The Saudi Fund for Development (SFD) has signed a $40 million loan agreement with the government of Saint Kitts and Nevis to bolster the island nation’s energy sector.

SFD, a government fund that provides monetary assistance to developing countries, will finance the expansion of a power plant project in Saint Kitts and Nevis.

The project entails the establishment of a dual-fuel power generation station with a capacity of 18 megawatts, an SFD release stated.

The agreement was signed between the CEO of SFD, Sultan bin Abdulrahman Al-Marshad, and the Deputy Prime Minister of Saint Kitts and Nevis, Dr Geoffrey Hanley on the sidelines of the World Bank Spring Meetings and the International Monetary Fund in Washington D.C.

According to SFD, since its establishment in 1975, it has financed over 800 projects and development programmes worldwide, with a total investment exceeding $20 billion.

(Writing by Bindu Rai, editing by Brinda Darasha)