 136/84 8,000 - - 8,000 8,000 13- Rehabilitation of Gezira Agricultural Scheme (Second Loan)* 155/85 4,400 - - 4,400 4,400 14- Rehabilitation of Khartoum Water and Sewerage Facilities* 179/86 2,500 - - 2,500 1,492 15- Rehabilitation of Telecommunications (Phase I)* 180/86 1,600 - - 1,600 1,344 16- Rehabilitation of the Sugar Industry (Third Loan)* 181/86 3,400 - - 3,400 550 17- Rehabilitation of Gezira Agricultural Scheme (Third Loan)* 182/86 9,600 - - 9,600 2,604 18- National Power Grid* 198/87 8,500 - - 8,500 2,356 19- Port Sudan Water Supply* 206/87 10,000 5,000 - 5,000 960 20- Textiles Rehabilitation* 208/88 4,500 3,765 - 735 735

* Completed Project. ** Fully Cancelled Loan. ANNUAL REPORT 2007 REPORT ANNUAL 73 Annex (5) Page 4 of 13

Loans Extended to Beneficiary Member Countries, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount Country/Project Loan No. Loans and ments Dur- ments as at as at of Loan Balances ing 2007 31/12/2007 31/12/2007 21- Paving of the Main Roads* 392/2000 23,000 - - 23,000 1,240 22- Rossaires Dam* 393/2000 12,000 - - 12,000 650 23- Atbara - Haiya - Port Sudan Road* 410/2001 25,000 - 6,807 25,000 - 24- Merowe Dam 422/2002 46,000 - 13,306 38,692 - 25- Generation and Transmission of Electricity from Merowe Dam 448/2003 30,000 - 7,499 22,464 - 26- Gadaref-Doka-Gallabat Road 457/2003 9,000 - 2,823 8,151 - 27- Merowe Dam Road 474/2005 4,000 - - 1,534 - 28- The White Nile Sugar Project 476/2005 21,000 - 5,807 15,988 - Subtotal 280,000 12,848 36,242 243,980 77,748 (5) Republic of Iraq 1- Deep Freeze Store* 107/83 10,000 1,700 - 7,259 3,032 2- Fifth Pan-Arab Telecommunications (Earth Stations-Arabsat) 141/84 5,000 - - 4,373 - 3- Mitigation of Earthquake Risks 150/84 525 - - 503 63 4- Deep Freeze Store in Ninawa** 169/85 8,900 8,900 - - - 5- Agricultural Credit 200/87 8,000 - - 2,678 - 6- Industrial Credit 209/88 8,000 - - 3,726 - 7- Industrial Credit II 225/89 2,800 - - 283 - 8- Abattoir and Meat Processing Unit (Central Region) 226/89 3,800 - - 749 - 9- Abattoir and Meat Processing Unit-Basra 235/90 4,200 - - - - 10- Basra Power Grid 248/90 8,500 - - - - Subtotal 59,725 10,600 - 19,571 3,095 (6) Syrian Arab Republic 1- Fuel Storage Tanks* 2/74 2,000 - - 2,000 2,000 2- Cattle Breeding (Ghab)* 8/74 5,400 3,412 - 1,988 1,988 3- Damascus Water Supply (First Loan)* 26/76 12,000 - - 12,000 12,000 4- Banias Power Station* 45/77 6,000 - - 6,000 6,000 5- Second Pan-Arab Telecommunications* 60/80 2,700 918 - 1,782 1,782 6- Homs and Hama Sewerage* 61/81 5,000 4,354 - 646 646 7- Damascus Garbage Composting* 70/81 2,200 2 - 2,198 2,198 8- Tartous-Lattakia Motorway* 93/82 6,000 - - 6,000 6,000 9- Fifth Pan-Arab Telecommunications (Earth Stations)* 95/82 1,000 - - 1,000 1,000 10- Damascus-Sanamein-Jordanian Border Road* 128/83 9,000 - - 9,000 9,000 11- Mehardeh Power Station Extension (First Loan)* 146/84 6,500 239 - 6,261 6,261 12- Mitigation of Earthquake Risks* 151/84 575 11 - 564 564 13- Pesticides Arab Joint Venture (Syria-Jordan)** 154/84 1,900 1,900 - - - 14- Mehardeh Power Station Extension (Second Loan)* 156/85 4,500 143 - 4,357 4,357 15- Damascus Water Supply (Second Loan)* 164/85 3,000 361 - 2,639 2,447 16- Fifth Pan-Arab Telecommunications (Earth Stations) - 172/86 1,000 - - 1,000 1,000 (Supplementary Loan)* 17- Tenf Pilot Scheme in Hammad Basin (Inter-Arab)* 185/86 1,700 - - 1,700 1,512 18- Ghab and Asharneh Plains Irrigation* 193/87 15,000 995 - 14,005 14,005 19- Mehardeh Power Station Extension (Supplementary Loan)* 194/87 2,500 - - 2,500 2,500 20- Hamah-Saraqeb Road and Ain Eissa-Qintari Road* 214/88 8,000 31 - 7,969 5,917 21- Homs and Hama Sewerage* 241/90 9,500 1,944 11 7,556 5,936 22- Aleppo Sewerage* 245/90 12,500 5,434 - 7,066 6,585 23- Rehabilitation of Phosphate Fertilizer Plant in Homs* 246/90 10,000 1,082 - 8,918 6,267 24- Khaboor Irrigation (Phase I)* 250/90 15,000 1,281 - 13,719 9,429 25- Jourine Joint Water Supply* 260/91 5,500 1,598 - 3,902 2,642

ANNUAL REPORT 2007 REPORT ANNUAL * Completed Project. ** Fully Cancelled Loan. 74 Annex (5) Page 5 of 13

Loans Extended to Beneficiary Member Countries, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount Country/Project Loan No. Loans and ments Dur- ments as at as at of Loan Balances ing 2007 31/12/2007 31/12/2007 26- Phosphate Fertilizers in Tadmur 265/92 30,000 - - - - 27- Medical Equipment in Hospitals* 271/92 13,000 23 - 12,977 6,677 28- Southern Region Agricultural Development Project (Phase II)* 274/92 3,500 909 - 2,591 1,413 29- Tishrin Hydroelectric Dam* 279/93 36,000 3,054 - 32,946 17,136 30- Rehabilitation of Sulphuric Acid Plant in Homs* 287/93 6,000 739 - 5,261 3,959 31- Zeizoun Power Generating Station 291/93 30,000 - - 29,214 15,390 32- Agricultural Development in Jabal Al-Hoss* 307/95 2,500 - - 1,668 250 33- Interconnection of Jordan and Syria Power Grids (Syria)* 312/95 30,000 - 457 25,579 10,010 34- Syria-Turkey Power Grid Interconnection and Reinforcing 314/95 26,000 - 1,040 22,946 4,740 the Syrian Internal Network 35- Construction of 66 kV Substations in Six Governorates* 319/95 15,500 - 1,006 11,034 2,520 36- Agricultural Development in the Coastal and Central Areas 327/96 17,500 - 89 10,906 540 37- Modernization of the Communications System in Syria 351/97 26,000 - - 21,920 5,920 (1.650 million new lines)* 38- National Control Center for the Electric System 366/98 10,000 - 788 7,092 975 39- Integrated Development in the Badia 368/98 20,000 - 1,605 8,012 1,090 40- Lattakia - Ariha Motorway 379/98 30,000 - 4,989 21,273 5,160 41- Modernization of the Communications System (Subscribers’ Networks) 384/99 30,000 - 1,989 18,788 3,420 42- The Expansion and Conversion to Combined Cycle of 409/2001 25,000 - 122 9,193 - Nasrieh Power Plant 43- Transformation Stations in the Industrial Cities of Rif 429/2002 9,000 - 367 7,242 - Dimashq, Homs and Aleppo Provinces 44- Rural Development in Idlib Governorate 433/2002 5,500 - 2 3 - 45- Converting Zeizoun Power Station to Combined Cycle 440/2003 22,000 - 145 9,727 - 46- Power Generating Station in the South (Deir Aly) 469/2004 30,000 - 8,500 8,500 - Subtotal 565,975 28,431 21,109 391,643 191,235 (7) Great Arab Libyan People’s Socialist Jamahiriya 1- Two Fish Packaging Plants in Sabrata and Zlaiten 240/90 11,000 - - 9,133 4,710 2- Libya-Tunisia Power Link * 244/90 2,200 - - 1,416 335 3- Interconnection of the Libyan and Egyptian Power Grids (Libya)* 326/96 12,000 - - 9,410 4,140 4- National Control Center for the Libyan Electrical System 329/96 20,000 - 906 17,114 - 5- Submarine Fiber Optic Cable* 369/98 12,500 2,932 - 9,568 9,568 6- Development Credit** 385/99 25,000 25,000 - - - 7- Converting North Benghazi Electrical Power Plant to Combined Cycle 398/2000 25,000 - 955 24,078 - 8- Conversion of Al-Zawya Power Station to Combined Cycle 437/2002 28,000 - - 20,719 - 9- Electrical Inter-Connection at 400 kV (Phase II) 458/2004 40,000 - 10,700 25,466 - Subtotal 175,700 27,932 12,561 116,904 18,753 (8) Arab Republic of Egypt 1- Talkha II Fertilizers (First Loan)* 4/74 6,500 - - 6,500 6,500 2- Tourah Cement Expansion* 11/75 6,700 - - 6,700 6,172 3- Cairo-Fustat Water Supply* 17/75 9,700 1,806 - 7,894 7,894 4- Cairo-Helwan Sewerage* 18/75 8,300 7,603 - 697 697 5- Talkha II Fertilizers (Supplementary Loan)* 24/76 2,700 6 - 2,694 2,304 6- Abu-Qir Power Station Extension* 28/76 12,000 3,041 - 8,959 8,959 7- Kafr El-Dawar Textiles* 30/76 10,000 - - 10,000 7,248 8- Suez Canal Development* 40/77 12,000 - - 12,000 9,224 9- Dumyat Power Station (Phase II)* 221/89 35,000 700 - 34,300 21,175 10- Idfu Wood Pulp Plant Extension* 229/89 7,500 632 - 6,868 3,772

* Completed Project. ** Fully Cancelled Loan. ANNUAL REPORT 2007 REPORT ANNUAL 75 Annex (5) Project 6 of 13

Loans Extended to Beneficiary Member Countries, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount Country/Project Loan No. Loans and ments Dur- ments as at as at of Loan Balances ing 2007 31/12/2007 31/12/2007 11- Egypt-Jordan Power Link* 234/89 34,100 3,339 - 30,761 19,465 12- Soda Ash Plant (First Loan)* 238/90 7,000 - - 7,000 3,780 13- Ammonium Nitrate Unit* 247/90 8,000 - - 8,000 4,510 14- Kureimat Power Station* 254/91 36,250 3,585 - 32,665 17,845 15- Rubber Tires and Tubes Factory Extension* 255/91 10,500 - - 10,500 4,860 16- Social Development Fund (Phase I)* 256/91 14,400 11 - 14,389 6,619 17- Sewerage Projects in 46 Towns* 270/92 36,000 14,732 - 21,268 12,388 18- Sidi-Kreir Thermal Power Station* 272/92 44,000 6,363 - 37,637 13,121 19- Mitigation of Earthquake Risks* 275/92 2,000 1 - 1,999 831 20- Reconstruction of Earthquake- Damaged Schools* 276/93 15,000 - - 15,000 5,840 21- Suez Transformers Station* 278/93 16,000 733 - 15,267 6,366 22- Rehabilitation of Phosphatic Fertilizers Plant in Abu Zaabal* 284/93 4,000 242 - 3,758 1,853 23- Electric Insulations Plant 286/93 4,500 - - 4,016 2,365 24- Float Glass Plant* 292/94 15,000 384 - 14,616 14,616 25- Soda Ash Plant (Second Loan)* 295/94 4,000 82 - 3,918 2,630 26- Oyun Moussa Power Station* 309/95 39,000 8,600 - 30,400 8,896 27- Construction of a Special Steel Factory* 318/95 15,000 409 - 14,591 2,861 28- Social Development Fund (Phase II)* 346/97 21,000 - 4,195 21,000 1,134 29- The Liver Diseases Center 362/98 3,000 - - - - 30- Construction of a Flat Steel Plant* 372/98 17,000 79 - 16,921 3,817 31- Upgrading the Egyptian National Railroads Authority’s 399/2000 16,000 - 4,866 5,322 401 Locomotives and Workshops 32- Cairo North Power Generation Station* 407/2001 27,000 1,707 - 25,293 - 33- Water Supply for 240 Villages Deprived of Potable Water - Phase I 420/2001 17,000 - - 1,139 - 34- Natural Gas Pipeline (Al-Arish - Aqaba)* 427/2002 17,000 4,224 26 12,776 1,833 35- Nubaria Power Station - Phase I 434/2002 30,000 - 1,109 23,346 - 36- Nubaria Power Station - Phase II 438/2003 30,000 - 1,375 20,926 - 37- Educational Buildings** 442/2003 30,000 30,000 - - - 38- Water Supply for Villages Deprived of Potable Water - Phase II 432/2002 30,000 - 2,034 19,393 - 39- Talkha Combined Cycle (750 M.W.) Power Generation Station 461/2004 30,000 - 7,533 24,258 - 40- Development of the Waterway Between Cairo and Alexandria 472/2005 10,000 - - 1 - 41- Expansion of West Cairo Power Generation Station 484/2005 30,000 - 5,108 5,108 - 42- Development of Hurghada International Airport 488/2006 35,000 - - - - 43- Al-Atf Power Generating Station 492/2006 30,000 - 1,287 1,287 - Subtotal 788,150 88,278 27,533 539,168 209,978 (9) Republic of Yemen 1- Mukalla Multipurpose* 1/74 3,200 - - 3,200 3,200 2- Electric Power I* 7/74 4,000 - - 4,000 4,000 3- Aden Port Rehabilitation* 12/75 3,900 - - 3,900 3,900 4- Hodeida Water Supply and Sewerage* 13/75 6,000 727 - 5,273 5,273 5- Taiz-Aden Road* 22A/76 3,800 - - 3,800 3,800 6- Aden-Taiz Road* 22B/76 6,500 - - 6,500 6,500 7- Mukalla Multipurpose (Supplementary Loan)* 27/76 2,600 1,904 - 696 696 8- Electric Power II* 32/77 9,000 - - 9,000 9,000 9- Sana’a Water Supply* 37/77 5,000 91 - 4,909 4,909 10- Hadramaut Power* 48/79 4,000 - - 4,000 4,000 11- Wadi Tuban Agricultural Scheme* 53/80 1,900 25 - 1,875 1,875 12- Dhamar Water Supply and Sewerage* 56/80 3,000 7 - 2,993 2,993

* Completed Project. ** Fully Cancelled Loan. ANNUAL REPORT 2007 REPORT ANNUAL 76 Annex (5) Page 7 of 13

Loans Extended to Beneficiary Member Countries, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount Country/Project Loan No. Loans and ments Dur- ments as at as at of Loan Balances ing 2007 31/12/2007 31/12/2007 13- Electric Power III (Dhamar-Taiz Transmission Network)* 62/81 4,700 - - 4,700 4,700 14- Aden Water Supply (First Loan)* 63/81 3,500 - - 3,500 3,500 15- Third Pan-Arab Telecommunications* 68/81 1,400 - - 1,400 1,400 16- Third Pan-Arab Telecommunications* 69/81 1,300 - - 1,300 1,300 17- Electric Power IV (Al-Mokha Power Station)* 79/82 4,000 42 - 3,958 3,958 18- Potable Water to Rural Areas* 87/82 1,500 - - 1,500 1,500 19- Potable Water to Rural Areas* 88/82 700 80 - 620 620 20- Nashtoun Fisheries Port* 90/82 3,000 - - 3,000 3,000 21- Fifth Pan-Arab Telecommunications (Earth Stations)* 97/82 1,200 - - 1,200 1,200 22- Reconstruction of Flood-damaged Roads and Bridges* 109/83 1,000 - - 1,000 1,000 23- Strengthening of Taiz-Al Mafraq Road* 114/83 2,100 388 - 1,712 1,712 24- Electric Power III Development (Electrification of Five 122/83 1,500 - - 1,500 1,500 Towns East of Mukalla)* 25- Fisheries Manpower Centre (FMDC) and the Fisheries Co- 124/83 1,000 - - 1,000 1,000 operatives (FDC)* 26- Dhamar Water Supply and Sewerage (Supplementary Loan)* 125/83 3,000 7 - 2,993 2,993 27- Rural Development in the Central Highlands* 126/83 3,000 236 - 2,764 2,364 28- Seiyoun Regional Water Supply* 127/83 2,000 - - 2,000 2,000 29- Seiyoun Regional Water Supply Development (Phase II)* 131/84 3,700 61 - 3,639 3,639 30- Geological and Water Mapping of Northern Yemen* 132/84 1,200 151 - 1,049 1,049 31- Geological and Water Mapping of Southern Yemen* 133/84 1,200 211 - 989 989 32- Development of Health Institute* 138/84 1,100 246 - 854 854 33- Strengthening of Sana’a-Taiz Road* 147/84 5,600 247 - 5,353 5,353 34- Mitigation of Earthquake Risks* 152/84 600 1 - 599 527 35- Grain Silos** 157/85 8,000 8,000 - - - 36- Wadi Hajar Agriculture* 160/85 3,500 - - 3,500 3,500 37- Aden-Abyan Electrification Scheme* 161/85 5,900 237 - 5,663 5,663 38- Nisab-Beigan Road* 170/86 4,200 58 - 4,142 4,142 39- Electricity Distribution Network (First Loan)* 173/86 4,200 - - 4,200 4,200 40- Greater Aden Second Water Supply (Second Loan)* 174/86 2,000 221 - 1,779 1,259 41- Wadi Jawf Agricultural Development* 177/86 3,100 151 - 2,949 2,949 42- Aden Water Supply (Supplementary Loan)* 188/86 1,000 2 - 998 998 43- Laboos Water Supply* 189/87 4,000 58 - 3,942 3,198 44- Strengthening Sana’a-Hodeida Road* 199/87 6,800 - - 6,800 6,592 45- Lawder-Mukairas Road and Road Maintenance* 204/87 5,500 113 - 5,387 5,217 46- The FMDC and the FDC (Supplementary Loan)* 205/87 1,500 37 - 1,463 1,463 47- Zabid-Al Hodeida Road Rehabilitation* 211/88 2,500 - - 2,500 1,536 48- Northern Region Agricultural Development* 215/88 3,500 38 - 3,462 1,488 49- Yemen Power Link Taiz-Aden* 217/88 8,600 24 135 8,576 3,725 50- Yemen Power Link Aden-Taiz* 218/88 10,000 - 93 9,938 5,130 51- Al-Mukalla Water Supply* 220/88 2,850 20 - 2,830 1,630 52- Integrated Rural Development in the Central Highlands* 222/89 3,500 254 - 3,246 1,032 53- Agricultural Credit* 230/89 5,500 8 143 5,492 2,355 54- Wadi Hadramaut Agricultural Development Project (Phase III)** 232/89 3,300 3,300 - - - 55- Hojja-Al Khashm Road* 236/90 3,000 570 - 2,430 1,385 56- Electricity Distribution Network (Second Loan)* 251/90 4,500 146 - 4,354 1,579 57- SEA-ME-WE II Submarine Cable Project (Second Loan)* 268/92 5,000 1,905 - 3,095 1,415

* Completed Project. ** Fully Cancelled Loan. ANNUAL REPORT 2007 REPORT ANNUAL 77 Annex (5) Page 8 of 13

Loans Extended to Beneficiary Member Countries, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount Country/Project Loan No. Loans and ments Dur- ments as at as at of Loan Balances ing 2007 31/12/2007 31/12/2007 58- Rehabilitation of Flood-damaged Electricity, Water and 288/93 2,500 23 - 2,477 977 Sewerage Facilities in Aden* 59- Sana’a Sewerage Treatment Plant* 322/96 8,000 - 249 7,968 2,145 60- Social Development Fund* 350/97 6,000 - - 6,000 486 61- Wadi Hadramaut Agricultural Development Project (Phase III)* 357/97 4,000 - 458 2,656 - 62- Sanitation Networks in Sana’a 383/99 18,000 - 667 10,456 2,952 63- Sayhut - Nashtoun Road* 403/2000 26,000 10,316 - 15,684 - 64- Sana’a International Airport Development 411/2001 28,000 - 953 7,927 - 65- Social Development Fund - Phase II* 425/2002 15,000 - - 15,000 - 66- Grain Silos and Flour Mills at Saleef Port (P)* 2P/2002 3,000 - - 3,000 1,890 67- Ma’rib - Sana’a Transmission Lines at 400 k.V. and 435/2002 30,000 - 6,339 14,444 - Upgrading the Electrical Grid 68- Dhamar - Al-Husseiniya Road 445/2003 15,000 - 647 4,419 - 69- Construction of Ma’rib Gas-Turbine Electrical Generating Station 447/2003 25,000 - 18,504 20,982 - 70- Major Intersections in Sana’a City 453/2003 15,000 - 4,406 4,779 - 71- Grain Silos and Flour Mills at Saleef Port (Supplementary Loan) (P)* 3P/2004 2,000 - - 2,000 150 72- Completion of Sanitation Networks in Sana’a 463/2004 12,000 - 3,246 5,263 - 73- Five-Star Hotel in Sana’a (P)* 4P/2004 6,000 - - 6,000 - 74- Rural Access Roads 467/2004 26,000 - 2,367 3,135 - 75- Development of Local Communities 477/2005 15,000 - 3,750 6,000 - 76- Aden Iron Factory in Lahaj Governorate (P)* 5P/2006 7,000 - 1,000 7,000 - 77- Social Development Fund - Phase III 480/2005 15,000 - 3,750 7,500 - 78- Wastewater Facilities in Seiyoun and Tarim 482/2005 15,000 - - - - 79- Construction of a Second Ma’rib Gas-Turbine Power 502/2006 30,000 - - - - Generating Station and the Expansion of the Transmission Grid 80- Agricultural and Fisheries Development in the Hadramout Coastal Area 508/2007 12,000 - - - - 81- Aden Iron Factory in Lahaj Governorate (Supplementary Loan) (P) 7P/2007 3,000 - - - - Subtotal 541,650 29,908 46,708 336,210 165,357 (10) Republic of Lebanon 1- Electricity Network* 38/77 6,000 - - 6,000 6,000 2- Beirut Port* 39/77 5,000 - - 5,000 5,000 3- Rehabilitation of Electricity Installations* 263/91 22,000 3,157 - 18,843 10,619 4- Reconstruction and Shelter Rehabilitation* 282/93 8,000 - - 8,000 3,120 5- Rehabilitation of Electricity Installations (Supplementary Loan)* 304/94 7,000 291 - 6,709 2,793 6- Zahrani Power Station* 305/94 30,500 - - 30,500 13,280 7- Saida and Sour Water Supply 317/95 10,000 - 55 9,850 1,710 8- Technical and Vocational Schools 323/96 15,000 - 1,489 5,944 4,300 9- Administrative Rehabilitation of Public and Independent Agencies 325/96 6,000 - 687 5,813 1,530 10- Rehabilitation of the Infrastructure and Buildings Damaged 331/96 13,500 - 531 12,052 2,422 by the Israeli Aggression* 11- The Lebanese University Project (First Loan)* 355/97 23,000 - - 22,996 4,620 12- Syr El-Dania Jbab El-Homr / El-Hermel Road 356/97 6,000 - 1,052 2,656 - 13- Beirut Southern Entrances: Khaldeh-Cocodi and Awzaee Roads* 363/98 12,000 6,076 - 5,924 1,864 14- Interconnecting the Lebanese and Syrian Electric Grids at 400 kV 400/2000 8,000 - 9 2,718 - 15- Conveyance of Litani Water to Southern Lebanon 418/2001 31,000 - 159 1,705 - 16- Control Center for the Lebanese Power Network 423/2002 7,000 - 79 703 - 17- Infrastructure Upgrading in Beirut City 430/2002 17,000 - 170 5,510 - 18- The Lebanese University Project (Second Loan) 439/2003 6,000 - - 3,305 - * Completed Project. (P): Private Sector Project. ANNUAL REPORT 2007 REPORT ANNUAL 78 Annex (5) Page 9 of 13

Loans Extended to Beneficiary Member Countries, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount Country/Project Loan No. Loans and ments Dur- ments as at as at of Loan Balances ing 2007 31/12/2007 31/12/2007 19- Development of the Road Network and Main Intersections 449/2003 30,000 - 2,268 10,123 - 20- Administrative Rehabilitation 495/2006 9,000 - - - - 21- Development of Water and Wastewater Facilities in some Areas in Lebanon 496/2006 25,000 - - - - 22- Rehabilitation of Infrastructure Damaged by the Aggression 500/2006 30,000 - - - - 23- Rehabilitation of the Private Sector Enterprises Damaged 505/2006 25,000 - - - - by the Israeli Aggression 24- Rehabilitation of Electric Power Installations Damaged by 506/2006 35,000 - - - - the Israeli Aggression Subtotal 387,000 9,524 6,499 164,350 57,258 (11) Kingdom of Morocco 1- Telecommunications* 10B/75 3,000 802 - 2,198 2,198 2- Beni Amir Irrigation* 20/76 7,000 1,254 - 5,746 5,746 3- Agricultural Credit (First Loan)* 33/77 9,000 - - 9,000 9,000 4- Oujda Cement* 41/77 9,000 - - 9,000 9,000 5- Gharb Irrigation* 54/80 5,000 - - 5,000 5,000 6- Al-Houz Al-Awsat (First Loan)* 74/81 7,500 - - 7,500 7,500 7- Al-Houz Al-Awsat (Second Loan)* 76/82 7,500 - - 7,500 7,500 8- Potable Water to Rural Areas* 85/82 1,300 1,135 - 165 165 9- Fifth Pan-Arab Telecommunications (Earth Stations)* 103/82 1,000 - - 1,000 1,000 10- Agricultural Development in Loukkos Valley (First Loan)* 121/83 7,500 - - 7,500 7,500 11- Agricultural Credit (Second Loan)* 134/84 8,000 - - 8,000 8,000 12- Mitigation of Earthquake Risks* 153/84 600 6 - 594 594 13- Ait Ayoub Dam for Irrigation and Electricity* 168/85 15,000 4,787 - 10,213 10,213 14- Lower Tassaout Irrigation* 176/86 5,000 - - 5,000 5,000 15- Aoulouz Dam and Agricultural Development in Wadi Souss* 191/87 15,000 2,903 - 12,097 12,097 16- Al-Mana’ Barrage and Irrigation of Lands in Al-Gharb Plain* 212/88 17,000 2,863 - 14,137 11,023 17- Ismir Dam and Potable Water for Tatwan Area* 223/89 4,000 900 - 3,100 2,335 18- Agricultural Credit (Third Loan)* 231/89 12,000 - - 12,000 12,000 19- Maja’ra Dam* 237/90 50,000 542 - 49,458 23,992 20- Rehabilitation of Flood-Damaged Infrastructure* 249/90 2,500 33 - 2,467 1,610 21- Upper Dokala Region Irrigation (Phase I)* 264/91 30,000 3,983 - 26,017 13,216 22- Rabat-Larache Motorway* 267/92 18,000 - - 18,000 9,785 23- Agricultural Credit (Fourth Loan)* 281/93 18,000 5,251 - 12,749 12,749 24- Seedi Al-Shahid Dam* 290/93 18,500 2,697 - 15,803 7,405 25- Strengthening Internal Power Grid for the Morocco - Spain 299/94 18,500 4,628 - 13,872 7,222 Interconnection* 26- Loukkos Basin Agricultural Development (Second Loan)* 300/94 3,000 22 - 2,978 1,358 27- Al-Gharb Plain Irrigation (Phase II)* 303/94 20,000 537 10 19,463 7,241 28- Rabat-Fes Motorway* 306/95 23,000 3,123 - 19,877 8,138 29- Maja’ra Dam (Second Loan)* 315/95 17,000 2,990 - 14,010 4,327 30- Combatting the Effects of the Drought* 316/95 10,000 - - 10,000 4,575 31- Potable Water for Meknes City** 330/96 7,000 7,000 - - - 32- Agadir and Tantan Fisheries Port* 335/96 13,000 1,095 - 11,905 4,246 33- Morocco-Spain Power Interconnection (Supplementary Loan)* 337/96 7,000 3,428 - 3,572 1,436 34- Dchar El Oued and Ait Massoud Dams for Electricity, 344/97 15,000 5,886 - 9,114 2,094 Irrigation and Drinking Water* 35- Dchar El Oued and Ait Massoud Dams: Financing the Two 345/97 15,000 8,796 102 6,204 1,970 Hydro-electric Stations*

* Completed Project. ** Fully Cancelled Loan. ANNUAL REPORT 2007 REPORT ANNUAL 79 Annex (5) Page 10 of 13

Loans Extended to Beneficiary Member Countries, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount Country/Project Loan No. Loans and ments Dur- ments as at as at of Loan Balances ing 2007 31/12/2007 31/12/2007 36- Casablanca-Settat Motorway (2nd Section)* 364/98 16,000 4,031 - 11,969 1,829 37- Development of Social Housing in Agadir 378/98 18,000 - 2,788 6,793 - 38- Ait Hamou Dam and Supplying Greater Agadir City with Water* 380/99 17,000 8,966 - 8,034 1,596 39- Mohammed V Airport Development 389/99 10,000 - 4,228 9,377 - 40- Afourer Pumped Storage Hydro-Power Plant* 397/2000 25,000 - 351 19,836 2,145 41- Casablanca - El-Jadida Motorway 416/2001 15,000 - - 11,521 430 42- Raising of Sidi Mohammed Bin Abdullah Dam and 421/2002 18,000 - 2,209 6,953 - Construction of Boukhamis Dam 43- Rural Electrification 446/2003 20,000 - 3,357 15,668 - 44- Tetouan - Fenidiq Motorway 451/2003 14,000 - 3,263 8,330 - 45- Settat - Marrakech Motorway (Phase I) 452/2003 30,000 - 1,100 10,165 - 46- Tangier Mediterranean Harbour - Northern Highway Motorway 460/2004 35,000 - 13,592 26,398 - 47- Werkan Dam to Supply Marrakech with Potable Water 470/2004 7,000 - 1,632 2,716 - 48- Tangier Mediterranean Harbour - Northern Highway 473/2005 20,000 - 7,099 13,750 - Motorway (Section Three) 49- Marrakech - Agadir Motorway 485/2005 29,000 - 2,451 4,710 - 50- Wadi Al-Raml Dam to Supply Tangier Mediterranean Port with Water* 486/2005 9,000 - 5,703 5,703 - 51- Marrakech - Agadir Motorway (Second Loan) 491/2006 31,000 - 4,891 4,891 - 52- Generalization and Integration of Information Technology 498/2006 15,000 - - - - in Public School Education 53- Rural Roads 503/2006 15,000 - - - - 54- Fes - Oujda Motorway 512/2007 30,000 - 3,038 3,038 - Subtotal 793,900 77,655 55,813 525,094 233,238 (12) Kingdom of Bahrain 1- Bahrain Power* 44/77 5,000 - - 5,000 5,000 2- Sixth Pan-Arab Telecommunications, Submarine Gulf 113/83 3,000 - - 3,000 3,000 Cable (Bahrain-Qatar-UAE)* 3- Seventh Pan-Arab Telecommunications, Submarine Gulf 142/84 3,000 3,000 - - - Cable (Bahrain-Kuwait)** 4- Roads Development* 201/87 5,500 5,425 - 75 75 5- Roads Development (Second Loan)* 258/91 11,000 894 - 10,106 5,940 6- Development of Suleimaniyah Medical Center (First Loan)* 259/91 21,000 1,002 - 19,998 12,382 7- Development of Suleimaniyah Medical Center (Second Loan) 308/95 11,000 - - 7,652 4,095 8- The Housing Project (First Loan)* 334/96 15,000 580 - 14,420 5,180 9- Transfer and Distribution of Water from Al-Hidd 349/97 21,000 1,450 - 19,550 5,354 Desalination and Power Station* 10- Interconnection of Al-Hidd Production Facility to the Electric Grid* 360/97 10,000 1,112 - 8,888 2,830 11- Production and Utilization of Treated Sewerage Effluent 367/98 15,000 - - 11,049 2,580 12- Hidd Industrial Area 370/98 25,000 - 602 16,505 715 13- The Housing Project (Second Loan) 381/99 20,000 - - 16,147 4,320 14- Bahrain Specialized Hospital (P)* 1P/2001 3,000 - - 3,000 - 15- Expansion of the Electric Generation and Transmission Systems* 417/2001 25,000 - 92 20,956 - 16- Khalifa Bin Salman Port 465/2004 15,000 - 3,936 3,936 - 17- Upgrading the Electrical Transmission Network 478/2005 14,000 - 5,153 5,153 - 18- Replacement of Sitra Causeway Bridge 504/2006 19,000 - - - - Subtotal 241,500 13,463 9,783 165,436 51,471 (13) Somali Democratic Republic 1- Inter-riverine Settlements* 23/76 6,400 1,250 - 4,571 264

* Completed Project. ** Fully Cancelled Loan. (P): Private Sector Project. ANNUAL REPORT 2007 REPORT ANNUAL 80 Annex (5) Page 11 of 13

Loans Extended to Beneficiary Member Countries, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount Country/Project Loan No. Loans and ments Dur- ments as at as at of Loan Balances ing 2007 31/12/2007 31/12/2007 2- Hargeisa-Borama Road* 35/77 2,500 - - 2,098 235 3- Goluen-Gelib Road (First Loan)* 36/77 5,500 - - 5,500 362 4- Trypanosomiasis and Tsetse Control (Phase I)* 52/79 1,600 - - 1,258 - 5- Third Pan-Arab Telecommunications 66/81 1,700 - - 1,434 - 6- Mogadishu Water Supply II* 73/81 5,000 - - 3,015 - 7- Goluen-Gelib Road (Supplementary Loan)* 77/82 3,500 1 - 3,499 - 8- Mogadishu Electricity 80/82 2,000 - - 1,763 - 9- Fifth Pan-Arab Telecommunications (Earth Stations) 99/82 1,200 - - - - 10- Afgoi-Baidoa Road* 112/83 5,000 - - 682 - 11- Expansion of Gezira Power Station 137/84 4,800 - - - - 12- Fisheries Development in the North 143/84 1,500 - - - - Subtotal 40,700 1,251 - 23,821 861 (14) Islamic Republic of Mauritania 1- Nouadhibou Power Station* 21/76 5,200 - - 5,200 5,200 2- Nouakchott-Kiffa Motorway (First Loan)* 25/76 7,000 - - 7,000 7,000 3- Guelbs Iron Ore Production* 49/79 10,000 1 - 9,999 9,999 4- Boghi-Kehidi Road Maintenance* 75/81 1,500 - - 1,500 1,500 5- Nouadhibou Power Station (Supplementary Loan)* 81/82 200 - - 200 200 6- Potable Water to the Rural Areas* 86/82 400 12 - 388 388 7- Fifth Pan-Arab Telecommunications (Earth Stations)* 104/82 1,200 77 - 1,123 1,123 8- Nouakchott Power (First Loan)* 105/82 3,000 - - 3,000 3,000 9- Nouakchott Power (Second Loan)* 106/83 2,300 - - 2,300 2,300 10- Telecommunications in Nouadhibou* 119/83 2,100 - - 2,100 2,100 11- Development Credit (First Loan)* 135/84 2,000 - - 2,000 2,000 12- Educational, Health and Veterinary Services* 139/84 4,500 2 - 4,498 2,710 13- Oases Development (Phase I)* 163/85 3,400 - - 3,400 1,980 14- Artisanal Fisheries Development in Nouadhibou* 178/86 3,200 425 - 2,775 1,164 15- Nouakchott Telephone/Telex Exchanges* 186/86 2,800 - - 2,800 2,800 16- Guelbs Iron Ore Production (Second Loan)* 202/87 1,300 - - 1,300 1,300 17- Development Credit (Second Loan)* 203/87 1,000 723 - 277 277 18- Wilayas Electricity Supply* 216/88 7,500 - - 7,500 576 19- Boghi-Kehidi Road (Second Loan)* 219/88 3,100 12 - 3,088 534 20- Domestic Satellite Network* 227/89 5,000 11 - 4,989 540 21- Mhaoudat Iron Ore Production* 269/92 6,000 - - 6,000 5,700 22- Nouakchott-Akjojot-Atar Road* 289/93 6,500 28 - 6,472 256 23- Oases Development (Phase II)* 297/94 2,400 - - 2,400 1,750 24- Nouadhibou Water Supply* 313/95 10,000 - - 7,887 4,896 25- Expansion of the Nouakchott Power Generating Station* 336/96 4,600 - - 4,537 3,400 26- Potable Water for the Interior Cities 343/97 3,500 - 119 2,451 1,175 27- Alag-Maqtaa Lehjar Road 347/97 3,500 1,460 - 2,040 2,040 28- Transmission of Electrical Energy from Manantali Dam to Mauritania* 352/97 8,000 - 403 7,371 1,412 29- Rehabilitation and Construction of 33 Small Dams in the 375/98 3,500 - 10 3,327 476 Area Adjacent to Achram* 30- Connecting Boghe to the Manantali Electrical Grid* 408/2001 4,000 - 35 3,842 - 31- Debt Reduction* 414/2001 14,000 - - 14,000 - 32- Nouakchott - Nouadhibou Road 419/2001 16,000 - 115 15,557 - 33- Nouakchott Water Supply from the Senegal River 454/2003 30,000 - 8,434 8,876 - 34- Expansion of Nouadhibou Power Generation Station 468/2004 7,000 - 37 102 -

* Completed Project. ANNUAL REPORT 2007 REPORT ANNUAL 81 Annex (5) Page 12 of 13

Loans Extended to Beneficiary Member Countries, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount Country/Project Loan No. Loans and ments Dur- ments as at as at of Loan Balances ing 2007 31/12/2007 31/12/2007 35- Nouadhibou Water Distribution Network 475/2005 4,000 - 1,181 1,621 - 36- Power Generation Stations for Interior Cities 481/2005 2,000 - 40 40 - 37- Atar - Tidjikja Road 509/2007 11,000 - - - - 38- Developing Water and Road Services in Rural Areas 510/2007 13,000 - - - - 39- Nouakchott Water Supply from the Senegal River 511/2007 37,000 - - - - (Supplementary Loan) 40- Lease Financing of Small and Medium-Size Projects and Enterprises (P)* 6P/2007 1,000 - 1,000 1,000 - Subtotal 253,700 2,750 11,374 152,960 67,797 (15) Sultanate of Oman 1- Gas Utilization* 29/76 6,000 1,517 - 4,483 4,483 2- Murayrat-Sohar Gas* 59/80 3,000 - - 3,000 3,000 3- Telecommunications* 120/83 3,000 - - 3,000 3,000 4- Sohar-Buraimi Power Station* 129/84 3,000 27 - 2,973 2,973 5- Fisheries Development* 162/85 3,000 1,706 - 1,294 1,294 6- Natural Gas Utilization (Phase IV)* 187/86 3,000 1,231 - 1,769 1,769 7- Water Desalination and Power for the Capital Area* 196/87 6,000 1,377 - 4,623 4,623 8- Natural Gas Utilization (Stage 2 of Phase IV)* 257/91 7,000 203 - 6,797 6,797 9- Mina Qaboos Port Development* 266/92 6,000 1,860 - 4,140 4,140 10- Ghubrah Power Generation and Water Desalination Station* 294/94 9,500 1,605 - 7,895 7,895 11- Industrial Estates in Rusayl and Nizwa* 302/94 6,000 1,249 - 4,751 4,751 12- Ghubrah Power Generation and Water Desalination Station (Phase V)* 310/95 9,000 821 - 8,179 8,179 13- Salalah Port Development* 354/97 15,000 - - 15,000 15,000 14- Meserrat Water Conveyance System* 388/99 11,000 397 40 10,603 10,603 15- Rimal Ash-Sharqiyah Water Distribution System* 401/2000 9,500 2,479 - 7,021 7,021 16- Khassab Port Development Project* 431/2002 4,500 695 - 3,805 232 17- Nizwa-Thamrit Road Rehabilitation - Phase II 441/2003 6,000 - 43 5,222 153 18- Expansion of Salalah Port (Phase II) 466/2004 22,000 - 4,707 10,676 - 19- Al-Ashkhara - Al-Khuwaymah - Shanna Road 479/2005 10,000 - 1,576 4,848 - 20- Muscat Southern Expressway 487/2005 40,000 - 4,222 9,079 - 21- Dualization of Al-Amerat - Quriyat Road 489/2006 20,000 - 2,825 2,825 - 22- Al Duqm Port 501/2006 35,000 - - - - 23- Reconstruction of Basic Infrastructure and Facilities 519/2007 60,000 - - - - Damaged by Cyclone Gonu Subtotal 297,500 15,168 13,413 121,982 85,912 (16) Palestine 1- Wadi Far’a Irrigation* 158/85 3,000 2,154 - 846 846 2- Widening and Strengthening of Salah Eldin Road 340/97 5,000 - 68 4,806 512 3- Development of Health Services* 341/97 3,000 1 - 2,999 154 4- Rehabilitation of the Education Services* 342/97 3,000 - - 3,000 229 5- The Rural Development Project 376/98 3,000 - 69 2,505 - Subtotal 17,000 2,156 138 14,155 1,740 (17) Republic of Djibouti 1- Third Pan-Arab Telecommunications* 67/81 1,000 - - 1,000 1,000 2- Djibouti Port Development* 89/82 1,500 - - 1,500 1,500 3- Fifth Pan-Arab Telecommunications (Earth Stations)* 98/82 1,100 251 - 849 849 4- Expansion of Boulaos Power Station - Phase I* 116/83 3,000 491 - 2,509 2,509 5- Animal Wealth Development* 130/84 1,900 10 - 1,890 1,890

* Completed Project. (P): Private Sector Project. ANNUAL REPORT 2007 REPORT ANNUAL 82 Annex (5) Page 13 of 13

Loans Extended to Beneficiary Member Countries, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount Country/Project Loan No. Loans and ments Dur- ments as at as at of Loan Balances ing 2007 31/12/2007 31/12/2007 6- Southwest Asia-Middle East-Western Europe (SEA-ME-WE) 159/85 1,900 2 - 1,898 1,898 Submarine Cable (First Loan)* 7- Development Credit** 171/86 700 700 - - - 8- Telecommunications Development* 197/87 400 113 - 287 287 9- SEA-ME-WE II Submarine Cable* 262/91 1,500 - - 1,500 646 10- Modernization of Boulaos Power Station - Phase II* 373/98 3,000 - - 2,999 444 11- Modernization of the Port of Djibouti (Phase IV)** 390/99 3,000 3,000 - - - 12- Social Housing 395/2000 5,000 - 28 4,782 488 13- Development of the Education Sector 412/2001 4,000 - 542 1,726 - 14- Modernization of Boulaos Power Station - Phase III* 436/2002 3,000 - - 2,917 - 15- Social Housing (Phase II) 456/2003 6,000 - 9 34 - 16- Boulaos Power Generation Station Project - (Fourth Phase)* 471/2004 4,000 - 1,119 2,304 - 17- Construction of Djibouti University 497/2006 5,000 - - - - Subtotal 46,000 4,568 1,698 26,193 11,510

Grand Total 5,817,725 478,882 274,528 3,811,326 1,733,680

* Completed Project. ** Fully Cancelled Loan. ANNUAL REPORT 2007 REPORT ANNUAL 83 Annex (6) Page 1 of 2

Loans Extended to Finance Inter-Arab Projects, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount of Project/Country Loan No. Loans and ments Dur- ments as at as at Loan Balances ing 2007 31/12/2007 31/12/2007 1- First Pan-ArabTelecommunications: Algeria* 10A/75 300 52 - 248 248 Morocco* 10B/75 3,000 802 - 2,198 2,198 2- Aden-Taiz Road: Yemen* 22A/76 3,800 - - 3,800 3,800 Yemen* 22B/76 6,500 - - 6,500 6,500 3- Navigation Inspection Unit: Algeria* 55/80 2,000 70 - 1,930 1,930 4- Second Pan-Arab Telecommunications: Jordan* 58/80 5,000 4,433 - 567 567 Syria* 60/80 2,700 918 - 1,782 1,782 5- Third Pan-Arab Telecommunications: Somalia* 66/81 1,700 - - 1,434 - Djibouti* 67/81 1,000 - - 1,000 1,000 Yemen* 68/81 1,400 - - 1,400 1,400 Yemen* 69/81 1,300 - - 1,300 1,300 6- Fourth Pan-Arab Telecommunications: Algeria* 71/81 4,500 153 - 4,347 4,347 Tunisia* 72/81 3,700 - - 3,700 3,700 7- Inter-Arab White Cement Industry (Jordan-Syria): Jordan* 78/82 5,000 - - 5,000 5,000 8- Potable Water to Rural Areas: Jordan* 82/82 700 - - 700 700 Tunisia* 83/82 600 88 - 512 512 Sudan* 84/82 1,800 73 - 1,727 1,727 Morocco* 85/82 1,300 1,135 - 165 165 Mauritania* 86/82 400 12 - 388 388 Yemen* 87/82 1,500 - - 1,500 1,500 Yemen* 88/82 700 80 - 620 620 9- Tartous-Latakia Motorway: Syria* 93/82 6,000 - - 6,000 6,000 10- Fifth Pan-Arab Telecommunications Earth Stations: Syria* 95/82 1,000 - - 1,000 1,000 Jordan* 96/82 1,000 - - 1,000 1,000 Yemen* 97/82 1,200 - - 1,200 1,200 Djibouti* 98/82 1,100 251 - 849 849 Somalia 99/82 1,200 - - - - Sudan* 100/82 1,300 223 - 1,077 1,077 Tunisia* 101/82 1,000 3 - 997 997 Algeria* 102/82 1,000 - - 1,000 1,000 Morocco* 103/82 1,000 - - 1,000 1,000 Mauritania* 104/82 1,200 77 - 1,123 1,123 Syria* 172/86 1,000 - - 1,000 1,000 11- Sixth Pan-Arab Telecommunications, Submarine Gulf Cable (Bahrain-Qatar-UAE): Bahrain* 113/83 3,000 - - 3,000 3,000 12- Zarqa-Almafraq - Syrian Border Road: Jordan* 118/83 4,000 - - 4,000 4,000

* Completed Projects ANNUAL REPORT 2007 REPORT ANNUAL 84 Annex (6) Page 2 of 2

Loans Extended to Finance Inter-Arab Projects, 1974 - 2007 (KD 000) Cancelled Disburse- Disburse- Repayments Amount of Project/Country Loan No. Loans and ments Dur- ments as at as at Loan Balances ing 2007 31/12/2007 31/12/2007 13- Damascus-Sanamein-Jordan Border Road: Syria* 128/83 9,000 - - 9,000 9,000 14- Geological and Water Mapping of Yemen: Yemen* 132/84 1,200 151 - 1,049 1,049 Yemen* 133/84 1,200 211 - 989 989 15- Fifth Pan-Arab Telecommunications Arabsat Earth Station: Iraq 141/84 5,000 - - 4,373 - 16- Seventh Pan-Arab Telecommunications Submarine Gulf Cable (Bahrain-Kuwait): Bahrain** 142/84 3,000 3,000 - - - 17- Mitigation of Earthquake Risks: Algeria* 117/83 4,700 3,704 - 996 996 Jordan* 148/84 450 182 - 268 268 Tunisia* 149/84 575 48 - 527 527 Iraq 150/84 525 - - 503 63 Syria* 151/84 575 11 - 564 564 Yemen* 152/84 600 1 - 599 527 Morocco* 153/84 600 6 - 594 594 Algeria (Second Loan)* 332/96 3,500 1,887 - 1,613 1,613 18- Pesticides Arab Joint Venture (Syria-Jordan): Syria** 154/84 1,900 1,900 - - - 19- Ruwaishid Pilot Scheme in Hammad Basin (Inter-Arab): Jordan* 184/86 1,500 4 - 1,496 1,496 20- Tenf Pilot Scheme in Hammad Basin (Inter-Arab): Syria* 185/86 1,700 - - 1,700 1,512 21- Hama-Saraqeb Road and Ain Eissa-Qintari Road: Syria* 214/88 8,000 31 - 7,969 5,917 22- Yemen Power Link: Yemen* 217/88 8,600 24 135 8,576 3,725 Yemen* 218/88 10,000 - 93 9,938 5,130 23- Jordan-Egypt Power Link: Jordan* 233/89 10,500 - - 10,500 7,040 Egypt* 234/89 34,100 3,339 - 30,761 19,465 24- Tunisia-Libya Power Link: Tunisia* 243/90 17,800 - - 17,800 3,240 Libya* 244/90 2,200 - - 1,416 335 25- Strengthening Local Transmission Network within Morocco-Spain Electric Power Link: Morocco* 299/94 18,500 4,628 - 13,872 7,222 Morocco (Supplementary Loan)* 337/96 7,000 3,428 - 3,572 1,436 26- Interconnection of Jordan-Syria Electric Power Grids: Jordan* 311/95 19,500 - - 19,500 6,545 Syria* 312/95 30,000 - 457 25,579 10,010 27- Interconnection of Syria and Turkey Electric Power Grids: Syria 314/95 26,000 - 1,040 22,946 4,740 28- Interconnection of the Libyan and Egyptian Power Grids: Libya* 326/96 12,000 - - 9,410 4,140 29- Interconnection of the Lebanese and Syrian Electric Grids at 400 kV: Lebanon 400/2000 8,000 - 9 2,718 - Total 322,125 30,925 1,734 272,893 160,773 * Completed Project. ** Fully Cancelled Loan. ANNUAL REPORT 2007 REPORT ANNUAL 85 Annex (7)

Grants Committed and Disbursed, 1974 - 2007 (KD 000)

Cancelled Percent Total Disbursements Amount Net Amount Balance of Beneficiary Country Grants and of Total Approved Approved During Until Grants Balances (%) 2007 31/12/2007 A. National Grants:

1- Hashemite Kingdom of Jordan 5,389 47 5,342 4.2 198 4,084 1,258 2- Republic of Tunisia 1,090 109 981 0.8 39 601 380 3- Algerian Democratic and People’s Republic 1,635 6 1,629 1.3 14 759 870 4- Republic of Sudan 9,070 181 8,889 6.9 1,040 5,461 3,428 5- Republic of Iraq 820 7 813 0.6 - 657 156 6- Kingdom of Saudi Arabia 670 4 666 0.5 128 480 186 7- Syrian Arab Republic 3,270 885 2,385 1.8 97 1,673 712 8- Great Arab Libyan People’s Socialist Jamahiriya 345 - 345 0.3 - 45 300 9- Arab Republic of Egypt 9,205 406 8,799 6.8 170 5,900 2,899 10- Republic of Yemen 6,275 486 5,789 4.5 580 3,300 2,489 11- State of Kuwait 2,315 - 2,315 1.8 255 1,385 930 12- Republic of Lebanon 9,894 804 9,090 7.1 127 7,143 1,947 13- Kingdom of Morocco 4,300 149 4,151 3.2 155 2,659 1,492 14- United Arab Emirates 66 - 66 0.1 - - 66 15- Kingdom of Bahrain 1,310 115 1,195 0.9 - 1,045 150 16- State of Qatar 50 - 50 0.1 - 36 14 17- Somali Democratic Republic 320 86 234 0.2 - 234 - 18- Islamic Republic of Mauritania 4,725 680 4,045 3.1 4 2,550 1,495 19- Sultanate of Oman 4,600 15 4,585 3.6 1,655 2,786 1,799 20- Palestine* 25,510 872 24,638 19.2 86 24,329 309 21- Republic of Djibouti 700 - 700 0.5 54 641 59 Subtotal* 91,559 4,851 86,708 67.5 4,602 65,770 20,938 B. Inter-Arab Grants: 43,417 1,752 41,665 32.5 1,939 34,491 7,174 Grand Total* 134,976 6,603 128,373 100.0 6,541 100,261 28,112

* Does not include an amount of about KD 50.7 million allocated by the Arab Fund Board of Governors to support the Palestinian people, repre- senting 10% of net income earned in 2001, 2003, 2004, 2005 and 2006. ANNUAL REPORT 2007 REPORT ANNUAL 86 Annex (8)

Co-financing Activities of the Fund, 1974 - 2007

Total Amount Contributors Percentage (%) (KD Million) 1. (A) National and Regional Development Institutions

Arab Fund for Economic and Social Development 2,851.0 35.7 Kuwait Fund for Arab Economic Development 896.2 11.2 Abu Dhabi Development Fund 193.0 2.4 Saudi Development Fund 349.3 4.4 Islamic Development Bank 483.8 6.1 OPEC Fund for International Development 66.9 0.8 Iraqi Fund for External Development 5.0 0.1 Libyan Arab Foreign Bank 3.0 0.04

Subtotal 4,848.2 60.7

(B) Other Arab Sources 466.8 5.9 2. International Financial Institutions

World Bank 558.9 7.0 International Fund for Agricultural Development (IFAD) 54.3 0.7 African Development Bank 408.8 5.1

Subtotal 1,022.0 12.8

3. Foreign Governments and their Development Institutions 1,644.9 20.6

Grand Total 7,981.9 100.0 ANNUAL REPORT 2007 REPORT ANNUAL 87 ANNUAL REPORT 2007 REPORT ANNUAL 88