Saudi Arabia and Egypt are likely to tender the $1.5 billion power link project, which involves the construction of 1,250 km power cables linking Madinah with Cairo, early next year

Saudi Arabia and Egypt had signed an agreement in June to set up a common power grid with a capacity of 3,000 MW. The grid is to be funded proportionately by the two countries, with Egypt's share estimated at $610 million.

The project is aimed at linking the power grids of electricity-hungry countries Egypt and Saudi Arabia to help meet peak-time demand. It would take nearly three years for completion, said an Arab News report, citing a government official.

Saleh Al Awaji, electricity and water ministry undersecretary, said the two countries have started preparation of the tender documents and revision of technical specifications of the project.

"The tendering process for this project has reached its final stages. We expect this project to be tendered towards the end of this year or in early 2015," stated Saleh Al Awaji, electricity and water ministry undersecretary.

Awaji pointed out that the power peak period in Saudi Arabia was during 1 to 5 pm and in Egypt during 6 to 10 pm. "This means Saudi Arabia can import power supply from Egypt during the day and export it to that country at night," he added.