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MoU For An Electricity Interconnection Project To Link Saudi Arabia & Egypt | |
| Sumita Pawar |
A report says the Japan Bank for International Cooperation (JBIC) has signed a loan agreement with the Saudi Electricity Company (SEC) for an electricity interconnection project that will link Saudi Arabia and Egypt.
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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 northwest Saudi Arabia and Egypt, as highlighted in the report.
The project is part of Saudi Vision 2030, the government of Saudi Arabia's plan for national development. The plan's goal is to improve transmission infrastructure and promote renewable energy.
The loan, which amounts to up to USD 207 million, is co-financed with MUFG Bank Limited, Bank of Yokohama Limited, and Nishi-Nippon City Bank Limited.
According to the report, JBIC’s portion of the loan is approximately USD 103 million and has been provided as part of its Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN) operations, which aim to support global environmental preservation efforts.
The loan will help stabilise a system where Saudi Arabia and Egypt can exchange surplus power with each other, contributing to the growth of renewable energy in the region.