Japan Bank for International Cooperation has signed a loan agreement with Ras Abu Fontas Power Company for the Facility E Natural Gas-Fired Power Generation and Desalination Project in Qatar.

JBIC will provide project financing amounting to US$990 million ( JBIC portion ), in a co-financing with Mizuho Bank, SMBC, Sumitomo Mitsui Trust Bank, Woori Bank, Ahli Bank, Bank of China, DZ Bank, and KEB Hana Bank. Also participating are the Export-Import Bank of Korea, the Korea Development Bank, and KEXIM Global ( Singapore ) Ltd.

The total financing package is $2.971 billion.

The shareholders in the company are Sumitomo Corporation, Shikoku Electric Power Company, Korea Southern Power, Korea Overseas Infrastructure and Urban Development Corporation, Qatar Electricity and Water Company, and QatarEnergy Oil and Gas.

The project will build, own, and operate a 2,400 MW natural gas-fired combined cycle power plant and a 110 MIGD desalination plant in Ras Abu Fontas, located south of Doha, the capital of Qatar. The electricity and water produced by the plants will be sold to Qatar General Electricity and Water Corporation over a duration of 25 years.

According to JBIC, the Qatari government has set the goal of reducing greenhouse gas emissions by 42 million tons from 2019 levels by 2040. It also aims to achieve a gradual energy transition by increasing the share of renewable energy generation, while continuing to utilise highly efficient and cost-effective natural gas-fired power plants. Furthermore, in Qatar, as water demand is expected to increase in line with future economic growth, the government is promoting the use of reverse osmosis desalination plants, which offer superior energy efficiency.

The loan will support a project involving highly efficient natural gas-fired power generation and reverse osmosis desalination technologies, thereby aligning with the policy objectives of both the Japanese and Qatari governments.

It will contribute toward maintaining and strengthening the international competitiveness of Japanese industries by financially supporting those Japanese companies that participate in overseas infrastructure projects as well as operate and manage these facilities on a long-term basis. Qatar is one of the key exporters of LNG to Japan.