In 1993, the Project Steering Committee, which was formed jointly from the Ministry of Irrigation and the National Electricity Corporation prepared a summary for the feasibility study that was conducted earlier by the Canadian Consultant Monenco Agra. Committee sent copies of the summary report to the Ministry of Foreign Affairs, on June 19th of the same year. This move aimed at providing the Sudanese Embassies abroad with a document that will help them to look for funds and appeal for the interested investors to venture in the Dam's Project.


Signing the Arab Fund Loan Agreement

On 27th Feb. 1999, the President of the Republic formed an Executive Unit to promote and follow up on the implementation of the Damís Project.

Paragraph (D) of the Republican Decree mandated the Unit to prepare and execute all investment activities related to the project, and search for funds. At that time, Mr. Osama Abdullah Mohamed El Hassan was appointed a State Minister and made the Executive Director for the Merowe Dam Project Implementation Unit.

On his part, Mr. Osama formed a small committee before the end of the year to look into the issue of funding the Damís Project. The committee included some renowned figures such as: Mr. Abdul Raheem Hamdi, Mr. Mohamed Kheir El Zubair, Dr. Taj El Sir Mustafa, Mr. Abdul Jalil Abdul Jabbar, Eng. Munir El Hakim and others.

The Committee recommended the search for long term loans for the Damís

Body, and commercial loans for the Power Plant and the Transmission Lines as they will have fast revenue.


Signing the Kuwaiti Fund Loan Agreement

The Implementation Unit knocked on all doors in search for funds. It approached countries such as Malaysia, China, Canada, Arab Countries and European Countries. It also looked into previous and similar experiences in Turkey, Egypt and Syria.

In 1999, the President of the Republic considered the funding of the Merowe Dam as a high priority. In his tour on the Arab countries in 2000, he put the Project on the top list of his agenda.

In Nov. 2000, a high ranking joint delegation for Arab Funds arrived in Sudan to evaluate the Project. As a result they agreed to fund 70% of the Civil Works, and the Government of Sudan pledged to provide the remaining 30%. The delegation also agreed to fully fund the consultancy activities, and kept additional reserve funds for the civil works.

Summary of the Funds: 



Fund (in millions of $US)


Government of Sudan



Government of China



Arab Fund for Economical and Social Development.



Saudi Fund for Development



Abu Dhabi Fund for Development



Kuwaiti Fund for Economical Development



Sultanate of Oman



State of Qatar





Following is a brief information about the contribution of each of the Arab Funds.

a) The Arab Fund for Economical and Social Development on 7th May 2002:

The Arab Fund for Economic and Social Development (the Arab Fund), based in the State of Kuwait, is an Arab regional financial institution focused on funding economic and social development by financing public and private investment projects and providing grants and expertise. The Arab Fund's activities are characterized by a number of important aspects that make it a model of cooperation and Arab economic integration, and a reflection of outstanding joint Arab action.

For more information about the Arab Fund please visit their website at:

b) The Kuwaiti Fund for Economical Development:

Kuwait Fund For Arab Economic Development is the first institution in the Middle East that took an active role in the international development efforts.

The Kuwait Fund extends Loan on concessionary term to finance development projects in the developing countries. The Fund also provides technical assistance to finance the costs of the of the feasibility studies of projects, as well as the training of nationals of the borrowing countries. In addition, the Fund subscribes in the capital of international and regional development institutions.

Today, the Kuwait Fund forms a solid bridge of friendship and solidarity between the state of Kuwait and the developing nations

For more information about the Kuwaiti Fund please visit their website at:

c) Abu Dhabi Fund for Development

is an autonomous institution owned by the government of Abu Dhabi. it was established on July 15th, 1971 to help developing countries to achieve development through assistance in the form of concessionary loans, developments grants and equity participation.

Abu Dhabi Government supports brotherly and friendly nations, particularly the developing ones, by assisting vital projects pivotal for development initiatives, strengthening infrastructure and providing employment and capital.

Since its establishment, ADFD has embarked on partnership with both public and private sectors in 53 countries to support various development projects. These span wide range of sectors including infrastructure, agriculture, electricity and water, transportation, industry, social & healthcare services, tourism & hospitality, telecommunications, and studies & technical support.

ADFD grants and loans, valued at AED 12.5 billion (US$3.542 billion), have funded 199 projects in 53 developing countries. In addition, ADFD has set up 12 joint ventures that operate in various sectors in different geographical locations. ADFD also manages loans and grants initiated by Abu Dhabi government valued at AED10 billion

For more information about the Kuwaiti Fund please refer to their website at:

d) The Saudi Fund for Development

The Saudi Fund for Development was established by Royal Decree No. M/48 dated 14/8/1394 AH corresponding to 1/9/1974 It commenced operations on 18/2/1395 AH corresponding to 1/3/1975.

It is managed by a six - member Board of Directors chaired by the Minister of Finance. The Vice Chairman/Managing Director of the Fund has executive authority and is responsible for implementing decisions of the Board of Directors

The Fund commenced its activities with a capital of SR. 10 billion provided by the Saudi government. The capital has been increased in three phases to its current level of SR. 31 billion.

The Fundís contributions are provided through soft loans. It has no geographical exclusion and it deals directly with governments of the developing countries in financing priority developments projects. The Fund, however, assigns priorities to least developed, low-income countries

For more information about the Kuwaiti Fund please refer to their website at:

Details of Loans from Arab Funds:

a) The Arab Fund for Economical and Social Development:

Amount of the basic loan: $159 million

The amount of the additional loan: $104 million

Merowe Road Loan $14 million

Second Additional Loan $200 million

b) The Kuwaiti Fund for Economical Development:

The total amount of funding: $215 millions

c) Abu Dhabi Fund for Development

Amount of the basic loan: $100 million

The amount of the first additional loan: $50 million

The amount of the second additional loan: $50 million

d) The Saudi Fund for Development

Amount of the basic loan: $150 million

Murabaha through The Saudi Exports Program $50 million

Murabaha through The Saudi Exports Program $50 million

The amount of the additional loan: $60 million

In addition to the funds provided by the Arab Funds, two Arab countries have contributed to the financing of works at Merowe Dam, they are Qatar and the Sultanate of Oman. On 7th July 2002, a funding agreement of $106 million was signed with Sultanate of Oman, and on 25th August 2002 an agreement totaling to $15 million was signed with the State of Qatar

In addition to the Arab funding, the Government of China provided 85% of the funding required for the Transmission Lines and the Substations. The details of their funding is as follows:

Hydro-mechanical loan: $600 millions

Transmission Lines and substations loan: $381,467 million

Amri Agricultural Project loan: $37,722,700.02

Makabrab and Kiheila Agricultural projects loans: $110.662.159.90. The loan will be used in implementing the extension of Makabrab and Kiheila.