Fund Signs AED110 Million Loan Agreement with Republic of Madagascar to Support Construction of Key Roads, Bridges
Abu Dhabi-UAE: 22 November, 2014 – Abu Dhabi Fund for Development (ADFD) is set to extend AED110 million in soft loans to the Republic of Madagascar for the construction of a 117km two-lane road and seven bridges that will connect key rural areas of the country.
Confirming the Fund’s support, a Memorandum of Understanding (MoU) was signed between His Excellency Mohammed Saif Al Suwaidi, Director General of ADFD, and Mrs. Andriambololona Vonintsalama, Secretary General of the Ministry of Finance and Budget in Republic of Madagascar.
Madagascar is home to more than 21 million people, and the new projects are anticipated to drive the country’s tourism and agricultural sectors.
Completion of the coastal road between Soanierana Ivongo and Mananara will ensure the uninterrupted flow of agricultural produce to the markets, while reducing the transportation cost of goods. The new asphalt road will also facilitate continued access to the towns throughout the year, regardless of the weather conditions. Notably, the two-lane highway will help reduce the isolation of rural areas.
Mohammed Saif Al Suwaidi, Director General of Abu Dhabi Fund for Development, said: “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. Apart from facilitating the movement of goods and trade, such projects support the creation of jobs and social mobility.”
He added: "The eradication of poverty in developing countries is part of the Fund’s core mandate. Financing roads and bridges reflects ADFD’s commitment to supporting infrastructure projects that contribute to the development of economic sectors and the wellbeing of the people in developing nations. We believe this project will provide deep and lasting benefits to the people of Madagascar.”
Andriambololona Vonintsalama, Madagascar’s Secretary General of the Ministry of Finance and Budget, said: “We are grateful to the Abu Dhabi Fund for Development for its unwavering commitment to the development of our nation and people. Our government remains focused on the delivery of infrastructure and services that will elevate the nation and provide seamless opportunities for growth to our people. This project is another great example of what can be achieved through collaboration and shared vision for global progress.”
ADFD has earlier financed a power project in Madagascar in 1979, with a funding of AED15 million. The ANDEKALEKA Hydroelectric Power project currently delivers 58MW of power to the local population.
Abu Dhabi Fund for Development (ADFD) was established in 1971 as a leading national entity to provide 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 the government grants provided by the UAE through direct supervision and follow-up of the implementation and operation of the projects. To date, the Fund has granted and managed more than AED61 billion towards financing 416 development projects in 71 countries around the world.