Egypt's cabinet approves funding for $1.6 bn electricity link with Saudi Arabia

The Egyptian cabinet has approved funding for a $1.6 billion project to link the electricity grids of Egypt and Saudi Arabia.

The link will enable the two countries, which are separated by the Gulf of Aqaba, to share their electricity in peak hours, Mohamed El-Yamany, spokesperson of the Egyptian electricity ministry said.



About 3,000 megawatts will be shared between the two countries when the project is completed in 2017, he added.

"The peak electricity consumption hours in Egypt and Saudi Arabia are different, so both countries will benefit from the link," Al-Yamany said in a phone interview. "Egypt's electrical generation capacity is 22,000 megawatts, so having 3,000 megawatts readily at hand is a big deal."

Egypt has been suffering from electricity outages, especially during the summer months, due to shortages in natural gas and mazot, used for generation.

The project will be funded by the Arab Fund for Economic and Social Development, the Islamic Development Bank and the Kuwait Fund for Arab Economic Development, the state-run Egynews reported Thursday.