Shura Council members are set to vote during their weekly session on Sunday on an urgent government-drafted legislation for financing from the Islamic Development Bank to fund the new 400 kilo volt electricity plant in Jasra.
The loan, which will be granted to the Electricity and Water Authority (EWA), can’t exceed $200 million over a period of seven years.
Electricity and Water Affairs Minister Yasser Humaidan, who is politically responsible for the EWA, revealed that the power plant costs $465m.
He added that it would be financed through a combination of development loans and government contributions.
He explained to the Shura Council’s financial and economic affairs committee, chaired by Khalid Al Maskati, that the major infrastructure initiative is designed to enhance the country’s electricity transmission network and meet growing power demands by 2027.
Mr Humaidan
“The loan agreement for the project spans 20 years, including a three-year preparatory phase and a 17-year repayment period,” said Mr Humaidan.
He stressed that this timeline aligns with Bahrain’s urgent need to expand and reinforce its electricity infrastructure.
“The Al Jasra station, including its substations, 400 kV cable lines and 220 kV transmission routes, will prevent significant overloads on the current grid and help maintain electricity flow within operational limits,” explained the minister.
“The project is essential to enhance the efficiency, reliability and continuity of the kingdom’s power network by 2027.
“The government has secured a $200m loan from the Islamic Development Bank representing approximately 43pc of the total project cost.
“Discussions are ongoing with additional funding sources to secure the remaining amount, including potential local or regional financing partners and possible direct contributions from the EWA general budget.
“We are actively co-ordinating with multiple financial entities to ensure full funding of the project, including potential partnerships across the Gulf region,” Mr Humaidan added.
The Finance and National Economy Ministry expressed its full support for the draft law ratifying the loan agreements, stating that the terms offered represent some of the most favourable Bahrain has received in recent years.
“The Al Jasra 400 kV project is backed by financing offers from development funds with low borrowing costs, long grace periods – up to seven years – and extended repayment terms reaching 25 years,” the ministry noted in its formal response.
However, the ministry clarified that its role was limited to guaranteeing the loan, while the responsibility for loan repayment and budget allocation lay with the EWA.
“This is considered a self-financing loan under EWA’s budgetary framework and repayment responsibilities are entirely within its domain,” the ministry affirmed.
Mr Al Maskati
Mr Al Maskati praised the financial prudence of the project and the government’s proactive co-ordination with funding partners.
“This is a crucial investment in national infrastructure and energy security. The favourable loan conditions and strategic importance of the project fully justify legislative approval,” Mr Al Maskati stated.
“The Al Jasra station will play a pivotal role in Bahrain’s energy transition and its broader economic vision for 2030,” he added.
It was approved by MPs earlier this month.
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