Egypt, Saudi to Ink Contracts for Linking Power Network

Egypt, Saudi to Ink Contracts for Linking Power Network

By Mohamed Maher                                                                                                        1

By Mohamed Maher                                                                                                        1 minute read

Egypt is close to signing contracts for a 2 GW electricity transmission network that will link Egypt’s electricity grid to Saudi Arabia. Electricity Minister Mohamed Shaker told eXtra News last Wednesday

Egypt is set to fund about 40% of the project, while Saudi Arabia is to fund the remaining 60%, MEED reported. The USD 1.6 bn project is looking to connect both countries’ grids with 900 km of overhead transmission cables. The project is expected to go live in 2023, after being delayed from an original 2021 launch date due to Saudi Arabia’s Neom project.

So far, eight companies have made bids for the construction of the project in a tender that was put for bidding earlier this month. So far, Saudi Arabi’s Alfanar has submitted the highest bid at USD 624.8 mn, while South Korea’s Hyundai Engineering and Construction presented the lowest bid of USD 446.8 mn.

In early May, two consortiums have submitted their bids to design and build four USD 1 bn substations across both countries as part of the project. So far, a Chinese-led consortium and another comprising Hitachi, Orascom and Saudi Services for Electromechanic Works (SSEM) have submitted their bids for the substations contract. The project was supposed to start last year, but was delayed to 2023 due to Saudi Arabia’s USD 500 bn mega project, Neom. The cable routes extend 25 km across the sea bed.

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