Umm al-Houl Power (UHP), the special project vehicle for Qatar’s Facility D independent power and water project (IWPP), has signed a $2.5bn project financing deal.

The Japan Bank for International Cooperation (JBIC) extended a $1.3bn loan.

The other banks were Japan’s Bank of Tokyo Mitsubishi, Mizuho Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Trust & Banking Corporation, Sumitomo Mitsui Trust Bank, Norinchukin Bank, local Qatar National Bank and Germany’s KfW Ipex Bank.

MEED reported in November that the 25-year project finance deal would be priced at 150 basis points over London interbank lending rates (Libor).

Japan’s Mitsubishi Corporation and Tokyo Electric Power Company (Tepco) are the developers, with 20 per cent and 10 per cent stakes respectively in UHP.

The $3bn IWPP will have a capacity of 2,400MW and 590,000 cubic metres of desalinated water a day. It is being developed under a 25-year build-own-operate-transfer agreement.

JBIC frequently leads consortiums of Japanese banks to finance projects by Japanese developers as part of its overseas support mandate.

“Qatar also possesses one of the largest natural gas reserves in the world, making the country one of the most important LNG suppliers for Japan,” read a JBIC press release. “This loan will thereby contribute to further strengthening the multilayered economic relationship between the two nations.”

The first power from the scheme is expected in 2017, with the whole facility scheduled to come online in 2018. The IWPP will be located in the Qatar Economic Zone (QEZ) near Mesaieed.

South Korea’s Samsung C&T was awarded the $1.8bn contract for engineering, procurement and construction (EPC) on the power plant in July. Germany’s Siemens will supply the turbines and generators.

Japan’s Hitachi Zosen will carry out the desalination EPC works, with Spanish Acciona Agua as a subcontractor.