KUWAIT CITY, June 3: Local financial contracts for the project related to import of liquefied gas affiliated to Kuwait Integrated Petroleum Industries Company (KIPIC) in Al- Zour area have not been signed due to delay in granting approvals by the Central Bank of Kuwait to some local banks that are participating in financing the project. According to high-level oil sources, all arrangements, and legal and administrative approvals on the financial contracts are ready and pending the approval of the Central Bank of Kuwait.
The approval is expected to be received next week. The total amount to borrow for the project is estimated to be KD 700 million.
This includes KD 350 million to be financed locally by 50 percent of the local banks similar to foreign borrowing from exports credit banks.
The sources said National Bank of Kuwait (NBK) and Kuwait Finance House (KFH) were assigned to offer local loan worth KD 350 million to finance the project of importing liquefied gas in Al-Zour area but the total value from traditional and Islamic banks has not been determined until now but is pending final approvals.
By Abdullah Othman