BADEA’s Board of Directors Holds Its Second Meeting for the Year 2004

THE DIRECTOR GENERAL OF THE ARAB BANK FOR ECONOMIC DEVELOPMENT

IN AFRICA VISITS THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

H.E. Mr. Medhat S. Lotfy, Director General of the Arab Bank for Economic Development in Africa (BADEA) arrived on Sunday 4th July 2004 at Addis Ababa, the capital of the Federal Democratic Republic of Ethiopia, as part of a regional visit to the Republics of Botswana, Lesotho, and Senegal extending from 4th July to 20th July 2004.

During his visit to Ethiopia, he received by H.E. the Prime Minister of the Republic of Ethiopia, in addition to the Minister of Finance.

Talks covered areas of cooperation between Ethiopia and BADEA, with the objective of exploring the best means of promoting and developing this cooperation. In this regards arrangements were made to finance Azezo - Metama road project with a loan totalling US $ 13 million, and also arrangements made to finance Kibre Mengist Town Water Supply project with a loan of US $ 6.24 million, these loans will be provided by easing in lending terms, (repayment over a period of 28 years, including a grace period of 6 years, and an annual interest rate of 1%). In addition to technical assistance grants amounting to US $ 430 000 for financing Training Programme to the Development Bank of Ethiopia.

During the same period the Director General attended the 3rd Ordinary Meeting of African Union Summit, which took place in Addis Ababa during the period 6th – 8th July 2004. The Director General met during this event with a number of Heads of African countries and a number of African delegations.

During the same mission the Director General met with His Excellency Mr. Alpha Oumar Konaré, Chairperson of
the Commission of the African Union. Talks focused on cooperation between BADEA and the African Union and means to develop this cooperation.

By the end of June 2004, BADEA’s assistance to Ethiopia consisted of 9 operations totalling the sum of US $ 80.42 million to finance 6 projects, one technical assistance grant and two operations extended through SAAFA. BADEA’s contribution in the projects financed in Ethiopia were well timed to meet the economic development of the country, and covered infrastructure, agriculture, energy, water and institutional support.

It’s worth mentioning that 49 participants from Ethiopia participated in the training sessions organized by BADEA in the framework of technical assistance grants.

BADEA was created pursuant to the decision of the 6th Arab Summit Conference at Algiers (28th November 1973), and commenced its operations in March 1975. Its headquarters is based in Khartoum, the capital of the Republic of Sudan.

The Bank was established for the purpose of strengthening economic, financial and technical cooperation between Arab and African regions, to make Arab-African solidarity a concrete reality and to base this cooperative venture on foundations of friendship and equality. To achieve this goal, the Bank was given a mandate to: -

- Assist in financing economic development in non-Arab African countries.

- Stimulate the contribution of Arab capital flows to African development.

- Help provide the technical assistance required for development in Africa.

BADEA’s financing operations have grown since 1975, to reach US $ 2814.058 million by end of June 2004. These include loans provided through SAAFA (Special Arab Aid Fund for Africa) amounting to US $ 214.2 million, and have been earmarked to finance 352 development projects, 318 technical assistance operations, 26 loans for the private sector and 14 special operations (in the context of Emergency Aid Programme operations for the benefit of several African countries effected by drought and desertification), in addition to 59 loans extended through SAAFA.

BADEA’s commitments to the technical assistance operations to-date stand at US $ 76.564 million, earmarked to finance feasibility studies training and institutional support.

BADEA’s operations cover all 43 eligible countries in Sub-Saharan Africa, in addition to a number of regional organizations. They cover infrastructure, agriculture, rural development, energy, industry, social and financial sector in the form of project loans and technical assistance grants.

The projects selected by BADEA are directed towards improving the living conditions of the target beneficiaries, particularly those projects related to rural development and environment, such as rural water supply and sewage, or those aiming at reducing negative impact of drought and desertification, and reducing poverty. This is obviously in line with current approaches to development. BADEA’s operations also focusing on operations encouraging women’s participation in development.