ASMARA, 20 July — Saudi Arabia and Eritrea signed a SR64 million loan agreement to provide aid to various developmental projects in Eritrea here on Wednesday. With a sum of SR24 million, out of the amount earmarked for the generation of electricity, the total loan aid provided by the Saudi Fund for Development for the country’s electricity sector reached SR155.25 million.
The agreement was signed by Muhammad Abdullah Al-Shawi, SFD’s director general for technical administration and Walday Fatur, director of comprehensive economic policies and international cooperation. Saudi Ambassador to Eritrea Abdul Rahman Al-Toaimi also attended the signing ceremony.
The electricity project for which the aid is intended, aims at the supply of power to the country’s economic and social requirements. The project involves the completion of an 84 MW power plant and construction of 80 km main transmission lines and 160 km long supply lines. SFD has also provided two soft loans worth SR75 million to the Eritrean government to construct a road between Mendefra and Barentu and to finance some agricultural projects. The total loan amount extended by SFD as part of the cooperation between the two countries reached SR230.25 million. (SPA)
