JEDDAH, 28 June 2005 — The Saudi Electricity Company (SEC) signed yesterday a loan agreement for SR3.5 billion ($934 million), an addition to the previous loan signed with several Saudi banks for SR6 billion ($1.6 billion) in May 2004. The loans are to cover the company’s financing of capital projects.
After the signing, CEO of the company, Sulaiman Al-Gadi, expressed satisfaction with securing the loan from a group of banks that were supportive of the company’s capital projects. The banks that provided the loan are: Banque Saudi Fransi, Samba Financial Group, National Commercial Bank, Arab National Bank, Gulf International Bank, Saudi Holandi Bank, Saudi British Bank, Bahrain Arabian Bank, Bank of Bahrain and Kuwait, and Bahrain National Bank.
On Sunday, SEC signed two contracts with Saudi Electric and Mechanical Services Company for a total of SR737 million to establish a third connecting line with a power of 380 kilovolts at a length of 414 km between the Eastern Province and Central Province. The new line is to meet the increasing demand on electricity in the Eastern Province by providing 1200 megawatts extra capacity in the connecting lines between the two provinces. Al-Gadi explained that the project consists of two parts, the first includes establishing a double circular line with a 380 kilovolts power from Al-Fadhli Central Station near Jubail industrial area to a future transfer station near Shamlool village, approximately 218 km. The second part of the project includes establishing a double circular line with a 380 kilovolts power from the future transfer station to Sudair Central Station, approximately 196 km. This project will take 29 months to complete and it will reinforce the electricity connection capacity between the Eastern and Central Province to reach around 4000 megawatts.
