South Korean bank joins multi-billion dollar Qatar project
Upon completion in 2029, the project is expected to supply 16 percent of Qatar’s total electricity and 17 percent of the Gulf nation’s desalinated water.
South Korea’s Woori Bank has announced it would act as the financial lead of Qatar’s Ras Abu Fontas desalination and power plant project, which lies 18km southeast of Doha.
The $3.7bn project includes the construction of a combined cycle gas power plant with a capacity of 2.4 gigawatts and a desalination facility that can produce 500,000 tonnes of water daily.
The electricity and freshwater outputs will be sold to Qatar General Electricity and Water Corporation (Kahramaa) under a 25-year agreement.
South Korea’s Samsung C&T, the construction and trading unit of the Samsung Group, will be the sole contractor for engineering, procurement and construction (EPC) of the Ras Abu Fontas desalination and power plant project.
It is estimated that upon completion in 2029, the project is expected to supply 16 percent of Qatar’s total electricity and 17 percent of the Gulf nation’s desalinated water.
In October, Qatar’s government-owned hydroelectric power agency awarded the bid to a consortium, including Korea Overseas Infrastructure & Urban Development Corporation (KIND); Korea Southern Power Company; Shikoku Electric Power Co; and Samsung C&T. Japan’s Sumitomo Corporation will have the largest stake in the Ras Abu Fontas project.
“The Qatar project is a high-value-added overseas investment-development project with significant economic ripple effects,” said KIND chief executive Kim Bok-hwan.
“It exemplifies how the collaborative One Team Korea approach, supported by the government and cooperation between the public and private sectors, can enhance Korea’s global competitiveness in both construction and finance,” he explained.
Sumitomo will provide $580m dollars, utilising its branches in Hong Kong, Bahrain, and Dubai to move the project forward.
Woori Bank has spearheaded the financial structure design and loan arrangement in collaboration with KIND, which specialises in overseas infrastructure investment-development projects.
Other financial partners include the Export-Import Bank of Korea and Korea Development Bank.
The Ras Abu Fontas project is the largest overseas investment-development project involving Korean companies in 2024.
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