DOHA - A 25-year Power Purchase Agreement (PPA) between Kahramaa and the Messaied Power Company Limited (MPCL) was executed today.
The PPA is for a 2007 power plant that is to be built by MPCL to meet the requirements of the state of Qatar and is expected to be built in phases from 2008 onwards and the complete facility will be operational by 2010.
MPCL also signed an engineering procurement and construction contract with Iberinco, a Spanish company, in relation to this project for approximately $1.7bn.
The plant will be a state of the art design with six GE 9fa turbines, two 6b gas turbines, and 3 steam turbines. The project is an extremely fast track project that will deliver first power by 15 July 2008 and will be completed by 2010.
Under the build-operate-own and transfer (boot) 25-year power purchase agreement MPCL will sell power to Kahramaa.
This project is to keep pace with the continual and fast increasing demand of power and water demand in Qatar which is having one of the fastest growing economies in the world.
MPCL top management stated that it is proud to contribute to and be a part of the exciting future of the power industry in Qatar.
MPCL is a joint venture company formed specially for this project with shareholding from Qatar Petroleum (QP 20 per cent), Qatar Electricity & Water Company (QEWC 40 per cent) and Marubeni Corporation of Japan 40 per cent.
QP is one of the leading oil companies in the gulf and Middle East. QEWC is considered as a forerunner among companies involved in the field of power generation and water desalination in the Gulf countries. Marubeni has been successfully developing power and water stations in the region and also internationally.
© The Peninsula 2007
