Saudi Arabia: agreement between CESI and GCC to form joint venture in the electricity sector
Italian company, CESI, and Saudi Arabia company, GCC Electrical Testing Laboratory (in which the main Saudi utilities companies have stakes, including Saudi Electricity Company and Saudi Aramco), have signed a term sheet in the electricity sector. The agreement provides for the establishment of a three-year joint venture and will comprise a number of different areas of cooperation, including the creation of a testing, calibration and certification laboratory in Dammam that should become the main centre for the entire Gulf area. CESI Chief Executive Officer, Matteo Codazzi estimates the value of the investment with GCC to be approximately 120-170 million euro. The project forms part of the Saudi vision to further develop its entire electrical industry, and aims to ensure that the quality, design and testing of electromechanical components is in line with the highest industry standards. The agreement was signed in the presence of the Minister of Energy of Saudi Arabia, Al-Falih, who reaffirmed the intention of the country to diversify energy sources and invest in natural gas and renewable energy sectors.