Oct. 16. 2006
Marubeni Corporation (“Marubeni” hereafter), through an international bid, was awarded by Qatar General Electricity and Water Corporation (“Kahramaa” hereafter) for 2,000MW (two million kilowatt) power plant in the Mesaieed Industrial City, approx. 50km south of Doha, Qatar and signed with them for commitment letter and associated documents on October 15, 2006. Marubeni is scheduled to form a joint venture company with Qatar Petroleum (“QP” hereafter) and Qatar Electricity & Water Company (“QEWC” hereafter) and sign power purchase agreement and other project documents in this December. The project is BOOT basis and the power purchase agreement is due to 25 years after the completion of the construction, which is scheduled to be April 2010. This is one of the largest power plants in the world, and the project cost is approximately 2.3 billion dollars. Marubeni seeks most of the required fund through project finance market.
Marubeni solely participated in the international bid for this project in April 2006 and subsequently in August 2006. After the technical and commercial evaluations, Marubeni reached an agreement with Kahramaa, QP and QEWC and signed the agreements. Marubeni believes that proposed competitive price, along with its abundant experiences as an IPP player and the reputation Marubeni has in the Qatari energy field were key factors to win this bid.
Marubeni puts overseas IPP business as its core business and sees the Gulf Region as one of the key IPP/IWPP markets. Marubeni won the three billion dollar IWPP project in Abu Dhabi in January 2005 and 1.1 billion dollar IWPP project in Kingdom of Saudi Arabia in August 2005. Topping up the 2,000MW to its existing portfolio, Marubeni’s power assets all over the world has become in excess of 10,000MW (10 million kilowatts).
Details of the project and contract are as follows.
Contract partner : Kahramaa
Plant location : Mesaieed Industrial City (Approx. 50km south of Doha City)
Content of contract :
Construct a 2000MW power plant, own and operate for 25 years after construction completion and transfer the facility after 25 years. The so-called BOOT method (Build, Own, Operate & Transfer)
Construction company under contract : IBERDROLA Ingenieria y Construccion, S.A.U.(Iberinco) *
Scheduled Completion Date : April 2010
Sponsors : Marubeni 40%, QP20%, QEWC40%
*Iberinco, a 100% subsidiary of Spain’s major power player called Iberdrola, has abundant experience in construction of power plants