Construction work is expected to begin next year on an independent power and water project in Qatar, in which a foreign developer will hold a 60 per cent stake, according to an official from the Ministry of Power and Water.

The remaining stake in the proposed project would be shared between Qatar General Petroleum Corporation (QGPC) and the majority privately-owned Qatar Electricity and Water Company (QEWC). Construction work is expected to be completed in 2003, he added.

Qatar's power demand - growing at an average eight per cent a year since 1990 Ñ is projected to reach 2,008 MW this year from 1,702 MW in 1999 and 3,280 MW in 2005.

Meanwhile, QEWC is to approach the regional capital market soon to borrow $130 million to fund the expansion of a power plant. "The package will be put into the market very soon and since the amount sought is only $130 million, we think it can be raised within the GCC," said a banker.

QEWC, 57 per cent owned by Qatari citizens and 43 per cent by the state, operates one of Qatar's three power plants, Ras Abu Fontas power generation and desalination plant B. The firm is in the process of expanding the plant's generating capacity by 300 MW to 910 MW and by 25 million gallons of water per day (gpd) to 58 gpd by summer 2001.

A QEWC official said the loan would cover around 70 per cent of costs, estimated at $200 million, and the remainder would be covered from internal resources.

Fahad Hamad Al Mohanadi, the director general of the QEWC said the Ras Abu Fontas B will be further expanded at a cost of QR2.2 billion ($604.39 million) in two phases, which are slated to be completed by the year 2003.