The Kuwait Fund for Arab Economic Development (KFAED) and Oman signed in Muscat on Wednesday a grant agreement whereby the Fund will offer USD.75 billion to finance Al Batinah Expressway project in the Sultanate.
The amount comes within the Framework Agreement signed on 27 May 2013 between Oman and the Kuwait Fund for the utilization of a grant of USD 2.5 billion allocated by the State of Kuwait to finance development projects in the Sultanate, the Fund said in a statement.
The major grant is part of the Gulf Cooperation Council (GCC) program for development purposes in the member states, it added.
Today's agreement was signed by Omani Minister for Financial Affairs Darwish bin Ismail bin Ali Al-Balushi, and Director-General of the Kuwait Fund for Arab Economic Development Abdulwahab Al-Bader.
According to the statement, the project aims to enhance economic and social development in Oman through meeting the rising demand on passenger transport and goods traffic between the capital and the borders with the UAE.
The total cost of the project is estimated at USD 3.723 billion to be disbursed over seven years as of 2012. It is expected today's grant of USD 1.75 billion will cover 47 percent of the total cost.