Samsung C&T bags $1.8bn EPC deal for Qatar IWPP
Korean firm to carry out construction work on 2,500MW Facility D south of Doha.
Samsung C&T has clinched a contract for major construction work on the largest Independent Water and Power Project (IWPP) in Qatar.
The Korean company has been awarded with the $1.8bn EPC deal for the 2,500MW power generation component of Facility D, which is being developed by Japanese companies Mitsubishi Corp and Tokyo Electric Power Company (Tepco).
Qatar General Electricity & Water Corporation (Kahramaa) ordered the combined cycle power plant and 130 million imperial gallons per day (590,000 m3/d) desalination plant in May.
Kahramaa will purchase the power and water offtake under a 25-year contract with K1 Energy, a consortium formed by the Japanese pair.
K1 will own a 30% stake in Umm Al Houl Power, a special purpose company (SPC) set up to own the IWPP, while Qatar Electricity and Water Company (QEWC) will hold 60% with Qatar Petroleum and Qatar Foundations each holding 5%.
The facility will be constructed 15km south of Doha and is due to be completed in June, 2018.
Samsung C&T said it will take on $1.8 bn worth of EPC works out of total EPC contract of $2.46 bn. Spanish firm Acciona Agua previously announced it would develop the desalination component of the project.
“Samsung C&T has an extensive global experience in power plant construction of more than 20 years. Based on the company’s emphasis on quality and safety, we look forward to working on the project together with our partners to boost water and power capacity in Qatar,” said Eui Seung Park, the Head of Plant Business Unit of Samsung C&T.
In 2011, Samsung C&T successfully delivered the Al Shuweihat S2 Independent Water and Power Project in UAE.
The company is currently working on various projects in the region including a 2,100MW combined-cycle power plant in Rabigh, Saudi Arabia and a 920MW power plant in Kirikkale, Turkey.