SEC signs $1bn power deal

Saudi Electricity Company (SEC) has signed a SR4-billion ($1.07 billion) contract to deliver electrical services for housing projects, the utility firm said.

The contract, signed between the firm and the Ministry of Water and Electricity, is for 29 projects being implemented by the Ministry of Housing.

SEC said the financial impact of the contract will begin to be felt in the fourth quarter of this year.

It will deliver electricity for three years to the housing projects, which have a cost of SR14 billion ($3.73 billion).

Undeveloped lands face fine

Saudi arabia may start imposing fine on undeveloped lands if a proposal tabled in the Shura Council becomes law, said a report.

The country’s housing minister Majed Al Hogail said the cabinet has submitted a proposal to the Shura Council to impose a fee of not more than SR100 ($26.67) per sq m on undeveloped lands, according to state news agency SPA.

He said the fees would “encourage landowners to develop their land ... and to provide lands of different and appropriate sizes for different segments of the society”.

Sabic mulls $30bn plant project

Saudi Basic Industries Corporation (Sabic), one of the world’s largest petrochemicals groups, expects to make a decision in the second quarter of 2016 on whether to go ahead with a $30-billion oil-to-chemicals plant project, its chief executive told Reuters.

Confirming the potential investment size of the project, Sabic’s acting vice-chairman and CEO Yousef Abdullah Al Benyan said the economics of the project were being assessed and there was a 50/50 chance it would proceed. If it went ahead, the crude to supply the plant planned for Yanbu on the west coast of Saudi Arabia would be procured at market rates.

Jeddah airport work on track

The construction work at the new King Abdulaziz International Airport in Jeddah would be completed by the end of next year and the facility will start full operations in mid-2017, said a report.

The testing of all equipment at the new airport would be completed as per schedule in 2016, the Arab News reported, quoting Sulaiman Al Hamdan, GACA’s director general.

Also GACA will be setting up a new building for national carrier Saudi Arabian Airlines (Saudia) at a cost of SR350 million ($93.2 million) in the support area at the airport.

The building will be ready by mid-2017, the report added.