The Kuwait Fund for Arab Economic Development (KFAED) announced today the signing of a second loan agreement with the Gulf Cooperation Council Interconnection Authority (GCCIA) valued at 35 million Kuwaiti Dinars ($112 million).

The funds will be allocated to the development of the GCC-Iraq interconnection project.

The Gulf Electricity Interconnection Expansion Project (GEIP), expected to be fully implemented by 2026, encompasses the construction of a new converter station in Kuwait's Al-Wafra area, spanning approximately 62,000 square metres.

Additionally, the project involves the expansion of 400 kilovolt (kV) overhead transmission lines connecting the new Al-Wafra station to Saudi Arabia's Al-Fadhili converter station, a distance of 225km and Iraq's Al-Faw station in the south, a distance if 295km.

To enhance the capacity and efficiency of the interconnection, the project will include the installation of cutting-edge equipment such as circuit breakers, reactors, and advanced control systems at Al-Wafra, Al-Fadhili and Al-Faw converter stations.

Furthermore, the electrical networks in Al-Wafra and Al-Faw will be upgraded to accommodate a transmission capacity of 3,000 megawatts (MW) and 500 MW, respectively.

GCCIA is currently undertaking three major projects to strengthen connections with Kuwait, the UAE, and Oman, in addition to the Iraq interconnection, with a combined investment exceeding $1 billion.

The Al-Wafra station is expected to be commissioned into service by the end of 2024.

In March 2022, Kuwait Fund had signed the first loan agreement worth KWD35 million ($115 million) to help finance the GEIP.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.