RIYADH: Affirming its commitment to ensure a sustainable future, a top official at the Kuwait Fund for Arab Economic Development said that it is currently keen to finance projects that are capable of mitigating the effects of climate change.
In an interview with Arab News, Tareq Al-Manayes, economic adviser at the KFAED said that the fund is closely monitoring global developments and is ready to provide support to countries when they are in need.
During the talk, Al-Manayes noted that the fund is selecting eligible countries to provide economic support after analysing a number of criteria.
“The fund receives requests to finance development projects from governments on an ongoing basis, and accordingly studies these projects, and evaluates which ones to finance. This selection process is subject to a number of criteria,” said the official.
He added that the first criterion to provide economic support is that the project which will be financed should contribute to the infrastructure and social structures of a country, which includes transportation, water, energy, education and health care.
“The Kuwait Fund is also keen that these projects achieve sustainable development goals in each respective country,” said Al-Manayes.
He added: “As for the challenges faced by the fund, they are usually related to the economic, political and climatic challenges experienced by developing countries.”
The fund always gives priority to sustainability while executing projects in various countries. (Supplied)
Al-Maneyes further pointed out that the KFAED’s contributions to various countries will definitely have a positive impact on local communities.
The development projects which are being spearheaded by the fund are made to enhance the quality of life of the residents living in those respective areas.
“Before approving a loan, the Kuwait Fund first studies the feasibility of the project. A technical team from the fund usually prepares a detailed report that explains the basic elements of the project, and determines the social and economic impacts expected from the project by calculating its economic rate of return,” said the official.
He added that the Kuwait Fund will also periodically monitor the performance of the project implementation, to ensure that it will be completed without any delay.
According to Al-Manayes, one of the most crucial challenges which is being faced globally is the deterioration of the world’s economic situation, along with high rates of inflation.
“High rates of inflation and the high volume of external debts of developing countries, which has plunged many developing countries into a debt crisis that delays the continuation of the borrowing process,” said Al-Manayes.
He further noted that to approve financing for particular projects, the Kuwait Fund should receive a request officially from the borrowing nation.
“Developing countries face many development challenges, such as desertification, water scarcity, poverty, food insecurity, and others. The fund seeks to help countries which have these issues, and finance projects that would help them confront these challenges,” added Al-Manayes.
During the talk, Al-Manayes also revealed the latest projects financed by the Kuwait fund.
All the projects financed by the fund are development projects aimed at achieving sustainable development goals in developing countries.
Tareq Al-Manayes, Economic adviser at KFAED
“The latest projects approved by the Board of Directors are in the field of public education, and infrastructure development in the Hashemite Kingdon of Jordan. Other projects also include financing the water provision for the states of Sante Fe and Cordoba in Argentina, as well as the Sevare Gao Road project in Maki.”
He added that the Kuwait Fund has previously contributed to financing projects that contributed to the healthcare sector in Jordan by providing assistance to the Aqaba Hospital. The fund has also recently financed the Amman Water Project to contribute to the clean drinking water sector in Jordan. Al-Manayes added that all these initiatives by the Kuwait Fund in Jordan are aligned with the United Nation’s Sustainable Development Goals.
“The Aqaba Hospital project aims to improve the levels of health care for all citizens and residents of Aqaba Governorate. The Amman Water Project aims to provide water to the city of Amman and other Jordanian cities. The surrounding areas suffer from severe water shortages,” he said.
He added that the Kuwait Fund always gives priority to sustainability while executing projects in various countries.
KFAED was founded in 1961 with the goal of helping developing countries to grow socially and economically.
“The fund ensures that the project would contribute to the country’s infrastructure, it would achieve sustainable development goals, and if it is within the country’s strategic plan,” he said.
Al-Manayes added: “All the projects financed by the fund are development projects aimed at achieving sustainable development goals in developing countries. The fund’s development projects have multiplied in the sectors of water, energy, transportation, health, and education.”
He noted that one of the most noted projects completed by the fund was the Bahr Al-Baqar project in Egypt. According to Al-Manayes, the Bahr Al-Baqar project aims to meet the demand for clean water suitable for agricultural uses, optimize the exploitation of water resources, and achieve sustainable development goals related to water and sanitation.
He added that the fund, to enhance food security has financed the family farming project in Guinea-Bissaum. This project aims to enhance family farming activity in the West African nation, increase means of agricultural production, and overall raising the population’s standard of living.
The Kuwait Fund has also successfully established 34 small hydroelectric stations in Cuba, which aims to save the use of thermal fuel, thus reducing carbon emissions.
“The Fund always seeks to help developing countries manage their wealth and aims to contribute to projects that enhance infrastructure, sustainable development, food security, and energy, which will help the developing country become more self-reliant,” he concluded.
