Bahrain is to be a shareholder in a BD45 million ($120 million) high voltage equipment testing laboratory to be set up in the Gulf.

This will be the first facility of its kind in the Gulf, said project founding committee member Dr Abdulmajeed Habib.

Works minister and minister in charge of electricity and water authority Fahmi Al Jowder discussed project details with GCC counterparts in Doha two days ago.

'Equipment are tested at centres like Kema (Holland), Cesi (Italy) or Epri (India),' Habib told the Gulf Daily News, our sister publication.

'Once the lab is set up in the Gulf, it will be shared by all the Gulf countries, which are the joint owners of the project.

'Any failure of the equipment can be investigated in the region. This is a major cost-saving exercise.'

Such a project is vital when the Gulf countries are embarking on a multi-million dinar electricity network expansion programme, he said.

'The lab is extremely relevant at a time when we are in the final stages of implementing the $1.6 billion GCC power grid interconnection project.'

The most ideal place identified for setting up the lab is Ghunan, Saudi Arabia, said Dr Habib.

'Work is expected to start early next year. Bahrain's share in the project cost has not been finalised.'

Al Jowder held talks with GCC Interconnection Authority officials and signed two agreements - on general interconnection and power and energy trading.-TradeArabia News Service