Egypt and Saudi Arabia to sign electricity interconnection contracts

Egypt and Saudi Arabia are set to sign contracts for the 3,000MW electricity interconnection project between the two countries on 5 October

Egypt and Saudi Arabia are set to sign contracts for the 3,000MW electricity interconnection project between the two countries on 5 October, Egypt’s Ministry of Electricity and Renewable Energy Mohamed Shaker has revealed.

Shaker, speaking during the trial opening of an automatic control centre for New Cairo electricity grid, also said that implementation of the $1.6bn Egypt-Saudi interonnection project would begin in 2022, Al-Arabiya reported.

Egypt Electricity Transmission Company (EETC) is investing heavily in strengthening and expanding the country’s transmission and distribution (T&D) infrastructure, Shaker was quoted in Al-Arabiya.

The Egypt-Saudi interconnection 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.

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. Egypt set to fund $600m of the $1.6bn total cost.

Energy & Utilities reported in September that contractors had submitted bids for a 900-km-long high voltage overhead transmission line (OHTL) in Saudi Arabia, a key project to support the interconnection with Egypt.

The 500kV OHTL will go through Medina and Tabuk on route to the Gulf of Aqaba.

The lowest bid of $446.8m was submitted by South Korea’s Hyundai E&C. The local National Contracting Company submitted the second lowest bid of $449.4m, with Saudi Services for Electromechanical Works submitting a bid of $463.5m, the only other bid of under $500m.

The full list of bidders is:

• Hyundai E&C (South Korea), $446.8m
• National Contracting Company (local), $449.4m
• Saudi Services for Electro Mechanic Works (local), $463.5m
• Larsen & Toubro (India), $501.7m
• National Petroleum Construction Company (UAE), $522.2m
• Aetcon (local), $535.6m
• Al-Sharif Group & KEC, $535.9m
• Alfanar (local), $624.8m