KUWAIT FUND SIGNS $17 MILLION LOAN AGREEMENT WITH

UNCLAS KUWAIT 001200 SIPDIS SIPDIS STATE FOR NEA/ARP, EB, LONDON FOR TSOU, PARIS FOR ZEYA, TREASURY FOR AHMED SAEED E.O. 12958: N/A TAGS: PGOV PREL ECON EAID KU SUBJECT: KUWAIT FUND SIGNS $17 MILLION LOAN AGREEMENT WITH LEBANON REF: KUWAIT 399 ¶1. (U) In an April 4 ceremony in Beirut, the Director General of the Kuwait Fund for Arab Economic Development (KFAED) Abdulwahab Al-Bader signed a $17 million loan agreement with the Government of Lebanon (GOL) to finance a water project in the country. ¶2. (U) KFAED Regional Manager for Arab Countries Marwan Al-Ghanem (attendee at signing) informed Econoff in February (reftel) that the loan is a supplement to an existing $34 million KFAED bilateral loan with the GOL. The assistance marks KFAED's renewed assistance program with Lebanon after a four-year hiatus. Background on Kuwait Fund for Arab Economic Development -------------- -------------- ¶3. (U) KFAED is the GOK's primary vehicle for providing assistance and aid to other countries. It was founded the same year that Kuwait gained its independence, 1961, and was originally intended to assist Kuwait's Arab neighbors. In 1974 its mandate was expanded to include all developing countries. To date, KFAED has committed over $11.5 billion in low interest loans to 101 countries through 650 separate projects, has provided over $323 million in grants and technical assistance, and has contributed $1.15 billion to other development institutions. ******************************************** For more Embassy Kuwait reporting, see: http://www.state.sgov.gov/p/nea/kuwait/cables Or Visit Embassy Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ ******************************************** TUELLER