Business & Finance Club - Manama : Bahrain has secured a BD19.8 million ($52.5 million) deal with the Kuwait Fund for Arab Economic Development (KFAED) to upgrade its electricity network.

'The loan will cover part of the 220kV and 66kV transportation development grid as part of a four-year-project launched in 2007,' said Works Minister in charge of Electricity and Water Authority (EWA) Fahmi Al Jowder.

Ten 220kV substations will be constructed and six others will be upgraded and expanded. Under the scheme, 1,150 km of cables will be provided and 29 66kV substations built.

The EWA also plans to upgrade and expand five 66kV substations and provide a further 700km of 66kV cables.

'The EWA is stepping up efforts to upgrade the network in line with the directives of His Majesty King Hamad and his wise government, led by His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa,' he said.

Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa stressed the fast-tracked efforts to secure funding for the grid, citing deals signed with the Saudi Development Fund, Arab Fund for Economic and Social Development, Islamic Development Bank and Abu Dhabi Development Fund.

'We have succeeded in securing BD226.3m in soft loans to finance this vital project,' he said.

KFAED director-general Abdulwahab Ahmed Al Bader hailed the growing co-operation between Bahrain and Kuwait.