KUWAIT: The Kuwait Fund for Arab Economic Development (KFAED) signed a third additional loan agreement worth KD 8 million with the GCC Interconnection Authority to contribute to financing the project to enhance the GCC electrical interconnection system and connect it to the southern Iraqi grid. This comes within the framework of its ongoing efforts to support regional projects with a direct impact on the State of Kuwait. Acting Director General of KFAED, Waleed Al-Bahar, confirmed in a statement to KUNA after the signing that the project is considered one of the important strategic projects for Kuwait, noting that the additional loan reflects the Fund’s commitment to supporting the security and sustainability of electricity.
Al-Bahar added that this contribution comes within the framework of the Fund’s keenness to support projects that generate direct returns for Kuwait, foremost among them enhancing electricity security and raising the efficiency and reliability of the national grid. He stated that the GCC electrical interconnection project aims to increase the capacity of the Kuwaiti grid to meet growing demand, especially during peak consumption periods, in addition to enhancing electrical integration among the countries of the region.
The project to enhance the GCC electrical interconnection system is considered one of the most important regional infrastructure projects in the energy sector, the project consists of the construction of a new interconnection station (Al-Wafra Station), which has become operational within the GCC Interconnection System in the Al-Wafra area of Kuwait, covering an area of approximately 62,000 square meters.
KFAED signs a third additional loan agreement worth KD 8 million with the GCC Interconnection Authority.
This is in addition to the extension of approximately 255 kilometers of 400 kV double-circuit overhead transmission lines to connect the new station to the Al-Fadhili substation in Saudi Arabia. The project yields significant technical and economic returns for Kuwait, as it will contribute to increasing the supporting capacity of the Kuwaiti electricity grid by approximately 3,000 MW, thus enhancing the reliability of electricity supply, improving the operational efficiency of the grid, and supporting the country’s economic and social development.
The project also provides important regional benefits by supporting the electricity grid in southern Iraq, which will be supplied with a stable power capacity of at least 500 MW, contributing to improved performance and stability of the Iraqi electricity network. Furthermore, the project contributes to supporting and achieving several of the United Nations Sustainable Development Goals, including promoting good health and well-being (Goal 3), supporting quality education (Goal 4), and providing affordable, clean, and sustainable energy (Goal 5). Promoting decent work and economic growth (Goal 8), supporting industry, innovation, and infrastructure (Goal 9), building sustainable cities and communities (Goal 11), and strengthening partnerships for the Sustainable Development Goals (Goal 17).
This additional loan is the third provided by the KFAED for this project, totaling KD 78 million, representing approximately 29 percent. The Kuwait government is contributing approximately KD 37.5 million, underscoring the Fund’s pivotal role in supporting regional infrastructure projects, enhancing energy security, serving the strategic interests of the State of Kuwait, and supporting joint Gulf cooperation. — KUNA
