Saudi Electricity inks $420 mln loan for Shuqaiq Power Plant

State-owned utility Saudi Electricity Co. (SEC) has inked a SAR 1.5 billion ($420 million) syndicated loan agreement with Credit Agricole and Banco Santander to fund part of the capital costs of construction at Shuqaiq Steam Power Plant.

The 12.7 year agreement is guaranteed by Korea Trade Insurance Corporation (K-Sure).

In August 2013, SEC signed a contract with Hyundai Heavy Industries Co., Ltd. to set up the Shuqaiq Steam Power Plant. The 2,640MW plant will meet about five percent of Saudi Arabia’s Western region’s energy needs when it goes live in 2017. Overall, the plant project is valued at $3.3 billion.