Plans to link Saudi, Egypt power grid backed by Kuwaiti Fund

Published August 24th, 2016 - 05:00 GMT
The Kuwaiti Fund loan to finance the project will be repaid in instalments over 20 years, with a five-year grace period. (Shutterstock)
The Kuwaiti Fund loan to finance the project will be repaid in instalments over 20 years, with a five-year grace period. (Shutterstock)

As part of the growing economic ties with Saudi Arabia, the Egyptian parliament on Monday gave its approval to a pact on connecting the power grids of the two countries – the two biggest systems in the Arab world, reported Ahram Online.

The grid will help boost the two countries’ total power-generation capacity to more than 90,000 megawatts.

Saudi Arabia and Egypt had signed the agreement in Cairo on November 22 last year with the project to be backed by a loan to the tune of 30 million Kuwaiti dinars from the Kuwaiti Fund for Arab Economic Development.

The loan will carry a 2.5 per cent interest rate and will be repaid in installments over 20 years, with a five-year grace period.

With the endorsement by Egyptian parliament, the work on the “long-awaited project” can begin.

Ahram Online cited the Egyptian parliamentary report on the deal as saying that “this landmark project, will become a key hub in the Arab electricity grid.”

Giving further details on the project, it said the grids will be linked via three stations – the city of Badr in Egypt, and the two Saudi cities of Medina and Tabuk.

During peak hours the energy transfer between the two countries will be a maximum of 3,000 megawatts. Any surpluses in electricity can also be exported.

 
 
 

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