Qatar General Electricity and Water Corporation (KAHRAMAA) has selected K1 Energy, a consortium between Japanese company Mitsubishi and Tokyo Electric Power Company (Tepco) to build the 2.4GW power and 590,000m³/d in Umm Al Houl.
KAHRAMAA has also signed a 25-year power and water purchase agreement (PWPA) with K1 Energy for construction of electricity generating facility and desalination plant.
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K1 Energy is a joint venture (JV) formed by Mitsubishi (MC) and Tokyo Electric Power (TEPCO), in which the former has a majority share of 98.5% with the rest owned by Tepco.
The agreement follows an international tender issued by KAHRAMAA in May 2014.
KAHRAMAA will sign the final PWPA for the project with a special purpose company comprising of K1 Energy, Qatar Electricity and Water (QEWC), Qatar Petroleum (QP) and Qatar Foundation (QF).
QEWC will hold the majority stake in the new entity with a 60% interest with K1 owning a 30% interest and Qatar Petroleum and Qatar Foundation having 5% each.
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By GlobalDataThe new firm will construct, own and operate a power plant in the Arab nation, which is expected to offer up to 2.4GW of power for 25 years.
Additionally, a water desalination plant will also be built in the country, which is likely to have a daily capacity of 590,000m³.
Scheduled site for the constructions are located 20km towards the south of Doha.
The facilities are expected to start commercial operations in 2017.
The project has been planned to meet the increasing power and water demands in the country, which is experiencing a steady economic growth.
Image: The planned development in Qatar is expected to be operational in 2017. Photo: courtesy of Mitsubishi Corporation.
