OFID signs loan agreements with Djibouti, Niger and Panama

OFID Director-General Mr Suleiman J. Al-Herbish (right) and HE Mr Amadou Boubacar Cisse sign loan agreement for an emergency food security and rural development program.

February 18 - 21, 2014. OFID Director-General, Mr Suleiman J Al-Herbish, has signed three public sector loan agreements with partner countries Djibouti, Niger and Panama. The agreements were co-signed by HE Fahmi Ahmed El Hag, Advisor to the President of Djibouti in charge of Investment Promotion; HE Mr Amadou Boubacar Cisse, Minister of Planning, Territorial Planning and Community Development of Niger; and, HE Mr Ricardo Vallarino Perez, Ambassador of Panama to Austria.

Details of the projects are as follows:

Djibouti. Tadjoura Port Project. US$7m. The project will construct a new port in Tadjoura in the northern region, one of Djibouti’s poorest, in response to the fast and continuing traffic to and from the port. The increased level of trade and overall economic activity will boost the development of the region, and in turn benefit around 200,000 people.

OFID and Djibouti have been partners in development since 1978, when OFID provided balance of payments support. Subsequent public sector loans helped support the country’s energy, education, transportation, multi-sectoral, health and urban development sectors. Under OFID’s private sector facility, OFID extended funding for the Doraleh Container Port project.

The country has also received a number of grants, including emergency assistance and support to HIV/AIDS programs, as well as regional and multi-regional grants in the areas of agriculture, education, energy and health.

Niger. Emergency Food Security and Rural Development Program (additional loan). US$6m. The program will focus on three administrative regions of Maradi, Tahoua and Tillaberi, predominantly rural areas that account for over one-half of Niger’s total population. The occurrence of drought and floods has worsened food insecurity and poverty among the regions’ farmers and pastoral herders. Around 850,000 people are expected to benefit from the program.

OFID has supported Niger’s socio-economic development since 1976, having provided balance of payments support and public sector loans, totaling over US$161m, to help strengthen the country’s transportation, agriculture, education, energy, water supply and sanitation, urban development and health sectors.

Grant assistance has also been extended, including emergency aid and support of regional programs in the areas of energy, health, water supply and sanitation and agriculture.

Panama. Panama Bay and City Sanitation Project (complementary works for Phase I). US$52m. This project aims at improving basic sanitary conditions in the Panama City and Bay Region, thereby helping improve the general health and economic conditions of approximately 1.2 million people. OFID also co-financed Phase I with a US$20m loan.

In addition to these two loans, OFID co-funded a rural development project in 2008. The country has also benefited from regional grants that supported HIV/AIDS programs, as well as a grant to help strengthen Panama's energy sector.