JBIC Signs MOU with Saudi Electricity Company
Strengthening Cooperation for Promoting Energy Transitions

• Region: The Middle East
• Infrastructures
• Environment

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on April 29 a Memorandum of Understanding (MOU) with Saudi Electricity Company (SEC; CEO: Khaled bin Hamad Al-Gnoon） to strengthen the partnership between the two organizations, taking the opportunity of the Islamic Development Bank (IsDB) Group Annual Meetings being held in Riyadh, Saudi Arabia.
     
2. SEC, the national vertically integrated power utility company in Saudi Arabia, addresses energy transitions through growing renewable energy and enhancing transmission infrastructure under its national transformation plan Saudi Vision 2030. The objective of the MOU is to develop solutions to SEC's future projects through investments by Japanese companies, the introduction of Japanese products and technologies, and/or the provision of financial support. The MOU also aims to expand areas of cooperation between Japan and Saudi Arabia by adding agendas, such as the growth of renewable energy, the enhancement of transmission infrastructure, including interconnection projects, and the development of smart cities. It is expected that business opportunities for Japanese companies in Saudi Arabia and third countries will be created through this partnership.
     
3. JBIC has been supporting SEC’s power projects in Saudi Arabia. In 2023, it provided a loan to SEC^*1 as part of GREEN operations^*2 to finance the funds for the interconnection project that links Saudi Arabia and Egypt. The project is intended to support the effective use of electricity and stabilize a system where the two countries exchange surplus power with each other, thereby contributing toward the growth of renewable energy, which both countries are promoting. JBIC and SEC have expanded the scope of cooperation to include interconnection projects in which a third country is involved.
     
4. In the Fourth Medium-term Business Plan, released in June 2021, JBIC aims to respond to energy transformation toward the realization of a decarbonized society. In addition, in its ESG Policy released in October 2021, JBIC is committed to pursuing ambitious and accelerated efforts to reduce its operational GHG emissions to net zero by 2030 and to achieve net zero emissions of its finance portfolio by 2050. The ESG Policy states that JBIC will contribute toward realizing global carbon neutrality by supporting and accelerating energy transition toward a decarbonized society in emerging and developing countries. The signing of the MOU is in line with the Medium-term Business Plan and ESG Policy of JBIC. In addition, in February 2022, JBIC signed another MOU with Public Investment Fund (PIF), the sovereign wealth fund that is wholly owned by the government of Saudi Arabia, to strengthen its partnership toward the realization of a decarbonized society^*3. Also in December 2023, JBIC signed another MOU with National Debt Management Center (NDMC)^*4. The purpose of the MOU is to enhance its relationship with NDMC, mainly with the aim of developing projects that contribute to the sustainable growth of Saudi Arabia and which involve Japanese companies. The MOU will contribute toward building multi-layered partnerships with public institutions in the country.
     
5. As Japan's policy-based financial institution, JBIC will continue to support the creation of business opportunities for Japanese companies through strengthened cooperation with important partners in the decarbonization sector.
     

Note

1. *1 
   See press release on February 22, 2023 .
2. *2 
   See announcement on July 2, 2018 .
3. *3 
   See press release on February 25, 2022 .
4. *4 
   See press release on December 26, 2023 .