Shafaq News/ Kuwait's Fund for Economic Development on Thursday signed a multimillion loan agreement with the Gulf Cooperation Council Interconnection Authority (GCCIA) to fund enhancing the GCC interconnection grid and plugging southern Iraq's power grid in.

The Director-General of the Kuwait Fund for Arab Economic Development, Marwan al-Ghanem, and GCCIA Chief Executive, Ahmad bin Ali al-Ibrahim, signed the 35 million kuwaiti dinar, equivalent to $115 million, agreement under the auspices of GCC Secretary-General, Nayef al-Hajraf.

"Kuwait stands to gain the most from the treaty. The absorptive capacity of the Kuwaiti national power grid will be fed with additional 2,500 megawatts which will boost its reliability and operational capacity," al-Ghanem said, "the power grid of southern Iraq will be fed with no less than 500 megawatts to meet a portion of its demands, improve the operational capacity and stability of the national network."

"The project funded by two loans, each valued at 35 million dinars, encompasses constructing a new interconnection plant inside the grid of the GCC grid in al-Wafra complex in Kuwait, extending 295 kilometers long 400 KV double caliber tie lines from al-Wafra to al-Faw plants in southern Iraq," he said.

GCCIA Chief highlighted the benefits of the interconnection for both Iraq and the GCC states, indicating that it contributes to achieving the global objectives of sustainable development.

Al-Ibrahim said that the project contributes to achieving "objectives three (Ensure healthy lives and promote well-being for everyone of all ages), four (Ensure inclusive and fair education of good quality and promote lifelong learning for everyone), seven (Ensure access to affordable, reliable, sustainable and modern energy for everyone), eight (Promote continuous, inclusive and sustainable economic growth, full and productive employment, and decent work for everyone), nine (Build resilient infrastructure, promote inclusive and sustainable industrialization and promote innovation), eleven (Make cities and settlements inclusive, safe, flexible and sustainable), and seventeen (Strengthen implementation tools and revitalize the Global Partnership for Sustainable Development)."