403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
US Proposes Multibillion Dollar Fund to Rebuild Gulf Energy Sites
(MENAFN) The United States is considering a proposal to establish a multinational fund worth up to $10 billion to help restore Gulf energy infrastructure damaged during the conflict with Iran and support the development of alternative export routes that avoid the Strait of Hormuz, according to reports.
Under the proposal, Washington would provide $5 billion, while eight Middle Eastern countries — Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait, Oman, Iraq and Jordan — would collectively contribute another $5 billion.
The initiative, known as the Partnership for Allied Trust and Construction, or Pact, would therefore have a potential total value of $10 billion.
The US Development Finance Corporation would oversee the proposed fund. The agency has traditionally focused much of its work on developing economies rather than wealthy Gulf states.
US officials emphasized that negotiations remain ongoing and that the proposal could still be modified. It is also unclear whether any of the countries involved will ultimately agree to participate.
Some regional officials have interpreted the initiative as an attempt to demonstrate that the Strait of Hormuz can become less central to energy exports while also presenting a coordinated regional position toward Tehran.
Others have expressed concerns about beginning reconstruction before a peace agreement is reached, arguing that newly rebuilt energy facilities could remain vulnerable to potential Iranian attacks.
Under the proposal, Washington would provide $5 billion, while eight Middle Eastern countries — Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait, Oman, Iraq and Jordan — would collectively contribute another $5 billion.
The initiative, known as the Partnership for Allied Trust and Construction, or Pact, would therefore have a potential total value of $10 billion.
The US Development Finance Corporation would oversee the proposed fund. The agency has traditionally focused much of its work on developing economies rather than wealthy Gulf states.
US officials emphasized that negotiations remain ongoing and that the proposal could still be modified. It is also unclear whether any of the countries involved will ultimately agree to participate.
Some regional officials have interpreted the initiative as an attempt to demonstrate that the Strait of Hormuz can become less central to energy exports while also presenting a coordinated regional position toward Tehran.
Others have expressed concerns about beginning reconstruction before a peace agreement is reached, arguing that newly rebuilt energy facilities could remain vulnerable to potential Iranian attacks.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept any
responsibility or liability for the accuracy, content, images, videos,
licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright issues
related to this article, kindly contact the provider above.
Comments
No comment