MITSUBISHI AND TOKYO ELECTRIC POWER TO BUILD 2.4GW POWER AND DESALINATION PLANT IN QATAR
TOKYO - Mitsubishi Corp (MC) and Tokyo Electric Power Co (TEPCO) have announced that a 25-year power and water purchase agreement (PWPA) has been reached between Qatar General Electricity and Water Corp (KAHRAMAA) and K1 Energy, a joint venture established by MC and TEPCO, each holding an equity share of 98.5 percent and 1.5 percent, respectively. The agreement is the result of an international tender issued by the KAHRAMAA in May 2014.
The final PWPA will be concluded between KAHRAMAA and a special purpose company established through a partnership among K1 Energy, Qatar Electricity and Water Co (QEWC), Qatar Petroleum (QP) and Qatar Foundation (QF). K1 Energy will hold a 30 percent equity participation in the special purpose company, Qatar Electricity and Water will hold 60 percent, and Qatar Petroleum and Qatar Foundation will each hold 5 percent. The special purpose company will construct, own and operate a power generation plant (2.4 GW) and a water desalination plant (590,000 m3/day) in Qatar over 25 years. Located 20 km south of the capital Doha, operations at the site are scheduled to commence in 2017.
As the world's third largest producer and exporter of natural gas, Qatar's real economic growth averaged 12.8 percent per annum from 2007 to 2013, a rate it is expected to maintain. Due to this high economic growth, the demand for power generation and water desalination has been rapidly growing in recent years. This IWPP initiative is therefore considered a national project aimed at responding to the increasing demand.
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