BAHRAIN is seeking $1.3 billion from regional financing agencies to upgrade the Gulf state’s power and water network over the next 10 years.

“We’re seeking soft loans from funding agencies within the region,” said an official at Bahrain’s Electricity and Water Authority.
He said the authority is seeking low-interest loans from funds financing infrastructure projects such as the Islamic Development Bank or the Arab Fund for Economic and Social Development (AFESD).
Bahrain’s cabinet last month approved the projects worth a total BD500 million ($1.32 billion), BD320 million ($848 million) of which would go to electricity projects and BD180 million ($477 million) into water projects.
The official said companies awarded work under the programme, which includes the construction of power substations and laying underground cables, could also offer to provide financing. The programme partly serves to integrate the $2.1-billion Al Dur power and water project into Bahrain’s national network. The project is due for completion in 2011 and would have capacity to generate 1,240 MW of power and desalinate 218,000 cu m of sea water per day.
The official did not elaborate on a schedule for the first tenders, but said the work and loans would be divided into several packages.