Saudi Electricity Co. (SEC) said on Tuesday that the Public Investment Fund (PIF) plans to partner with Softbank Vision Fund (SBVF) to develop a new solar power plan in line with Vision 2030.
As part of this partnership, PIF on Oct. 23 signed a non-binding memorandum of understanding (MoU) with SBVF to develop three giga watts of solar power during 2018 through SEC, the electricity company said in a statement to Tadawul.
Under the MoU, the Saudi government will retain a controlling stake in SEC and will sustain the same level of support it grants the company. All parties will evaluate if SBVF would own a large stake in the Saudi utility provider.
Also, the Saudi sovereign fund and Softbank Vision Fund will establish solar power production and storage utilities, and create related jobs in the Kingdom.
All parties will conduct the relevant studies thoroughly, which are expected to be complete by February 28, 2018, the statement said.
SEC said that it will work with the regulatory authorities to assess the impact, if any, of implementing the MoU, it added.
In May, Vision Fund raised $93 billion of the originally planned $100 billion aimed at technology investment, and said back then that the closing date will be within six months. PIF signed a final agreement to be the largest investor in the fund with an investment of $45 billion over the next five years.
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