One Team Korea Hits Jackpot with 5 Trillion Won Plant Project Contract in Qatar

'Qatar Facility E Desalination and Power Plant' Contract Awarded
Samsung C&T to Execute EPC... Policy and Commercial Financing Added

One Team Korea has secured a large-scale private power generation project worth 5 trillion won in Qatar.

Bird's-eye view of Qatar Facility E Desalination and Power Plant Project / Image courtesy of KIND

Korea Overseas Infrastructure & Urban Development Corporation (KIND) announced on the 26th that it has signed a contract for the "Qatar Facility E Desalination and Power Plant Project," for which the Qatar Water and Electricity Authority held an international competitive bidding.

This project involves constructing and operating for 25 years a combined cycle power plant producing up to 2,400 MW of electricity and a desalination plant producing an average of 500,000 tons of water per day in the Ras Abu Fontas area, about 18 km southeast of downtown Doha, the capital of Qatar. The total project cost amounts to 3.7 billion USD (approximately 5.2 trillion won). It is the largest overseas investment development project contracted by Korean companies this year.

KIND participated in the project as part of a consortium with Korea Southern Power and Japan's Sumitomo Corporation, and will hold equity in the project through direct investment. KIND stated that this project is significant as it involves comprehensive participation by domestic companies in the Middle East, a key market for desalination and power plants, not only in overseas construction design, procurement, and construction (EPC) but also in the financial sector.

The EPC contract will be carried out solely by Samsung C&T Corporation. The contract size exceeds 2.8 billion USD (approximately 3.9 trillion won). This was supported by active participation from domestic policy finance institutions (Export-Import Bank of Korea, Korea Development Bank) and large-scale loan support from Woori Bank, a private commercial bank.

Kim Bok-hwan, President of KIND, said, "The active support from the government, including President Yoon Suk-yeol's state visit to Qatar last October and the Ministry of Land, Infrastructure and Transport's joint public-private overseas construction order support team activities, played a significant role in securing this contract." He added, "This project is a high value-added investment development type with significant forward and backward ripple effects, demonstrating the global competitiveness of One Team Korea, encompassing K-construction and finance through organic public-private collaboration."

Lee Byung-soo, Vice President and Head of Energy Solutions Business Division at Samsung C&T Corporation, said, "Since this is a national infrastructure project in Qatar, our previous experience and the solid trust built through it played a major role in winning the project. We will successfully complete the project to ensure stable supply of electricity and desalinated water."

Samsung C&T has solidified its position in Qatar by carrying out the largest-scale solar power generation project and an LNG construction project worth 2.8 trillion won. In particular, as the Qatari government plans to continuously expand facility capacity to meet increasing power demand, expectations for additional orders in the future are high.