Saudi Arabia to invest US$35.7 billion in water and electricity projects in 2014
The government of Saudi Arabia has planned to invest up to US$35.7bn in water and electricity projects in 2014, to cater to the Kingdom’s rising demand
According to Emirates 24/7, Saudi Arabia’s water and electricity minister Abdul Rahman Al Hussein said these investments comprise a US$26.6bn allocation towards power projects and the remaining US$9bn towards water projects.
The Ministry of Water and Electricity has also revealed that the government is pushing ahead with plans to restructure Saudi Electricity Company (SEC) into four firms overseeing electricity generation, transmission, distribution separately.
SEC currently has an autonomous budget. Power demand in Saudi Arabia is expected to increase by 9 per cent per annum, in the coming years.
Al Hussein said the projects will be funded through an interest-free government loan of US$18bn, along with borrowings from local banks and private investors.
According to ministry sources, Saudi Arabia needs to invest nearly US$133bn in the power sector over the next 10 years, of which around US$40bn is expected to stem from the private sector.