UHP’s Facility D Expansion Project In Qatar

Simmons & Simmons has advised Qatar-based Umm Al Houl Power Q.P.S.C. on the expansion of one of the largest and most eco-friendly power and desalination plants in the Middle East.

The current Facility D site provides 30 percent of Qatar’s total electricity needs and 40 percent of its fresh water needs. The deal to expand Facility D IWPP reached financial close on 28 November 2019 in Qatar.

Under the original Facility D project, UHP is contracted under a 25-year arrangement to supply Qatar State owned power and water distributor KHARAMAA, with 2520 MW and 136.5 MIGD of desalinated water. The Facility D plant is unique because it is the first project to use large scale reverse osmosis (RO) technology in Qatar.

The project financing of the RO expansion amounts to approximately USD 389 million, co-financed with JBIC and international lenders MUFG Bank, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, the Norinchukin Bank, and KfW IPEX-Bank.

The expansion will increase water desalination capacity by 61.45 MIGD, increasing capacity to 197.95 MIGD of water by 2021. The use of RO technology will improve production efficiency and reduce the use of gas in production systems. The main construction contractor is Samsung C&T of Korea, with Acciona of Spain as the main sub-contractor, both of whom participated in the original Facility D Project.

UHP is a Qatar based electric power and potable water developer, established by Mitsubishi Corporation (MC) and JERA Corporation (JERA), together with Qatar Petroleum, Qatar Electricity & Water Company Q.S.C., and Qatar Foundation for Education, Science and Community Development.

The Simmons team was led by projects partners Adam Cooper (Picture) and Adrian Nizzola and assisted by associates Simon Kenolty, Elias Matni, Louise Mackenzie, Maha Lawson, and Jonathan Simons.

Involved fees earner: Adam Cooper – Simmons & Simmons; Simon Kenolty – Simmons & Simmons; Maha Lawson – Simmons & Simmons; Louise Mackenzie – Simmons & Simmons; Elias Matni – Simmons & Simmons; Adrian Nizzola – Simmons & Simmons; Jonathan Simons – Simmons & Simmons;

Law Firms: Simmons & Simmons;

Clients: UHP Umm Al Houl Power ;