Tender submission for Egypt-Saudi electricity Interconnection project suspended

The Egyptian Electricity Transmission Company (EETC) has announced the suspension of tender submission for the planned Egypt-Saudi Arabia electricity interconnection project due to the ongoing COVID-19 pandemic.

This is the third postponement for the project so far.  Offers from interested companies had been received earlier but were canceled due to changes in the line course to implement the Neom project in Saudi Arabia.

Neom is a planned cross-border city in the Tabuk Province of northwestern Saudi Arabia intended to incorporate smart city technologies and also function as a tourist destination. The US$500B futuristic mega-city will be located near the Red Sea and the borders that Saudi Arabia shares with Egypt and Jordan.

Also Read: Egypt, Sudan joint electricity grid commence operation

The new proposal re-submission date

Technical and financial offers for the Egypt-Saudi electricity Interconnection project are expected in the next two months. The delay is set to last for up to 40 days.

The EETC had earlier invited seven companies to participate in the bidding process. The companies are El Sewedy Electric Co S.A.E, an Egyptian manufacturing company, China’s State Grid Corporation (State Grid), Kalpataru Power Transmission Limited (KPTL), Hyundai, Indias Larsen & Toubro (L&T) and KEC international. It is noteworthy that these companies will participate in the bidding process when the activity resumes.

The largest joint electricity grid in the Arab world

The Egypt-Saudi electricity Interconnection project will include the construction of overhead transmission lines between the two countries and an offshore power cable as well as power substations for transmitting approximately 3,000 megawatts (MW) between the two countries. Upon completion, the project will deliver the largest joint electricity grid in the Arab world.

The total value of the electrical interconnection is projected to be in the areas of US$1.6 billion.  Each country will cater for the work done on its land.  In that case, Saudi Arabia is likely to spend US$1B or its whereabouts on its side.

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