Bahrain King approves Al Dur water project financing deals with IDB, ADFD
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
The financing deals for the second phase development of Al Dur 2 independent power and water producer plant with Islamic Development Bank and Abu Dhabi Fund for Development received His Majesty King Hamad bin Isa Al Khalifa’s approval.
When completed, the plant would generate 1,500 MW of Power based on Combined Cycle Gas Turbine (CCGT) technology and produce 50 million imperial gallons per day (MIGD) of water through Sea Water Reverse Osmosis (SWRO) technology.
Acwa Power has a 60% stake in the project owned by the Electricity and Water Authority. Mitsui of Japan and Almoayyed Contracting Group hold stakes of 30% and 10%, respectively. The project proposed by HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, was approved by the Cabinet.
Deal with IDB
As per Decree-Law (36) of 2022 issued by HM King yesterday, the Islamic Development Bank will finance the second phase of the Water Transmission and Storage Development Project from the Al-Dur Plant. Deal with IDBwas signed on the 4th of July 2022.
With ADFD Separately, HM King also announced ratifying the loan and guarantee agreements signed between the Government of Bahrain and the Abu Dhabi Fund for Development for Al Dur.
The agreements signed on the 7th of July 2022 are also for developing water transmission networks of the plant. The deals come into force upon its publication in the official Gazette.
To improve water supply
According to an earlier report by IsDB, the project aims to improve the transfer of water supply from 744,000 m3/day to 971,000 m3/day to meet the water demand in Bahrain of horizon 2030.
Officials expect the project to benefit about 420,000 people with around 100,000 households. The total cost of the project is US$ 407 million. IsDB had said it would finance US$ 80 million. The report also said that the GCCY has succeeded in mobilising additional resources for the project from the Saudi Development Fund with an amount of US$ 95 million and the Abu Dhabi Fund for Development (ADFD) with an amount of US$ 95.21 million.
The Government of Bahrain will finance the gap of US$ 137.13 million. Later, in July, Abu Dhabi Fund for Development (ADFD) and Abu Dhabi Exports Office (ADEX) announced extending AED337.9 million ($91.9 million) for the project. Under the signed agreements, ADFD will provide a loan of AED150.6 m, while ADEX has committed AED187.32 m.
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