Award nears on ‘world’s largest desalination plant’
21 July 2025
The Iraqi government has approved the award of the contract to build what will be the world’s largest desalination plant, sending its decision to the project client to conclude negotiations with the selected contractor consortium.
The grouping of Power Construction Corporation of China (PowerChina) and the local Al-Rida Group has been in talks with the Basra Governorate for over a year regarding the contract, which the authorities say has an estimated capital expenditure (capex) of $3.9bn.
It is unclear when exactly the final contract will be signed, but in a public statement Prime Minister Mohammed Shia Al-Sudani said that the Council of Ministers had approved the project, and that the governorate is now “authorised to conclude the contract with the implementing company after completing all technical and administrative requirements”.
The 1 million cubic-metre-a-day reverse osmosis (RO) complex at Basra will be located in the Al-Faw Grand Port development area.
It includes a 240-kilometre transmission system that will transport potable water to nine off-take stations, which link to the municipalities.
MEED understands that a 300MW captive power plant will produce the required energy for the plant.
Austria’s ILF Consulting Engineers is the project consultant.
The massive complex is believed to be the world’s largest single-technology desalination plant ever built in one phase. Although there are larger desalination plants in Saudi Arabia and the UAE, they comprise a combination of hybrid technologies and were built in multiple stages.
The long-awaited Basra project has had a complex history, and a successful conclusion of the contract is by no means assured.
Various contracting groups have been associated with it since 2019, including the UK’s Biwater and South Korea’s Samsung C&T.
Responsibility for the project was transferred from the Ministry of Construction, Housing, Municipalities & Public Works to the Basra Governorate last year as a means of completing it.
There is a pressing need for additional desalination capacity in Iraq. More than 90% of its water needs are met by the Euphrates and Tigris rivers, and thus depend on their sources in Turkiye.
In periods of drought or low rainfall when its northern neighbour has to extract more water from the rivers than normal, Iraq suffers a severe shortage. Desalination plants on the Gulf coast will therefore alleviate any potential future water supply disturbances, particularly in the south, and are consequently considered a national strategic priority.
MEED’s June 2025 report on Iraq includes:
> COMMENT: Iraq maintains its pace, for now
> GOVERNMENT & ECONOMY: Iraq’s economy faces brewing storm
> OIL & GAS: Iraqi energy project value hits decade-high level
> PIPELINES: Revival of Syrian oil export route could benefit Iraq
> POWER: Iraq power sector turns a page
> CONSTRUCTION: Iraq pours billions into housing and infrastructure projects
> DATABANK: Iraq forecast dips on lower oil prices
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The request for qualifications (RFQs) was issued by the municipality’s Sewerage and Recycled Water Projects Department (SRPD).
The bid submission deadline is 26 February.
The first scheme under the package is TF-16-C1, which involves upgrading and rehabilitating the stormwater system east of the Dubai Canal.
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Modon tenders Ras El-Hekma construction contracts
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Abu Dhabi-based developer Modon Holding has tendered several contracts as part of the first phase of development at Ras El-Hekma, a planned new city on Egypt’s Mediterranean coast.
MEED understands that the tenders were issued in January.
These include:
DP3 assets: covering 146 residential villas, 590 three-bedroom townhouses, 356 four-bedroom townhouses, a mall and other associated works.
Bids due on 23 February.
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Modon has accelerated development works at Ras El-Hekma this year. In January, MEED reported that Modon Holding had awarded a E£15bn ($316m) contract for the construction of a project at Ras El-Hekma.
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In September, MEED reported that Modon Holding had tendered contracts for the infrastructure works for the first phase of the Ras El-Hekma project.
As part of the first phase, Modon plans to develop more than 50 million square metres (sq m), including hotels and a marina.
Ras El-Hekma is on a spur of land on Egypt’s northern Mediterranean coastline, about 240 kilometres west of Alexandria.
Last year, Abu Dhabi-based holding company ADQ appointed Modon Holding as the master developer for the Ras El-Hekma project.
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Commercial International Bank Egypt (CIB) has provided €58m in credit facilities to local firm Elsewedy Electric for the construction of a combined-cycle gas turbine (CCGT) power plant in Hungary.
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AD Ports Group will also invest AED141m ($38.4m) in the joint venture.
The signing ceremony was held at the Aqaba Special Economic Zone Authority headquarters in Aqaba on 5 February.
The agreement was signed by Hussein Safadi, CEO of ADC, and Ahmed Al-Mutawa, regional CEO of AD Ports Group.
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In 2025, the terminal handled over 5.3 million tonnes of cargo and nearly 85,000 car equivalent units of Ro-Ro imports.
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The Al-Madouneh customs centre covers about 1.3 million square metres (sq m) and was inaugurated in June last year.
The announcement followed AD Ports Group’s signing of a shareholders’ agreement in January 2024 between its digital arm, Maqta Gateway, and Jordan’s Aqaba Development Corporation regarding their existing joint-venture company, Maqta Ayla.
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AD Ports Group operates the Aqaba cruise terminal, and selected Dubai-based real estate developer Mag Group to lead the first phase of the Marsa Zayed mixed-use project.
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Chinese firm wins Ceer automotive supplier park deal
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Beijing-headquartered Metallurgical Construction Corporation (MCC) has won a contract to undertake the steel structure works on the Ceer automotive supplier park in King Abdullah Economic City (KAEC).
The supplier park is located next to Ceer’s electric vehicle (EV) production facility in KAEC.
The automotive supplier park will include production and ancillary facilities for various suppliers and provide the material supply infrastructure for Ceer’s EV plant.
The facilities include:
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Earlier this week, MEED exclusively reported that Ceer had awarded a contract to build the automotive supplier park to Jeddah-based construction firm Modern Building Leaders (MBL).
Netherlands-based engineering firm Arcadis is the project consultant, and Pac Project Advisors is the project management consultant.
Ceer retendered the project in September last year.
The latest contract award is another significant contract win for MCC in Saudi Arabia. In January, MEED reported that MCC had won a contract to undertake the steel structure works on Mohammed Bin Salman Stadium at the Qiddiya City project on the outskirts of Riyadh.
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