L&T’s Water Treatment Division To Build Desalination Plant In Saudi Arabia

Larsen & Toubro Ltd. and its joint venture partner Spain's Lantania have won a contract to build a desalination plant in Saudi Arabia, according to a press release issued on Thursday.

The engineering, procurement, and construction company said that its water and effluent treatment division along with its JV partner Lantania have signed a contract with Middle East developer ACWA Power to build the Ras Mohaisen Desalination plant in Saudi Arabia.

The plant will have a capacity of 3,00,000 cubic meters of water per day, which is equivalent to 300 million litres. It will serve as a drinking water source for Makkah Al-Mukarramah and Al-Baha regions and will cater to about 1 million people.

The project’s scope includes design, procurement, construction, testing and commissioning of a seawater reverse osmosis desalination plant, the company’s statement added.

The company said that this is the second desalination order that it has secured in Saudi Arabia, and strengthens its presence in the Middle East.

The Indian multinational conglomerate asserted that bagging the large order underscores its water and effluent treatment division’s focus to expand its regional footprint across all neighbouring and business-conducive geographies.

While the company did not state the size of the order, its large order classification ranges between Rs 2,500 crore and Rs 5,000 crore.

The contract entails building a plant that includes intake and outfall facilities, process units, pumping stations, 6,00,000 cubic meters of potable water storage facility, electrical special facility and associated works along with state-of-the-art automation and instrumentation systems. It also states that the project should include a solar PV plant as well.

Shares of Larsen & Toubro Ltd. closed 0.17% lower at Rs 3.188.40 apiece on the BSE, compared to a 0.27% decline in the benchmark Sensex.