Saudi Arabia on Monday agreed to provide a loan of 25 million US
dollars to assist an education project in Tianshui City, northwest
China's Gansu province.
The loan was offered by the Saudi Fund for Development (SFD), a
fund chaired by Saudi Arabia's Minister of Finance.
A loan contract was signed in Beijing on Monday between the
Chinese Vice Minister of Finance Li Yong and the Director-General
of the SFD Yousef I. Al-Bassam.
According to the contract, the SFD will offer the loan at an
annual interest rate of 3 percent with a term of 20 years,
including a five-year grace period.
The fund will be used to build classrooms, laboratories,
libraries, gymnasiums and student apartments for three schools in
Tianshui.
China began cooperation with the SFD in 2002. So far, the SFD
has provided preferential loans totaling 122 million US dollars for
five education projects in China.
(Xinhua News Agency January 8, 2008)
