2000 News Story

New power company formally established

Minister of Commerce Osama Faqih today issued decree number 2047 dated 30/12/1420 [April 5, 2000] pertaining to the establishment of the Saudi Electricity Company (SEC), a joint stock company with a capital of SR 33,758,632,650 [U.S. $ 9,002,302,040] divided into 675,172,653 shares of SR 50 each. The shareholders have already paid up the entire value of their shares. This capital represents the net value of the assets of the electricity companies that existed prior to the issuance of this decree, plus sums obtained by the fund for collection of electricity fees up to 30/12/1419 [April 16, 1999]. The new company will be based in Riyadh, and will generate, transport, purchase, sell, distribute, and invest in electric power throughout the Kingdom. In addition, it will participate in projects of power generation, transportation and distribution outside the Kingdom. It will also prepare training programs for its personnel, and promote research that will contribute to improvement of electricity services. The duration of the company is for 50 years effective from the date of issuance of this decree.