ArabianBusiness.com - Middle East Business News
Tuesday, 24 November 2009 06:32 UAE time

YOUR DIRECTORY /

| Share |

Saudi to spend $28bn on ailing electricity network

by This email address is being protected from spam bots, you need Javascript enabled to view it  on Wednesday, 01 July 2009
ELECTRICITY NEED: Power cuts in Saudi cities, like Jeddah are a problem for residents. (Getty Images)

Saudi Electricity Co is planning to spend $28bn in the next three years to meet the Kingdom’s rising power demands.

The Riyadh-based utility firm is also due to invest a further $70bn by 2018 to add an extra 25,000 megawatts to the struggling electricity network.

“We already have major projects under construction now,” Ali Al Barrak, chief executive officer, told Bloomberg. “This is to add about 13,000 megawatts of power and the required transmission distribution system.”


Story continues below
advertisement

Saudi’s population has tripled in the last 30 years and is expected to continue growing at a rate of 2 percent a year, according to figures by HSBC Holdings.

The country’s electricity power needs have also grown at a tremendous rate and power cuts are common in many cities, especially during the summer months.

Electricity consumption is estimated to quadruple to 140 gigawatts a year by 2032, according to figures by the King Fahd University of Petroleum and Minerals.

In June, Saudi Electricity raised more than SAR7bn ($1.87bn) from an Islamic bond sale and a SAR4.1bn loan from the Export-Import Bank of the US and Export Development Canada to add 2,900 megawatts of power generation.

“We are diversifying our financial resources,” Al Barrak said. “Financing is a bit of a challenge for the company, but we will have different ways to finance future projects.”

The firm is due to announce next week the closing of financing for the SAR10bn Rabigh steam powered plant, Al Barrak said.

| Share |


READERS' COMMENTS

Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.

Click here to post a comment


Add your Comment
All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *
(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments


Please click post only once - your comment will not be published immediately.


MORE FROM ARABIANBUSINESS.COM

SHARE PRICE CHECK

RELATED LINKS

  1. Saudi Electricity Company»

 EMAIL ALERTS

  1. Saudi Electricity Company

  2. Energy


CURRENCY CONVERTOR

Tell us your story

READER COMMENTS

  1. Dubai developers see negative press reports decline 07
    23 Nov ' 09 at 20:40
    Someone just said she'll never invest again in Dubai, that's because you don't have anything to invest anymore. Your impetuosity proved...   More  »
  2. Why I h8 junk txts 06
    23 Nov ' 09 at 22:23
    I have to disagree with the comment about junk mail in the UK. We registered with the Mail Preference Service (and Phone Preference...   More  »
  3. Fewer drivers killed on Dubai roads last year 04
    23 Nov ' 09 at 15:21
    Hi Mick, can I make a suggestion. If you travel with someone, then let him video this driver with your mobile. You can pass that onto...   More  »

Read all user comments >

Gitex 2009

MORE FROM ARABIANBUSINESS.COM