Samsung C&T and partners secure 5.2 trillion won Qatar plant order

‘One Team Korea,’ comprised of Samsung C&T, Korea Overseas Infrastructure and Urban Development Corporation (KIND), and Korea Southern Power Co., Ltd., has secured a large-scale plant project worth over 5 trillion won in Qatar. This marks the largest overseas investment and development project this year involving a domestic company as an equity investor.

According to Samsung C&T and KIND on Tuesday, the Japan Sumitomo Corporation Consortium, which includes KIND and Korea Southern Power Co., signed a contract for the Facility E project with the Qatar Electricity and Water Authority on Monday (local time). The project entails constructing and operating a desalination and combined-cycle power plant, producing 500,000 tons of desalinated water daily and generating 2,400 MW of electricity, about 17% of Qatar’s total freshwater and 16% of its electricity.

The project costs $3.7 billion, with Samsung C&T solely managing engineering, procurement, and construction (EPC) work valued at $2.84 billion.

Upon completion in 2029, the consortium will operate the facility for 25 years, selling the freshwater and electricity to Qatar Electricity and Water Authority. Profits will be distributed according to shareholding ratios, with Japan’s Sumitomo Corporation holding the largest stake.

Domestic financial institutions, including the Export-Import Bank of Korea, KDB Industrial Bank, and Woori Bank, supported the project by providing loans for domestic companies’ equity investments.


Ho-Kyeong Kim kimhk@donga.com