Source : IINA / 3 Dec 2013

Saudi Arabia has formally agreed to provide electricity to Egypt.

An agreement to this effect will be signed at the end of the month, said Saleh Alawaji, chairman of board of directors of Saudi Electricity Company and deputy minister for electricity in Saudi Arabia.

Alawaji made the announcement at a water forum, which was attended by more than 500 businessmen and 109 companies and international organizations from 39 countries. The forum was launched by Jeddah Governor Prince Mishaal bin Majed at the Jeddah Hilton on Sunday. The opening ceremony was attended by Water and Electricity Minister Abdullah Al-Hussayen and Luay Al-Musallam, CEO of the National Water Company. Alawaji said that electricity would be supplied from Madinah to Cairo via Tabuk.

He said that a 1,500-km transmission cable would be installed to supply power. The project would be completed within three years, he said, adding that tenders would be floated in 2014 for the project. He also clarified that the cost of electricity would be calculated based on international energy rates and not on Saudi rates, which are fully subsidized.

Alawaji also revealed that the Kingdom of Saudi Arabia is required to invest $ 50 billion in electricity generation per annum. The Ras Al-Khair power plant on the east coast will play a significant role in meeting the Kingdom’s energy needs in the coming months.