Saudi Electricity awards SR1.2 billion contracts
Agency highlights CEO comment as power projects continue in Kingdom
Saudi Electricity Company, the state owned power supplier, awarded three contracts valued at a total of SR1.2 billion to link existing power stations, build a new one and expand another, according to a reported statement by CEO Ali al-Barrak.
The Saudi Press Agency announced the news yesterday, though did not name the companies that won the contracts.
Saudi Electricity has this year made advances to its plan to add 13,000 mega watts to the country’s national grid to meet rising demand with a string of contract awards.
On 15th June 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.
Last month it approved projects valued at SR14.7 billion, including the expansion of the Rabigh power plant, the construction of a power link between Hail and al-Jawf and installing power cables in Makkah.
Power demand in Saudi Arabia, the world’s largest oil supplier, is set to increase 8% a year as the population expands and the government invests to spur economic growth. The utility plans to invest SAR205 billion in capacity expansion by 2018.
The Riyadh-based company’s stock closed up 0,3% yesterday to SR13.85 per share. It has increased 30% since the start of June.