Kuwait Fund For Arab Economic Development : Signature of a Tripartite Agreement for Utilization (from the Grant of the Government of State of Kuwait) for Financing the Cities and Villages Development Bank’s Operations Support Project

A Tripartite Agreement was signed today in the city Amman between the Government of the Kingdom of Jordan, Kuwait Fund for Arab Economic Development and the Cities and Villages Development Bank concerning the Utilization of US$ 14,100,000 from the Grant of the State of Kuwait, administrated by the Fund, for financing the Cities and Villages Development Bank's Operations Support Project.

The Agreement was signed on behalf of the Government of the Kingdom of Jordan by His Excellency Eng. Emad Fakori, Minister of Planning and International Co-operation of the Hashemite Kingdom of Jordan, and on behalf of the Cities and Villages Development Bank by Zeyad AlAdhayla Director of the Cities and Villages Development Bank, whereas Mr. Abdulwahab Al-Bader, Director-General of Kuwait Fund for Arab Economic Development signed the agreement on behalf of the Fund.

The project aims at the reduction of unemployment, improvement of public services and enhancing living conditions of the inhabitants in the Municipalities through supporting the financial position of the Bank to enable it to utilize the Grant in extending loans with a view of financing about 26 Projects for public services and enhancing of living conditions of the inhabitants of the aforesaid Municipalities.

The Project consists mainly of the following components:

1. Support of programs of projects for improving internal roads
2. Support of programs of various projects and various sports stadiums.
3. Support of programs of projects for procurement of machinery for garbage collection needed to function constantly.
4. Support of programs for projects for the establishment of public gardens

The Bank provides concessional loans to the Municipalities in accordance with its Law and Charter and guidelines.The value of the said loans varies between 10 thousand to 5 million Jordanian Dinars with a maturity varying between one to ten years and interest rate of 6%.

It is worth mentioning that the Fund has already made 26 loans to the Hashemite Kingdom of Jordan, amounting in total to about KD 170.5 million(equivalent to about U.S.$ 580 million) for the financing of projects in various sectors. Besides, Government of Kuwait Grant to the Hashemite Kingdom of Jordan amounting to U.S. $ 1.25 billion, the Fund made 6 technical assistance and grants amounting in total to about KD 3.1 million (equivalent to about U.S.$ 9 million) to finance technical and feasibility studies in various sectors.