Abu Dhabi government provides Dh330.5 million grant to fund 3 power stations and a food security project in Guinea

from Emirates News Agency
Published on 15 Jan 2013 View Original

Under the directives of President His Highness Sheikh Khalifa bin Zayed Al Nahyan and on behalf of the Government of Abu Dhabi, the Abu Dhabi Fund for Development (ADFD) has signed a memorandum of understanding (MoU) by virtue of which the Government of Abu Dhabi will provide Dh 330.57 million (US$90 million) financial grant to the Republic of Guinea.

The move is in line with the Government of Abu Dhabi's keenness to support and help developing countries face their development difficulties, and allow them to implement efficient plans to uplift the living standards of their people.

Administered by the Abu Dhabi Fund for Development (ADFD), the grant will fund a number of vital development projects in Guinea, including the construction of three power generation plants and the development of the country's agricultural sector in order to help it achieve food security.

Commenting on the grant, Mohammed Saif Al Suwaidi, Acting Director General of ADFD said: "This grant substantiates the strong desire of the Abu Dhabi Government, driven by the directives and direct follow-up of its wise leadership, to extend its commitment to help developing countries in need all over the world. The Emirate is thus contributing to alleviating poverty and human suffering in those countries, and helping them to achieve sustainable development. He pointed out that out of the grant's total funding, Dh 224.29 million (US$61.06 million) will be allocated for the construction of three thermal power generation plants with a total output of 100 MW in the capital city of Conakry, and Dh 106.27 million (US$28.93 million) will be earmarked for the funding a food security project.

Al Suwaidi said: "The positive impact of the projects to be funded by this grant will benefit all the sectors of Guinea's economy. In addition to allowing the Guinean government to provide electricity to many deprived areas and consequently improving the living conditions of their people; the availability of adequate electricity supplies will also directly contribute to the stimulation of economic development, and local and foreign investments. As we know, power shortage is one of the major handicaps to the economic and social development of developing countries in general." The second tranche of the grant amounting to Dh106.27 million will be allocated to funding a vital project that is directly linked to achieving food security in Guinea. The project envisages building and operating infrastructures for the production of a range of agricultural products in general and rice in particular. This will be done through the establishment a number of farms (including experimental farms) and related infrastructure such as facilities that are required to store and distribute food products.

Food security is the top priority in many African countries. The high cost of importing foodstuff from regional and international markets heavily burdens their budgets and limits their accessibility to adequate food supplies.

Furthermore, developing agriculture will allow these countries to cover their domestic needs, export any surpluses to foreign markets and create more job opportunities for the local community.

Al Suwaidi concluded: "The projects to be funded by the grant provided by the Government of Abu Dhabi, is a further proof of the efficient role played by the United Arab Emirates in providing development aid, promoting sustainable growth in developing countries and improving the living conditions of their people. The grant also emphasises UAE's important role as an active member of the international community, in effectively contributing to the alleviation human suffering all over the world." For his part, Kerfalla Yansane, Guinea's Economy and Finance Minister praised the Government of Abu Dhabi's role in solidifying mutual cooperation between the United Arab Emirates and the Republic of Guinea. The Minister expressed his high esteem for the efficient role the Government of Abu Dhabi and the ADFD are playing in promoting development in the Republic of Guinea by funding such vital development projects.

It's worth mentioning, that the activities of the ADFD in the Republic of Guinea started in 1977 when the Fund provided two loans for Dh33.38 million. The first loan was allocated to funding the construction of a clinker mill to increase cement production and support the country's industrial and construction sectors. The second loan was allocated to funding the Labe- Seriba Road in Gounasse City to facilitate the transport of people and goods between Guinea and Senegal. The project was aimed at increasing the accessibility of health, social and educational services to remote areas and promoting trade between Guinea and Senegal, Guinea Bissau, Mali and Gambia - Emirates News Agency, WAM