Kuwait funding DPRK water and sanitation projects
Although the DPRK is doing its best to chase away South Korean investment, the Kuwaiti government is providing Pyongyang with a USD$21.7 million loan to construct water and sanitation facilities.
The Kuwait Fund for Economic Development (KFAED) stated here on Sunday that it will sign a loan agreement with North Korea in a few days which is valued at KD 6.2 million (USD 21.7 million) to help in financiaing a sanitation system project.
In a statement to the media FKAED added the suggested project contributes in improving a the environment and public health by raising the performance of city sewage systems.
With this second loan, KFAED financing to North Korea is to come to KD 12.4 million (USD 43.4 million), going into development projects in water and sanitation sectors. This is in addition to technical assistance of KD 153.5 thousand (USD 537,000).
I am unsure what exactly Kuwait’s play is here. Altruism is well and good, but an unconvincing motive for such a hefty sum of money. The only other narrative that I can imagine is awfully cynical: If these sanitation projects are constructed by Kuwaiti contractors and engineers using Kuwaiti parts and supplies, then international development officials should be aware that the DPRK offers many opportunities to channel development funds into the coffers of supporters back home—you just have to make sure Pyongyang gets its cut.
Does anyone else have a theory?
Read the full story here:
Kuwait News Agency
11/16/2008
November 26th, 2008 at 5:27 pm
Kuwait wouldn hardly be the only country to use its aid programmes in that way - a lot of overseas development assistance takes the form of goods and services from the donor country instead of money. The USAID website used to boast that American businesses were the main beneficiaries of their projects, but eventually that statement was removed when it became too embarrassing.
November 30th, 2008 at 1:53 pm
[…] in the world would the Kuwaiti government be giving a multi-million dollar loan to North […]
December 1st, 2008 at 11:18 am
Is it a little odd that monies are coming from the Kuwait Fund for Arab Economic Development? Is there no Kuwait Fund for International Development? Other than sheer altruism and generosity, the DPRK must have guaranteed some sort of mining or mineral rights to Kuwait.
December 2nd, 2008 at 8:25 am
[…] now? So while the DPRK chases away investment from the South, they solicit more from Kuwait and Singapore (where Chris Hill is due to stop by): North Korean Foreign Trade Minister Ri Ryong […]