Alba positions for the future
6 November 2024
Aluminium Bahrain (Alba) is a key player in the Bahraini economy. It began aluminium smelting in Bahrain more than 50 years ago, in 1971. Today, it is the largest company listed on the Bahrain Bourse by market cap, and its smelter in Asker is the world’s largest single-site aluminium smelter outside of China.
Its capacity has been growing since the opening of Line 6 in 2019. In 2023, it set a new record with 1,620,665 metric tonnes of production, up 1.3% from 2022.
Despite this success, it is far from business as usual for Alba this year, as it seeks to position itself as an industrial leader for the next 50 years. On 24 October, it informed the Bahrain Bourse, where it is listed, that it had appointed advisers to guide its due diligence process as it explores a potential business combination with Saudi Arabian Mining Company (Maaden).
“The logic is that Maaden will contribute its aluminium smelter assets, which are held within Maaden Aluminium Company, their alumina refinery and bauxite mining, in return for the issuance of shares in Alba,” said Alba chairman Khalid Al-Rumaihi while speaking on stage at the Gateway Gulf investor forum in Bahrain on 4 November.
The deal gives Alba vertical integration with Maaden’s bauxite mines and alumina refining and local access to the growing Saudi market. For Maaden, the deal gives it greater market reach using Alba’s established sales network.
The appointed advisers for the transaction are Moelis & Company as financial adviser, Hatch as technical adviser, McKinsey & Company as commercial adviser, PricewaterhouseCoopers as financial and tax adviser, Teneo as public relations adviser and Freshfields Bruckhaus Deringer as legal adviser.
The announcement to merge with Maaden followed the signing of an agreement in September by Saudi Basic Industries Corporation (Sabic) with Maaden to sell its 20.62% shareholding in Alba. Sabic expects to make sales proceeds of $965m-$1.06bn from the transaction, the completion of which is subject to regulatory approvals from relevant authorities in Saudi Arabia and Bahrain.
Change of plan
Alba has also changed its expansion plans. Instead of building a new Line 7, the aluminium producer plans to install new production facilities to replace the existing lines 1, 2 and 3.
“Now the intention is to demolish or stop the old lines, which are efficient from 1971. They are more than 50 years old, and we will replace them with new lines. Technically, this is not a new Line 7 project anymore because we are going to close lines 1, 2 and 3,” Alba CEO Ali Al-Baqali told MEED on the sidelines of Gateway Gulf.
The feasibility study for the project has already started and is being executed by US firm Bechtel. In 2022, Bechtel was appointed to conduct a feasibility study for Line 7. The firm was also the contractor for Line 6, which was commissioned in 2019.
Replacing lines 1, 2 and 3 will also allow Alba to increase capacity by installing more efficient, modern production plants while at the same time utilising existing assets at the Alba site in Bahrain.
“There is no need for power because we are going to utilise the same power,” Al-Baqali said. “We also do not need a new cast house.”
The plans to replace lines 1, 2 and 3 are separate from plans to enhance the capacity of lines 4 and 5. In September this year, the Alba board approved an estimated $30m project known as Lines 4-5 Creep-up, which, upon completion, is expected to increase Alba’s metals production capacity by 8,000 metric tonnes a year.
Further announcements
Alba also made two other announcements at Gateway Gulf. Alba and Japan’s Daiki Aluminium Industry Company will form a joint venture known as Alba-Daiki Sustainable Solutions (ADSS) to develop an aluminium dross processing facility in Bahrain. Alba will hold a 70% stake in the joint venture, while Daiki will own the remaining 30%. Both partners intend for the aluminium dross plant to commence operations by September 2026.
Alba and Bahrain-based Array Innovation also announced plans to accelerate Alba’s Industry 4.0 digitalisation journey with advanced artificial intelligence (AI), data analytics and automation solutions to optimise Alba’s operations and boost efficiencies.
Looking to the future, Bahrain is also seeking to move up the value chain and further develop its downstream aluminium production capabilities.
“Alba existed in a certain time. We were looking at electricity being cheaper in this part of the world. You could import alumina, apply electricity to the production process and export. We live in a new reality now where that electricity competitiveness is no longer present,” said Al-Rumaihi.
“What we have to do is think about what the industries will be like in the future. Every country in the Gulf is thinking about this. How can we introduce manufacturing in my economy? How can we widen the manufacturing base to move from being a consumer to a producer?”
Steps have been taken to achieve this. For example, Spain’s Aleastur, in partnership with the kingdom’s sovereign wealth fund Bahrain Mumtalakat Holding Company, has established an aluminium grain refining operation in Bahrain.
“We want to do more. We’re still very low on the value chain, and aluminium is a metal of the future,” said Al-Rumaihi.
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The solicitation of interest was issued by the ministry in mid-May with an original deadline of July.
It is unclear why the deadline has been extended, given the relative conciseness of the required documents. However, it is likely that the interested developers are still forming joint ventures in advance of submitting any EoI.
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A second oil processing train has been successfully put into production at Iraq’s West Qurna-2 oil field, according to a statement from China Petroleum Engineering & Construction Corporation (CPECC).
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Slow year for Maghreb power and water awards
7 July 2025
The Maghreb region has experienced a slow 2025 in terms of power and water project contract awards. Hopes for the year now rely on a strong second half if the sector is to match the performance of previous years.
As of early July, the total value of power project contract awards had reached $663m, according to regional projects tracker MEED Projects. This means that by the end of the year, the market is expected to fall significantly short of the peaks of $3.8bn in 2023 and $4.5bn in 2024.
Libya’s recovery was a major driver in 2023, accounting for $2.9bn of the total for that year, while Algeria contributed $430m and Morocco $210m. There are no recorded power contract awards for Algeria or Libya in 2025. Morocco and Tunisia contributed $353m and $310m, respectively.
The total value of contract awards for water projects has also declined significantly. For the first six months of 2025, the total reached $189m, which is tracking behind the $815m of water project contract awards recorded in 2024.
Both 2025 and 2024 are far behind the peak of $3.6bn registered in 2022, when Algeria alone accounted for $1.8bn of contract awards, followed closely by Morocco with $1.6bn.
For upcoming power and water contract awards, there are over $6bn of contracts in the bid or prequalification stage that are expected to be awarded within the next year.
In the water sector, Libya leads with $210m of soon-to-be-awarded contracts, followed closely by Tunisia at $260m. In the power sector, Morocco stands out with an impressive projected contract value of $5.3bn, while in Tunisia, there are $300m of upcoming power contract awards.
Xlinks disappointment
There have been some notable project developments in the power and water sectors across the Maghreb region over the past year. Most recently, at the end of June, the UK government withdrew its support for the Xlinks Morocco-UK power project.
The UK Department for Energy Security and Net Zero decided not to consider a contract for difference for this large-scale renewable energy initiative, which aimed to deliver 3,600MW of renewable energy from Morocco to the UK via a 4,000-kilometre high-voltage direct current cable system.
Sir Dave Lewis, chair of Xlinks, expressed disappointment, emphasising the project’s potential to significantly lower wholesale electricity prices in the UK.
Power progress
Other projects in Morocco are proceeding. The Ministry of Energy Transition & Sustainable Development has issued an invitation for expressions of interest for a major liquefied natural gas (LNG) infrastructure project at Nador West Med Port. This project includes an LNG import terminal, pipelines and a gas power station with a capacity of approximately 1,200MW. The project aims to enhance Morocco’s energy security and diversify its energy sources.
Additionally, Morocco’s National Office for Electricity and Drinking Water has invited firms to submit expressions of interest for contracts to build three gas-fired power stations with a total capacity of between 300MW and 450MW. These plants are expected to be commissioned by the summer of 2026, further contributing to the country’s energy infrastructure.
Water advancements
In the water sector, Algeria has inaugurated the El-Tarf desalination plant, which has a production capacity of 300,000 cubic metres a day. This facility is part of Algeria’s broader desalination programme, which aims to address water scarcity issues exacerbated by climate change. The Algerian government has allocated $3bn for the second phase of its desalination capacity expansion, with plans to build six new plants by 2030.
Morocco is also advancing its water infrastructure, with Veolia undertaking the detailed design for a new seawater reverse osmosis plant near Rabat. This facility is expected to treat up to 822,000 cubic metres of seawater daily and will cater to regions particularly affected by drought.
Policy focus
For policy, governments have been manoeuvring as they respond to the global challenge of climate change.
Morocco is progressing with its green hydrogen initiatives, which are closely linked to its water projects. The country has set ambitious targets to produce 52% of its energy from clean sources by 2030, with plans to develop large-scale green hydrogen projects. These projects will require significant water resources for electrolysis, further intertwining the power and water sectors.
Morocco also aims to increase its renewable capacity to 10,000MW by 2030, with a focus on solar, wind and hydroelectric power. Despite the recent Xlinks setback, the country is also exploring opportunities for exporting electricity to Europe, which could significantly enhance its energy market.
Algeria is pursuing other avenues in its quest to diversify its energy sources. In April, Algerian Minister of Energy, Mines and Renewable Energies, Mohamed Arkab, met with Wang Yongge, president of the China National Nuclear Corporation (CNNC), in Algiers. The two reviewed the ongoing cooperation between Algeria’s Commissariat for Atomic Energy (Comena) and CNNC, focusing on the peaceful use of nuclear energy, its medical applications and prospects for future development.
The Algerian government also plans to invest heavily in desalination projects to ensure a sustainable water supply, with desalinated water expected to account for 60% of drinking water by 2030.
Main image: Noor electric power station close to Ouarzazate, Morocco
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Iraq to retender Baghdad Metro PPP project contract
7 July 2025
Iraq intends to retender the contract to develop and operate the Baghdad Metro project, following the award of the estimated $2.5bn contract last year.
According to local media reports, Nasser Al-Assadi, adviser to Prime Minister Mohammed Sudani, stated that the previous developers had overestimated the project budget; therefore, the government will relaunch the entire process to implement the project.
Iraq’s National Investment Commission (NIC) awarded an estimated $2.5bn contract to develop and operate the Baghdad Metro project in July last year.
The contract was awarded to a consortium comprising France’s Systra, Societe Nationale des Chemins de fer Francais (SNCF) and Alstom; Spain’s Talgo and Sener; and Turkish contractors.
Germany’s Deutsche Bank was the project finance adviser.
The project will be developed as a public-private partnership (PPP) scheme using a design, build, operate, maintain, finance and transfer model.
Malaysian consulting firms ConsultantHSS and HSS Engineering were working on the project.
Project scope
The Baghdad Metro project is one of the largest infrastructure schemes in Iraq.
It will comprise seven main lines totalling 150 kilometres (km), 64 metro stations, four workshops and depots for trains, two metro train control and management centres and power generation stations.
The Green Line will extend 19km and run from the Al-Alawi terminal to the Doura terminal. The Red Line will be 27.7km long and will run from the Al-Alwai terminal to Maisaloun Square.
The Blue Line will run 22km from the Al-Shaab terminal to Al-Zafaraniya. The Purple Line will be 14.5km long and will connect Al-Tayaran Square to Al-Shaab.
The Yellow Line will extend 30km from Al-Baladiyat to Adan Square. The White Line will be 23km long and will run from Al-Kadhimiya to Al-Bayaa, while the Airport Line will run 12km from Baghdad airport to Al-Qadisiya.
Each line will comprise a total of eight stations.
The trains will include a gold-class cabin, a special cabin for women and children, and tourist cabins.
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