Marubeni wins $2.3bn Qatar deal

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A consortium including Japanese trading house Marubeni has won a $2.3bn (£1.2bn) contract to build a thermal power plant in Qatar.

Marubeni and the Qatar Electricity and Water Company will each take a 40% stake in the scheme, with Qatar Petroleum holding the remaining 20%.

The project in the city of Mesaieed is due to be completed by April 2010.

It will be one of the world's biggest independent power producer projects (IPPP), selling power to utilities.

The plant will produce 2,000 megawatts - enough to power 600,000 homes.

Analysts say that Japan's leading investment banks are keen on overseas power generation contracts, as they promise a steady income stream.

"A surge in natural resources prices has prompted trading companies to boost investments in overseas power generation business," said Makoto Sakurai of Mitsubishi UFJ Securities.

Marubeni is currently involved in building a $250m sewage treatment plant in Qatar.