- The Republics of Madagascar and Mozambique benefited from these agreements.

- BADEA allocated these loans on easy lending terms and conditions in accordance with the 5th Five-Year Plan (2005-2009).

For strengthening Afro-Arab Cooperation, the Arab Bank for Economic Development in Africa (BADEA), signed today Thursday July 07, 2005, two loan agreements with the Republics of Madagascar and Mozambique to participate in financing development projects in these countries.

BADEA extends to the Republic of Madagascar a loan amounting to US $ 6.5 million to help finance Third Generating Set of the Hydroelectric Power Station of Andekaleka. The project aims at satisfying the increasing requirements in electric power for the population of the capital. It also aims at reducing the production costs of electricity and modernization of the basic infrastructures of production of energy to increase the national income and to improve the trade balance through reducing the need for importation of fuels.

It is worth-mentioning that BADEA has contributed by a loan amounting to US $ 10 million in 1977 to finance the First and Second Generating Sets. The Kuwait Fund for Arab Economic Development, and the OPEC Fund for International Development have both contributed to the financing of the said project. 

The Republic of Mozambique received a loan amounting to US $ 4 million in lieu of these agreements, to help finance construction and equipping of Matola General Hospital project. The project supports the policy of the government in improvement and increasing the medical services in order to meet the essential medical needs for the populations. In particular, the project aims at reduction of the general problems of health of the children through reducing the infant mortality rate, and reducing the death rate of the mothers and improvement of the health situation, by ensuring the health services of the population of the town of Matola and other surrounding areas of Maputo.

The OPEC Fund co-finances this project, thus indicating full Arab funding for the two projects. 

BADEA allocated these loans on easy lending terms. The two loans will be repaid in 30 years, including a grace period of 10 years and at an annual interest rate of 1%. 

H.E. Mr. Ahmed Abdallah Al-Akeil, Chairman of BADEA’s Board of Directors, and H.E. Mr. Medhat S. Lotfy, the Director General of BADEA signed for BADEA, while H.E. Mr. Donat Olivier Andriamahesmparany, Minister of Energy and Mines, signed for the Republic of Madagascar, and H.E. Mr. Artur Jossefa Jamo Ambassador of the Republic of Mozambique in Cairo, signed on behalf of the Government of Mozambique. 

The total commitments of BADEA to these two African countries, including these new loans amounting to US $ 271.505 million. 

During 1975 - 2004, BADEA singed 356 loan agreements totaling US$ 2552.150 million, to the benefit of the beneficiary African countries. These loans included US$ 66.1 million in facilitation provided by BADEA within the framework of HIPC Initiative. In addition BADEA financed 324 technical assistance operations with a total amount of US$ 78.249 million.