Two agreements were signed between the Islamic Development Bank (IsDB) and the Republic of Yemen to provide US$21.2 million, to finance two water and roads projects.

The deal was signed Saturday evening, by Dr. Ahmad Mohamed Ali, President of IsDB Group, and Dr. Abdul Karim Ismail Al-Arhabi, Yemen's Deputy Prime Minister for Economic Affairs and Minister of Planning and International Cooperation. This took place in Washington D.C, on the sidelines of the annual meetings of the World Bank and IMF.

The first project is to construct two all-year accessible roads: the 27.3 km Assoha-Suq in Lahaj Province, and the 24 km Al-Berain-AlQadaha in Taiz. IsDB will provide about 80 precent of the total cost of US$13.89 million, while the Government of Yemen will provide the rest. The 3-year project aims to link the rural areas of Yemen all year round, as part of the network of rural roads that will enable citizens to have wide access to markets and service centers. The loan is extended under the Islamic Solidarity Fund for Development (ISFD), which became operational earlier this year.

The second project is to help improve health services and water supplies to some 36,000 inhabitants in Hawtah city in Lahaj Province, by 2015, through digging wells, water reservoirs, networks and other facilities. IsDB is providing US$10 million of the US$13.17 million project, while the rest is covered by the Government of Yemen and the British Aid.