Saudi Arabian electricity investments set to cross $80 billion

• 14 years ago (2009-11-18)
• David Flin

Middle East 312

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Abdullah Al-Hussayen, Minister of Water and Electricity for , said: “The Kingdom currently produces 40,000MW of electricity. By 2015, in cooperation with the World Bank, the Kingdom will add 5200MW in new capacity, of which 3200MW will be operational by 2013.”

He said, while opening a workshop of electricity investment, that his ministry intends to encourage the private sector in participating in electricity projects through build, own, operate systems. The current investment programme includes three projects: the Rabigh plant, which is due to generate 1200MW by 2013; the 11 ^th plant, which is due to start operation in 2013 with a capacity of 2000MW; and the Qarya plant, due to generate 2000MW by 2015.

Al-Hussayen said that the new projects would be financed by local, regional and international banks. The sukuk issues in local capital markets to finance electricity projects have received a good response from investors. As a result of this, the Ministry decided to increase the sukuk issue to $1 billion. He stressed the ability of Saudi banks and other financial institutions in funding electricity projects in the Kingdom.