Bahrain, Kuwait Fund in $100m deal to finance expansion of power network

The Kingdom and Kuwait Fund for Arab Economic Development has signed an agreement to finance the expansion of the Kingdom’s electricity network. Under the patronage of the Deputy Prime Minister and Chairman of the Ministerial Committee for Financial and Economic Affairs and Fiscal Balance, Shaikh Khalid bin Abdullah Al Khalifa, and in the presence of Shaikh Thamer Jaber Al Sabah, the State of Kuwait Ambassador to the Kingdom of Bahrain, the Kingdom of Bahrain and the Kuwait Fund for Arab Economic Development (KFAED) yesterday signed a $100 million agreement to partially finance the expansion of the Kingdom’s electricity network.

The Minister of Finance and National Economy, Shaikh Salman bin Khalifa Al Khalifa, and the Minister for Electricity and Water affairs, Wael bin Nasser Al Mubarak, signed the agreement on behalf of the Government of Bahrain, while the Kuwait Fund for Arab Economic Development (KFAED) was represented by its Director-General, Abdulwahab Ahmed Al Bader.

The agreement includes financing for a portion of the 400 kV transmission network development project, which comprises the construction of three 220/400 kV substations, and the installation of ground cables to connect existing and new substations. These works will greatly strengthen the Kingdom’s national grid.

Speaking on the occasion, the Minister of Finance and National Economy thanked the State of Kuwait for its great and unlimited support to Bahrain’s development process, praised the historical ties between the two countries and their peoples, and noted the important role played by the KFAED in supporting economic development across the Arab world.

For his part, the Minister of Electricity and Water Affairs noted that this agreement takes place in a context of close Bahrain-Kuwait cooperation, and is aimed at achieving the Kingdom’s longterm plans to secure electricity and water resources that support sustainable economic growth, in line with Bahrain Economic Vision 2030.

The Minister of Electricity and Water Affairs went on to explain that this project will increase the capacity and efficiency of electricity transmission, reduce the occurrence of electricity shortages, and ensure the safe operation of equipment. The Minister added that the project will also contribute to facilitating the exchange of electric power with the GCC networks.