The Sultanate and Kuwait signed a financial co-operation pact as part of the Framework Agreement between the Sultanate's government, represented by the Ministry of Finance, and the Kuwait Fund for Arab Economic Development (KFAED), on behalf of the government of Kuwait.
The agreement provides for managing and executing the grant allocated by the government of the State of Kuwait to the Sultanate's government within the framework of the GCC Development Program to the tune of $2.5 billion in10 years — $250 million annually, towards funding development projects in the Sultanate.
The proceeds of the grant will be used to fund development projects in the Sultanate. It will also be used in the joint ventures at bilateral level or GCC level, including the GCC electricity grid and water linkage projects, the GCC railway project, infrastructure projects for industrial zones and other future projects, according to the plans and programs outlined for the projects.
The development of Oman's rail network will run broadly in parallel with a plan by the six Gulf states to build an inter-GCC rail system extending some 2,000-km network from Salalah with Kuwait's border with Iraq.
The estimated $25 billion project is likely to be operational during the 2016-18 timeframe.
The agreement was signed on behalf of the Sultanate's government by Darwish bin Ismaeel al Balushi, Minister Responsible for Financial Affairs, Abdulwahab Ahmed al Badr, Director-General of KFAED, signed the pact on behalf of the Kuwaiti fund.
Oman Daily Observer