50 Years of Economic Development

50 Years of EconomicDevelopment

50 Years of Economic Development

Presented by

Salem Al - Qallaf

Yousef Al-Bader

Prepared byAlyaa Al-Mousawi

The State of KuwaitThe State of Kuwait

Kuwait Kuwait Kuwait as a country was established in the early 17th

century, and has been ruled by Al-Sabah Family since they were elected by the rest of the Kuwaiti Families.

Before the exploration of oil in 1934, Kuwait was a mercantile center & port.

The people of Kuwait depended mainly on the sea to earn a living.

Kuwait - Discovery of OilKuwait - Discovery of Oil

February 1938, Oil was discovered in Burgan Oil Field.

Kuwait - IndependenceKuwait - Independence

Kuwait got its independence on June 17, 1961. During the rule of his highness The late Amir of Kuwait Abdullah Al-Salem Al-Sabah.

Sheikh Abdullah’s reign was so central to the evolution of modern Kuwait and its constitution.

The date on which he had ascended the throne in 1950 (February 25) was designated National Day.

Establishment of Kuwait Fund

Establishment of Kuwait Fund

Established in 1961 as a bilateral financial – aid agency.

1st national institution founded by a developing country to help developing nations.

- Initial capital = KD 50 million (US$ 165 million) - Geographical coverage = Arab Countries.

Today 2011Our current capital KD 2 billion (US$ 6.6 billion)Geographical coverage = 104 countries worldwide

Kuwait Fund - CapitalKuwait Fund - Capital

Initial Capital = 50 million K.D. 100 million K.D. In 1963 , 200 million K.D. In 1974, 1000 million K.D. (Geographical

distribution was expanded to cover all non-Arab countries requiring development assistance in addition to Arab countries).

In 1981, 2000 million K.D. Today , The Kuwait Fund still retains the 2000

million K.D. in terms of official capital, in addition to two reserved capitals surpassing 2000 million K.D. (The geographical distribution : 104 countries. )

KUWAIT FUND CONTRIBUTIONS TO DEVELOPMENT INSTITUTIONS UP TO

30-01-2011

KUWAIT FUND CONTRIBUTIONS TO DEVELOPMENT INSTITUTIONS UP TO

30-01-2011Institution Paid Up (Million US$) Committed (Million

US$)

Arab Fund for Economic & Social Development578578

Arab Bank for Economic Development in Africa49.69449.694

African Development Bank Group

•African Development Bank•African Development Fund

11.706117.070

213.100249.586

Inter – Arab Investment Guarantee Corporation6.86.8

International Development Association117.000117.000

International fund for agricultural Development (IFAD)

•IFAD Special Program for Sub-Saharan African Countries

51.80056.000

77.088171.53

Arab Gulf Program for United Nations Development Organizations.

10.00050.000

Total1,1021,361

Fund ActivitiesFund Activities

The Scope of our operations can be extended to any country that requires development & financial assistance.

Types of assistance- Loans- Grants & Technical Assistance- Contributions to Multilateral Development

Institutions

Geographical Distribution of Fund’s Loans


South East Asia

&Pacific

South, Center &East Africa

West African Countries

Central Asia & European Countries

Latin America & the Caribbean Countries

Geographical Distribution of Fund’s

Loans (30\1\2011)

Geographical Distribution of Fund’s

Loans (30\1\2011)RegionsNo. of

CountriesNo. of LoansAmount in

(Million US$)%

Arab Countries163038,41954,90

East, South Asia & The Pacific Countries

191562.95819,22


191381,5049,81

Central, South & East African Countries

211071,1247,33

Central Asian & European Countries

16570.9576,24

Latin American & The Caribbean Countries

11380.3722,42

Total10279215,335100%


(30\1\2011)


(30\1\2011)

Arab Countries

Central Asian & European Countries

Central, South & East African Countries

East, South Asia & The Pacific Countries

Latin American & The Caribbean Countries


Sectoral Distribution of Fund’s Loans

Sectoral Distribution of Fund’s Loans

Agriculture

Transportation

Power

IndustryWater & Sanitation

Social

Telecommunications

Development Bank

Sectoral Distribution of Fund’s Loans 30/1/2011Sectoral Distribution of Fund’s Loans 30/1/2011

SectorNo. Of LoansLoan Amount in million US$

%

Transportation3335,31034,62

Energy1374,05026,41

Agriculture1171,86712,18

Water & Sewage771,4259,29

Industry611,1507,50

Social200.5753,75

Development Banks180.4582,99

Miscellaneous150.1561,02

Telecommunication140.3442,24

Total79215,335100

Sectoral Distribution of Fund’s Loans 30/1/2011Sectoral Distribution of Fund’s Loans 30/1/2011

34.62

26.41

12.18

9.29

7.5

3.752.99

2.24

1.02

Transportation Energy Agriculture

Water & Sewage Industry Social

Development Banks Telecommunication Miscellaneous

UN Development Mandate (1974)

UN Development Mandate (1974)

It stipulates that industrial as well as oil producing countries allocate 0.7% of their GDP to development assistance.

The UN Development Goals

The UN Development Goals

Achieve Universal Primary Education.

Promote Gender Equality & Empower Women.

Reduce Child Mortality.

Improve Maternal Health.

Combat HIV, Aids , malaria & other diseases.

Ensure Environmental Sustainability. Develop a Global Partnership for Development

Eradicate Extreme Poverty & Hunger.

Project CycleProject Cycle 1. Project / Loan Status: Pipeline

1.1. THE REQUEST

1.1.1. The Borrower's country should be a developing country. However, countries whose economies are in transition may be considered as eligible. No geographic, ethnic, religious, caste or cultural barrier restricts benefiting from the Fund's loans and assistances.

1.1.2. The request for assistance must be made by the governmental authority responsible for international cooperation and external borrowing.

Project CycleProject Cycle 1.1.3. The requesting authority should indicate that the project is a priority project to the

government.

1.1.4 The project should have a strong public sector element and be of a developmental nature. The Fund's assistance is not limited to a particular sector. The project may be in any of the following sectors: infrastructure, agriculture, irrigation, transport, communications, energy, water supply, sewage treatment, education and health.

1.1.5 The project, if not in the education and health sectors, should be supported by a detailed techno-economic feasibility study. The feasibility of the project must be demonstrated by cost-benefit analysis and the calculation of an internal economic rate of return, with an indication of sensitivity to changes in parameters. For projects in the health and education sectors, it is sufficient to demonstrate the feasibility of the project through technical and social data, in addition to evidence establishing the need for the project. The studies of the project should include the proposed components, the cost estimates in local and foreign currencies, and the proposed financing plan. abidance to the "Kuwait Fund Requirements for the Preparation of a Feasibility Study" is advisable. It is preferable that the services of an independent specialized consultant be obtained for the preparation of feasibility studies.

Project CycleProject Cycle 1.2. THE PRELIMINARY APPROVAL:

1.2.1. A team is formed by the Operations Department of Fund to prepare a memorandum regarding the project, summarizing the available information thereof.

1.2.2. If the recommendation of the team is positive, and if the studies are adequate, the Fund's management submits, on approval of the Board's Internal Loans Committee, a recommendation to the Board of Directors to, preliminarily, approve the participation in the financing the project.

1.2.3. Upon the Board's preliminary approval, the management of the Fund may proceed to consider the project for further evaluation.

Project CycleProject Cycle 1.3. THE APPRAISAL:

1.3.1. A mission, composed usually of an engineering adviser, an economic adviser and a legal adviser, visits the country to appraise the project. The mission would visit the project site, collect all necessary project and sector information and, if satisfied, negotiate and initial a draft loan agreement before the end of the visit. The draft loan agreement would state the amount of the proposed loan, the lending terms and other conditions based on the findings of the mission.

1.3.2. Under normal circumstances, and in accordance with the regulations of the Fund, the amount of the loan would not exceed 50% of the total cost of the project and would not include financing of local costs of goods produced in the territories of the borrower.

1.3.3. Upon its return, the mission would prepares a project appraisal report which includes information about the economy of the country, the sector, the implementing agency, the project, the economic and financial viability of the project (if required), and the lending terms and conditions. Such report would be discussed in a meeting attended by all the technical staff of the Fund.

Project CycleProject Cycle 1.4. THE FINAL APPROVAL:

1.4.1. Following discussion and approval of the project appraisal report by the Fund's management it is submitted to the Board of Directors with appropriate recommendations concerning participation in financing the project.

1.4.2. If satisfied, the Board of Directors grants the required approval. Following that, a date is fixed for the official signature of the of the loan agreement which usually takes place in the borrower's country.

Project CycleProject Cycle 2. Project / Loan Status: Active:

2.1. THE EXECUTION:

2.1.1. The concerned government authority would invite offers from consultants for the provision of the required consulting services. Following the preparation of construction bidding documents and approval thereof by the Fund, bids may be invited from contractors for the construction of the project or from suppliers for the procurement of the required goods. Under normal circumstances, and in accordance with stipulations of the Loan Agreement, all biddings should be competitive, either through open international bidding or through restricted bidding.

2.1.2. The concerned government authority is expected to obtain the prior approval of the Fund on each implementation step, including, the evaluation of offers, texts of contracts, etc.

Project CycleProject Cycle

2.1.3. Based on the signed and approved contracts, withdrawal applications for disbursements from the proceeds of the loan would be issued by the authorized representative of the borrower. The Fund would disburse, in accordance with the Fund's "Disbursement Procedures", through either direct payments to the beneficiary for construction of works and for services, which is the most common case, or through Letters of credit for procurements, or through reimbursement to the borrower against evidence of payment already made to the beneficiary.

2.1.4. The Fund expects to receive periodic reports from the borrower regarding the progress of the implementation of the project.

2.1.5. During the progress of the project, and especially whenever a problem arises, the Fund would mount a follow-up mission to visit the project site and discuss pending matters. Also, the fund may invite representatives of the borrower and of the co-financiers if any, to meet in Kuwait to discuss outstanding matters.

Project CycleProject Cycle 3. Project / Loan Status: Completed

3.1. THE COMPLETION:

3.1.1. Upon completion of the project, the Fund expects to receive a final report from the Borrower.

3.1.2. After completion of the project, and if there is an unutilized uncommitted balance in the Loan, the Fund usually cancels the said balance and adjusts the repayment schedule accordingly. Under special circumstances, and subject to the approval of the management of the Fund, the borrower may utilize the said balance to finance additional works and goods directly related to the project, and clearly provided for in the Loan Agreement.

3.1.3. Under normal circumstances, the borrower starts repayment of the Loan after the expiry of a grace period. The said grace period, as indicated in the Loan Agreement, starts from the dare of the first disbursement and lasts one year beyond the construction period of the project, thus allowing the borrower to repay the loan through deriving benefits from the project.

Geographical distribution of Loans – Central Asian & European

Countries


Countries

Country NameNo. Of LoansLoan Amt. (in million US$)

Moldova16.460

Malta324,126

Lithuania115,640

Kazakhstan113,916

Kyrgyzstan219,332

Cyprus983,562

Tadjikistan459,840

Georgia233,932

Turkmenistan10.623

Belarus117.340


Countries


Countries

Bulgaria141,82

Uzbekistan588,084

Albania673,338

Azerbaijan233,310

Turkey12360,968

Bosnia and Herzcgovina484,320

Total55956,617

Albania –Grants & Technical AssistanceAlbania –Grants &

Technical Assistance

Country Name

AlbaniaF.S. for the Elbasan-Berat-Tepelene Axis Road

F.S. and preliminary Design for the Durres – Plepa Junction Road

Albania - LoansAlbania - Loans

Country Project NameAmount in Million US$

AlbaniaTransport9,163

Irrigation Rehabilitation9,942

Elbasan – Shafetan National Road

8,333

Irrigation & Drainage Rehabilitation Phase II

11,900

Irrigation & Drainage Rehabilitation Phase III

13,600

The Durres Bypass and the Vora Interchange Project on

the Durres – Vora Road

20,400

Azerbaijan –Grants & Technical AssistanceAzerbaijan –Grants & Technical Assistance

Country Name

AzerbaijanInstitutional Support

F.S. of Kurdamir Udjiar Road

Azerbaijan - LoansAzerbaijan - LoansCountry Project NameAmount in Million US$

AzerbaijanThe Improvement of Alyat Gazi Mohamed

Road

18,011

Baku Bypass Highway Project

15,300

Belarus – Grants & Technical AssistanceBelarus – Grants &

Technical Assistance

Country Name

BelarusF.S. for Extension and Rehabilitation of Poly. Micro. Yarn Production Plan

F. S. for Rehabilitation of Thermal Power Station of Minsk tes-3

Belarus - LoansBelarus - Loans


BelarusSvetlogorsk Polyester Plant Development

17,340

Bosnia – Grants & Technical Assistance

Bosnia – Grants & Technical Assistance

Country Name

BosniaT.A. Study for Water Supply & Sanitation in City of Sarajevo

F. S. for the Sarajevo - Gorazde Road

Bosnia & Herzegovina - Loans

Bosnia & Herzegovina - Loans


Bosnia and Herzegovina

Bor Bank Financing Facility20,740

Upgrading 4 roads and Reconstruction of Musala

Bridge in Mustar

10,200

Water Supply & Sanitation Urgent Works in The

Federation of Bosnia & Herzegovina

17,680

Kakanj – Donja Gracanica Highway Project

35,700

Kazakhstan – Grants & Technical Assistance

Kazakhstan – Grants & Technical Assistance

Country Name

KazakhstanT.A & F.S for the Basic Infrastructure Utilities for the Expansion Area of Astan

Kazakhstan - LoansKazakhstan - Loans


KazakhstanAralsk Water Supply (Aral Sea Region)

13,919

Malta – Grants & Technical Assistance

Malta – Grants & Technical Assistance

CountryName

MaltaF.S. : Increasing Agricultural Production

Malta -LoansMalta -Loans


MaltaFisheries Development299

Malta “B” Power Station Extension

11,220

Delimara Power Station (Project Phase I)

12,608

Moldova – Grants & Technical AssistanceMoldova – Grants & Technical Assistance

CountryName

MoldovaF.S. for the Diabetic Medical Center

Moldova - LoansMoldova - Loans


MoldovaDrinking Water6,460

Slovakia - Grant and Technical Assistance

Slovakia - Grant and TechnicalAssistance

CountryName

SlovakiaStudies related to Reassessment & Utilization of Ground Water Resources

Tadjikistan – Grants & Technical Assistance

Tadjikistan – Grants & Technical Assistance

Country Name

TadjikistanF.S. for Kulyb – Kalauhum Road Project

Tadjikistan - LoansTadjikistan - Loans


TadjikistanShkev – Zigar Road17,000

Rehabilitation of Dushanbe Electricity Distribution Network

12,240

Dangara Valley Irrigation Project –

Phase II

13,600

Shurabad – Shagon Road Project (Kulyab

– Kalaikhumb Corridor)

17,000

Turkmenistan - Grant and Technical Assistance

Turkmenistan - Grant andTechnical Assistance

Country Name

TurkmenistanT.A. for Special Program for Baby Food Production

Ashgabat – Turkmenbashi Road

Turkmenistan - LoansTurkmenistan - Loans


TurkmenistanAshgabat – Mary Road Rehabilitation

0.623

Ukraine – Grants & technical AssistanceUkraine – Grants & technical Assistance

Country Name

UkraineChernobyl Shelter Fund

Chernobyl Shelter Fund 2nd contribution

Uzbekistan - Grant and Technical Assistance

Uzbekistan - Grant and TechnicalAssistance

Country Name

UzbekistanRehabilitation of Irrigation Network and Drainage System Project in Djizakh and

Syrdarya

Institutional Support to the Uzbek Fund for Reconstruction and Development

Uzbekistan - LoansUzbekistan - LoansCountry Project NameAmount in Million US$

UzbekistanImprovement of Water Supply of Nukus and Urgench

19,948

Tashkent – Angren Railway Line Electrification

21,080

Rehabilitation & Equipping of 171 Medical Emergency

Department

20,400

Rehabilitation & Equipping of A Cardio Surgery Building

Project

11,900

The Rehabilitation & Construction of Irrigation Net.

And Drainage System in Djizakh and Syrdarya

14,756

Cyprus - LoansCyprus - LoansCountry Project NameAmount in Million

US$

CyprusNew Nicosia- Limassol Highway3,842

Vasilikos - Pendaskinos for Irrigation & Potable Water Supply

8,295

Limassol Bypass-Ypsonas Erimi Link and Rural Roads Improvement

8,160

Southern Conveyor Project for Water Resources (development stage I)

9,996

Larnaca – Nicosia Highway and Improvement of Larnaca – Kophinou

Road

13,600

Southern Conveyor Project14,620

Larnaca – Nicosia Highway and Larnaca Kophinou Highway

8,500

Palkori – Agros Road3,310

Erimi – Evdhimou Highway First Phase of the new Limassol – Phaphos

Highway

13,238

Turkey - LoansTurkey - LoansCountry Project NameAmount in Million US$

TurkeyBosphorus Transmission Line Crossing

8,801

Istanbul Main Water Transmission Pipeline

9,269

Izmir Water Supply19,635

Rehabilitation of Two Sections of Trans Turkey Highway

13,664

Rehabilitation of Urfa – Akinci Sector of the Trans Turkey Highway

17,000

Turkey Railway19,633

Rehabilitation & Extension of the Water Network of Greater Ankara

19,471

Greater Istanbul Water Supply Yesilcay System

79,961

Greater Istanbul Water Supply Yesilcay System

64,055

Reconstruction & Development of Earthquake Affected Regions

54,400

Turkey - LoansTurkey - Loans


Turkey The Reconstruction & Development of

Earthquake Affected Region (Sewerage

Project)

26,180

Supplementary Loan for Financing the Reconstruction & Development of

Roads

28,900

Lithuania - LoansLithuania - Loans


LithuaniaExpansion of Gas Transmission and

Distribution Networks

15,640

Kyrgyzstan - LoansKyrgyzstan - Loans


KyrgyzstanOsh Telecommunications Development

8,793

Transmission Line for Electrification of Osh District

(Phase One)

10,540

Bulgaria - LoansBulgaria - Loans


BulgariaSofia Airport Development41,820

Georgia - LoansGeorgia - Loans


GeorgiaRoads Rehabilitation16,933

Tbilisi Roads Rehabilitation

17,000

Kuwait Government GrantsKuwait Government Grants

Country Grant NameAmount in Thousand US$

KazakhstanConstruction of the New Governmental

Building

10,000

Chernobyl : The Nuclear Disaster

Chernobyl : The Nuclear Disaster

On April 26, 1986 the worst nuclear accident in the history of atomic industry took place at Chernobyl Nuclear Power Plant in the ex Soviet Union. The fourth reactor of the power plant exploded and caught fire. As a result of the explosion, the core of the reactor, the protection barriers, and the safety systems were completely destroyed. The reactor emitted millions of curies of radioactive particles into the atmosphere contaminating the land for miles around.

In November 1986, the USSR Council of Ministers approved the construction of a confinement design called “shelter”; which was built in a great hustle and under tremendously tough conditions resulting in a number of serious problems.

In 1997, the leaders of the seven industrial states decided to assist Ukraine in facing the disaster that erupted at Chernobyl. And, the Chernobyl Fund was established.

Towards the end of 1998, the participation of various countries in the said fund amounted to US$ 4 million.

The Kuwait fund was entrusted to pay the said participation from its own resources, and to administer the Kuwaiti grant.

In August 2007, and as an outcome of the international tender, a contract was signed with an international consortium to construct the “New Safe Confinement” for an updated cost of Euro 728 millions.

The Chernobyl Fund asked for additional financing. The pledge of the state of Kuwait was increased by US$ 2millions , and paid from the resources of the Kuwait Fund.

The Kuwait Fund believing in noble aims of international cooperation to save human communities, administers the Kuwaiti Grant and maintains continuous efficient follow up of all the Chernobyl Fund projects, operations, and budget.

Renovation of Water Supply, Storm Drainage and Sewerage Projects in the

city of Pyongyang, the Capital of Democratic People’s Republic of Korea

Renovation of Water Supply, Storm Drainage and Sewerage Projects in the

city of Pyongyang, the Capital of Democratic People’s Republic of Korea

These two projects are an example of the integrated water management that the Fund seeks to finance.

The first part aims at reduction of severe shortage of Potable water for about 3 million people in the city, while the second part aims at the protection of the environment and public health of inhabitants against pollution of waste water.

The Project has been implemented over two stages, the first one accomplished the rehabilitation and improvement of the city water supply system through procurement of equipment and machinery needed for the rehabilitation of the six existing water purification plants.

The next stage of the project included the rehabilitation and improvement of waste water system in the city.

The total estimated cost of these two projects was about 110 million US$.

Rehabilitation of Water Supply Systems in two towns, Santiago De Cuba and

Holguin in the Republic of Cuba

Rehabilitation of Water Supply Systems in two towns, Santiago De Cuba and

Holguin in the Republic of Cuba

These two projects aims at the reduction of the present shortage of potable water through the rehabilitation of the two water supply systems in the two cities of a total population around 800 thousand inhabitants.

The two projects include the rehabilitation of the water purification plants, the pumping stations, storage tanks as well as the laying of water distribution pipelines and the installation of house water meters.

The cost of these two projects was estimated at about 58US$.

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50 Years of Economic Development