A loan agreement for KD35mn ($115.5mn) was signed between the Kuwait Fund and the Gulf Cooperation Council Interconnection Authority (GCCIA) to participate in the financing of the development of the GCC Interconnection System and connection to the South of Iraq Network project.
The loan agreement was signed in the Kuwait Fund Headquarters by Ahmed bin Ali al-Ibrahim, CEO of GCCIA, and Marwan Al-Ghanem, director general of the Kuwait Fund, in the presence of Nayef Falah M. Al-Hajraf, secretary general of the Cooperation Council for the Arab States of the Gulf.
The project is aimed to increase the capacity and efficiency of the electricity networks of the member states of the Authority. The project in Iraq will increase capacity in the southern part of the country by 500 MW.
The project consists of the construction of a new connecting plant with the Gulf connecting system in Al-Wafra city of the State of Kuwait on an area of about 62,000 square meters and the extension of 500 kV dual-circle transmission from the Al-Wafra station to Al-Faw city station in southern Iraq with a length of about 295km.
The project also includes the supply and installation of cutters, electrical reactions and measurement and control systems for the construction and expansion of conversion stations in the cities of Al-Wafra, Al-Fathaili and Al-Faw. The project also includes the addition of new electrical installations to strengthen the network connected to Al-Wafra station to enable it to absorb electrical capacity of approximately 2,500 MW as well as to strengthen the grid in southern Iraq associated with Al-Faw station to enable it to absorb an electrical capacity of at least 500 MW. The Project will also consist of consultancy services for the preparation of environmental and social studies and supervision of implementation.
The Kuwait Fund Loan referred to represents the first loan provided by the Fund to the Interconnection Authority GCCIA, for the Gulf electrical interconnection system and connecting with the southern Iraq network. The Fund also intends to provide a second loan to finance the project under the terms to be agreed in a second Loan Agreement.
