The Japan Bank for International Cooperation announced in a statement that it has signed a loan agreement amounting to up to USD207 million, of which JBIC’s portion is approximately USD103 million, with Saudi Electricity Company (SEC) for an electricity interconnection project that will link Saudi Arabia and Egypt.
The loan is co-financed with MUFG Bank, Ltd., the Bank of Yokohama, Ltd. and the Nishi-Nippon City Bank, Ltd. JBIC will also provide a guarantee for part of the portion co-financed by the private financial institutions.
The project will construct a 3,000 MW high-voltage direct current (HVDC) system with 1,350 km of overhead power lines and 22 km of submarine cables to connect northwestern Saudi Arabia and Egypt.
The loan is provided as part of JBIC’s GREEN operations, and it is intended to provide SEC with the funds necessary for the construction in Saudi Arabia.
The Government of Saudi Arabia views the growth of renewable energy and the enhancement of transmission infrastructure for the purpose of growing renewable energy as an important policy issue under its national development strategy, Saudi Vision 2030. SEC, which is a vertically integrated electric utility that generates, transmits, and distributes electricity throughout Saudi Arabia, is enhancing infrastructure, including interconnection projects. The loan will support the effective use of electricity and stabilization of a system where Saudi Arabia and Egypt can exchange surplus power with each other, thereby contributing toward the growth of renewable energy that Saudi Arabia is promoting, statement mentioned.
Related: Saudi Arabia, Egypt signs $1.8b electrical interconnection contract
