The Abu Dhabi Fund for Development and Abu Dhabi Exports Office signed two loan agreements worth Dh338 million ($92m) to finance a water supply network project being developed by Bahrain’s Electricity and Water Authority.
ADFD is committing a loan of Dh150.6m, while Adex, the export-financing arm of the ADFD is providing Dh187.32m, the fund said in a statement on Thursday.
The project, part of Bahrain’s water strategy 2030, aims to increase Al Dour station’s water transmission network capacity during its second phase to 50 million gallons. It will ensure that reserves are equivalent to at least three days of residents' consumption needs.
“The project financed by ADFD will raise the efficiency of water supply, contribute to water security and enhance the sustainability of water resources,” said Mohamed Al Suwaidi, director general of ADFD.
“We are keen to support the development objectives of the government and enable it to achieve water security and sustainability goals.”
Mr Al Suwaidi, who is also chairman of Adex, signed the financing agreemenst in Bahrain with Shaikh Salman Al Khalifa, Bahrain’s Minister of Finance and National Economy, and Yasser Humaidan, the Minister of Electricity and Water Affairs.
Bahrain is one of the first countries where ADFD began its development activity in 1974. The amount of soft loans and government grants provided to Bahrain by ADFD amounts to Dh23.12 billion, which covers 32 projects that accelerated economic momentum in the kingdom, ADFD said.
ADFD, which also manages the Dh9.2bn grant provided in 2013 by the UAE to Bahrain under the GCC Development Programme, said the projects it has funded have “contributed to sustainable economic and social development”.
“The two loan agreements will enable Bahrain to achieve a high-quality infrastructure that ensures sustainability of water resources. This co-operation also enhances the efficiency of water supply networks and supports the integrated strategy for managing water resources,” Mr Humaidan said.
Under the latest agreement, Adex will work closely with UAE companies by facilitating credit lines and financing solutions to Tecton Engineering and Construction, which will undertake the building of the second Al Dour pumping station, said Khalil Al Mansoori, acting director general of Adex.