Kuwait city: Kuwait Fund for Arab Economic Development (KFAED) has signed a third additional loan agreement worth KD 8 million with the Gulf Cooperation Council Interconnection Authority (GCCIA) to finance enhancements to the GCC power grid interconnection and link it with Iraq's southern power network.
According to Kuwait News Agency, this agreement is part of the Fund's efforts to support regional projects with a direct impact on Kuwait.
Acting Director General of KFAED, Waleed Al-Bahar, stated that the project is among Kuwait's key strategic initiatives, emphasizing the Fund's commitment to electricity security and sustainability. The additional loan underscores the Fund's dedication to projects offering direct returns to Kuwait, particularly in strengthening electricity security and enhancing national power grid efficiency.
Al-Bahar indicated that the GCC power interconnection project boosts Kuwait's electricity network capacity to meet increasing demand, especially during peak periods, while also promoting power integration in the region. The project is a critical regional infrastructure initiative in the energy sector, featuring the construction of the Al-Wafra Station, which is operational within Kuwait's GCC grid system.
The project involves extending 400-kilovolt double-circuit overhead transmission lines about 255 kilometers to connect the new station with the Al-Fadhili substation in Saudi Arabia. This initiative is expected to bring significant technical and economic benefits to Kuwait by increasing the national grid's capacity by approximately 3,000 megawatts, thus enhancing power supply reliability and operational efficiency.
Regionally, the project will provide substantial benefits by supporting southern Iraq's electricity grid with a stable power supply of at least 500 megawatts, improving network performance and stability. Additionally, it contributes to achieving several UN Sustainable Development Goals, including affordable and clean energy, decent work, economic growth, and sustainable communities.
This third additional loan brings KFAED's total contribution to the project to KD 78 million, around 29 percent of its total cost. The Government of Kuwait is also contributing KD 37.5 million. This underscores the Fund's pivotal role in supporting regional infrastructure, enhancing energy security, serving Kuwait's strategic interests, and strengthening GCC cooperation.