| Project Detail |
A loan agreement for KD 45 million was signed in Cairo on the 24th of March 2014 to help finance the Electrical Interconnection Project between Egypt and Saudi Arabia.
The loan agreement was signed by H.E. Dr. Ziad Bahaa Eddin, Deputy Prime Minister and Minister of International Cooperation, on behalf of the Government of the Arab Republic of Egypt, and H.E. Mr. Abdlatif Yousef Al Hamad, Director General/Chairman of the Board of Directors of the Arab Fund, on behalf of the Fund.
The project aims at connecting the Egyptian electrical grid with Saudi Arabia’s electrical grid, using a 500kV bi-polar DC line, starting at Badr substation in the Arab Republic of Egypt, passing through Tabuk substation and ending at East Medina substation, both in the Kingdom of Saudi Arabia. The line will have a length of 1320 km, and the capacity to transport approximately 3000 MW. The project will connect the two largest systems in the Arab world having a total installed capacity of around 90GW. When completed, the project will link the GCC networks with those of the Maghreb and Mashreq Arab countries.
The project includes the following key elements:
1 - Part of the project located in the territory of the Arab Republic of Egypt
2 - Part of the project located in the territory of the Kingdom of Saudi Arabia
3 - Common part, located in the Gulf of Aqaba
The loan will carry interest at 3% per annum and will be repayable over 25 years with a 4 year grace period.
The Egyptian Electricity Transmission Company will be the beneficiary of the loan, and will be responsible for implementing the project, which is due to be completed by the fourth quarter of 2016.
With the signing of this loan, the Arab Funds total contribution to financing projects in the Arab Republic of Egypt now amounts to KD 1,222.15 million.
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