Bahrain Moves Forward with KD 70 Million Sheikh Jaber Street Project Financing

TDT | Manama

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The Shura Council is set to discuss on Sunday a report from the Financial and Economic Affairs Committee recommending approval of a draft law to ratify a framework agreement with the Kuwait Fund for Arab Economic Development (KFAED). The agreement aims to finance the second phase of the Sheikh Jaber Al-Ahmad Al-Sabah Street Development Project and is attached to Decree No. (30) of 2025.

The committee confirmed that it recommends approval of the draft law in principle, after reviewing the decision of the Council of Representatives and its attachments, and consulting the Legislative and Legal Affairs Committee, which affirmed the constitutional and legal soundness of the project. The committee also studied the legal and financial notes prepared on the draft law, heard from representatives of the Ministry of Finance and National Economy, and discussed the project’s provisions with legal and financial advisers.

The draft law consists of two articles. The first article ratifies the framework agreement signed on March 23, 2025, while the second article provides implementation provisions. Under the agreement, the project will be financed through seven separate annual loans provided by the Kuwait Fund, each not exceeding KD 10 million, for a total ceiling of KD 70 million. Separate loan agreements will be signed for each installment.

According to the agreement, the borrower may draw from the loans to cover eligible project-related payments, and in some cases, reimburse previously paid amounts. Expenses incurred before March 31, 2024, will only be covered with the fund’s approval. The agreement prohibits using any loan proceeds to pay taxes or fees imposed under Bahraini law. Major project contracts or amendments require the fund’s approval as stipulated in the loan agreements.

The agreement also outlines privileges for the fund, protection of its records, and a dispute resolution mechanism starting with amicable settlement, followed by conciliation, and arbitration if needed. The agreement will come into effect once the borrower provides evidence, including an official legal opinion, that it was executed with proper authorization and ratified according to legal procedures. The fund retains the right to terminate the agreement if conditions for entry into force are not met within 90 days of signing, and the agreement will conclude upon full repayment of loans, interest, and related costs.