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SEC raises $366mn loan for Jeddah power plant

The facility is part of a wider US $2bn finance package

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Japanese banks to help finance the construction of a 2,650 megawatt power plant in Jeddah
Japanese banks to help finance the construction of a 2,650 megawatt power plant in Jeddah

Saudi Electricity Co (SEC) has signed a US$366mn loan agreement with the Japan Bank for International Cooperation (JBIC) and two Japanese banks to help finance the construction of a 2,650 megawatt (MW) power plant in Jeddah, Reuters news agency reported.

The facility, funded by Bank of Tokyo-Mitsubishi UFJ and Mizuho Financial Group , is part of a wider $2 billion finance package for the Jeddah South project.

The remaining $1.634 billion, to be completed through a facility provided by South Korea, will be signed later this week, the statement said, without elaborating further.

The Japanese-backed financing has a 12-year lifespan after a 3-year grace period starting Dec. 18 this year, SEC said.

Hyundai Heavy Industries (HHI) is building the new oil-fired power plant, while Mitsubishi Heavy Industries will supply equipment for the plant, which is expected to be completed in 2016.

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