Seychelles and the Saudi Fund for Development (SFD) have signed an agreement for a loan to fund a project of 172 housing units and the reconstruction of La Digue school.

The two agreements were signed on Friday by Seychelles' Minister for Finance, Economic Planning and Trade, Naadir Hassan and the chief executive of the Saudi Fund for Development, Sultan Abdulrahman Al-Marshad.

In his address, Hassan said, "I would like to express my gratitude to the Saudi Fund for Development for the assistance, in financing these two very important projects for Seychelles."

In all, the total funding for the two projects adds up to $25 million, with $15 million going towards the housing projects and the remaining $10 million will be for the La Digue school project.

"I personally visited the school recently, and it was clear that it is not in good condition," said Hassan, who added that investment in education is important as it is always an investment in the future.

On his part, Al-Marshad said that these projects are very important and signify the SFD's engagement to promote sustainable development in small island developing states (SIDS), to improve the standard of living and to contribute towards better socio-economic conditions.

"These projects will have an impact in enhancing the infrastructure in the country, with the housing project set to provide housing for low income tenants, while the re-construction of La Digue school will provide modern education infrastructure to Seychelles," he added.

Before signing the two agreements, the SFD and Minister Hassan, held a bilateral meeting at Liberty House, to discuss other areas of cooperation.

The Saudi Fund for Development was established in 1974 to provide development assistance to developing countries, through the financing of social and infrastructure projects.

The Fund is already assisting Seychelles, an archipelago in the western Indian Ocean. It currently co-funding the construction of the 33KV network for the southern region of the main island of Mahe and has provided a loan of $20 million toward the financing of this project.