Qatar lines up builder for next big desal plant

Details have emerged of the next major desalination project planned for the Ras Abu Fontas site. The behindclosed- doors negotiations being carried out to secure it will come as a disappointment for IWPP developers.

Qatari authorities are negotiating a major expansion to the country's desalination portfolio behind closed doors, as they decide the future of the latest project to crop up as the country looks to slake the thirst for water created by its economic expansion. The Qatar Electricity and Water Company (QEWC) - the public/private corporation that owns majority or 100% stakes in all the country's major desal plants - is looking to add 36MIGD (163,656m3/d) of capacity through the Ras Abu Fontas A3 project. Sources close to the project told GWI that MSF is the most likely option for the desalination technology. QEWC, which will take full ownership of the project, is in discussions with a nominated EPC contractor to supply the MSF units, and is looking to take on a technical advisor to assess the contractor's offer. Although the name of the contractor has not been confirmed, one likely candidate will be Hitachi Zosen, which won the contract in early 2013 to supply the MSF units for the A2 stage of the Ras Abu Fontas installation, under a linkup with main EPC contractor Mitsubishi. Procurement of these facilities was carried out in a similar way to the project currently being negotiated, with QEWC negotiating a water purchase contract directly with national offtaker Kahramaa and procuring an EPC contractor without open tendering. There are few other contractors working in the region with the ability and technology to carry out a project of this type. Doosan, SIDEM and Fisia have all bid for thermal desal work in Qatar in the past. The move towards direct negotiation for new desalination facilities will be a disappointment for developers looking to benefit from equity investment in Qatari desalination. Although the country has been one of the most prolific procurers of new desalination capacity in recent years, in part thanks to its IWPP programme, the growing strength and confidence of QEWC seems to have resulted in less need to court the private sector for funding and experience. Of the three major active desalination projects currently under tender, two offer the opportunity for equity investment ( see table ). However just 30% is being made available to the private sector, with public bodies led by QEWC set to take the majority of the equity. Competition is also intense. While the small number of thermal contractors has restricted the market somewhat, around ten companies are involved in the bidding stage for the country's first membrane-based IWP, the proposed seawater reverse osmosis plant at Ras Laffan. Global Water Intelligence - September 2014

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