By John Lee.
The Kuwait Fund for Arab Economic Development (KFAED) has said it will provide two KWD 35 million (USD 224 million) loans to support the Gulf Electricity Interconnection System Project, which will export electricity from Saudi Arabia to Kuwait and Iraq.
According to a press release from the Fund, the financing constitutes 40 percent of the total cost.
These loans have a 12-year term with a 3-year grace period, repaid in 18 semi-annual installments at a 15.5 percent annual interest rate.
It adds:
"Kuwait stands to gain immensely from this project, with its network capacity boosted by approximately 3,000 megawatts (MW), optimizing operational efficiency. Additionally, the GCCIA will be able to supply 500 MW of electricity to southern Iraq."
The project involves constructing a 300-kilometer 400-kV double-circuit overhead transmission line connecting Saudi Arabia's Al-Fadhili converter station to Kuwait's Al-Wafrah station. It also includes converting an existing double-circuit line between Al-Fadhili and the Al-Zour of Kuwait into a new 25-kilometer 400-kV double-circuit line connecting Al-Fadhili and Al-Wafrah.
Furthermore, the project entails expanding the Al-Fadhili station with electrical circuit breakers to link it to Al-Wafrah, as well as extending overhead lines from Al-Wafrah to Sabah 3 and Sabah 4 stations to integrate with Kuwait's national electrical network.
(Source: Kuwait Fund for Arab Economic Development)
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