JBIC Signs MOU with Saudi Electricity Company
Strengthening Cooperation for Promoting Energy Transition and Environmental and Social Sustainability

• Region: The Middle East
• Infrastructures
• Environment

1. The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on December 14 a memorandum of understanding (MOU) on strategic partnership in the power sector with Saudi Electricity Company (SEC), taking the opportunity presented by the Fifth Ministerial Meeting on "Saudi-Japan Vision 2030".
     
2. SEC is a vertically integrated electric utility that generates, transmits, and distributes electricity throughout Saudi Arabia. It is 81% indirectly owned by the Government of Saudi Arabia and through its close relationship with the Government is deeply involved with policy making for the power sector of the Kingdom. JBIC has been building a relationship with SEC by providing financial support^*1 for a power generation project.
     
3. The objective of this MOU is to develop solutions to SEC’s challenges in the power sector through investments by Japanese companies and/or introduction of Japanese products and technologies, and to promote energy transition and environmental and social sustainability, which is pursued by the Government of Saudi Arabia. It is expected that business opportunities for Japanese companies in Saudi Arabia and third countries will be created through this partnership.
     
4. Saudi Arabia, which provides Japan with a stable supply of oil as its largest supplier, is planning to reduce its dependence on oil sales and diversify its economy under its national development strategy, Saudi Vision 2030. Under this vision, the Kingdom is promoting projects that contribute to the growth of renewable energy, energy efficiency, etc. The MOU conforms with such industrial policies of the Government of Saudi Arabia.
     
5. As Japan’s policy-based financial institution, JBIC will continue to endeavor to create business opportunities and promote business for Japanese companies in countries such as Saudi Arabia, as well as support further deepening and development of economic ties between two countries, through cooperation with overseas state-owned power companies.
     

Note

1. *1 
   See Press Release on December 18, 2013.