IDB approves $34 million dollars to finance Bahrain electricity project

The Islamic Development Bank (IDB) and Bahrain signed on Monday an agreement to finance the purchase of $34.3 million worth of equipment to be used in the upgrading of Bahrain's electricity network.

A statement by the IDB said Bahraini Finance and Economy Minister Ibrahim Abdel Karim and the IDB chairman, Ahmad Mohammed Ali, signed the agreement.

The statement said the project was vital for Bahrain's efforts to meet the growing demand for electricity and cover the construction of six additional energy stations and the expansion of four existing stations.

In a related event, Bahrain and the IDB also signed a technical grant agreement valued at $225,000 to finance a study on the marketing of industrial development in Bahrain.

The two agreements brought to $208 million the total value of projects financed by the IDB in Bahrain.

Established in 1974 by the Organization of Islamic Conference (OIC), the IDB comprises of 53 member states, and aims at pushing forward development projects in Islamic states and encouraging Inter-Islamic trade.

The Jeddah-based IDB with a capital of $9 billion succeeded in upgrading inter-trade among member states to 10 percent from 4, and hopes for 13 percent as a target.