Global law firm Eversheds has advised Qatar General Electricity and Water Corporation (Kahramaa) on a 25-year water supply deal with Qatar Electricity & Water Company (QEWC) worth 500 million USD.
The 25-year Water Purchase Agreement between Kahramaa and QEWC was signed on 7 January and will enable Kahramaa to meet the Water Grid requirements of 2015. The 36 MIGD (million imperial gallons per day) plant will deliver first water in June 2015. Kahramaa will purchase the entire production. QEWC has also signed an EPC contract with a consortium of Mitsubishi Corporation and Toyo Thai Public Company for the construction of the plant.
The Eversheds team, led by partner Tim Armsby with assistance from Jennifer Westall, advised the client on the tender for its water capacity expansion project as well as the negotiation of the Water Purchase Agreement and related agreements for this plant.
Tim said:
“This is a significant project for Qatar and will ensure that Qatar continues to have surplus capacity pending the launch of the next Independent Water and Power Plant (IWPP), known as Facility D. The fast track project demonstrates the Qatari government’s commitment to updating utilities infrastructure across the country.”
Jennifer said:
“The parties are now working towards reaching financial close which is expected to be achieved in the next few months. Notably the project is being financed wholly by Qatari banks, believed to be the first time this has occurred in the power & water sector.”
Energoprojekt (lead and technical) and PWC (financial) advised Kahramaa alongside Eversheds. HSBC (financial) and Norton Rose (legal) advised QEWC.
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