Kuwait - Veolia to build the desalination plant at the Az Zour North complex for 320 million euros

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Veolia Environnement has just won the contract to build the seawater desalination plant at the Az Zour North complex in Kuwait for 320 million euros.

Under this EPC (Engineering, Purchasing and Construction) contract won in partnership with Hyundai Heavy Industries, Veolia, through its subsidiary Sidem, will build a plant with a daily production capacity of 486,400 cubic meters of water. Hyundai will be responsible for building the 1,500-MW power station. All the electricity generated and the water produced will be purchased by the Kuwaiti government for 40 years. Work will begin before the end of 2013 and is scheduled for completion by the end of 2016. The Az Zour desalination plant will account for approximately 20% of Kuwait's installed capacity.

Sidem is one of the few companies in the world with complete command of thermal desalination technologies. The technology chosen for Az Zour North, Multi-effect distillation (MED), is able to adapt to fluctuations in water demand over time. Additionally, it is one of the lowest energy consuming and most robust desalination techniques available on the market, and so the most economically efficient as well. With a portfolio of more than 250 projects, representing more than 80% of the global market share, Veolia is the undeniable leader for this desalination process.

Veolia buids thermal desalination plant in Kuwait

The construction of this desalination plant is part of the Az Zour North electricity generation and water production project located 100 kilometers south of the Kuwaiti capital. Awarded a year ago to the consortium of GDF Suez Energy International (France), Sumitomo Corporation (Japan) and Abdullah Hamad Al-Sager and Brothers (Kuwait), this is the country's first public-private partnership for an independent water and power project (IWPP). This project is part of the long-term plan to develop Kuwait's installed electricity generation and water production capacity.

In 2010, Veolia had already been selected to build the Az Zour South water desalination plant, for which it opted for reverse osmosis membrane technology. With a daily capacity of 136,000 cubic meters of water, this plant is currently in the start-up phase.

"Veolia's high-tech solutions for water services, as for environmental services and energy, are what differentiates the company from the international competition in this region of the Middle East that requires innovative solutions. We are honored to be working with Kuwait on its infrastructure policy to underpin its development and serve its growing population."

Antoine Frérot

Chief Executive Officer of Veolia Environnement

Important Disclaimer

Veolia Environnement is a corporation listed on the NYSE and Euronext Paris. This press release contains "forward-looking statements" within the meaning of the provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the risks described in the documents Veolia Environnement has filed with the U.S. Securities and Exchange Commission. Veolia Environnement does not undertake, nor does it have, any obligation to provide updates or to revise any forward-looking statements. Investors and security holders may obtain a free copy of documents filed by Veolia Environnement with the U.S. Securities and Exchange Commission from Veolia Environnement.

News Source : Kuwait - Veolia to build the desalination plant at the Az Zour North complex for 320 million euros

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