The Qatar General Electricity and Water Corporation (Kahramaa) is set to establish a $500-million desalination plant that will produce 36 million gallons of water per day using reverse osmosis (RO) technology.

Kahramaa signed an agreement with Qatar Electricity and Water Company (QEWC) to set up the first-of-its-kind plant in the country, which will start operation in the third quarter of 2016, reported The Peninsula.

As per the agreement, Mitsubishi Company will be responsible for preparing the design, importing equipment and establishment of the plant.

Earlier the Qatari utility firm had asked independent companies in the country to come up with proposals to boost water production.

After studying the offers, it found the proposal presented by QEWC the most effective in terms of cost and technical means, and both sides agreed to set up the plant, said the report.

Kahramaa will soon sign a strategic pact with QEWC for purchase of potable water from the company for 25 years, it added.