BEIRUT, 25th March, 2017 (WAM) -- The Kuwait Fund for Arab Economic Development (KFAED) has offered Lebanon a loan worth US$ 36.9 million to provide the country with a steady supply of water used for consumption and irrigation.

The agreement was co-signed on Saturday by KFAED's Director-General Abdulwahab Al-Bader, and the President of the Lebanese Council for Development and Reconstruction Nabil Al-Jassar, according to Kuwait News Agency, KUNA.

Speaking to KUNA after the deal was sealed, Al-Bader said that the loan will fund efforts to deliver an adequate supply of water to the Lebanese town of Bsharri, where residents have long suffered from a dearth of fresh water.

Moreover, he noted that the water will be instrumental in boosting local agricultural production, which in turn, will help buoy the Lebanese economy.

The KFAED Director General added that the loan will also fund a project to build 11 tube wells with a production capacity of 10,000 cubic meters per day, to ensure a sufficient supply of water.

On the loan, he said that it will be paid over a 25-year timeframe with yearly installments to cover the expenses of the projects.

Copious amounts of Kuwaiti financial aid have trickled into Lebanon over the years to finance development projects in the country.

Copyright Emirates News Agency (WAM) 2017.