Kuwait lends Jordan $68m to finance power plant project

9 May 2005 – Kuwait and Jordan signed a loan and a loan guarantee agreements to finance the construction of a 300 MW power generation plant in Jordan.

Based on the agreements, signed by the Director General of the Kuwait Fund for Arab Economic Development (KFAED), Bader Al-Hmaidi, and Jordanian officials, Kuwait will provide Jordan with KD 20m ($68.4m).

The total cost of the construction of the Al-Kherba Al-Samra power generation plant could soar to up to 158m Jordanian dinars, or $ 223m.

Kuwaiti Foreign Minister, and KFAED Chairman, Sheikh Dr Mohammad Sabah Al-Salem Al-Sabah and Jordanian Finance Minister Dr Mahammad Abu-Hammour endorsed the loan guarantee agreement.

Jordan is paying the loan back on 34 bi-annual instalments, with an interest rate of four per cent. The Jordanian government enjoys a four-year grace period. With this new loan to Jordan, the number of KFAED loans given to Arab kingdom goes up to 21, worth KD 94.9 mm ($ 324.6m).