Seychelles has signed two loan agreements worth US $31 million with the Arab Bank for Economic Development in Africa (Badea) and the Saudi Fund for Development (SFD) to finance a 33KV electricity network project in South Mahé.
The loans, US $20 million of which comes from SFD and US $11 million from Badea, were signed in the conference room of the Ministry of Finance, Trade and the Blue Economy at Liberty House by Minister Jean-Paul Adam on behalf of the government of Seychelles and the chairman of Badea and managing director of SFD, H E Eng Yourself Ibrahim Al Abdulrahman Al Bassan.
The money will be disbursed to the Public Utilities Corporation (PUC) to carry out the project, which is aimed at improving the electricity network in South Mahé to enable efficient transport of energy to meet the increasing demand of the residential and tourism activities, as well as trade and service centres on Mahé.
It will also help promote activities on which the country depends and improve medical and educational care by providing reliable power to hospitals and schools.
Speaking after the signing, Minister Adam said the loan agreement reflects the partnership between Badea and SFD that has been exemplary and that both will continue to work closely together to implement projects which allow Seychelles to move forward.
He said such projects which address critical infrastructure are not only important for our immediate needs to address the country’s population needs but also important to allow other investments to come.
“I appreciate this opportunity today to formulate once again this agreement which allows us to work together for the development of Seychelles,” he said.
Mr Bassan said the signing signifies the brotherly relations that bind the two governments, Badea and Saudi Fund on the one hand, and the Arab world and Seychelles on the other.
“These relationships transcend the financial and economic interests to include the cultural and political relationships that go back in history. Our meeting also symbolises our strong resolve to further consolidate the cooperation between Badea and the Saudi Fund and your esteemed country,” said Mr Al Bassan.
Financing by the Arab financing institutions together to Seychelles amounts to more than US $164 million as at December 2014.
Source : Seychelles NATION