The three-strong consortium led by Qatar Electricity & Water Company (QEWC)received on 30 September a letter of award for the state's second independent water and power project (IWPP).
The three-strong consortium led by Qatar Electricity & Water Company (QEWC)received on 30 September a letter of award for the state's second independent water and power project (IWPP). The letter, which confirmed the QEWC-led group as the preferred bidder, paves the way for the key project agreements, including the 25-year power and water purchase agreement (PWPA), to be signed by the end of October. The IWPP, to be located at Ras Laffan, will have capacity of 1,025 MW and 60 million gallons a day. Qatar General Electricity & Water Corporation (Kahramaa) is handling the IWPP (MEED 16:7:04). QEWC has a 55 per cent stake in the developer consortium. Its partners are the UK's International Powerwith 40 per cent and Japan's Chubu Electric Power Companywith 5 per cent. The consortium has as its nominated engineering, procurement and construction (EPC) contractors Germany's Siemensfor the power island and South Korea's Doosan Heavy Industries & Construction Companyfor the desalination element. First power is due by April 2006. The consortium is aiming to achieve financial close by the end of the year on the estimated $900 million project. The bank group supporting the consortium is made up of HSBC, Bank of Tokyo-Mitsubishi, Calyon, Royal Bank of Scotland, Gulf International Bankand Qatar National Bank. The only other bidder for the IWPP was Ras Laffan Power Company (RLPC), in which the US' AES Corporationis the foreign shareholder. RLPC has recently commissioned the state's first IWPP, which has capacity of 750 MW and 40 million g/d. Kahramaa's advisers on the latest IWPP are Germany's Fichtner(technical) and Denton Wilde Sapte (legal).