Construction

KFAED signs $100 million loan agreement with Bahrain

The funding covers a portion of the 400 kV transmission network development project in Bahrain

Kuwait Fund for Arab Economic Development (KFAED) has signed a $100 million loan agreement with Bahrain to help finance the development of a 400 kV transmission network in the kingdom. The deal was signed under the patronage of Shaikh Khalid bin Abdullah Al Khalifa, the Deputy Prime Minister and Chairman of the Ministerial Committee for Financial and Economic Affairs and Fiscal Balance.

According to a report from the Bahrain News Agency (BNA), the agreement includes financing for a portion of the 400 kV transmission network development project in Ras Legrain area besides the construction of 220/400 kV substations in Hidd, Umm Al Hassam and Riffa areas of the kingdom.

It also covers the installation of ground cables for connecting existing and new substations. These will greatly strengthen the kingdom’s national grid and also contribute to achieving sustainable development goal (SDG No 7) on attaining clean energy at affordable prices, the report stated.

Shaikh Salman bin Khalifa Al Khalifa, minister of Finance and National Economy highlighted the historical ties between the two countries and their peoples, and also pointed out the important role played by the KFAED in supporting economic development across the Arab world, while also commending Kuwait for its continuous support to Bahrain’s development process.

Abdulwahab Ahmed Al Bader, director general for KFAED said that it is administering grants provided by Kuwait’s government worth $1.5 billion, under the framework of the GCC Development Program.

He stated that the Fund’s loan covers about 10.5 per cent of the project’s total cost, stressing that the project was financed under loan agreement No. 1/62 of $261 million. The total contribution of the fund to the project is equivalent to about KD140.8 million.

Meanwhile, Wael bin Nasser Al Mubarak, minister for Electricity and Water Affairs said that the project will also contribute to facilitating the exchange of electric power with the GCC network.

0 0 vote
Article Rating

Comments

Most Popular

To Top