Arab Fund. for Economic & Social Development

Transcription

1 Arab Fund for Economic & Social Development

2 Arab Fund for Economic & Social Development Annual Report 2017 Arab Fund for Economic & Social Development P.O. Box: Safat 13080, Kuwait Telephone: Facsimile: / 91 / 92 Electronic Mail: admin@arabfund.org Internet Web Site: Address: Arab Organizations Headquarters Building Airport Road, Shuwaikh State of Kuwait

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4 Arab Fund For Economic & Social Development Member States, Governors and Alternate Governors Member States (1) Governors (2) Alternate Governors (2) The Hashemite Kingdom of Jordan H.E. Mr. Imad Najib Fakhoury H.E. Dr. Saleh A. Al-Kharabsheh The Republic of Tunisia H.E. Mr. Zied Laadhari - The Algerian Democratic and People s Republic H.E. Mr. Abderrahmane Raouya - The Republic of Sudan H.E. Dr. Mohamed Osman Al Rikabi - The Republic of Iraq - - The Kingdom of Saudi Arabia H.E. Mr. Mohammed Bin Abdullah Al Jadaan - The Syrian Arab Republic - - State of Libya H.E. Mr. Osama Saad Hamad Saleh - The Arab Republic of Egypt H.E. Dr. Hala Helmy El Said H.E. Dr. Sahar Nasr The Republic of Yemen H.E. Dr. Muhammad Saeed Al Saadi H.E. Dr. Mohamed Ahmed Ali Al- Hawri The State of Kuwait H.E. Dr. Naif Falah Al Hajraf H.E. Mr. Abdulwahab Al-Bader The Republic of Lebanon H.E. Mr. Nabil Adnan Al-Jisr H.E. Mr. Alain Bifani The Kingdom of Morocco H.E. Mr. Mohamed Boussaid H.E. Mr. Zouhair Chorfi United Arab Emirates H.E. Mr. Obaid Humaid Al-Tayer - The Kingdom of Bahrain H.E. Sheikh Ahmed Bin Mohammed Al-Khalifa H.E. Mr. Yousif Abdulla Humood The State of Qatar H.E. Mr. Ali Shareef Al Emadi - The Somali Democratic Republic* The Islamic Republic of Mauritania Sultanate of Oman H.E. Mr. El Moctar Ould Djay H.E. Mr. Darwish Bin Ismaeel Bin Ali Al-Bulushi - - H.E. Mr. Abass Sylla - Palestine H.E. Dr. Mohammad Mustafa H.E. Mr. Nasser Qatami The Republic of Djibouti H.E. Mr. Ilyas Moussa Dawaleh - The Union of the Comoros H.E. Mr. Said Ali Said Chayhane - (1) States are listed in the order in which their names appear in the list of signatories to the Agreement Establishing the Fund, and according to the date of adhesion to the Agreement. (2) Names of Governors and Alternate Governors are given. * Membership suspended pursuant to the Board of Governors Resolution No. 3 of 1993, which has been extended annually by subsequent resolutions of the Board of Governors until Annual Report

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6 Board of Directors Director General/Chairman of the Board of Directors Mr. Abdlatif Y. Al-Hamad Members of the Board Mr. Abdulwahab Al-Bader Dr. Fahad Ibrahim Al Shathri Mr. Djamel Kheznadji Mr. Taher Sarkez Dr. Shehab Eldin Marzban Mr. Saeed Rashid Al Yateem Mr. Ali Bin Mohammad Redha Bin Jaffar Mr. Fouzi Lekjaa Annual Report

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8 Basic Financial Data on the Arab Fund (KD Million) Capital* Total Resources Loans Number of Loan Agreements Signed During the Year 13 Total Amount of Loan Agreements Signed During the Year 458 Total Number of Loans 663 Cumulative Amount of Loan Agreements Signed Cumulative on Effective Loans Cumulative Loan Repayments Outstanding Debt Owed to the Arab Fund Grants Total Number of National and Inter-Arab Grants 1143 Cumulative National and Inter-Arab Grant Commitments Cumulative National and Inter-Arab Grant Cumulative Contributions to the Urgent Program to Support the Palestinian People (1) Cumulative for the Urgent Program (1) * During its Annual Meeting held on April 2, 2013, the Board of Governors resolved to increase the authorized capital of the Arab Fund to KD 4 billion and to raise the subscribed capital to KD 3 billion. This capital increase is to be effected through the capitalization of part of the additional reserve in the amount of KD 500 million, and by means of additional subscriptions by member states in the aggregate amount of KD 500 million, to be paid in installments over 5 years. The amount mentioned above represents the paid-in capital. (1) Includes contributions to the Program to Support the Resistance of Jerusalem (1 st and 2 nd ). Annual Report

9 Overview of Arab Fund Activities Introduction During 2017, the Arab Fund s lending program focused on continued support to Arab countries efforts in implementing high-priority economic and social projects. Priority was given to infrastructure projects aimed at providing facilities and basic services, increasing production capacity, and improving the investment environment in Arab countries. Furthermore, the Arab Fund continued to allocate national and inter-arab grants to member countries aimed at providing institutional support and training, contributing to the financing of general studies and research, as well as organizing seminars and conferences, in addition to providing support to the Palestinian people through the Urgent Program. Loans During the year, the Arab Fund extended 13 loans, in 7 Arab countries, for a total amount of KD million. These loans contributed to the implementation of 13 projects, including 12 new and 1 previously financed project. The total cost of these projects was estimated at about KD million, with the loans provided by the Arab Fund covering about 49.3% of that amount. The share of loans provided to the energy and electricity sector represented about 39.3% of the total loan commitments during the year, that of the transport and telecommunications sector about 33.0%, that of the water and sewerage sector about 20.7%, and that of the industry and mining sector about 7.0%, of the total amount of loans. Cumulative Loans Since the commencement of its activities in 1974 and until the end of 2017, the cumulative number of loans provided by the Arab Fund to the public and private sectors has reached 663 for a total amount of about KD 9.7 billion. These loans contributed to the financing of 562 projects in 17 Arab countries, and covered about 26.2% of the total cost of these projects. The infrastructure sectors received the majority of loans extended during that period, with a share of about 70.9% of the total amount of loans, followed by the productive sectors with about 19.4%, then the social services sectors with about 6.8%, and the other sectors with about 2.9%. The cumulative number of loans extended to the private sector over that period has reached 14, for a total amount of about KD 56.0 million. Cumulative disbursements of loans extended to both the public and private sectors over the period amounted to about KD 6.3 billion, representing about 75.3% of the net amount of effective loans. The Arab Fund also contributed to the capital of 7 private companies, for a total amount of about KD 31.7 million, in addition to its contribution to the capital of the MENA Fund established by the International Finance Corporation (IFC), in the amount of KD 10.0 million. 8 Annual Report 2017

10 Grants The Arab Fund provided 32 national and inter-arab grants in 2017, for a total amount of about KD 7.2 million. These grants included 16 national grants for a total amount of about KD 4.8 million, about 68.3% of which was allocated for emergency programs, about 27.6% for institutional support and training, and about 4.1% for feasibility studies and project preparation. The grants also included 16 inter-arab grants for a total amount of about KD 2.4 million, about 85.7% of which was allocated for institutional support and training and about 14.3% for seminars and conferences. The Arab Fund also continued its annual contribution to support the resistance of the Palestinian people, allocating during 2017 about KD 5.9 million to the fifteenth phase of the Urgent Program. Cumulative Grants The cumulative amount of grants extended by the Arab Fund, since the commencement of its operations and until the end of 2017, has reached about KD million, of which about KD million were provided for the implementation of 602 national grants, about KD 68.1 million for the implementation of 541 inter-arab grants, about KD million as contributions to the 15 phases of the Urgent Program to Support the Palestinian People, which began in 2001, and about KD 29.7 million as contributions to the Program to Support the Resistance of Jerusalem, during the years 2010 and Total disbursements of these grants amounted to about KD million, or about 85.4% of their net amount. Joint Arab Action The Arab Fund continued, in 2017, its activities in various areas in support of priority sectors and in response to decisions and directives of Arab summits, which accorded a special importance to projects and issues related to joint Arab action. In this context, these activities included coordination between the Arab national and regional development institutions, and cooperation with international institutions, enhancement of Arab food security, support to small and medium enterprises, financing of Arab trade, establishment of an Arab Development Portal, preparation of the Joint Arab Economic Report, cooperation with the World Bank in the Arab Spring Development initiative, and support to Arab and regional institutions activities. Financial Statements According to the Arab Fund s financial statements for the year ending, total income was about KD million compared to about KD million in 2016, while total administrative expenses were about KD 8.67 million compared to about KD 8.52 million in The Arab Fund s net profit for the year 2017 was about KD million, compared to about KD million for the year The statements also show that total member countries equity was about KD million, compared to about KD million at the end of Annual Report

11 First: The Lending Program Preamble During 2017, the Arab Fund continued to support projects that have high priority in the development plans of Arab countries and strengthen their economic and social development efforts. The lending program for the year focused mainly on projects in the energy and electricity sector, the transport and telecommunications sector, and the water and sewerage sector. The program also included projects in the industry and mining sector. Appraisal of Projects and Loan Agreements Signed During the year, the Arab Fund studied several requests it received from member countries for financing projects. These projects were appraised by the Arab Fund s technical staff through office work and field trips to ensure their technical and economic feasibility, and their conformity with development program priorities in member countries. A total of 13 loan agreements were signed during the year, for a total amount of KD million. These loans contributed to the financing of 13 projects in 7 Arab countries. The total cost of these projects was estimated at about KD million, with the loans provided by the Arab Fund covering about 49.3 % of that amount. Effective Loan Agreements A total of 10 loan agreements with 7 Arab countries, amounting to KD million, became effective in These loans were provided for the implementation of projects in the sectors of transport and telecommunications, agriculture and rural development, water, energy and electricity, and housing. Public Sector Projects The Arab Fund extended 13 public sector loans during the year, amounting to KD million, for the implementation of 12 new projects and 1 previously financed project. Table 1 shows the loan commitments by the Arab Fund during 2017, and Annex 1 provides the project sheets for these loans. 10 Annual Report 2017

12 Table 1 Loan Commitments During 2017 No. Country Project Amount of Loan (KD Million) Date of Signature of Loan Agreement 1 Republic of Djibouti 2 Arab Republic of Egypt 3 Republic of Tunisia 4 5 Islamic Republic of Mauritania Hashemite Kingdom of Jordan 6 Republic of Sudan 7 8 Islamic Republic of Mauritania Islamic Republic of Mauritania Completion of the Rehabilitation and Reinforcement of the Drinking Water Distribution Network in Djibouti Construction of a 50 Megawatt Photovoltaic Power Station in the City of Kom Ombo Construction of Bridges on Classified Roads 20 18/04/ /04/ /04/2017 Rehabilitation of the Guelb (1) Plant 32 18/04/2017 Irbid Ring Road (Phase I) 15 18/04/2017 Construction of El Bagair Power Generating Station Water Supply to the Cities of Laayoune and Djiguenni, and Neighboring Villages Electrical Interconnection Between Nouakchott and Zouerate on 225 kv 52 18/04/ /07/ /07/ Republic of Tunisia Tunis Jelma Motorway 50 11/07/ Hashemite Kingdom of Jordan 11 Sultanate of Oman 12 Sultanate of Oman 13 Arab Republic of Egypt As Salt Ring Road 14 11/07/2017 Development of Part of Road 32 in the Special Economic Zone of Duqm Reinforcement of Desalinated Water Transmission Lines in Ash Sharqiyah Governorates Development of the Electric Transmission Grid 52 12/07/ /11/ /11/2017 Total 458 Annual Report

13 Infrastructure sectors accounted for about 93.0% of the total amount of loans provided during 2017, in light of priorities set in member countries plans and programs that focused on improving these sectors, and providing an environment conducive to investment and employment opportunities. In this context, four loans were extended to finance energy and electricity projects, and amounted to KD million or about 39.3% of the total. These projects aim at meeting the increasing demand for electricity, through the construction of power generating stations in Egypt and Sudan, the development of the electric transmission grid in areas with high electric loads in Egypt, and through the electrical interconnection between Nouakchott and Zouerate in Mauritania. Five loans were extended to finance transport projects, amounting to KD million or about 33.0% of the total amount of loans extended during the year. These projects aimed at constructing and developing roads in Jordan, Tunisia and Oman, as well as the construction of bridges in Tunisia. Three loans were also extended to finance water and sewerage projects, for a total amount of KD 95.0 million or about 20.7% of the total. The first loan was allocated for the completion of the rehabilitation and reinforcement of the drinking water distribution network in Djibouti, the second loan was allocated for the supply of water to the cities of Laayoune and Djiguenni and neighboring villages in Mauritania, and the third loan was allocated for the reinforcement of desalinated water transmission lines in Oman. The Arab Fund s loans for the year also included a loan for an amount of KD 32.0 million or about 7.0% of the total amount of loans, for the rehabilitation of the Guelb (1) plant in Mauritania. Private Sector Projects The Arab Fund works to support the role of the private sector in the economic and social development of Arab countries. During the year, the Arab Fund approved a contribution to the financing of a project to build a campus for a private university in Bahrain, through a subscription to the capital of the company which owns the project, and approved, in principle, the provision of a loan to the company. The Arab Fund also approved a contribution to the capital of a real estate company which is constructing a commercial and residential center in Morocco. It also studied several requests to participate in the financing of private sector projects in 7 Arab countries; they included projects in the industry, agriculture, fisheries, cattle herding, energy, real estate, tourism, investment and health sectors. These requests are still under study. Monitoring of Public and Private Projects The Arab Fund continued to monitor the progress of ongoing projects, follow up the fulfillment of the covenants set forth in their loan agreements, and take the necessary steps to ensure their proper implementation. During 2017, 14 projects, which were previously financed with loans for a total amount of about KD million, were completed; their total cost amounted to about KD million, with the Arab Fund covering about 55.6% of that cost. 12 Annual Report 2017

14 Cumulative Lending Activities Since the commencement of its operations in 1974 and until the end of 2017, the Arab Fund extended 663 loans, for a total amount of about KD 9.7 billion. These loans contributed to the financing of 562 projects in 17 Arab countries, and covered about 26.2% of the total cost of these projects. Annex 3 presents a summary of the loans extended to member countries over the period , while Annex 5 provides details on these loans. The cumulative amount of loans extended by the Arab Fund for infrastructure projects has reached about KD 6.9 billion, or about 70.9% of the total amount of loans, of which about KD 3.2 billion was allocated for energy and electricity projects, about KD 2.6 billion for transport and telecommunications projects, and about KD 1.1 billion for water and sewerage projects. Loans for the productive sectors projects amounted to about KD 1.9 billion, or about 19.4% of the total amount of loans, of which about KD 1.4 billion was allocated for projects in agriculture and rural development, and about KD 0.5 billion for projects in industry and mining. Loans for projects in the social services sectors amounted to about KD 0.7 billion, accounting for about 6.8% of the total, and were allocated to projects in education, health, housing and social development. The remaining 2.9% of the total amount of loans, about KD 0.3 billion, was provided to finance projects in other sectors, which include earthquake mitigation, financial leasing and administrative development. In addition to financing the main components of projects, the Arab Fund s loans also provided institutional support for the entities involved for the purpose of training their employees and increase their efficiency. Table 2 shows the sectoral distribution of the loans extended by the Arab Fund during 2017 and over the period , while Annex 4 provides a summary of that distribution among beneficiary member countries over the same period. The cumulative lending activities of the Arab Fund also included 14 loans for private sector projects, for a total amount of KD 56.0 million, which contributed to 12 projects in Bahrain, Yemen, Mauritania, Sudan, Jordan and Egypt. These projects covered various areas, as they included the development of many productive sectors, especially iron and steel, sugar, grain silos and flour mills, glass and cement, as well as the tourism, health and financial sectors. In addition to the loans extended to the private sector, the Arab Fund also contributed to the equity capital of 7 private companies in 4 Arab countries, namely Saudi Arabia, Egypt, Yemen and Sudan, in the areas of glass container manufacturing, iron and steel production, cement production, sugar production, power generation, healthcare services, and storage facilities. By the end of 2017, the Arab Fund s total contributions to these companies had reached about KD 31.7 million, in addition to its contribution to the capital of the MENA Fund established by the International Finance Corporation (IFC) in an amount of KD 10.0 million. Annual Report

15 Table 2 Loan Commitments by Sector (KD Million) Sector Amount % Amount % 1. Infrastructure Sectors Transport and Telecommunications Energy and Electricity Water and Sewerage Subtotal Productive Sectors Industry and Mining Agriculture and Rural Development Subtotal Social Services Sectors* Other Sectors Grand Total * Include mainly the Education, Health, Housing and Social Development Sectors. Sectoral Distribution of Loan Commitments (Percentage) During 2017 During the Period Industry and Mining 7.0% Transport and Telecommunications 33.0% Social Services Sectors 6.8% Other Sectors 2.9% Transport and Telecommunications 26.8% Agriculture and Rural Development 14.1% Water and Sewerage 20.7% Energy and Electricity 39.3% Industry and Mining 5.3% Water and Sewerage 11.6% Energy and Electricity 32.5% 14 Annual Report 2017

16 Inter-Arab Projects The Arab Fund maintained its support to joint Arab efforts to build a basic framework and to strengthen means of communication and interconnections between member countries. Since the start of its operations in 1974 and until the end of 2017, the Arab Fund extended 68 loans for a total amount of about KD million. These loans contributed to the implementation of 32 inter-arab projects in the areas of telecommunications, electric power, natural gas lines and international roads. Total disbursements of these loans have reached about KD million at the end of 2017, or about 82.7% of their net amount. Annex 6 provides details on the loans extended to finance inter-arab projects over the period Co-Financing Activities The Arab Fund also continued its co-financing of projects in Arab countries with Arab national, regional and international development institutions. During 2017, 4 projects were co-financed with other institutions in Jordan, Mauritania, and Tunisia, in the sectors of transport and telecommunication, and energy and electricity. During the period , the total contribution of the Arab Fund to development projects co-financed with Arab national, regional and international development institutions has reached about KD 4.2 billion, representing about 30.7% of the total amount of co-financed projects, which amounted to about KD 13.5 billion. Annex 8 provides details on co-financing activities over that period. and Repayments Total disbursements during 2017 amounted to about KD million. Cumulative disbursements of all loans over the period have amounted to about KD million, including KD 43.1 million for private sector projects. Repayments of loans in 2017 amounted to about KD million. Cumulative repayments over the period have amounted to about KD million, which represented about 54.8% of cumulative disbursements. Annual Report

17 Box 1 Involvement of the Arab Fund in the Electricity Sector in Mauritania Introduction The installed generating capacity in Mauritania, in 2007, was about 64 MW, distributed among two power generating stations: Arafat PGS, rated at 42 MW and Nouadhibou PGS, rated at 22 MW. Each station fed its local loads through a 15 kv distribution network. During the same year, the peak load in Nouakchott reached around 65 MW, and the energy demand reached 440 GWH, far exceeding the output from the Arafat PGS. The Arab Fund and OFID are currently cofinancing the construction of a 100 MW wind farm in the Boulenoir area, close to Nouadhibou, which, when completed in 2020, will be one of the most efficient farms in the world, as its generating capacity will be around 60%, compared to an average generating capacity of around 35% for most wind farms. Evolution of Installed Generating Capacities on the Mauritanian Network (Exiting and Expected) This led to widespread and frequent electric outages in the city, forcing the Mauritanian Government to rent small diesel engines, running on expensive light fuel oil, which constituted a high financial burden on the Government. The Arab Fund s Contributions To alleviate the above problem, the Arab Fund, during the period , provided eleven loans, totaling KD 230 Million, to the Mauritanian Government to support the electricity sector. These loans led to a significant improvement in the performance of the sector. The Development of the Generating System As a result of the loans provided by the Arab Fund, the Islamic Development Bank, OFID, and the Government of the U.A.E., the Mauritanian Electricity Company (SOMELEC), was able to increase the installed generating capacity from 64 MW to 265 MW, an annual percent increase of 15%. This was mainly accomplished through the construction of the 180 MW Nouakchott North PGS, the rehabilitation and expansion of the Nouadhibou PGS, and the construction of a 30 MW wind farm and 50 MW Solar PV PGS, both in Nouakchott. All these projects entered into service and currently operate in a satisfactory manner. As a result of these projects, SOMELEC has been able to satisfy all the demand that occurred during the last four years, and has enough capacity to meet the expected demand for the next 5 years. MW The generation projects financed by the Arab Fund significantly reduced Mauritania s dependence on fossil fuel for power generation. Over the period , the share of energy delivered to the network from thermal power plants decreased from 80% to 62%, and when the Boulenoir wind farm enters operation and the 50 MW solar PV station is fully utilized, approximately 70% of the energy delivered to the Mauritanian grid will come from renewable resources. This will be a major achievement since such ratio currently ranges between 30% and 40% in the European countries, and is below 20% in most Arab countries. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Distribution of Energy Delivered to the Network (According to Source of Generation) Solar PV Generating Stations Wind Farms Diesel Units Diesel Units Wind Farms Solar PV Bought from Manatali Network 16 Annual Report 2017

18 As a result of reduced dependence on fossil fuel, the average cost of electricity generation in the Mauritanian grid has decreased from 13.5 cents/kwh in 2007 to around 10.5 cents/ kwh in 2017, and is expected to drop further to around 6.5 cents/kwh by Evolution of Levelized Cost of Generation on the Mauritanian Network (Cents/KWH) The Development of the Transmission and Distribution Networks Work is currently underway on the execution of distribution and transmission projects in the Southern and Eastern Regions. The first project involves feeding several cities located in the Southern Region with the electricity generated from the dams constructed along the Manantali river, while the second involves the construction of two hybrid power plants in the cities of Ne ma and Adel Bagrou, and around 1100 km of overhead lines to electrify a number of cities and villages located in the Eastern region. North S/S Harbour 36 MW PGS West S/S Control Center Arafat 53.5 MW PGS 180 MW Northern PGS 15 MW PV Solar PGS Central S/S East S/S Arafat S/S North East S/S 50 MW PV Solar PGS One of the transmission projects, financed by the Arab Fund, was for the construction of a 33 kv ring around Nouakchott. The project aimed at evacuating the energy produced from the newly-constructed and future-planned power plants, and reducing the dependence on the existing 15 kv network. The project included the construction of six new substations and around 200 km of underground cables, along with the construction of a national control center and a regional control center. The former will monitor and supervise the performance of the generation and transmission system, along with the interconnections with the neighboring countries, while the latter will monitor and control the distribution network in Nouakchott. The transmission system expansion project was completed in 2016, and the two control centers should be fully operational in the beginning of This should lead to the reduction in the transmission losses in the network, the amount of fuel used for generation, and the time needed to locate faults. 30 MW Wind Farm Additionally, three other interconnection projects, all on 225 kv, are under execution. The first is to connect the electrical networks of Nouakchott and Nouadhibou, the second to connect the electrical networks of Nouakchott and Zouerate, and the third to re-enforce the interconnection between the Mauritanian and the Senegalese grids to increase the transfer capacity between them from 80 MW to approximately 300 MW. All three projects should be operational by Nouadhibou Boulenoir Zouerate Attar Shami Akjoujt Nouakchott Shegar Sangrava Maqtaa Bou Telimit L Ihjar Ilaq To Tobein Substation in Senegal Aftout S/S Mauritania 225 kv 90 kv 33 kv Ne ma Adel Bagrou Annual Report

19 Second: Grants Grants During 2017 Many grant applications were reviewed during 2017, and priorities were determined in coordination with the concerned institutions in the member countries, subject to available financial resources. A total of 32 grants, amounting to about KD 7.2 million, were approved during the year. These grants included 16 national grants which amounted to about KD 4.8 million, and were provided to 8 Arab countries. The grants also included 16 inter-arab grants which amounted to about KD 2.4 million, and were allocated to support activities of common interest to most Arab countries. In addition, support provided to the resistance of the Palestinian people within the framework of the Urgent Program amounted to about KD 5.9 million. Table 3 presents these grants. The Arab Fund continued to give priority to activities that reinforce institutional support and training, with 21 grants allocated to these activities for a total amount of about KD 3.4 million, representing about 46.9% of total grants provided during the year. These grants included 13 national grants for a total amount of about KD 1.3 million, and 8 inter-arab grants for a total amount of about KD 2.1 million. The grants aimed at enhancing the performance of specialized institutions by improving the quality of services they provide, and supporting the activities and programs of a number of research and education centers, in addition to contributing to some vital projects, as well as contributing to support the Construction Techniques Testing Center of the Ministry of Equipment, Housing and Territorial Development in Tunisia. The grants provided during 2017 included 2 grants to Yemen for emergency programs, for a total amount of about KD 3.3 million, representing about 45.6% of the total amount of grants provided during the year. One of these grants contributed to the financing of the food security program in Yemen, and the other contributed to the financing of the urgent needs of the centers affiliated with the National Cancer Control Foundation. During the year a grant was also provided to contribute to a feasibility study and project preparation, for an amount of about KD 0.2 million, representing about 2.8% of the total amount of grants provided during the year, aimed at preparing a study for a project to cultivate 100 thousand feddan of desert areas using an agricultural greenhouse system. The grants provided during the year also contributed to the organization of a number of seminars and conferences, for a total amount of about KD 0.3 million representing about 4.7% of total grants, on topics of common interest to most Arab countries. Table 4 shows the grant commitments by activity. Cumulative Grants The total amount of grants provided by the Arab Fund, since the beginning of its operations and until the end of 2017, amounted to about KD million, of which about KD million contributed to the financing of 1143 national and inter-arab grants, and about KD million to support the Palestinian people through the Urgent Program and the Program to Support the Resistance of Jerusalem. 18 Annual Report 2017

20 The number of national grants provided reached 602 for a total amount of about KD million, and were allocated as follows: about KD 76.5 million for institutional support and training, about KD 17.3 million for feasibility studies and project preparation, KD 5.9 million for general studies and research, and KD 183 thousand for seminars and conferences. These grants, provided to most Arab countries, aimed at improving the performance of specialized institutions, enhancing the quality of services they provide, training their employees and managers, developing their information systems and statistics, undertaking population censuses, supporting the activities of several research centers, and preserving national heritage. Furthermore, national grants included grants for a total amount of about KD 54.2 million, which were allocated to support emergency programs to alleviate the effects of natural disasters, local disturbances, or damage caused by external aggression on some Arab countries. The number of inter-arab grants provided reached 541 for a total amount of about KD 68.1 million, and were allocated as follows: about KD 40.2 million to provide institutional support and training programs in several specialized scientific and research centers, about KD 13.2 million to undertake general studies and research in various economic and social development areas, about KD 6.4 million to conduct feasibility studies for specific projects, about KD 5.5 million to organize seminars and conferences to discuss priority development issues for Arab countries, and about KD 2.9 million to implement emergency programs. In addition, the cumulative contributions provided by the Arab Fund to support the Palestinian people include the grants allocated within the framework of the Urgent Program, since its beginning in 2001 and until the end of 2017, amounting to about KD million. The contributions of the Arab Fund to support the Palestinian people also include the grants allocated within the framework of the Program to Support the Resistance of Jerusalem, in 2010 and 2016, which have amounted to about KD 29.7 million. Grant Cumulative disbursements of grants, approved over the period , amounted to about KD million, including about KD million for national and inter-arab grants, and about KD million for the Urgent Program to Support the Palestinian People and the Program to Support the Resistance of Jerusalem. Annex 7 provides a summary of these grants over that period. During 2017, a total of 30 grants, amounting to about KD 7.9 million, were completed. This brought the total number of national and inter- Arab grants completed during the period to 979, with a cumulative amount of about KD million, while a total of 118 grants, amounting to about KD 52.9 million, remain under execution. Moreover, the total number of reimbursed and fully cancelled grants reached 46, for a total amount of about KD 8.5 million. Annual Report

21 Table 3 Grants Approved During 2017 No. Beneficiary/Grant Amount Allocated (KD 000) No. of Grant Date of Board Approval A: National Grants 1 Kuwait/ Completion of the Construction and Furnishing of the Building of Kuwait Economic Society (2) 5 DG/ /01/ Jordan/ Contribution to the Construction of Warehouses and the Preparation of Additional Yards and Offices on the site of the Jordan Hashemite Charity Organization in Ghabawi (2) 200 5/ /03/2017 Kuwait/ Contribution to the Coverage of the Cost of the Water Guidance Project to Raise the Efficiency of Water Usage, prepared by the Kuwait Water Association (2) 150 6/ /03/2017 Egypt/ Contribution to the Preparation of a Study for a Project to Cultivate 100 Thousand Feddan of Desert Areas using an Agricultural Greenhouse System (1) 200 7/ /03/ Kuwait/ Support to the Program Startup Kuwait National Innovation and Entrepreneurship Challenge (2) 16 DG/ /03/ Kuwait/ Contribution to the Arab Moot Court Competition 2017 as an Al Jawhara level sponsor (2) 15 DG/ /03/ Mauritania/ Contribution to the Financing of the Institutional Support Project for the National Accounting System (2) / /04/ Kuwait/ Support to the Efforts of Bayt El Yasmeen Charity s Team in the Area of Teaching Syrian Children in Refugee Camps in Lebanon (2) 9 DG/ /04/ Oman/ Financing the Upgrade of the Loan System in the Ministry of Finance (2) / /06/ Yemen/ Contribution to the Financing of the Food Security Program in Yemen (5) / /06/ Yemen/ Contribution to the Financing of the Urgent Needs of the Centers Affiliated with the National Cancer Control Foundation (5) / /06/ Mauritania/ Water Supply to the Cities of Laayoune and Djiguenni, and Neighboring Villages (2) 65 24/ /06/ Mauritania/ Electrical Interconnection Between Nouakchott and Zouerate on 225 kv (2) / /06/ Kuwait/ Project to Build and Furnish the Kuwait Education Center for Special Needs Students Socotra Island (2) 50 DG/ /07/ Tunisia/ Contribution to Support the Construction Techniques Testing Center of the Ministry of Equipment, Housing and Territorial Development (2) / /11/ Bahrain/ Contribution to the Third Phase of the Project on the Development of Neighborhoods in Muharraq (2) / /11/2017 Total National Grants 4835 (1) Feasibility Studies and Project Preparation (2) Institutional Support and Training (3) General Studies and Research (4) Seminars and Conferences (5) Emergency Programs 20 Annual Report 2017

22 Table 3 (Continued) Grants Approved During 2017 No. Beneficiary/Grant Amount Allocated (KD 000) No. of Grant Date of Board Approval B: Inter-Arab Grants 1 Arab Center for Educational Research for the Gulf States/ Contribution to the Coverage of the Cost of the Educational Conference on Educational Wastage and the Role of Teachers in Facing it (4) 50 DG/ /01/ Arab Thought Forum/ Contribution to the Coverage of the Cost of the Seventh Arab Youth Conference (4) 30 DG/ /02/ ERF/ Support to ERF s Twenty Third Annual Conference (4) 100 4/ /03/ Arab Planning Institute/ Contribution to the Coverage of the Programs and Activities of the Institute for the Financial Year 2016/2017 (2) / /04/ ERF/ Contribution to the Coverage of Part of the Cost of the Activities of the Second Phase of the Arab Spring Development Initiative (2) 75 12/ /04/ ICARDA/ Contribution to the Financing of the Project for the Sustainability and Operation of Regional Research Centers in Several Arab Countries (2) / /04/ ICARDA/ Support to the Center s Work Programs (2) / /04/ Inter-Arab/ Contribution to the Coverage of the Cost of Teaching Syrian Migrants Affected by the War (2) 31 DG/ /05/ Inter-Arab/ Support to the Execution of the Higher Studies Program in Public Health (2) 30 DG/ /05/ Middle East and North Africa Health Policy Forum/ Contribution to the Coverage of the Cost of the Forum s Conference (4) 30 DG/ /06/ World Trade Organization/ Contribution to the Coverage of Part of the Cost of the First Phase of the Project to Broaden the Use of the Arabic Language (2) / /06/ Inter-Arab (Arab Fund)/ Contribution to the Financing of the Joint Seminar on Economic Policies to Achieve Comprehensive Growth in Arab Countries (4) / /06/ Inter-Arab (Arab Electricity Regulators)/ Support to the Arab Electricity Regulators Activities (2) 18 DG/ /08/ Inter-Arab (Delta Consulting)/ Support to the First Family Budget Forum (4) 20 DG/ /11/ Arab Planning Institution/ Support to the Media Technology and Communication Forum (4) 10 DG/ /11/ Arab League/ Contribution to the Annual Media Conference to Promote the Achievements and Activities of Joint Arab Action Institutions (4) 3 DG/ /12/2017 Total Inter-Arab Grants 2397 Total National and Inter-Arab Grants 7232 Fifteenth Phase of the Urgent Program to Support The Palestinian People 5918 Grand Total (1) Feasibility Studies and Project Preparation (2) Institutional Support and Training (3) General Studies and Research (4) Seminars and Conferences (5) Emergency Programs Annual Report

23 Table 4 Grant Commitments by Activity (KD 000) During 2017 During the Period Activity National Grants Inter-Arab Grants Total National Grants Inter-Arab Grants Total Amount % Amount % Amount % Amount % Amount % Amount % 1 Feasibility Studies and Project Preparation Institutional Support and Training General Studies and Research Seminars and Conferences Emergency Programs Total National and Inter-Arab Grants Urgent Program to Support the Palestinian People Program to Support the Resistance of Jerusalem Grand Total Annual Report 2017

24 Grant Commitments by Activity (Percentage) National Grants during 2017 Inter-Arab Grants during 2017 Feasibility Studies and Project Preparation 4.1% Institutional Support and Training 27.6% Seminars and Conferences 14.3% Emergency Programs 68.3% Institutional Support and Training 85.7% National Grants during the Period Inter-Arab Grants during the Period Emergency Programs 35.2% Feasibility Studies and Project Preparation 11.2% Institutional Support and Training 49.6% Seminars and Conferences 8.0% Emergency Programs 4.3% Feasibility Studies and Project Preparation 9.4% Institutional Support and Training 59.0% Seminars and Conferences 0.1% General Studies and Research 3.9% General Studies and Research 19.3% Annual Report

25 Support to the Palestinian People The total amount of contributions made by the Arab Fund to Palestine, since the beginning of its operations and up to the end of 2017, reached about KD million, including about KD million in the form of grants, representing about 91.9% of the total contributions, and the remaining as concessional loans provided to the Palestinian National Authority. The Urgent Program to Support the Palestinian People: The Arab Fund continued its efforts to provide support to the Palestinian people to reinforce their resistance and presence on their land, as well as improve their economic and social conditions in light of the occupation s policies, which aim at erasing the Palestinian identity and weakening its econmoy. During 2017, the Arab Fund allocated an amount of about KD 5.9 million, or about 10% of the Arab Fund s net income for 2016, to contribute to the fifteenth phase of the program, which is renewed annually since Thus, the total contribution of the Arab Fund to this program over the period reached about KD million. This program provides support to non-government institutions and civil societies which provide education, health and social services to local communities. It contributes to the support of universities and educational institutions, and rehabilitation of school buildings, as well as raising the level of health services through the rehabilitation and development of health institutions, rural development and economic empowerment. The Arab Fund worked to promote cooperation and coordination with Arab national and regional institutions, international institutions, as well as civil society institutions and government agencies, in order to rationalize the aid presented to Palestine and improve its effectiveness. The outcome of the Arab Fund s support within this framework was the improvement of educational, health and social services provided by institutions and civil societies to the local community, qualifying and training graduates, providing school buildings, and supporting universities and educational institutions in order to ensure they remain and continue to perform their educational tasks. The Arab Fund s interventions within the framework of the Urgent Program included the provision of small and medium loans to reactivate the industrial and agricultural sectors and encourage youth initiatives, as well as improve rural development through the improvement of infrastructure, water, electricity and road facilities in rural communities. The program also contributed to the establishment of health centers and hospitals, and facilities for social care, obstetrics care, child care and special needs care, including the provision of modern medical equipment and supplies to the hospitals and health centers. The grants provided by the Arab Fund to Palestine contributed to supporting the role of the different institutions and civil societies and their ability to provide the best basic services which affect the well-being of the local community. It also provided opportunities for higher education to marginalized groups, improvements to living conditions for rural women, the development and rehabilitation of human resources, and the training of 24 Annual Report 2017

26 teachers and doctors. The support also contributed to the preservation of cultural heritage and civilization through the renovation and rehabilitation of old towns in Jerusalem, Hebron and Nablus, and the development of the housing sector in the city of Jerusalem to support the resistance of its residents and preserve the Arab presence in the face of policies of deportation and Judaification of the city. Cooperation with International and National Financial Institutions in Palestine: The Arab Fund maintained its cooperation with the Islamic Development Bank, which monitors the implementation of projects financed through Al-Aqsa Fund. This cooperation included support to the development of medical and educational services through the construction of health centres, schools and universities, the development of infrastructure, the rehabilitation of wells, reclamation of agricultural lands threatened with confiscation, and urgent construction to revive the cultural and architectural heritage of historical buildings. This cooperation also included support to civil society institutions which provide health, social and educational services. The total committed amount is estimated at about KD 31.6 million, including support to Jerusalem, and the disbursed amount reached about KD 27.9 million, or about 88.3% of the total amount committed. Coordination between the Arab Fund and the Islamic Development Bank also included the selection of projects to be financed under the fifteenth phase of the Urgent Program. Annual Report

27 Third: Joint Arab Action Introduction The Arab Fund continued, in 2017, its activities in various areas in support of priority sectors and in response to decisions and directives of the Arab summits, which accorded a special importance to projects and issues related to joint Arab action. The Arab Fund s interventions in support of Arab cooperation were numerous; they included financing of projects, technical and economic studies for Arab interconnection projects, seminars, research, as well as participation in initiatives related to the support of specialized inter- Arab institutions. Thus, the Arab Fund provided support to any activity aimed at achieving Arab integration between member countries. The following provides a brief on the main activities: Coordination between the Arab National and Regional Development Institutions and Cooperation with International Institutions The Arab Fund continued to act as the Coordination Secretariat of the Coordination Group, which includes the Arab national and regional institutions, preparing and participating in their periodic meetings and the meetings of the technical committees, as well as preparing and participating in the Coordination Group s meetings with regional and international financing institutions. During 2017, the seventy ninth Coordination Group meeting, which was held at the Directors of operations level, took place at the headquarters of the Saudi Fund for Development in Riyadh, Saudi Arabia during the period 4 6 April, During the meeting, many topics were studied and discussed, most notably the topic of the Deep Dive Initiative with the World Bank, where the Coordination Group discussed the steps which the Group could take in light of the memorandum of understanding, which specifies the areas of cooperation between the Coordination Group and the World Bank within that initiative. Also during the meeting, the implementation of the final stages of the Arab Development Portal was presented, and discussions were held regarding the publication and harmonization of data between the members of the Coordination Group. It was agreed that there was a necessity to create and approve a database which should be built on internationally harmonized terminologies such as those used by the Development Assistance Committee of the Organisation for Economic Co-operation and Development (OECD/DAC). The eightieth Coordination Group meeting was also held during 2017, and took place at the headquarters of the Arab Fund for Economic and Social Development during the period 3 5 October, This meeting s agenda contained many topics, which included the implementation of energy exchange in the Arab region, the Islamic Development Bank s experience in managing operations performance and development results, the role of capital markets in financing infrastructure, financial inclusion and the Sustainable Development Goals, as well as the approval of the final draft of the memorandum of understanding for the Deep Dive Initative between the Coordination Group and the World 26 Annual Report 2017

28 Bank, which was signed on 15/10/2017, in Washington DC, USA, on the sidelines of the World Bank meetings. Aside from these topics, the agenda also included a meeting with the United Nations Country Team for Palestine, who gave a presentation on the situation in Palestine, with emphasis on the health, education, housing and agriculture sectors. A meeting with the European Commission representatives was also held, in which they presented their action plans for the Arab and African regions, and proposed a restructuring of joint activities between the two groups, which will include routine discussions and joint operations. Within the framework of continued cooperation with international organizations, the annual High Level meeting between the Heads of the Coordination Group Institutions and the Development Assistance Committee of the Organisation for Economic Co-operation and Development (OECD/DAC) was held, to discuss the achievement of the Sustainable Development Goals for During the meeting, which was held in Bern, Switzerland on 27 March, 2017, the outcomes of the joint activities between the two groups and the next steps which need to be taken, as well as the outcomes of the joint task force on energy were presented. In addition, other topics were discussed, including those related to promoting joint action in education in fragile areas. The Coordination Group Secretariat, within the Arab Fund, continuously follows up the implementation of the decisions and directives emanating from these meetings through regular communications with the specialized departments within the Group s institutions. Support to Small and Medium Enterprises The Arab Fund supports the financing of small and medium enterprises in Arab countries through its contribution to the capital of the Special Account in the amount of US Dollars 100 million, as well as through its management of this account for which it provides an independent administration and separate accounts. The Special Account was established to support small and medium private sector enterprises in Arab countries, by providing loans to Arab governments and intermediary Arab financial institutions. To date, a total of 18 Arab countries subscribed to the capital of this Account, for a total amount of US Dollars million, of which about US Dollars million were paid. The total number of loans provided by the Special Account by the end of December 2017 reached 34, in 12 Arab countries, for a total amount of US Dollars million. The total disbursements of these loans reached about US Dollars million. Arab Trade Finance Trade contributes to the economic and social development of Arab countries, through its support to Arab exports, by enhancing Arab productive capabilities, and through the provision of development requirements including equipment, machinery and devices. The Arab Trade Finance Program aims at achieving the goals of the agreement for the Annual Report

29 facilitation and promotion of intra-arab trade, and the agreement on the Arab Free Trade Area, and enhancing the competitiveness of Arab exports. The Arab Fund contributed to the establishment of this program, in cooperation with the Arab Monetary Fund, and contributed to its capital. The Arab Fund is the second largest contributor to the program, after the Arab Monetary Fund, with a share of about 22.5% of the program s issued and paid-in capital of US Dollars million. By the end of December 2017, the total amount of approved financing requests reached about US Dollars 14.5 billion. These requests were submitted through 215 national agencies in all Arab countries (mostly from national and central banks, in addition to some relevant ministries and institutions). Arab Development Portal During the year 2017, work continued on the development of the Arab Development Portal (ADP). The main thrust of the development effort concentrated on two activities: the first was to replace the search engine used in the portal with a faster and more efficient one, while the second was directed at establishing mechanisms for exchanging information, in an automated manner, between the portal and the various databases maintained by the National Statistical Offices (NSOs), in the various Arab countries. This would allow for the simultaneous update of the ADP database once the NSOs update the information in their databases. Additionally, on the sidelines of the 80th meeting of the Arab Coordination Group (ACG), which took place in Kuwait during the period 3 5 October, 2017, the Arab Fund hosted a workshop for the ADP Focal Team, whose members had been selected by the ACG to monitor the progress of the portal. During the workshop, the ADP development team, presented the latest features that were implemented, and the ones they plan to add in the future. Conversely, members of the Focal Team provided their comments on the portal and their suggestions on how to enrich its content and improve its performance. Preparation of the Joint Arab Economic Report The Joint Arab Economic Report is considered an important source of economic and social information on Arab countries, for both researchers and decision makers. The Arab Fund continues its annual participation in the preparation of this report, in cooperation with the General Secretariat of the League of Arab States, the Arab Monetary Fund and the Organization of the Arab Petroleum Exporting Countries (OAPEC). The Arab Fund prepares the chapters of the report on economic and social development, the agriculture and water sector, the industrial sector and Arab developmental aid. In addition, the Arab Fund prepares, on a rotating basis with the participating institutions, the chapter that addresses the theme of the report. The theme of this year s report, which was prepared by the Arab Monetary Fund, was The Role of Economic Reforms in Support of Economic Growth in Arab Countries Annual Report 2017

30 Arab Spring Development Initiative The Arab Spring Development Initiative (ASDI) was launched, in 2014, as a partnership between the World Bank and the Arab Fund, in order to support the developmental efforts of the Arab countries going through a period of political and economic transitions. ASDI aims at generating new insights for researchers and decision makers, identifying policy options and informing the decision making process through enhanced access to data and knowledge pertaining to the pressing developmental issues in these countries. ASDI is being implemented by the Economic Research Forum (ERF) in close partnership with both the World Bank and the Arab Fund. ASDI focuses on three main areas of activity, which are: open access to data and survey-based research and their harmonization and wide dissemination, implementation and publication of policy-relevant research in relation to the political and economic transformation in Arab countries, and creation of a variety of platforms for policy discussions and dialogue on varying pressing topics for policy makers, researchers and other stakeholders such as the media and various segments of civil society, and making research outcomes available to them. After evaluation of the first phase of ASDI, the Arab Fund, in 2017, provided an additional grant as a contribution to the second phase of ASDI covering the period 2017/ /2020. The published studies and research within this initiative may be accessed through the following internet link: Support to Arab and Regional Institutions The Arab Fund continues to support the activities of Arab and Regional institutions which promote Arab development directly or indirectly, especially in the areas of human resource development. The support aims at increasing their theoretical and applied capabilities, undertaking studies and research, holding seminars and conferences, as well as enhancing the ability of those institutions to carry out their missions. For example, the Arab Fund has provided 54 grants to support the activities and programs of the International Center for Agricultural Research in the Dry Areas (ICARDA), for a total amount of about KD 15.6 million. The Arab Fund has also provided 38 grants to the Economic Research Forum, for a total amount of about KD 6.6 million, in addition to supporting numerous other Arab institutions, such as the Arab Center for Educational Research for the Gulf States, and a number of scientific and research institutions. Annual Report

31 Box 2 The Arab Development Portal The Arab Development Portal is an initiative that was launched by the Coordination Group (CG) of the Arab National and Regional Development Institutions, the Islamic Development Bank and the OPEC Fund. The members of the CG committed $5 Million for its development, distributed evenly among the various member institutions. The Portal aims at establishing an information platform to encourage the exchange of high quality information, to create development opportunities and improve the living conditions in the Arab world, thus contributing to its economic development. The Portal was developed in three stages. During the first stage, a prototype was created. It was limited to information on five economic sectors in two Arab countries, in order to gain insight about the operation of the Portal and get feedback from several institutions and individuals on how to improve its performance. In the second stage, similar data was added for all other countries, and information on four additional sectors was included. The development of Stage 3 is currently underway. The objective is to have information on twelve economic sectors in all Arab countries, covering the period The members of the CG partnered with the World Bank and UNDP to develop Stage 1. The development of Stage 2 was carried out by a specialized team, whose members were selected from UNDP staff. That same team continues with the development of Stage 3. The Portal was launched to the public in the middle of The number of its users has been steadily increasing at an average monthly rate of 18%, and has reached 40 thousand users at the end of It is worth noting that around 70% of the users fall within the years age bracket, and that around 20% of the users are located outside the Arab world. The twelve topics currently included in the Portal are: education, gender, macro-economy, water and food security, demography, environment, labor and employment, trade, banking and finance, energy, health and poverty. It is expected that information on science and technology, infrastructure, gender equality, agriculture and irrigation, and financial market sectors will be added in the near future. Development efforts are currently concentrated on implementing a faster and more efficient search engine, and on strengthening and streamlining the relationship with the various Arab National Statistical Offices (NSO s) in order to ensure that the data in the Portal is automatically updated every time the NSO s update their information. In order to ensure the continuity of the Portal and maintain the high quality of its content, the members of the CG tasked several of their staff with reviewing all technical aspects. Additionally, efforts are currently underway to select the members of the Advisory Board, which will provide a clear vision for the future of the Portal. Its members are, accordingly, being selected from the leading experts in the field. Website of the Portal 30 Annual Report 2017

32 Fourth: Financial Statements for the Financial Year Ended at 31 December 2017 I. Financial Position Assets: The value of Arab Fund assets increased in 2017 by KD 166 million 5% compared to 2016 reaching KD 3,582 million, this increase was mainly in Investments and Loans as shown in the below schedule: Variation Assets KD Million % KD Million % KD Million Cash & Cash Equivalents 27 1% 66 2% (39) Investments % % 182 Share in the Capital of Related Institutions 49 1% 49 2% 0 Investment in an Associate 78 2% 77 2% 1 Loans 2,830 79% 2,809 82% 21 Others Assets 27 1% 26 1% 1 Total 3, % 3, % 166 5% Liabilities: The value of Liabilities decreased in 2017 by KD 6.7 million 8% compared to 2016 reaching KD 76.1 million, this decrease was mainly in Other Liabilities as shown in the below schedule: Variation Liabilities KD Million % KD Million % KD Million Grants % % (0.2) Provision for Pension Fund % % 1.0 Other Liabilities % % (7.5) Total % % (6.7) (8)% Annual Report

33 Members Equity: The value of members Equity increased in 2017 by KD 173 million 5% compared to 2016 reaching KD 3,506 million, this increase was mainly in Share Capital and Additional Reserve as shown in the below schedule: Variation Members Equity KD Million % KD Million % KD Million Share Capital 2,821 80% 2,741 82% 80 General Reserve 280 8% 268 8% 12 Additional Reserve % % 80 Other Reserves 9 0% 8 0% 1 Total 3, % 3, % 173 5% II. Income & Expenditures Income: The total Income for the year end amounted to KD million compared to KD 82.1 million in 2016, with an increase of 54% equal to KD 44.6 million. This increase was mainly from Investment Gains and Interest Income from loans as shown in the below schedule: Variation Income KD Million % KD Million % KD Million Interest Income from Loans % % 11.9 Net Investment Gain % % 31.7 Income from Arab Trade Finance Program 1.7 1% 0.6 1% 1.1 Other Operating Expenses (0.1) 0% 0.0 0% (0.1) Total % % % Expenditures: The total Administrative Expenses for the year end amounted to KD 8.7 million compared to KD 8.5 million in 2016, with an increase of 2% equal to KD 0.2 million. This increase was mainly from Salaries and Other Expenses as shown in the below schedule: Variation Expenditures KD Million % KD Million % KD Million Salaries & Staff Provisions % % 0.1 Other Expenses % % 0.1 Total % % 0.2 2% 32 Annual Report 2017

34 Net Profit: The net profit for the year end amounted to KD million compared to KD 59.2 million in 2016, with an increase of KD 53.7 million 91% as shown in the below schedule: Variation Net Profit KD Million % KD Million % KD Million Net Profit before Provisions % % 44.4 Investments & Loans Provisions (5.1) (5)% (14.4) (24)% 9.3 Net Profit of the Year % % % III. Cash Flows Shown below is a schedule summarized for the main cash flows: Cash Flows 2017 KD Million 2016 Net change in investments at fair value of Loans Repayments of Loans of Grants Interest received Capital paid (128.3) (269.5) (6.6) (54.6) (203.9) (8.9) IV. Financial Indicators of Arab Fund Performance Net Income/ Assets - ROA Financial Ratios 2017 % 3.2% 2016 % 1.7% Net Income/ Members Equity - ROE 3.2% 1.8% Expenditures/ Revenues 6.9% 10.4% Loans/ Assets 79.0% 82.2% Loans/ Members Equity 80.7% 84.3% Annual Report

35 Arab Fund for Economic and Social Development Statement of Financial Position As at 31 December 2017 (KD 000) Assets Cash and cash equivalents 27,285 66,444 Investments 570, ,254 Share in the capital of related institutions 49,174 48,789 Investment in an associate 77,443 77,253 Loans 2,830,224 2,808,658 Receivables from participants in the building 5,640 5,985 Other assets 21,305 19,948 Total assets 3,581,720 3,416,331 Liabilities and members equity Liabilities Grants 27,771 28,046 Provision for pension fund 14,435 13,379 Other liabilities 33,920 41,391 Total liabilities 76,126 82,816 Members equity Share capital 2,820,741 2,740,819 General reserve 279, ,319 Additional reserve 395, ,908 Grants reserve 5,775 3,424 Change in the fair value reserve 3,840 5,045 Total members equity 3,505,594 3,333,515 Total liabilities and members equity 3,581,720 3,416, Annual Report 2017

36 Arab Fund for Economic and Social Development Statement of Comprehensive Income For the year ended 31 December 2017 (KD 000) Income Interest income from loans 76,350 64,472 Net investments gain 48,141 16,457 Interest income from time deposits and call accounts Gain from an associate 1, Net operating expenses (104) (36) Net income 126,661 82,113 Administrative expenses Salaries and staff provisions 6,892 6,797 Other expenses 1,773 1,722 Total Administrative Expenses 8,665 8,519 Net Income before provisions 117,996 73,594 Provision for impairment of investment contribution Private sector - (14,156) Provision for loans Private sector (5,116) (259) Net profit for the year 112,880 59,179 Other comprehensive loss Net change in fair value of investments available for sale (1,205) (3,328) Other comprehensive loss for the year (1,205) (3,328) Total comprehensive income for the year 111,675 55,851 Annual Report

37 Arab Fund for Economic and Social Development Statement of Changes in Members Equity For the year ended 31 December 2017 (KD 000) Share capital General Reserve Additional Reserve Grants Reserve Change in fair value Reserve Retained Earnings Total Balance 1 January ,740, , ,908 3,424 5,045-3,333,515 Profit for the year , ,880 Other comprehensive loss for the year Total comprehensive income for the year (1,205) - (1,205) (1,205) 112, ,675 Payment of capital 79, ,922 Transfer to amortized loans installments Transfer to support people of Palestine Transfer to Arab Academic Fellowship - - (7,122) (7,122) - - (5,918) (5,918) (185) (185) Transfer to grants reserve ,644 - (5,644) - Transfer to general reserve - 11, (11,288) - Transfer to additional reserve , (95,763) - Grants approved - - (3,000) (4,232) - - (7,232) Grants cancelled and transferred As at 31 December ,820, , ,631 5,775 3,840-3,505,594 Balance 1 January ,660, , ,689 3,898 8,373-3,223,687 Profit for the year ,179 59,179 Other comprehensive loss for the year Total comprehensive income for the year (3,328) - (3,328) (3,328) 59,179 55,851 Payment of capital 80, ,493 Transfer to support people of Palestine Transfer to Arab Academic Fellowship - - (23,001) (23,001) (82) (82) Transfer to grants reserve ,959 - (2,959) - Transfer to general reserve - 5, (5,918) - Transfer to additional reserve , (50,220) - Grants approved (3,900) - - (3,900) Grants cancelled and transferred As at 31 December ,740, , ,908 3,424 5,045-3,333, Annual Report 2017

38 Arab Fund for Economic and Social Development Statement of Cash Flows For the year ended 31 December 2017 (KD 000) Operating activities Net Profit for the year 112,880 59,179 Adjustments: Interest income from loans (76,350) (64,472) Gains on investments at fair value through statement of income (55,770) (19,874) Interest income from time deposits and call accounts (599) (564) Share in results from an associate (1,675) (656) Provision for Impairment of investment contribution Private sector - 14,156 Provision for Loans Private sector 5, Provision for pension fund 1,850 1,786 (14,548) (10,186) Changes in operating assets and liabilities Net change in investments at fair value through statement of income (128,306) (54,613) of loans (269,537) (203,938) Repayment of loans 235, ,558 of grants (6,605) (8,877) Receivables from participants in the building Other assets (84) (110) Other liabilities (13,537) (11,700) Cash flows used in operations (196,539) (125,520) Interests received 75,676 69,349 Provision for employees pension paid (795) (1,210) Net cash flows used in operating activities (121,658) (57,381) Investing activities Net changes in other investments 2,038 (3,350) Dividends received from an associate Net cash flows from / (used) in investing activities 2,577 (2,981) Financing activities Capital paid 79,922 80,493 Net cash flows from financing activities 79,922 80,493 Net (decrease) / increase in cash and cash equivalents (39,159) 20,131 Cash and cash equivalents at beginning of the year 66,444 46,313 Cash and cash equivalents at end of the year 27,285 66,444 Annual Report

39 Arab Fund for Economic and Social Development Independent Regional Arab Financial Organization - Kuwait Significant Accounting Policies a) Statement of compliance The financial statements of the Fund are prepared in compliance with accounting policies set out below and the convention on the establishment of the Fund. b) Basis of measurement The financial statements are prepared on a fair value basis for financial assets and liabilities held for trading and assets available for sale, except those with no available and reliable measure of fair value. Other financial assets and liabilities and nonfinancial assets and liabilities are carried at amortized cost or historical cost. The accounting policies followed by the Fund are agreeing accordingly with the same policies followed in the previous year. c) Investments Financial assets are classified as financial investments at fair value through statement of income, loans and receivables, or investments available for sale or as share in the capital of related institutions as deemed appropriate. The Fund determines the classification of its financial assets in principle upon initial recognition. Investments are designated at fair value through statement of income if they are managed, and their performance is evaluated on reliable fair value basis. Investment assets at fair value through statement of income are carried in the statement of financial position at fair value with changes in fair value recognized in the statement of comprehensive income. Equity investments designated as available for sale are those, which are neither classified as held for trading nor designated at fair value through statement of income. Investments available for sale are subsequently measured at fair value with unrealized gains or losses recognised in other comprehensive income. Until the investment is derecognized, at which time the cumulative gains or losses are recognised in the statement of comprehensive income. d) Loans Loans are stated at the amortized cost less provision for impairment. No impairment provisions are accounted for loans granted to the public sector as these are considered sovereign loans guaranteed for payment by consecutive governments of the member states. The impairment provision for loans granted to the private sector are estimated if their collection is no longer probable; and recorded at the statement of comprehensive income. e) Impairment An assessment is made by the Fund at each reporting date of the financial statements to determine whether there is objective evidence that a financial asset or group of financial assets may be impaired. All impairment losses are recognized in the statement of comprehensive income. 38 Annual Report 2017

40 f) Investment in an associate The investment in the associated entity is equity accounted. The fund s share of the profit or loss shall be recognized on the basis of the equity percentage of the Fund of the total equity. g) Fixed assets Fixed assets are not capitalized but rather are directly recorded in statement of comprehensive income in the year of purchase. h) Provision for pension fund Provision for the Fund s obligation towards employees pension is determined based on contributions paid by the employees and the Fund, in addition to a return of 10% p.a. guaranteed by the Fund. i) Foreign Currencies Foreign currency transactions are translated to the Fund s functional currency according to the exchange rates at the date of these transactions. Monetary assets and liabilities in foreign currencies are re-translated to the Fund s functional currency at the reporting date of the financial statements according to the exchange rates at that date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Gains or losses arising from re-translation of non-monetary items measured at fair value are treated in line with the recognition of gains or losses on change in fair value of the item, except for Gains or losses arising from re-translation of available for sale equities and investment in an associate which are recognized within other comprehensive income. j) Cash and cash equivalents Cash comprises of current accounts with banks, Cash equivalents comprises of bank balances and short term deposits with maturity of three months or less. k) Revenue recognition Interest income is recorded using the on a straight-line basis method that represent the price that fully discounts the cash flows from the expected life of the financial asset or a shorter period where appropriate, to the net carried amount of the financial asset. Interest and commission on loans to countries with unpaid past due interest for over three months are excluded from profit or loss and only recorded as income when received. Interest income from time deposits and call accounts is recognized on a time proportion basis. Fee and commission income is recognized when earned. Dividend income is recognized when the right to receive payment is established. Annual Report

41

42 ANNEXES Annual Report

43

44 Annex 1 Project Sheets for Loans Extended During the Year 2017 Annual Report

45 ANNEX 1 PROJECT 1 OF 13 Republic of Djibouti Completion of the Rehabilitation and Reinforcement of the Drinking Water Distribution Network in Djibouti Loan No.: 635 Interest Rate: 2.0% Beneficiary: Office National de l Eau et de l Assainissement de Grace Period: 7 years Djibouti (ONEAD) Project Cost: KD 23.0 million Maturity: 30 years Amount of 47 semi-annual KD 20.0 million Repayment: Loan: installments Date of Loan Agreement: 18/04/2017 First 7 years following the Date of Installment: first disbursement - Effectiveness: Objectives: The project aims at covering the current deficit in meeting the demand for drinking water in the city of Djibouti, and facing the future needs of the population until the year 2030, through the completion of the works related to the rehabilitation of the water distribution network to reduce the loss of water, and the reinforcement and expansion of the network to accommodate the additional quantities of water that will be provided to the city by the project of water transfer from Ethiopia and the project of sea water desalination. In addition, the project is expected to increase the number of domestic connections, and lead to the development and improvement of the drinking water services provided by ONEAD, as well as contribute to the preservation of water and the rationalization of its use, and improve the living and health conditions of the residents. Description: The project, which is expected to be completed by the end of 2021, includes laying main and secondary pipelines in the water distribution network, installing a number of domestic connections, rehabilitating and constructing water tanks, increasing the installed capacity of 2 water pumping stations, and rehabilitating several wells. In addition, the project includes the technical services necessary to prepare the studies and designs, assistance in bid analysis, project supervision and provision of institutional support to ONEAD. The project consists of the following components: 1. Rehabilitation and Reinforcement of the Water Distribution Network: This includes the construction of three water tanks with capacities ranging between about 1200 and 5000 m 3, the rehabilitation of 2 existing water tanks, each with a capacity of about 1500 m 3, the replacement and laying of main and secondary pipelines with a total length of about 200 km and diameters ranging between 63 and 700 mm, and the replacement of about 30 thousand existing domestic connections. The works also include an increase in the installed capacity of the water pumping station in Balbala by about 400 m 3 /hour, and that of the pumping station in Ambouli by about 900 m 3 / hour, in addition to the construction of a workshop for the maintenance of pumps and the repair of water meters, the construction of a laboratory to control water quality, and the acquisition of the necessary equipment for the operation and maintenance of the project. 44 Annual Report 2017

46 ANNEX 1 PROJECT 1 OF 13 CONTD. 2. Expansion of the Water Distribution Network: This includes laying about 50 km of pipelines with diameters ranging between 63 and 90 mm, and installing about 15 thousand new domestic connections. 3. Technical Services: This includes the consultancy services necessary to prepare the project studies, designs and tender documents, assistance in tender evaluation and bid analysis, project supervision, as well as conducting any additional studies necessary for the achievement of the project s objectives. 4. Institutional Support: This includes the use of the services of consultancy firms and experts to develop ONEAD s administrative and financial systems, and improve its performance, in addition to the acquisition of the necessary equipment and information systems, and the training of employees on the management of project implementation, operation and maintenance. Financing: The Arab Fund s loan covers about 87% of the total project cost. The Government of Djibouti will cover the remaining cost of the project and any additional cost that may arise. Annual Report

47 ANNEX 1 PROJECT 2 OF 13 Arab Republic of Egypt Construction of a 50 Megawatt Photovoltaic Power Station in the City of Kom Ombo Loan No.: 638 Interest Rate: 2.5% Beneficiary: New & Renewable Energy Authority Grace Period: 4 years Project Cost: KD 34.5 million Maturity: 30 years Amount of 53 semi-annual KD 26.0 million Repayment: Loan: installments Date of Loan Agreement: 18/04/2017 First 4 years following the Date of Installment: first disbursement - Effectiveness: Objectives: The project aims at satisfying the increasing demand for electricity in the Arab Republic of Egypt by constructing a 50 Megawatt Peak (MWp) photovoltaic (PV) power station near the city of Kom Ombo in the governorate of Aswan, which benefits from a high level of annual global horizontal irradiation in the project s location. Description: The project, which is expected to be completed by the end of 2019, comprises the procurement and installation of a photovoltaic power station and its interconnection with the unified power grid, including civil works, technical services and supervision of project execution, in addition to institutional support. The project includes the following main components: 1. Generation Station Equipment and Devices: This includes design, manufacture, procurement, and installation of photovoltaic cell modules, inverters, transformers, protection and control systems, spare parts and all accessories. 2. Civil Works: This includes the execution of all station civil works. 3. Interconnection with the Unified Power Grid: This comprises the procurement and installation of power line towers, overhead lines, circuit breakers and accessories, and transformers to interconnect the solar PV station to the unified power grid, along with related civil works. 4. Technical and Consulting Services: This includes technical services needed to design the project, preparation of tender documents, bid analysis, assistance in contracting procedures and execution supervision. 5. Institutional Support: This includes development and update of the New & Renewable Energy Authority s administrative, financial, and information systems and training of its staff. Financing: The Arab Fund s loan covers about 75% of the total project cost. The Egyptian Government will cover the remaining cost of the project and any additional cost that may arise. 46 Annual Report 2017

48 ANNEX 1 PROJECT 3 OF 13 Republic of Tunisia Construction of Bridges on Classified Roads Loan No.: 640 Interest Rate: 2.5% Beneficiary: Ministry of Equipment, Housing and Spatial Grace Period: 5 years Planning Project Cost: KD 27.9 million Maturity: 30 years Amount of 51 semi-annual KD 20.0 million Repayment: Loan: installments Date of Loan Agreement: 18/04/2017 First 5 years following the Date of Installment: first disbursement 26/10/2017 Effectiveness: Objectives: The project aims at improving land transportation services and traffic safety on roads in the Republic of Tunisia. This will be achieved through the construction of a number of bridges on classified roads in most governorates. The project will lead to enhancement of the classified road network efficiency, alleviation of traffic bottlenecks, and improvement of traffic circulation. Description: The project, which is expected to be completed by the end of the second quarter of 2020, includes the construction and reconstruction of 32 bridges on classified roads in 20 out of the 24 Tunisian governorates. Among these bridges, 30 existing bridges will be demolished and reconstructed due to their inefficiency, and 2 new bridges will be constructed. The project comprises the following components: 1. Execution of Works: This includes the execution of all works related to the construction and reconstruction of 32 bridges, which have a total length of about 6 km, and widths ranging between about 11 m and 15 m. The works include earthworks, foundations, reinforced concrete structures, retaining walls, side fences, bridge entrances and asphalt works, in addition to traffic safety works. 2. Relocation of Utility Networks: This includes the relocation of utility networks, which include water supply and drainage, and electricity networks. 3. Land Acquisition: This includes the acquisition of land required for the project execution. 4. Consultancy Services: This includes the provision of required consultancy services for the preparation of project studies, designs, and tender documents, in addition to construction supervision and quality control of the works. Financing: The Arab Fund s loan covers about 72% of the total project cost. The Tunisian Government will cover the remaining cost of the project and any additional cost that may arise. Annual Report

49 ANNEX 1 PROJECT 4 OF 13 Islamic Republic of Mauritania Rehabilitation of the Guelb (1) Plant Loan No.: 641 Interest Rate: 2.0% Beneficiary: Société Nationale Industrielle et Minière Grace Period: 6 years (SNIM) Project Cost: KD 35.5 million Maturity: 30 years Amount of 49 semi-annual KD 32.0 million Repayment: Loan: installments Date of Loan Agreement: 18/04/2017 First 6 years following the Date of Installment: first disbursement - Effectiveness: Objectives: The project aims at extending the operating life of the Guelb (1) plant and improving the ability of the SNIM company to compete in international markets, through the replacement of the aging equipment used for crushing and grinding iron ore with newer, more efficient and less polluting equipment. This will lead to an improvement in the reliability of the plant and a reduction in its production cost. Description: The project, which is expected to be completed during the second quarter of 2020, includes the supply and installation of equipment used for crushing and grinding iron ore, conveyor belts and mechanical cranes necessary to move the iron ore between the various treatment stages, the construction of an electrical substation and the laying of electrical cables to feed the new equipment. The project also includes the supply of a plant control system, and all required civil works and structures, along with the consultancy services necessary for the preparation of detailed designs of equipment and technical supervision. The project consists of the following main components: 1. Rehabilitation of the Plant: This comprises the supply and installation of equipment for secondary crushing of iron ore, along with all its ancillary equipment, including that used for the extraction and treatment of dust, the supply and installation of conveyor belts and associated pipes, the construction of a new 11 kv substation, the laying of electrical cables to supply the new equipment with electricity, the design, supply and operation of a plant control system, along with all necessary civil works and structures to house the new equipment. 2. Rehabilitation of Diesel Generating Units: This includes the rehabilitation of two diesel generating units located in the Guelb power plant. 3. Studies: This includes the preparation of detailed designs for the equipment that will be supplied, and the development of a procedure for replacing the old equipment with a new one, while keeping disruption of production to a minimum. 4. Technical Supervision: This includes technical supervision of the works included in the project, and participation in witness testing for the equipment and the control system. Financing: The Arab Fund s loan covers about 90% of the total project cost. SNIM will cover the remaining cost of the project and any additional cost that may arise. 48 Annual Report 2017

50 ANNEX 1 PROJECT 5 OF 13 Hashemite Kingdom of Jordan Irbid Ring Road (Phase I) Loan No.: 642 Interest Rate: 2.5% Beneficiary: Ministry of Public Works and Housing Grace Period: 7 years Project Cost: KD 49.6 million Maturity: 30 years Amount of 47 semi-annual KD 15.0 million Repayment: Loan: installments Date of Loan Agreement: 18/04/2017 First 7 years following the Date of Installment: first disbursement 16/07/2017 Effectiveness: Objectives: The project aims at improving land transportation services on the road network in Irbid greater city and the surrounding areas.the project also aims at accommodating and diverting part of the increasing traffic within the city of Irbid and the traffic transiting through it, in addition to reducing traffic congestion and accidents. Description: The project, which is expected to be completed by the end of 2020, constitutes the first phase of the Irbid ring road, and includes the parts located on the west side of the city of Irbid, with a total length of about 29 km. The project consists of the following main components: 1. Road Construction: This comprises the civil works related to the construction of the road, including earthworks, pavement layers, interchanges, bridges and tunnels at the intersections with the secondary roads, in addition to services networks, road lighting, and all necessary complementary works. The first phase of the project consists of two sections, as follows: a. First Section: This includes the part extending from the intersection of Um al Jadayil road in the North to the intersection of Al-Husun road in the South, with a length of about 17.6 km. b. Second Section: This section consists of two parts with a total length of about 11.5 km. The first part, with a total length of about 5.9 km, connects Um Qais road to the starting point of the first section at the intersection of Um al Jadayil road. The second part, with a total length of about 5.6 km, connects the end of the first section to the intersection of Amman road. 2. Consultancy Services: This includes the consultancy services required for the project studies, design and tender documents, in addition to the project management and the supervision of the works. Financing: The Arab Fund s loan covers about 30% of the total project cost. The Abu Dhabi Fund for Development contributed to the financing of the project with a grant equivalent to about KD20 million (41%). The Jordanian Government will cover the remaining cost of the project and any additional cost that may arise. Annual Report

51 ANNEX 1 PROJECT 6 OF 13 Republic of Sudan Construction of El Bagair Power Generating Station Loan No.: 643 Interest Rate: 2.0 % Beneficiary: Sudanese Thermal Power Generating Grace Period: 7 years Company (STPG) Project Cost: KD 66.5 million Maturity: 30 years Amount of 47 semi-annual KD 52.0 million Repayment: Loan: installments Date of Loan Agreement: 18/04/2017 First 7 years following the Date of Installment: first disbursement 01/08/2017 Effectiveness: Objectives: The project aims at reducing the existing and growing gap in satisfying the demand for electric power and energy on the Sudanese grid, through the construction of El Bagair power generating station south of Khartoum. The station will initially operate on crude oil as its primary fuel, then run on natural gas following the construction of a pipeline to supply the city of Khartoum with natural gas imported via Portsudan. Description: The project, which is expected to be completed by the end of 2019, includes the construction of a 350 MW simple cycle power generating station, along with all necessary civil, mechanical and electrical works. The project also includes the construction of a 15/220/500 kv substation to connect the station to the electrical transmission network, along with the required technical services. The project includes the following main components: 1. Civil Works: This includes the construction of the equipment foundations, the necessary buildings and an internal road network. 2. Two Gas Units: This includes the supply and installation of two gas turbines, each rated at 175 MW, two 15 kv generators, each rated at 200 MVA, along with all their accessories and associated mechanical and electrical works. 3. Two Substations and Interconnection to the Grid: This includes the construction of a 600 MVA substation from 15 kv to 220 kv then 500 kv, in order to connect the generating station with the Soba and Giad 220 kv substations, and prepare for the future interconnection of the generating station with the Jabal Awlia and Kabashi 500 kv substations, along with all busbars, transformers, circuit breakers, measurement, protection and control equipment for both substations. 4. Technical Services: This includes consultancy services required for bid analysis, assistance to STPG in drawing up the contracts, project supervision, equipment testing and preliminary acceptance. Financing: The Arab Fund s loan covers about 78% of the total project cost. The Sudanese Government will cover the remaining cost of the project and any additional cost that may arise. 50 Annual Report 2017

52 ANNEX 1 PROJECT 7 OF 13 Islamic Republic of Mauritania Water Supply to the Cities of Laayoune and Djiguenni, and Neighboring Villages Loan No.: 644 Interest Rate: 2.0% Beneficiary: Société Nationale de l Eau (SNDE) Grace Period: 7 years Project Cost: KD 16.7 million Maturity: 30 years Amount of 47 semi-annual KD 15.0 million Repayment: Loan: installments Date of Loan Agreement: 10/07/2017 First 7 years following the Date of Installment: first disbursement - Effectiveness: Objectives: The project aims at facing the current shortfall in the supply of drinking water to the cities of Laayoune and Djiguenni, and meeting their future water needs, as well as providing drinking water to about 14 neighboring villages, which will contribute to a reduction of the spread of diseases caused by consumption of contaminated water by the population, and an improvement of their living and health conditions. This will be achieved through the transport and distribution of water provided to the city of Timbedra through the Water Supply to Eastern Cities and Villages from Dhar Basin Project, which is about to be completed. Description: The project, which is expected to be completed by the end of the first quarter of 2021, includes the construction of a number of pumping stations and reservoirs, the laying of pipelines, and the installation of a number of public taps and house connections. The project also includes the provision of technical services required for the review of studies and the preparation of tender documents, the supervision of project implementation, and the provision of institutional support to SNDE. The project comprises the following components: 1. Water Transport and Distribution Facilities: This includes the laying of pipelines to transport water, with a total length of about 260 km and diameters ranging between 150 and 400 mm, the construction of 3 ground and elevated reservoirs with capacities ranging between about 250 and 1500 m 3, and the construction of 2 water pumping stations, the first with a capacity of about 200 m 3 /hour and the second with a capacity of about 50 m 3 / hour. The pumping stations works include all civil, hydro mechanical and electrical works, supply and installation of generators, transformers, power transmission lines, as well as required equipment and supplies for monitoring and operation. This component also includes the laying of pipelines to rehabilitate and expand the distribution networks in the cities of Laayoune and Djiguenni, and provide neighboring villages with drinking water, with a total length of about 76 km and diameters ranging between 63 and 400 mm, and the construction of 6 elevated reservoirs each with a capacity of about 25 m 3, in addition to the installation of a number of public taps and house connections. 2. Technical Services: This includes the review and update of project studies, the preparation of detailed designs and tender documents, and assistance in the tendering and evaluating process, as well as the supervision of project implementation. 3. Institutional Support: This includes the acquisition of some equipment required for the construction management and operation of the project. It also includes the provision of systems and programs required for the enhancement of the performance of SNDE and the training of its employees. Financing: The Arab Fund s loan covers about 90% of the total project cost. The Government of Mauritania will cover the remaining cost of the project and any additional cost that may arise. Annual Report

53 ANNEX 1 PROJECT 8 OF 13 Islamic Republic of Mauritania Electrical Interconnection Between Nouakchott and Zouerate on 225 kv Loan No.: 645 Interest Rate: 2.0% Beneficiary: Société Mauritanienne d Electricité (SOMELEC) Grace Period: 7 years Project Cost: KD 88.7 million Maturity: 30 years Amount of 47 semi-annual KD 42.0 million Repayment: Loan: installments Date of Loan Agreement: 10/07/2017 First 7 years following the Date of Installment: first disbursement - Effectiveness: Objectives: The project aims at providing secure and low cost energy to the northern region of the Islamic Republic of Mauritania, which has an abundance of minerals, and strengthening the transmission grid in it, through the construction of a 225 kv line interconnecting Nouakchott and Zouerate. Description: The project, which is expected to be completed by the end of 2020, includes the construction of 225 kv and 33 kv overhead lines from the city of Nouakchott to the city of Zouerate, passing through the cities of Akjoujt and Attar. The project also includes the expansion of an existing 225 kv substation in Nouakchott, the construction of new 225 kv substations in Akjoujt, Attar and Zouerate, and their connection to the existing corresponding substations in these cities, along with the provision of consultancy services required for the completion of the detailed designs and project supervision. The project consists of the following main components: 1. Transmission Lines: a. 225 kv Transmission Line: This includes the construction of a 670 km double circuit transmission line from the substation connected to the northern power plant in Nouakchott to the city of Zouerate, passing through the cities of Akjoujt and Attar. b. 33 kv Transmission Line: This includes the construction of a 33 km double circuit transmission line from the new 225/33 kv Attar substation to the existing Attar substation. 2. Substations: a. Expansion of the Substation Attached to the Northern Power Plant: This includes the addition of two 225 kv circuit breakers in the substation attached to the northern power plant, with all necessary measurement, protection and control equipment. b. Construction of New Substations: This includes the construction of three 225 kv substations in the cities of Akjoujt, Attar and Zouerate, and their connection to the existing corresponding substations in these cities. 3. Consultancy Services: This includes the consultancy services required for the completion of the detailed designs and project supervision. Financing: The Arab Fund s loan covers about 47% of the total project cost. It is expected that the Saudi Fund for Development and the Abu Dhabi Fund for Development will contribute to the financing of the project with loans equivalent to about KD 30.3 million (about 34%) and KD 15 million (about 17%), respectively. The Mauritanian government will cover the remaining cost of the project and any additional cost that may arise. 52 Annual Report 2017

54 ANNEX 1 PROJECT 9 OF 13 Republic of Tunisia Tunis Jelma Motorway Loan No.: 647 Interest Rate: 2.5% Beneficiary: Ministry of Equipment, Housing and Spatial Grace Period: 5 years Planning Project Cost: KD million Maturity: 30 years Amount of 51 semi-annual KD 50.0 million Repayment: Loan: installments Date of Loan Agreement: 11/07/2017 First 5 years following the Date of Installment: first disbursement - Effectiveness: Objectives: The project aims at improving land transportation services on the road network in Tunisia, accommodating the rapidly growing road traffic, reducing traffic accidents, and contributing to the economic and social development of the country s interior governorates, through the construction of the Tunis Jelma motorway, which constitutes an important part of the Tunis Kairouan Sidi Bouzid Kasserine and Gafsa motorway. Description: The project, which is expected to be completed by end of 2021, consists of the construction of the Tunis Jelma motorway, which has a length of about 186 km and consists of 4 lanes, 2 in each direction, with a width of 7 m, a median dividing the two directions with a width ranging between 7 and 12 m, and outer shoulders on both sides of the road with a width of 3 m on each side. The project also consists of the rehabilitation of a connection of about 16 km to link the motorway with the city of El Fahs in the governorate of Zaghouan. The project comprises the following main components: 1. Road Construction Works: This includes the execution of the necessary civil works related to the construction of the motorway and the rehabilitation of the connection to the city of El Fahs, drainage works, construction works for interchanges, large bridges over valleys, other over-passes and under-passes, culverts, construction of rest areas and toll stations, in addition to works related to traffic safety, landscaping, and others. 2. Relocation of Utility Networks: This includes the relocation of the water, electricity and telephone networks, and others. 3. Equipment and Devices: This includes the procurement and installation of equipment and devices related to the toll stations on the motorway. 4. Consultancy Services: This includes the provision of the consultancy services required to assist the ministry in the supervision of the execution of the project and the technical control of the works. Financing: The Arab Fund s loan covers about 28% of the total project cost. The European Investment Bank contributes to the financing of the project with a loan equivalent to about KD 85.7 million (about 48%). The Tunisian government will cover the remaining cost of the project and any additional cost that may arise. Annual Report

55 ANNEX 1 PROJECT 10 OF 13 Hashemite Kingdom of Jordan As Salt Ring Road Loan No.: 648 Interest Rate: 2.5% Beneficiary: Ministry of Public Works and Housing Grace Period: 7 years Project Cost: KD 37.8 million Maturity: 30 years Amount of 47 semi-annual KD 14.0 million Repayment: Loan: installments Date of Loan Agreement: 11/07/2017 First 7 years following the Date of Installment: first disbursement 24/08/2017 Effectiveness: Objectives: The project aims at improving land transportation services on the main road network in the city of As Salt and the surrounding areas. The project also aims at accommodating and diverting part of the increasing traffic within the city center and the traffic transiting through it, in addition to reducing traffic congestion and accidents. Description: The project, which is expected to be completed by the end of 2020, consists of the construction of a ring road around the city of As Salt with a total length of about 22 km. The project comprises the following main components: 1. Road Construction: This consists of the civil works related to the construction of the road, including earthworks, laying of foundations, pavement layers, structural construction works for interchanges, necessary bridges and tunnels at the intersections with secondary roads, in addition to the service and lighting networks, and all necessary complementary works. The project execution has been divided into three sections, as follows: a. Western Section: This includes the execution of the part located west of As Salt, which extends from its intersection with the existing road As Salt Amman in the north to its intersection with the road leading to Balqa Applied University in the south, with a total length of about 8 km. b. Southern Section: This includes the execution of the part located south of As Salt, which begins at the end of the western section and ends after the meeting point between the ring road and Wadi Shuai b road, with a total length of about 6 km. c. Eastern Section: This includes the execution of the part located east of As Salt, which links the end of the southern section with the existing road As Salt Amman, with a total length of about 8 km. 2. Consultancy Services: This includes the provision of the consultancy services required for the project studies, designs and bid documents, in addition to the supervision of the works. Financing: The Arab Fund s loan covers about 37% of the total project cost. The Abu Dhabi Fund for Development contributed to the financing of the project with a grant equivalent to about KD 8.5 million (about 23%). The Jordanian government will cover the remaining cost of the project and any additional cost that may arise. 54 Annual Report 2017

56 ANNEX 1 PROJECT 11 OF 13 Sultanate of Oman Development of Part of Road 32 in the Special Economic Zone of Duqm Loan No.: 646 Interest Rate: 2.5% Beneficiary: Special Economic Zone Authority Duqm Grace Period: 5 years Project Cost: KD million Maturity: 30 years Amount of 51 semi-annual KD 52.0 million Repayment: Loan: installments Date of Loan Agreement: 12/07/2017 First 5 years following the Date of Installment: first disbursement 03/10/2017 Effectiveness: Objectives: The project aims at improving and developing land transportation services within the boundaries of the special economic zone of Duqm, and accommodating increasing traffic which will result from connecting the main projects in this zone, most notably the commercial port, the refinery, Duqm airport, and the areas allocated for heavy, medium and light manufacturing, in addition to being part of national road 32, which links north Ash-Sharqiyah governorate with Al Wusta governorate and the other governorates of the Sultanate. The project will contribute to the movement of goods between future investment projects in the zone and the other parts of the Sultanate. Description: The project, which is expected to be completed by the end of 2021, includes the development of the part of road 32 which lies within the economic zone of Duqm. The construction of the road, which has a total length of about 30 km, was divided into two phases. The first phase consists of the construction of the southern part of the road, which has a length of about 16.2 km, a width of about 120 m, and three-lane dual carriageways, with a total width of about 11.2 m each way, separated by a median with shoulders on both sides, in addition to two-lane service roads on each side of the main road with a total length of about 23 km and a width of about 7.3 m. This phase consists of the construction of several concrete bridges over Wadi Dungart, and both Wadi Say and Wadi Al Jarf. The second phase consists of the construction of the northern part of the road, which has a length of about 13.8 km, and is planned to have the same specifications and dimensions as the southern part of the road. This phase is expected to be executed over the period The project consists of the following main components: 1. Civil Works: This includes preparatory works, removal of the existing road, earthworks, asphalt paving, structural bridges works, and complementary works necessary for the road, such as road embankment, water drainage facilities, road lighting, traffic safety, landscaping, ground services and channel ducts for future services. Annual Report

57 ANNEX 1 PROJECT 11 OF 13 CONTD. 2. Consultancy Services: This includes the consultancy services necessary for the preparation of studies, specifications, designs, detailed plans and bid documents, assistance in bid analysis and works supervision. Financing: The Arab Fund s loan covers about 45% of the total project cost. The Omani government will cover the remaining cost of the project and any additional cost that may arise. 56 Annual Report 2017

58 ANNEX 1 PROJECT 12 OF 13 Sultanate of Oman Reinforcement of Desalinated Water Transmission Lines in Ash Sharqiyah Governorates Loan No.: 649 Interest Rate: 2.5% Beneficiary: Public Authority for Electricity and Water Grace Period: 6 years Project Cost: KD million Maturity: 30 years Amount of 49 semi-annual KD 60.0 million Repayment: Loan: installments Date of Loan Agreement: 23/11/2017 First 6 years following the Date of Installment: first disbursement - Effectiveness: Objectives: The project aims at reducing the current drinking water deficit, and meeting the increasing future water needs in North and South Ash Sharqiyah governorates. This will be achieved through the laying of transmission lines to transfer desalinated water, available from the recently expanded Al Sur plant, and from the Al Ashkhara plant, which is expected to be completed in the year 2020, to provide all states in both Ash Sharqiyah governorates with drinking water up to the year Description: The project, which is expected to be completed in the second quarter of 2022, consists of the laying of pipelines, the construction of water reservoirs, the increase of the capacity of a number of existing water pumping stations and the construction of new stations, including the works required to provide these stations with electricity, as well as all civil, hydro mechanical and electrical works, and the establishment of the necessary monitoring and control systems in the project facilities and their operation. The project also consists of the required technical services to prepare the studies, designs and tender documents, and works supervision. The project consists of the following components: 1. Water Transmission Facilities from Al Ashkhara to Al Qabil: This includes the laying of a main pipeline with a length of about 145 km and diameters ranging between 1000 and 1400 mm, and secondary pipelines with a total length of about 5.5 km and a diameter of about 600 mm, as well as the increasing of the capacity of the existing Al Kamil water pumping station to about 1070 m 3 /hour and the construction of 8 new water pumping stations with capacities ranging between about 840 m 3 /hour and 3580 m 3 /hour each. This also includes the construction of 4 reservoirs with capacities ranging between m 3 and m 3 each, and the provision and installation of the necessary equipment and supplies for the protection and operation of the transmission lines, and the control of the pumping stations. 2. Water Transmission Facilities from Al Qabil to Al Mudhaibi: This includes the laying of main and secondary pipelines with a total length of about 90 km and diameters ranging between 300 and 1000 mm, and the construction of 2 reservoirs, each with a capacity of about m 3. Annual Report

59 ANNEX 1 PROJECT 12 OF 13 CONTD. 3. Water Transmission Network in Al Mudhaibi: This includes the laying of main and secondary pipelines with a total length of about 92 km and diameters ranging between 300 and 800 mm, and the construction of 12 reservoirs with capacities ranging between about 1000 m 3 and m 3 each, in addition to the establishment of a monitoring and control system in the water transmission network. 4. Technical Services: This includes the required consultancy services to prepare the studies, designs and tender documents for the project, and the supervision of the works. Financing: The Arab Fund s loan covers about 36% of the total project cost. The Omani Government will cover the remaining cost of the project and any additional cost that may arise. 58 Annual Report 2017

60 ANNEX 1 PROJECT 13 OF 13 Arab Republic of Egypt Development of the Electric Transmission Grid Loan No.: 651 Interest Rate: 2.5% Beneficiary: Egyptian Electricity Transmission Company Grace Period: 4 years Project Cost: KD 88.5 million Maturity: 30 years Amount of 53 semi-annual KD 60.0 million Repayment: Loan: installments Date of Loan Agreement: 23/11/2017 First 4 years following the Date of Installment: first disbursement - Effectiveness: Objectives: The project aims at satisfying the demand for electricity in areas with high electric loads, by developing and expanding the electric power transmission grid. This will be accomplished by constructing substations operating on 500 kv, 220 kv, 66 kv, 22 kv and 11 kv, and constructing aerial lines and laying down underground cables to connect the new substations to the power grid. Description: The project, which is expected to be completed by the end of the last quarter of 2019, includes the construction of new substations, and the procurement and installation of circuit breakers, bus bars, transformers, and measurement, protection and control systems, as well as aerial lines, underground cables, and carrying out all supplementary works, in addition to consulting and technical services. The project consists of the following components: 1. Substations: a. Alhawamdiya 500: This includes the construction and installation of a gas-insulated substation operating on 500 kv, 220 kv, 66 kv, and 11 kv, including circuit breakers, capacitors, transformers and accessories. b. Al Iktisadiya 500 (Elain Alsokhna): This includes the construction and installation of a gas-insulated substation operating on 500 kv, 220 kv, 66 kv and 22 kv, including circuit breakers, transformers and accessories. c. West Damietta 500: This includes the construction and installation of a gas-insulated substation operating on 500 kv and 220 kv, including circuit breakers, transformers and accessories. 2. Aerial Lines and Underground Cables: This includes modifying existing lines and procurement and installation of 500 kv, 220 kv, 66 kv and 11 kv aerial lines and underground cables. 3. Consulting and Technical Services: This includes the consulting and technical services necessary to review the design and specifications of substations, tender documents, and to supervise project execution. Financing: The Arab Fund s loan covers about 68% of the total project cost. The Egyptian Government will cover the remaining cost of the project and any additional cost that may arise. Annual Report

61 ANNEX 2 PAGE 1 OF 2 Capital, Resources and Status of Loans and Grants (KD Million) Years Capital Total Resources Income Administrative Expenses Surplus Income Signed Loans , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Total - - 3, , , Annual Report 2017

62 ANNEX 2 PAGE 2 OF 2 Capital, Resources and Status of Loans and Grants (KD Million) No. of Loans* Average Amount of Loan* Loan Repayments Grants Grant No. of Member States No. of Beneficiary Countries No. of Technical Staff , , * Based on the date of signature of the loan agreement. Annual Report

63 Growth in Arab Fund Resources During the Period (KD Million) Reserves Capital Annual Report 2017

64 Loans,, Repayments and Debt Owed to the Arab Fund During the Period (KD Million) Million KD Loans Repayments Debt Owed to the Arab Fund Cumulative Loans,, Repayments and Debt Owed to the Arab Fund During the Period (KD Million) Million KD x x x x x x x x x Loans Repayments x Debt Owed to the Arab Fund Annual Report

65 ANNEX 3 Summary of Loans Extended to Member States (KD Million) Beneficiary States No. of Loans Approved Net Approved Amount of Loans Cancelled Net % Net Loans Effective Loans and Effective Loans % to Effective Loans 1 Hashemite Kingdom of Jordan Republic of Tunisia Algerian Democratic and People s Republic Republic of Sudan Republic of Iraq Syrian Arab Republic State of Libya Arab Republic of Egypt , , Republic of Yemen Republic of Lebanon Kingdom of Morocco , , , Kingdom of Bahrain Somali Democratic Republic Islamic Republic of Mauritania Sultanate of Oman Palestine Republic of Djibouti Total , , , , Annual Report 2017

66 ANNEX 4 Sectoral Distribution of Loans Among Beneficiary Member States, (KD Million) Beneficiary States Transport Infrastructure Sectors Telecommunications Energy and Electricity Water and Sewerage Productive Sectors Agriculture and Rural Development Industry and Mining Social Services Sectors* Other Sectors Grand Total Percentage 1 Hashemite Kingdom of Jordan Republic of Tunisia Algerian Democratic and People s Republic Republic of Sudan Republic of Iraq Syrian Arab Republic State of Libya Arab Republic of Egypt , Republic of Yemen Republic of Lebanon Kingdom of Morocco , Kingdom of Bahrain Somali Democratic Republic Islamic Republic of Mauritania Sultanate of Oman Palestine Republic of Djibouti Total 2, , , , , Percentage * Includes Education, Health, Housing and Social Development Sectors. Annual Report

67 Sectoral Distribution of Loans Among Beneficiary Countries, (KD Million) Jordan Tunisia Algeria Sudan Iraq Syria Libya Egypt Yemen Lebanon Morocco Bahrain Somalia Mauritania Oman Palestine Djibouti Transport Telecommunications Energy & Electric Power Water & Sewerage Agriculture & Rural Development Industry & Mining Social Services Others 66 Annual Report 2017

68 ANNEX 5 PAGE 1 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (1) Hashemite Kingdom of Jordan 1 Amman Northern Approach* 14/75 5, ,931 4,931 2 Electric Power Development I* 19/76 6, ,000 6,000 3 Electric Power Development II* 43/77 5, ,900 5,900 4 Aqaba Water* 47/79 2, ,971 1,971 5 Second Pan-Arab Telecommunications* 58/80 5,000 4, White Cement Industry 78/82 5, ,000 5,000 (Jordan and Syria)* 7 Potable Water to the Rural Areas* 82/ Electric Power Development III 92/82 5, ,000 5,000 (Aqaba Power Station)* 9 Fifth Pan-Arab Telecommunications 96/82 1, ,000 1,000 (Inter-Arab)/(Earth Stations)* 10 Small Farmers Credit in the Jordan Valley* 108/83 2, ,500 2, Zarqa-Al Mafraq-Syrian Border Road* 118/83 4, ,000 4, Central Ghors Irrigation* 145/84 6, ,918 5, Mitigation of Earthquake Risks* 148/ The Lower Zarqa River Basin* 165/85 5, ,000 5, Zara-Ghor Haditha Road* 175/86 5, ,573 5, Ruwaishid Pilot Scheme in Hammad 184/86 1, ,496 1,496 Basin (Inter-Arab)* 17 Extension of Aqaba Thermal Power Station** 192/87 7,000 7, Shaidiya Phosphate Mines* 224/89 8, ,300 7, Jordan-Egypt Power Link* 233/89 10, ,500 10, Supporting Operations of Jordan 239/90 8, ,000 8,000 Electricity Authority and the Jordan Phosphate Mines Co.* 21 Industrial Development Bank 252/90 5, ,983 4,983 Operations Program, * 22 Karameh Dam* 277/93 15,000 1,104-13,896 13, Second Agricultural Credit for Income 283/93 2, ,500 2,500 Diversification* 24 King Abdallah Teaching Hospital* 285/93 10, ,601 9, Aqaba Power Station Phase II and Reinforcement of Internal Transmission Lines* 26 Interconnection of Jordan and Syria Power Grids (Jordan)* 27 Aqaba Thermal Power Station (Phase III)* 28 Hwarat-Abu Zeighan Irrigation Water Pipeline* 29 Infrastructure Development in the Poor Areas* 30 Integrated Development in the Southern Ghors* 301/94 35, ,000 34, /95 19, ,500 18, /95 26, ,000 24, /96 1, ,305 1, /97 6, ,554 4, /97 34,000 11,395-22,605 18,349 * Completed Project. ** Fully Cancelled Loan. Annual Report

69 ANNEX 5 PAGE 2 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (1) Hashemite Kingdom of Jordan 31 Integrated Development in the Southern 365/98 12, ,644 9,194 Ghors (Phase II - Mujib Dam)* 32 King Abdallah Teaching Hospital 371/98 15, ,971 12,241 (Second Loan)* 33 Prince Hamza Hospital* 386/99 23,000 9,348-13,652 9, Al-Wehdah Dam* 394/ ,000 6,082-28,918 16, Education Reform - School Buildings* 444/ , ,682 5, Amman Development Corridor (Section I)* 455/ , ,999 3, Al-Samra Power Generating Station* 462/ , ,000 9, Amman Development Corridor - 499/ , ,000 1,160 Phase I (Second Loan)* 39 Al-Samra Power Generating Station (Phase II)* 515/ , ,000 6, Comprehensive Development of 522/2007 6, ,926 1,530 Wadi Araba Region (Phase l) 41 Al-Samra Electric Power Generating 524/ , ,000 6,880 Station (Phase lii)* 42 Al-Samra Electric Power Generating 542/ , ,000 5,670 Station (Financing Phase IV and Additional Financing for Phase III)* 43 Sanam Coated Glass Factory (P)* 12P/2010 4, , Al-Samra Electric Power Generating 567/ , ,519 2,460 Station (Phase V)* 45 Al-Samra Electric Power Generating 587/ , ,632 1,620 Station (Phase VI)* 46 Al-Samra Electric Power Generating 620/ ,000-7,161 7,788 - Station (Phase VII) 47 Program to Supoort Small and Medium 623/ ,000-6,000 6,000 - Private Sector Projects and Enterprises 48 Infrastructure Development in the 630/2015 6,000-1,656 2,339 - Petra Region 49 Irbid Ring Road (Phase 1) 642/ , As Salt Ring Road 648/ , Subtotal 618,650 43,039 14, , ,034 (2) Republic of Tunisia 1 Tunis Sud Electric Power* 3/74 2, ,999 1,999 2 El-Borma Gas* 15/75 4, ,996 3,996 3 Development Credit* 34/77 7, ,000 7,000 4 Water Supply for Industry in Gabes* 50/79 3,300 1,018-2,282 2,282 5 Ghardima Plain Irrigation* 57/80 3, ,022 3,022 6 Bizerte Fisheries Port* 64/81 3, ,151 3,151 7 Fourth Pan-Arab Telecommunications* 72/81 3, ,700 3,700 8 Potable Water to Rural Areas* 83/ Wadi Lubna for Irrigation and Agricultural Development* 91/82 3,500 1,628-1,872 1, Fifth Pan-Arab Telecommunications (Earth Stations)* 101/82 1, * Completed Project. (P): Private Sector Project. 68 Annual Report 2017

70 ANNEX 5 PAGE 3 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (2) Republic of Tunisia 11 Water Supply for the Central and 115/83 4,000 1,489-2,511 2,511 Southern Coastal Areas* 12 Mornag Agriculture* 123/83 1, ,367 1, Burj Tomi, Mater and Sajnan Irrigation* 144/84 6,000 2,700-3,300 3, Mitigation of Earthquake Risks* 149/ Integrated Rural Development (Phase I)* 166/85 14, ,000 14, Northern Roads Development* 190/87 7, ,000 7, Monastir Fishery Port* 195/87 1, ,228 1, Al-Qairawan Plain Irrigation* 207/88 5,500 2,079-3,421 3, Tunis Municipality Road Rehabilitation* 213/88 2, ,700 2, Rehabilitation and Maintenance of 228/89 16, ,000 16,000 the Phosphoric Acid and Fertilizers Company s Factories* 21 Hammamat-Masaken Motorway* 242/90 20, ,000 20, Tunisia-Libya Power Link* 243/90 17, ,800 14, Maintenance of Flood-Damaged Roads* 253/90 5,000 1,049-3,951 3, Sidi El-Barraq Dam Project for 273/92 20,000 3,217-16,783 16,783 Potable Water and Irrigation* 25 Integrated Rural Development (Phase II)* 293/94 21, ,628 20, Roads Development* 296/94 10, ,000 10, University Buildings in Gafsa* 321/96 10,000 2,119-7,881 7, Al-Wakael Project (Phase III)* 328/96 5, ,746 4, Zarqa Dam and the Irrigation of 338/96 13,000 3,830-9,170 7,525 Tbarqa and Mekna Plains* 30 Hima, Abeed, Rumail and Al-Bark 348/97 22,000 6,497-15,503 12,738 Dams for Irrigation* 31 Supporting the Vocational Training 361/97 11, ,866 8,556 and Employment Programs* 32 Improvement of the Roads Network 374/98 35, ,970 25,970 and Rural Roads* Development* 33 Tunis - Bizerte Motorway* 382/99 24,000 4,877-19,123 13, El-Kebir and El-Maoula Dams* 391/99 28,000 4,525-23,475 13, Development of the Industrial Parks* 402/ ,000 4,776-9,224 6, Tunis - Mejez El-Bab Motorway* 405/ ,000 1,885-23,115 14, Developmental Credit Lines* 413/ ,000 2,000-9,000 5, Construction of Six Dams in the North 428/ ,000 6,263-25,737 13,407 to Supply Potable Water* 39 Modernization of the Transmission 443/ , ,000 15,480 Network* 40 Sarrat Dam and Irrigation of Oulad 459/ ,000-1,605 9,788 3,240 Bou Ghanem and Mahjouba Plains 41 Al-Wakael Project (Phase IV)* 464/2004 4,000 1,702-2,298 1, Regional and Rural Roads Network* 483/ , ,875 5, Wadi Al-Kabir Dam in Gafsa Province* 490/2006 3, , Ghannouch Combined Cycle Power Generating Station 494/ , ,938 6,390 * Completed Project. Annual Report

71 ANNEX 5 PAGE 4 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (2) Republic of Tunisia 45 Regional and Rural Roads Network 518/ ,000 1,226-20,774 6,024 (Phase II)* 46 Ghannouch Combined Cycle Power 543/ , ,000 3,870 Generating Station (Supplementary Loan)* 47 Sousse Power Generating Station 553/ ,000-1,435 30,101 3,000 (Second Expansion) 48 Oued Zarga - Bousalem Motorway 561/ ,000-3,677 24,507 1, Urgent Program to Support Small 573/ ,000-5,000 10,000 - Private Sector Projects 50 Integrated Development Program 574/ ,000-2,394 17, Mdhila 2 Triple Super Phosphate 592/ ,000-3,879 5,840 - Fertilizer Production 52 Regional and Rural Roads Network 608/ ,000-8,111 18,736 - (Phase III) 53 Upper Mellegue Dam 609/ , Development of the Classified Road 624/ ,000-14,587 17,879 - Network and Rural Roads 55 Construction of Saida and Kalaa 631/ , Kebira Dams, and Related Water Conveyance Facilities 56 Construction of Bridges on Classified 640/ , Roads 57 Tunis - Jelma Motorway 647/ , Subtotal 935,775 55,837 41, , ,681 (3) Algerian Democratic and People s Republic 1 New Arzew Port* 5/74 6,000 1,563-4,437 4,437 2 Telecommunications* 10A/ Jijel Port* 42/77 12,000 6,760-5,240 5,240 4 Navigation Inspection Unit* 55/80 2, ,930 1,930 5 Fourth Pan-Arab Telecommunications* 71/81 4, ,347 4,347 6 Two Hospitals in Tihart State* 94/82 5,000 1,624-3,376 3,376 7 Fifth Pan-Arab Telecommunications 102/82 1, ,000 1,000 (Earth Stations)* 8 The Mitigation of Earthquake Risks 117/83 4,700 3, (First Loan)* 9 Agricultural Credit* 140/84 6, ,000 6, Wadi Mina Irrigation* 167/85 6,500 1,364-5,136 5, Sharfa Dam* 183/86 10,800 2,042-8,758 8, Bani Haroun Dam for Municipal Water, 210/88 17, ,873 16,873 Electricity and Irrigation (First Loan)* 13 South Power Supply: Adrar Power 261/91 21,000 1,028-19,972 19,972 Station* 14 Bashar-National Grid Power Link* 280/93 16,000 2,235-13,765 13, Bani Haroun Dam for Municipal Water, Electricity and Irrigation (Supplementary Loan)* * Completed Project. 298/94 6, ,000 6, Annual Report 2017

72 ANNEX 5 PAGE 5 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (3) Algerian Democratic and People s Republic 16 Power Generating Station in Hassi 324/96 40, ,943 39,943 Massoud* 17 The Mitigation of Earthquake Risks 332/96 3,500 1,887-1,613 1,613 (Second Loan)* 18 Development of Small and Medium 339/97 10,000 1,012-8,988 8,988 Industries* 19 Power Generating Station in Hassi 353/97 10, ,953 9,953 Massoud (Supplementary Loan)* 20 Al-Hama Power Generation Station* 377/98 30,000 1,476-28,524 28, Upgrading of the Electric Grid* 387/99 30, ,000 30, Development of Social Housing in the 396/ ,000 12,190-22,810 22,810 Central Region* 23 Pumping and Conveyance of Bani 415/ ,000 3,902-27,098 27,098 Haroun Water (First Stage)* 24 Conveyance of Bani Haroun Water 424/ ,000 21,597-8,403 8,403 (Conveyor to Othmania Dam)* 25 Afroun- Husseinia Motorway* 426/ ,000 19,599-7,401 7, Housing Construction and 450/ ,000 30, Reconstruction** Subtotal 395, , , ,811 (4) Republic of Sudan 1 Gadaref-Kassala Motorway 6/74 8, ,000 8,000 (First Loan)* 2 Telecommunications* 9/75 4, ,543 4,543 3 Rahad Roads* 16/75 4, ,389 4,389 4 Sennar-Damazin Motorway* 31/76 11, ,014 10,014 5 Railways Development* 46/77 5, ,968 4,968 6 Gadaref-Kassala Motorway 51/79 5, ,200 5,200 (Supplementary Loan)* 7 Nzara Rural Development** 65/81 2,500 2, Potable Water for the Rural Areas* 84/82 1, ,727 1,727 9 Fifth Pan-Arab Telecommunications 100/82 1, ,077 1,077 (Earth Stations)* 10 Rehabilitation of Sugar Industry 110/83 6, ,000 6,000 (First Loan)* 11 Rehabilitation of Sugar Industry 111/83 7, ,500 7,500 (Second Loan)* 12 Rehabilitation of Gezira Agricultural 136/84 8, ,000 8,000 Scheme (First Loan)* 13 Rehabilitation of Gezira Agricultural 155/85 4, ,400 4,400 Scheme (Second Loan)* 14 Rehabilitation of Khartoum Water and 179/86 2, ,500 2,500 Sewerage Facilities* 15 Rehabilitation of Telecommunications 180/86 1, ,600 1,600 (Phase I)* 16 Rehabilitation of the Sugar Industry (Third Loan)* 181/86 3, ,400 2,420 * Completed Project. ** Fully Cancelled Loan. Annual Report

73 ANNEX 5 PAGE 6 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (4) Republic of Sudan 17 Rehabilitation of Gezira Agricultural 182/86 9, ,600 8,010 Scheme (Third Loan)* 18 National Power Grid* 198/87 8, ,500 8, Port Sudan Water Supply* 206/87 10,000 5,000-5,000 3, Textiles Rehabilitation* 208/88 4,500 3, Paving of the Main Roads* 392/ , ,000 11, Roseires Dam* 393/ , ,000 6, Atbara - Haiya - Port Sudan Road* 410/ , ,000 8, Merowe Dam* 422/ , ,000 17, Generation and Transmission of 448/ , ,000 8,000 Electricity from Merowe Dam* 26 Gadaref-Doka-Gallabat Road* 457/2003 9, ,870 2, Merowe Dam Road* 474/2005 4, ,534 1, White Nile Sugar* 476/ , ,000 5, Heightening of Roseires Dam (Phase II)* 521/ , ,000 6, Merowe Dam (Supplementary Loan)* 528/ , ,634 6, Al Salam Cement Factory (P)* 8P/2008 2, ,778 2, White Nile Sugar (Supplementary Loan) 548/ , ,198 1, Khartoum New International Airport 552/ , Upper Atbara and Setit Dams Complex 557/ , , Electric Power Generating Station in the 566/ ,000-6,017 19,635 - Upper Atbara and Setit Dams Complex 36 East Sudan Roads 578/ ,000-8,093 29, Water Harvesting in Border Provinces 582/ , , Loan Program for Industrial 586/ , Development Projects 39 Upper Atbara and Setit Dams 591/ ,000-1,614 6,765 - Complex (Supplementary Loan) 40 Nyala - El-Geneina Transmission 599/ , Line to the Darfur States 41 Roseires Irrigation (Phase I) 633/ , Construction of El Bagair Power 643/ , Generating Station Subtotal 836,778 12,977 16, , ,231 (5) Republic of Iraq 1 Deep Freeze Store* 107/83 10,000 1,700-7,259 3,032 2 Fifth Pan-Arab Telecommunications 141/84 5, ,373 - (Earth Stations-Arabsat) 3 Mitigation of Earthquake Risks 150/ Deep Freeze Store in Ninawa** 169/85 8,900 8, Agricultural Credit 200/87 8, ,678-6 Industrial Credit 209/88 8, ,726-7 Industrial Credit II 225/89 2, * Completed Project. ** Fully Cancelled Loan. (P): Private Sector Project. 72 Annual Report 2017

74 ANNEX 5 PAGE 7 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (5) Republic of Iraq 8 Abattoir and Meat Processing Unit 226/89 3, (Central Region) 9 Abattoir and Meat Processing 235/90 4, Unit-Basra 10 Basra Power Grid 248/90 8, Subtotal 59,725 10,600-19,571 3,095 (6) Syrian Arab Republic 1 Fuel Storage Tanks* 2/74 2, ,000 2,000 2 Cattle Breeding (Ghab)* 8/74 5,400 3,412-1,988 1,988 3 Damascus Water Supply (First Loan)* 26/76 12, ,000 12,000 4 Banias Power Station* 45/77 6, ,000 6,000 5 Second Pan-Arab 60/80 2, ,782 1,782 Telecommunications* 6 Homs and Hama Sewerage* 61/81 5,000 4, Damascus Garbage Composting* 70/81 2, ,198 2,198 8 Tartous-Lattakia Motorway* 93/82 6, ,000 6,000 9 Fifth Pan-Arab Telecommunications 95/82 1, ,000 1,000 (Earth Stations)* 10 Damascus-Sanamein-Jordanian 128/83 9, ,000 9,000 Border Road* 11 Mehardeh Power Station Extension 146/84 6, ,261 6,261 (First Loan)* 12 Mitigation of Earthquake Risks* 151/ Pesticides Arab Joint Venture 154/84 1,900 1, (Syria-Jordan)** 14 Mehardeh Power Station Extension 156/85 4, ,357 4,357 (Second Loan)* 15 Damascus Water Supply 164/85 3, ,639 2,639 (Second Loan)* 16 Fifth Pan-Arab Telecommunications 172/86 1, ,000 1,000 (Earth Stations) - (Supplementary Loan)* 17 Tenf Pilot Scheme in Hammad Basin 185/86 1, ,700 1,700 (Inter-Arab)* 18 Ghab and Asharneh Plains Irrigation* 193/87 15, ,005 14, Mehardeh Power Station Extension 194/87 2, ,500 2,500 (Supplementary Loan)* 20 Hamah-Saraqeb Road and Ain 214/88 8, ,969 7,741 Eissa-Qintari Road* 21 Homs and Hama Sewerage* 241/90 9,500 1,944-7,556 7, Aleppo Sewerage* 245/90 12,500 5,434-7,066 6, Rehabilitation of Phosphate Fertilizer 246/90 10,000 1,082-8,918 8,195 Plant in Homs* 24 Khaboor Irrigation (Phase I)* 250/90 15,000 1,281-13,719 12, Jourine Joint Water Supply* 260/91 5,500 1,598-3,902 3, Phosphate Fertilizers in Tadmur 265/92 30, * Completed Project. ** Fully Cancelled Loan. Annual Report

75 ANNEX 5 PAGE 8 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (6) Syrian Arab Republic 27 Medical Equipment in Hospitals* 271/92 13, ,977 9, Southern Region Agricultural 274/92 3, ,591 1,909 Development Project (Phase II)* 29 Tishrin Hydroelectric Dam* 279/93 36,000 3,054-32,946 24, Rehabilitation of Sulphuric Acid Plant 287/93 6, ,261 5,261 in Homs* 31 Zeizoun Power Generating Station* 291/93 30, ,311 21, Agricultural Development in Jabal 307/95 2, , Al-Hoss* 33 Interconnection of Jordan and Syria 312/95 30, ,223 17,290 Power Grids (Syria)* 34 Syria-Turkey Power Grid 314/95 26,000 2,936-23,064 10,714 Interconnection and Reinforcing the Syrian Internal Network* 35 Construction of 66 kv Substations in 319/95 15, ,902 5,880 Six Governorates* 36 Agricultural Development in the 327/96 17,500 6,559-10,941 3,741 Coastal and Central Areas* 37 Modernization of the Communications 351/97 26, ,950 11,840 System in Syria (1.650 million new lines)* 38 National Control Center for the 366/98 10, ,382 3,575 Electric System* 39 Integrated Development in the Badia* 368/98 20, ,659 5, Lattakia - Ariha Motorway 379/98 30, ,829 11, Modernization of the Communications System (Subscribers Networks)* 42 The Expansion and Conversion to Combined Cycle of Nasrieh Power Plant * 43 Transformation Stations in the Industrial Cities of Rif Dimashq, Homs and Aleppo Provinces* 44 Rural Development in Idlib Governorate 45 Converting Zeizoun Power Station to Combined Cycle* 384/99 30, ,000 10, / , ,293 2, /2002 9, ,371 1, /2002 5, / , ,654 2, Power Generating Station in the 469/ , ,643 - South (Deir Aly)* 47 Arab Gas Pipeline Project - Third 529/ , ,881 - Stage (Aleppo - Kalas Section) 48 Expansion of Deir Ali Power 536/ , ,169 - Generating Station 49 Deir Al-Zor - Al-Boukamal Road 537/ , Power Generating Station in the 493/ , Eastern Region (Deir Al-Zor) 51 Power Generating Station in the 565/ , Eastern Region (Deir Al-Zor) - (Supplementary Loan) Subtotal 696,975 39, , ,024 * Completed Project. 74 Annual Report 2017

76 ANNEX 5 PAGE 9 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (7) State of Libya 1 Two Fish Packaging Plants in 240/90 11,000 1,867-9,133 9,133 Sabrata and Zlaiten* 2 Libya-Tunisia Power Link * 244/90 2, , Interconnection of the Libyan and 326/96 12,000 2,590-9,410 6,650 Egyptian Power Grids (Libya)* 4 National Control Center for the 329/96 20, ,000 5,139 Libyan Electrical System* 5 Submarine Fiber Optic Cable* 369/98 12,500 2,932-9,568 9,568 6 Development Credit** 385/99 25,000 25, Converting North Benghazi Electrical 398/ , ,000 7,600 Power Plant to Combined Cycle* 8 Conversion of Al-Zawya Power 437/ , ,012 7,500 Station to Combined Cycle* 9 Electrical Inter-Connection at 400 kv 458/ , ,336 8,050 (Phase II) Subtotal 175,700 33, ,875 54,427 (8) Arab Republic of Egypt 1 Talkha II Fertilizers (First Loan)* 4/74 6, ,500 6,500 2 Tourah Cement Expansion* 11/75 6, ,700 6,700 3 Cairo-Fustat Water Supply* 17/75 9,700 1,806-7,894 7,894 4 Cairo-Helwan Sewerage* 18/75 8,300 7, Talkha II Fertilizers (Supplementary 24/76 2, ,694 2,694 Loan)* 6 Abu-Qir Power Station Extension* 28/76 12,000 3,041-8,959 8,959 7 Kafr El-Dawar Textiles* 30/76 10, ,000 10,000 8 Suez Canal Development* 40/77 12, ,000 12,000 9 Dumyat Power Station (Phase II)* 221/89 35, ,300 34, Idfu Wood Pulp Plant Extension* 229/89 7, ,868 6, Egypt-Jordan Power Link* 234/89 34,100 3,339-30,761 30, Soda Ash Plant (First Loan)* 238/90 7, ,000 7, Ammonium Nitrate Unit* 247/90 8, ,000 8, Kureimat Power Station* 254/91 36,250 3,585-32,665 32, Rubber Tires and Tubes Factory 255/91 10, ,500 10,260 Extension* 16 Social Development Fund (Phase I)* 256/91 14, ,389 14, Sewerage Projects in 46 Towns* 270/92 36,000 14,732-21,268 19, Sidi-Kreir Thermal Power Station* 272/92 44,000 6,363-37,637 31, Mitigation of Earthquake Risks* 275/92 2, ,999 1, Reconstruction of Earthquake Damaged Schools* 276/93 15, ,000 13,140 * Completed Project. ** Fully Cancelled Loan. Annual Report

77 ANNEX 5 PAGE 10 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (8) Arab Republic of Egypt 21 Suez Transformers Station* 278/93 16, ,267 14, Rehabilitation of Phosphatic 284/93 4, ,758 3,758 Fertilizers Plant in Abu Zaabal* 23 Electric Insulations Plant* 286/93 4, ,016 4, Float Glass Plant* 292/94 15, ,616 14, Soda Ash Plant (Second Loan)* 295/94 4, ,918 3, Oyun Moussa Power Station* 309/95 39,000 8,600-30,400 24, Construction of a Special Steel 318/95 15, ,591 14,591 Factory* 28 Social Development Fund (Phase II)* 346/97 21, ,000 12, The Liver Diseases Center 362/98 3, Construction of a Flat Steel Plant* 372/98 17, ,921 16, Upgrading the Egyptian National 399/ , ,931 6,731 Railroads Authority s Locomotives and Workshops* 32 Cairo North Power Generation 407/ ,000 1,707-25,293 10,343 Station* 33 Water Supply for 240 Villages 420/ , ,424 7,470 Deprived of Potable Water - Phase I 34 Natural Gas Pipeline (Al-Arish - 427/ ,000 4,224-12,776 12,776 Aqaba)* 35 Nubaria Power Station - Phase I* 434/ , ,319 12, Nubaria Power Station - Phase II* 438/ , ,896 11, Educational Buildings** 442/ ,000 30, Water Supply for 240 Villages 432/ , ,459 12,444 Deprived of Potable Water (Phase II) 39 Talkha Combined Cycle (750 M.W.) 461/ , ,596 10,780 Power Generation Station* 40 Development of the Waterway 472/ , ,063 2,320 Between Cairo and Alexandria 41 Expansion of West Cairo Power 484/ , ,000 6,930 Generation Station* 42 Development of Hurghada 488/ , ,000 4,300 International Airport* 43 Al-Atf Power Generating Station* 492/ , ,000 6, Expansion of Abu Qir Power 513/ , ,883 4,503 Generating Station 1300 MW* 45 Expansion of Abu Qir Power 525/ , ,883 4,503 Generating Station 1300 MW (Second Loan)* 46 El-Ain El-Sokhna Power Generating 539/ ,000-2,018 50,316 4,200 Station 47 South Gas Pipeline* 530/ , ,000 1, Banha Power Generating Station* 554/ , ,294 1, Development of Hurghada International Airport (Supplementary Loan)* 559/ , ,000 - * Completed Project. ** Fully Cancelled Loan. 76 Annual Report 2017

78 ANNEX 5 PAGE 11 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (8) Arab Republic of Egypt 50 South Helwan Power Generating Station 571/ ,000-14,775 26, Urgent Program to Support Small and 572/ ,000-4,726 30,000 - Medium Private Sector Projects and Enterprises* 52 Modernization of the Signaling 583/ , ,854 - System on the Benha - Zagazig - Ismailia - Port Said Corridor 53 Electrical Interconnection Between 603/ , the Arab Republic of Egypt and the Kingdom of Saudi Arabia 54 Assiut Power Generating Station 604/ ,000-7,991 7,991 - (El-Walidia) 650 MW 55 Al Nouran Sugar (P)* 14P/2014 3, , Cairo West Power Generating Station 615/ ,000-4,920 4, MW 57 Wastewater Facilities in Areas Neighoring 628/ , Al Rahawi Drainage Canal 58 Damanhour Combined Cycle Power 627/ ,000 60, Generating Station (1800 MW)** 59 Water Supply and Development of 634/ , the Agricultural System in the Sinai Peninsula 60 Construction of a 50 Megawatt 638/ , Photovoltaic Power Station in the City of Kom Ombo 61 Development of the Electric Transmission Grid 651/ , Subtotal 1,526, ,851 35, , ,268 (9) Republic of Yemen 1 Mukalla Multipurpose* 1/74 3, ,200 3,200 2 Electric Power I* 7/74 4, ,000 4,000 3 Aden Port Rehabilitation* 12/75 3, ,900 3,900 4 Hodeida Water Supply and Sewerage* 13/75 6, ,273 5,273 5 Taiz-Aden Road* 22A/76 3, ,800 3,800 6 Aden-Taiz Road* 22B/76 6, ,500 6,500 7 Mukalla Multipurpose 27/76 2,600 1, (Supplementary Loan)* 8 Electric Power II* 32/77 9, ,000 9,000 9 Sana a Water Supply* 37/77 5, ,909 4, Hadramaut Power* 48/79 4, ,000 4, Wadi Tuban Agricultural Scheme* 53/80 1, ,875 1, Dhamar Water Supply and Sewerage* 56/80 3, ,993 2, Electric Power III (Dhamar-Taiz 62/81 4, ,700 4,700 Transmission Network)* 14 Aden Water Supply (First Loan)* 63/81 3, ,500 3,500 * Completed Project. ** Fully Cancelled Loan. (P): Private Sector Project. Annual Report

79 ANNEX 5 PAGE 12 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (9) Republic of Yemen 15 Third Pan-Arab Telecommunications* 68/81 1, ,400 1, Third Pan-Arab Telecommunications* 69/81 1, ,300 1, Electric Power IV (Al-Mokha Power 79/82 4, ,958 3,958 Station)* 18 Potable Water to Rural Areas* 87/82 1, ,500 1, Potable Water to Rural Areas* 88/ Nashtoun Fisheries Port* 90/82 3, ,000 3, Fifth Pan-Arab Telecommunications 97/82 1, ,200 1,200 (Earth Stations)* 22 Reconstruction of Flood-Damaged 109/83 1, ,000 1,000 Roads and Bridges* 23 Strengthening of Taiz-Al Mafraq 114/83 2, ,712 1,712 Road* 24 Electric Power III Development 122/83 1, ,500 1,500 (Electrification of Five Towns East of Mukalla)* 25 Fisheries Manpower Centre (FMDC) 124/83 1, ,000 1,000 and the Fisheries Co-operatives (FDC)* 26 Dhamar Water Supply and Sewerage 125/83 3, ,993 2,993 (Supplementary Loan)* 27 Rural Development in the Central 126/83 3, ,764 2,764 Highlands* 28 Seiyoun Regional Water Supply* 127/83 2, ,000 2, Seiyoun Regional Water Supply 131/84 3, ,639 3,639 Development (Phase II)* 30 Geological and Water Mapping of 132/84 1, ,049 1,049 Northern Yemen* 31 Geological and Water Mapping of 133/84 1, Southern Yemen* 32 Development of Health Institute* 138/84 1, Strengthening of Sana a-taiz Road* 147/84 5, ,353 5, Mitigation of Earthquake Risks* 152/ Grain Silos** 157/85 8,000 8, Wadi Hajar Agriculture* 160/85 3, ,500 3, Aden-Abyan Electrification Scheme* 161/85 5, ,663 5, Nisab-Beigan Road* 170/86 4, ,142 4, Electricity Distribution Network (First 173/86 4, ,200 4,200 Loan)* 40 Greater Aden Second Water Supply 174/86 2, ,779 1,779 (Second Loan)* 41 Wadi Jawf Agricultural Development* 177/86 3, ,949 2, Aden Water Supply (Supplementary 188/86 1, Loan)* 43 Laboos Water Supply* 189/87 4, ,942 3, Strengthening Sana a-hodeida Road* 199/87 6, ,800 6,800 * Completed Project. ** Fully Cancelled Loan. 78 Annual Report 2017

80 ANNEX 5 PAGE 13 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (9) Republic of Yemen 45 Lawder-Mukairas Road and Road 204/87 5, ,387 5,387 Maintenance* 46 The FMDC and the FDC 205/87 1, ,463 1,463 (Supplementary Loan)* 47 Zabid-Al Hodeida Road Rehabilitation* 211/88 2, ,500 2, Northern Region Agricultural 215/88 3, ,462 3,086 Development* 49 Yemen Power Link Taiz-Aden* 217/88 8, ,576 7, Yemen Power Link Aden-Taiz* 218/88 10, ,938 9, Al-Mukalla Water Supply* 220/88 2, ,830 2, Integrated Rural Development in the 222/89 3, ,246 2,426 Central Highlands* 53 Agricultural Credit* 230/89 5, ,492 5, Wadi Hadramaut Agricultural 232/89 3,300 3, Development Project (Phase III)** 55 Hojja-Al Khashm Road* 236/90 3, ,430 2, Electricity Distribution Network 251/90 4, ,354 3,355 (Second Loan)* 57 SEA-ME-WE II Submarine Cable 268/92 5,000 1,905-3,095 2,695 Project (Second Loan)* 58 Rehabilitation of Flood-damaged 288/93 2, ,477 1,937 Electricity, Water and Sewerage Facilities in Aden* 59 Sana a Sewerage Treatment Plant* 322/96 8, ,999 5, Social Development Fund* 350/97 6, ,000 3, Wadi Hadramaut Agricultural 357/97 4, ,298 1,389 Development Project (Phase III)* 62 Sanitation Networks in Sana a 383/99 18, ,639 10, Sayhut - Nashtoun Road* 403/ , ,901 10, Sana a International Airport Development 411/ , ,837 9, Social Development Fund - Phase II* 425/ , ,000 5, Grain Silos and Flour Mills at Saleef Port (P)* 2P/2002 3, ,000 3, Ma rib - Sana a Transmission Lines at / , ,584 8,030 k.v. and Upgrading the Electrical Grid* 68 Dhamar - Al-Husseiniya Road* 445/ , ,755 4, Construction of Ma rib Gas-Turbine 447/ , ,531 7,320 Electrical Generating Station* 70 Major Intersections in Sana a City 453/ , ,774 5, Grain Silos and Flour Mills at Saleef 3P/2004 2, ,000 2,000 Port (Supplementary Loan) (P)* 72 Completion of Sanitation Networks 463/ , ,544 3,630 in Sana a 73 Five-Star Hotel in Sana a (P)* 4P/2004 6, ,000 3, Rural Access Roads 467/ , ,539 5, Development of Local Communities (Phase III)* 477/ , ,000 2,835 * Completed Project. ** Fully Cancelled Loan. (P): Private Sector Project. Annual Report

81 ANNEX 5 PAGE 14 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (9) Republic of Yemen 76 Aden Iron Factory in Lahaj 5P/2006 7, ,000 4,180 Governorate (P)* 77 Social Development Fund - Phase III* 480/ , ,000 2, Wastewater Facilities in Seiyoun and Tarim 482/ , , Construction of a Second Ma rib Gas- Turbine Power Generating Station and the Expansion of the Transmission Grid 80 Agricultural and Fisheries Development in the Hadramout Coastal Area 81 Aden Iron Factory in Lahaj Governorate (Supplementary Loan) (P)* 82 Sana a International Airport Development (Phase II) 83 Development of the Coastal Road in Aden Governorate 502/ , , / , P/2007 3, ,000 1, / , / , , Development of Water and Wastewater 526/ , Facilities in Aden Governorate 85 Glass Factory in Sana a Governorate (P) 9P/2008 3, , Taez International Airport Development 533/2008 7, Major Intersections in Sana a City 541/2009 8, , (Phase II) 88 Sugar Refinery in Aden (P) 10P/2009 8, Al Mukalla Iron and Steel Factory (P)* 11P/2009 4, , Rural Roads Development (Phase III) 545/ , , Protection of Sana a City from Floods 550/2010 7, , Social Fund for Development (Phase IV) 560/ , , Major Intersections in Sana a City (Phase III) 94 Dhamar - Al-Husseiniya Road (Supplementary Loan) 95 Construction of a Second Ma rib Gas- Turbine Power Generating Station and Expansion of the Transmission Grid (Supplementary Loan) 96 Construction of a 60 MW Wind Farm in the Al-Mokha Area 562/ , , / , , / , , / , Sanitary Networks in Sana a (Phase IV) 589/ , Reconstruction of Abyan 594/ , Educational Hospital for Aden University 596/ , Rehabilitation and Expansion of 597/ , Sana a - Al Hudaydah Road 101 Expansion of Flour Mills at Saleef 13P/2014 4,000 4, Port (P)** 102 Infrastructure Development in Sana a City 606/ , , Al Ghaydah Central Hopital 612/2014 6, * Completed Project. ** Fully Cancelled Loan. (P): Private Sector Project. 80 Annual Report 2017

82 ANNEX 5 PAGE 15 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (9) Republic of Yemen 104 Rural Roads Development (Phase IV) 613/ , Public Works (Phase IV) 614/ , (10) Republic of Lebanon Subtotal 927,875 24, , ,093 1 Electricity Network* 38/77 6, ,000 6,000 2 Beirut Port* 39/77 5, ,000 5,000 3 Rehabilitation of Electricity 263/91 22,000 3,157-18,843 18,843 Installations* 4 Reconstruction and Shelter 282/93 8, ,000 8,000 Rehabilitation* 5 Rehabilitation of Electricity 304/94 7, ,709 6,353 Installations (Supplementary Loan)* 6 Zahrani Power Station* 305/94 30, ,500 29,880 7 Saida and Sour Water Supply* 317/95 10, ,994 7,429 8 Technical and Vocational Schools* 323/96 15, ,171 12,900 9 Administrative Rehabilitation of Public and Independent Agencies* 10 Rehabilitation of the Infrastructure and Buildings Damaged by the Israeli Aggression* 11 The Lebanese University Project (First Loan)* 12 Syr El-Dania Jbab El-Homr / El-Hermel Road* 13 Beirut Southern Entrances: Khaldeh- Cocodi and Awzaee Roads* 14 Interconnecting the Lebanese and Syrian Electric Grids at 400 kv* 325/96 6, ,995 4, /96 13, ,438 9, /97 23, ,000 17, /97 6, ,827 3, /98 12,000 6,076-5,924 4, /2000 8, ,169 4, Conveyance of Litani Water to 418/ ,000-1,280 30,138 5,270 Southern Lebanon 16 Control Center for the Lebanese 423/2002 7, ,484 2,470 Power Network* 17 Infrastructure Upgrading in Beirut City 430/ , ,438 9, The Lebanese University Project 439/2003 6,000 1,583-4,417 2,445 (Second Loan)* 19 Development of the Road Network 449/ , ,310 11,180 and Main Intersections 20 Administrative Rehabilitation 495/2006 9, ,672 1, Development of Water and Wastewater Facilities in some Areas in Lebanon 22 Rehabilitation of Infrastructure Damaged by the Aggression 23 Rehabilitation of the Private Sector Enterprises Damaged by the Israeli Aggression** 496/ ,000-1,836 13,161 3, / ,000-1,127 17, / ,000 25, * Completed Project. ** Fully Cancelled Loan. Annual Report

83 ANNEX 5 PAGE 16 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (10) Republic of Lebanon 24 Rehabilitation of Electric Power 506/ , Installations Damaged by the Israeli Aggression 25 Syr El-Dania Jbab El-Homr/ El- 527/2008 6, , Hermel Road (Second Loan) 26 Housing Project* 585/ ,000-34,000 34, Completion of Wastewater Facilities 600/ , in Lebanon 28 Conveyance of Litani Water to 621/ ,000-4,407 4,407 - Southern Lebanon for Irrigation and Drinking Purposes (Elevation 800 Meters) (Supplementary Loan) Subtotal 489,000 36,353 44, , ,773 (11) Kingdom of Morocco 1 Telecommunications* 10B/75 3, ,198 2,198 2 Beni Amir Irrigation* 20/76 7,000 1,254-5,746 5,746 3 Agricultural Credit (First Loan)* 33/77 9, ,000 9,000 4 Oujda Cement* 41/77 9, ,000 9,000 5 Gharb Irrigation* 54/80 5, ,000 5,000 6 Al-Houz Al-Awsat (First Loan)* 74/81 7, ,500 7,500 7 Al-Houz Al-Awsat (Second Loan)* 76/82 7, ,500 7,500 8 Potable Water to Rural Areas* 85/82 1,300 1, Fifth Pan-Arab Telecommunications 103/82 1, ,000 1,000 (Earth Stations)* 10 Agricultural Development in Loukkos 121/83 7, ,500 7,500 Valley (First Loan)* 11 Agricultural Credit (Second Loan)* 134/84 8, ,000 8, Mitigation of Earthquake Risks* 153/ Ait Ayoub Dam for Irrigation and 168/85 15,000 4,787-10,213 10,213 Electricity* 14 Lower Tassaout Irrigation* 176/86 5, ,000 5, Aoulouz Dam and Agricultural 191/87 15,000 2,903-12,097 12,097 Development in Wadi Souss* 16 Al-Mana Barrage and Irrigation of 212/88 17,000 2,863-14,137 14,137 Lands in Al-Gharb Plain* 17 Ismir Dam and Potable Water for 223/89 4, ,100 3,100 Tatwan Area* 18 Agricultural Credit (Third Loan)* 231/89 12, ,000 12, Maja ra Dam* 237/90 50, ,458 49, Rehabilitation of Flood-Damaged 249/90 2, ,467 2,467 Infrastructure* 21 Upper Dokala Region Irrigation 264/91 30,000 3,983-26,017 26,017 (Phase I)* 22 Rabat-Larache Motorway* 267/92 18, ,000 18, Agricultural Credit (Fourth Loan)* 281/93 18,000 5,251-12,749 12,749 * Completed Project. 82 Annual Report 2017

84 ANNEX 5 PAGE 17 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (11) Kingdom of Morocco 24 Seedi Al-Shahid Dam* 290/93 18,500 2,697-15,803 15, Strengthening Internal Power Grid for 299/94 18,500 4,628-13,872 13,872 the Morocco - Spain Interconnection* 26 Loukkos Basin Agricultural 300/94 3, ,978 2,978 Development (Second Loan)* 27 Al-Gharb Plain Irrigation (Phase II)* 303/94 20, ,463 18, Rabat-Fes Motorway* 306/95 23,000 3,123-19,877 19, Maja ra Dam (Second Loan)* 315/95 17,000 2,990-14,010 12, Combatting the Effects of the Drought* 316/95 10, ,000 10, Potable Water for Meknes City** 330/96 7,000 7, Agadir and Tantan Fisheries Port* 335/96 13,000 1,095-11,905 10, Morocco-Spain Power Interconnection 337/96 7,000 3,428-3,572 3,216 (Supplementary Loan)* 34 Dchar El Oued and Ait Massoud 344/97 15,000 5,886-9,114 7,494 Dams for Electricity, Irrigation and Drinking Water* 35 Dchar El Oued and Ait Massoud 345/97 15,000 8,796-6,204 4,890 Dams: Financing the Two Hydroelectric Stations* 36 Casablanca-Settat Motorway 364/98 16,000 4,031-11,969 8,589 (Second Section)* 37 Development of Social Housing in 378/98 18,000 3,634-14,366 14,366 Agadir City* 38 Ait Hamou Dam and Supplying 380/99 17,000 8,966-8,034 6,036 Greater Agadir City with Water* 39 Mohammed V Airport Development* 389/99 10, ,377 4, Afourer Pumped Storage Hydro- 397/ ,000 2,736-22,264 15,064 Power Plant* 41 Casablanca - El-Jadida Motorway* 416/ ,000 3,099-11,901 11, Raising of Sidi Mohammed Bin 421/ ,000 9,851-8,149 8,149 Abdullah Dam and Construction of Boukhamis Dam* 43 Rural Electrification* 446/ , ,703 9, Tetouan - Fenidiq Motorway* 451/ ,000 5,386-8,614 8, Settat - Marrakech Motorway (Phase I)* 452/ ,000 15,167-14,833 14, Tangier Mediterranean Harbour - 460/ ,000 5,378-29,622 29,622 Northern Highway Motorway* 47 Werkan Dam to Supply Marrakech 470/2004 7,000 1,044-5,956 2,764 with Potable Water* 48 Tangier Mediterranean Harbour - Northern 473/ ,000 2,921-17,079 17,079 Highway Motorway (Section Three)* 49 Marrakech - Agadir Motorway* 485/ , ,738 28, Wadi Al-Raml Dam to Supply Tangier Mediterranean Port with Water* 51 Marrakech - Agadir Motorway (Second Loan)* 486/2005 9, ,000 3, / , ,000 31,000 * Completed Project. ** Fully Cancelled Loan. Annual Report

85 ANNEX 5 PAGE 18 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (11) Kingdom of Morocco 52 Generalization and Integration of Information 498/ ,000 10,228-4,772 4,772 Technology in Public School Education* 53 Rural Roads 503/ , ,439 4, Fes - Oujda Motorway* 512/ , ,941 9, Water Supply for the Provinces of 514/ , ,999 3,645 Taounate, Chefchaouen, Sidi Kacem and Tanger Med Port 56 Wadi Martil Dam* 517/ , ,292 3, Fes - Oujda Motorway (Taza - Oujda Section)* 534/ ,000 5,248-21,752 3, Expansion of Casablanca - Rabat Motorway* 538/ , ,000 2, Zerrar Dam* 540/ , ,061 1, Water Supply of Tangier & Tantan Regions* 546/ , ,826 2, Berrechid - Beni Mellal Motorway* 549/ ,000 15,474-39,526 4, Dar Khrofa Dam* 556/ , , Tangier Med II Port* 558/ , ,000 2, High-Speed Train Tangier - Casablanca 568/ ,000-3,678 24, El Jadida - Safi Motorway 579/ , , Water Supply of Tetouan Area 584/2012 7,000-2,772 4, Tangier Med II Port (Phase II) 602/ , , Irrigation of the Chtouka AÏt Baha 611/ , Region with Desalinated Water 69 El Jadida - Safi Motorway 616/ , ,871 - (Supplementary Loan) 70 Water Supply to Chefchaouen and 617/ , Neighboring Villages 71 Nador West Med Port 622/ ,000-11,622 11, High-Speed Train Tangier - Casablanca (Second Loan) 637/ ,000-18,479 18,479 - Subtotal 1,352, ,065 38, , ,422 (12) Kingdom of Bahrain 1 Bahrain Power* 44/77 5, ,000 5,000 2 Sixth Pan-Arab Telecommunications, Submarine Gulf Cable (Bahrain-Qatar-UAE)* 3 Seventh Pan-Arab Telecommunications, Submarine Gulf Cable (Bahrain-Kuwait)** 113/83 3, ,000 3, /84 3,000 3, Roads Development* 201/87 5,500 5, Roads Development (Second Loan)* 258/91 11, ,106 10,106 6 Development of Suleimaniyah 259/91 21,000 1,002-19,998 19,998 Medical Center (First Loan)* 7 Development of Suleimaniyah 308/95 11,000 3,348-7,652 7,652 Medical Center (Second Loan)* 8 The Housing Project (First Loan)* 334/96 15, ,420 12,880 9 Transfer and Distribution of Water from Al-Hidd Desalination and Power Station* 349/97 21,000 1,450-19,550 16,274 * Completed Project. ** Fully Cancelled Loan. 84 Annual Report 2017

86 ANNEX 5 PAGE 19 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (12) Kingdom of Bahrain 10 Interconnection of Al-Hidd Production 360/97 10,000 1,112-8,888 7,490 Facility to the Electric Grid* 11 Production and Utilization of Treated 367/98 15,000 3,842-11,158 9,358 Sewerage Effluent* 12 Hidd Industrial Area* 370/98 25, ,878 15, The Housing Project (Second Loan)* 381/99 20, ,000 15, Bahrain Specialized Hospital (P)* 1P/2001 3, ,000 3, Expansion of the Electric Generation 417/ , ,956 13,680 and Transmission Systems* 16 Khalifa Bin Salman Port* 465/ ,000 5,616-9,384 4, Upgrading the Electrical 478/ ,000 7,000-7,000 3,090 Transmission Network* 18 Replacement of Sitra Causeway Bridge 504/ , , Upgrading 220 kv and 66 kv 544/ , ,290 4,920 Electrical Transmission Network* 20 Development of Water Supply Network 575/ ,000-4,750 21,980 - Subtotal 301,500 33,269 5, , ,867 (13) Somali Democratic Republic 1 Inter-Riverine Settlements* (1) 23/76 6,400 1,250-4, Hargeisa-Rorama Road* 35/77 2, , Goluen-Gelib Road (First Loan)* 36/77 5, , Trypanosomiasis and Tsetse Control 52/79 1, ,258 - (Phase I)* 5 Third Pan-Arab Telecommunications 66/81 1, ,434-6 Mogadishu Water Supply II* 73/81 5, ,015-7 Goluen-Gelib Road (Supplementary Loan)* 77/82 3, ,499-8 Mogadishu Electricity 80/82 2, ,763-9 Fifth Pan-Arab Telecommunications 99/82 1, (Earth Stations) 10 Afgoi-Baidoa Road* 112/83 5, Expansion of Gezira Power Station 137/84 4, Fisheries Development in the North** 143/84 1,500 1, Subtotal 40,700 2,751-23, (14) Islamic Republic of Mauritania 1 Nouadhibou Power Station* 21/76 5, ,200 5,200 2 Nouakchott-Kiffa Motorway (First Loan)* 25/76 7, ,000 7,000 3 Guelbs Iron Ore Production* 49/79 10, ,999 9,999 4 Boghi-Kehidi Road Maintenance* 75/81 1, ,500 1,500 5 Nouadhibou Power Station 81/ (Supplementary Loan)* 6 Potable Water to the Rural Areas* 86/ Fifth Pan-Arab Telecommunications (Earth Stations)* 104/82 1, ,123 1,123 * Completed Project. ** Fully Cancelled Loan. (P): Private Sector Project. (1) The amount of the loan was reduced from KD 6.40 million to KD 5.15 million due to the change in the description of the project. Annual Report

87 ANNEX 5 PAGE 20 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (14) Islamic Republic of Mauritania 8 Nouakchott Power (First Loan)* 105/82 3, ,000 3,000 9 Nouakchott Power (Second Loan)* 106/83 2, ,300 2, Telecommunications in Nouadhibou* 119/83 2, ,100 2, Development Credit (First Loan)* 135/84 2, ,000 2, Educational, Health and Veterinary Services* 139/84 4, ,498 3, Oases Development (Phase I)* 163/85 3, ,400 2, Artisanal Fisheries Development in 178/86 3, ,775 1,515 Nouadhibou* 15 Nouakchott Telephone/Telex Exchanges* 186/86 2, ,800 2, Guelbs Iron Ore Production (Second Loan)* 202/87 1, ,300 1, Development Credit (Second Loan)* 203/87 1, Wilayas Electricity Supply* 216/88 7, ,500 2, Boghi-Kehidi Road (Second Loan)* 219/88 3, ,088 1, Domestic Satellite Network* 227/89 5, ,989 1, Mhaoudat Iron Ore Production* 269/92 6, ,000 6, Nouakchott-Akjojot-Atar Road* 289/93 6, ,472 1, Oases Development (Phase II)* 297/94 2, ,400 2, Nouadhibou Water Supply* 313/95 10, ,925 8, Expansion of the Nouakchott Power 336/96 4, ,537 4,117 Generating Station* 26 Potable Water for the Interior Cities* 343/97 3, ,500 2, Alag-Maqtaa Lehjar Road * 347/97 3,500 1,460-2,040 2, Transmission of Electrical Energy 352/97 8, ,371 5,003 from Manantali Dam to Mauritania* 29 Rehabilitation and Construction of 33 Small 375/98 3, ,327 2,156 Dams in the Area Adjacent to Achram* 30 Connecting Boghe to the Manantali 408/2001 4, ,980 1,957 Electrical Grid* 31 Debt Reduction* 414/ , ,000 2, Nouakchott - Nouadhibou Road * 419/ , ,565 7, Nouakchott Water Supply from the 454/ , ,998 10,010 Senegal River* 34 Expansion of Nouadhibou Power 468/2004 7, ,885 2,565 Generation Station 35 Nouadhibou Water Distribution Network* 475/2005 4, ,748 1, Power Generation Stations for 481/2005 2,000 1, Interior Cities* 37 Atar - Tidjikja Road 509/ , ,546 2, Developing Water and Road Services 510/ , ,000 2,345 in Rural Areas* 39 Nouakchott Water Supply from the 511/ , ,200 6,020 Senegal River (Supplementary Loan)* 40 Lease Financing of Small and Medium- Size Projects and Enterprises (P)* 6P/2007 1, ,000 1,000 * Completed Project. (P): Private Sector Project. 86 Annual Report 2017

88 ANNEX 5 PAGE 21 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (14) Islamic Republic of Mauritania 41 Drinking Water and Electricity Emergency 523/ , ,336 3,040 Project for the City of Nouakchott* 42 Rehabilitation of Al-Amal Road 531/ , ,984 1,560 (Sections II and IV) 43 Drinking Water and Electricity 535/ , ,379 1,080 Emergency Project for the City of Nouakchott (Supplementary Loan)* 44 Electricity Emergency Program for the 547/ , ,757 1,040 City of Nouakchott (Supplementary Loan)* 45 Water Distribution Network in Nouakchott 555/ , , Upgrade of the Power Generation and 569/ ,000-2,122 25,988 - Transmission Systems in Nouakchott* 47 Supply of Drinking Water to the 570/2011 8,000-1,321 5,156 - Region of Aftout Elcharghi* 48 Water Supply of Eastern Cities and 580/ ,000-2,584 14,249 - Villages from Dhar Basin 49 Development of Power Generating 588/2012 3, ,846 - Stations for Interior Cities 50 Construction of a 30 MW Wind Farm in Nouakchott* 590/ ,000-2,071 13, Néma - Mali Border Road (Section III) 593/2013 9, , New Nouakchott International Airport 595/2013 9, , Drinking Water and Development of 601/ ,000-4,849 12,338 - Oases in Rural Areas 54 Construction of a Solar Power Station 610/ ,000-12,980 15,422 - in Nouakchott and the Modernization of the Electrical System 55 Development of Electricity Transmission 629/ ,000-2,638 2,641 - and Distribution Networks 56 Reinforcing the Electrical Interconnection 625/ , between Mauritania and Senegal (Nouakchott - Tobien Line) 57 Construction of a Wind Farm in Boulenoir 632/ , Rehabilitation of the Guelb (1) Plant 641/ , Water Supply to the Cities of Laayoune 644/ , and Djiguenni, and Neighboring Villages 60 Electrical Interconnection Between 645/ , Nouakchott and Zouerate on 225 kv Subtotal 647,700 5,809 32, , ,480 (15) Sultanate of Oman 1 Gas Utilization* 29/76 6,000 1,517-4,483 4,483 2 Murayrat-Sohar Gas* 59/80 3, ,000 3,000 3 Telecommunications* 120/83 3, ,000 3,000 4 Sohar-Buraimi Power Station* 129/84 3, ,973 2,973 5 Fisheries Development* 162/85 3,000 1,706-1,294 1,294 6 Natural Gas Utilization (Phase IV)* 187/86 3,000 1,231-1,769 1,769 7 Water Desalination and Power for the Capital Area* 196/87 6,000 1,377-4,623 4,623 * Completed Project. Annual Report

89 ANNEX 5 PAGE 22 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (15) Sultanate of Oman 8 Natural Gas Utilization (Stage 2 of Phase IV)* 257/91 7, ,797 6,797 9 Mina Qaboos Port Development* 266/92 6,000 1,860-4,140 4, Ghubrah Power Generation and 294/94 9,500 1,605-7,895 7,895 Water Desalination Station* 11 Industrial Estates in Rusayl and Nizwa* 302/94 6,000 1,249-4,751 4, Ghubrah Power Generation and Water 310/95 9, ,179 8,179 Desalination Station (Phase V)* 13 Salalah Port Development* 354/97 15, ,000 15, Meserrat Water Conveyance System* 388/99 11, ,603 10, Rimal Ash-Sharqiyah Water 401/2000 9,500 2,479-7,021 7,021 Distribution System* 16 Khassab Port Development Project* 431/2002 4, ,805 3, Nizwa-Thamrit Road Rehabilitation 441/2003 6, ,222 5,222 (Phase II)* 18 Expansion of Salalah Port (Phase II)* 466/ ,000 8,667-13,333 13, Al-Ashkhara - Al-Khuwaymah - 479/ ,000 4,105-5,895 5,895 Shanna Road* 20 Muscat Southern Expressway* 487/ ,000 30,921-9,079 9, Dualization of Al-Amerat - Quriyat Road* 489/ ,000 17,175-2,825 2, Al Duqm Port** 501/ ,000 35, Reconstruction of Basic Infrastructure and 519/ ,000 52,700-7,300 7,300 Facilities Damaged by Cyclone Gonu* 24 Dualization of Thumrait - Salalah Road* 507/ , ,000 4, Infrastructure Facilities for Sumail 576/ ,000-2,129 7,027 - Industrial Estate 26 Housing Program* 605/ ,000-6,000 40, Development and Exparsion of Main Roads 636/ ,000-24,950 24, Transmission Lines of Desalinated Water 639/ ,000-3,994 3,994 - from Al Ghubrah to Al Seeb and from Barka to Ad Dakhiliya Governorate 29 Development of Part of Road 32 in 646/ , the Special Economic Zone of Duqm 30 Reinforcement of Desalinated Water Transmission Lines in Ash Sharqiyah Governorates 649/ , Subtotal 593, ,513 37, , ,307 (16) Palestine 1 Wadi Far a Irrigation* 158/85 3,000 2, Widening and Strengthening of Salah 340/97 5, ,831 3,584 Eldin Road* 3 Development of Health Services* 341/97 3, ,999 1,998 4 Rehabilitation of the Education 342/97 3, ,000 2,079 Services* 5 The Rural Development Project* 376/98 3, ,700 1,548 Subtotal 17,000 2,624-14,376 10,055 * Completed Project. ** Fully Cancelled Loan. 88 Annual Report 2017

90 ANNEX 5 PAGE 23 OF 23 Loans Extended to Beneficiary Member States (KD 000) No. Country / Project Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments (17) Republic of Djibouti 1 Third Pan-Arab Telecommunications* 67/81 1, ,000 1,000 2 Djibouti Port Development* 89/82 1, ,500 1,500 3 Fifth Pan-Arab Telecommunications 98/82 1, (Earth Stations)* 4 Expansion of Boulaos Power Station 116/83 3, ,509 2,509 - Phase I* 5 Animal Wealth Development* 130/84 1, ,890 1,890 6 Southwest Asia-Middle East-Western 159/85 1, ,898 1,898 Europe (SEA-ME-WE) Submarine Cable (First Loan)* 7 Development Credit** 171/ Telecommunications Development* 197/ SEA-ME-WE II Submarine Cable* 262/91 1, ,500 1, Modernization of Boulaos Power 373/98 3, ,999 1,923 Station - Phase II* 11 Modernization of the Port of Djibouti 390/99 3,000 3, (Phase IV)** 12 Social Housing* 395/2000 5, ,000 2, Development of the Education Sector 412/2001 4, ,717 1, Modernization of Boulaos Power 436/2002 3, ,917 1,355 Station - Phase III* 15 Social Housing (Phase II)* 456/2003 6, ,000 1, Boulaos Power Generation Station 471/2004 4, ,979 1,263 Project - (Fourth Phase)* 17 Construction of Djibouti University 497/2006 5, ,557 1, Rehabilitation of Drinking Water 532/2008 7, , Facilities in Djibouti City 19 Upgrade of the Power Generation 551/2010 9, and Transmission Systems in the City of Djibouti 20 Port of Tadjourah 577/ , , Rehabilitation of the Distribution 598/ ,000-2,498 9,595 - Networks of Drinking Water in Djibouti City* 22 Social Housing - Phase II 607/2014 1, (Supplementary Loan) 23 Social Housing in the City of Djibouti 618/2015 6, Port of Tadjourah (Supplementary 619/2015 3, Loan) 25 Completion of the Rehabilitation and 635/ , Reinforcement of the Drinking Water Distribution Network in Djibouti Subtotal 112,000 4,955 3,588 68,071 23,514 Grand Total 9,727, , ,538 6,283,289 3,444,943 * Completed Project. ** Fully Cancelled Loan. Annual Report

91 ANNEX 6 PAGE 1 OF 3 Loans Extended to Finance Inter-Arab Projects (KD 000) No. Project / Country Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments 1 First Pan-ArabTelecommunications: Algeria* 10A/ Morocco* 10B/75 3, ,198 2,198 2 Aden-Taiz Road: Yemen* 22A/76 3, ,800 3,800 Yemen* 22B/76 6, ,500 6,500 3 Navigation Inspection Unit: Algeria* 55/80 2, ,930 1,930 4 Second Pan-Arab Telecommunications: Jordan* 58/80 5,000 4, Syria* 60/80 2, ,782 1,782 5 Third Pan-Arab Telecommunications: Somalia* 66/81 1, ,434 - Djibouti* 67/81 1, ,000 1,000 Yemen* 68/81 1, ,400 1,400 Yemen* 69/81 1, ,300 1,300 6 Fourth Pan-Arab Telecommunications: Algeria* 71/81 4, ,347 4,347 Tunisia* 72/81 3, ,700 3,700 7 Inter-Arab White Cement Industry (Jordan - Syria): Jordan* 78/82 5, ,000 5,000 8 Potable Water to Rural Areas: Jordan* 82/ Tunisia* 83/ Sudan* 84/82 1, ,727 1,727 Morocco* 85/82 1,300 1, Mauritania* 86/ Yemen* 87/82 1, ,500 1,500 Yemen* 88/ Tartous-Latakia Motorway: Syria* 93/82 6, ,000 6, Fifth Pan-Arab Telecommunications Earth Stations: Syria* 95/82 1, ,000 1,000 Jordan* 96/82 1, ,000 1,000 Yemen* 97/82 1, ,200 1,200 * Completed Project. 90 Annual Report 2017

92 ANNEX 6 PAGE 2 OF 3 Loans Extended to Finance Inter-Arab Projects (KD 000) No. Project / Country Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments Djibouti* 98/82 1, Somalia 99/82 1, Sudan* 100/82 1, ,077 1,077 Tunisia* 101/82 1, Algeria* 102/82 1, ,000 1,000 Morocco* 103/82 1, ,000 1,000 Mauritania* 104/82 1, ,123 1,123 Syria* 172/86 1, ,000 1, Sixth Pan-Arab Telecommunications, Submarine Gulf Cable (Bahrain - Qatar - UAE): Bahrain* 113/83 3, ,000 3, Zarqa - Almafraq - Syrian Border Road: Jordan* 118/83 4, ,000 4, Damascus - Sanamein - Jordan Border Road: Syria* 128/83 9, ,000 9, Geological and Water Mapping of Yemen: Yemen* 132/84 1, ,049 1,049 Yemen* 133/84 1, Fifth Pan-Arab Telecommunications Arabsat Earth Station: Iraq 141/84 5, , Seventh Pan-Arab Telecommunications Submarine Gulf Cable (Bahrain - Kuwait): Bahrain** 142/84 3,000 3, Mitigation of Earthquake Risks: Algeria* 117/83 4,700 3, Jordan* 148/ Tunisia* 149/ Iraq* 150/ Syria* 151/ Yemen* 152/ Morocco* 153/ Algeria (Second Loan) 332/96 3,500 1,887-1,613 1, Pesticides Arab Joint Venture (Syria - Jordan): Syria** 154/84 1,900 1, Ruwaishid Pilot Scheme in Hammad Basin (Inter-Arab): Jordan* 184/86 1, ,496 1,496 * Completed Project. ** Fully Cancelled Loan. Annual Report

93 ANNEX 6 PAGE 3 OF 3 Loans Extended to Finance Inter-Arab Projects (KD 000) No. Project / Country Loan No. Amount of Loan Cancelled Loans and Balances During 2017 Repayments 20 Tenf Pilot Scheme in Hammad Basin (Inter-Arab): Syria* 185/86 1, ,700 1, Hama - Saraqeb Road and Ain Eissa-Qintari Road: Syria* 214/88 8, ,969 7, Yemen Power Link: Yemen* 217/88 8, ,576 7,652 Yemen* 218/88 10, ,938 9, Jordan - Egypt Power Link: Jordan* 233/89 10, ,500 10,500 Egypt* 234/89 34,100 3,339-30,761 30, Tunisia - Libya Power Link: Tunisia* 243/90 17, ,800 14,040 Libya* 244/90 2, , Strengthening Local Transmission Network within Morocco - Spain Electric Power Link: Morocco* 299/94 18,500 4,628-13,872 13,872 Morocco (Supplementary Loan)* 337/96 7,000 3,428-3,572 3, Interconnection of Jordan - Syria Electric Power Grids: Jordan* 311/95 19, ,500 18,445 Syria 312/95 30, ,223 17, Interconnection of Syria and Turkey Electric Power Grids: Syria* 314/95 26,000 2,936-23,064 10, Interconnection of the Libyan and Egyptian Power Grids: Libya* 326/96 12,000 2,590-9,410 6, Interconnection of the Lebanese and Syrian Electric Grids at 400 kv: Lebanon 400/2000 8, ,142 4, Natural Gas Pipeline (Al-Arish - Aqaba): Egypt* 427/ ,000 4,224-12,776 12, Arab Gas Pipeline Project - Third stage (Aleppo - Kalas Section): Syria 529/ , , Electrical Interconnection Between the Arab Republic of Egypt and the Kingdom of Saudi Arabia: Egypt 603/ , Total 394,125 41, , ,080 * Completed Project. 92 Annual Report 2017

94 ANNEX 7 Grants Committed and Disbursed (KD 000) Beneficiary No. of Grants Amount Approved Cancelled Grants and Balances Net Amount Approved Percent of Total (%) Total During 2017 Until Balance of Grants A. National Grants 1 Hashemite Kingdom of Jordan 52 12, , ,065 11,267 1,593 2 Republic of Tunisia 16 5, , ,224 1,496 3 Algerian Democratic and People s Republic 11 2, , , Republic of Sudan 25 13, , , Republic of Iraq Kingdom of Saudi Arabia 9 1, , Syrian Arab Republic 16 3,820 1,752 2, ,068-8 State of Libya Arab Republic of Egypt 53 17, , ,028 1, Republic of Yemen 51 17, , ,643 6, State of Kuwait 33 3, , , Republic of Lebanon 45 20,191 2,588 17, ,968 6, Kingdom of Morocco 26 5, , , United Arab Emirates Kingdom of Bahrain 14 2, , , State of Qatar Somali Democratic Republic 4 1, , , Islamic Republic of Mauritania 34 6, , , Sultanate of Oman 15 4, , , Palestine ,545 1,077 27, , Republic of Djibouti 7 1, , , Union of the Comoros 2 3,100-3, ,368 1,732 Total National Grants ,123 10, , , ,759 23,842 B. Inter-Arab Grants ,124 5,897 62, ,017 58,298 3,929 Total National and Inter-Arab Grants ,247 16, , , ,057 27,771 C. D. Urgent Program to Support the Palestinian People* Program to support the Resistance of Jerusalem** 134, ,989-9, ,071 13,918 29,651-29,651-5,059 17,358 12,293 Grand Total 386,887 16, ,468-20, ,486 53,982 *Support decided by the Arab Fund s Board of Governors to the Palestinian people, over the period ** Support decided by the Arab Fund s Board of Governors to the resistance of Jerusalem, in 2010 and Annual Report

95 ANNEX 8 Co-financing Activities of the Arab Fund Contributors Total Amount (KD Million) Percentage (%) 1. (A) National and Regional Development Institutions Arab Fund for Economic and Social Development 4, Kuwait Fund for Arab Economic Development 1, Abu Dhabi Fund for Development Saudi Fund for Development Islamic Development Bank OPEC Fund for International Development Iraqi Fund for External Development 5.0 * Libyan Foreign Bank 3.0 * Subtotal 7, (B) Other Arab Sources International Financial Institutions World Bank International Fund for Agricultural Development (IFAD) African Development Bank Subtotal 1, Foreign Governments and their Development Institutions 3, Grand Total 13, * Less than 0.1%. 94 Annual Report 2017

96