Veolia gets $115M contract for UAE desal project

December 21, 2007

Paris-based Veolia Water said today it received a contract to run the operations and maintenance at a reverse osmosis plant in the United Arab Emirates.

Veolia Water is a subsidiary of Veolia Environnement (NYSE: VE).

The $115 million contract is for the F2 Independent Water and Power Project in Qidfa, Fujairah, a planned 136,500 cubed meters per day desalination plant.

"Veolia Water's capacity to tailor operation and maintenance solutions to meet client strategies and its ability to optimize human resources has enabled our company to win a second major contract with the same client within just four months of winning the design and build contract for the desalination plants in Fujairah," said Antoine Frérot, CEO of Veolia Water.

In August, Veolia said its Sidem unit would build the desalination facilities in Qidfa, a total of 590,000 cubed meters per day (see Veolia to build desal plant in Fujairah).

The F2 Independent Water and Power Project will also include a 2000 megawatt power plant.

The project is headed by a consortium set up by the Abu Dhabi Water and Electricity Authority in collaboration with International Power and Marubeni.

Veolia said today's deal covers a period of 12 years, starting in the summer of 2010, and is in addition to a pre-operational period lasting 3 years.


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