An agreement was signed on Tuesday 1/3/2005 at KM head office, Daffna area between Qatar General Electricity & Water Corporation, "Kahramaa", and Qatar Electricity and Water Company for the purchase of electricity and water from Ras Lafan " B " project.
HE Vice Chairman, Mr. Issa  Shaheen  Al Ghanim represented Kahramaa, while Mr. Fahd Hamad Al Mohannadi and Mr. Tom Mackay signed on behalf of Qatar Power Co.
The agreement is the outcome of negotiations between the  two sides since the project was allotted to a conglomeration of three companies namely, Kahramaa (55%,) International Power (British) Company (40%,),  Japanese firm Chubu (5%) that had jointly set up Qatar Power  Company.
The signing ceremony was a milestone for Qatar Power Company and it helped the company gain the required funding from the domestic and international banking institutions. The project's estimated cost is 900mn, US Dollars.
This agreement came as result of successful bidding for contract to purchase additional quantities of water and electricity from Ras Lafan " B" project, which was signed by HE Abdullah Bin Hamad Al Attiyah, second deputy prime minister, Minister of Energy and Industry and chairman of Kahramaa with Qatar Electricity and Water Company on 30/9/2004.
Ras Lafan "B" project in Ras Lafan Industrial City is to produce 1025MW of electricity and 60mn gallons of desalinated water per day.
The production will be through the three gas turbines, two steam turbines and two filters, in addition to build the necessary infrastructure to link with the electricity and water network.
The project will be constructed by a group of companies comprising of Siemens (Germany), and Dosan (Korea) in accordance with the estimated schedule the project will start production of Water and Electricity in April 2006 and that the project will be completed in June 2008.
The project will be considered as key project in the field of water and power production after the completion of Ras Lafan " A" project in 2004 which will cater for Ras Lafan Industrial Area's water and power demands in the future.
It is worth noting that many projects will be signed soon including gas and sea water supplies and rental of plots of land in Ras Lafan Industrial Area with Qatar Petroleum, which has agreed upon its terms before.