In line with Saudi Vision 2030, The Public Investment Fund (PIF) has informed Saudi Electricity Company (SEC) of its intention to partner with SoftBank Vision Fund (SBVF) to create the New Solar Energy Plan 2030 (Plan). As part of this Plan, PIF and SBVF have signed a non-binding memorandum of understanding (MOU) on Monday 23 October 2017 which states only that:
1. PIF and SBVF shall, through SEC, develop 3GW solar generation capacity in the Kingdom in 2018;
2. The Government of Saudi Arabia will continue to be the controlling shareholder of SEC, and provide it with the same level of support. On that basis, the parties involved will evaluate SBVF taking a significant equity stake in SEC; and
3. PIF and SBVF shall create solar energy and energy storage manufacturing facilities and associated employment in the Kingdom of Saudi Arabia.
All parties will undertake the necessary due diligence with a view to completing such diligence by 28 February 2018.
(a) That the Government of Saudi Arabia will continue to remain the controlling shareholder of SEC following any potential disposal to SBVF and continue to provide it with the same level of support.
(b) SEC will work with its regulators and all relevant stakeholders to assess the impact, if any, as a result of the actions arising out of implementation of the MOU.
(c) As the dominant provider of electricity Generation, Transmission and Distribution services in the Kingdom of Saudi Arabia, SEC shall continue to play a critical and strategic role in the Kingdom's economy.
(d) The MOU is non-binding and subject to due-diligence.
Further announcements will be made if any material developments take place with regard to any of the items set out in the MOU.