Opening tender in Egypt-Saudi Arabia electricity project postponed to April

Mohamed Farag
3 Min Read
Ibarahim AlShahat, chairman of Upper Egypt Electricity Production Company (UEEPC), said that the offers of the electricity transformers tender are presented by 6 companies. Public domain

The Egyptian Electricity Holding Company (EEHC) decided to postpone the opening of the financial and technical tender for the Egypt-Saudi Arabia electricity interconnection project to mid April.

Government sources said that the EEHC notified the companies of the new date, adding that the tender for the Medina-Tabuk substations will be posed by the Saudi side on 16 April instead of 16 March. The source said that the Badr-Nabq antenna lines will be posed by Egypt on 19 April.

The sources added that the delay is not due to strained political relations between Egypt and Saudi Arabia, but the desire of both parties to complete the project in the best way possible.

The sources stressed the government’s desire to implement the electrical connection projects with Arab countries, especially with Saudi Arabia, to utilise the surplus in energy now, which is up to 4,000MW and expected to reach 8,000MW following the commercial operation of the Siemens power plants.

The winning company will connect an antenna line at a length of 450km, starting from the Badr City power station and stretching to the Nabq City switch station, in addition to an antenna line with a length of 850km from the switch station east of the Medina power station, passing through the Tabuk station. Alstom, ABB, and Siemens have all applied for the tender, and their offers will be analysed in coordination with the Saudi side.

The company winning this contract will establish two 500kV AC/DC transformers stations in Badr City and another linking station to connect to the aero line in Nabq.

The Italian Prysmian Group won the tender for the Egyptian-Saudi electrical interconnection cables project after competing against Norway’s Nexans.

Prysmian will connect two switch stations in Egypt and Saudi Arabia in addition to a submarine cable of 500kV that is to cross the Gulf of Aqaba with a length of 16 km.

The operation of the electric interconnection project with Saudi Arabia will start a trial period in 2019 to exchange 3,000MW at peak time.

The project costs about $1.6bn, with the Egyptian side’s share amounting to $600m. The Arab Fund for Economic and Social Development, Islamic Development Bank, and the resources of EETC, will contribute to the project’s funding along with the Kuwait Fund for Arab Economic Development.

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