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Egypt’s Orascom Construction has won the engineering, procurement and construction (EPC) contract for a major wastewater treatment project in Saudi Arabia’s Eastern Province.

A consortium of Saudi utilities provider Marafiq, the regional business of France’s Veolia and Bahrain/Saudi Arabia-based Lamar Holding is developing the $500m (SR1.875bn) industrial wastewater treatment plant (IWWTP) in Jubail Industrial City 2.

Sources close to the project confirmed the appointment to MEED, adding that the project has now entered the construction phase.

Industry sources also said that financial close on the project is expected to be reached in the coming days.

In September, the developer consortium was awarded a contract, under a 30-year concession agreement, by Saudi Aramco Total Refining & Petrochemical Company (Satorp), a joint venture of Saudi Aramco and France’s TotalEnergies.

The planned facility will treat and recycle wastewater from Satorp’s under-construction Amiral chemical derivatives complex, also in Jubail.

Marafiq, formally Power & Water Utility Company for Jubail and Yanbu, will own a 40% stake in the dedicated project company. Veolia Middle East SAS will hold a 35% stake, and Lamar Holding’s Lamar Arabia for Energy will hold the other 25%.

The planned IWWTP, which will primarily serve the $11bn sprawling Amiral chemicals zone, will implement advanced water treatment and recovery technologies to process complex industrial effluents, including spent caustic streams. Treated water will be reintegrated into the industrial processes, supporting closed-loop reuse and energy efficiency.

The project follows a concession-style model, akin to a public-private partnership (PPP), where the developer consortium invests in, builds and operates the wastewater plant over a 30-year period, with returns linked to service delivery.

Marafiq has been involved in several similar projects across Saudi Arabia, including as the sole owner of the Jubail industrial water treatment plant (IWTP8), which treats complex industrial effluents for petrochemical and heavy industrial companies.

In 2020, Saudi Services for Electro Mechanic Works was awarded the $202m main contract for the fourth expansion phase of IWTP8. Construction works on the project are expected to be completed by the end of the quarter.

READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDF

Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes: