October 02, 2004
Another multi-million dollar project to produce electricity and desalinated water has been lanuched in Qatar. Named Ras Laffan II; the cost of the new venture is a whopping $900m; more than that of the first Independent Water and Power Production (IWPP) project launched in Ras Laffan a few years ago.
Qatar General Electricity and Water Corporation (Kahramaa) yesterday formalised a major deal with one of the promoters of Ras Laffan II venture; the Qatar Electricity and Water Company to buy water and electrcity for its increasing supply needs.
A consortium led by QEWC and comprising International Power plc of UK and Chubu Electric of Japan is promoting the $900m Ras Laffan II project.
Ras Laffan II is slated to produce the utilties in phases with 600 mega watt (MW) of electricity and 15 million gallons a day of water to be made available by 2006.
By 2008; the capacity of the plants is expected to reach 1; 025 MW and 60 million gallons.
Second Deputy Prime Minister and Minister of Energy and Industry; H E Abdulla bin Hamad Al Attiyah; who is also chairman of Kahramaa's board; and Fahad Hamad Al Mohannadi; general manager of QEWC; signed the agreement.
Also present were Dr Ronald Spiers; executive chairman for Middle East and Africa; of International Power Plc; UK; and Akihisa Mizuno; general manager; International Projects; at Japan's Chubu Electric.
Speaking on the occasion; Abdullah bin Hamad said Ras Laffan II project was being carried out on a fast track basis. Financing for the mega venture is likely to be completed before the end of the year.
His Excellency said about the power and water purchase agreement signed between Kahramaa and QEWC (the supplies to be sourced from Ras Laffan II plants) that priority was given to local bidders; the two independent electricity and water producers; namely QEWC and Ras Laffan Power Company Ltd; in line with with the government's privatisation policy.
"Kahramaa has sought to maintain the best possible competition and transparency between the local two companies; to obtain competitive tariffs and optimised technical process that comply with environment safety"; said Abdullah bin Hamad.
His Excellency said Kahramaa will purchase its requirements for the additional electricity and water rather than establish its own production plants; adding that the tremendous development witnessed in the country had led to unprecedented demand for power and water. Ras Laffan II is expected meet the country's future demands; he said.
The General Manager noted that the project assumed particular importance in view of major industrial projects to be undertaken in the country in 2006; particularly the Asian Games.
Early last year the $700m Ras Laffan power and water project was initiated with a capacity of 750MW of power and 40 million gallons a day of water. The Ras Laffan Power Company; a joint venture in which QEWC has a 25 per cent stake and Qatar petroleum 10 per cent set up the project.
The project was seen as a major step towards privatisation of the electricity and water sector in Qatar.
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© Press Release 2005
