Qatari Project secures $990 million financing for desalination and power plant expansion

Ras Abu Fontas Power, a Qatari project company, has entered into a financing agreement with the Japan Bank for International Cooperation (JBIC) for approximately $990 million.

This financing is part of a broader $2.97 billion co-financing package, which includes contributions from private financial institutions, the Export-Import Bank of Korea, Korea Development Bank, and KEXIM Global Singapore, according to a JBIC statement released on Monday.

Ras Abu Fontas is a joint venture owned by shareholders Qatar Electricity & Water Co (55%), Sumitomo Corp (17%), Shikoku Electric Power (11%), Korea Overseas Infrastructure & Urban Development (6%), Korea Southern Power (6%), and QatarEnergy (5%).

As part of the project, Ras Abu Fontas Power will build, own, and operate a natural gas-fired combined-cycle power plant with an approximate capacity of 2,400 MW, in addition to a desalination facility with the ability to produce around 110 million imperial gallons per day (MIGD). The facilities will be located in Ras Abu Fontas, south of Doha.

Upon completion, the project will provide power and water to Qatar General Electricity and Water Corporation (Kahramaa) under a 25-year agreement.