OFID signs three loan agreements to boost socio-economic development in partner countries

OFID Director-General, Mr. Suleiman J. Al-Herbish, and
HE Ivan Acosta Montalvan, Minister of Finance and Public Credit of Nicaragua.

On April 21, 2012, OFID Director-General, Mr. Suleiman J. Al-Herbish, signed three loan agreements with the Ministers of Finance of Burundi, Nicaragua and Panama in support of the transport, energy and water supply and sanitation sectors respectively, for a total amount of US$44 million. The agreements were signed on the sidelines of the IMF and World Bank Spring Meetings held from April 20 – 22 in Washington, DC. The loan agreements are as follows:

  • Burundi. US$8 million. Bujumbura-Nyamitanga Road Project. To help promote socioeconomic development in northwest Burundi through the construction of a road that will facilitate the movement of agricultural goods and people residing in some of the poorest provinces in the region. HE Tabu Abdallah Manirakiza, Minister of Finance and Economic Development Planning of Burundi, countersigned the agreement.
  • Nicaragua. US$16 million. National Program for Sustainable and Renewable Energy. To help boost the availability and quality of Nicaragua’s energy supply and connect currently unserved populations to the electricity grid, thus increasing coverage from 65% to over 85%, including 117,000 new users in 3,666 rural communities.Co-signing the agreement was HE Ivan Acosta Montalvan, Minister of Finance and Public Credit of Nicaragua.
  • Panama. US$20 million. Panama City and Bay Sanitation Project. To construct new sewerage facilities in low-income settlements, benefiting approximately 1.2 million people living in the Panama City’s Metropolitan Area. The agreement was co-signed by HE Frank De Lima, Minister of Economy and Finance of Panama.

Mr. Al-Herbish congratulated the Ministers on their countries' progress in enhancing socio-economic development in their respective countries. The Director-General affirmed OFID’s continuing support, particularly for energy-related projects as the institution was strongly committed to supporting its partner countries’ efforts towards combating energy poverty.