Qatar’s General Electricity and Water Corp (Kahramaa) has awarded the contract for construction of an independent power and water project in the industrial city of Ras Laffan to a Mitsui-Suez Energy International consortium.
The $3.9 billion Ras Laffan C plant will be the largest power and water plant in the country, providing 2730 MWe and over 286 000 m3/day of water. It is scheduled to come on line in 2010 and will help the country meet soaring demand for electricity and water.
The Suez-Mitsui consortium holds a 40 per cent stake in the project, with the remainder split between Qatar Petroleum and Qatar Electricity and Water Corp. The partners will sell power and water to Kahramaa under a 25-year power and water purchase agreement and are projecting revenues from the project to be $22.7 billion.
Demand for water in Qatar grew 16 per cent in 2007 and power demand grew in the same period by 17 per cent. Qatar holds the world’s third largest natural gas reserves and wants to triple electricity output from 3300 MW to about 10 000 MW by 2015.
Mitsui and Suez are expecting to reach financial close on the project by the end of May 2008. Around 80 per cent of the total cost will be financed by syndicated banks on a limited recourse loan basis.
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