Kuwait's Ministry of Public Works has signed a contract with Turkish construction company Kuzu to build a wastewater treatment plant and its related works for the South Al-Mutlaa city project, it said on Tuesday.

The contract, valued at 149.6 million dinars ($488.9 million), will use a hybrid system combining conventional and renewable energy sources, ministry spokesperson Ahmed Alsaleh told Reuters.

The signing of the contract coincides with a visit by Turkish President Tayyip Erdogan to Kuwait, during which he will hold talks with the Emir and sign agreements covering the defence industries, energy, investment, and trade.

The plant will serve residents of the Al-Mutlaa city development and produce around 400,000 cubic metres of tertiary-treated water per day for agricultural and other uses, the ministry said in a statement.

The Al-Mutlaa city project is located in northern Kuwait, about 40 km from Kuwait City, and includes more than 28,000 housing units.

Under the contract, the Turkish company will "build, operate, and maintain" the treatment plant.

($1 = 0.3060 Kuwaiti dinars)