The governments of Saudi Arabia and Egypt have signed a memorandum of understanding (MOU) to build a cross-border power line.

The MOU was signed between the two governments on 1 June. The estimated $2.1bn cross-border power connection will have the capacity to transport 3,000MW of electricity a day.

The project 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.