Tenders for a $1.6 billion power grid that will enable Egypt and Saudi Arabia to share electricity will be launched early next year and construction will start in 2015, Egypt's electricity and energy ministry said on Thursday.

"Beginning 2014 the tenders for implementation will start to be launched... Actual implementation on the ground will not start before 2015," ministry spokesman Latham Khalil said, adding that construction would take two years to complete.

The project aims to allow power trading between two countries. Peak-time summer power consumption in Saudi Arabia falls between noon and mid afternoon, when air conditioners are used most intensively, while in Egypt the peak is after sunset.

The project will allow the countries to share up to 3,000 megawatts. Egypt will cover around 40 per cent of the cost while Saudi Arabia will cover the remaining 60 per cent.-Reuters