Bahrain and KFAED sign $100m financing deal for 400kV electricity project
Kuwait Fund for Arab Economic Development to partly finance construction of three substations, ground cable installation
In a bid to partially finance the expansion of Bahrain’s electricity network, Kuwait Fund for Arab Economic Development (KFAED) will provide a partial financing of $100m (BHD37.7m) for a portion of the 400kV transmission network development project.
As part of an agreement inked between Bahrain and KFAED, the financing will be used for the construction of three 220/400kV substations and installation of ground cables to connect new and existing substations, the Bahrain News Agency reported.
The agreements were signed by Bahrain’s minister of finance and national economy, HE Shaikh Salman bin Khalifa Al Khalifa, and the minister for electricity and water affairs, HE Wael bin Nasser Al-Mubarak, with the director-general of KFAED, HE Abdulwahab Ahmed Al-Bader.
Al-Mubarak said that the agreement was aimed at achieving the kingdom’s long-term plans to secure electricity and water resources that support the country’s sustainable economic growth, in line with Bahrain Economic Vision 2030.
He added that the project will increase the capacity and efficiency of electricity transmission, reduce the occurrence of electricity shortages, and ensure safety on equipment operations.
According to Al-Mubarak the project will facilitate the exchange of electric power with the GCC networks.