The Japan Bank for International Cooperation (JBIC) will provide a “green” loan of $103 million to the Saudi Electricity Company (SEC) for an electricity interconnection project that will link the Kingdom and Egypt.

The bank is part of the $207 million loan agreement, co-financed with MUFG Bank, Bank of Yokohama and Nishi-Nippon City Bank.

JBIC will guarantee part of the portion co-financed by the private financial institutions, the bank said in a statement.

The loan is provided as part of JBIC’s green operations and is intended to provide SEC with the funds necessary for the construction in Saudi Arabia.

A consortium led by Hitachi Energy was awarded the contract to build the intercontinental link in October 2021.

The interconnection project comprises of a 3,000 MW high-voltage direct current (HVDC) system with 1,350 km of overhead power lines and 22 km of submarine cables to connect northwestern Saudi Arabia and Egypt.

Saudi-listed SEC, a vertically integrated electric utility that generates, transmits, and distributes electricity throughout Saudi Arabia, is improving infrastructure, including interconnection projects.