Egypt, Saudi Arabia ink power deal
The Egyptian parliament has given a nod to an agreement connecting power grid between the country and Saudi Arabia, cementing their long economic ties. 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 $100 million 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. “This landmark project, will become a key hub in the Arab electricity grid,” read the parliamentary report. 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.