Deal signed to amend a project agreement for additional $750m
KFAED finances Oman’s expressway project
KUWAIT CITY, April 20: An Agreement to amend the Project Agreement Number 63/1 was signed today in Rabat, Kingdom of Morocco, between the government of the Sultanate of Oman and Kuwait Fund for Arab Economic Development during the meeting of Arab Financial Institutions and the 46 Annual Meeting of the Board of Governors of the Arab Fund for Economic and Social Development, whereby the fund will allocate an additional US$ 750 million to contribute in financing Al Batinah Expressway Project in the Sultanate of Oman. The project agreement had been signed on 12th November 2014 for financing the said Project in the amount of US$ 1,750,000,000, which will bring the total financing amount of the project to US$ 2,500,000,000.
The grant is considered within the Framework Agreement signed on 27/05/2013 between the government of the Sultanate of Oman and Kuwait Fund for Arab Economic Development for the utilization of a grant amounting to US$ 2.5 billion allocated by the government of the State of Kuwait to the Sultanate of Oman for financing development projects. The government of the State of Kuwait entrusted the administration of the grant to the Kuwait fund. The grant is being made within the framework of the Program of the Gulf Cooperation Council (G.C.C.) for development projects in the member states.
The agreement pertaining to the project was signed on behalf of the Sultanate of Oman by His Excellency Darwish Bin Ismail Ben Ali Al-Balushi, Minister for Financial Affairs whereas Abdulwahab Al-Bader, Director-General of Kuwait Fund for Arab Economic Development, signed the agreement on behalf of the Fund.
The project aims to contribute to the economic and social development of the Sultanate of Oman by meeting the increasing demand on the transport of passengers and goods between the capital Muscat and the borders with the United Arab Emirates. It also contributes to facilitating the traffic in the areas located on the sides of the parallel Batinah coastal road and enhancing the traffic safety in addition to saving of vehicle operating costs and reducing travel time.
The project consists of the construction of a 270-kms asphaltic expressway of eight lanes (four in each direction) including overpasses, in addition to the construction of 250-kms linking roads of four-lanes (two in each direction) connecting adjacent localities to the expressway. The project also includes weighing stations, pedestrian overcrossings, rest areas and the necessary consultancy service.
The total cost of the project is estimated at about US$ 2.8 billion, of which the Kuwait government grant, amounting to US$ 2.5 billion, represents about 89% of the total Project estimated cost, allocated over a period of ten years as of 2012.