Saudi Arabia may invest $90b to expand and boost power network |
|
Jeddah - Saudi Arabia will invest $90 billion to expand and enhance its power network, according to information made available to Khaleej Times here on Wednesday.
It is studying a restructuring plan to develop its electricity industry area and open up the power market to the private sector and local investors. The government is also studying a plan to complete its national grid linking all the provinces by 2011.The Saudi Electricity and Cogeneration Regulatory Authority (ECRA)Electricity and Cogeneration Regulatory Authority (ECRA)
has already embarked upon a comprehensive plan to develop the industry to move to a competitive market where supply and demand controls the market process.
The restructuring plan is based on international best practices after studying other countries' experiences.
Saudi Arabia needs 2000 MW of electricity annually to meet its local demand which requires investments of SR10 billion.
Demand for electricity and fresh water is expected to increase by 7 per cent annually. Saudi Electricity Co. (SEC)Saudi Electricity Co. (SEC) has agreed to a SR6 billion Islamic loan with a group of six local banks.
Al Rajhi BankAl Rajhi Bank, Banque Saudi FransiBanque Saudi Fransi, National Commercial BankNational Commercial Bank, Samba Financial GroupSamba Financial Group, Saudi British BankSaudi British Bank and Saudi Hollandi BankSaudi Hollandi Bank, will refinance maturing debt and help pay for new projects.
SECSEC will repay its Murabaha loan over 12 years. SECSEC spent SR13.5 billion on expansion projects last year and approved four new projects last month.
Fitch, the international ratings agency, has upgraded its long term issuer default and senior unsecured ratings of SECSEC, to 'AA-' from 'A+' with a stable outlook. Fitch's rating is in line with the government's strong support for SECSEC.
The new rating will help SECSEC get financing for its power generation and transmission projects in addition to strengthening its bargaining power with local and international investors. SECSEC's managing board has approved four new projects, including the first phase of Riyadh's tenth power station with a capacity of 2000 MW.
The other projects are the expansion of Rabigh station to 720 MW, Al Shuaiba station to 1.191 MW and Juba station to 100 MW.
The four said projects will cost SR26 billion as part of the SECSEC strategy to meet growing local demand for electricity.
SECSEC has also approved five new contracts including the setting up a new transformation stations, connecting west Makkah station and East Madinah station with the main network, setting up fuel pipelines for Al Qassim station, and upgrading the boiler system at Ghazlan station.
The projects will be implemented at a cost of SR1.9 billion to enhance the network ability and meet growing local demand for electricity.
© Khaleej Times 2008
Comment on this article 
Loading ...-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Stories
Companies
| Company Name | Country | Industry |
| Consolidated Contractors Company | Overseas | Construction and Design |
| Saudi Binladin Group | Saudi Arabia | Construction and Design |
| Saudi Telecom | Saudi Arabia | Telecommunications Services |
| Nissan Motor Egypt | Egypt | Transportation Products |
| KIA Motors Saudi Arabia | Saudi Arabia | Transportation Products |
| Ministry of Health - Saudi Arabia | Saudi Arabia | Ministries and Municipalities |
| Al Rashid Trading and Contracting Company | Saudi Arabia | Construction and Design |
| Al Azizia Panda United Company | Saudi Arabia | General Retailers |
| Dodsal Engineering and Construction | UAE | Construction and Design |
| Saudi Arabian Oil Company | Saudi Arabia | Oil |
Projects
| Project Name | Country | Sector |
| Ras Girtas Power Company - Ras Girtas IWPP | Qatar | Power and Water |
| IGD - Gasco - Habshan 5 Gas Processing Plant | UAE | Oil and Gas |
| Emirates Aluminium (EMAL) - Smelter Complex | UAE | Industry |
| SATORP - Jubail Refinery and Petrochemical Complex | Saudi Arabia | Oil and Gas |
| Takreer - Ruwais Refinery Expansion | UAE | Oil and Gas |
| Qatar Foundation - Sidra Medical and Research Center | Qatar | Real Estate |
| Aramco/Dow Chemical - Ras Tanura Integrated Refinery and Petrochemicals Complex | Saudi Arabia | Oil and Gas |
| Dubai RTA - Dubai Metro | UAE | Infrastructure |
| Abu Dhabi Ports Company - Khalifa Port and Industrial Zone (KPIZ) | UAE | Infrastructure |
| SATORP- Jubail Refinery and Petrochemical Complex - Conversion Unit and Sulphur Package (Part 2) | Saudi Arabia | Oil and Gas |