The Grant is considered within the Framework Agreement signed on 27/05/2013 between the Government of the Sultanate of Oman and Kuwait Fund for Arab Economic Development concerning the utilization of a grant of U.S$ 2.5 billion by the Government of the State of Kuwait to the Sultanate of Oman for the financing of Development Projects, the administration of the Grant having been entrusted by the Government of the State of Kuwait to Kuwait Fund. The Grant is being made within the framework of the Program of the Gulf Cooperation Council (G.C.C.) for development in the member states.

The Agreement  pertaining the Project was signed on behalf of the Sultanate of Oman  by His Excellency Mr. Darwish Bin Ismail Ben Ali Al-Balushi, Minister for Financial Affairs whereas Mr. Abdulwahab Al-Bader, Director-General of Kuwait Fund for Arab Economic Development, signed the Agreement on behalf of the Fund.

The aim of the project is to enhance the economic and social development of the Sultanate of Oman by satisfying the increasing demand on passengers and goods traffic between the capital ? Muscat ? and the borders with the United Arab Emirates, by reducing the traffic jams on the parallel Batinah coastal road, by saving in the vehicle operating costs and by reducing travel time.

The Project consists of the construction of an asphalted eight lanes ( four in each direction) 270 Kms. long expressway in addition to four lanes (two in each direction) 250 Kms. connecting roads linking the expressway with the existing Batinah coastal road. All the intersections are multilevel interchanges. The Project also includes heavy vehicles weighing stations, pedestrian overpasses, rest areas and the needed consultancy service.

The total cost of the Project is estimated at about  Omani Riyals 1,432  billion, equivalent to about Kuwaiti Dinars 1,095 billion or about U.S. $3,723 billion to be disbursed over seven years as of 2012. It is expected that part of the proceeds of the Kuwaiti Grant in the amount of US$ 1,750 billion will finance 47% of the total costs of the project.

By extending this Grant, the Fund will have provided US$ 1,75 billion representing about 70% of the State of Kuwait?s total share of the programmes  designated to the Sultanate of Oman.

It is worth mentioning that Kuwait Fund had extended to the Sultanate of Oman 23 Loans totalling about Kuwaiti Dinars 194 million, the equivalent of about U.S. Dollars 663 million to finance projects in various sectors, in addition to one Technical Assistance totalling about Kuwaiti Dinars 142,000, equivalent to about U.S. Dollars 482,000 to finance the preparation of the technical and economic feasibility studies for a livestock project .