Egypt to sign contracts for Saudi-linked power network

The $1.6bln project is looking to connect both countries’ grids with 900 kilometers of overhead transmission cables

  
Image used for illustrative purpose.

Image used for illustrative purpose.

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Egypt is expected to sign contracts for a 2 GW electricity transmission network that will link Egypt’s electricity grid to Saudi Arabia very soon, Electricity Minister Mohamed Shaker said.

Shaker added that Egypt will fund about 40% of the project, while Saudi Arabia will pay for the remaining 60%.

The USD 1.6 billion project is looking to connect both countries’ grids with 900 kilometers of overhead transmission cables. The cable routes extend 25 kilometers across the sea bed.

The project is expected to be completed by 2023, after being delayed from an original 2021 launch date due to Saudi Arabia’s Neom project.

As yet, eight companies have made bids for the construction of the project in a tender that went live earlier in September.

Saudi Arabi’s Alfanar has so far submitted the highest bid at $24.8 million, while South Korea's Hyundai Engineering and Construction presented the lowest bid at $446.8 million.

Additionally, two consortiums have submitted proposals in early May to design and build four $1 billion substations across both countries as part of the project.

A Chinese-led consortium, as well as a team comprising Hitachi, Orascom and Saudi Services for Electromechanic Works (SSEM) have so far bid for the substations contract.

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