Veolia has won a major new contract to build the €320m seawater desalination plant at the Az Zour North complex in Kuwait.

Under the 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. The work 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. It is one of the lowest energy consuming and most robust desalination techniques available on the market. Veolia now occupies a market leading position - its portfolio of more than 250 projects represents more than 80% of the global market share.

The construction of the 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 was 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, the plant is currently in the start-up phase.

Chief Executive Officer of Veolia Environnement Antoine Frérot commented:

“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 honoured to be working with Kuwait on its infrastructure policy to underpin its development and serve its growing population.”