Japanese JV wins $3.15bn Qatari IWPP
Mitsubishi and Tepco to develop 2.4GW and 590,000m3/d desal plant south of Doha.
Mitsubishi Corp and Tokyo Electric Power Company (Tepco) have been confirmed as the winners of the contract to develop Qatar’s largest power and water desalination project, Umm al Houl Power.
Qatar General Electricity and Water Corp (Kahramaa) has agreed to buy the offtake from the 2.4GW power and 590,000 m3/d water plant under a 25-year power and water purchase (PWPA) with K1 Energy, a consortium formed by the Japanese pair, Mitsubishi said in a statement.
K1 will own a 30% stake in the Independent Water and Power Project (IWPP) 20km south of Doha, while Qatar Electricity and Water Company (QEWC) will hold 60% with Qatar Petroleum and Qatar Foundations each holding 5%.
Tepco holds just 1.5% of the K1 consortium though negotiations are underway to raise the stake to 33.3% by the end of this year.
Kahramaa issued an international tender for the project in May 2014 and K1 was selected as the preferred bidder in early March. Operations at the plant are scheduled to start in 2017 and ramp up to full capacity in 2018.
In a statement to the Qatar Stock Exchange, QEWC said the total cost of the project is expected to $3.15bn with 85% of the cost financed by local and international commercial banks and export credit agencies and the rest paid by the shareholders equity.