Under this new contract, won in partnership with Japanese conglomerate Hitachi and Egyptian engineering firm ArabCo, Veolia will build and operate a desalination plant with an ultrafiltration unit and reverse osmosis membranes. It will produce 200,000 cubic meters of drinking water a day. The technology used will reduce the salt content in the drinking water producedfor Basra's population of 2.3 million people. Additionally, in a country with a chronic shortage of electricity, this desalination plant will be completely autonomous as it will have its own electricity generators to guarantee continuous service.
Construction work on the plant is due to commence in the first quarter of 2014 and should be completed within 30 months. This contract will also create 300 jobs for the construction of the desalination units, provided by ArabCo, and 50 jobs for the facility's operation for five years.
"This new contract that we have won in Iraq is further proof of Veolia's ability to deliver concrete and reliable solutions to the scarcity of water resources and the challenges facing large cities, especially in countries where water is crucial to economic development," said Antoine Frérot, Chairman and CEO of Veolia Environnement."I am delighted that Veolia has been chosen by the Iraqi authorities to support the modernization of Basra, and that the company is able to provide a solution to the challenges confronted by this city, a leading center for the oil and gas industry."
As part of its reconstruction, Iraq has launched several national plans aimed at modernizing basic services, such as water, wastewater, waste treatment and energy, in order to support its economic growth. With the country's sole access to the sea, Basra is the subject of special attention from the Iraqi government, which is modernizing this port city to speed up its economic growth.
"This plant is part of a comprehensive plan to rehabilitate and extend the city's water treatment plants. The innovative technology and solutions we are providing Basra will enable it to improve its citizens' access to quality drinking water while protecting its resources," explains Jean-Michel Herrewyn, Director, Global Enterprises, Veolia Environnement.
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.