Qatar has launched the construction of a $718.4 million water and power plant, the country's first private sector power and water project.

Crown Prince Shaikh Jassim bin Hamad Al Thani laid the foundation stone for the Ras Laffan Power and Water project, the capacity of which will reach 750 MW and 40 million gallons per day of desalinated sea water in its first phase.

The plant will be commissioned in April 2003 and will become fully operational in May 2004. In the second phase, its capacity will rise to 1,500 MW and 80 million gallons per day.