QEWC signs agreement with Mitsubishi, Toyo Thai to build water plant

The Qatar Electricity and Water Company (QEWC) has signed an agreement with a consortium of Japan-based Mitsubishi and Thailand’s Toyo Thai Engineering Company, to construct a QAR1.83bn ($502m) water plant to improve the country’s water generation capacity.

The new water treatment plant, to be built at Ras Abu Fontas, Qatar, is expected to produce 36 million gallons a day.

The new plant is being built to meet growing water demands in the country, as water consumption has increased over 10% rate per year.

QEWC general manager Fahad al-Mohannadi said, "One of the prominent examples of Japanese success in the utilities sector is the 2,742MW Ras Girtas Power and Water Project, which is one of the largest of its kind in the entire Middle East and North African (Mena) region."

Local banks in Qatar such as QNB, Qatar Islamic Bank, Barwa Bank and Masraf Al Rayan have formed a consortium to provide complete fund for the plant.

The development of the project is expected to attract more local banks in future and financing plans in the utilities sector, according to al-Mohannadi.

The construction of the plant is expected to be completed in the first half of 2015.

QEWC also entered into a 25-year agreement with Qatar General Electricity and Water (Kahramaa), under which Kahramaa will buy the entire 36 million gallons a day of water generated from the new plant.

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Image: QEWC general manager Fahad al-Mohannadi (right) with Kahramaa president Issa Hilal al-Kuwari after signing the 25-year water purchase agreement. Photo: Courtesy of Jayan Orma.