ADFD, ADEX sign two deals worth Dhs337.9 million to finance Bahrain project

Abu Dhabi Fund for Development (ADFD) and the Abu Dhabi Exports Office (ADEX) signed two loan agreements with the Electricity and Water Authority in Bahrain to finance a water supply network project.

Under the agreements, ADFD has committed to provide a loan of Dhs150.6 million, and ADEX to provide a loan of Dhs187.32 million.

The project aims to enhance the capacity of the water transmission networks within the second phase of Al Dour station to 50 million gallons to ensure reserves of at least three days’ consumption average to cater to the everyday needs of the residents.

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

The signing ceremony took place in Bahrain where the agreements were signed by Mohamed Saif Al Suwaidi, Director General of Abu Dhabi Fund for Development and Chairman of the Executive Committee of the Abu Dhabi Exports Office, Shaikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy, and Yasser bin Ibrahim Humaidan, Minister of Electricity and Water Affairs. The ceremony was attended by Adel Abdulla Al Hosani, Director of Operations Department in ADFD, Khalil Fadhl Al Mansoori, Acting Director General of Abu Dhabi Exports Office, and several officials from both countries.

Mohamed Saif Al Suwaidi said: “The two loan agreements signed with the Electricity and Water Authority in the Kingdom of Bahrain 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. 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.”

Yasser Bin Ibrahim Humaidan, Minister of Electricity and Water Affairs, praised the UAE for giving a steady support to Bahrain, as he highlighted ADFD’s important role in driving socioeconomic prosperity in developing countries. He called the relations between Bahrain and the UAE a unique model of bilateral relations.

“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,” he said.

For his part, Khalil Al Mansouri, said: “Our new strategic partnership with the Kingdom of 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 Dour 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. As part of this project, we will also support Jindal SAW Gulf, a leading supplier of the finest 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.”

Bahrain is one of the first countries where ADFD began its development activity in 1974. The amount of soft loans and government grants provided to Bahrain is Dhs23.12 billion, which covered 32 projects in vital sectors. These projects contributed to sustainable economic and social development of the Kingdom. The Fund also manages the Dhs 9.2 billion grant provided in 2013 by the UAE to Bahrain within the GCC Development programme.

Abu Dhabi Fund for Development (ADFD) is a leading national financial entity owned by the Abu Dhabi government. It was established in 1971 with an aim to help developing countries strengthen their economies by providing concessionary loans for development projects as well as through long-term investments and direct contributions. In addition to managing development grants given by the Abu Dhabi government, ADFD has adopted a policy of supporting the national economy by driving private-sector investments, financing national exports and enabling exporters to expand into global markets, thus enhancing the competitiveness of the UAE economy.