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NEW funding provisions of $80 million to Al Dur Independent Water and Power Project is set to be voted on by Shura Council members during their weekly session on Sunday.
The government has proposed amendments to the funding between the state and the Islamic Solidarity Fund for Development.
MPs last month gave a green light to the legislation, which has been recommended for approval by Shura’s financial and economic affairs committee.
It would have the loan format changed from the now-suspended calculation of London’s LIBOR (London Interbank Offer Rate) to US Federal SOFR (Secured Overnight Financing Rate).
Electricity and Water Affairs Minister Yasser Humaidan, who is politically responsible for the Electricity and Water Authority (EWA) said the format change was necessary to ensure loan payments don’t stall with expansions to Al Dur ongoing.
“The expansion project for distribution networks should be completed within four years and we don’t want it stalled because the old calculation format has been suspended since September last year,” he said.
“The loan is the EWA’s responsibility and is being paid by it solely even if the agreement is with the government.
“The EWA is self-dependent and has to finance its projects from its own revenues and over the past four years, we have managed to significantly reduce costs deficits through more effective approaches, technological advancements and collecting owed amounts.”
Meanwhile, committee chairman Khalid Al Maskati said all agreements involving LIBOR would be changed in a sequence presented by the government.
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