(MENAFN- Kuwait News Agency (KUNA)) The Arab Fund for Economic and Social Development (AFESD) signed an agreement with the Yemeni government Monday to finance reconstruction projects, build a hospital and renovate a highway. Kuwait-based AFESD will extend USD 203 million to rebuild the devastated areas in southern Abyan province, build an education hospital in Eden University and expand the Sanaa-Hudaida Highway. In Abyan, the funding will help rebuild infrastructure of public and private facilities, help victims of the conflict, renovate technical, industrial and agricultural institutes. The AFESD will also contribute to renovating schools, the Education College in Abyan University and other facilities, local media reported. The funding will also be used to build the education hospital in Eden University, as well as expanding a highway linking Sanaa and Hudaida. Yemeni deputy minister of planning Dr. Mathar Abbasi commended the fund's contributions to development projects in the country.