50 Years of Economic Development


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50 Years of Economic Development

  1. 1. Years of Economic Development 50 Presented by Salem Al - Qallaf Yousef Al-Bader Prepared by Alyaa Al-Mousawi
  2. 2. The State of Kuwait
  3. 3. 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.
  4. 4. Kuwait - Discovery of Oil  February 1938, Oil was discovered in Burgan Oil Field.
  5. 5. Kuwait - Independence  Kuwait got its independence on June 17, 1961. During the rule of his highness The late Amir of Kuwait Abdullah Al-Salem AlSabah. 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.
  6. 6. 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 2011 Our current capital KD 2 billion (US$ 6.6 billion) Geographical coverage = 104 countries worldwide
  7. 7. Kuwait 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. )    
  8. 8. KUWAIT FUND CONTRIBUTIONS TO DEVELOPMENT INSTITUTIONS UP TO 3001-2011 Institution $)Paid Up (Million US Committed (Million $)US Arab Fund for Economic & Social Development 578 578 Arab Bank for Economic Development in Africa 49.694 49.694 11.706 117.070 213.100 249.586 6.8 6.8 International Development Association 117.000 117.000 International fund for agricultural )Development (IFAD 51.800 56.000 77.088 171.53 Arab Gulf Program for United Nations .Development Organizations 10.000 50.000 Total 1,102 1,361 African Development Bank Group •African Development Bank •African Development Fund Inter – Arab Investment Guarantee Corporation •IFAD Special Program for Sub-Saharan African Countries
  9. 9. Fund 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
  10. 10. Geographical Distribution of Fund’s Loans Central Asia & European Countries South East Asia West African Countries Latin America & the Caribbean Countries Pacific& South, Center East Africa&
  11. 11. Geographical Distribution of )Fund’s Loans (3012011 Regions No. of Countries No. of Loans Amount in $)(Million US % Arab Countries 16 303 8,419 54,90 East, South Asia & The Pacific Countries 19 156 2.958 19,22 West African Countries 19 138 1,504 9,81 Central, South & East African Countries 21 107 1,124 7,33 Central Asian & European Countries 16 57 0.957 6,24 Latin American & The Caribbean Countries 11 38 0.372 2,42 Total 102 792 15,335 100%
  12. 12. Geographical Distribution of )Fund’s Loans (3012011 Arab Countries Central Asian & European Countries Central, South & East African Countries East, South Asia & The Pacific Countries Latin American & The Caribbean Countries West African Countries
  13. 13. Sectoral Distribution of Fund’s Loans Development Bank Transportation Telecommunications Industry Water & Sanitation Power Agriculture Social
  14. 14. Sectoral Distribution of Fund’s Loans 30/1/2011 Sector No. Of Loans Loan Amount in $million US % Transportation 333 5,310 34,62 Energy 137 4,050 26,41 Agriculture 117 1,867 12,18 Water & Sewage 77 1,425 9,29 Industry 61 1,150 7,50 Social 20 0.575 3,75 Development Banks 18 0.458 2,99 Miscellaneous 15 0.156 1,02 Telecommunication 14 0.344 2,24 Total 792 15,335 100
  15. 15. Sectoral Distribution of Fund’s Loans 30/1/2011 3.75 2.24 2.99 1.02 7.5 34.62 9.29 12.18 26.41 Transportation Energy Agriculture Water & Sewage Industry Social Development Banks Telecommunication Miscellaneous
  16. 16. UN Development Mandate )(1974  It stipulates that industrial as well as oil producing countries allocate 0.7% of their GDP to development assistance.
  17. 17. The UN Development Goals  Eradicate Extreme Poverty & Hunger.  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
  18. 18. Project 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.
  19. 19. Project 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.
  20. 20. Project 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.
  21. 21. Project 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.
  22. 22. Project 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.
  23. 23. Project 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.
  24. 24. Project 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.
  25. 25. Project 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.
  26. 26. Geographical distribution of Loans – Central Asian & European Countries Country Name No. Of Loans $)Loan Amt. (in million US Moldova 1 6.460 Malta 3 24,126 Lithuania 1 15,640 Kazakhstan 1 13,916 Kyrgyzstan 2 19,332 Cyprus 9 83,562 Tadjikistan 4 59,840 Georgia 2 33,932 Turkmenistan 1 0.623 Belarus 1 17.340
  27. 27. Geographical distribution of Loans – Central Asian & European Countries Bulgaria 1 41,82 Uzbekistan 5 88,084 Albania 6 73,338 Azerbaijan 2 33,310 Turkey 12 360,968 Bosnia and Herzcgovina 4 84,320 Total 55 956,617
  28. 28. Albania –Grants & Technical Assistance Country Name Albania F.S. for the Elbasan-Berat-Tepelene Axis Road F.S. and preliminary Design for the Durres – Plepa Junction Road
  29. 29. Albania - Loans Country Project Name $Amount in Million US Albania Transport 9,163 Irrigation Rehabilitation 9,942 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
  30. 30. Azerbaijan –Grants & Technical Assistance Country Name Azerbaijan Institutional Support F.S. of Kurdamir Udjiar Road
  31. 31. Azerbaijan - Loans Country Project Name $Amount in Million US Azerbaijan The Improvement of Alyat Gazi Mohamed Road 18,011 Baku Bypass Highway Project 15,300
  32. 32. Belarus – Grants & Technical Assistance Country Name Belarus F.S. for Extension and Rehabilitation of Poly. Micro. Yarn Production Plan F. S. for Rehabilitation of Thermal Power Station of Minsk tes-3
  33. 33. Belarus - Loans Country Project Name $Amount in Million US Belarus Svetlogorsk Polyester Plant Development 17,340
  34. 34. Bosnia – Grants & Technical Assistance Country Name Bosnia T.A. Study for Water Supply & Sanitation in City of Sarajevo F. S. for the Sarajevo - Gorazde Road
  35. 35. Bosnia & Herzegovina - Loans Country Project Name $Amount in Million US Bosnia and Herzegovina Bor Bank Financing Facility 20,740 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
  36. 36. Kazakhstan – Grants & Technical Assistance Country Name Kazakhstan T.A & F.S for the Basic Infrastructure Utilities for the Expansion Area of Astan
  37. 37. Kazakhstan - Loans Country Project Name $Amount in Million US Kazakhstan Aralsk Water Supply ((Aral Sea Region 13,919
  38. 38. Malta – Grants & Technical Assistance Country Name Malta F.S. : Increasing Agricultural Production
  39. 39. Malta -Loans Country Project Name Amount in Million $US Malta Fisheries Development 299 Malta “B” Power Station Extension 11,220 Delimara Power Station ((Project Phase I 12,608
  40. 40. Moldova – Grants & Technical Assistance Country Name Moldova F.S. for the Diabetic Medical Center
  41. 41. Moldova - Loans Country Project Name $Amount in Million US Moldova Drinking Water 6,460
  42. 42. Slovakia - Grant and Technical Assistance Country Name Slovakia Studies related to Reassessment & Utilization of Ground Water Resources
  43. 43. Tadjikistan – Grants & Technical Assistance Country Name Tadjikistan F.S. for Kulyb – Kalauhum Road Project
  44. 44. Tadjikistan - Loans Country Project Name $Amount in Million US Tadjikistan Shkev – Zigar Road 17,000 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
  45. 45. Turkmenistan - Grant and Technical Assistance Country Name Turkmenistan T.A. for Special Program for Baby Food Production Ashgabat – Turkmenbashi Road
  46. 46. Turkmenistan - Loans Country Project Name $Amount in Million US Turkmenistan Ashgabat – Mary Road Rehabilitation 0.623
  47. 47. Ukraine – Grants & technical Assistance Country Name Ukraine Chernobyl Shelter Fund Chernobyl Shelter Fund 2nd contribution
  48. 48. Uzbekistan - Grant and Technical Assistance Country Name Uzbekistan Rehabilitation of Irrigation Network and Drainage System Project in Djizakh and Syrdarya Institutional Support to the Uzbek Fund for Reconstruction and Development
  49. 49. Uzbekistan - Loans Country Project Name $Amount in Million US Uzbekistan Improvement 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
  50. 50. Cyprus - Loans Country Project Name Amount in Million $US Cyprus New Nicosia- Limassol Highway 3,842 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 Project 14,620 Larnaca – Nicosia Highway and Larnaca Kophinou Highway 8,500 Palkori – Agros Road 3,310 Erimi – Evdhimou Highway First Phase of the new Limassol – Phaphos Highway 13,238
  51. 51. Turkey - Loans Country Project Name $Amount in Million US Turkey Bosphorus Transmission Line Crossing 8,801 Istanbul Main Water Transmission Pipeline 9,269 Izmir Water Supply 19,635 Rehabilitation of Two Sections of Trans Turkey Highway 13,664 Rehabilitation of Urfa – Akinci Sector of the Trans Turkey Highway 17,000 Turkey Railway 19,633 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
  52. 52. Turkey - Loans Country Project Name $Amount in Million US Turkey The Reconstruction & Development of Earthquake Affected Region (Sewerage (Project 26,180 Supplementary Loan for Financing the Reconstruction & Development of Roads 28,900
  53. 53. Lithuania - Loans Country Project Name $Amount in Million US Lithuania Expansion of Gas Transmission and Distribution Networks 15,640
  54. 54. Kyrgyzstan - Loans Country Project Name $Amount in Million US Kyrgyzstan Osh Telecommunications Development 8,793 Transmission Line for Electrification of Osh District ((Phase One 10,540
  55. 55. Bulgaria - Loans Country Project Name Amount in $Million US Bulgaria Sofia Airport Development 41,820
  56. 56. Georgia - Loans Country Project Name $Amount in Million US Georgia Roads Rehabilitation 16,933 Tbilisi Roads Rehabilitation 17,000
  57. 57. Kuwait Government Grants Country Grant Name Amount in Thousand $US Kazakhstan Construction of the New Governmental Building 10,000
  58. 58. Chernobyl : The Nuclear Disaster         On April 26, 1986 the worst nuclear accident in the history of atomic industry took place at Chernobyl Nuclear Power Plant in the ex Soviet Union. The fourth reactor of the power plant exploded and caught fire. As a result of the explosion, the core of the reactor, the protection barriers, and the safety systems were completely destroyed. The reactor emitted millions of curies of radioactive particles into the atmosphere contaminating the land for miles around. In November 1986, the USSR Council of Ministers approved the construction of a confinement design called “shelter”; which was built in a great hustle and under tremendously tough conditions resulting in a number of serious problems. In 1997, the leaders of the seven industrial states decided to assist Ukraine in facing the disaster that erupted at Chernobyl. And, the Chernobyl Fund was established. Towards the end of 1998, the participation of various countries in the said fund amounted to US$ 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.
  59. 59. 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$.
  60. 60. Rehabilitation of Water Supply Systems in two towns, Santiago De Cuba and Holguin in the Republic of Cuba  These two projects aims at the reduction of the present shortage of potable water through the rehabilitation of the two water supply systems in the two cities of a total population around 800 thousand inhabitants.  The two projects include the rehabilitation of the water purification plants, the pumping stations, storage tanks as well as the laying of water distribution pipelines and the installation of house water meters.  The cost of these two projects was estimated at about 58US$.