Activities in East Eng.Indd
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Loans & Grants and Technical Assistance For East, South Asia & the Pacific th as of 30 September. 2009 Tel: (+965) 22999 000 - Fax: (+965) 22999 090 P.O.Box: 2921 Safat, Kuwait 13030 www.kuwait-fund.org Kuwait Fund For The Arab Economic Development Kuwait Fund was Established at 31st Over the last forty eight years, Kuwait Fund December 1961 to Assist Arab and other developing for Economic Development has witnessed an countries in developing their economies. accelerated improvement. After the two years The decision of its foundation reveals a deep from its foundation, its capital was doubled to be insight and obviously reflects the wisdom of the KD 100 million and as soon as three years had passed, the capital was doubled again to reach KD political leadership. Over these years, The Fund 200 million by 1996. has played a significant role to serve the objectives of the Foreign Policy of the State of Kuwait. With the development of the comprehensive vision of development aids and the officials broad The idea and the objectives were an perspective, it was decided in 1974 to extend the embodiment of the Late Sheikh Jaber Al-Ahmed Fund’s activities to cover the other developing Al-Jaber Al-Sabah. The idea came to his mind countries in addition to the Arab countries. when His Highness was the Minister of Finance Consequently, The Fund has expanded its activities then. geographical area in the middle of the 1970s and In December 1961, The Fund was born with during the 1980s to include African and Asian a capital of KD 50 million. The Fund was unique developing countries. After The Fund capital had in the region and it was the first developmental been doubled five times in 1974 to reach KD 1000 institution there. million and to provide more resources to sustain Kuwait felt the needs of the peoples of development efforts in the developing countries, developing countries, Arab or Non-Arab, and the Fund’s capital was increased to reach KD 2000 million. During the period from 1961/1962 to this feeling increased with oil discovery in State 1985/1986, Kuwait Government paid the amount of Kuwait and the early flow of prosperity to its of KD 970 million of the due capital while the people. Although Kuwait itself is classified among balance was covered by the Fund’s own resources the developing countries, this could not make it (Net annual profits). Hence, the Fund’s capital preoccupied only with its economy development was paid in full in the fiscal year 1997/1998. without paying any care to development all over During the last five decades, the Fund’s the world. However, as a developed country, it was activities covered 101 countries where most of close to the understanding of the other developing them have no Kuwaiti Embassy, which refers to countries reality. Kuwait has not hesitated to the importance of the development role of the Fund deduct a considerable portion of its national to consolidate cooperation with such countries income for economic development projects in such and other countries in addition to its role in the countries. consolidation of friendship relations with other With the sunrise of Kuwait independence developing countries. It is well known that the in 1961, The Fund came to existence in order to developing countries, which the Fund contributed offer development aids to Arab countries, then to gain their friendship initiated to condemn the the developing countries in general. Over years Iraqi aggression and invasion of Kuwait and stood The Fund acquired experience and expertise beside State of Kuwait in terms of its fair issues. in this field and in the field of cooperation and The number projects, which the Fund co-ordination with international, regional and participated in their financing as at 30 /9/ 2009 national developmental institutions to serve reached (760) projects and the total amount of the development, eliminate obstacles and, to solve the loans offered to their finance is about 4.209 KD problems facing development projects. million. 2 The number of technical assistance / grants It may strike the mind that the Fund’s loans and institutions offered by the Fund reached 215 are not to reimburse. The fact is the contrary, as grants and technical assistance with a total value of the loans are executed under agreements, which K.D. 101 million till 30 /9/ 2009 and a considerable bind the borrowing countries to reimburse the portion was allocated to cover the feasibility loans according to time schedules of recovery. The studies of such projects. It is worth mentioning total amount of the reimbursed amounts from that the Fund’s loans are irrevocable as they are the loans up till 30th / 9 / 2009 KD 1957 million. sovereign loans and the over due amounts are to The Fund finances its activities depending upon be reimbursed on such ground. its own resources, i.e. the net profits and the The Fund’s policy is established on the basis reimbursement installments of the redeemed of submitting financial aids to the countries in the loans. form of soft loans in terms of interest rate, grace It is worth mentioning that the Fund continued period and reimbursement period of the loans to carry out its duties and liabilities during the corresponding with the Fund’s objectives to help Iraqi occupation period, which increased the world developing countries in order alleviate their peoples appreciation of State of Kuwait. The Fund entered suffering. The Fund has participated through into eleven new agreements during the occupation granting loans in the finance of many development period in order to finance development projects projects, which have top priority in the beneficiary in some countries with a total value of about KD countries. These projects had positive effects on 116.8 million. the beneficiary countries’ economies in general These efforts strengthened the relations of the and on the sectors within which these projects are State of Kuwait with such countries. Therefore, located in particular. the Fund activities have achieved a political return beside the economical one. Technical Assistance: Furthermore, the Fund succeeded in providing In addition to the direct loans, The Fund’s opportunities to the Kuwaiti private sector to activities have expanded to include the technical participate in the execution of the projects financed aids to finance the preparation of the technical by the Fund. It is estimated that the share of the and economic feasibility studies for different Kuwaiti consultancy companies, Contractors and developmental projects in order to verify their manufacturers in the execution of the borrowing technical safety and economical feasibility. This countries’ projects is about 7% of the withdrawals is in addition to the submission of technical aids value to finance such projects. The Fund has to train local national cadres of these countries in focused its activities up till 30/9/2009 on the addition to the provision of specialized experience main sectors such as agriculture, transportation, to help such countries in the preparation of their telecommunication, electricity, sanitary drainage developmental programs. and industry. The Fund’s board of directors has recently passed a decision for approval of the Fund’s Support of Developmental Institutions: participation in financing projects in education Beside the direct loans and technical aids, the and health sectors in view of their increasing Fund contributes to the resources of a number of importance in the course of the comprehensive regional and International financing institutions. development. 3 Profile PROFILE AMOUNT AMOUNT AS OF 30 th September 2009 (K.D. Million) (U.S.$ Million) Authorised and Paid Up Capital 2000 6600 Total Reserves 2.209 7510.6 Loans Commitment 4209 14309 Total Disbursements of Loans 3491 1187 Total Repayments of Loans 1957 6653 Amount of Kuwait Fund Grants 91 309 Amount of Technical Assistant 10 35 Amount of Technical Assistant 286 973 Contribution to Development Institution (Paid Up) 312 1029 Number of Loans 760 Number of Beneficiary Countries (Loans) 101 Number of Kuwait Fund Grants 169 Number of Technical Assistant 46 Number of Kuwait Government Grants 37 Number of Beneficiary Countries & Institution (K.F. Grants) 75 Number of Beneficiary Countries & Institution (Tech. Assistance) 36 Number of Beneficiary Countries & Institution (Kuwait Govt. Grants) 24 Sectoral Distribution of Fund Loans East, South Asia & Pacific as at 30 th September 2009 No.of Amount K.D Amount U.S $ Per Sector Loans (million) (million) % Transportation 54 287.8 978.5 35.26% Agriculture 22 100.6 342 12.32 % Industry 21 125.2 425.5 15.34 % Energy 38 247 840 30.27 % Water and Sewerage 3 16.7 57 2.05 % Social 3 18 61 2.21 % Development Banks 1 1.4 5 0.18 % Others 3 19.3 66 2.37 % Total 145 816 2.775 100 % 4 Sectoral & Georgraphical Distribution of Loans as of 30 th September 2009 Loan Loan No. of No. of Per Countries Amount Amount countries Loans % ( K.D. Million) ( U.S.$ Million) Arab Countries 16 291 2.291 7.787 %54.42 Central, Asia and Europe Countries 16 52 262 889 %6.21 Central, South & East African Countries 21 102 312 1.061 %7.41 East, South Asia & the Pacific Countries 18 145 816 2.775 %19.39 Latin America & the Caribbean Countries 11 37 105 358 %2.5 West African Countries 19 133 423 1.439 %10.06 Total 101 760 4.209 14.309 %100 Sectoral Distribution of Loans (Percentage) Transportation 35.69 % Energy 24.67 % Agriculture 12.49 % Industry 8.03 % Water & Sewerage 9.54 % Communications 2.4 % Development Bank 3.13 % Social 2.95 % Others 1.09 % Geographical distribution of Loans (Percentage) Arab Countries 54.42 % East South Asian & Pacific Counties 19.39 % Central, South & East African Countries 7.41 % Central Asian & Euoropean Countries 6.21 % West African Countries 10.06 % Latin American & the Caribbean Countries 2.45 % 5 ISLAMIC STATE OF AFGHANISTAN The Republic of Afghanistan is considered one of the many countries to benefit from Kuwait Fund.