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Veolia Wins Lyon Water-Supply Deal, Adding to Contract in Kuwait

Veolia Environnement SA, Europe’s largest water company, won a contract that will generate sales of 660 million euros ($903 million) from customers in Lyon.

The eight-year deal to produce and supply drinking water to 54 municipalities in the French city and the surrounding area will come into effect in February next year, the Paris-based utility said today in a statement.

Greater Lyon has the second-largest drinking-water service in France, with 1.3 million people connected. The accord follows a contract win this week in Kuwait, where Veolia agreed to build a 123.6 million-dinar ($437 million) desalination plant at the Az Zour complex south of the capital.

The construction of the Kuwaiti plant is part of the Az Zour North Independent Water & Power Project on the Persian Gulf, which was awarded a year ago to a GDF Suez SA-led group. The complex will account for about 12 percent of the country’s installed power-generation capacity and about 23 percent of its desalination capacity upon completion.

The desalination plant will be able to produce 486,400 cubic meters (128.5 million gallons) a day for sale to Kuwait’s Ministry of Electricity and Water under a 40-year contract, the utility said on its website. South Korea’s Hyundai Heavy Industries Co. will build a 1,500-megawatt power plant at the complex, which is scheduled to be complete by the end of 2016.

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