03 July 2005
The Chamber of Deputies yesterday gave the green signal to the government to take two loans - $46 millions and KD15 million - to cover some of the construction cost of Shaikh Khalifa bin Salman Port project, writes Suad Hamada.
The first loan is from the Islamic Development Bank for 13 years at the rate of six per cent and the second is from the Arab Fund for Economic and Social Development at a rate of 4.5 per cent. The first loan will be allocated for marine digging, basic construction work, the construction of the port's main buildings, marine equipment and consultations.
The second loan will be used to buy land owned by individuals or companies, as well as for basic construction and consultations. Bahrain will cover $308 million or about 68 per cent of the total construction cost of the project, through state budget and loans.
The Assistant Undersecretary for Financial Affairs at the Ministry of Finance, Arif Salah Khamees, called upon the Chamber to approve the two agreements, stressing that the port aimed to enhance marine transportation in the region. "The port will be provided with facilities to receive large ships and offer them with necessary maintenance services."
The digging operations will help increase the port capacity. The port will be provided with high-tech marine and sailing facilities. In 2000, Bahrain took Dhs 367.3 million from Abu Dhabi Development Fund at a rate of three per cent interest. Following the approval of the two loans by the Chamber yesterday, KD17.5 million loan will be taken at the rate of three per cent from the Kuwaiti Fund for Arab Economic Development.
The Speaker at the Chamber of Deputies, Khalifa Al Dahrani, appreciated the investment organisations in the region for charging low interests for the loans to Bahrain. Deputy Ali Mattar, however, expressed fear that the port and its financial obligations would increase national debt and affect the national economy. He said Bahrain's BD1.5 billion debt would reduce the chances for sustainable development and affect prosperity of the young generation.
The Chamber of Deputies yesterday gave the green signal to the government to take two loans - $46 millions and KD15 million - to cover some of the construction cost of Shaikh Khalifa bin Salman Port project, writes Suad Hamada.
The first loan is from the Islamic Development Bank for 13 years at the rate of six per cent and the second is from the Arab Fund for Economic and Social Development at a rate of 4.5 per cent. The first loan will be allocated for marine digging, basic construction work, the construction of the port's main buildings, marine equipment and consultations.
The second loan will be used to buy land owned by individuals or companies, as well as for basic construction and consultations. Bahrain will cover $308 million or about 68 per cent of the total construction cost of the project, through state budget and loans.
The Assistant Undersecretary for Financial Affairs at the Ministry of Finance, Arif Salah Khamees, called upon the Chamber to approve the two agreements, stressing that the port aimed to enhance marine transportation in the region. "The port will be provided with facilities to receive large ships and offer them with necessary maintenance services."
The digging operations will help increase the port capacity. The port will be provided with high-tech marine and sailing facilities. In 2000, Bahrain took Dhs 367.3 million from Abu Dhabi Development Fund at a rate of three per cent interest. Following the approval of the two loans by the Chamber yesterday, KD17.5 million loan will be taken at the rate of three per cent from the Kuwaiti Fund for Arab Economic Development.
The Speaker at the Chamber of Deputies, Khalifa Al Dahrani, appreciated the investment organisations in the region for charging low interests for the loans to Bahrain. Deputy Ali Mattar, however, expressed fear that the port and its financial obligations would increase national debt and affect the national economy. He said Bahrain's BD1.5 billion debt would reduce the chances for sustainable development and affect prosperity of the young generation.
© Bahrain Tribune 2005
