A Kuwaiti reference for wastewater treatment projects

Kuwait

Hassan Choudhry, CFO of Umm Al Hayman for Wastewater Treatment Company (UAH), talks to The Energy Year about progress towards reaching full operational capacity and preparations for an upcoming listing. UAH is a special-purpose public company in charge of the construction and operation of the Umm Al Hayman Wastewater Treatment Plant.

What is the current operational status of the Umm Al Hayman Wastewater Treatment Plant?
The plant has been in operation since Q4 2023 and continues to produce the contractually specified TSE [treated sewage effluent] water, with the available wastewater reaching the plant. In parallel, the construction activities within the DBO [design-build-operate] work schemes continue to progress and are nearing completion.
Some of the newly constructed and upgraded assets, such as the new Sabah Al Ahmed Wastewater Pumping Station, the new Umm Al Hayman TSE Pumping Station and the upgraded Egailah Wastewater Pumping Station, have been in operation since 2024.
In recognition of its scale and impact, the Umm Al Hayman Wastewater Treatment Plant has garnered prestigious awards internationally and regionally, recognising its excellence in engineering, sustainability and PPP innovation.

What are some of the challenges that have emerged during the project, and how are you addressing them?
Like any other large-scale infrastructure project, the plant continues to face key challenges, including bureaucracy and various external factors. We are closely working with our strategic partner, the MPW [Ministry of Public Works], the buyer, to resolve them and demonstrate our commitment to Kuwait’s first PPP project under the PPP Law No. (116) of 2014.
One notable challenge is capacity building around PPP schemes among the various authorities in the country. Aligning public authorities, private investors, contractors, consultants and the buyer posed organisational and decision-making challenges.
In future, systemic reforms are needed to streamline governmental processes, enhance transparency and build trust among stakeholders. Stronger governance, capacity building and investor-friendly policies such as a one-stop shop government authority with combined technical, commercial and legal capabilities will be key to progress.

How are you preparing for the capacity expansion at the plant?
In anticipation of the potential expansion in capacity from 500,000 cubic metres to 700,000 cubic metres per day or more, as outlined in the tender documents, we proactively built flexibility into our planning, design and execution to accommodate future scaling efficiently and with minimal disruption. Our partner in Germany, WTE Wassertechnik, picked the design with scalability in mind.
Key infrastructure – including civil works, process units and pipeline corridors – is structured to support phased expansion without significant redesign or downtime. We have already constructed utility corridors, foundations and certain civil structures to accommodate the future capacity.
Our control and monitoring systems have been implemented with a scalable architecture, enabling seamless integration of new units and real-time performance tracking as capacity increases. We are in continuous communication with key stakeholders – including the MPW, local and international lenders, and operators – to align on the timelines and financing models required to activate the option to expand the plant.

What is the significance of this project for future PPPs in Kuwait?
The Umm Al Hayman Wastewater Treatment Plant sets a strong precedent for future wastewater projects in Kuwait across several dimensions. It redefines how wastewater infrastructure can be financed, delivered and operated as a PPP, and it exemplifies how ESG can be taken as a focal point in alignment with Kuwait Vision 2035.
By adhering to World Bank and IFC environmental and social guidelines, the project raises the benchmark for regulatory compliance and environmental stewardship. It aligns with the UN’s Sustainable Development Goals, setting a precedent for policy-aligned wastewater projects.
Wastewater is a valuable resource for any country, and treatment plants can be self-sustainable projects that not only process it into a usable resource but also produce useful byproducts. Our plant produces fertiliser for agricultural use, reinforcing Kuwait’s food security, and biogas to satisfy its energy needs. Such projects can also enhance its energy efficiencies by utilising the solar generation systems.
The project serves as a reference model for future wastewater projects such as the Sulaibiya Wastewater Treatment Plant and regional treatment plants, particularly on how to integrate private sector efficiency and innovation.
Umm Al Hayman helps relieve pressure from older plants and supports urban expansion in southern Kuwait. It promotes a decentralised model that future projects can adopt. With capacity designed for future demand, it offers a planning model for anticipatory infrastructure rather than reactive expansion.
Our project is not just a milestone but an inflexion point for wastewater infrastructure in Kuwait. It sets new standards in technical sophistication, environmental performance, private sector participation and long-term planning. Going forward, Kuwait’s wastewater projects are likely to be more sustainable, investment-attractive and scalable, with PPP schemes being the most efficient and effective way forward.

Can you comment on the timeline for the shared distribution of the 50% stake held in the project by KAPP [Kuwait Authority for Partnership Projects]?
The KAPP holds a 50% stake in UAH, which is for distribution to Kuwaiti nationals in the near future. We are in discussions with KAPP and the buyer to pave the way forward and apply the lessons learned from the previous PPP project listing and distribution. We expect that a decision will come soon.
The distribution will be managed by KAPP and is expected to be conducted at par value, offering Kuwaiti citizens a direct stake in the project. This initiative aligns with PPP Law No. (116) of 2014, which provides for citizen participation in major infrastructure projects, which I would say is the most transparent way of building the true essence of PPPs. The distribution will be executed through an IPO on Boursa Kuwait, which will ensure transparency and foster public engagement.
From our perspective, we are prepared. We have built a strong internal team with 70% Kuwaitisation to handle the process and are regularly engaged with Boursa Kuwait, potential advisors and others.

What are the key lessons learned so far from your project, and what message would you send to the industry about PPPs and sustainability?
PPP success stories such as Shamal Az Zour and Umm Al Hayman can help reshape Kuwait’s economy. These projects bring massive efficiencies and effectiveness to the service of our growing population and can attract more international investors to the country.
Looking forward, it will be key to establish strong institutional capabilities by creating specialised PPP units with technical, commercial and legal teams within key ministries and agencies to support project delivery. The complexity of approvals across multiple entities creates bottlenecks, and a streamlined, empowered one-stop shop within government that consolidates legal, financial, environmental and operational approvals, and has the authority to make binding decisions, would greatly improve investor confidence and project viability.
The industry must work hand in hand with governments, not just to build assets, but to build capacity. Sustainable outcomes depend as much on the systems behind the project as the infrastructure itself.

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