KFAED signs third additional loan to support GCC power interconnection project

By: Khaled Al-Shammeri RIYADH, Jan 18 (KUNA) -- Kuwait Fund for Arab Economic Development (KFAED) signed a third additional loan agreement worth KD 8 million with the Gulf Cooperation Council Interconnection Authority (GCCIA) to finance the project to enhance the GCC power grid interconnection and link it with the southern power network of the Republic of Iraq.
The agreement comes as part of the Fund's ongoing efforts to support regional projects with a direct impact on Kuwait.
Acting Director General of the Kuwait Fund, Waleed Al-Bahar, said in a statement to KUNA following the signing that the project is among Kuwait's key strategic initiatives, noting that the additional loan reflects the Fund's commitment to supporting electricity security and sustainability.
He added that the Fund's contribution aligns with its keenness to support projects that deliver direct returns to Kuwait, foremost among them strengthening electricity security and enhancing the efficiency and reliability of the national power grid.
Al-Bahar noted that the GCC power interconnection project helps increase the capacity of Kuwait's electricity network to meet growing demand, particularly during peak consumption periods, while also reinforcing power integration among countries in the region.
The project to enhance the GCC power interconnection system is considered one of the most important regional infrastructure projects in the energy sector. It includes the construction of a new interconnection station (Al-Wafra Station), which has entered actual operation within the GCC grid system in the Al-Wafra area of Kuwait, covering an area of around 62,000 square meters.
The project also involves extending 400-kilovolt double-circuit overhead transmission lines over a distance of approximately 255 kilometers to connect the new station with the Al-Fadhili substation in the Kingdom of Saudi Arabia.
The project is expected to generate significant technical and economic benefits for Kuwait, as it will increase the supportive capacity of the national electricity grid by about 3,000 megawatts, enhancing the reliability of power supplies, improving operational efficiency, and supporting the country's economic and social development.
Regionally, the project will also deliver important benefits by supporting the electricity grid in southern Iraq through the provision of stable power supply of no less than 500 megawatts, contributing to improved performance and stability of the network there.
In addition, the project contributes to achieving several UN Sustainable Development Goals, including good health and well-being (Goal 3), quality education (Goal 4), affordable and clean energy (Goal 7), decent work and economic growth (Goal 8), industry, innovation and infrastructure (Goal 9), sustainable cities and communities (Goal 11), and partnerships for the goals (Goal 17).
This additional loan marks the third financing extended by the Kuwait Fund to the project, bringing the total value of its loans to KD 78 million, representing around 29 percent of the project's cost. The Government of Kuwait is also contributing approximately KD 37.5 million, underscoring the Fund's pivotal role in supporting regional infrastructure projects, enhancing energy security, serving Kuwait's strategic interests, and strengthening joint GCC cooperation. (end) kns.aa