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Sun 3 Jun 2007 02:20 PM

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Kahramaa signs 25-year PPA for new plant

A 25-year power purchase agreement (PPA) for a new Qatari power plant has been executed between the Qatar General Electricity and Water Corporation (Kahramaa) and the Mesaieed Power Company Limited (MPCL).

A 25-year power purchase agreement (PPA) for a new Qatari power plant has been executed between the Qatar General Electricity and Water Corporation (Kahramaa) and the Mesaieed Power Company Limited (MPCL).

The plant will be built in phases at Mesaieed Industrial City, approximately 50 km south of Doha. The additional 2 000 MW capacity it will ultimately bring is required to keep pace with rising power demand in the country.

The shareholders in MPCL, which is a joint venture company set up especially for the project, are the Qatar Electricity & Water Company (40%), the Marubeni Corporation (40%) and Qatar Petroleum (20%).

MPCL has signed a contract with Spanish company Iberinco for the engineering, procurement and construction of the plant, worth approximately US $1.7 billion. It has a build-operate-own and transfer (BOOT) agreement with Kahramaa, and will sell power to it for a period of 25 years.

Though the complete facility will be operational by April 2010, minister for energy and industry Abdullah bin Hamad al-Attiyah said the plant would be set up on a fast-track basis, with the first stage expected to be completed by July 2008, supplying 1 000 MW.

Japan's Marubeni Corporation is also bidding for an independent water and power project (IWPP) in Qatar's Ras Laffan Industrial City, 80 km north-east of the capital.