The State of Qatar owns and operates several companies mostly in heavy industry such as Petroleum, and Chemical refeinement. The government has also joint ventures or is part owner of several other businesses in the country. There are no real plans for privatization of major industries such petroleum or telecommunications but is looking at privatizing other smaller governenment owned compnaies.. The government of Qatar recently announced that it sold off its power and water plant to a public firm.

                                    Gulf Times

      QATAR  went on Saterday 28-2-1998 a step ahead in its privatisation drive transferring the  operation and maintenance of state-owned power and desalination plant Ras Abu Fontas-B to    public firm Qatar Electricity and Water Company (QEWC) and agreeing to buy 80% of the   plant's production.

      "Today is the beginning for the private sector to play a major role in the state's future," the   Minister of Finance, Economy and Trade, HE Yousef Hussein Kamal, told reporters after signing a plant transfer and power and water sales and purchase agreement (SPA) on behalf of   the government with QEWC.

      The Minister of Electricity and Water, Acting Minister of Justice and QEWC Chairman, HE  Ahmed Mohamed Ali al-Subai, signed the agreement for the power and water utility.

      QEWC is jointly owned by the government and Qatari investors with the state owning 43%  stakes while the remaining 57% is held by Qatari nationals. The QR1bn company is listed on  the Doha Securities Market.

      The government will buy 80% of the power generated by QEWC under a take or pay deal.
      "We are obliged to buy 80% of what they produce under an offtake agreement," Hussein Kamal said.

      The state will buy power from QEWC at the rate of 8 dirham/kilo watt hour while water will  be priced at rates ranging from QR4.71 and QR6.61 per cubic metre "depending on the level of consumption," the Finance Minister said.

      Ras Abu Fontas has the capacity to generate 650MW of power daily and can produce 33mn
      gallons of water per day. Transmission and marketing of power and water from the QR4bn
      power plant will be done by QEWC and the agreement will take effect from the third quarter
      of 1998, al-Subai said.

      Asked whether there will be a hike in electricity and water charges Hussein Kamal said: "The   electricity and water charges will have nothing to do with tariff and there is no indication for such changes." He said the two were not related.

      Qatari citizens are exempt from power and water tariffs which are currently 40% subsidised by the government to expats. The deal is expected to bring in 10% annual profits for  shareholders in QEWC, a press statement said.

      Peak average power consumption in Qatar is estimated at 1,400 MW daily and total available  supply is pegged at over 1,800 MW per day. Highest daily consumption of electricity last year  was recorded in June at 1475 MW.

      Qatar's two other power and desalination plants - Ras Abu Fontas-A and Ras Abu Aboud -   will continue to be run by the Ministry of Electricity and Water, officials said. Meanwhile, a   World Bank privatisation package submitted to the government "is under review," Hussein  Kamal said. QEWC is expected to start active trading at DSM soon, officials said.(Gulf Times
Daily)
 

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