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The Shura Council yesterday unanimously approved new funding provisions of $80 million to Al Dur Independent Water and Power Project.
The government has urgently submitted amendments to the funding between the government and the Islamic Solidarity Fund for Development.
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).
MPs approved the move earlier this month.
Electricity and Water Affairs Minister Yasser Humaidan, who is politically responsible for the Electricity and Water Authority (EWA) said during yesterday’s weekly Shura Council session that the format change was necessary to ensure the loan payments don’t stall with expansions to Al Dur ongoing.
“The expansion project for distribution networks should be complete 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 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 cost deficits through more effective approaches, technological advancements and collecting owed amounts.”
Meanwhile, Shura’s financial and economic affairs committee chairman Khalid Al Maskati said all agreements involving LIBOR would be changed in a sequence presented by the government.
“The newer format is more secure and cheaper with it actually being in practice, unlike LIBOR that has been cancelled a few months ago,” he said.
“The loan was in jeopardy of being put on hold without this urgent legislative change and more of such form are set to arrive for us to take action.”
* GDN Media has learnt that legislators are set to sit with the government today to discuss the draft 2025-2026 national state budget.
“The draft budget will arrive in Parliament next month and finalisation is expected within a maximum of two months,” said the source.
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