Riyadh, June 14: Saudi Arabia’s Cabinet has approved a SR51 billion ($13.6 billion) interest free loan to the Saudi Electricity Co. to help it cover its projected fiscal deficit and complete projects through 2012.
Information and Culture Minister Abdel-Aziz Khoga said Monday the 25-year loan is aimed at helping the state-run company meet deadlines to boost power generation capacity in the Kingdom.
The Kingdom of Saudi Arabia plans to invest about $80 billion in its power generation sector in the next decade to cope with domestic demand that is increasing at about eight percent yearly.
Saudi officials estimate that the Kingdom’s demand for electricity could hit about 70,000 megawatts by 2020 as it moves to diversify the economy from its traditional oil base.
Saudi Arabia plans to invest $88 billion over the next 10 years to boost power capacity as demand for electricity continues to grow 7-8 percent annually, the Kingdom’s water and electricity minister said last month.
—– Agencies