Energy loan from Kuwait

Jieh and Zouk rehabilitation expected in May

The Ministry of Energy and Water (MoEW) signed a soft loan agreement with the Kuwait Fund for Arab Economic Development (KFAED). The loan, approved by Cabinet last June, is for an amount equivalent to $85 million, which will partially fund the project to rehabilitate the power stations in Jieh.

The project involves upgrading five generation units at the Jieh station with a total capacity of 330 MW. The 25-year loan will fund the rehabilitation of production units 3, 4, and 5.

This project is part of the bigger rehabilitation plan for the power plants in Jieh and Zouk at an estimated cost of $445 million. The plan consists of three separate lots, ‘Lot 1’ for the rehabilitation of all four units of the Zouk plant, ‘Lot 2’ for the rehabilitation of units 1 and 2 of the Jieh plant, and ‘Lot 3’ for the rehabilitation of units 3, 4, and 5 of the Jieh plant.

The Council for Development and Reconstruction (CDR) has already invited companies to bid for the three lots. The contracts are expected to be awarded by May 2013.