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  Does SIDF require any special procedures for project insurance?

The client is obligated to: ● Ensure all project’s assets and items are approved by an insurance company against the risks defined by SIDF ● The insurance policy should stipulate that SIDF is the first beneficiary of all claims for insured losses ● Notify SIDF 30 days prior to the effective date of any amendment or cancellations ● Ensure the total insured financial amount is not less than the SIDF loan

  What other supplement agreements are part of the SIDF loan contract?

1. Agreement on technical consultancy, evaluation, and feasibility study of the industrial project that defines: ● The study’s costs ● Analysis, evaluation, and review of the project’s economic feasibility ● Consultation services And this agreement should be signed before or during the signing of the loan’s contract. 2. Agreement on project follow-up and evaluation that determines SIDF responsibilities, which include: ● Study, follow up and monitor the accounts ● Visit the project’s site to ensure its management’s competence and its compliance with the terms and conditions of the loan’s contract And this agreement should be signed after approving the loan. 3. Arranging debts agreement, in which an additional amount of money is supplied to secure: ● Smooth implementation of the project ● Fulfillment of the financial obligations stated in the loan’s contract Financing could be through a loan from the project’s owners, some of them, or anyone else. While SIDF assures the fulfillment of its loan by requiring that this loan should be: ● A secondary loan ● Subsequent to SIDF loan in terms of priority of repayment ● Should not be repaid to the partners or anyone else before repaying SIDF due installments This agreement should be signed by the three parties: ● The client ● The SIDF ● The lender

  Does SIDF finance additional capital items during the project’s implementation? Or unexpected capital items while applying for the loan?

Applying for financing the additional costs of those new items is permitted, unless additional costs were high then new applications should be filled for separate financing

  Does SIDF approve non-intrinsic modifications of the project during its implementation?

Some alterations during the implementation of the project might be allowed in the following conditions: ● Provide satisfactory justifications to SIDF management ● Prove its significance to the project ● Undergo further examination of its validity by SIDF consultants ● That the additional costs (if any) are acceptable and within allowed range

  What are SIDF's requirements for financing equipment and industrial machinery?

● All equipment and industrial machinery should be recently procured ● Possibility of financing recently bought equipment and machinery that dates back to less than a year from the initial studying stage of filing the application Equipment and industrial machinery that are qualified for financing include: ● Required equipment and machinery for manufacturing and forklifts ● Lifting, lowering, and unloading material machines in addition to the costs of installment and spare parts supply ● Safety and danger protective equipment ● Lab and quality assessment equipment

  What documents are required by SIDF to commence disbursement of the loan?

At the beginning of the project, the investor has to provide: ● Loan payments disbursement request detailing all data of the project’s costs ● Disbursement justifications ● Signing the (Order Note) for the entire payment disbursement amount ● All required guarantees and securities after the legal department’s approval ● Any particular conditions (if available) relating to the disbursement of the loan As for machinery, the following must be provided: ● Importing contract and initial bills ● Letters of Credit from the applicant's bank ● Certificate of final delivery and certificate of origin ● Bill of lading and customs clearance documents As for buildings, the following documents are required: ● Copies of the signed contracts ● Bills of quantity ● Financial statements of Interim Invoice, and receipts of cash payments ● Work progress report

  Does SIDF allow to transfer financing from one project item to another?

If justifiable reasons are provided, and upon SIDF approval, transfers of financing among capital items are permitted

  What is SIDF’s policy towards the project's lands?

● Lands priced at value exceeds SR 50 per square meter will not be financed ● The proposed project location should meet all requirements ● Include the cost of land acquisition in the total cost of the project (if available) ● A land’s infrastructure is considered an essential part of its value ● Financing on rented land is approved however, it requires additional guarantees and securities due to its increased risk ● In the case of industrial land unavailability, implementing the industrial projects on municipality lands is approved if the loan’s applicant had full ownership of the land in addition to obtaining the required permits

  What are the terms set by SIDF on the last disbursement of the final 20% installment of the loan?

The last disbursement goes through essential procedures that include: ● The investor has to provide a detailed Arabic and English list of all projects fixed and existing assets, such as buildings, cars, machinery, and furniture ● Review and examine the list by the Audit Division before referring it to the Legal Department ● Fulfill all industrial safety requirements and environmental obligations

  What are the procedures adopted by SIDF in case of a delay in the loan repayment?

● Remind the client of the repayment’s amount and due date within 30 days ● In case of a repayment delay, an official warning will be sent by SIDF’ CEO within a maximum of 15 days ● Examine and explore possible solutions with the client before taking any legal action