Egypt and Saudi Arabia aim to sign contracts for $1.6bn power link in May

3 Feb 2020
Egypt and Saudi Arabia aim to sign contracts for $1.6bn power link in May

Egypt and Saudi Arabia are planning to sign the final contracts for the long-awaited electricity interconnection between both countries on 30 May, according to a chairperson from the Egyptian Electricity Transmission Company (EETC).

EETC board chairperson Sabah Mashali told Kuwaiti media on 3 February that the May date had been set for finalising agreements for the ambitious project.

The project faced numerous delays in the tendering and design phases with the initial memorandum of understanding (MoU) for the project having been inked in June 2013.

In October 2016, Italy’s Prysmian Group was awarded the contract to connect switch stations in Egypt and Saudi Arabia and install a 16km submarine cable to cross the Gulf of Aqaba.

The project is estimated to cost $1.6bn, with Egypt set to fund $600m of the total cost. The interconnection is expected to be able to transport up to 3,000MW of electricity a day.

In November 2015, the Kuwait Fund for Arab Economic Development (KFAED) signed two agreements to assist with financing for the power connection. The first agreement was a $98m loan deal signed to cover part of the Egyptian section of the power connection project.

Energy & Utilities - Middle East and Africa Market, Outlook Report 2023.

This must-have report for industry players offers a thorough understanding of the latest developments, challenges, and opportunities in the region, supported by data, analysis, and expert insights. 

E&U Podcast

Subscribe to our Market Talk podcast for the latest on the key issues and trends in the energy and utilities sector

List your business

Create a business listing on the Energy & Utilities markeplace

Sign up for the FREE Energy newsletter

The latest news and analysis sent to your inbox.

Drop Us A Message
I have read, understood and consent to your Privacy Policy