Japanese financing is being used for power and water project
- Facility D independent power & water project is expected to reach a financial close next week
- The project will be financed by six Japanese banks, led by the Japan Bank for International Cooperation, Qatar National Bank and German KfW
- Japanese developers Mitsubishi Corporation and Tokyo Electric Power Company (Tepco) plan to contribute 20 and 10 per cent of the equity respectively
Facility D independent power & water project (IWPP) in Qatar will reach a financial close in mid-November.
Six Japanese banks, led by the Japan Bank for International Cooperation will finance the project, as well as the Qatar National Bank and Germanys KfW Development Bank.
The 25-year project finance deal will have a very competitive interest rate of 1.5 per cent over London interbank lending rates (Libor).
Japans Mitsubishi Corporation and Tokyo Electric Power Company (Tepco) are the developers. They will own 20 and 10 per cent respectively of the project company, Umm al-Houl Power, through a holding company.
Facility D will have a capacity of 2,500MW and 123.5-136.5 million imperial gallons a day (MIGD) of desalinated water. The IWPP is expected to require an investment of about $3bn.
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.
Samsung C&T was awarded the $1.8bn contract for engineering, procurement and construction (EPC) on the power plant in July. Germanys Siemens will supply the turbines and generators.
Japans Hitachi Zosen will carry out the desalination EPC works, with Spanish Acciona Agua as a subcontractor.
About 70-90 million imperial gallons a day (MIGD) of the desalination capacity will be from multi-stage flash (MSF)/multi-effect distillation (MED) technology, with the remaining 40-60 MIGD coming from reverse osmosis (RO) technology, which has to date only been implemented on a small scale in the country.