AMMAN, July 1 (KUNA) -- The Kuwait Fund for Arab Economic Development (KFAED) hammered out Sunday an agreement with the Jordanian government to finance the third expansion project of Al-Samra power station.

As per the agreement, signed by Jordanian Director-General of Al-Samra power station Amjad Rawashdeh and KFAED Director-General Abdulwahab Ahmad Al-Bader, KFAED will offer KD 15-million loan to Jordan to finance the project.

Kuwaiti and Jordanian governments also signed a loan guarantee agreement.

The guarantee agreement was signed by Jordanian Minister of Finance Suleiman Al-Hafez and KFAED Chief Al-Bader.

"The expansion project aims to raise the capacity of Al-Samra station to meet growing demand for electricity in Jordan," Al-Bader told KUNA.

It includes the procurement and installation of a steam unit within about 140 MW capacity working on heat recovery from the two simple cycle gas turbines of the first step of the third expansion.

Jordanian Minister Al-Hafez said the loan maturity is 24 years, including a grace period of four years. It would be repaid over 40 semi-annual installments, with interest at the annual rate of 3 percent.

"On this occasion, we express gratitude for Kuwait's decades-long support to Jordanian economy," he told KUNA, adding that "this reflects strength of friendship bonds between the two nations." By signing this loan agreement, it would be the 26th loan provided by the KFAED to Jordan, as it previously provided 25 loans at a total value of about KD 155 million to assist in financing projects in various sectors. KFAED had also offered Jordan six grants at a value of USD 11 million.