Environmental Sanctity Is Part of Our DNA

The Kuwait Fund for Development is recognized the world over for the financing and technical assistance it extends to large infrastructure projects in developing nations in the Middle East and Africa.

What is less known, is that over its more than six decades in existence, the Middle East’s first international development agency has also been a key player in the fight against negative environmental impacts – and not just in the MENA region, but all over the world.

The River Blindness Control Program in West Africa which started in the 1970s and lasted 30 years, the Aral Sea Water Supply Project in Kazakhstan in the early 2000s, and the Bosten Lake project in China, aiming to preserve the ecosystem of the largest lake in Xinjiang, are just some of the environment-related projects the Fund has financed over its more than six decades of operation.

As the climate threat looms ever larger, the Fund has spread its wings to the Maldives, Vietnam, and even as far as Cuba.

“The protection and improvement of the environment have always been a major concern to the Fund and are critical, prerequisite elements in determining whether the Fund will participate in financing a project in any development sector,” says Dr. Hameed Al Rashidi, Engineering Advisor. “This is natural, given that the rapid economic growth taking place in many developing countries carries a potentially negative impact on the environment and human welfare in those countries. Hence, such growth needs accompanying reforms that carefully scrutinize the environmental impact of each project and ensure all the necessary measures are taken.”

Since its establishment in 1961, the same year the country gained independence, the Kuwait Fund has supported developing countries in improving the well-being of their people. Set up to share its newly discovered oil wealth with its neighbors, the Fund started operations in the Arab world and has since expanded to reach 105 countries worldwide.

During this time, it has disbursed $18.81 billion in financing for infrastructure projects in the transport, communication, energy, agriculture, education, health, water and sanitation sectors via concessionary loans, technical assistance and grants.

The Fund has also adopted the United Nations Sustainable Development Goals (SDGs) in its strategy, especially combating poverty and unemployment.

The Kuwait Fund prioritizes projects that include flexible components and innovative solutions that help preserve the environment and natural resources. At preliminary approval and project appraisal stages, the Fund requires, in addition to technical and economic feasibility studies, an environmental impact assessment report identifying environment-protection measures that need to be adopted at the design, construction and operation stages of the project. 

The Fund’s loan agreements include a special condition requiring the borrowers to take all necessary action for the protection of the environment and to ensure that the project is carried out and operated in accordance with sound ecological and environmental practices.

“The Fund was created to help developing nations stand on their own two feet and help put in place the building blocks necessary for long-term progress,” says Dr. Al Rashidi.

The international community faces great responsibilities due to long-term temperature shifts as a result of climate fluctuations over recent decades, and the natural disasters and crises that may result from these changes, which have worsened and are a continuing threat to humanity and the planet.

“The Kuwait Fund appreciates the efforts made by the international community and global organizations in the context of environmental and climate action, including all initiatives and programs that contribute to mitigating the severity of climate change and adapting to it,” says Dr Al Rashidi.

A stark example of the effects of climate change is the Maldives, whose islands are at risk of being entirely submerged by the year 2100 as global warming causes sea levels to rise. The Kuwait Fund has been involved in a project to construct a three-kilometer breakwater wall made from rock rubble along the eastern coast of Foammulah Island, south of the capital Male, protecting the island from flooding.

In Vietnam, too, the Fund is working to support coastal infrastructure in the face of rising sea levels. It has developed a sea barrier, three river barriers, and a bridge in the Thai Thuy District, one of the provinces most vulnerable to natural disasters, to support the agricultural sector in the region and reduce material and human losses resulting from hurricanes. These improvements will contribute to population stability and encourage investments in the agricultural sector and other related activities, creating additional job opportunities.

In Cuba, the Fund is supporting the construction of 34 small hydroelectric stations across eleven governorates in the country, raising the efficiency of electrical energy generation and supply in remote areas and making them more sustainable to live and work in. The project also includes supporting scientific research and training centers in renewable energies.

Environmental interventions not only prevent migration – they can also support immigration. The Fund is supporting the construction of dams and hydroelectric power stations in eastern Sudan to develop and exploit the water resources available in the region. This will enable increased production of agricultural crops and the provision of clean water, and farmers will be resettled in the project area and be able to avail of permanent job opportunities, alleviating poverty in the region and reducing the need for migration to the cities.

Despite international economic shocks, Kuwait Fund continues its development role.

“As the challenges facing our world evolve, so the Kuwait Fund is also evolving to play a role in helping societies build forward better and achieve the SDGs by 2030,” says Dr. Al Rashidi. “For example, the Covid-19 pandemic has been the latest crisis facing the world, but it won’t be the last, so we continue to be agile in our activities and partnerships to have optimal impact on the most needy people and communities.”