KUWAIT: The Kuwait Fund for Arab Economic Development (KFAED) and the Bahraini government signed a loan agreement on Sunday, valued at KD 10 million (approximately $32.4 million), to finance the second phase of the Sheikh Jaber Al-Ahmad Al-Sabah Highway development project. The initiative aims to bolster Bahrain’s economic and social development by enhancing a critical transportation artery in the capital.

The project aligns with key sustainable development goals, including infrastructure improvements, urban sustainability, and efforts to curb carbon emissions from traffic congestion. As part of the plan, the highway will be expanded from three to four lanes in each direction over a stretch of 11 kilometers, alongside the construction of five bridges. The total project cost is estimated at $404.4 million, with KFAED contributing approximately 8 percent of the funding.

KFAED, Bahrain sign $32.4 million loan deal for Sheikh Jaber Al-Ahmad Highway. - KUNA photos

Under the agreement, the 20-year loan includes an eight-year grace period and will be repaid in 24 semi-annual installments. The loan carries an interest rate of three percent per annum, in addition to a 0.5 percent annual fee to cover administrative and service costs. This marks the 22nd loan extended by KFAED to Bahrain, underscoring the strong economic cooperation between the two nations. The agreement was signed by KFAED Acting Director General Waleed Al-Bahar and Bahrain’s Minister of Finance and National Economy Sheikh Salman bin Khalifa, in the presence of Kuwait’s Ambassador to Bahrain Sheikh Thamer Jaber Al-Ahmad Al-Sabah. — KUNA