The Oman government has signed two loan agreements worth RO138 ($357 million) with Arab Fund for Economic and Social Development (AFESD) to finance several of its development projects in the water and roads sector.

The first agreement worth RO63 million ($163 million) will help finance the 39-km-long Barka-Nakhal road project in the Governorate of South Al Batinah, in addition to a 27-km service road and 36-km Taqah-Mirbat road in the Governorate of Dhofar besides an 18-km-long service road, reporteed Oman Observer.

The second agreement worth RO 75 million ($194 million) is aimed at funding water transport projects from Al Ghubrah station to Al Seeb and lines transferring water from Barka station to the Governorate of Al Dakhiliyah, it stated.

The two loans will be paid back in 30 years with an annual interest of 2.5 per cent, it added.