Qatar signs $1.17bn deals to boost power network

Qatar will buy substations as part of network upgrade.

Qatar has signed contracts worth QR4.28bn ($1.17bn) as part of its bid to meet future demand for electricity in the Gulf state.

The agreements include the setting up of 18 new substations, the upgrade of 11 others, in addition to the construction of a 400kV substation to support GCC power interconnection project.

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Phase nine of the Qatar Electricity Transmission Network project also covers the installation of 220km of new cables and more than 85km new overhead lines, Qatar News Agency reported.

The projects come within Qatar General Electricity and Water Corporation's (Kahramaa) commitment to provide efficient and high quality services amid increasing urban and industrial demand.

The demand for electricity was up 14 percent in 2009 over 2008 while demands for water rose eight percent. The small Gulf Arab state faces a potential power shortage of around 300 to 350 megawatts (MW) from late 2012 without the new plant.

Substation contracts have been awarded to Siemens Consortium Germany, India, Qatar and Hyosung Corporation, Korea while the cables project deals have been won by Mitsubishi, Japan and Siemens Ltd, India.

The overhead line project was awarded to NCC, Saudi Arabia, while the telecom package was awarded to Areva, France.