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21:04 GMT
MANAMA, Nov 12 (KUNA) -- Kuwait Fund for Arab Economic Development signed on Wednesday a loan agreement with the Government of Bahrain, valued at KD 31.25 million (about USD 100 million) to finance the overhauling of 220 kV and 66 kV electricity transmission networks.
The agreement, which comes within the framework of the Financial Stabilisation Programme, was signed in Bahrain by KFAED Acting Director General Waleed Al-Bahar and Bahraini Minister of Finance and National Economy Sheikh Salman bin Khalifa, in the presence of the Chargأ© d'Affaires of the Kuwaiti Embassy in Manama, Counselor Yousef Al-Banawan.
In a press release, the Fund pointed out the project aims to strengthen and develop the 220 kV and 66 kV electricity transmission networks to meet the increasing demand for electricity in the Kingdom of Bahrain.
The project encompasses the construction of three 220/66 kV substations and seven 66/11 kV substations as well as the expansion of Al-Dur substation, the Fund stated.
It also includes supplying and installing 220/66 kV underground cables to interconnect the new substations and the existing Sahel Al Zallaq substation to the national electricity grid, along with providing auxiliary, communication, control, and monitoring equipment for the new substations and Sahel Al Zallaq and Sadad substations. The loan also covers consultancy services.
The KFAED noted the project's total costs, based on signed and completed contracts and including taxes, are estimated at approximately KD 63.8 million (nearly USD 207.7 million), Of which, about KD 42.1 million ( or USD 137 million), were in foreign currency.
This is the fifth loan from the Fund to finance the 220 kV and 66 kV electricity transmission network development project in Bahrain and the 23rd loan offered to Bahrain.
The Fund has previously extended 22 loans to Bahrain with a total value of KD 281 million, (about USD 915 million). (end)
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