Saudi Arabia-Egypt power interconnection project secures financing

12 Aug 2022

Saudi Electricity Company (SEC) has secured a US$568m Export Credit Agency (ECA) facility to finance Saudi-Egypt power interconnection project. The US$1.8bn project, developed by SEC and the Egyptian Electricity Transmission Corporation (EETC), would consist of a 1,300 km long power interconnection between Cairo (Egypt), Tabuk (Saudi Arabia) and Madinah (Saudi Arabia). The high voltage direct current (HVDC) line is expected to enable the exchange of up to 3 GW of electricity at peak times.

The ECA facility agreement was signed with Standard Chartered Bank and Sumitomo Mitsui Banking Corporation which specifies that such facility, subject to satisfaction of conditions precedent, will be guaranteed by the Swedish Export Credit Agency (EKN) and funded by Swedish Export Credit Corporation (SEK).

In May 2022, SNC-Lavalin won a four-year contract to manage and supervise the design and execution of the project. Prysmian Group secured a €221m (US$240m) contract in October 2021 for a ±500 kV HVDC submarine and land cable system that would connect the Gulf Cooperation Council (GCC) countries with the African continent. The delivery and commissioning of the project are scheduled for 2024.

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