The official Kuwaiti News Agency has announced that the Kuwait Fund for Arab Economic Development has signed a fourth loan agreement valued at $102 million to support the development of Bahrain’s electricity transmission networks.
According to the agency, the loan is part of a series of contributions from the Kuwaiti fund aimed at “developing 400 kV electricity transmission networks” in Bahrain.
Representing the Kuwaiti side in the agreement, which is part of the (Financial Balance Program), was Acting Director General of the Fund, Walid Al-Bahar.
The Bahraini side was represented by the Minister of Finance and National Economy, Sheikh Salman bin Khalifa.
In his remarks during the signing ceremony, Al-Bahar emphasized that the project aims to reduce high short-circuit currents for the safe operation of equipment, provide greater flexibility in the network, and ensure the reliable and economical transmission of electrical energy.
Al-Bahar highlighted that the proposed project is expected to contribute to achieving the seventh Sustainable Development Goal (SDG), which seeks to ensure “access to affordable, reliable, sustainable, and modern energy for all,” as well as the 17th SDG, which focuses on partnerships for the goals.
He explained that the loan term is 20 years, including a four-year grace period, with the loan to be repaid in 32 semi-annual installments.
The first installment will be due on the first date that interest or other charges are payable after the grace period.
It’s noteworthy that in October 2018, the Finance Ministers of Kuwait, Saudi Arabia, and the UAE, along with the International Monetary Fund, signed framework arrangements for financial cooperation with Bahrain to support the (Financial Balance Program), aimed at achieving fiscal stability in Bahrain with a support package of $10 billion.
