SEC announces SAR90bn of 2010 projects
State-backed power supplier adds to infrastructure spending in country
Saudi Electricity Company, the state-backed power supplier, executed SAR 90 billion worth of projects last year as the private a nd public sector aims to meet soaring domestic demand.
Ali Al-Barrak, CEO of SEC, announced the figure in a meetring withe the Prince Salman, governor of Riyadh.
Power demand in the country is set to rise by 8% year-on-year. Last year Saudi Arabia announced a plan to share a grid with Egypt in a mutual pledge to meet local needs. Last year the company said it plan to add 13,000 mega watts to the country’s national grid, to be implemented with a string of contracts.
The company signed a contract with GDF Suez and two other contractors for the construction of a 1,750 MW power plant, a project which will take two years and will be party financed by banks. Two days later, Hyundai Heavy Industries Company was awarded a SR6 billion contract from SEC subsidiary Dhuruma Electricity Company to build a power plant.
The news comes as the Kingdom revealed it is to build 6,600 kilometres of new roads at a value of SAR 11.3 billion this year as the country’s infrastructure spending boom increases.
The Kingdom will target more than 30,000 kilometres of single, double, and highway road projects with a review of plans for 2,100 kilometres of new roads. The overall investment sees a 5% increase in government funding for transportation and communication work, set to reach SAR 25.2 billion.
Project funding in Makkah will grow between 10 and 15%, driven by the increasing number of pilgrims to the Holy City. The City’s light railway – built by China Railway Construction Corporation - was opened last year.
The figures have come to light ahead of a conference next month focused on the country’s transport development targets jointly organized by the Saudi Arabian Ministry of Municipalities & Rural Affairs and the International Quality & Productivity Centre (IQPC). The Saudi Urban Transport Conference 2011, according to Dr. Ossama Albar, mayor of Makkah, “provides valuable indicators on the performance of various key projects across the Kingdom and how they fit into the country’s overall transport infrastructure”.