DOHA - Qatar Electricity & Water Company (QEWC) has announced financing for the Ras Girtas Power Company (RGPC) project is targetted to be completed in the next two weeks. The relevant documents were signed on August 4.
RGPC is a joint venture company and will develop the power and water plant to meet the requirements of the country through a Power Purchase Agreement (PPA) with Kahramaa. The project is to be built in phases with operations starting from 2010 onwards and the complete facility will become fully operational the following year.
The net capacity will be 2,730 MW of electricity and 63 million Imperial gallons per day (MIGD) of water. The $3.9bn project is the largest power and water plant in Qatar and one of the largest such installations in the Middle East
QEWC holds a 45 percent stake in RGPC with other shareholders being Qatar Petroleum (QP) (15 percent), and GDF Suez International, Mitsui, Chubu and Yonden, combining for the remaining 40 percent..
Fahad Al Mohannadi, QEWC General Manager, said his company's participation in the project is part of its strategic plans for expansion and contribution to the growing demand for electricity and water in the country.
Al Mohannadi also said the QEWC equity capacity in the overall power and water installed capacity in Qatar would be about 60 percent and 70 percent respectively, of the 9,000 MW and 340 MIGD targeted installed capacity, once the RGPC project is completed.
The debt portion of the $3.9bn project comes to around 85 percent and is being funded through Islamic and commercial banks, the Japan Bank for International Cooperation (JBIC) and export credit agencies.
QEWC has provided $247m (QR901.5m) in base equity for its share in the project.
Local banks involved in the financing include Qatar National Bank which is the onshore trustee bank, HSBC, the onshore account bank and Qatar Islamic Bank, which provided the Islamic tranche.
QP has led the project financing on behalf of RGPC.
© The Peninsula 2008
