Cairo and Riyadh close to awarding power network consultancy

18 December 2013

Cross-border line will have capacity to transport 3,000MW a day

Egypt’s Electricity Ministry is planning to award the consultancy contract for the estimated $1.6bn cross-border power sharing network with Saudi Arabia before the end of the year.

Aktham Abu el-Ela, first undersecretary of Egypt’s Electricity Ministry, was reported in local press as saying the government will make an announcement on the winning firm before the end of December.

The ministry had invited 10 companies to participate for the tender.

The governments of Saudi Arabia and Egypt signed a memorandum of understanding (MOU) to build a cross-border power line on 1 June this year. The connection will have the capacity to transport 3,000MW a day.

The scheme has been discussed for a number of years and was stalled following the political change in Egypt in 2011. The link will mean that Egypt is connected to the four-year-old GCC electricity network, which began operations in mid-2009. It is based on a study that was originally completed by the Arab Fund for Economic & Social Development.

Egypt is expected to fund about 40 per cent of the project, with Saudi Arabia scheduled to pay the remaining 60 per cent.

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