KAHRAMAA and QEWC Sign 25-year Water Purchase Agreement

Doha, January 07 (QNA) - Qatar General Electricity and Water Corporation (KAHRAMAA) and Qatar Electricity and Water Co ( QEWC ) have inked a 25-year Water Purchase Agreement (WPA). President of KAHRAMAA Essa Al Kuwari signed and QEWC General Manager Fahad Al Mohannadi signed the agreement at Sheraton Doha during the Arab conference inauguration. The WPA is for an approximately 36 MIGD (Million Imperial Gallons per Day) water plant that is to be built by QEWC to meet the Water Grid requirements of 2015 onwards. QEWC also signed a turnkey Engineering, Procurement and Construction contract with a consortium of Mitsubishi Corporation and Toyo Thai Public Company Limited in this regard. The plant will be a state of art design two distillers based on well established MSFE technology of Hitachi Zosen. The project is a fast track project that will deliver first water by 10 June 2015. Under the build-own-operate 25-year Water Purchase Agreement QEWC will sell water to KAHRAMAA. The requirement of Potable Water in a fast emerging economy like the State of Qatar will always be on the rise. This project is in line with the continual and fast increasing demand of water demand in Qatar which is having one of the fastest growing economies in the world. The project cost is about 500 million USD and the project is e ntirely financed by Qatari banks (Qatar National Bank, Barwa bank, Al Rayyan bank, and Qatar Islamic Bank). This is a first of its kind of financing deal in Qatar for a power and water in Qatar. The typical financing would have been an international consortium of banks. Fahad Al Mohannadi also highlighted this fact and stated that this is a positive aspect that would drive more projects to be taken up in future in a similar structure. "QEWC is proud to be on the fore front of this exciting future of the Power and water industry in Qatar" stated Fahad Al Mohannadi. Khalid Jolo, Business Development Manager, stated "This project will be environmentally friendly, utilizing the latest technology and will produce water at a very competitive tariff". The project will be located in Ras Abu Fontas which is one of the key stations of power and water generation in Qatar. (QNA)