Abu Dhabi Signs Dhs110m Loan Agreement With Madagascar

Abu Dhabi Fund for Development (ADFD) has signed an agreement with the Republic of Madagascar to provide Dhs110 million in soft loans to develop the country’s infrastructure.

The loans will help in the construction of a two lane road stretching about 117km and seven bridges that will connect the rural areas of the country, a statement said.

The new projects are expected to drive the growth of country’s tourism and agricultural sectors, it added.

The fund said that completion of the two-lane road between the towns of Soanierana Ivongo and Mananara will ensure the uninterrupted flow of agricultural produce to the markets. It will also help to reduce the transportation cost of goods.

The planned highway is expected to facilitate continued access to the towns throughout the year, regardless of the weather conditions while helping reduce the isolation of rural areas in Madagascar.

“The government of Madagascar is extremely focused on the redevelopment of its core infrastructure as part of its priority to stimulate economic growth and lift its people out of poverty,” said Mohammed Saif Al Suwaidi, director general of ADFD.

“Apart from facilitating the movement of goods and trade, such projects support the creation of jobs and social mobility.”

ADFD had earlier financed a power project worth Dhs15 million in Madagascar in 1979. The Andekaleka hydroelectric power project currently delivers 58 megawatts of power to the local population.

Established in 1971, ADFD provides development aid to emerging economies in the form of concessionary loans and administrative grants on behalf of the Abu Dhabi government.

The fund also manages government grants provided by the UAE through direct supervision and follow-up of the implementation and operation of the projects.

Till date, ADFD has granted and managed more than Dhs61 billion in financing 416 development projects spread across 71 countries around the world.

Recently it signed a deal with the government of Sierra Leone to provide a loan worth Dhs33 million to finance a solar power plant.