Parliament backs $80m Al Dur water project deal

TDT | Manama

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Parliament has approved a revised financing agreement worth $80 million to enhance the Al Dur water transmission and distribution project, aiming to strengthen the kingdom’s water supply.

The changes, now awaiting review by the Shura Council, update the original terms agreed with the Islamic Development Bank. The revisions amend the framework agreement ratified under Decree-Law No. 36 of 2022.

The Islamic Development Bank will provide financing for the procurement and supply of assets, while the government guarantees the obligations made by the project’s beneficiary.

Goal

The overall goal is to improve water flow from the Al Dur station, ensuring a more secure water future for Bahrain.

Minister of Electricity and Water Affairs, His Excellency Yasser Humaidan, reassured MPs about the financial soundness of the Electricity and Water Authority (EWA).

He stressed that EWA has always fulfilled its financial duties and will meet repayment obligations without burdening the state budget.

“The authority’s loans are paid from its own resources, as required under Article 16 of the Prime Minister’s Decision No. 22 of 2010. This ensures the general budget remains unaffected,” he said.

The updated financing terms maintain the overall cost of the project and repayment schedule, which is spread over 16 years following the project’s expected four-year completion.

Profit margin

Loan repayments will include a profit margin tied to prevailing interest rates. Humaidan added that EWA’s borrowing is strictly for project development and has never been used to cover operational deficits.

“EWA has always kept its commitments and has a strong financial footing,” he added.