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$566m funding secured for Saudi-Egypt power project

Utility Pole, Cable, Power Lines Reuters/Stephane Mahe
Egypt turned to the IMF for assistance after Russia's war in Ukraine pushed up its bills for wheat and oil

Saudi Electricity Company has secured a $566.4 million export credit agency-supported Islamic financing facility for the Saudi-Egypt electricity interconnection project.

The facility is from Standard Chartered Bank and Sumitomo Mitsui Banking Corporation. Standard Chartered Bank said in a statement that the 14-year Islamic (Murabaha) financing will be guaranteed by the Swedish Export Credit Agency and funded by the Swedish Export Credit Corporation.  

The electricity interconnection project is the first large-scale, high-voltage direct current interconnection in the Middle East and North Africa to link electricity grids. 

The project will allow Saudi Arabia and Egypt to exchange up to 3,000mw of power. 

The connection is expected to be in place by 2026 and will support power flow in multiple directions between Badr in Egypt to El-Madinah El-Munawara via Tabuk in Saudi Arabia.

Standard Chartered Bank was also among other financial institutions to provide $3bn as part of the five-year syndicated loan.