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Istisna'a and Istisna'a Agency Agreement Signing Between the Sultanate Government and IDB.

Istisna'a and Istisna'a Agency Agreement Signing Between the Sultanate Government and IDB

Maputo, June 11 (ONA) ---- The Sultanate and the Islamic Development Bank (IDB) signed today Istisna'a and Istisna'a Agency agreements according to which IDB will provide the Sultanate with $176 million worth loan (equivalent to almost RO 68 million) to finance 86% of the cost of water supply project from Wadi Dhaiqah to Muscat and Quriyat, which costs RO 79 million.

The agreement was signed by Darwish bin Ismail bin Ali al- Balushi, Minister Responsible for Financial Affairs, Governor of IDB on behalf of the Sultanate's government and Dr. Ahmed Mohammed Ali, Chairman of IDB Group. The signing ceremony was held on the sidelines of the 40th meeting of the IDB Group that was held in Maputo in the Republic of Mozambique. As per the agreement, the loan tenure is 14 years and will be repaid on bi annual installments for 10 years with four-years grace period.

The project will help in meeting the growing demand for water, especially in the Governorate of Muscat and its wilayats. It will also enhance the potable water supply network , improve the production capacity of potable water by adding about 32 million cubic meters of water per day, connecting the wilayat of Quriyat, including Daghmar and Hail Al Ghaf villages with the water network (100%) and provide almost 7 million cubic meter per day of irrigation water to irrigate about 325 hectares of agricultural land.

A long-term program for continuous water supply with less cost compare to water desalination has been developed. The program will alleviate the deterioration of underground water quality from excessive use and the seeping of seawater, as well as the effect on agricultural production.

--- Ends/MS/FS

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Publication:Oman News Agency
Date:Jun 11, 2015
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