Kuwaiti for Development Grants the Gulf Cooperation Council Interconnection Authority 200,000 Dinars - Sarmad
The Kuwait Fund for Arab Economic Development signed a grant agreement today, Thursday, with the Gulf Cooperation Council (GCC) Interconnection Authority, valued at 200,000 Kuwaiti dinars (approximately $647,100 US), to finance a feasibility study for interconnecting with power grids outside the GCC system.
In a press release, the Fund stated that the study aims to explore opportunities to expand the scope of GCC power interconnection to include power networks in neighboring countries, thereby contributing to enhanced electricity exchange and supporting regional cooperation in the energy sector. This will be achieved by assessing the electricity needs of neighboring countries and evaluating the technical and economic feasibility of interconnecting with them.
The Fund added that the study will identify future expansion phases for the interconnection network, select the priority phase, and study available alternatives to determine the most suitable option based on technical and economic criteria.
It clarified that the study includes preparing a technical, economic, and environmental assessment of the proposed project, covering its key components, costs, implementation methods, and expected timeline. It also involves studying the economic and social benefits that the project could deliver to member states and countries connected to the GCC system.
The study also includes an operational assessment of the GCC system in conjunction with national networks in neighboring countries, as well as a preliminary environmental and social impact assessment, with appropriate measures identified to mitigate any potential negative effects.
The Fund noted that it had previously provided three loans to the GCC Interconnection Authority to help finance the project to enhance the GCC power interconnection system and connect it to the southern Iraq grid, with a total value of 78 million dinars (approximately $252.3 million US).
It highlighted that a key component of these projects is the Al-Wafra Power Station in Kuwait, which represents one of the main elements of the GCC power interconnection system. It holds particular importance due to its role in supporting the reliability of Kuwait’s power grid and enhancing its capacity to handle high loads by enabling electricity exchange and utilizing available surpluses from countries within the interconnection system.
The grant agreement was signed by Rashid Al-Bader, Acting Managing Director of the Kuwait Fund for Arab Economic Development, and Ahmed Al-Ibrahim, Chief Executive Officer of the GCC Interconnection Authority.
