Saudi Electricity Co, a state-controlled monopoly on the generation, transmission and distribution of electric power in Saudi Arabia has signed a US$900 million loan agreement with the Export-Import Bank of Korea (KEXIM) and other international lenders for the financing of Shuqaiq Steam Power Plant.
Shuqaiq Steam Power Plant has a 13-year lifespan and is guaranteed by Export-Import Bank of Korea. Bank of Tokyo-Mitsubishi, Deutsche Bank and Santander are among the international lenders providing funding.
The Shuqaiq Steam Power Plant project located in Jazan province on the Red Sea coast is a 2,640 MW oil-fired steam power plant with an investment estimated at US$3.2 billion.
The plant project will utilize supercritical pressure technology to generate electricity and to operate at extremely high steam pressure and therefore reducing the amount of oil needed.
Hyundai Heavy Industries Co was appointed as the main contractor and it began its construction in 2013. The plant is scheduled to be operative by 2018.