Arab Republic of Egypt

Electrical Interconnection Between the Arab Republic of Egypt and the Kingdom of Saudi Arabia
Loan No: 603 Interest Rate: 3.0 %
Beneficiary: Egyptian Electricity Transmission Company Grace Period: 4 years
Project Cost: KD 177.7 million Maturity: 25 years
Amount of Loan: KD 45.0 million Repayment: 43 semi-annual installments
Date of Board Approval: - First Installment: 4 years following the first disbursement
Date of Loan Agreement: 2014-03-24 Date of Loan Effectiveness: 2014-02-10

Objectives:

The project aims at interconnecting the Egyptian electric power grid to the Saudi electric power grid using a 500 KV bipolar high voltage direct current interconnection, approximately 1,320 km long, and having a transmission capacity of 3,000 MW. This will lead to the interconnection of the two largest power grids in the Arab world with a total capacity exceeding 90 thousand MW, and will thus complete the interconnection between the Gulf Cooperation Council countries, the eight eastern Arab countries and the COMELEC countries.

Description:

The project, which is expected to be completed by the end of 2016, consists of constructing three 500 kV AC/DC conversion stations, aerial power lines and an undersea cable, the supply and installation of transformers, circuit breakers, measurement and control system and accessories, in addition to consultancy services and insurance. The project includes the following main components:

  1. Part of the Project within the Arab Republic of Egypt:
    1. Conversion Station: This includes the construction of a 3,000 MW, 500 kV bipolar AC/DC conversion station and its accessories. This also includes the construction of a transition station from the undersea cable to the aerial line, and its accessories, on the west shore of the Gulf of Aqaba.
    2. Aerial Power Lines: This includes the supply and installation of 500 kV bipolar DC aerial power lines, approximately 454 km long.
    3. Consultancy Services: This includes technical and consultancy services to assist in bids evaluation, contract negotiations, project supervision, participation in factory tests and supervision of project commissioning.
  1. Part of the Project within the Kingdom of Saudi Arabia:
    1. Conversion Station: This includes the construction of two 500 kV bipolar AC/DC conversion stations in East Medinah and Tabuk rated at 3,000 MW and 1,500 MW respectively, and their accessories. This also includes the construction of a station for the transition from the undersea cable to the aerial line, and its accessories, on the east shore of the Gulf of Aqaba.
    2. Aerial Power Lines: This includes the supply and installation of 500 kV bipolar DC aerial power lines, approximately 850 km long.
    3. Consultancy Services: This includes technical and consultancy services for this part of the project.
  1. Common Part of the Project in the Gulf of Aqaba:
    1. Undersea Cable: This includes the supply and installation of a 500 kV bipolar DC undersea cable, approximately 16 km long.
    2. Consultancy Services: This includes technical and consultancy services to assist in bids evaluation, contract negotiations, project supervision, participation in factory tests and supervision of project commissioning.

Financing:

The Arab Fund’s loan covers about 25% of the total project cost. European financial institutions contribute to the project with a loan equivalent to about KD 78.6 million (about 44%), the World Bank with a loan equivalent to about KD 34.2 million (about 19%), and the African Development Bank with a loan equivalent to about KD 12.2 million (about 7%). The beneficiary and the Egyptian Government will cover the remaining cost of the project and any additional cost that may arise.