Shura set to discuss $200mln Jasra power loan agreement

TDT | Manama

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A $200 million loan agreement for a new 400 kV power station in Jasra will go before the Shura Council on Sunday, as members consider a draft law to ratify Bahrain’s financing deal with the Islamic Development Bank.

The draft law covers three documents: a framework agreement, an agency agreement and a guarantee agreement, all signed on 9 September 2024.

Together, they set the terms for a funding arrangement aimed at supporting the Electricity and Water Authority’s long-term infrastructure plans.

The Bank is to provide $200 million, which accounts for around 43 per cent of the project’s estimated cost of $464.97 million.

Sources

The rest is expected to come from other sources, including possibly the Saudi Fund for Development or the Authority’s own budget.

The loan is structured over 20 years, with a three-year preparation phase followed by seventeen years of repayments.

Although the project has already been initiated, no funds have yet been drawn, so the financing term has not officially begun.

Growing demand

The Jasra station is part of a broader effort to reinforce Bahrain’s electricity grid, which is under increasing strain due to growing demand.

The new facility is expected to ease pressure on the existing network, improve transmission performance and support regional links through the GCC electricity connection.