The Kuwait Fund for Arab Economic Development (KFAED) signed on Saturday a loan agreement, worth KD 8.8 million, with Cuba to finance about 34 hydroelectric power plants there.

The project aims to make use of existing water reserve behind dams to generate electricity and provide thermal fuel so as to reduce greenhouse gas emissions, in addition to expand and improve electrical services for the rural areas, said a statement issued by Kuwait's Embassy in Cuba, of which KUNA received a copy.

This contributes to providing social services, achieving rural development, promoting agricultural production and reducing migration to big cities across in the country, the statement added.

The project, which will be fulfilled in seven years, will contribute also to supporting national industry, training institutions and scientific research centers at universities in this sector, it noted.

It includes establishing about 34 plants with a total capacity of 14.6 megawatts, and some distribution plants.

The project's total cost is estimated at about KD 21.8 million, Kuwait's loan will cover about 40 percent of it, the statement pointed out.

The loan will be repaid with 21 years, including a grace period of seven years, in 28 semi-annual installments with an interest rate of three percent.

Kuwait has signed with Cuba five loans so far, including today's, worth KD 22.5 million (USD 76.5 million).

Source :WAM