Kuwait awards $3.3 bln sewage plant contract to Chinese group

Reuters01-25

Kuwait awards $3.3 bln sewage plant contract to Chinese group

KUWAIT, Jan 25 (Reuters ) - Kuwait has approved a contract worth 999.85 million Kuwaiti dinars ($3.3 billion) with a Chinese state-owned company to build the country’s largest sewage treatment plant, the official gazette reported on Sunday.

The Central Agency for Public Tenders approved moving ahead with a “direct contract” between the Ministry of Public Works and China State Construction Engineering Corp 601668.SS to build the North Kabd sewage plant.

The project is part of a broader set of China-backed developments in Kuwait, including the $4 billion Mubarak Al-Kabeer port project signed in December with China Communications Construction Co 601800.SS.

The sewage facility will process up to 1 million cubic metres of waste water a day. The Chinese company will design, build, operate and maintain the plant over a 10-year period.

Oil-rich Kuwait struggles to reuse treated wastewater, much of which is discharged into the sea due to limited storage capacity and infrastructure problems. Quality constraints confine reuse to irrigation only.

($1 = 0.3052 Kuwaiti dinars)

(Reporting By Ahmed Hagagy; Editing by David Holmes)

((<ahmed.hagagy@thomsonreuters.com))

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