Veolia, Abu Dhabi in wastewater deal

France's Veolia Water has signed a contract with the Abu Dhabi Water and Electricity Authority for the financing, design, construction and operation of two new wastewater treatment plants in the cities of Abu Dhabi and Al Ain.

Veolia Water, a subsidiary of Veolia Environnement (NYSE: VE), said the deal represents the biggest contract to-date for wastewater in the Middle East.

The Abu Dhabi plant will have a treatment capacity of 300,000 cubic meters per day, and the capacity of the plant in Al Ain, the emirate's second largest city, will be 130,000 cubic meters per day.

"As the needs for construction and infrastructure management increase, our aim is to help the Emirate of Abu Dhabi deal with the demand for wastewater services that this rapid growth is creating and which are essential to the sustainable development of the region," said Antoine Frérot, CEO of Veolia Water.

Veolia Water said Belgium's Besix group will carry out the civil engineering work on the projects and will be involved in one third of the operating services.

Construction is expected to take two and a half years, with Veolia Water operating the two wastewater treatment plants for 22 and a half years under the contract. Over the total 25-year period, Veolia Water said the project will contribute an estimated €364 million to its consolidated revenue.

According to Veolia Water, the level of treatment at the plants will allow the treated water to be reused for irrigation and watering green spaces.

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