Sultanate signs RO150mn loan agreements to finance development projects

Muscat - 

The Ministry of Finance and the Arab Fund for Economic and Social Development (AFESD) on Monday signed two loan agreements worth RO150mn for financing development projects in the sultanate.

The two agreements were signed by H E Darwish bin Ismail bin Ali al Balushi, Minister Responsible for Financial Affairs and Abdullatif Yousef al Hamad, chairman and director general of AFESD. The first agreement worth RO89mn will be utilised in financing part of the project for enhancing the water pipelines in the governorates of Batinah (from Sohar to Barka). The funding represents 70 per cent of the total cost of the project (RO127mn). The project will meet the growing demand for potable water and the growing future needs of the governorates of North Batinah and South Batinah. The water pipeline will be extended from Barka water desalination and Sohar water desalination plants, which are almost completed.

The 140km water pipelines will reduce water service interruption in both governorates. It will also meet the needs of the industrial, tourism projects and public utilities in both the governorates. The second agreement worth of RO61mn will be utilised in financing the improvement and expansion of the third and fourth parts of Sinaw-Mahout-Duqm road. The funding represents 70 per cent of the total cost of the project (RO86.8mn).

The project seeks to improve land transport services at the main interchanges of the road network, meeting the needs of growing transport activity, reducing traffic accidents and enhancing the socio-economic growth in the areas through which the project passes. The project includes a parallel road to the existing road, in addition to improving and expanding the 129km road between Sinaw, Mahout and Duqm. The road consists of two lanes, each 3.75m wide, with 2.5m-wide side shoulders in each direction.

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