Manama: The Kuwait Fund for Arab Economic Development (KFAED) and the government of Bahrain have signed a loan agreement valued at KD 10 million (approximately USD 32.4 million) to support the second phase of the Sheikh Jaber Al-Ahmad Al-Sabah Highway development project. This initiative aims to bolster Bahrain's social and economic progress by advancing a key transportation route in the capital. According to Kuwait News Agency, the project is expected to contribute to achieving sustainable development goals by enhancing infrastructure, promoting the sustainability of local cities and communities, and reducing carbon emissions from traffic. The plan involves expanding the highway from three to four lanes in each direction over an 11-kilometer stretch and constructing five bridges. The total cost of the project is estimated at USD 404.4 billion, with KFAED financing approximately 8 percent of this amount. Under the terms of the agreement, the 20-year loan includes a grace period of eight years and will be re paid in 24 semi-annual installments. The interest rate is set at three percent per annum, with an additional 0.5 percent per annum fee for administrative costs and services. This loan marks the 22nd financial assistance provided by KFAED to Bahrain. The agreement was signed by Acting Director General of KFAED Waleed Al-Bahar and Bahrain's Minister of Finance and National Economy Sheikh Salman bin Khalifa, with Kuwait's Ambassador to Bahrain Sheikh Thamer Jaber Al-Ahmad Al-Sabah present at the signing ceremony.
