The Trump administration has proposed that the US government invest $5 billion in a new fund for the Middle East aimed at repairing and strengthening energy infrastructure damaged by the war with Iran. The initiative would also seek to reduce the region’s dependence on the Strait of Hormuz, according to documents reviewed by CNN.
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The six-page proposal is called the Partnership for Allied Construction and Trust (PACT) and envisions the creation of a $50 billion strategic fund. The fund would finance the construction of pipelines, refineries, ports and other major infrastructure projects.
President Donald Trump is expected to present the plan for discussion with the leaders of Gulf countries in New York later today, sources told CNN. The document began circulating last week.
The participating countries are expected to provide financial contributions, although it is not yet known which of them will invest specifically. Regional sources told CNN that several Gulf states are expected to support the initiative, but have not planned investments at this stage.
These sources expressed skepticism that the project would help bring the conflict to an end, as it has recently expanded with the involvement of Iran-backed Houthis in aggressive attacks in the Red Sea and Saudi Arabia.
The United States’ willingness to finance repairs and new construction highlights the scale of the damage the war has caused in the region, both to infrastructure and to energy exports.
The document also mentions global funds and sovereign wealth companies as entities that “could invest in individual deals.” The list includes KKR, Blackstone, KBIC and Global Infrastructure Partners.
The plan is accompanied by a map showing some of the proposed new infrastructure projects, as well as a timeline specifying that the first announcements about the projects will be made in January. The proposal was first reported by the Wall Street Journal.
However, the content of the final version could change, as the documents reviewed by CNN were marked as drafts.
