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Sun 7 Dec 2014 06:09 PM

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Financing deal in place for $247m Qatar reservoir project

Al Khalij Commercial Bank says it is providing funding for joint venture working on mega reservoirs project

Financing deal in place for $247m Qatar reservoir project
(Getty Images - for illustrative purposes only)

Al Khalij Commercial Bank said on Sunday it has arranged financing to a joint venture between Boom Construction Company and CAT International Qatar to develop pipelines for a mega reservoirs project around Doha.

The total value of the project is more than QR900 million ($247.1 million) and was recently awarded by Qatar General Electricity & Water Corporation (Kahramaa).

Qatar said earlier this year it will spend $884m on projects to more than double its water supply and boost reserves.

One of the driest countries in the world, Qatar’s water reserves of about 250m gallons would last only one month in the case of an emergency, according to the Gulf state’s water authority, Kahramaa.

Five projects worth a total QR3.22 billion will boost reserves by 126 percent to 561 million gallons and will be built in Duhail, Umm Qarn, Mesaimeer, South Doha and Muathier, as well as new reservoirs at existing stations.

They are expected to be ready by the end of 2017 and would be powered by electricity generated by solar panels.

al khaliji's financing comes in line with the bank's strategy to support the roll out of major infrastructure projects, the bank said in a statement.

Fahad Al Khalifa, Al Khaliji Group CEO said: "We are proud of our continued contribution to the enhancement of Qatar's infrastructure... We are keen to broaden our financing offerings and play an instrumental role in our country's progression."

Recently, the bank extended financing facilities for a contract awarded to a joint venture between Boom Construction Company and Six Construct Qatar for the construction and development of Al Rayyan Road.

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