Kuwait PDF Print E-mail

Background Information

The Kuwait cooperation for development is coordinated mainly by the Kuwait Fund for Arab Economic Development established in 1961 to assist economic development of Arab countries. In July 1974, the law of the Fund was amended, increasing the Fund’s capital and extending the scope of operations to include, in addition to Arab countries, other developing countries. In 1981, the law of the Fund was further amended to increase again the Fund’s in response to the increasing requests for funding projects and the rise in the cost of development operations, in general. During the last decades, lending at concessional terms to finance projects, accorded high priority by recipient countries, remained the Fund’s main activity. The development operations of the Fund covered projects in various sectors, including agriculture, communication, energy, industry, transport, water and sewerage, in addition to supporting small and medium private sector projects financed by National Development Banks and various projects of Social Development Funds. In 2000, the Fund enlarged its sectoral coverage to include health and education. Technical cooperation of Kuwait Fund are financed either through loans or grants. In the period 2005/2006 the share of Arab countries of the total commitments reached 53.9%, African countries 20%, Asian and European countries 26.1%. As to the sectoral distribution of these loans, the Transport sector ranked first with 55.8%, followed by the Energy sector with 28.6%, then the Social sector with 12.6%, and the Agriculture sector with 3.1%.  


Examples of Key Projects of Kuwait

Kuwait Assistance
The Government of the State of Kuwait provides assistance in the form of grants to finance urgently needed projects including schools, hospitals, housing facilities and other social amenities especially in post-conflict situations or where countries faced consequences of natural disasters such as earthquakes, floods, and extreme drought. The grants are normally administered and supervised by the Fund. All projects financed from the proceeds of government grants are governed by the procedures applicable to Kuwait Fund supported projects, with due consideration to the nature and objectives of the former type of projects. The beneficiaries included 10 Arab countries, 9 African countries, and one Central Asian country.
Arab Aid Kuwait Fund is a key supporter of the Arab Aid established in 1975 under the framework of the Coordination Group, a collective body of three bilateral and five multilateral agencies set up to provide greater cohesion and effectiveness in the delivery of Arab aid for global development. Its members are the Abu Dhabi Fund for Development, the Arab Bank for Economic Development in Africa (BADEA), the Arab Fund for Economic and Social Development, the Arab Gulf Program for United Nations Development Organizations (AGFUND), the Islamic Development Bank, the Kuwait Fund for Arab Economic Development, the OPEC Fund for International Development and the Saudi Fund for Development.
Water and Sanitation Sectors
Water and Sanitation Sectors
Kuwait Fund has a exemplar project on the field of water and sanitation aiming to improve the people's standard of living through developing the water sanitation sectors in developing countries. The main guidelines of this strategy are the Fund's collaboration to the countries development policies of these two sectors as well as protection of the environment. Major Activities of the Kuwait Fund in Developing the Water and Sanitation Sectors includes 1. Extend technical assistances to conduct relevant Master Plans and Feasibility Studies. 2. Participate in financing urban and rural water project, water production and distribution schemes in developing countries. 3. Encourage adoption of state-of-the-art technologies for water treatment, water management and treated effluent reuse. 4. Foster the capacity of NGOs and government institutions and participate in supporting world agencies concerned with water and environment. Examples of projects are the  water supply and sanitation in the Federation of Bosnia and Herzegovina, water supply for the city of Asmara, and waste water management system in Eritrea, renovation of water supply system and storm water drainage in Pyongyang City  in North Korea. Other benefited countries include Turkey, Egypt, and Mauritania among others.
Debt Relief Kuwait Fund supported the HIPC initiative, and has been providing debt relief to countries in accordance with the conditions for eligibility. Until 2006, the Fund had provided debt relief through rescheduling of outstanding loans to 15 countries namely Benin, Burkina Faso, Cameroon, Ghana, Guinea, Guinea Bissau, Madagascar, Mali, Mauritania, Mozambique, Niger, Rwanda, Senegal, Tanzania and Uganda
Kuwait Fund Loans
Following the amendment of the law of the Fund in July 1974, the Fund’s operations grew rapidly over a relatively short period (from 1974/75 to 1981/82), with the number of loan recipients rising from 11 countries to 54 countries, the number of loans rising from 47 to 217, and the total loan commitments increasing from about US$ 529 million to US$ 3,288 million. In 2006 about 18 in West Africa Central were benefited, 21 South and East African Countries, 17 Arab Countries, 18 East, South Asian and the Pacific Countries, 16 Central Asian and European Countries, Latin American and the Caribbean Countries.
Infrastructure and Energy Kuwait provides loans for a large number of projects in infrastructure. A recent example is the construction of the Wukro-Adigrate-Zalambessa Road Upgrading Project in Ethiopia. A project for extension of the National Power Grid for Afar region also in Ethiopia. With the Pakistan Water and Power Authority the Kuwait Fund is initiating a project to construct the Goldel Gol Hydropower in this Asian country.


Source: Ministry of Foreign Affairs of Kuwait

Homepages: http://www.mofa.gov.kw and  http://www.kuwait-fund.org