Qatar utility inks $450m deal for desalination project

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

Qatar Electricity and Water Co has signed a $450 million financing deal with local banks to fund the construction of a desalination plant which, when completed, will produce 10 percent of the Gulf country's water, the company said on Thursday.

The plant, situated at Ras Abu Fontas to the south of Doha, is scheduled to start operations in June 2015 and will produce 36 million imperial gallons of water per day, according to a statement from the firm.

Qatar National Bank funded $180 million, with three Islamic banks - Barwa Bank, Masraf Al Rayan and Qatar Islamic Bank - providing the remaining $270 million on an equal basis through a sharia-compliant facility.

It was the first time that a strategic project in Qatar had been fully funded without any participation from foreign lenders, Khalid Jolo, business development manager at QEWC, said in the statement.

HSBC was financial adviser to the project, while Norton Rose Fulbright and Simmons & Simmons acted as legal advisers to QEWC and the banks respectively.

Related:

Market Performance

Qatar Electricity and Water Company
171.0
-14.0 -7.57 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Finance talk with RAKBANK

Finance talk with RAKBANK

StartUp sat down with RAKBANK’s head of personal banking, Ian...

Tips from the top: Hisham Al Gurg

Tips from the top: Hisham Al Gurg

High profile investor and entrepreneur Hisham Al Gurg discusses...

1
The hubsters' ecosystem

The hubsters' ecosystem

Tamara Pupic visits Impact Hub Dubai, the first local branch...

Most Discussed
  • 9
    UAE teens among the highest for obesity rates

    @MT3 I forgot to add that of course this is assuming that the UAE moves toward a single payer model, something that I think has never been considered ... more

    Thursday, 28 August 2014 8:36 PM - Telcoguy
  • 9
    Smoke-free Dubai - the big debate

    Surprisingly the only studies that show a negative financial impact of the smoking ban on the hospitality industry are sponsored by tobacco companies ... more

    Wednesday, 27 August 2014 4:19 PM - Telcoguy
  • 3
    Saudi Arabia said to shelve plan for shorter working week

    It is working fine in the other gulf countries. In Oman, it is working very well and people, including business owners, adapted. Prices did not significantly... more

    Thursday, 28 August 2014 6:23 PM - Tariq AD