SEC eyes US$1bn loan to develop power plant

powerksa DavidSeibold flickrThe project’s total costs are expected to reach US$1.24bn. (Image source: David Seibold/Flickr)Saudi Electricity Company (SEC) is looking to secure a loan of up to US$1bn to partly finance building a power plant, the state-owned utility has announced

SEC has last year signed a US$980mn deal to build a combined cycle power plant in Waad Al Shamal, Reuters reported.

The plant will have a total capacity of 1,390MW, of which 50MW will come from a solar component. The solar energy is expected to save the equivalent of four million barrels of oil equivalent over the course of the project.

Including the cost of connecting the plant to the electricity grid, the project’s total costs are expected to reach US$1.24bn.

Last month, SEC also announced a US$1.4bn loan agreement with seven international banks to be used as a reserve credit facility. The agreement with Bank of Tokyo-Mitsubishi UJF, Mizuho Bank, Sumitomo Mitsui Banking Corporation, HSBC, JP Morgan, Credit Agricole, and Deutsche Bank has a three-year lifespan.

This follows a US$666.1bn reserve credit facility agreement in December 2015 between the SEC and the National Commercial Bank and Samba Financial Group, bringing the value of the SEC’s total revolving facilities to US$2.07bn.

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