Abu Dhabi’s Mubadala Development Company and Paris-based Veolia Water have announced their intention to create a joint-venture company that will focus on the areas of water production and waste water collection and treatment in the Middle East and North Africa (Mena) region.

This activity could later lead to further joint ventures for other business sectors of the Veolia Environnement Group, of which Veolia Water is part, a joint statement said.
  The two companies will work together on municipal concessions and public private partnerships in the Mena region. The joint venture company will be owned 51 per cent by Veolia Water and 49 per cent by Mubadala.
“This partnership brings together the expertise of a world leader in environmental services with the experience of the leading investment and development company in the region. It marks the first step for a long-term collaboration in future projects for the two companies,” the statement said.
Speaking on behalf of Mubadala, chief operating officer, Waleed Al Mokarrab Al Muhairi, said: “As the region’s economy continues to expand and diversify, high-quality infrastructure will underpin this development. As part of this process, Mubadala is creating a diverse and sustainable range of businesses in the utilities sector by bringing new technologies, efficiencies and best practices to the region. Establishing partnerships with best-in-class international companies such as Veolia, which has over a century of experience in this field, will allow us to do just this.”
For Veolia Water, Antoine Frérot, chief executive officer, outlined the significance of the partnership, saying “this joint-venture is strategically important for Veolia Water as the Mena region is undergoing full economic, industrial and tourist growth which requires world-leading expertise in quality water services, solutions and technologies. Working with a leading investment fund will provide further capacity to expand and offer vital infrastructure solutions to local needs.”
Mubadala’s focus is on developing and managing an extensive and economically diverse portfolio of commercial initiatives.
The company manages a multi-billion-dollar portfolio of local, regional, and international investments, projects and initiatives. Through its investment and development projects, Mubadala is both a catalyst for, and a reflection of, the drive for economic diversification of the emirate of Abu Dhabi. Its impact is evident domestically and internationally in sectors such as energy, aerospace, real estate, healthcare, technology, infrastructure, and services.
Veolia Water, specialises in outsourcing services for municipal authorities, as well as industrial and service companies. It is also one of the world’s major designers of technological solutions and constructor of facilities needed in water and wastewater services. With 82,800 employees, worldwide, Veolia Water provides water services to 78 million people and wastewater services to 53 million. Its 2007 revenues amounted to 10.9 billion euros ($14.9 billion).
Veolia Environnement employs more than 300,000 employees and has operations around the world, providing tailored solutions to meet the needs of municipal and industrial customers in four complementary segments: water management, waste management, energy management and freight and passenger transportation. Veolia Environnement recorded revenues of 32.6 billion euros in 2007.
This is Veolia Water’s second involvement in Abu Dhabi this year. At the end of July it signed a contract with the Abu Dhabi Water and Electricity Authority (Adwea) for the financing, design, construction and operation of two new wastewater treatment plants in the cities of Abu Dhabi (capacity 300,000 cu m per day) and Al Ain (130,000 cu m per day). It represented the biggest contract to-date signed for wastewater in the Middle East.
Also associated in the project financing is the Belgian group Besix. Besix will carry out the civil engineering work part of the construction and be involved in one third of the operating services. After the initial construction period, which will take two and a half years, Veolia Water will operate the two wastewater treatment plants for 22 and a half years.
The plants will be equipped with Multiflo, the Veolia Water lamellar settling process.