The Japan Bank for International Cooperation (JBIC) has signed a loan agreement with Saudi Electricity Company (SEC) for an electricity interconnection project that will link Saudi Arabia and Egypt.
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 northwestern Saudi Arabia and Egypt. The project is part of the Saudi government’s national development strategy, Saudi Vision 2030, which aims to enhance transmission infrastructure and promote renewable energy. The loan, which amounts to up to USD207 million, is co-financed with MUFG Bank Limited, Bank of Yokohama Limited, and Nishi-Nippon City Bank Limited. JBIC’s portion of the loan is approximately USD103 million, and has been provided as part of its Global action for Reconciling Economic growth and ENvironmental preservation (GREEN) operations, which aims 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.