A loan agreement and a guarantee agreement for KD 32 million were signed, in Rabat, on 18th of April 2017, to help finance the Rehabilitation of the Guelb (1) Plant in the Islamic Republic o Mauritania.
The loan agreement was signed by H.E. Mohammed Salem Al Bashir, the Director General of Société Nationale Industrielle et Minière (SNIM), while the guarantee agreement was signed by H.E. Al Mokhtar Ould Ajay, Minister of Finance and Economics, on behalf of the Government of the Islamic Republic of Mauritania. H.E. Mr. Abdlatif Yousef Al-Hamad, Director General/Chairman of the Board of Directors of the Arab Fund, signed both agreements on behalf of the Fund.
The project, which is expected to be completed during the second quarter of 2020 aims at extending the operating life of the Guelb (1) plant and improving the ability of SNIM to compete in international markets, through the replacement of the aging equipment used for crushing and grinding iron ore with newer, more efficient and less polluting equipment. This will lead to an improvement in the reliability of the plant and a reduction in its production cost.
Rehabilitation of Two Diesel Generating Units.
The loan will carry interest at 2% per annum and will be repayable over 30 years with a 6 year grace period.
SNIM will be the beneficiary of the loan, and will be responsible for implementing the project.
With the signing of this loan, the Arab Fund’s total contribution to financing projects in the Islamic Republic of Mauritania now amounts to KD 589.7 million.