SEC board approves $3.9bn expenditure for projects
Projects include expanding the Rabigh power plant.
The Saudi Electricty Company (SEC), the state- controlled utility, said its board approved projects valued at 14.7 billion riyals (US$3.9 billion) as it seeks to meet rising demand for power in the Arab world’s largest economy, reports the Bloomberg news service.
Projects include expanding the Rabigh power plant, building a power link between Hail and al-Jawf, and installing power cables in Mecca, the Riyadh-based company said in a statement to the Saudi bourse website today. The SEC will borrow and use its own funds to finance the projects, according to the statement.
Power demand in Saudi Arabia, the world’s largest oil supplier, is set to increase eight percent a year as the population expands and the government invests to spur economic growth. The utility plans to invest 205 billion riyals in capacity expansion by 2018.
The kingdom has implemented tariffs for electricity from July 1 as it seeks more efficient energy use, the Saudi Press Agency reported in June. The rates will be applied to government, industrial and commercial clients and will generate 3.2 billion riyals in revenue a year for the power company.