Veolia to Build the Desalination Plant at the Az Zour North Complex for 320 Million Euros

  Veolia to Build the Desalination Plant at the Az Zour North Complex for 320
  Million Euros

                                    Kuwait

Business Wire

PARIS -- January 13, 2014

Regulatory News:

Veolia Environnement (Paris:VIE) has just won the contract to build the
seawater desalination plant at the Az Zour North complex in Kuwait for 320
million euros.

Under this 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. Work will begin before the
end of 2013 and 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. Additionally, it is one of the lowest energy consuming and
most robust desalination techniques available on the market, and so the most
economically efficient as well. With a portfolio of more than 250 projects,
representing more than 80% of the global market share, Veolia is the
undeniable leader for this desalination process.

The construction of this 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 had already been 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, this plant
is currently in the start-up phase.

“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”, says Antoine Frérot, Chairman and Chief Executive
Officer of Veolia Environnement. “We are honored to be working with Kuwait on
its infrastructure policy to underpin its development and serve its growing
population.”

                                    *****

Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is the worldwide
reference in environmental solutions. With 220,000 employees*, the company has
operations all around the world and provides tailored solutions to meet the
needs of municipal and industrial customers in three complementary segments:
water management, waste management and energy management. Veolia Environnement
recorded revenue of €29.4 billion* in 2012. www.veolia.com

(* ) Excluding Transdev employees and revenues currently under divestment

Important Disclaimer

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.

 Press release also available on our web site: http://www.finance.veolia.com

Contact:

Veolia Environnement
Analyst and institutional investor contacts:
Ronald Wasylec – Tel +33 1 71 75 12 23
or
Ariane de Lamaze – Tel +33 (0)1 71 75 06 00
or
US Investors contact Terri Anne Powers – Tel +1 312-552-2890
 
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