France's Veolia wins $402m Saudi water deals

Company hired to design, build and operate desalination plant to supply Sadara petchems plant

Marafiq, a water and electricity services operator, has contracted Veolia Water to design, build and operate the largest ultrafiltration and reverse osmosis desalination plant in Saudi Arabia.

With this contract, the French firm will generate $310m in revenue for the plant's design and construction, and $92m in revenue for its operation for 10 years, with an option to extend the contract for a further 20 years, a statement said.

With a capacity of 178,000 cubic metres per day, this new plant will supply the Sadara petrochemical complex built by Dow Chemical and Saudi Aramco in Jubail Industrial City II and is due to come on stream in June 2015.

Dow Chemical and Aramco will produce solvents and glues for the automotive and packaging industries at the Sadara site. The water supplied will be used in this immense facility's two cooling towers and as boiler feed water.

Veolia Water, through its subsidiary Sidem, has designed a plant combining two seawater treatment solutions - ultrafiltration and reverse osmosis - to meet strict water quality standards required by Marafiq.

Created in the 1970s by the authorities of the Kingdom of Saudi Arabia, Marafiq operates the country's water and electricity services and is responsible for overseeing the development of the Jubail and Yanbu industrial cities.

Jean-Michel Herrewyn, CEO of Veolia Water, said: "With this new reference, Veolia Water confirms its position as a leader in desalination and the reference partner for industrial entities."

The company previously built the desalination plant for the city of Al Khobar in the Eastern Province in 2010.

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