Two major UAE entities - Abu Dhabi Fund for Development (ADFD) and Abu Dhabi Exports Office (ADEX) - have signed loan agreements worth AED338 million ($92 million) with Bahrain's Electricity and Water Authority (EWA) to finance a key water supply network project in the kingdom.

 

As per the deal, ADFD will provide a loan of AED150.6 million, while ADEX will offer AED187.32 million.

 

The project aims to enhance the capacity of the water transmission networks within Phase Two of Al Dur station development to 50 million gallons to ensure reserves of at least three days’ consumption average to cater to the everyday needs of the kingdom's residents, said a statement from ADFD.

 

Apart from drinking water supply, the station will serve construction, investment and industrial projects, thereby supporting EWA’s water strategy until 2030, which aligns with the United Nations’ sustainable development goals (SDGs).

 

"These loan agreements signed with EWA demonstrate the depth of the brotherly relations between the UAE and Bahrain and the desire of our governments to maintain the strong bonds so both countries can work towards fulfilling each other’s aspirations and serving common interests," stated Mohamed Saif Al Suwaidi, Director General of ADFD and Chairman of the Executive Committee of ADEX after signing the deal with Shaikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy, and Yasser bin Ibrahim Humaidan, Minister of Electricity and Water Affairs at a special ceremony that took place in Bahrain.

 

The ceremony was attended by Adel Abdulla Al Hosani, Director of Operations Department in ADFD, Khalil Fadhl Al Mansoori, Acting Director General of ADEX and several officials from both countries.

 

Al Suwaidi pointed out that the project financed by ADFD will raise the efficiency of water supply, contribute to water security and enhance the sustainability of water resources. 

 

"We are keen to support the development objectives of the Government of Bahrain and enable it to achieve water security and sustainability goals," he added.

 

Humaidan, while lauding the UAE for its steady support to Bahrain, said: "The cooperation between the two countries in various fields articulates the desire of the wise leadership in both countries to support common interests and advance bilateral relations. The two loan agreements will enable Bahrain to achieve a high-quality infrastructure that ensures sustainability of water resources."

 

"This cooperation also enhances the efficiency of water supply networks and supports the integrated strategy for managing water resources," stated the minister.

 

According to ADFD, Bahrain was one of the first countries where the Abu Dhabi group began its development activity in 1974. The amount of soft loans and government grants provided to the kingdom stands at AED23.12 billion, which covered 32 projects in vital sectors. 

 

Al Mansouri hoped that the new strategic partnership with Bahrain will help drive the development of national exports and boost commercial and economic activities in both countries. 

 

"Through our latest loan agreement, ADEX will work closely with Emirati companies by facilitating credit lines and financing solutions to Tecton Engineering and Construction that will undertake the construction of the second Al Dur pumping station including two tanks, each with a capacity of 20 million gallons, in addition to civil, mechanical and electrical works, along with the installation of the latest communication and control systems," he explained. 

 

"As part of this project, we will also support Jindal SAW Gulf, a leading supplier of pipes and fittings ranging from 1200 mm to 800 mm in diameter. At ADEX, we seek to enable Emirati companies to identify promising opportunities and expand and compete in regional and global markets," he added.-TradeArabia News Service