GCC power grid project contract value put at $3b

Saudi Water and Electricity Minister Abdullah Al Hussain has estimated the total value of contracts for the GCC power grid at $3 billion (11 billion Saudi riyals).

He said the GCC would sign agreements for 13 construction contracts this year to implement the first phase of the project.

The power grid will start operating by the end of 2008, he said, adding that four countries Saudi Arabia, Bahrain, Qatar and Kuwait will be linked in the first phase.

The UAE and Oman will be linked in the second phase and all six countries will be linked in the third phase.

Addressing a joint meeting of the GCC water and electricity ministers and the GCC power grid authority in Riyadh, Al Hussain said there was a proposal to set up a forum for organisers of the electricity sector, adding that the meeting had agreed on holding an annual forum.

"The meeting also discussed the issue of exporting electricity to non-GCC countries and approved technical cooperation among the various GCC organisations," he told reporters after the meeting.

The ministers also discussed prospects of linking the member countries with a water network, adding that a French company has been retained to conduct a feasibility study.

They have formed a team of experts from GCC desalination plants to identify priorities for research in desalination and to exchange information and research works.

Hussain said the GCC has approved 19 standards and specifications related to water, adding that they would circulate among the member states for implementation.

A working plan for the operation and maintenance of water installations is also ready.

"Our meeting discussed ways to conserve water and electricity," he said, adding that the Saudi delegation had described the Kingdom's successful efforts to conserve water.

He said the GCC power grid and water network would reduce the cost of production and ensure adequate supplies.

Mohammad Al Mazroui, assistant GCC secretary-general for economic affairs, said the meeting discussed implementation of the GCC power grid in detail including awarding of contracts to qualified companies.

He said French experts were visiting member states to collect information.

He also said there were plans to reach similar agreements with foreign companies as part of the water network project.